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1 II Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000

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2 III

Contents Federal Register Vol. 65, No. 56

Wednesday, March 22, 2000

Agricultural Marketing Service Corporation for National and Community Service RULES NOTICES Avocados grown in— Grants and cooperative agreements; availability, etc.: Florida, 15203–15205 AmeriCorps* VISTA programs— Nectarines and peaches grown in— Indian Tribal needs, 15316–15318 California, 15205–15214 Raisins produced from grapes grown in— Defense Department California, 15214–15216 NOTICES Agency information collection activities: Agriculture Department Proposed collection; comment request, 15319 See Agricultural Marketing Service Defense Production Act: See Animal and Plant Health Inspection Service Defense trade offsets; reducing or eliminating adverse See Commodity Credit Corporation effects; information request, 15318–15319 See Farm Service Agency See Forest Service Education Department See Rural Business-Cooperative Service NOTICES See Rural Utilities Service Agency information collection activities: NOTICES Proposed collection; comment request, 15319–15320 Meetings: Submission for OMB review; comment request, 15320– 21st Century Production Agriculture Commission, 15299 15321

Animal and Plant Health Inspection Service Employment and Training Administration RULES NOTICES Interstate transportation of animals and animal products Adjustment assistance: (quarantine): Energy Knits Co. et al., 15356–15357 Land tortoises, 15216–15218 Tony Lama Boot Co., 15357 NOTICES Agency information collection activities: Agency information collection activities: Proposed collection; comment request, 15357–15358 Proposed collection; comment request, 15299–15300 Federal-State unemployment compensation program: Children and Families Administration Extended benefit periods; changes, 15358 See Refugee Resettlement Office NAFTA transitional adjustment assistance: NOTICES Levi Strauss & Co., 15359–15360 Grants and cooperative agreements; availability, etc.: Nocona Boot Co., 15360 Head Start— Ritvik Holdings, Inc., 15360 National Head Start Fellows Program, 15336–15337 Todd Products Corp., 15358–15359 State Developmental Disabilities Councils and Protection Tony Lama Boot Co., 15360 and Advocacy Programs; Federal allotments, 15338– 15340 Energy Department See Federal Energy Regulatory Commission Coast Guard RULES RULES Nuclear activities; procedural rules; general statement of Drawbridge operations: enforcement policy, 15218–15221 Michigan, 15238–15240 NOTICES PROPOSED RULES Grants and cooperative agreements; availability, etc.: Ports and waterways safety: Tribal Colleges and Universities; Potential Applications Naval Station Newport, RI; safety zone, 15285–15286 of Renewable Energy Technologies; Feasibility Newport, RI; safety zone, 15283–15285 Studies, 15321 Commerce Department Environmental Protection Agency See Foreign-Trade Zones Board RULES See International Trade Administration Air quality implementation plans; approval and See National Oceanic and Atmospheric Administration promulgation; various States: California, 15240–15244 Committee for the Implementation of Textile Agreements Oregon, 15244–15248 NOTICES Pesticides; tolerances in food, animal feeds, and raw Cotton, wool, and man-made textiles: agricultural commodities: Belarus, 15315–15316 Cucurbitacins, 15248–15252 PROPOSED RULES Commodity Credit Corporation Air quality implementation plans; approval and NOTICES promulgation; various States: Agency information collection activities: California, 15286–15290 Proposed collection; comment request, 15300 Oregon, 15287

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NOTICES Wyoming Interstate Co., Ltd., 15325 Grants and cooperative agreements; availability, etc.: Regional Pesticide Environmental Stewardship Program, Federal Maritime Commission 15328–15330 RULES State and Tribal Assistance Grants, 15330 Ocean transportation intermediaries; individual Reports and guidance documents; availability, etc.: contemporaneously acting as qualifying individual for Food Quality Protection Act; science policy issues— ocean freight forwarder and non-vessel common Choosing Percentile of Acute Dietary Exposure as carrier, 15252–15254 Threshold of Regulatory Concern, 15330–15333 NOTICES Ocean transportation intermediary licenses: Farm Service Agency Global Total Logistics, LLC, 15334 NOTICES Agency information collection activities: Federal Railroad Administration Proposed collection; comment request, 15300–15301 PROPOSED RULES Railroad safety: Federal Aviation Administration Locomotive horns use at highway-rail grade crossings; RULES requirement for sounding Airworthiness directives: Hearings, 15298 Aerospatiale, 15226–15230 British Aerospace, 15230–15232 Federal Reserve System Cessna, 15232–15234 NOTICES PROPOSED RULES Banks and bank holding companies: Airworthiness directives: Formations, acquisitions, and mergers, 15334 Raytheon, 15278–15280 Food and Drug Administration Sikorsky, 15280–15282 Class E airspace, 15282–15283 NOTICES NOTICES Agency information collection activities: Exemption petitions; summary and disposition, 15404 Proposed collection; comment request, 15340–15343 Submission for OMB review; comment request, 15343– Federal Deposit Insurance Corporation 15345 NOTICES Meetings: Agency information collection activities: Arthritis Advisory Committee, 15344 Proposed collection; comment request, 15333–15334 Pharmaceutical Science Advisory Committee, 15344 Foreign Claims Settlement Commission Federal Election Commission NOTICES RULES Meetings; Sunshine Act, 15354 Reports by political committees: Campaign finance reports and statements; copies filed Foreign-Trade Zones Board with State officers; transmittal to Congress, 15221– NOTICES 15224 Applications, hearings, determinations, etc.: PROPOSED RULES Florida Presidential primary and general election candidates; Coastal Fuels Marketing, Inc.; fuel distribution public financing: terminal, 15304–15305 Eligibility requirements and funding expenditure and Washington repayment procedures; termination, 15273–15275 Tesoro Petroleum Corp.; oil refinery complex, 15305 Federal Energy Regulatory Commission Forest Service RULES NOTICES Natural gas companies (Natural Gas Act): Environmental statements; notice of intent: Landowner notification, expanded categorical exclusions, Allgeheny National Forest, PA, 15301 and other environmental filing requirements, 15234– Idaho Panhandle National Forests, ID, 15301–15303 15238 National Forest System lands: NOTICES Ski area permit actions; categorical exclusion, 15303 Electric rate and corporate regulation filings: Louisiana Generating LLC et al., 15325–15327 General Accounting Office North Hartland, LLC, et al., 15327–15328 RULES Environmental statements; notice of intent: Personnel Appeals Board; procedural rules, 15203 S.D. Warren Co., 15324 NOTICES Hydroelectric applications, 15323 Meetings: Applications, hearings, determinations, etc.: Federal Accounting Standards Advisory Board, 15334– Eastern Shore Natural Gas Co., 15321–15322 15335 Guardian Pipeline, L.L.C., 15322 Gulf States Transmission Corp., 15322 General Services Administration Koch Gateway Pipeline Co., 15322 NOTICES Northern Natural Gas Co., 15322–15323 Environmental statements; notice of intent: Portland General Electric Co. et al., 15323–15324 Washington, DC; Transportation Department; lease Statoil Energy Trading, Inc., et al., 15324 acquisition of new or renovated headquarters, 15335– Transcontinental Gas Pipe Line Corp., 15324–15325 15336

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Health and Human Services Department National Aeronautics and Space Administration See Children and Families Administration NOTICES See Food and Drug Administration Meetings: See National Institutes of Health Advisory Council task forces, 15370 See Refugee Resettlement Office See Substance Abuse and Mental Health Services National Archives and Records Administration Administration NOTICES RULES Agency records schedules; availability, 15370–15373 Health resources development: Organ procurement and transplantation network; National Credit Union Administration operation and performance goals; response to RULES comments, 15252 Credit unions: Organization and operations— Housing and Urban Development Department Overdraft policy, 15224–15226 RULES PROPOSED RULES Low income housing: Credit unions: Housing assistance payments (Section 8)— Regulatory flexibility and exemption program, 15275– Multifamily housing mortgage and housing assistance 15278 restructuring program (mark-to-market program), 15452–15498 National Highway Traffic Safety Administration RULES Anthropomorphic test devices: Immigration and Naturalization Service Occupant crash protection— NOTICES Hybrid III test dummies; 3-year-old child dummy; Agency information collection activities: design and performance specifications, 15254– Proposed collection; comment request, 15354–15356 15271

Interior Department National Institutes of Health See Land Management Bureau NOTICES See National Park Service Grants and cooperative agreements; availability, etc.: See Reclamation Bureau National Cancer Institute— Steroid derivatives with paclitaxel-like activity, 15347– International Trade Administration 15348 NOTICES Targeted screening for inhibitors of human herpesvirus Antidumping: 8 DNA polymerase activity, 15345–15347 Oil country tubular goods from— Meetings: Japan, 15305–15307 National Institute of Diabetes and Digestive and Kidney Diseases, 15348 International Trade Commission National Institute of General Medical Sciences, 15349 NOTICES National Institute of Mental Health, 15348–15349 Import investigations: Ammonium nitrate from— National Oceanic and Atmospheric Administration Russia, 15353 RULES Uranium from— Fishery conservation and management: Various countries, 15353 Alaska; fisheries of Exclusive Economic Zone— Security procedures for persons delivering/picking up Pollock, 15271–15272 packages and documents, 15353–15354 NOTICES Grants and cooperative agreements; availability, etc.: Chesapeake Bay stock assessments to encourage research Justice Department projects for improvement in Chesapeake Bay fishery See Foreign Claims Settlement Commission stock conditions, 15307–15312 See Immigration and Naturalization Service Permits Endangered and threatened species, 15312–15315 Labor Department See Employment and Training Administration National Park Service See Pension and Welfare Benefits Administration NOTICES Grants and cooperative agreements; availability, etc.: Land Management Bureau Glacier Bay National Park, AK; Dungeness crab NOTICES commercial fishery crewmember interim Meetings: compensation program, 15350–15351 Colorado wild horse management; helicopter and motor vehicle use; public hearing [Editorial Note: This Nuclear Regulatory Commission document, published at 65 FR 13987 in the [Federal NOTICES Register of March 15, 2000, was incorrectly listed as Agency information collection activities: ‘‘Wyoming wild horse management...’’ in that issue’s Submission for OMB review; comment request, 15373 table of contents.] Export and import license applications for nuclear facilities Closure of public lands: and materials: Nevada, 15350 Poco Graphite, Inc., 15373

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Meetings: Municipal Securities Rulemaking Board, 15399–15401 Standard Review Plan; stakeholders, 15374–15375 National Association of Securities Dealers, Inc., 15401– Operating licenses, amendments; no significant hazards 15403 considerations; biweekly notices, 15375–15397 Regulatory guides; issuance, availability, and withdrawal, State Department 15397–15398 NOTICES Applications, hearings, determinations, etc.: Art objects; importation for exhibition: Tennessee Valley Authority, 15373–15374 Michelangelo to Picasso: Master Drawings from the Collection of the Albertina, Vienna, 15403–15404 Pension and Welfare Benefits Administration NOTICES Substance Abuse and Mental Health Services Employee benefit plans; prohibited transaction exemptions: Administration Standard & Poor’s et al., 15360–15370 NOTICES Meetings: Public Health Service Women’s Services Advisory Committee, 15349–15350 See Food and Drug Administration See National Institutes of Health Surface Transportation Board See Substance Abuse and Mental Health Services NOTICES Administration Agreements under sections 5a and 5b; applications for approval, etc.: Reclamation Bureau Household Goods Carriers Bureau Committee; correction, NOTICES 15405 Environmental statements; availability, etc.: Republican River basin, NE and KS; long-term water Textile Agreements Implementation Committee supply contracts; renewal, 15351–15352 See Committee for the Implementation of Textile Meetings: Agreements Bay-Delta Advisory Council, 15352–15353 Transportation Department Refugee Resettlement Office See Coast Guard RULES See Federal Aviation Administration Refugee resettlement program: See Federal Railroad Administration Public/private partnership program; refugee cash and See National Highway Traffic Safety Administration medical assistance; requirements, 15410–15450 See Research and Special Programs Administration See Surface Transportation Board Research and Special Programs Administration PROPOSED RULES Twenty-First Century Workforce Commission Pipeline safety: NOTICES Safety regulations; periodic updates, 15290–15297 Hearings, 15406–15407 NOTICES Meetings: Pipeline Safety Advisory Committees, 15404–15405 Separate Parts In This Issue Rural Business-Cooperative Service NOTICES Part II Agency information collection activities: Department of Health and Human Services, Refugee Proposed collection; comment request, 15303–15304 Resettlement Office, 15409–15450

Rural Utilities Service Part III NOTICES Department of Housing and Urban Development, 15451– Agency information collection activities: 15498 Proposed collection; comment request, 15304 Part IV Securities and Exchange Commission Securities and Exchange Commission, 15499–15519 PROPOSED RULES Securities and investment companies: Mutual fund after-tax returns; disclosure, 15500–15519 Reader Aids NOTICES Consult the Reader Aids section at the end of this issue for Self-regulatory organizations; proposed rule changes: phone numbers, online resources, finding aids, reminders, Chicago Board Options Exchange, Inc., 15398–15399 and notice of recently enacted public laws.

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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.

4 CFR 40 CFR 27...... 15203 52 (2 documents) ...... 15240, 28...... 15203 15244 180...... 15248 7 CFR Proposed Rules: 915...... 15203 52 (3 documents) ...... 15286, 916...... 15205 15287 917...... 15205 42 CFR 989...... 15214 121...... 15252 45 CFR 9 CFR 400...... 15410 74...... 15216 401...... 15410 93...... 15216 46 CFR 515...... 15252 10 CFR 820...... 15218 49 CFR 572...... 15254 11 CFR Proposed Rules: 108...... 15221 190...... 15290 191...... 15290 Proposed Rules: 192...... 15290 9038...... 15273 195...... 15290 222...... 15298 12 CFR 229...... 15298 701...... 15224 50 CFR Proposed Rules: 679 (2 documents) ...... 15271, 742...... 15275 15272

14 CFR 39 (3 documents) ...... 15226, 15230, 15232 Proposed Rules: 39 (2 documents) ...... 15278, 15280 71...... 15282

17 CFR Proposed Rules: 230...... 15500 239...... 15500 270...... 15500 274...... 15500

18 CFR 157...... 15234 380...... 15234

24 CFR 401...... 15452 402...... 15452

33 CFR 117...... 15238 Proposed Rules: 165 (2 documents) ...... 15283, 15285

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Rules and Regulations Federal Register Vol. 65, No. 56

Wednesday, March 22, 2000

This section of the FEDERAL REGISTER For the reasons set forth in the Marketing Order Administration contains regulatory documents having general preamble, the General Accounting Branch, Fruit and Vegetable Programs, applicability and legal effect, most of which Office Personnel Appeals Board amends AMS, USDA, P.O. Box 2276, Winter are keyed to and codified in the Code of 4 CFR Chapter I, Subchapter B as Haven, Florida 33883; telephone: (863) Federal Regulations, which is published under follows: 299–4770, Fax: (863) 299–5169; or Anne 50 titles pursuant to 44 U.S.C. 1510. Dec, Team Leader, Marketing Order The Code of Federal Regulations is sold by PARTS 27 AND 28ÐGENERAL Administration Branch, Fruit and the Superintendent of Documents. Prices of ACCOUNTING OFFICE PERSONNEL Vegetable Programs, AMS, USDA, room new books are listed in the first FEDERAL APPEALS BOARD; PROCEDURES 2525–S, P.O. Box 96456, Washington, REGISTER issue of each week. APPLICABLE TO CLAIMS DC 20090–6456; telephone: (202) 720– CONCERNING EMPLOYMENT 2491, Fax: (202) 720–5698. PRACTICES AT THE GENERAL Small businesses may request GENERAL ACCOUNTING OFFICE ACCOUNTING OFFICE information on complying with this PERSONNEL APPEALS BOARD The interim rule amending 4 CFR regulation by contacting Jay Guerber, Marketing Order Administration 4 CFR Parts 27 and 28 parts 27 and 28 which was published at 64 FR 15125 on March 30, 1999, is Branch, Fruit and Vegetable Programs, Procedural Rules adopted as a final rule without change. AMS, USDA, P.O. Box 96456, room 2525–S, Washington, DC 20090–6456; AGENCY: General Accounting Office Michael Wolf, telephone: (202) 720–2491, Fax: Personnel Appeals Board. Chair, Personnel Appeals Board, U.S. General (202)720–5698, or E-mail: ACTION: Final rule. Accounting Office. [email protected]. [FR Doc. 00–7128 Filed 3–21–00; 8:45 am] SUPPLEMENTARY INFORMATION: This rule SUMMARY: The General Accounting BILLING CODE 1610±02±M is issued under Marketing Agreement Office Personnel Appeals Board (PAB) No. 121 and Marketing Order No. 915, has authority with respect to both as amended (7 CFR part 915), employment practices within the DEPARTMENT OF AGRICULTURE regulating the handling of avocados General Accounting Office (GAO or grown in South Florida, hereinafter agency), pursuant to the General Agricultural Marketing Service referred to as the ‘‘order.’’ The Accounting Office Personnel Act of marketing agreement and order are 1980 (GAOPA). The PAB hereby 7 CFR Part 915 effective under the Agricultural finalizes its regulations to explain that Marketing Agreement Act of 1937, as a quorum of three members of the Board [Docket No. FV00±915±1 FIR] amended (7 U.S.C. 601–674), hereinafter may exercise all the powers of the Avocados Grown in South Florida; referred to as the ‘‘Act.’’ Board, and that a majority of a quorum Relaxation of Container and Pack The Department is issuing this rule in may act in any matter requiring Requirements conformance with Executive Order consideration by the full Board. 12866. DATES: These regulations are effective AGENCY: Agricultural Marketing Service, This rule has been reviewed under March 22, 2000. USDA. Executive Order 12988, Civil Justice FOR FURTHER INFORMATION CONTACT: Beth ACTION: Final rule. Reform. This rule is not intended to Don, Executive Director, 202–512–6137. have retroactive effect. This rule will SUMMARY: The Department of SUPPLEMENTARY INFORMATION: The Agriculture (Department) is adopting, as not preempt any State or local laws, General Accounting Office Personnel a final rule, with minor editorial regulations, or policies, unless they Appeals Board on Tuesday, March 30, changes, the provisions of an interim present an irreconcilable conflict with 1999, published an interim rule with final rule changing the container and this rule. The Act provides that administrative request for comments by June 1, 1999, pack requirements prescribed under the proceedings must be exhausted before amending the PAB regulations. The Florida avocado marketing order (order). parties may file suit in court. Under interim rule conformed the regulations The marketing order regulates the section 608c(15)(A) of the Act, any to Board policy recognizing that a handling of avocados grown in South handler subject to an order may file quorum of three members of the Board Florida and is administered locally by with the Secretary a petition stating that may exercise all the powers of the the Avocado Administrative Committee the order, any provision of the order, or Board, and that a majority of a quorum (Committee). This rule continues in any obligation imposed in connection may act in any matter requiring effect the removal of the requirement with the order is not in accordance with consideration by the full Board. No that avocados packed in 33-pound law and request a modification of the comments on the interim rule were containers must weigh at least 16 order or to be exempted therefrom. A received by the Board. ounces. This change will provide greater handler is afforded the opportunity for flexibility in avocado packing List of Subjects in 4 CFR Parts 27 and a hearing on the petition. After the operations. 28 hearing the Secretary would rule on the Administrative practice and EFFECTIVE DATE: April 21, 2000. petition. The Act provides that the procedures, Equal employment FOR FURTHER INFORMATION CONTACT: district court of the United States in any opportunity, Government employees, Doris Jamieson, Marketing Specialist, district in which the handler is an Labor-management relations. Southeast Marketing Field Office, inhabitant, or has his or her principal

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California avocado handlers as those having annual receipts of less later than 20 days after the date of the have already adopted the practice of than $500,000. entry of the ruling. shipping smaller avocados in larger The average price for fresh avocados Under the terms of the order, fresh containers with a great deal of success. during the 1998–99 season was $17.90 market shipments of Florida avocados Florida avocado handlers would like to per 55-pound bushel box equivalent for are required to be inspected and are remain competitive with other avocado all domestic shipments and the total subject to grade, size, maturity, and growing areas. In order to meet the shipments were 890,859 bushels. Many pack and container requirements. Pack needs of the customer and remain avocado handlers ship other tropical and container requirements outline the competitive with other avocado fruit and vegetable products which are designated net weight of the containers handlers, this rule continues the not included in the Committee’s data used to pack avocados and the removal of the requirement that but would contribute further to handler minimum weight of the avocados avocados packed in 33-pound receipts. Using these prices, about 90 packed in the containers. containers must weigh at least 16 percent of avocado handlers could be This rule continues in effect the ounces. The avocados must meet all considered small businesses under the removal of the requirement that other requirements of the marketing SBA definition. The majority of Florida avocados packed in 33-pound order, including maturity requirements. avocado producers and handlers may be containers must weigh at least 16 In addition, the flexibility to pack classified as small entities. ounces. This change provides greater both large and small avocados in one Under sections 915.51 and 915.52 of flexibility in avocado packing container allows handlers to use the the marketing order for avocados grown operations. The Committee met on smaller avocados to create a tighter pack in South Florida, the Committee has the September 8, 1999, and unanimously with less open space inside the authority to recommend to the Secretary recommended this change. containers. The tighter pack restricts changes to the pack and container Section 915.51 of the order provides movement of the avocados during requirements for avocados handled authority to issue regulations shipment which prevents damage to the under the order. Current pack and establishing specific pack and container fruit. This improves the quality of the container requirements outline the requirements. Section 915.52 further fruit reaching the consumer, saves designated net weight of the containers authorizes the Committee to make handling costs, and provides greater used to pack avocados and the recommendations to the Secretary to returns to the grower. minimum weight of the avocados modify, suspend, or terminate Section 8e of the Act provides that packed in the containers. Current regulations, including pack and when certain domestically produced regulations authorize the use of 33- container requirements. The pack and commodities, including avocados, are pound, 31-pound, 24-pound, and 12- container requirements are specified regulated under a Federal marketing pound containers, and 8.5-pound under sections 915.305 and 915.306. order, imports of that commodity must containers for export shipments only. These sections specify, in part, meet the same or comparable grade, This rule continues to change section container weight and other applicable size, quality, and maturity requirements. 915.305(a)(1) of the rules and requirements, including the minimum This rule changes the pack and regulations concerning the pack and weight of the avocados packed in the container requirements currently in container requirements for avocados. containers. Current regulations effect which do not apply to imports. This rule continues to remove the authorize the use of 33-pound, 31- Therefore, no change is necessary in the requirement that avocados packed in 33- pound, 24-pound, and 12-pound avocado import regulations. pound containers must weigh at least 16 containers, and 8.5-pound containers for Pursuant to requirements set forth in ounces. The avocados must meet all export shipments only. the Regulatory Flexibility Act (RFA), the other requirements, including maturity Before the interim final rule became Agricultural Marketing Service (AMS) requirements. This change will continue effective, the requirements of section has considered the economic impact of to provide greater flexibility in avocado 915.305(a)(1) specified that avocados this action on small entities. packing operations. packed in 33-pound containers must Accordingly, AMS has prepared this This rule will have a positive impact weigh at least 16 ounces. Avocados final regulatory flexibility analysis. on affected entities. The change was weighing less than 16 ounces were to be The purpose of the RFA is to fit recommended to provide additional packed in smaller containers. The regulatory actions to the scale of flexibility in packing avocados. None of Committee has determined that retailers business subject to such actions in order the changes are expected to increase prefer shipments of avocados packed in that small businesses will not be unduly costs associated with the pack and larger containers. The size of the fruit is or disproportionately burdened. container requirements. This rule may, not a concern to retailers. By allowing Marketing orders issued pursuant to the in fact, reduce costs associated with the smaller fruit to be packed in the larger Act, and the rules issued thereunder, are pack and container requirements. containers, the retailer is able to offer unique in that they are brought about The Committee believes this change avocados to the consumer in a variety of through group action of essentially will benefit both large and small sizes. The larger containers are ideal for small entities acting on their own packing operations. It is particularly displaying the fruit. Upon receipt of the behalf. Thus, both statutes have small beneficial to small handlers since a avocado shipment, the retailer can entity orientation and compatibility. single container can be used to ship remove the lid from the larger container. There are approximately 141 avocado avocados to retail customers. This Without removing the fruit from the producers in the production area and reduces the need to maintain a large box, fruit can be offered for consumers approximately 49 avocado handlers inventory of smaller containers. Further, to purchase. This is time saving for subject to regulation under the the Committee has determined that retailers. marketing order. Small agricultural retailers prefer the larger containers; the Removing the requirement that service firms have been defined by the size of the fruit in those containers is of avocados packed in 33-pound Small Business Administration (SBA) lesser concern to the retailer. By containers weigh at least 16 ounces (13 CFR 121.201) as those having annual allowing smaller fruit to be packed in

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15205 the larger containers, the retailer is able deliberations. Like all Committee § 915.305 Florida Avocado Container to offer avocados to the consumer in a meetings, the September 8, 1999, Regulation 5. variety of sizes. The larger containers meeting was a public meeting and all (a) * * * are ideal for displaying the fruit. Upon entities, both large and small, were able (1) Containers shall not contain less receipt of the avocado shipment, the to express their views on this issue. The than 33 pounds net weight of avocados, retailer can remove the lid from the Committee itself is composed of 10 except that for avocados of unnamed larger container and, without removing members, of which 5 are growers, 4 are varieties, which are avocados that have the fruit from the box, fruit can be handlers, and one is a public member. not been given varietal names, and for offered for consumers to purchase. This Finally, interested persons were invited Booth 1, Fuchs, and Trapp varieties, is time saving for retailers. to submit information on the regulatory such weight shall be not less than 31 Removing the requirement that and informational impacts of this action pounds. Not more than 10 percent, by avocados packed in 33-pound on small business. count, of the individual containers in containers weigh at least 16 ounces will An interim final rule concerning this any lot may fail to meet the applicable continue to give handlers the flexibility action was published in the Federal specified weight. No container in any to pack both large and small avocados Register on December 13, 1999. Copies lot may contain a net weight of in one container. Florida avocado of the rule were mailed by the avocados exceeding 2 pounds less than handlers would like to continue to Committee’s staff to all Committee the specified net weight; or remain competitive with other avocado members and avocado handlers. In * * * * * growing areas. For example, California addition, the rule was made available Dated: March 16, 2000. avocado handlers have already adopted through the Internet by the Office of the Robert C. Keeney, the practice of shipping smaller Federal Register. That rule provided for avocados in larger containers with a a 60-day comment period which ended Deputy Administrator, Fruit and Vegetable Programs. great deal of success. In order to meet February 11, 2000. No comments were the needs of the customer and remain received. [FR Doc. 00–7085 Filed 3–21–00; 8:45 am] competitive with other avocado BILLING CODE 3410±02±P handlers, this rule continues to remove Changes to the interim final rule have the requirement that avocados packed in been made to correct some 33-pound containers must weigh at least typographical errors. Editorial changes DEPARTMENT OF AGRICULTURE 16 ounces. The avocados must meet all have also been made to make the other requirements of the marketing language easier to understand. Agricultural Marketing Service order, including maturity requirements. A small business guide on complying In addition, the flexibility to pack with fruit, vegetable, and specialty crop 7 CFR Parts 916 and 917 both large and small avocados in one marketing agreements and orders may container allows handlers to use the be viewed at the following web site: [Docket No. FV00±916±1 IFR] smaller avocados to create a tighter pack http://www.ams.usda.gov/fv/ with less open space inside the moab.html. Any questions about the Nectarines and Peaches Grown in containers. The tighter pack restricts compliance guide should be sent to Jay California; Revision of Handling movement of the avocados during Guerber at the previously mentioned Requirements for Fresh Nectarines shipment which prevents damage to the address in the FOR FURTHER INFORMATION and Peaches fruit. This continues to save handling CONTACT section. AGENCY: Agricultural Marketing Service, costs and provides greater returns to the After consideration of all relevant USDA. grower. material presented, including the Other alternatives to the action were Committee’s recommendation, and ACTION: Interim final rule with request considered by the Committee prior to other information, it is found that for comments. making the recommendation. One finalizing the interim final rule, with SUMMARY: This rule revises the handling alternative discussed by the Committee changes, as published in the Federal requirements for California nectarines was to continue to require that avocados Register (64 FR 69380, December 13, and peaches by modifying the grade, packed in 33-pound containers weigh at 1999) will tend to effectuate the size, maturity, and container marking least 16 ounces. The Committee declared policy of the Act. believed that this alternative provided requirements for fresh shipments of little benefit and would still limit List of Subjects 7 CFR Part 915 these fruits, beginning with 2000 season shipments. This rule also modifies the flexibility. Avocados, Marketing agreements, requirements for placement of Federal- This rule will not impose any Reporting and recordkeeping State Inspection Service lot stamps for additional reporting or recordkeeping requirements. requirements on either small or large the 2000 season only. The marketing avocado handlers. As with all Federal Accordingly, the interim final rule orders regulate the handling of marketing order programs, reports and amending 7 CFR part 915 which was nectarines and peaches grown in forms are periodically reviewed to published at 64 FR 69380 on December California and are administered locally reduce information requirements and 13, 1999, is adopted as a final rule with by the Nectarine Administrative and duplication by industry and public the following changes: Peach Commodity Committees sector agencies. In addition, the (committees). This rule enables handlers PART 915ÐAVOCADOS GROWN IN Department has not identified any to continue shipping fresh nectarines SOUTH FLORIDA relevant Federal rules that duplicate, and peaches meeting consumer needs in overlap or conflict with this rule. the interest of producers, handlers, and 1. The authority citation for part 915 consumers of these fruits. Further, the Committee’s meeting was continues to read as follows: widely publicized throughout the DATES: Effective April 1, 2000; avocado industry and all interested Authority: 7 U.S.C. 601–674. comments received by May 22, 2000, persons were invited to attend the 2. In Sec. 915.305, paragraph (a)(1) is will be considered prior to issuance of meeting and participate in Committee revised to read as follows: any final rule.

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ADDRESSES: Interested persons are handler subject to an order may file similar in size and characteristics to the invited to submit written comments with the Secretary a petition stating that 1999 crop which totaled 20,405,000 concerning this rule. Comments must be the order, any provision of the order, or boxes of nectarines and 20,460,000 sent to the Docket Clerk, Fruit and any obligation imposed in connection boxes of peaches. with the order is not in accordance with Vegetable Programs, AMS, USDA, room Lot Stamping Requirements 2525–S, P.O. Box 96456, Washington, law and request a modification of the DC 20090–6456; Fax: (202) 720–5698, or order or to be exempted therefrom. A Sections 916.55 and 917.45 of the E-mail: [email protected]. All handler is afforded the opportunity for orders require inspection and comments should reference the docket a hearing on the petition. After the certification of nectarines and peaches, number and the date and page number hearing the Secretary would rule on the respectively, handled by handlers. of this issue of the Federal Register and petition. The Act provides that the Sections 916.115 and 917.150 of the will be made available for public district court of the United States in any nectarine and peach orders’ rules and inspection at the Office of the Docket district in which the handler is an regulations, respectively, require that all Clerk during regular business hours. inhabitant, or has his or her principal exposed or outside containers of nectarines and peaches, and at least 75 FOR FURTHER INFORMATION CONTACT: place of business, has jurisdiction to percent of the total containers on a Terry Vawter, Marketing Specialist, review the Secretary’s ruling on the pallet, be stamped with the Federal- California Marketing Field Office, petition, provided an action is filed not State Inspection Service (inspection Marketing Order Administration later than 20 days after the date of the service) lot stamp number after Branch, Fruit and Vegetable Programs, entry of the ruling. inspection and prior to shipment to AMS, USDA, 2202 Monterey Street, Under the orders, lot stamping, grade, show that the fruit has been inspected. suite 102B, Fresno, California 93721; size, maturity, container, and pack These requirements apply except for telephone: (209) 487–5901, Fax: (209) requirements are established for fresh containers that are loaded directly onto 487–5906; or George Kelhart, Technical shipments of California nectarines and railway cars, or exempted, or mailed Advisor, Marketing Order peaches. Such requirements are in effect directly to consumers in consumer Administration Branch, Fruit and on a continuing basis. The Nectarine Administrative Committee (NAC) and packages. Vegetable Programs, AMS, USDA, room the Peach Commodity Committee (PCC), Lot stamp numbers are assigned to 2525–S, P.O. Box 96456, Washington, which are responsible for local each handler by the inspection service, DC 20090–6456; telephone: (202) 720– administration of the orders, met on and are used to identify the handler and 2491, Fax: (202) 720–5698. the date on which the container was Small businesses may request November 30, 1999, and unanimously recommended that these handling packed. The lot stamp number is also information on compliance with this used by the inspection service to regulation by contacting Jay Guerber, requirements be revised for the 2000 season, which begins April 1. The identify and locate the corresponding Marketing Order Administration changes: (1) Revise the lot stamping inspector’s working papers or notes. Branch, Fruit and Vegetable Programs, requirements for the 2000 season only; Working papers are the documents each AMS, USDA, P.O. Box 96456, room (2) authorize shipments of ‘‘CA Utility’’ inspector completes while performing 2525–S, Washington, DC 20090–6456; quality fruit to continue during the 2000 an inspection on a lot of nectarines or telephone: (202) 720–2491; Fax: (202) season; (3) eliminate the minimum letter peaches. Information contained in the 720–5698, or E-mail: height of maturity marking requirements working papers supports the grade [email protected]. for all containers; (4) provide a tolerance levels certified by the inspector at the SUPPLEMENTARY INFORMATION: This rule for the ‘‘Peento’’ or ‘‘donut’’ types of time of inspection. is issued under Marketing Agreements peaches for healed, non-serious, The lot stamp number has value for Nos. 124 and 85, and Marketing Order blossom-end growth cracks; and (5) the industries, as well. The committees Nos. 916 and 917 (7 CFR parts 916 and revise varietal maturity, quality, and utilize the lot stamp numbers and date 917) regulating the handling of size requirements to reflect recent codes to trace fruit in the container back nectarines and peaches grown in changes in growing conditions. to the orchard where harvested. This California, respectively, hereinafter The committees meet prior to and information is essential in providing referred to as the ‘‘orders.’’ The during each season to review the rules quick information for a crisis marketing agreements and orders are and regulations effective on a management program instituted by the effective under the Agricultural continuing basis for California industries. Without the lot stamp Marketing Agreement Act of 1937, as nectarines and peaches under the information on each container, the amended (7 U.S.C. 601–674), hereinafter orders. Committee meetings are open to ‘‘trace-back’’ effort, as it is called, would referred to as the ‘‘Act.’’ the public, and interested persons may be jeopardized. The Department of Agriculture express their views at these meetings. Recently, several new containers have (Department) is issuing this rule in The Department reviews committee been introduced for use by nectarine conformance with Executive Order recommendations and information, as and peach handlers. The boxes are 12866. well as information from other sources, returnable plastic containers which This rule has been reviewed under and determines whether modification, retailers send back to a central Executive Order 12988, Civil Justice suspension, or termination of the rules clearinghouse after use. Use of these Reform. This rule is not intended to and regulations would tend to effectuate boxes may represent substantial savings have retroactive effect. This rule will the declared policy of the Act. to retailers for storage and disposal, as not preempt any State or local laws, No official crop estimate was well as for handlers who do not have to regulations, or policies, unless they available at the time of the committees’ pay for traditional containers. Fruit is present an irreconcilable conflict with meetings because the nectarine and packed in the boxes by the handler, this rule. peach trees were dormant. The delivered to the retailer, emptied, and The Act provides that administrative committees will recommend a crop returned to the clearinghouse for proceedings must be exhausted before estimate at their meetings in early cleaning and redistribution. However, parties may file suit in court. Under spring. However, preliminary estimates because they were designed to be section 608c(15)(A) of the Act, any indicate that the 2000 crop will be reused, these boxes do not support

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00004 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15207 markings that are permanently affixed to U.S. No. 1 grade. Specifically, (calyx basin) cracks during the container. All markings must be nectarines were required to meet U.S. development. These cracks heal as the printed on cards which slip into tabs on No. 1 grade requirements, except there growth continues and as the fruit gains the front or sides of the containers. The was a slightly tighter requirement for size. Generally, the cracks are cards are easily inserted and removed, scarring and a more liberal allowance completely healed by harvest. Peaches and further contribute to the efficient for misshapen fruit. Prior to the 1996 with unhealed or serious blossom-end use of the container. season, § 917.459 required peaches to growth cracks at the time of inspection The cards are a concern for the meet the requirements of a U.S. No. 1 would not be included in U.S. No. 1 or inspection service and the industries, grade, except for a more liberal ‘‘CA Utility’’ packages. Such a however. Because of their unique allowance for open sutures that were relaxation will permit handlers of the portability, there is some concern that not ‘‘serious damage.’’ Peento type of peaches to utilize more the cards on pallets of inspected This rule revises § 916.350, § 916.356, of these fruit in boxes of U.S. No. 1 containers could easily be moved to § 917.442, and § 917.459 to permit peaches, benefitting both handlers and pallets of uninspected containers, thus shipments of nectarines and peaches growers of these varieties. permitting a handler to avoid inspection meeting ‘‘CA Utility’’ quality The PCC unanimously recommended on a lot or lots of nectarines or peaches. requirements during the 2000 season. this additional tolerance of 10 percent This would also jeopardize the use of (‘‘CA Utility’’ fruit is lower in quality for healed, non-serious, blossom-end the lot stamp numbers for the than that meeting the modified U.S. No. growth cracks for the Peento type of industries’ ‘‘trace back’’ program. 1 grade requirements.) Shipments of peaches, beginning in the 2000 season. To address this concern, the nectarines and peaches meeting ‘‘CA Container Marking Requirements committees have recommended that Utility’’ quality requirements were pallets of inspected fruit be identified permitted during the 1996 and 1997 Sections 916.52 and 917.41 of the with a USDA-approved pallet tag seasons, and also during the 1998 and nectarine and peach orders, containing the lot stamp number, in 1999 seasons with slight modifications. respectively, authorize container addition to the lot stamp number Studies conducted by the NAC and marking requirements. Requirements for printed on the card on the container. In PCC indicate that some consumers, container markings are specified in this way, an audit trail is created, retailers, and foreign importers found §§ 916.350 and 917.442 of the orders’ confirming that the lot stamp number on the lower quality fruit acceptable in rules and regulations. Container the containers on each pallet correspond some markets. When shipments of ‘‘CA marking requirements include marking to the lot stamp number on the pallet Utility’’ nectarines were first permitted of the commodity and variety (e.g., Fay tag. in 1996, they only represented 1.1 Elberta peaches), the size of the fruit in The inspection service and the percent of all nectarine shipments, or the box (e.g., 88 size), the net weight, committees have presented their approximately 210,000 boxes. and the maturity (either U.S. Mature concerns to the manufacturers of these Shipments of ‘‘CA Utility’’ peaches (US MAT) or California Well Matured types of boxes. One manufacturer has represented 1.9 percent of all peach (CA WELL MAT)), on each container of indicated a willingness to address the shipments, or 366,000 boxes. By 1998 nectarines or peaches. problem by offering an area on the and 1999, shipments of ‘‘CA Utility’’ As innovative containers enter the principle display panel where the nectarines represented 4.5 percent and marketplace, especially those preferred container markings will adhere to the 4.0 percent, respectively, of all nectarine by retailers, the configuration of display box, which will meet the needs of the shipments; or approximately 760,000 panels changes. This is true for both industries, the inspection service, and boxes and 819,600 boxes, respectively. retail and consumer-size containers. As the manufacturer. However, the In 1998 and 1999, shipments of ‘‘CA a result, handlers are forced to make manufacturer believes that this change Utility’’ peaches represented 3.3 percent adjustments in their container markings may not be available in time for the and 3.4 percent, respectively, of all to accommodate the differences in 2000 season. For that reason, the peach shipments; or approximately display panels. Some containers, such committees further recommended that 602,000 boxes and 689,800 boxes, as those intended for purchase by the proposed modification of the lot respectively. individual consumers, are smaller and stamping requirements be put into place For these reasons, the committees have less display-panel surface area, for the 2000 season only. unanimously recommended that and meeting all the minimum size Thus, §§ 916.115 and 917.150 will be shipments of ‘‘CA Utility’’ quality labeling requirements is difficult. Some amended to require the lot stamp nectarines and peaches be permitted for handlers requested a relaxation in the number to be adhered to a USDA- the 2000 season with a continuing in- container labeling requirements with approved pallet tag, in addition to the house statistical review. Paragraphs (d) regard to the fruit maturity marking, and requirement that the number be applied of §§ 916.350 and 917.442, and the committees agreed that a to cards on all exposed or outside paragraphs (a)(1) of §§ 916.356 and modification would be appropriate. This containers, and not less than 75 percent 917.459 are revised to permit shipments relaxation will eliminate the minimum of the total containers on a pallet. of nectarines and peaches meeting ‘‘CA lettering height in favor of a requirement A conforming change is made to Utility’’ quality requirements during the that fruit maturity markings be clear and § 917.150 by changing the word ‘‘but’’ to 2000 season, on the same basis as last legible. Therefore, paragraphs (a)(3) of ‘‘and,’’ making the language in this season. §§ 916.350 and 917.442 are so modified. section similar to that in § 916.115. In addition, paragraph (a)(1) of § 917.459 is revised to provide a 10 Maturity Requirements Grade and Quality Requirements percent tolerance for healed, non- Both orders provide (in §§ 916.52 and Sections 916.52 and 917.41 of the serious, blossom-end growth cracks for 917.41) authority to establish maturity orders authorize the establishment of the ‘‘Peento’’ or ‘‘donut’’ varieties of requirements for nectarines and grade and quality requirements for peaches, such as the ‘‘Saturn’’ and peaches, respectively. The minimum nectarines and peaches, respectively. ‘‘Jupiter’’ varieties. maturity level currently specified for Prior to the 1996 season, § 916.356 These varieties of peaches nectarines and peaches is ‘‘mature’’ as required nectarines to meet a modified characteristically suffer blossom-end defined in the standards. Additionally,

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00005 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15208 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations both orders’ rules and regulations peach variety to be regulated at the L nectarines in paragraphs (a)(2) through provide for a higher, ‘‘well matured’’ maturity guide. SPI also recommended (a)(9). This rule revises § 916.356 to classification. For most varieties, ‘‘well- a modification to the current maturity establish variety-specific minimum size matured’’ fruit determinations are made guide for the Autumn Rose peach requirements for 14 nectarine varieties using maturity guides (e.g., color chips). variety, changing the maturity guide that were produced in commercially- These maturity guides are reviewed from the I to the H maturity guide. significant quantities of more than each year by the Shipping Point This rule also corrects the reference to 10,000 packages for the first time during Inspection Service (SPI) to determine the Ambercrest peach variety listed in the 1999 season. This rule also removes whether they need to be changed based TABLE 1 of paragraph (a)(1)(iv). The the variety-specific minimum size on the most recent information available correct name of the variety is ‘‘Amber requirements for 6 varieties of on the individual characteristics of each Crest.’’ nectarines whose shipments fell below variety. The PCC recommended these 5,000 packages during the 1999 season. These maturity guides established maturity requirements based on SPI’s For example, one of the varieties under the handling regulations of the continuing review of individual recommended for addition to the California tree fruit marketing orders maturity characteristics and variety-specific minimum size have been codified in the Code of identification of the appropriate requirements is the Diamond Jewel Federal Regulations as TABLE 1 in maturity guide corresponding to the nectarine variety. Studies of the size §§ 916.356 and 917.459, for nectarines ‘‘well-matured’’ level of maturity for ranges attained by the Diamond Jewel and peaches, respectively. peach varieties in production. variety revealed all but one box of that The requirements in the 2000 TABLE 1 of paragraph (a)(1)(iv) of variety met minimum sizes 50, 60, 70, handling regulation are the same as § 917.459 is also revised to remove 15 and 80 during the 1999 season. The one those that appeared in the 1999 peach varieties which are no longer in box reportedly met a minimum size 88. handling regulation with a few production. The PCC routinely reviews While the size distribution peaked on exceptions. Those exceptions are the status of peach varieties listed in the size 70, 100 percent of the fruit sized explained in this rule. these maturity guides. The most-recent at a minimum of size 88. Nectarines: Requirements for ‘‘well- review revealed that 15 of the peach A review of other varieties with the matured’’ nectarines are specified in varieties currently listed in the maturity same harvesting period indicated that § 916.356 of the order’s rules and guide have not been in production since Diamond Jewel was also comparable to regulations. While SPI made no the 1997 season. Typically, the PCC those varieties in its size ranges for that recommendation with regard to changes recommends removing a variety after time period. Discussions with handlers to the NAC regarding maturity guides, non-production for three seasons, or if known to handle the variety confirmed the committee recommended removal of trees of that variety are known to have this information regarding minimum several varieties of nectarines from the been pulled out, because a maturity size and harvesting period, as well. maturity guides. guide for an obsolete variety is no longer Thus, the recommendation to place the This rule revises TABLE 1 of needed. The varieties removed include Diamond Jewel nectarine variety in the paragraph (a)(1)(iv) of § 916.356 to the August Sun, Autumn Crest, variety-specific size regulation at a size remove 12 nectarine varieties which are Belmont(Fairmont), Berenda Sun, 88 is appropriate. no longer in production. The NAC Fayette, Golden Crest, Golden Lady, Historical variety data such as this routinely reviews the status of nectarine June Sun, Mary Anne, Parade, Pat’s provides the NAC with the information varieties listed in these maturity guides. Pride, Prima Lady, Red Cal, Scarlet necessary to recommend the appropriate The most recent review revealed that 12 Lady, and Springold peach varieties. sizes at which to regulate various of the nectarine varieties currently listed nectarine varieties. In addition, in the maturity guide have not been in Size Requirements producers and handlers of the varieties production since the 1997 season. Both orders provide (in §§ 916.52 and affected are personally invited to Typically, the NAC recommends 917.41) authority to establish size comment when such size removing a variety after non-production requirements. Size regulations cause recommendations are deliberated. for three seasons, or if trees of that producers to leave fruit on the tree Producer and handler comments are variety are known to have been pulled longer. This increased growing time not also considered at both NAC and out, because a maturity guide for an only improves the size of the fruit, but subcommittee meetings when such obsolete variety is no longer needed. also increases its maturity. In addition, comments are received by the staff. The varieties removed include the increased size results in an increased For reasons similar to those discussed Apache, Arm King, Bob Grand, Flavor number of packed boxes of nectarines or in the preceding paragraph, the Grand, Flavortop I, Maybelle, Mike peaches per acre. Acceptable size fruit introductory text of paragraph (a)(4) of Grand, Pacific Star, Son Red, Summer also provides greater consumer § 916.356 is revised to include the Star, Sunfre, and Tasty Gold nectarine satisfaction and more repeat purchases, Diamond Jewel, Kay Sweet, and White varieties. and, therefore, increases returns to Sun nectarine varieties; and the Peaches: Section 917.459 of the producers and handlers. Varieties introductory text of paragraph (a)(6) in order’s rules and regulations specifies recommended for specific size § 916.356 is revised to include the maturity requirements for fresh peaches regulation have been reviewed and such Arctic Blaze, Arctic Gold, Arctic Jay, being inspected and certified as being recommendations are based on the Cole Red, Fire Sweet, Honey Blaze, Kay ‘‘well matured.’’ specific characteristics of each variety. Bright, Prima Diamond XVIII, Regal This rule revises TABLE 1 of The NAC and PCC conduct studies each Pearl, Ruby Sweet, and White paragraph (a)(1)(iv) of § 917.459 to add season on the range of sizes reached by September nectarine varieties. maturity guides for 2 peach varieties the regulated varieties and determine This rule also revises the introductory and revise the maturity guide for 1 whether revisions in the size text of paragraph (a)(4) of § 916.356 to variety. Specifically, SPI recommended requirements are appropriate. remove 2 nectarine varieties from the adding the maturity guides for the Earli Nectarines: Section 916.356 of the variety-specific minimum size Rich peach variety to be regulated at the order’s rules and regulations specifies requirements specified in the section H maturity guide, and the Late Ito Red minimum size requirements for fresh because less than 5,000 packages of each

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15209 of these varieties were produced during A review of other varieties of the same sizing and maturity relationships for the 1999 season. Thus, the introductory harvesting period indicated that these peach varieties, and the consumer text of paragraph (a)(4) is revised to Brittany Lane was also comparable to acceptance levels for various fruit sizes. remove the Early May and Prima those varieties in its size ranges. This rule is designed to establish Diamond VI nectarine varieties. Discussions with handlers known to minimum size requirements for fresh This rule also revises the introductory handle the variety confirmed this peaches consistent with expected crop text of paragraph (a)(6) of § 916.356 to information regarding minimum size and market conditions. remove 4 nectarine varieties from the and harvesting period, as well. Thus, This rule reflects the committees’ and variety-specific minimum size the recommendation to place the the Department’s appraisal of the need requirements specified in the section Brittany Lane variety in the variety- to revise the handling requirements for because less than 5,000 packages of each specific size regulation at a size 80 is California nectarines and peaches, as of these varieties were produced during appropriate. specified. The Department has the 1999 season. Thus, the introductory Historical variety data such as this determined that this rule will have a text of paragraph (a)(6) is revised to provides the PCC with the information beneficial impact on producers, remove the Flavortop, Flavortop I, How necessary to recommend the appropriate handlers, and consumers of California Red (Sunectnineteen) and the 491–48 sizes at which to regulate various peach nectarines and peaches. nectarine varieties. varieties. In addition, producers of the This rule establishes handling The Gran Sun nectarine variety had affected varieties are invited to requirements for fresh California 1999 shipments of 2,939 packages, but comment when such size nectarines and peaches consistent with was not recommended for removal from recommendations are deliberated. expected crop and market conditions, variety-specific size requirements Producer and handler comments are and will help ensure that all shipments because the variety is expected to also considered at both PCC and of these fruits made each season will increase in commercial significance subcommittee meetings when such meet acceptable handling requirements during the 2000 season. Inclement comments are received by the staff. established under each of these orders. weather, including the cool spring and In § 917.459 of the order’s rules and This rule will also help the California frost damage, is considered to be a factor regulations, the introductory text of nectarine and peach industries provide in the decreased production during the paragraph (a)(5) is revised to include the fruit desired by consumers. This rule is 1999 season. Brittany Lane, Snow Prince, Zee designed to establish and maintain Nectarine varieties removed from the Diamond, 012–094, and 172LE White orderly marketing conditions for these nectarine variety-specific list become Peach (Crimson Snow/Sunny Snow) fruits in the interest of producers, subject to the non-listed variety size peach varieties; and the introductory handlers, and consumers. requirements specified in paragraphs text of paragraph (a)(6) is revised to Pursuant to requirements set forth in (a)(7), (a)(8), and (a)(9) of § 916.356. include the Country Sweet, Earli Rich, the Regulatory Flexibility Act (RFA), the The NAC recommended these Full Moon, Late September Snow, N117, Agricultural Marketing Service (AMS) changes in the minimum size Queen Lady, Red Sun, Sierra Gem, has considered the economic impact of requirements based on a continuing Snow Blaze, Sweet Kay, and Sweet this action on small entities. review of the sizing and maturity September peach varieties. Accordingly, AMS has prepared this relationships for these nectarine This rule also revises § 917.459 to initial regulatory flexibility analysis. varieties, and consumer acceptance remove 4 peach varieties from the The purpose of the RFA is to fit levels for various sizes of fruit. This rule variety-specific size requirements regulatory actions to the scale of is designed to establish minimum size specified in that section, because less business subject to such actions in order requirements for fresh nectarines than 5,000 packages of this variety were that small businesses will not be unduly consistent with expected crop and produced during the 1999 season. In or disproportionately burdened. market conditions. § 917.459, the introductory text of Marketing orders issued pursuant to the Peaches: Section 917.459 of the paragraph (a)(5) is revised to remove the Act, and rules issued thereunder, are order’s rules and regulations specifies Golden Crest (Supechthree) peach unique in that they are brought about minimum size requirements for fresh variety and the introductory text of through group action of essentially peaches in paragraphs (a)(2) through paragraph (a)(6) of § 917.459 is revised small entities acting on their own (a)(6), and paragraphs (b) and (c). This to remove the Snow Diamond, Sparkle, behalf. Thus, both statutes have small rule revises § 917.459 to establish and 1–01–505 peach varieties. entity orientation and compatibility. variety-specific minimum size The Super Rich peach variety had There are approximately 300 requirements for 16 peach varieties that 1999 shipments of 3,941 packages, but California nectarine and peach handlers were produced in commercially- was not recommended for removal from subject to regulation under the orders significant quantities of more than variety-specific size requirements covering nectarines and peaches grown 10,000 packages for the first time during because the variety is expected to in California, and about 1,800 producers the 1999 season. This rule also removes increase in commercial significance of these fruits in California. Small the variety-specific minimum size during the 2000 season. Inclement agricultural service firms, which requirements for 4 varieties of peaches weather, including the cool spring and includes handlers, are defined as those whose shipments fell below 5,000 frost damage, is considered to be a factor whose annual receipts are less than packages during the 1999 season. in the decreased production during the $5,000,000. Small agricultural One of the varieties recommended for 1999 season. producers have been defined by the addition to the variety-specific size Peach varieties removed from the Small Business Administration [13 CFR requirements is the Brittany Lane variety-specific list become subject to 121.201] as those having annual receipts variety. Studies of the size ranges the non-listed variety size requirements of less than $500,000. A majority of attained by the Brittany Lane variety specified in paragraphs (b) and (c) of these handlers and producers may be revealed that while the size distribution § 917.459. classified as small entities. peaked on size 50, all of the boxes of The PCC recommended these changes The committees’ staff have estimated that variety met at least the size 80 in the minimum size requirements that there are less than 20 handlers in requirement. based on a continuing review of the the industry who could be defined as

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15210 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations other than small entities. If the average marked with a pallet tag containing the maturity guides (e.g., color chips), as handler price received were $9.00 per lot stamp number, in addition to the lot reviewed by SPI. Such maturity guides box or box equivalent of nectarines or stamp number provided on the card on provide producers, handlers, and SPI peaches, a handler would have to ship the containers. with objective tools for measuring the at least 555,000 boxes to have annual The committees believe that this maturity of different varieties of receipts of $5,000,000. Small handlers recommendation should be limited to nectarines and peaches. Such maturity represent approximately 94 percent of the 2000 season only, since at least one guides are reviewed annually by SPI to the handlers within the industry. If the manufacturer anticipates the availability determine the appropriate guide for average producer price received were of an area on the principle display panel each nectarine and peach variety. These $6.00 per box or box equivalent for where the container markings will annual adjustments reflect changes in nectarines and $5.65 per box or box adhere to the box, which will meet the the maturity patterns of nectarines and equivalent for peaches, producers needs of the industries, inspection peaches as experienced over the would have to produce approximately service, and the manufacturer. However, previous seasons’ inspections. 84,000 boxes or box equivalents of the manufacturer believes that this Adjustments in the guides ensure that nectarines and approximately 89,000 change may not be available in time for fruit has met an acceptable level of boxes or box equivalents of peaches to the 2000 season. For that reason, the maturity, thus ensuring consumer have annual receipts of $500,000. committees further recommended that satisfaction while benefitting nectarine Therefore, small producer entities are the proposed modification of the lot and peach producers and handlers. estimated to represent approximately 78 stamping requirements be put into place Currently, in § 916.356 of the order’s percent of the producers within the for the 2000 season only. rules and regulations for nectarines and industry. For those reasons, a majority In 1996, §§ 916.350 and 917.442 were § 917.459 of the order’s rules and of the handler and producers may be revised to permit shipments of lower- regulations for peaches, minimum sizes classified as small entities. quality nectarines and peaches, known for various varieties of nectarines and Under §§ 916.52 and 917.41 of the as ‘‘CA Utility,’’ as an experiment for peaches are established. This rule makes orders, lot stamping, grade, size, the 1996 season only. Such adjustments to the minimum sizes authorization was continued during the maturity, and container and pack authorized for various varieties of 1997, 1998, and 1999 seasons. This rule requirements are established for fresh nectarines and peaches for the 2000 permits the continued use of ‘‘CA shipments of California nectarines and season. Minimum size regulations are Utility’’ quality fruit for the 2000 season peaches, respectively. Such put in place to allow fruit to stay on the with a continued in-house statistical requirements are in effect on a tree for a greater length of time. This review to be conducted by the NAC and continuing basis. This rule revises increased growing time not only PCC. During the 1996 season, the current requirements to: (1) Revise the improves maturity, but also improves lot stamping requirements for the 2000 Department authorized the shipment of fruit size. Increased fruit size increases season only; (2) authorize shipments of nectarines and peaches which were of a the number of packed boxes per acre. ‘‘CA Utility’’ quality fruit to continue lower quality than the minimum Increased fruit size and maturity also during the 2000 season; (3) eliminate permitted for previous seasons. During provide greater consumer satisfaction the minimum size of maturity marking 1996, there were 210,443 boxes of and, therefore, more repeat purchases by requirements for all containers; (4) nectarines and 365,761 boxes of peaches consumers. Repeat purchases and provide a tolerance for the ‘‘Peento’’ or packed as ‘‘CA Utility,’’ or 1.1 percent consumer satisfaction benefit producers ‘‘donut’’ types of peaches for healed, and 1.9 percent of fresh shipments, and handlers alike. Such adjustments to non-serious, blossom-end growth respectively. During 1997, there were minimum sizes of nectarines and cracks; and (5) revise varietal maturity, 230,275 boxes of nectarines and 216,562 quality, and size requirements to reflect boxes of peaches packed as ‘‘CA peaches are recommended each year by recent changes in growing conditions. Utility,’’ or 1.1 percent and 1.0 percent the NAC and PCC based upon historical In §§ 916.115 and 917.150 of the of fresh shipments, respectively. In data, and producer and handler orders’ rules and regulations, 1998, there were 760,000 boxes of information regarding sizes which the respectively, handlers are required to nectarines and 602,000 boxes of peaches different varieties attain. stamp containers of nectarines and packed as ‘‘CA Utility,’’ or 4.5 percent The recommendations with regard to peaches with the Federal-State and 3.3 percent of fresh shipments, maturity markings on containers, Inspection Service lot stamp number respectively. In 1999, there were continuation of authority to ship after inspection and prior to shipment. 819,600 boxes of nectarines and 689,800 nectarines and peaches which meet the New, returnable containers, which do boxes of peaches packed as ‘‘CA ‘‘CA Utility’’ quality requirements, and not support permanent markings, utilize Utility,’’ or 4.0 percent and 3.4 percent an increased tolerance for Peento type of printed cards which contain the lot of fresh shipments, respectively. peaches, are relaxations. These stamp number, date codes, and other Continued availability of ‘‘CA Utility’’ regulations are intended to provide container marking requirements. The quality fruit is expected to have a increased flexibility for handlers of printed cards are easily inserted into positive impact on producers, handlers, nectarines and peaches. tabs on the front or sides of the and consumers by permitting more The committees made containers. The ease of portability of nectarines and peaches to be shipped recommendations regarding these these cards creates problems for both into fresh market channels, without revisions in handling requirements after the inspection service and the industries adversely impacting the market for considering all available information, in tracking the containers. Cards on a higher quality fruit. including comments of persons at three pallet of inspected fruit could be easily Sections 916.356 and 917.442 subcommittee meetings. The Grade and moved to a pallet of uninspected fruit, establish minimum maturity levels. This Size Subcommittee met on November 9, thus permitting a handler to circumvent rule makes annual adjustments to the 1999, the Management Services inspection requirements. The inspection maturity requirements for several Committee met on November 17, 1999, service and the committees have varieties of nectarines and peaches. and the Returnable Plastic Container recommended that each pallet of Maturity requirements are based on Task Force met on November 23, 1999. inspected nectarines and peaches be maturity measurements generally using At the meetings, the impact of and

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15211 alternatives to these recommendations room is left on the display panel and information requirements and were discussed. markings may nearly overlap. His duplication by industry and public At the Grade and Size Subcommittee, recommendation and those of SPI and sector agencies. the members discussed the staff were approved unanimously. The Department has not identified recommendations of SPI with regard to At the Returnable Plastic Container any relevant Federal rules that maturity guides, and recommendations Task Force meeting, the participants duplicate, overlap, or conflict with this of staff with regard varietal sizing and discussed the most expedient method to rule. However, as previously stated, grades. SPI recommended maturity ensure that lot stamp numbers and date nectarines and peaches under the orders guides for two varieties of peaches and codes could be affixed to containers of have to meet certain requirements set also recommended a change in maturity nectarines and peaches to allow such forth in the standards issued under the guides for an established variety. SPI containers to be adequately tracked, Agricultural Marketing Act of 1946 (7 made no recommendations to add or which would meet the needs of the U.S.C. 1621 et seq.). Standards issued change any maturity guides for inspection service and the industries. under the Agricultural Marketing Act of nectarines. The staff made The members also met with a 1946 are otherwise voluntary. recommendations to remove varieties of manufacturer of one of the returnable In addition, the committees’ meetings nectarines and peaches from the boxes, who expressed a willingness to were widely publicized throughout the maturity listings which are no longer in cooperate with the industries in finding nectarine and peach industries and all commercial production. a solution to the problem of the highly- interested parties were invited to attend The staff also made recommendations portable cards on the containers. the meetings and participate in to add nectarine and peach varieties to Alternatives offered included leaving committee deliberations on all issues. the variety specific size requirements, container marking requirements These meetings are held annually based upon internal studies of the sizing unchanged, eliminating lot stamp during the last week of November or characteristics of those nectarines and numbers as a required marking, and first week of December. Like all peaches. These nectarine and peach permitting shipments of nectarines and committee meetings, the November 30, varieties were packed in commercially- peaches in these containers without 1999, meetings were public meetings significant quantities of 10,000 packages restrictions on the cards. By leaving and all entities, both large and small, or more during the 1999 season. Also, container marking requirements were able to express views on these the staff made recommendations to unchanged, handlers would be issues. The committees themselves are remove nectarine and peach varieties precluded from providing nectarines composed of producers. Finally, from the variety specific sizing and peaches in containers advocated by interested persons are invited to submit requirements, based upon information receiving retailers. Eliminating lot information on the regulatory and indicating that less than 5,000 packages stamp numbers as a required marking is informational impacts of this action on of those varieties were packed in the unacceptable to both the inspection small businesses. 1999 season and that the shipments of service and the industry. Allowing A small business guide on complying those varieties are expected to continue returnable, plastic containers to be with fruit, vegetable, and specialty crop to decline in commercial significance. shipped with the highly portable cards marketing agreements and orders may The committees routinely review their is also unacceptable since the be viewed at the following website: regulations and add varieties of which portability of the cards could enable a http://www.ams.usda.gov/fv/ more than 10,000 packages are packed handler to evade inspection on a lot or moab.html. Any questions about the in a season; or remove varieties of lots of nectarines or peaches by moving compliance guide should be sent to Jay which less than 5,000 packages are the cards to uninspected containers, and Guerber at the previously mentioned packed in a season. The alternative to could jeopardize the industries’ ‘‘trace address in the FOR FURTHER INFORMATION these requirements would be for the back’’ program. All of these alternatives CONTACT section. more popular varieties to be subject to were, therefore, rejected. After consideration of all relevant the less precise general sizing At the Management Services matters presented, the information and regulations. This alternative was Committee meeting, the members recommendations submitted by the rejected since it would ultimately reviewed all subcommittee committees, and other information, it is increase the amount of less acceptable recommendations available to them. found that this interim final rule, as fruit being marketed to consumers. Such The members of the Management hereinafter set forth, will tend to a result would be contrary to the long- Services Committee include the effectuate the declared policy of the Act. term interests of producers, handlers, chairpersons and vice-chairpersons of This rule invites comments on a and consumers. the committees, who generally have change to the handling requirements At the Grade and Size Subcommittee many years experience working in the currently prescribed under the meeting, a handler recommended industries. They, too, discussed marketing orders for California fresh eliminating the required minimum letter recommendations of subcommittees and nectarines and peaches. Any comments height for maturity markings for all were free to make alternative received will be considered prior to types of containers. The handler noted recommendations or revise finalization of this rule. that some boxes preferred by retailers recommendations to the committees, as Pursuant to 5 U.S.C. 553, it is also have limited amounts of space on the they reviewed such recommendations. found and determined, upon good display panels, especially consumer Like committee meetings, cause, that it is impracticable, boxes. He suggested that the lettering subcommittee meetings are open to the unnecessary, and contrary to the public height minimum for the maturity public and comments are widely interest to give preliminary notice prior markings be eliminated in favor of clear solicited. to putting this rule into effect, and that and legible markings. Any alternatives, This rule does not impose any good cause exists for not postponing the he noted, would fall short of the need additional reporting and recordkeeping effective date of this rule until 30 days to provide handlers the necessary requirements on either small or large after publication in the Federal Register maturity marking flexibility. He added handlers. As with all Federal marketing because: (1) California nectarine and that with all the required markings for order programs, reports and forms are peach producers and handlers should be variety, commodity, etc., very little periodically reviewed to reduce apprised of this rule as soon as possible,

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The term expected to begin about April 1; (2) this nectarines, except for consumer ‘‘CA Utility’’ means that not more than rule relaxes grade requirements for packages in master containers and 40 percent of the nectarines in any nectarines and peaches and size consumer packages mailed directly to container meet or exceed the requirements for several nectarine and consumers, shall bear on one outside requirements of the U.S. No. 1 grade, peach varieties; (3) this rule relaxes end clearly and legibly in plain sight except that when more than 30 percent container marking requirements for all and in plain letters the words ‘‘U.S. of the nectarines in any container meet containers; and (4) the committees Mature’’ or ‘‘US MAT’’ if such or exceed the requirements of U.S. No. unanimously recommended these nectarines are mature as defined in the 1 grade, the additional 10 percent shall changes at a public meeting and United States Standards for Grades of have non-scoreable blemishes as interested persons had an opportunity Nectarines (7 CFR 51.3145 through determined when applying the U.S. to provide input; and (5) the rule 51.3160); or may instead bear on one Standards for Grades of Nectarines; and provides a 60-day comment period, and outside end clearly and legibly in plain that such nectarines are mature and are: any written comments received will be sight and in plain letters the words * * * * * considered prior to any finalization of ‘‘California Well Matured’’ or ‘‘CA (iv) * * * this interim final rule. WELL MAT’’ if such nectarines are well matured as defined in § 916.356. List of Subjects TABLE 1 * * * * * 7 CFR Part 916 (d) During the period April 1 through October 31, 2000, each container or Column A Column B Marketing agreements, Nectarines, variety maturity Reporting and recordkeeping package when packed with nectarines guide requirements. meeting the ‘‘CA Utility’’ quality requirements, shall bear the words ‘‘CA Alshir Red ...... J 7 CFR Part 917 Utility,’’ along with all other required April Glo ...... H Marketing agreements, Peaches, Pears, container markings, in letters at least 3⁄8 August Glo ...... L Reporting and recordkeeping inch in height on the visible display August Lion ...... J requirements. panel. Consumer bags or packages must August Red ...... J also be clearly marked on the consumer Aurelio Grand ...... F For the reasons set forth in the Autumn Delight ...... L preamble, 7 CFR parts 916 and 917 are bags or packages as ‘‘CA Utility,’’ along with other required markings, in letters Autumn Grand ...... L amended as follows: Big Jim ...... J at least 3⁄8 inch in height. 1. The authority citation for 7 CFR Diamond Jewel ...... L parts 916 and 917 continues to read as * * * * * Diamond Ray ...... L follows: 4. Section 916.356 is amended by: a. Revising the introductory text of Earliglo ...... I Authority: 7 U.S.C. 601–674. paragraph (a)(1); Early Diamond ...... J b. Revising TABLE 1 of paragraph Early May ...... F PART 916ÐNECTARINES GROWN IN (a)(1)(iv); and, Early May Grand ...... H CALIFORNIA c. Revising the introductory text of Early Red Jim ...... J Early Sungrand ...... H 2. Section 916.115 is revised to read paragraphs (a)(3), (a)(4) and (a)(6), to read as follows: Fairlane ...... L as follows: Fantasia ...... J § 916.115 Lot stamping. § 916.356 California nectarine grade and Firebrite ...... H size regulation. Except when loaded directly into Flamekist ...... L (a) * * * Flaming Red ...... K railway cars, exempted under § 916.110, (1) Any lot or package or container of or for nectarines mailed directly to Flavortop ...... J any variety of nectarines unless such Grand Diamond ...... L consumers in consumer packages, all nectarines meet the requirements of U.S. Independence ...... H exposed or outside containers of No. 1 grade: Provided, That nectarines 2 July Red ...... L nectarines, and not less than 75 percent inches in diameter or smaller, shall not June Brite ...... I of the total containers on a pallet, shall have fairly light-colored, fairly smooth Juneglo ...... H be plainly stamped, prior to shipment, scars which exceed an aggregate area of Kay Diamond ...... L with a Federal-State Inspection Service a circle 3⁄8 inch in diameter, and King Jim ...... L lot stamp number, assigned by such nectarines larger than 2 inches in Kism Grand ...... J Service, showing that such fruit has diameter shall not have fairly light- Late Le Grand ...... L been USDA inspected in accordance colored, fairly smooth scars which Late Red Jim ...... J with § 916.55: Provided, That for the May Diamond ...... I exceed an aggregate area of a circle 1⁄2 period April 1 to October 31, 2000, inch in diameter: Provided further, That May Fire ...... H pallets of returnable plastic containers an additional tolerance of 25 percent Mayglo ...... H shall have the lot stamp numbers affixed shall be permitted for fruit that is not May Grand ...... H to each pallet with a USDA-approved May Jim ...... I well formed but not badly misshapen: May Kist ...... H pallet tag, in addition to the lot stamp Provided further, That all varieties of numbers and other required information May Lion ...... J nectarines which fail to meet the U.S. Mid Glo ...... L on cards on the individual containers. No. 1 grade only on account of lack of 3. Section 916.350 is amended by: Moon Grand ...... L blush or red color due to varietal a. Revising paragraphs (a)(3) and Niagara Grand ...... H b. Revising paragraph (d) to read as characteristics shall be considered as P-R Red ...... L follows: meeting the requirements of this Red Diamond ...... L subpart: Provided further, That during Red Delight ...... I § 916.350 California nectarine container the period April 1 through October 31, Red Fred ...... J and pack regulation. 2000, any handler may handle Red Free ...... L (a) * * * nectarines if such nectarines meet ‘‘CA Red Glen ...... J

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TABLE 1ÐContinued Jim, Brite Pearl, Cole Red, Crystal Rose, for Grades of Peaches (7 CFR 51.1210 Diamond Ray, Early Red Jim, Fairlane, through 51.1223); or may instead bear Column A Column B Fantasia, Firebrite, Fire Pearl, Fire on one outside end clearly and legibly maturity Sweet, Flame Glo, Flaming Red, Grand in plain sight and in plain letters the variety guide Diamond, Grand Pearl, Honey Blaze, words ‘‘California Well Matured’’ or Red Glo ...... I Honey Kist, July Red, Kay Bright, Kay ‘‘CA WELL MAT’’ if such peaches are Red Grand ...... H Diamond, King Jim, Late Red Jim, Mid well matured as defined in § 917.459. Red Jim ...... L Glo, Niagara Grand, P–R Red, Prima * * * * * Red May ...... J Diamond IX, Prima Diamond XVI, Prima Rio Red ...... L Diamond XVIII, Prima Diamond XIX, (d) During the period April 1 through Rose Diamond ...... J Prima Diamond XXIV, Red Diamond, November 23, 2000, each container or Royal Delight ...... F Red Glen, Red Jim, Regal Pearl, Rio Red, package when packed with peaches Royal Giant ...... I meeting the ‘‘CA Utility’’ quality Royal Glo ...... I Royal Giant, Ruby Diamond, Ruby Pearl, Ruby Diamond ...... L Ruby Sweet, Scarlet Red, September requirements, shall bear the words ‘‘CA Ruby Grand ...... J Red, Sparkling June, Sparkling Red, Utility,’’ along with all other required Ruby Sun ...... J Spring Bright, Spring Diamond, Spring container markings, in letters at least 3⁄8 Scarlet Red ...... K Red, Summer Beaut, Summer Blush, inch in height on the visible display September Grand ...... L Summer Bright, Summer Diamond, panel. Consumer bags or packages must September Red ...... L Sheri Red ...... J Summer Fire, Summer Grand, Summer also be clearly marked on the consumer Sparkling June ...... L Lion, Summer Red, Sunburst, Sun bags or packages as ‘‘CA Utility,’’ along Sparkling May ...... J Diamond, Sunny Red, Super Star, Terra with other required markings, in letters Sparkling Red ...... L White, White September, or Zee Glo at least 3⁄8 inch in height. Spring Bright ...... L variety nectarines unless: Spring Diamond ...... L * * * * * Spring Red ...... H * * * * * 7. Section 917.459 is amended by: Star Brite ...... J Summer Beaut ...... H PART 917ÐFRESH PEARS AND a. Revising the introductory text of Summer Blush ...... J PEACHES GROWN IN CALIFORNIA paragraph (a)(1); Summer Bright ...... J b. Revising TABLE 1 of paragraph 5. Section 917.150 is revised to read Summer Diamond ...... L (a)(1)(iv); and Summer Fire ...... L as follows: Summer Grand ...... L c. Revising the introductory text of Summer Lion ...... L § 917.150 Lot stamping. paragraphs (a)(5) and (a)(6) to read as Summer Red ...... L Except when loaded directly into follows: Sunburst ...... J railway cars, exempted under § 917.143, Sun Diamond ...... I or for peaches mailed directly to § 917.459 California peach grade and size Sun Grand ...... G regulation. Super Star ...... G consumers in consumer packages, all Tom Grand ...... L exposed or outside containers of (a) * * * peaches, and not less than 75 percent of Zee Glo ...... J (1) Any lot or package or container of Zee Grand ...... I the total containers on a pallet, shall be plainly stamped, prior to shipment, any variety of peaches unless such with a Federal-State Inspection Service peaches meet the requirements of U.S. Note: Consult with the Federal or Federal- No. 1 grade: Provided, That an State Inspection Service Supervisor for the lot stamp number, assigned by such maturity guides applicable to the varieties Service, showing that such fruit has additional 25 percent tolerance shall be not listed above. been USDA inspected in accordance permitted for fruit with open sutures with § 917.45: Provided: That for the which are damaged, but not seriously * * * * * damaged: Provided Further, That (3) Any package or container of period April 1 to November 23, 2000, pallets of returnable plastic containers peaches of the Peento type shall be Mayglo variety of nectarines on or after permitted a 10 percent tolerance for May 6 of each year, or Earliglo, Early shall have the lot stamp numbers affixed to each pallet with a USDA-approved healed, non-serious, blossom-end Diamond, Johnny’s Delight, May Jim, or growth cracks: Provided further, That May Kist variety nectarines unless: pallet tag, in addition to the lot stamp numbers and other required information during the period April 1 through * * * * * on cards on the individual containers. November 23, 2000, any handler may (4) Any package or container of Arctic 6. Section 917.442 is amended by: handle peaches if such peaches meet Glo, Arctic Rose, Arctic Star, Diamond ‘‘CA Utility’’ quality requirements. The Bright, Diamond Jewel, Juneglo, June a. Revising paragraphs (a)(3); and b. Revising paragraph (d) to read as term ‘‘CA Utility’’ means that not more Pearl, Kay Glo, Kay Sweet, May follows: than 40 percent of the peaches in any Diamond, May Grand, May Lion, Prima container meet or exceed the Diamond IV, Prima Diamond 13, Prince § 917.442 California peach container and requirements of the U.S. No. 1 grade, Jim, Red Delight, Red Glo, Rose pack regulation. except that when more than 30 percent Diamond, Royal Glo, Sparkling May, (a) * * * of the peaches in any container meet or Star Brite, White Sun, or Zee Grand (3) Each package or container of exceed the requirements of U.S. No. 1 variety nectarines unless: peaches, except for consumer packages grade, the additional 10 percent shall * * * * * in master containers and consumer have non-scoreable blemishes as (6) Any package or container of Alshir packages mailed directly to consumers, determined when applying the U.S. Red, Alta Red, Arctic Blaze, Arctic Gold, shall bear on one outside end clearly Standards for Grades of Peaches; and Arctic Jay, Arctic Pride, Arctic Queen, and legibly in plain sight and in plain that such peaches are mature and are: Arctic Snow (White Jewel), Arctic letters the words ‘‘U.S. Mature’’ or ‘‘US Sweet, August Glo, August Lion, August MAT’’ if such peaches are mature as * * * * * Red, August Snow, Autumn Delight, Big defined in the United States Standards (iv) * * *

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TABLE 1 TABLE 1ÐContinued Dated: March 16, 2000. Robert C. Keeney, Column B Column A Column A Column B Deputy Administrator, Fruit and Vegetable variety maturity maturity Programs. guide variety guide [FR Doc. 00–7086 Filed 3–21–00; 8:45 am] Amber Crest ...... G Sierra Lady ...... I BILLING CODE 3410±02±P Angelus ...... I Sparkle ...... I August Lady ...... L Springcrest ...... G Autumn Gem ...... I Spring Lady ...... H DEPARTMENT OF AGRICULTURE Autumn Lady ...... H Sugar Lady ...... J Autumn Rose ...... H Agricultural Marketing Service Blum's Beauty ...... G Summer Lady ...... L Summerset ...... I Cal Red ...... I 7 CFR Part 989 Carnival ...... I Suncrest ...... G Cassie ...... H Sweet Scarlet ...... J Coronet ...... E Topcrest ...... H [Docket No. FV00±989±1 FR] Crimson Lady ...... J Tra Zee ...... J Crown Princess ...... J Willie Red ...... G Raisins Produced From Grapes Grown David Sun ...... I Zee Lady ...... L in California; Changes in Reporting Diamond Princess ...... J Requirements Earli Rich ...... H Early Delight ...... H Note: Consult with the Federal or Federal- AGENCY: Agricultural Marketing Service, Early Elegant Lady ...... L State Inspection Service Supervisor for the USDA. Early May Crest ...... H maturity guides applicable to the varieties ACTION: Final rule. Early O'Henry ...... I not listed above. Early Top ...... G SUMMARY: This rule changes the Elberta ...... B * * * * * Elegant Lady ...... L reporting requirements specified under Fairtime ...... G (5) Any package or container of the administrative rules and regulations Fancy Lady ...... J Babcock, Brittany Lane, Crimson Lady, of the Federal marketing order for Fay Elberta ...... C Crown Princess, David Sun, Early May California raisins (order). The order Fire Red ...... I Crest, Flavorcrest, June Lady, Kern Sun, regulates the handling of raisins First Lady ...... D May Crest, May Sun, Merrill Gemfree, produced from grapes grown in Flamecrest ...... I Pink Rose, Prima Peach IV, Queencrest, California and is administered locally Flavorcrest ...... G Flavor Queen ...... H Ray Crest, Redtop, Rich May, Rich Mike, by the Raisin Administrative Committee Flavor Red ...... G Snow Brite, Snow Prince, Springcrest, (Committee). This rule makes minor Franciscan ...... G Spring Lady, Spring Snow, Sugar May, changes to two reports submitted by Goldcrest ...... H Sweet Scarlet, White Dream, Zee handlers regarding the receipt and Honey Red ...... G Diamond, 012–094, or 172LE White disposition of non-California raisins John Henry ...... J Peach (Crimson Snow/Sunny Snow) (raisins produced from grapes grown July Elberta ...... C variety of peaches unless: outside California). These changes will June Lady ...... G reduce the reporting burden on handlers June Pride ...... J * * * * * and provide the Committee with better Kern Sun ...... H (6) Any package or container of Kingscrest ...... H information on non-California raisins. Kings Lady ...... I Amber Crest, August Lady, Autumn EFFECTIVE DATE: August 1, 2000. Flame, Autumn Lady, Autumn Rose, Cal Kings Red ...... I FOR FURTHER INFORMATION CONTACT: Red, Carnival, Cassie, Champagne, Lacey ...... I Maureen T. Pello, Marketing Specialist, Lady Sue ...... L Country Sweet, Diamond Princess, Earli Late Ito Red ...... L California Marketing Field Office, Rich, Early Elegant Lady, Early O’Henry, Marketing Order Administration May Crest ...... G Elegant Lady, Fairtime, Fancy Lady, Fay May Sun ...... I Branch, Fruit and Vegetable Programs, Merrill Gem ...... G Elberta, Flamecrest, Full Moon, John AMS, USDA, 2202 Monterey Street, Merrill Gemfree ...... G Henry, June Pride, Kaweah, Kings Lady, suite 102B, Fresno, California 93721; O'Henry ...... I Lacey, Late Ito Red, Late September telephone: (559) 487–5901, Fax: (559) Pacifica ...... G Snow, Madonna Sun, Morning Lord, 487–5906; or George Kelhart, Technical Prima Gattie 8 ...... L N117, O’Henry, Prima Gattie, Prima Advisor, Marketing Order Queencrest ...... G Peach 13, Prima Peach 20, Prima Peach Administration Branch, Fruit and Ray Crest ...... G 23, Queen Lady, Red Dancer, Red Sun, Red Dancer (Red Boy) ...... I Vegetable Programs, AMS, USDA, room Redhaven ...... G Rich Lady, Royal Lady, Ryan Sun, 2525–S, P.O. Box 96456, Washington, Red Lady ...... G Saturn (Donut), Scarlet Snow, DC 20090–6456; telephone: (202) 720– Redtop ...... G September Snow, September Sun, Sierra 2491, or Fax: (202) 720–5698. Regina ...... G Gem, Sierra Lady, Snow Blaze, Snow Small businesses may request Rich Lady ...... J Giant, Snow King, Sprague Last Chance, information on complying with this Rich May ...... H Sugar Giant, Sugar Lady, Summer Lady, regulation by contacting Jay Guerber, Rich Mike ...... H Marketing Order Administration Rio Oso Gem ...... I Summer Sweet, Summer Zee, Suncrest, Royal Lady ...... J Sweet Kay, Sweet September, Tra Zee, Branch, Fruit and Vegetable Programs, Royal May ...... G Vista, White Lady, Yukon King, or Zee AMS, USDA, P.O. Box 96456, room Ruby May ...... H Lady variety of peaches unless: 2525–S, Washington, DC 20090–6456; telephone: (202) 720–2491, Fax: (202) Ryan Sun ...... I * * * * * September Sun ...... I 720–5698, or E-mail: Sierra Crest ...... H [email protected].

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SUPPLEMENTARY INFORMATION: This final its powers and perform its duties. due to the Committee on the eighth day rule is issued under Marketing Handlers are required to submit various of each month. Currently, handlers must Agreement and Order No. 989 (7 CFR reports regarding California raisins, report whether such raisins were part 989), both as amended, regulating including receipts, disposition, transfers disposed of in cartons, bags, or as bulk the handling of raisins produced from to other handlers, and the like. This raisins. However, Committee staff has grapes grown in California, hereinafter information is used by the Committee in not found these categories useful in referred to as the ‘‘order.’’ The order is making various program decisions such tracking non-California raisins. Thus, effective under the Agricultural as those regarding volume regulation the Committee recommended Marketing Agreement Act of 1937, as and the handler assessment rate for eliminating this requirement. amended (7 U.S.C. 601–674), hereinafter funding program activities. In addition, the Committee referred to as the ‘‘Act.’’ In addition, § 989.173 requires recommended adding the requirement The Department of Agriculture handlers to report to the Committee that handlers report the area of origin (Department) is issuing this rule in their receipt and disposition of raisins (country or state) of non-California conformance with Executive Order produced from grapes grown outside the raisins on the disposition report. Area of 12866. State of California. Authority to collect origin will help Committee staff match This final rule has been reviewed information on raisins other than those the disposition reports with the receipt under Executive Order 12988, Civil produced in California was added to the reports, which already ask for area of Justice Reform. This rule is not intended regulations in 1990 to help ensure that origin. The Committee will thus be to have retroactive effect. This rule will only California raisins are used in better able to track the inventory of non- not preempt any State or local laws, various programs operated under the California raisins. regulations, or policies, unless they order. These minor changes recommended present an irreconcilable conflict with For example, an export program is by the Committee will reduce the this rule. authorized under the order to promote reporting burden on handlers receiving The Act provides that administrative the sale of California raisins in export and disposing of non-California raisins. proceedings must be exhausted before markets. This program is usually in Requiring handlers to report on their parties may file suit in court. Under effect when volume regulation is disposition form the origin of non- section 608c(15)(A) of the Act, any implemented under the order. When California raisins will allow the handler subject to an order may file volume regulation is in effect, a certain Committee to better track the inventory with the Secretary a petition stating that percentage of the crop may be sold by of such raisins. Accordingly, the order, any provision of the order, or handlers to any market (free tonnage) appropriate changes are made to any obligation imposed in connection while the remaining percentage must be paragraphs (b)(7) and (c)(3)(iv) of with the order is not in accordance with held by handlers in a reserve pool (or § 989.173. law and request a modification of the reserve) for the account of the Final Regulatory Flexibility Analysis order or to be exempted therefrom. A Committee. Under the export program, and the Paperwork Reduction Act handler is afforded the opportunity for handlers may receive raisins, at a a hearing on the petition. After the reduced price, or cash back from the Pursuant to requirements set forth in hearing, the Secretary would rule on the reserve pool to blend down the cost of the Regulatory Flexibility Act (RFA), the petition. The Act provides that the the exported raisins, allowing handlers Agricultural Marketing Service (AMS) district court of the United States in any to be price competitive in export has considered the economic impact of district in which the handler is an markets (prices in export markets are this action on small entities. inhabitant, or has his or her principal generally lower than the domestic Accordingly, AMS has prepared this place of business, has jurisdiction in market). The Committee wants to ensure final regulatory flexibility analysis. equity to review the Secretary’s ruling that only California raisins are utilized The purpose of the RFA is to fit on the petition, provided an action is in this program. regulatory actions to the scale of filed not later than 20 days after the date Paragraph (b)(7) of § 989.173 requires business subject to such actions in order of the entry of the ruling. handlers to report receipts of non- that small businesses will not be unduly This final rule changes the reporting California raisins. This information is or disproportionately burdened. requirements specified under the order. reported on Form No. 500 and is due to Marketing orders issued pursuant to the This rule makes minor modifications to the Committee on the eighth day of each Act, and rules issued thereunder, are two reports submitted by handlers month. Currently, handlers must unique in that they are brought about regarding the receipt and disposition of categorize the net weight (pounds) of through group action of essentially non-California raisins. The Committee such raisins received as either natural small entities acting on their own collects these reports to track non- condition (raw product) or packed behalf. Thus, both statutes have small California raisins and help ensure that (processed raisins) for the current entity orientation and compatibility. only California raisins are used in month as well as a cumulative quantity There are approximately 20 handlers programs authorized under the order. from August 1, the beginning of the crop of California raisins who are subject to These changes reduce the reporting year. regulation under the order and burden on handlers and provide the The Committee recommended that approximately 4,500 raisin producers in Committee with better information on such receipts not be categorized as the regulated area. Small agricultural non-California raisins. This action was natural condition or packed. This service firms have been defined by the unanimously recommended by the information is contained within other Small Business Administration (13 CFR Committee at a meeting on November supporting documentation that handlers 121.201) as those having annual receipts 10, 1999. must also submit with their receipt of less than $5,000,000, and small Section 989.73(d) of the order report. Thus, the Committee would like agricultural producers are defined as provides authority for the Committee, to eliminate this duplication. those having annual receipts of less than with the approval of the Secretary, to Paragraph (c)(3) of § 989.173 requires $500,000. Thirteen of the 20 handlers request handlers to furnish to the handlers to report the disposition of subject to regulation have annual sales Committee such other information as non-California raisins. This information estimated to be at least $5,000,000, and may be necessary to enable it to exercise is reported on Form No. 501 and is also the remaining 7 handlers have sales less

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00013 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15216 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations than $5,000,000, excluding receipts In addition, the Committee held an cumulative quantity from August 1; and from any other sources. No more than 7 Administrative Issues Subcommittee the state or country where the raisins handlers, and a majority of producers, of meeting on November 9, 1999, where were produced. * * * California raisins may be classified as this issue was deliberated. This meeting (c) * * * small entities. and the Committee’s meeting on (3) * * * This final rule changes the reporting November 10, 1999, were public (iv) The area of origin (state or requirements specified in paragraphs (b) meetings widely publicized throughout country) of the raisins shipped. and (c) of § 989.173 regarding the the raisin industry. All interested * * * * * receipt and disposition, respectively, of persons were invited to attend the Dated: March 16, 2000. raisins produced from grapes grown meetings and participate in the outside the State of California. Handlers industry’s deliberations. Robert C. Keeney, will no longer have to report to the A proposed rule concerning this Deputy Administrator, Fruit and Vegetable Committee whether such raisins were action was published in the Federal Programs. received as natural condition or packed Register on December 10, 1999 (64 FR [FR Doc. 00–7084 Filed 3–21–00; 8:45 am] raisins, nor will handlers have to report 69204). Copies of the rule were mailed BILLING CODE 3410±02±P whether such raisins were disposed of by the Committee staff to all Committee in cartons, bags or as bulk raisins. members and alternates, the Raisin Handlers will have to report additional Bargaining Association, handlers, and DEPARTMENT OF AGRICULTURE information, specifically, the area of dehydrators. In addition, the rule was Animal and Plant Health Inspection origin (country or state) of such raisins made available through the Internet by Service on their disposition reports. Authority the Office of the Federal Register. That for these changes is provided in rule provided for a 60-day comment 9 CFR Parts 74 and 93 § 989.73(d) of the order. period which ended February 8, 2000. Regarding the impact of this action on No comments were received. [Docket No. 00±016±1] affected entities, this action will reduce, A small business guide on complying in the aggregate, the reporting and with fruit, vegetable, and specialty crop Importation and Interstate Movement recordkeeping burden on handlers who marketing agreements and orders may of Certain Land Tortoises receive and dispose of non-California be viewed at the following web site: raisins. The Committee estimates that 11 http://www.ams.usda.gov/fv/ AGENCY: Animal and Plant Health handlers receive and dispose of non- moab.html. Any questions about the Inspection Service, USDA. California raisins each year. It is compliance guide should be sent to Jay ACTION: Interim rule and request for estimated that it will take each handler Guerber at the previously mentioned comments. about 4 minutes to complete each address in the FOR FURTHER INFORMATION revised receipt report (1 minute less CONTACT section. SUMMARY: We are prohibiting, until than that required for the current receipt After consideration of all relevant further notice, the importation into the report). The total annual burden for matter presented, including the United States of certain land tortoises. such receipt reports will be reduced information and recommendation We are also prohibiting, until further from 11 hours to about 8.8 hours. submitted by the Committee and other notice, the interstate movement of these Furthermore, it is estimated that it will available information, it is hereby found land tortoises. These actions are take each handler about 5 minutes to that this rule, as hereinafter set forth, necessary to prevent the introduction complete each revised disposition will tend to effectuate the declared and spread of exotic ticks known to be report (the same as required for the policy of the Act. vectors of heartwater disease, an acute current disposition report). The total infectious disease of ruminants. These annual burden for such disposition List of Subjects in 7 CFR Part 989 actions will provide protection against reports will remain at about 11 hours. Grapes, Marketing agreements, an outbreak of heartwater disease in In accordance with the Paperwork Raisins, Reporting and recordkeeping domestic and wild populations of Reduction Act of 1995 (44 U.S.C. requirements. ruminants in the United States. Chapter 35), the information collection For the reasons set forth in the DATES: This interim rule is effective requirements contained in this final rule preamble, 7 CFR part 989 is amended as March 22, 2000. However, this rule does have been approved by the Office of follows: not apply to importations that are en Management and Budget. Existing route to the United States. We invite requirements have been assigned OMB PART 989ÐRAISINS PRODUCED you to comment on this docket. We will No. 0581–0178. As with other similar FROM GRAPES GROWN IN consider all comments that we receive marketing order programs, reports and CALIFORNIA by May 22, 2000. forms are periodically reviewed to reduce information requirements and 1. The authority citation for 7 CFR ADDRESSES: Please send your comment duplication by industry and public part 989 continues to read as follows: and three copies to: Docket No. 00–016– 1, Regulatory Analysis and sector agencies. Finally, the Department Authority: 7 U.S.C. 601–674. Development, PPD, APHIS, Suite 3C03, has not identified any relevant Federal 2. In § 989.173, the second sentence in rules that duplicate, overlap or conflict 4700 River Road, Unit 118, Riverdale, paragraph (b)(7) and paragraph (c)(3)(iv) MD 20737–1238. with this rule. are revised to read as follows: An alternative to this action would be Please state that your comment refers to to not make the recommended reporting § 989.173 Reports. Docket No. 00–016–1. changes. However, the Committee * * * * * You may read any comments that we determined that it was best to proceed (b) * * * receive on this docket in our reading with its recommendation to reduce the (7) * * * This report shall include: room. The reading room is located in reporting burden on handlers and obtain The varietal type of raisins received; the room 1141 of the USDA South Building, better information on tracking non- net weight (pounds) of raisins received 14th Street and Independence Avenue, California raisins. for the current month as well as a SW., Washington, DC. Normal reading

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00014 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15217 room hours are 8 a.m. to 4:30 p.m., disease. Heartwater disease is an acute we find good cause under 5 U.S.C. 553 Monday through Friday, except infectious disease of ruminants, to make this action effective less than 30 holidays. To be sure someone is there to including cattle, sheep, goats, white- days after publication. We will consider help you, please call (202) 690–2817 tailed deer, and antelope. This disease comments that are received within 60 before coming. has a 60 percent or greater mortality rate days of publication of this rule in the APHIS documents published in the in livestock and a 90 percent or greater Federal Register. After the comment Federal Register, and related mortality rate in white-tailed deer. period closes, we will publish another information, including the names of In December 1999, it was reported document in the Federal Register. The organizations and individuals who have that evidence indicating the presence of document will include a discussion of commented on APHIS dockets, are nucleic acid from the causative agent of any comments we receive and any available on the Internet at http:// heartwater disease or a related agent amendments we are making to the rule www.aphis.usda.gov/ppd/rad/ might have been present in Amblyomma as a result of the comments. webrepor.html. sparsum collected from leopard tortoises imported into Florida. Executive Order 12866 and Regulatory FOR FURTHER INFORMATION CONTACT: Dr. Subsequently, in February 2000, leopard Flexibility Act D. D. Wilson, Senior Staff Entomologist, tortoises from premises known to be Emergency Programs, VS, APHIS, 4700 This rule has been reviewed under infested with the African tortoise tick River Road Unit 41, Riverdale, MD Executive Order 12866. The rule has were moved interstate to noninfested 20737–1231; (301) 734–8073. been determined to be not significant for premises. Though these incidents the purposes of Executive Order 12866 SUPPLEMENTARY INFORMATION: involve only leopard tortoises, we are and, therefore, has not been reviewed by Background also prohibiting the importation and the Office of Management and Budget. interstate movement of African spurred The regulations in 9 CFR part 93 This emergency situation makes tortoise and Bell’s hingeback tortoise timely compliance with section 604 of (referred to below as the animal import because interception records from 1995– regulations) prohibit or restrict the the Regulatory Flexibility Act (5 U.S.C. 1999 report that 90 percent of the 601 et seq.) impracticable. We are importation of certain animals and birds tropical bont ticks, African tortoise into the United States to prevent the currently assessing the potential ticks, and ticks of the species economic effects of this action on small introduction of communicable diseases Amblyomma sparsum found on reptiles of livestock and poultry. The regulations entities. Based on that assessment, we entering the United States occurred on will either certify that the rule will not in 9 CFR chapter I, subchapter C these three species of land tortoise. (referred to below as the interstate have a significant economic impact on We are working to establish effective a substantial number of small entities or movement regulations), prohibit or treatment and biosecurity protocols for restrict the interstate movement of publish a final regulatory flexibility tortoises and other reptiles. Effective analysis. certain animals and birds to prevent the treatment and biosecurity protocols will spread of communicable diseases of allow us to ensure that all tortoises and Executive Order 12372 livestock and poultry within the United other reptiles entering the United States, This program/activity is listed in the States. as well as tortoises and other reptiles We are amending the animal import Catalog of Federal Domestic Assistance already in the United States, can be under No. 10.025 and is subject to regulations to prohibit, until further effectively treated for exotic ticks and notice, the importation of the following Executive Order 12372, which requires that all exotic ticks can be eradicated intergovernmental consultation with tortoises into the United States: All from infested premises. When we have species and subspecies of leopard State and local officials. (See 7 CFR part established such protocols, and when 3015, subpart V.) tortoise (Geochelone pardalis), African tortoises and other reptiles already in spurred tortoise (Geochelone sulcata), the United States have been effectively Executive Order 12988 and Bell’s hingeback tortoise (Kinixys treated for exotic ticks and all exotic This rule has been reviewed under belliana). Tortoises that are en route to ticks eradicated from infested premises, Executive Order 12988, Civil Justice the United States at the time of the the ban on importation of these tortoises Reform. publication of this interim rule will be from Africa, as well as the ban on This rule: (1) Preempts all State and allowed to be imported for interstate movement of these tortoises, humanitarian reasons. Refusing entry of local laws and regulations that are will be lifted. Until that time, however, inconsistent with this rule; (2) Has no tortoises already en route to the United these actions will provide protection States upon publication of the rule retroactive effect; and (3) Does not against an outbreak of heartwater require administrative proceedings would be detrimental to the health of disease in domestic and wild the tortoises and could be fatal. before parties may file suit in court populations of ruminants in the United challenging this rule. In addition, we are amending the States. interstate movement regulations to Paperwork Reduction Act prohibit, until further notice, the Emergency Action This interim rule contains no interstate movement of all species and The Administrator of the Animal and information collection or recordkeeping subspecies of these land tortoises. Plant Health Inspection Service has requirements under the Paperwork These actions are necessary because determined that an emergency exists Reduction Act of 1995 (44 U.S.C. 3501 these tortoises, which are regularly that warrants publication of this interim et seq.). imported into the United States and are rule without prior opportunity for common in the U.S. pet trade, have been public comment. Immediate action is List of Subjects found to harbor the tropical bont tick necessary to prevent an outbreak of 9 CFR Part 74 (Amblyomma variegatum), the African heartwater disease in the United States. tortoise tick (Amblyomma marmoreum), Because prior notice and other public Animal diseases, Livestock, and ticks of the species Amblyomma procedures with respect to this action Quarantine, Reporting and sparsum. All of these exotic ticks are are impracticable and contrary to the recordkeeping requirements, known to be vectors of heartwater public interest under these conditions, Transportation.

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9 CFR Part 93 ACTION: Final rule; amendment of Policy). The Enforcement Policy sets Animal diseases, Imports, Livestock, enforcement policy statement and forth the general framework through Poultry and poultry products, confirmation of interim rule. which DOE would seek to enforce compliance with DOE’s nuclear safety Quarantine, Reporting and SUMMARY: The Department of Energy recordkeeping requirements. rules, regulations and orders by a DOE (DOE) is amending its General contractor, subcontractor, or a supplier Accordingly, we are amending 9 CFR Statement of Enforcement Policy, which (hereinafter referred to collectively as chapter I as follows: is in an Appendix to the Procedural ‘‘contractor’’). Following that 1. In subchapter C, a new part 74 is Rules for DOE Nuclear Activities, to promulgation, DOE amended the added to read as follows: state that DOE may use information Enforcement Policy with an opportunity collected by DOE and the Department of for comment. 62 FR 52479 (Oct. 8, PART 74ÐPROHIBITION OF Labor (DOL) concerning whistleblower 1997). No comments were received and INTERSTATE MOVEMENT OF LAND proceedings as a basis for enforcement the amendments are made final today. TORTOISES actions and civil penalties under the DOE’s whistleblower regulations, 10 Sec. Procedural Rules for DOE Nuclear CFR part 708 (Department of Energy 74.1 General prohibition. Activities if the retaliation against DOE Contractor Employee Protection contractor employees relates to matters Program) (Part 708), establish Authority: 21 U.S.C. 111–113, 114a, 115, 117, 120, 122–126, 134b, 134f; 7 CFR 2.22, of nuclear safety in connection with a requirements prohibiting retaliation 2.80, and 371.2(d). DOE nuclear activity. DOE also confirms against DOE contractor employees who the interim amendments to the have undertaken certain whistleblower § 74.1 General prohibition. enforcement policy statement published actions. DOE’s Office of Hearings and The interstate movement of leopard October 8, 1997. Appeals (OHA) has responsibility for tortoise (Geochelone pardalis), African DATES: This amended Policy and resolution of whistleblower complaints spurred tortoise (Geochelone sulcata), confirmation of the interim rule under Part 708. The regulations provide and Bell’s hingeback tortoise (Kinixys published October 8, 1997 as final takes criteria and procedures to protect belliana) is prohibited. effect on April 21, 2000. employees of DOE contractors who believe they have suffered retaliation for FOR FURTHER INFORMATION CONTACT: PART 93ÐIMPORTATION OF CERTAIN Keith Christopher, U. S. Department of disclosing information concerning ANIMALS, BIRDS, AND POULTRY, danger to public health or safety, Energy, Office of Investigation and AND CERTAIN ANIMAL, BIRD, AND substantial violations of law, fraud or Enforcement, EH–10, 19901 POULTRY PRODUCTS; gross mismanagement; for participating Germantown Road, Germantown, MD REQUIREMENTS FOR MEANS OF in congressional proceedings; or for 20874 (301) 903–0100. CONVEYANCE AND SHIPPING refusing to participate in dangerous Ben McRae, U. S. Department of Energy, CONTAINERS activities. If an act of retaliation has Office of General Counsel, GC–52, occurred, OHA may order 1000 Independence Avenue, SW, 2. The authority citation for part 93 reinstatement, transfer preference, back Washington, DC 20585 (202) 586– continues to read as follows: pay, reimbursements of costs and 6975. Authority: 7 U.S.C. 1622; 19 U.S.C. 1306; expenses, or other remedies necessary to 21 U.S.C. 102–105, 111, 114a, 134a, 134b, SUPPLEMENTARY INFORMATION: abate the violation. 10 CFR part 708, 57 134c, 134d, 134f, 136, and 136a; 31 U.S.C. I. Background FR 7533 (final March 3,1992), 61 FR 9701; 7 CFR 2.22, 2.80, and 371.2(d). II. Basis for Amendment of Enforcement 55230 (notice Oct. 25, 1996), 64 FR 3. In § 93.701, a new paragraph (c) is Policy 12862 (interim final March 15, 1999), 64 added to read as follows: III. Procedural Requirements FR 37396 (interim final rule and A. Review Under Executive Order 12866 amendment July 12, 1999), 65 FR 6314 § 93.701 Prohibitions. B. Review Under the Regulatory Flexibility (final Feb. 9, 2000), 65 FR 9201 * * * * * Act (correction Feb. 24, 2000). (c) No person may import leopard C. Review Under the Paperwork Reduction In late 1992, Congress amended the tortoise (Geochelone pardalis), African Act Energy Reorganization Act, 42 U.S.C. D. Review Under the National spurred tortoise (Geochelone sulcata), or Environmental Policy Act 5801, et seq. (ERA), to prohibit any Bell’s hingeback tortoise (Kinixys E. Review Under Executive Order 13132 employer, including a DOE contractor belliana) into the United States. F. Review Under Executive Order 12988 indemnified under section 170.d. of the Done in Washington, DC, this 16th day of G. Review Under the Unfunded Mandates Atomic Energy Act of 1954, as amended, March 2000. Reform Act of 1995 42 U.S.C. 2011, et seq. (AEA), from Bobby R. Acord, H. Congressional Notification discriminating against any employee with respect to his or her compensation, Acting Administrator, Animal and Plant I. Background Health Inspection Service. terms, conditions or privileges of The Department of Energy (DOE) has employment because the employee [FR Doc. 00–7014 Filed 3–21–00; 8:45 am] adopted procedural rules in 10 CFR part assisted or participated, or is about to BILLING CODE 3410±34±U 820 (Part 820) to provide for the assist or participate in any manner, in enforcement of violations of DOE any action to carry out the purposes of Nuclear Safety Requirements for which the ERA or the AEA. 42 U.S.C. 5851 DEPARTMENT OF ENERGY civil and criminal penalties can be (ERA Sec. 211). The Department of imposed under the Price-Anderson Labor (DOL) has the responsibility 10 CFR Part 820 Amendments Act of 1988 (Pub. L. 100– under Sec. 211 to investigate employee Procedural Rules for DOE Nuclear 408, August 20, 1988) (PAAA). 56 FR complaints of discrimination and may, Activities; General Statement of 64290 (proposed Dec. 9, 1991), 58 FR after an investigation and opportunity Enforcement Policy 43680 (final Aug. 17, 1993). Appended for hearing, order a violator to take to the rule is a General Statement of affirmative action to abate the violation, AGENCY: Department of Energy. Enforcement Policy (Enforcement reinstate the complainant to his or her

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00016 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15219 former position with back pay, and could result in civil penalties, the DOL management involved in the alleged award compensatory damages, whistleblower proceedings were not an retaliation and the specificity of the acts including attorney fees. 29 CFR part 24, alternative to Part 708. Accordingly, the of retaliation. 59 FR 12506 (proposed March 16, 1994), Clarification did not indicate that Normally, the Director will await the 63 FR 6614 (final Feb. 9, 1998). information collected by DOL in a completion of the DOL or OHA Before Part 820 was finalized and whistleblower proceeding could be used investigation and related deliberative before § 211 of the ERA was enacted, as the basis for issuance of a Preliminary processes before deciding whether to DOE published a Notice of Clarification Notice of Violation (PNOV) by DOE. take any enforcement action in order to (Clarification) of proposed Part 820 to Based on experience with DOL avoid duplication of investigative effort. clarify the intended scope of the proceedings since the Clarification, DOE A Part 708 or Sec. 211 proceeding proposed definition of ‘‘DOE Nuclear believes that DOL proceedings serve the would be considered completed when Safety Requirements’’ as a basis for civil same function as a Part 708 proceeding there is either a final decision or a penalties, and to clarify the relationship in determining whether a contractor has settlement of the retaliation complaint, between proposed Part 820 and Part retaliated against an employee. or no additional administrative action is 708. 57 FR 20796 (May 15, 1992). This DOE is therefore amending the available. In egregious cases outlined in Clarification established that the General Statement of Enforcement the Clarification and included in regulations prohibiting contractor Policy appended to Part 820 to provide paragraph 7 of Section XIII, DOE may retaliation in Part 708 could constitute that the Director of the Office of initiate an investigation and bring an DOE Nuclear Safety Requirements if the Investigation and Enforcement enforcement action before the other retaliation resulted from the employee’s (Director) may use information that DOL proceedings are completed. involvement in matters of nuclear safety collects in a § 211 proceeding as a basis It should be noted, however, that any in connection with a DOE nuclear for enforcement action under Part 820. enforcement action in which the activity. Such retaliation against DOE Specifically, the Director may use this Director cites a violation of the contractor employees would, therefore, information as the basis for initiating whistleblower regulations is separate be subject to the investigatory and enforcement action by issuing a PNOV. and distinct from violations arising from adjudicatory procedures of Part 820, and In determining whether to initiate the substantive nuclear safety rules in could lead to the imposition of civil action under Part 820 with respect to an 10 CFR part 830 (nuclear safety penalties under Part 820. alleged retaliation, the Director would management), 10 CFR part 835 review the report of the investigation, II. Basis for Amendment of (occupational radiation protection), and the adjudicative record, and any other Enforcement Policy 10 CFR 820.11 (information accuracy relevant material associated with the requirements). The Director may begin DOE’s 1992 Clarification indicated proceeding to determine if an adequate investigations of noncompliances of that the provisions of the DOE basis exists to issue a PNOV. these nuclear safety rules at any time whistleblower rule in Part 708 could The Director may also use DOL based on the underlying nuclear safety constitute DOE Nuclear Safety information to support the concerns raised by the employee Requirements. DOE imposed an determination that a contractor has regardless of the status of any related affirmative duty on DOE contractors to violated or is continuing to violate the whistleblower retaliation proceedings. protect the public, workers, and the nuclear safety requirements against environment in matters of nuclear safety contractor retaliation and to issue civil III. Procedural Requirements relating to DOE nuclear activities by penalties or other appropriate remedy in A. Review Under Executive Order 12866 subjecting the contractors to a Final Notice of Violation (FNOV). 10 enforcement for retaliation against CFR 820.24–820.25. Today’s regulatory action has been contractor employees. In particular, if The Director will have discretion to determined not to be ‘‘a significant DOE found that a contractor retaliated give appropriate weight to information regulatory action’’ under Executive in response to a worker raising or collected in DOL and in OHA Order 12866, ‘‘Regulatory Planning and disclosing legitimate nuclear safety- investigations and proceedings. In Review,’’ (58 FR 51735, Oct. 4, 1993). related information or concerns, the deciding whether additional Accordingly, this action was not subject Clarification stated that a violation of investigation or information is needed, to review under that Executive Order by Part 820 could exist. 57 FR at 20797, 58 the Director will consider the extent to the Office of Information and Regulatory FR at 43681. which the facts in the proceedings have Affairs of the Office of Management and Any deterrent to the flow of that been adjudicated as well as any Budget (OMB). information can potentially constitute a information presented by the contractor. B. Review Under the Regulatory violation of DOE Nuclear Safety DOE has a policy of encouraging its Flexibility Act Requirements that are imposed through contractors to cooperate in resolving the DOE whistleblower protection whistleblower complaints raised by The Regulatory Flexibility Act of 1980 provisions. This is consistent with the contractor employees. Accordingly, in (5 U.S.C. 601 et seq.) requires NRC enforcement policy, which subjects deciding whether to initiate an preparation of an initial regulatory licensees to possible civil penalties if enforcement action, the Director will flexibility analysis for any rule that by they discriminate against employees take into account the extent to which a law must be proposed for public raising safety issues or otherwise contractor cooperated in a Part 708 or comment, unless the agency certifies engaging in protected whistleblower § 211 proceeding, and, in particular, that the rule will not have a ‘‘significant activities under the ERA or the AEA. whether the contractor resolved the economic impact on a substantial See, e.g., 10 CFR 50.7, 58 FR 52410 (Oct. matter promptly without the need for an number of small entities.’’ DOE is not 8, 1993), 60 FR 24551 (amended May 9, adjudication proceeding. required by the Administrative 1995), 61 FR 6765 (amended Feb. 22, In considering whether to initiate an Procedures Act (5 U.S.C. 553) or any 1996). enforcement action and, if so, what other law to propose this policy When DOE put its contractors on remedy is appropriate, the Director will statement for public comment. notice in 1992 that a violation of the also consider the egregiousness of the Accordingly, the Regulatory Flexibility whistleblower provisions of Part 708 particular case including the level of Act requirements do not apply to this

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00017 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15220 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations rulemaking, and no regulatory flexibility 1996), imposes on Federal agencies the contain any federal mandate, so these analysis has been prepared. general duty to adhere to the following requirements do not apply. requirements: (1) Eliminate drafting C. Review Under the Paperwork H. Congressional Notification errors and ambiguity; (2) write Reduction Act regulations to minimize litigation; and As required by 5 U.S.C. 801, DOE will No additional information or record (3) provide a clear legal standard for report to Congress promulgation of this keeping requirements are imposed by affected conduct rather than a general policy statement amendment prior to its this policy statement. Accordingly, no standard and promote simplification effective date. The report will state that OMB clearance is required under the and burden reduction. With regard to it has been determined that the Paperwork Reduction Act (44 U.S.C. the review required by section 3(a), amendment is not a ‘‘major rule’’ as 3501 et seq.). section 3(b) of Executive Order 12988 defined by 5 U.S.C. 804(2). D. Review Under the National specifically requires that Executive List of Subjects 10 CFR Part 820 Environmental Policy Act agencies make every reasonable effort to ensure that the regulation: (1) Clearly Government contracts, Nuclear safety, The Department determined that this specifies the preemptive effect, if any; Whistleblowing policy statement is not a major federal (2) clearly specifies any effect on Issued in Washington, DC, on March 14, action significantly affecting the quality existing Federal law or regulation; (3) 2000. of the human environment within the provides a clear legal standard for David Michaels, meaning of the National Environmental affected conduct while promoting Assistant Secretary for Environment, Safety Policy Act (NEPA), 42 U.S.C. 4321 et simplification and burden reduction; (4) and Health. seq., and does not require preparation of specifies the retroactive effect, if any; (5) For the reason set forth in the an environmental impact statement or adequately defines key terms; and (6) preamble, Part 820 of Title 10 of the an environmental assessment. This addresses other important issues Code of Federal Regulations is amended policy statement amendment clarifies affecting clarity and general as set forth below: that DOE may use information generated draftsmanship under any guidelines in certain whistleblower proceedings issued by the Attorney General. Section PART 820ÐPROCEDURAL RULES involving DOE contractor employees as 3(c) of Executive Order 12988 requires FOR DOE NUCLEAR ACTIVITIES the basis for enforcement under Executive agencies to review regulations procedures applicable to DOE Nuclear 1. The authority citation for Part 820 in light of applicable standards in continues to read as follows: Safety Requirements. This action is section 3(a) and section 3(b) to covered under the Categorical Exclusion determine whether they are met or it is Authority: 42 U.S.C. 2201, 2282(a), 7191; found at paragraph A.5. of Appendix A unreasonable to meet one or more of 28 U.S.C. 2461 note. to Subpart D, 10 CFR part 1021, which them. DOE has completed the required 2. Appendix A to Part 820 as applies to rulemakings that do not review and determined that, to the amended on October 8, 1997 (62 FR change the environmental effect of the extent permitted by law, this policy 52479), is adopted as final without rule being amended. statement meets the relevant standards change. E. Review Under Executive Order 13132 of Executive Order 12988. 3. Appendix A to Part 820 is amended by adding a new Section XIII to read as Executive Order 13132 (64 FR 43255, G. Review Under the Unfunded follows: Aug. 10, 1999) requires agencies to Mandates Reform Act of 1995 develop an accountable process to Appendix A to Part 820—General Statement ensure meaningful and timely input by Title II of the Unfunded Mandates of Enforcement Policy State and local officials in the Reform Act of 1995 (Pub. L. 104–4) * * * * * requires each federal agency to prepare development of regulatory policies that XIII. Whistleblower Enforcement Policy have federalism implications. ‘‘Policies a written assessment of the effects of a. DOE contractors may not retaliate that have federalism implications’’ is any federal mandate in a proposed or final agency rule that may result in the against any employee because the employee defined in the Executive Order to has disclosed information, participated in include regulations that have substantial expenditure by State, local, and tribal activities or refused to participate in direct effects on the States, on the governments, in the aggregate, or by the activities listed in 10 CFR 708.5 (a)–(c) as relationship between the national private sector, of $100 million in any provided by 10 CFR 708.43. DOE contractor government and the States, or on the one year. The Act also requires a federal employees may seek remedial relief for distribution of power and agency to develop an effective process allegations of retaliation from the DOE Office responsibilities among the various to permit timely input by elected of Hearings and Appeals (OHA) under 10 CFR part 708 (Part 708) or from the levels of government. This amendment officers of State, local, and tribal governments on a proposed ‘‘significant Department of Labor (DOL) under sec. 211 of of DOE’s enforcement policy would not the Energy Reorganization Act (sec. 211), have a substantial direct effect on the intergovernmental mandate,’’ and implemented in 29 CFR part 24. States, on the relationship between the requires an agency plan for giving notice b. An act of retaliation by a DOE national government and the States, or and opportunity to timely input to contractor, proscribed under 10 CFR 708.43, on the distribution of power and potentially affected small governments that results from a DOE contractor responsibilities among the various before establishing any requirements employee’s involvement in an activity listed levels of government. No further action that might significantly or uniquely in 10 CFR 708.5(a)–(c) concerning nuclear is required by Executive Order 13132. affect small governments. DOE’s safety in connection with a DOE nuclear intergovernmental consultation process activity, may constitute a violation of a DOE F. Review Under Executive Order 12988 under the Unfunded Mandates Reform Nuclear Safety Requirement under 10 CFR part 820 (Part 820). The retaliation may be With respect to the review of existing Act of 1995 is described in a statement subject to the investigatory and adjudicatory regulations and the promulgation of of policy published by the Office of procedures of both Part 820 and Part 708. new regulations, section 3(a) of General Counsel on March 18, 1997 (62 The same facts that support remedial relief to Executive Order 12988, ‘‘Civil Justice FR 12820). The policy statement employees under Part 708 may be used by Reform,’’ (61 FR 4729, February 7, amendment published today does not the Director of the Office of Investigation and

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Enforcement (Director) to support issuance of warrant criminal referrals to the U.S. file campaign finance reports and a Preliminary Notice of Violation (PNOV), a Department of Justice for prosecutorial statements under the Act to file copies Final Notice of Violation (FNOV), and review; and (2) cases where an alleged of these documents with the Secretary assessment of civil penalties. 10 CFR 820.24– retaliation suggests widespread, high-level of State, or the officer charged by state 820.25. managerial involvement and raises c. When an employee files a complaint significant public health and safety concerns. law with maintaining state election with DOL under sec. 211 and DOL collects j. When the Director undertakes an campaign reports, in each State where information relating to allegations of DOE investigation of an allegation of DOE contributions were received or contractor retaliation against a contractor contractor retaliation against an employee expenditures made on behalf of a employee for actions taken concerning under Part 820, the Director will apprise Federal candidate or candidates nuclear safety, the Director may use this persons interviewed and interested parties appearing on that State’s ballot. Under information as a basis for initiating that the investigative activity is being taken 2 U.S.C. 439(b), these officers must enforcement action by issuing a PNOV. 10 pursuant to the nuclear safety procedures of receive and maintain the documents for CFR 820.24. DOE may consider information Part 820 and not pursuant to the procedures two years after their date of receipt, and collected in the DOL proceedings to of Part 708. determine whether the retaliation may be k. At any time, the Director may begin an must make them available for public related to a contractor employee’s action investigation of a noncompliance of the inspection and copying during regular concerning a DOE nuclear activity. substantive nuclear safety rules based on the business hours. d. The Director may also use DOL underlying nuclear safety concerns raised by In 1995, Congress enacted 2 U.S.C. information to support the determination that the employee regardless of the status of 439(c), which exempts from these a contractor has violated or is continuing to completion of any related whistleblower receipt and maintenance requirements violate the nuclear safety requirements retaliation proceedings. The nuclear safety any State that the Commission against contractor retaliation and to issue rules include: 10 CFR part 830 (nuclear safety civil penalties or other appropriate remedy in determines to have in place a system management); 10 CFR part 835 (occupational that permits electronic access to and a FNOV. 10 CFR 820.25. radiation protection); and 10 CFR part 820.11 e. The Director will have discretion to give (information accuracy requirements). duplication of reports and statements appropriate weight to information collected that are filed with the Commission. Pub. in DOL and OHA investigations and [FR Doc. 00–6916 Filed 3–21–00; 8:45 am] L. 104–79, 109 Stat. 791, section 2. If the proceedings. In deciding whether additional BILLING CODE 6450±01±P Commission does not make this investigation or information is needed, the determination, the State remains Director will consider the extent to which the obligated to maintain copies of the facts in the proceedings have been FEDERAL ELECTION COMMISSION statements and disclosure reports that adjudicated as well as any information have been filed with it. These new rules presented by the contractor. In general, the 11 CFR Part 108 Director may initiate an enforcement action revise the Commission’s regulations at without additional investigation or [Notice 2000±4] 11 CFR Part 108 to reflect this statutory information. change. f. Normally, the Director will await the Filing Copies of Campaign Finance In September 1997, the Commission completion of a Part 708 proceeding before Reports and Statements With State published a Notice of Proposed OHA or a sec. 211 proceeding at DOL before Officers Rulemaking (‘‘NPRM’’) that proposed a deciding whether to take any action, number of revisions to the including an investigation under Part 820 AGENCY: Federal Election Commission. with respect to alleged retaliation. A Part 708 Commission’s recordkeeping and ACTION: Final rules; transmittal of reporting requirements, including those or sec. 211 proceeding would be considered regulations to Congress. completed when there is either a final addressed in this document, and decision or a settlement of the retaliation SUMMARY: The Federal Election corresponding changes to the relevant complaint, or no additional administrative Commission is revising its regulations disclosure forms. 62 FR 50708 (Sept. 26, action is available. that govern filing of campaign finance 1997). The Commission received three g. DOE encourages its contractors to written comments in response to the cooperate in resolving whistleblower reports with State officers and the duties of State officers concerning the reports. NPRM, two of which addressed the state complaints raised by contractor employees in filing issues: one from the Secretary of a prompt and equitable manner. Accordingly, The revisions implement amendments in deciding whether to initiate an to the Federal Election Campaign Act State of South Dakota, and one from enforcement action, the Director will take that exempt States meeting certain David S. Addington, Esq. In addition, into account the extent to which a contractor criteria from these requirements. the Internal Revenue Service submitted cooperated in a Part 708 or sec. 211 a comment in which it said that the DATES: Further action, including the proceeding, and, in particular, whether the proposed rules were not inconsistent announcement of an effective date, will contractor resolved the matter promptly with their regulations or the Internal be taken after these regulations have without the need for an adjudication hearing. Revenue Code. On February 11, 1998, been before Congress for 30 legislative h. In considering whether to initiate an the Commission held a public hearing days pursuant to 2 U.S.C. 438(d). A enforcement action and, if so, what remedy on the NPRM at which one witness is appropriate, the Director will also consider document announcing the effective date testified but did not discuss waivers of the egregiousness of the particular case will be published in the Federal state filing requirements. One further including the level of management involved Register. in the alleged retaliation and the specificity comment was submitted in response to of the acts of retaliation. FOR FURTHER INFORMATION CONTACT: Ms. the announcement of the hearing. i. In egregious cases, the Director has the Rosemary C. Smith, Assistant General The Commission has decided to discretion to proceed with an enforcement Counsel, or Ms. Rita A. Reimer, proceed separately with this portion of action, including an investigation with Attorney, 999 E Street, N.W., the rulemaking, both because these respect to alleged retaliation irrespective of Washington, D.C. 20463, (202) 694–1650 issues are more straightforward than the completion status of the Part 708 or sec. or toll free (800) 424–9530. 211 proceeding. Egregious cases would those addressed in other parts of the include: (1) Cases involving credible SUPPLEMENTARY INFORMATION: The NPRM, and because the Commission is allegations for willful or intentional Federal Election Campaign Act (‘‘FECA’’ in the process of granting waivers violations of DOE rules, regulations, orders or or the ‘‘Act’’), 2 U.S.C. 431 et seq., at 2 pursuant to section 439(c) to States that Federal statutes which, if proven, would U.S.C. 439(a) requires all persons who meet certain requirements.

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Section 438(d) of Title 2, United the system satisfies the above criteria, (between the States and the Federal States Code, requires that any rules or the Commission will so notify the State. government) whenever Congress deems regulations prescribed by the It will also publish this information in it expedient to alter or add to existing Commission to carry out the provisions the FEC Record, and place it on the regulations of the State’’ (emphasis of Title 2 of the United States Code be Commission’s web site. If a State fails to added)); Condon v. Reno, 913 F.Supp. transmitted to the Speaker of the House submit a such a certification, the 946 (D. S.C. 1995) (holding as valid of Representatives and the President of Commission will be unable to make the under the Elections Clause imposition the Senate 30 legislative days before requisite determination, and the State upon States of National Voter they are finally promulgated. These will remain subject to the section 439(a) Registration Act). regulations were transmitted to and (b) receipt and maintenance As explained above, the Commission Congress on March 17, 2000. requirements. A number of States have is not planning to force unwilling States already obtained waivers through this to seek exemptions from the records Explanation and Justification process, and further requests are receipt and maintenance requirements. Part 108—Filing Copies of Reports and pending. Rather, the Commission is granting Statements with State Officers Both commenters who addressed this waivers from these requirements only to issue objected to this portion of the those States that request them. Section 108.1 Filing Requirements proposed rule. They specifically Moreover, the Commission has actively Section 11 CFR 108.1, which sets out questioned the NPRM’s proposal to worked with the States to insure that the the general filing requirements for continue the obligation of a State to procedures to obtain a waiver are statements and reports, is being divided maintain duplicate reports if the reasonable and not unduly burdensome. into two paragraphs. Paragraph (a) Commission does not make the The Commission also considered generally follows the previous rule determination described above and, whether the new regulations would setting out the requirement for filing thus, the State does not meet the trigger the requirements of the with the appropriate State offices, and statutory requirements to be released Unfunded Mandates Reform Act of references the new statutory exception. from these duties. These commenters 1995, Pub. L. 104–4, 109 Stat. 48. See New paragraph (b) tracks the language asserted that the provision is 2 U.S.C. 658(1). That Act prohibits of 2 U.S.C. 439(c), stating that the filing unconstitutional because the Federal federal agencies from imposing costly requirements and duties of State officers Government cannot impose duties on new burdens on State governments under 11 CFR part 108 shall not apply State officers to execute Federal laws. unless certain procedures are followed. to a State if the Commission has Printz v. United States, 117 S. Ct. 2365, These include consulting State and local determined that the State maintains a 2384 (1997) (invalidating the Brady governments that would be affected by system that can electronically receive Handgun Violence Prevention Act’s the new rules, and checking to and duplicate reports and statements requirement at 18 U.S.C. 922(s)(2) that determine whether Federal funds might that are filed with the Commission. In the States’ chief law enforcement be available to help with the cost of addition, the Commission is exempting officers conduct background checks on their implementation. from these requirements reports and prospective handgun purchasers as an The Commission believes the new statements that are not filed with the unconstitutional obligation on State rules do not trigger that Act, since the Commission, but which can officers to execute Federal laws); see cost of implementation should fall far nevertheless be accessed electronically also United States v. New York, 505 short of the $100,000,000 figure cited as from the Commission’s site on the U.S. 144 (1992) (invalidating provisions the threshold for coverage. See 2 U.S.C. World Wide Web, www.fec.gov. of the Low-Level Radioactive Waste 1532(a). Also, as part of the waiver On October 14, 1999, the Commission Policy Act that required States to accept program, the Commission is offering to approved a State filing waiver program ownership of waste or to regulate it provide participating offices with free to implement this provision of the Act. according to congressional instructions). computer equipment and free Internet In order to qualify for the waiver, a State They suggested that the Commission access for the remainder of the 2000 must certify that it has a system in place change the proposed rule to request, but election cycle, provided that the State that ensures public Internet access to not require, State offices to discharge agrees to provide the access effective the FEC’s web site, where visitors can the filing and maintenance duties set March 1, 2001, at its own expense. The view and copy reports and statements. out in the statute and in the NPRM. Commission is also providing staff The system must include at least one While the Supreme Court has training and assistance with state efforts computer terminal that can invalidated a number of Federal statutes to publicize this program, to those electronically access the Commission’s imposing burdens on the States, the States that request this. web page, with at least one printer, Commission believes that 2 U.S.C. 439 The final rules at part 108 are also connected either directly or through a would pass constitutional muster under consistent with Executive Order network. The State must also certify that Congress’ authority to regulate the time, (‘‘E.O.’’) 13132, ‘‘Federalism,’’ which it will, to the greatest extent possible, place and manner of holding Federal was issued on August 4, 1999 and took allow anyone requesting Federal elections. U.S. Const., Art. I, sec. 4, cl. effect on November 2, 1999. 64 FR campaign finance data to use the 1. See Foster v. Love, 118 S.Ct. 464 43255 (Aug. 10, 1999). The Commission computer terminal at any time during (1997) (holding Louisiana’s open is not subject to this Executive Order, regular business hours. primary system to violate 2 U.S.C. 1, 7 which at section 1(c) incorporates the Each State that wishes to obtain a (which imposes a uniform national definition of agency found in the waiver of the section 439 receipt and election day), which was enacted Paperwork Reduction Act at 44 U.S.C. maintenance requirements must submit pursuant to the Elections Clause); 3502(1). That definition specifically a written certification to the Smiley v. Holm, 285 U.S. 335, 366–67 excludes the Commission, at 44 U.S.C. Commission that describes its system (1932) (Elections Clause encompasses 3502(1)(B). However, the procedures the for electronically receiving and congressional power to prevent ‘‘corrupt Commission has adopted to implement duplicating reports from the practices’’); Ex Parte Siebold, 100 U.S. the waiver program are consistent with Commission, and the extent to which 371, 392 (1879) (‘‘(T)he (Elections the Executive Order’s emphasis on that system is available to the public. If Clause) contemplates such co-operation cooperation between the States and the

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Federal Government in addressing only Senate candidates, and the NRSC paragraph is consistent with paragraph matters of mutual concern. and the DSCC, who must continue to (c) of this section, which allows States Please note that certain candidates file duplicate copies of reports with to charge reasonable fees to those and political committees do not file State officers, unless such reports are making copies of paper or microfilm their reports directly with the available on the Commission’s web site, documents. Commission. Candidates for nomination and the State has received a waiver The Commission is also correcting the for election or election to the office of pursuant to these rules. Paragraph (b) reference in the introductory material to United States Senator; authorized notes that other candidates and read ‘‘108.6(a) through (e)’’. committees supporting such candidates; committees need not file duplicate other political committees that support reports in those States that have Certification of No Effect Pursuant to 5 only Senate candidates; and the obtained a waiver pursuant to 2 U.S.C. U.S.C. 605(b) (Regulatory Flexibility National Republican Senatorial 439(c). New paragraph (c) retains the Act) Committee (‘‘NRSC’’) and the language in the current rule stating that, The attached rules will not have a Democratic Senatorial Campaign for committees other than authorized significant economic impact on a Committees (‘‘DSCC’’) file their reports committees, where reports cover activity substantial number of small entities. with the Secretary of the Senate, who in in more than one State, the committees The new rules conform to statutory turn provides copies to the Commission. need file, and State offices retain, only amendments, and also reduce the 2 U.S.C. 432(g)(1); 11 CFR 105.2. those portions of reports that are reporting burden of affected entities. At its current level of technology, the applicable to candidates seeking Therefore, these rules will not have a Secretary of the Senate is unable to election in that State. Please note that significant economic effect on a provide to the Commission copies of this applies only to States that have not substantial number of small entities. reports from Senate candidates and obtained a waiver. most unauthorized committees List of Subjects in 11 CFR Part 108 supporting Senate candidates in a form Section 108.4 Filing Copies of Reports by Committees Other Than Principal Elections, Reporting and that can be reproduced on the Internet. recordkeeping requirements. Thus, these reports cannot currently be Campaign Committees accessed electronically by State offices. The Commission has added a cross For the reasons set out in the Therefore, for the time being, copies of reference to new paragraph 11 CFR preamble, Subchapter A of Chapter I, these reports must continue to be filed 108.1(b) to this section, which requires Title 11 of the Code of Federal with the appropriate State office(s), and unauthorized committees that file Regulations is amended to read as those offices must continue to maintain reports and statements in connection follows: with Presidential elections to file copies them and make them available to the PART 108ÐFILING COPIES OF with the State officer(s) of the State(s) in public. REPORTS AND STATEMENTS WITH which both the recipient and the However, the Commission now STATE OFFICERS (2 U.S.C. 439) receives copies of reports filed by the contributing committees have their NRSC and the DSCC in a format that can headquarters. The Commission has also 1. The authority citation for Part 108 be reproduced over the Internet, so slightly reworded this section for continues to read as follows: clarity. these reports are available on the Authority: 2 U.S.C. 434(a)(2), 438(a)(8), Commission’s web site. The Section 108.6 Duties of State Officers 439, 453. Commission anticipates that, over time, reports filed by Senate candidates and The Commission has added a cross 2. Section 108.1 is amended by other committees that support them will reference to new paragraph 11 CFR redesignating the text as paragraph (a), also become available on the web site. 108.1(b) to this section, which provides revising the first sentence of newly As this occurs, and as more States are guidance to State officers on how to redesignated paragraph (a), and adding certified to be eligible for a waiver, the organize, preserve and make available new paragraph (b) to read as follows: responsibility of State offices to receive for public copying and inspection the reports and statements filed with those § 108.1 Filing Requirements (2 U.S.C. and maintain paper copies of these 439(a)(1)). reports will diminish. offices. It is also revising paragraph (b) to provide that paper or microfilm (a) Except as provided in paragraph Section 108.2 Filing Copies of Reports copies of documents that are available (b) of this section, a copy of each report and Statements in Connection with the electronically from the Commission and statement required to be filed by Campaign of any Candidate Seeking need not be kept for two years. This is any person under the Act shall be filed Nomination for Election to the Office of consistent with the language at 2 U.S.C. either with the Secretary of State of the President or Vice-President 439(b)(2), which states that covered appropriate State or with the State The Commission is adding a cross documents must be kept for two years officer who is charged by State law with reference to new 11 CFR 108.1(b), the ‘‘either in original filed form or in maintaining state election campaign records receipt and maintenance facsimile copy by microfilm or reports. * * * exception, to the first sentence of this otherwise’’ (emphasis added). The (b) The filing requirements and duties section. Commission interprets this to cover of State officers under this part 108 shall reports that it makes available through not apply to a State if the Commission Section 108.3 Filing Copies of Reports its web site, and its practice is to make has determined that the State maintains and Statements in Connection With the electronic copies available for more than a system that can electronically receive Campaign of any Congressional two years. and duplicate reports and statements Candidate The Commission is also adding a new filed with the Commission. Once a State This section has been restructured to paragraph (e) to this section, which has obtained a waiver pursuant to this reflect the potential exemption. New allows States that obtain waivers to paragraph, the waiver shall apply to all paragraph (a) addresses Senate charge reasonable fees to those who reports that can be electronically candidates, their authorized access and copy campaign finance accessed and duplicated from the committees, committees that support documents electronically. The new Commission, regardless of whether the

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President or Vice-President (2 U.S.C. committees other than principal campaign ACTION: Final rule. 439(a)(2)). committees (2 U.S.C. 439(a)(2)). SUMMARY: NCUA is amending its Except as provided in § 108.1(b), a Except as provided in § 108.1(b), any lending regulation to permit federal copy of each report and statement unauthorized committee that makes credit unions to advance money to required to be filed under the Act contributions in connection with a members to cover account deficits (including 11 CFR part 104) by a Presidential election and that is without having a credit application from Presidential or Vice Presidential required to file a report(s) and the member on file if the credit union candidate’s principal campaign statement(s) under the Act shall file a has a written overdraft policy. The committee, or under 11 CFR 104.4 or copy of such report(s) and statement(s) change will enable credit unions to offer part 109 by any other person making with the State officer of the State in this service without subjecting credit independent expenditures, in unions to undue risk. connection with a candidate seeking which both the recipient and DATES: This rule is effective July 1, nomination for election to the office of contributing committees have their 2000. President or Vice-President, shall be headquarters. filed with the State officer of each State 6. Section 108.6 is amended by ADDRESSES: National Credit Union in which an expenditure is made in revising the introductory text and Administration, 1775 Duke Street, Alexandria, Virginia 22314–3428. connection with the campaign of a paragraph (b), by removing the period candidate seeking nomination for and adding ‘‘; and’’ at the end of FOR FURTHER INFORMATION CONTACT: election to the office of President or paragraph (d), and by adding new Michael J. McKenna, Senior Staff Attorney, or Regina M. Metz, Staff Vice-President. * * * paragraph (e), to read as follows: 4. Section 108.3 is revised to read as Attorney, in the Division of Operations, follows: § 108.6 Duties of State officers (2 U.S.C. Office of General Counsel, at the above 439(b)). address or telephone: (703) 518–6540. § 108.3 Filing copies of reports and SUPPLEMENTARY INFORMATION: statements in connection with the Except as provided in § 108.1(b), the campaign of any congressional candidate Secretary of State, or the equivalent A. Background (2 U.S.C. 439(a)(2)). State officer, shall carry out the duties The Federal Credit Union Act does (a) Except as provided in § 108.1(b), a set forth in paragraphs (a) through (e) of not specifically address a federal credit copy of each report and statement this section: union’s (FCU’s) authority to pay or required to be filed under 11 CFR part * * * * * honor a share draft that will result in an 104 by candidates, and the authorized overdrawn account. NCUA’s (b) Preserve such reports and committees of candidates, for longstanding position has been that an statements (either in original form or in nomination for election or election to overdraft, as a financial accommodation facsimile copy by microfilm or the office of Senator; by other to a member, constitutes a loan or line committees that support only such otherwise) filed under the Act for a of credit to a member. candidates; and by the National period of 2 years from the date of A number of FCUs and trade Republican Senatorial Committee and receipt, except that reports and associations contended that FCUs are at the Democratic Senatorial Campaign statements that can be accessed and a competitive disadvantage because they Committees shall be filed with the duplicated electronically from the are unable to cover a member’s overdraft appropriate State officer of that State in Commission need not be so preserved; absent a prearranged, written agreement which an expenditure is made in * * * * * for the extension of credit. The NCUA connection with the campaign. Board believed this argument had merit (d) ***; and (b) Except as provided in § 108.1(b), a although there might be some safety and copy of each report and statement (e) If the State has received a waiver soundness concerns with extending required to be filed under 11 CFR part of these filing requirements pursuant to credit to a member without a written 104 by candidates, and authorized § 108.1(b), allow access to and lending agreement. Therefore, on committees of candidates, for duplication of reports and statements September 16, 1999, the NCUA Board nomination for election or election to covered by that waiver, except that such issued a proposed amendment to its the office of Representative in, Delegate access and duplication shall be at the general lending regulation with a sixty- or Resident Commissioner to the expense of the person making the day comment period (64 FR 52694 Congress, or by unauthorized request and at a reasonable fee. September 30, 1999). committees, or by any other person The proposed amendment to section Dated: March 17, 2000. under 11 CFR part 109, in connection 701.21(c)(3) provided that a credit union with these campaigns shall be filed with Darryl R. Wold, could advance money to a member to the appropriate State officer of that State Chairman, Federal Election Commission. cover his or her account deficit without in which an expenditure is made in [FR Doc. 00–7109 Filed 3–21–00; 8:45 am] having a credit application on file if the connection with the campaign. BILLING CODE 6715±01±P credit union had a written overdraft (c) Unauthorized committees that file policy. Specifically, the NCUA Board reports pursuant to paragraph (b) of this proposed that a credit union’s written

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00022 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15225 overdraft policy must: (1) Address how Should the policy set a cap on the total rule, to maintain maximum flexibility the credit union will honor overdrafts; dollar amount of all overdrafts the for credit unions, the NCUA Board is (2) set a cap on the total dollar amount credit union will honor? not setting a time limit. Each credit of all overdrafts the credit union will Two commenters approved of setting union should establish its own honor; (3) establish a time limit, not to a dollar cap in the policy. Three requirement for when it will write off an overdraft consistent with its lending exceed ten business days, for a member commenters opposed setting such a either to deposit funds or obtain an policies. limit. Eight commenters stated that the approved loan from the credit union to written policy should address this issue, Should the policy limit the number and cover each overdraft; (4) limit the but that NCUA should not establish the dollar amount of overdrafts the credit number and dollar amount of overdrafts limit. The NCUA Board did not suggest union will honor per member? the credit union will honor per member; a specific dollar cap in the proposal. and (5) establish the fee and interest Four commenters stated that the The NCUA Board has decided that the rate, if any, the credit union will charge credit union, not NCUA, should policy must set a cap and the credit members for honoring overdrafts. establish this limit in the policy. One union should establish the dollar commenter stated that a credit union’s B. Comments amount. management, not the board of directors, The comment period ended on Should the overdraft policy establish a should set the limit on the dollar November 29, 1999. Twenty-four time limit not to exceed ten business amount of overdrafts the credit union comments were received. Comments days for a member either to deposit will honor per member. Three were received from fourteen federal funds or obtain an approved loan from commenters would eliminate a limit on credit unions, eight state leagues, and the credit union to cover each overdraft? the number of overdrafts the credit two national credit union trade union will honor per member. These associations. The commenters were Two commenters supported the ten- commenters believe that the number of generally supportive of permitting day time limit. Eight commenters stated overdrafts have no bearing on risk and payment of overdrafts without credit that the credit union, not NCUA, should the reference to the ‘‘number of applications on file, but most establish the time limit for the member overdrafts’’ should be removed from the commenters suggested modifications. to either deposit funds or obtain an rule. These commenters would also go Two commenters completely approved loan from the credit union. farther and eliminate the limit on the supported NCUA’s proposal. Five Three commenters suggested a 30-day dollar amount per member from the commenters generally supported the time limit and two commenters written overdraft policy. proposal. Eight commenters supported suggested a 90-day time limit. Three In the proposal, the NCUA Board did requiring credit unions to have overdraft commenters suggested other time limits. not establish a number and dollar limit policies; however, seven of these eight The NCUA Board believes that a time but rather proposed that each credit commenters opposed NCUA mandating limit is necessary for safety and union should establish its own limit. what should be included in the soundness reasons. A ten-day time limit However, the NCUA Board agrees with overdraft policy. Seven of the twenty- may not be sufficient for the member in those commenters who stated that the four commenters stated that an overdraft all cases; therefore, the rule provides number of overdrafts a member incurs is not a loan and this regulation is that a credit union’s policy must may have no bearing on risk. The NCUA unnecessary. These commenters believe establish a time limit, not to exceed Board continues to believe that the that credit unions have the ability to forty-five days. This should be sufficient dollar amount per member does raise engage in this activity without time for any prudent individual to cover significant safety and soundness regulatory authorization. The NCUA the overdraft or apply for a loan. concerns. Therefore, the final rule Board disagrees. The NCUA Board One commenter asked whether the simply requires that the credit union’s believes an overdraft is a loan, and, in time limit begins to run at the time the own policy set forth the dollar amount order for a federal credit union to credit union advances the overdraft of overdrafts the credit union will honor advance funds to cover an overdraft protection to cover the member’s per member. As in the proposed rule, to without first having a written account deficit or from the date the provide maximum flexibility to credit application in place as required by member receives notice of the overdraft. unions, it is up to the credit union, not NCUA’s lending regulation, a regulatory The time limit starts to run the day the NCUA, to establish this dollar amount. change is in order. The NCUA Board credit union advances the overdraft This dollar amount should be consistent also continues to believe that a written protection. with the credit union’s ability to absorb overdraft policy will offset safety and Should the overdraft policy require a losses and manage risk. soundness concerns and prevent insider credit union to write off any overdraft Should the policy establish the fee and abuses. for which the member has not either interest rate, if any, the credit union will We received comment on the repaid the credit union or obtained an charge members for honoring following issues: approved loan? overdrafts? Should the policy address how the One commenter stated that NCUA One commenter stated the policy credit union will honor overdrafts? should set a time limit after which the itself need not contain the amount of the One commenter requested credit union must write off the loan. overdraft fee and interest rate, but clarification on what NCUA is seeking One commenter suggested 30 days. simply should require that such fee and to cover with this requirement. After Eight commenters stated that the credit interest rate be established and further review, the NCUA Board union, not NCUA, should set the time disclosed. The NCUA Board continues believes stating how the overdraft is limit to write off the loan. The NCUA to believe that, if a credit union is going covered is superfluous because of the Board did not propose to establish when to engage in this activity, the fee and other specific items the policy must a credit union needs to write off an interest rate, if any, should be set forth address. The NCUA Board has deleted overdraft for which the member has not in the policy. The NCUA Board believes this requirement from the final either repaid the credit union or this is a matter of prudent internal amendment. obtained an approved loan. In the final control and sound judgment.

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Should the rule impose additional Executive Order 13132 2. Amend § 701.21 by revising restrictions on overdrafts by credit Executive Order 13132 encourages paragraph (c)(3) to read as follows: union employees or officials? independent regulatory agencies to § 701.21 Loans to members and lines of Eight commenters opposed any consider the impact of their regulatory credit to members. additional restrictions. These action on state and local interests. * * * * * commenters believe that additional NCUA, an independent regulatory (c) * * * regulatory restrictions are not necessary. agency as defined in 44 U.S.C 3502(5), (3) Credit applications and overdrafts. Two commenters would impose voluntarily adheres to the fundamental Consistent with policies established by additional restrictions on overdrafts by federalism principles addressed by the the board of directors, the credit credit union employees or officials but executive order. This final amendment committee or loan officer shall ensure provided no persuasive rationale on will only apply to federal credit unions. that a credit application is kept on file why the rule should treat them This final rule makes no changes with for each borrower supporting the differently than other credit union respect to state credit unions and decision to make a loan or establish a members. NCUA’s regulations on loans therefore, will not impact state and local line of credit. A credit union may to officials and nonpreferential interests. advance money to a member to cover an treatment provide sufficient regulatory Small Business Regulatory Enforcement account deficit without having a credit protection against any impropriety or Fairness Act application from the borrower on file if appearance of impropriety. See 12 CFR the credit union has a written overdraft 701.21(d). The Small Business Regulatory policy. The policy must: set a cap on the Enforcement Fairness Act of 1996 (Pub. C. Regulatory Procedures total dollar amount of all overdrafts the L. 104–121) provides generally for credit union will honor consistent with Regulatory Flexibility Act congressional review of agency rules. A the credit union’s ability to absorb reporting requirement is triggered in The Regulatory Flexibility Act losses; establish a time limit not to instances where NCUA issues a final exceed forty-five calendar days for a requires NCUA to prepare an analysis to rule as defined by Section 551 of the describe any significant economic member either to deposit funds or Administrative Procedures Act. 5 U.S.C. obtain an approved loan from the credit impact any final regulation may have on 551. The Office of Management and a substantial number of small entities union to cover each overdraft; limit the Budget has determined that this is not dollar amount of overdrafts the credit (primarily those under $1 million in a major rule. assets). For purposes of this analysis, union will honor per member; and credit unions under $1 million in assets D. Agency Regulatory Goal establish the fee and interest rate, if any, will be considered small entities. As of the credit union will charge members NCUA’s goal is clear, understandable for honoring overdrafts. June 30, 1999, there were 1,690 such regulations that impose a minimal entities with a total of $807.3 million in regulatory burden. We requested * * * * * assets, with an average asset size of $0.5 comments on whether the proposed [FR Doc. 00–7039 Filed 3–21–00; 8:45 am] million. These small entities make up amendment were understandable and BILLING CODE 7535±01±U 15.6 percent of all credit unions, but minimally intrusive if implemented as only 0.2 percent of all credit union proposed. We received no specific assets. comment on this issue. DEPARTMENT OF TRANSPORTATION The final amendment permits federal credit unions to advance money to List of Subjects in 12 CFR Part 701 Federal Aviation Administration members to cover account deficits Credit, Credit unions, Reporting and without having a credit application from recordkeeping requirements. 14 CFR Part 39 the member on file if the credit union By the National Credit Union [Docket No. 98±NM±94±AD; Amendment has a written overdraft policy. The Administration Board on March 16, 2000. 39±11636; AD 2000±05±26] NCUA Board does not believe that the Becky Baker, final amendment will impose reporting RIN 2120±AA64 or recordkeeping burdens that require Secretary of the Board. Airworthiness Directives; Aerospatiale specialized professional skills not For the reasons set forth in the Model ATR42±200, ATR42±300, and available to them. preamble, the National Credit Union ATR42±320 Series Airplanes The NCUA Board has determined and Administration is amending 12 CFR part certifies that this final amendment, if 701 as follows: AGENCY: Federal Aviation adopted, will not have a significant Administration, DOT. PART 701ÐORGANIZATION AND economic impact on a substantial OPERATION OF FEDERAL CREDIT ACTION: Final rule. number of small credit unions. UNIONS SUMMARY: This amendment supersedes Paperwork Reduction Act 1. The authority citation continues to an existing airworthiness directive (AD), The reporting requirements in section read as follows: applicable to certain Aerospatiale Model 701.21(c)(3) have been submitted to and ATR42–300 and ATR42–320 series approved by the Office of Management Authority: 12 U.S.C. 1752(5), 1755, 1756, airplanes, that currently requires and Budget under OMB control number 1757, 1759, 1761a, 1761b, 1766, 1767, 1782, inspections to determine the proper 1784, 1787, and 1789. 3133–0139. Under the Paperwork installation of rivets in certain key holes Reduction Act of 1995, no persons are Section 701.6 is also authorized by 15 and to detect cracks in the area of the U.S.C. 3717. required to respond to a collection of Section 701.31 is also authorized by 15 key holes where rivets are missing; and information unless it displays a valid U.S.C. 1601 et seq.; 42 U.S.C. 1981 and 3601– correction of discrepancies. This OMB number. The control number is 3610. amendment increases the compliance displayed in the table at 12 CFR part Section 701.35 is also authorized by 42 time for the existing requirements and 795. U.S.C. 4311–4312. expands the applicability of the existing

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AD to include additional airplanes. This necessary; and replacement of certain compliance with this AD, if action also requires various inspections cargo door hinges with new hinges. For Aerospatiale is a delegated agent of the of the subject area for discrepancies, and certain airplanes, the action also DGAC for such repairs. If this is the corrective actions, if necessary; and proposed to require replacement of case, no ‘‘reapproval’’ is necessary, replacement of certain cargo door hinges friction plates, stop fittings, and bolts since such approved repairs would be with new hinges. For certain airplanes, with new parts. acceptable for compliance with the this action also requires replacement of Interested persons have been afforded requirements of this AD. Further, friction plates, stop fittings, and bolts an opportunity to participate in the sufficient time is provided prior to the with new parts. This amendment is making of this amendment. Due compliance thresholds of this AD to prompted by issuance of mandatory consideration has been given to the allow operators to determine if continuing airworthiness information by comments received. approvals must be obtained for a foreign civil airworthiness authority. Approved Repairs previously accomplished repairs, and to The actions specified by this AD are obtain such approvals, if necessary. No intended to prevent fatigue cracks of the One commenter, an operator, change to the AD is necessary. cargo door skin, certain frames, and expresses concern that paragraphs (c) entry door stop fittings and friction and (d)(2)(ii) of the proposed AD Service Bulletin Revisions plates, which could result in reduced mandate that any repairs, previously The same commenter requests that the structural integrity of the airplane. conducted through Aerospatiale, now proposed AD be revised to include later must be approved by the Manager, DATES: Effective April 26, 2000. revisions of two service bulletins, and The incorporation by reference of International Branch, ANM–116, notes that the changes made do not Transport Airplane Directorate, FAA; or certain publications listed in the ´ affect the technical content of either regulations is approved by the Director the Direction Genrale de l’Aviation bulletin. The commenter states that ATR of the Federal Register as of April 26, Civile (DGAC) (or its delegated agent). Service Bulletin ATR42–53–0070, 2000. The commenter is concerned that, if the Revision 3, dated February 19, 1999, is The incorporation by reference of only resources for repair approvals are the most current version and should be Avions de Transport Regionale (ATR) those mentioned here, any repair included in paragraph (a) of the AD. The Service Bulletin ATR42–53–0070, approval process will not be responsive commenter also states that ATR Service Revision 2, dated March 22, 1993, was on a timely basis. The commenter states Bulletin ATR42–53–0076, Revision 3, approved previously by the Director of that notification to the Manager, ANM– dated February 19, 1999, has been the Federal Register as of November 18, 116, of damage found and the repair released and should be included in 1993 (58 FR 53853, October 19, 1993). method used, following embodiment, paragraph (d) of the AD. Revision 2 of ADDRESSES: The service information would be more appropriate. each of these service bulletins was cited The FAA infers that the commenter is referenced in this AD may be obtained as the appropriate source of service requesting that the AD be revised to from Aerospatiale, 316 Route de information in the referenced paragraph allow repair approvals through Bayonne, 31060 Toulouse, Cedex 03, of the proposed AD. Aerospatiale, with subsequent France. This information may be The FAA concurs. The FAA has notification to the Manager, ANM–116. examined at the Federal Aviation reviewed the referenced service The FAA does not concur. To specify Administration (FAA), Transport bulletins and agrees that equivalent within an AD that repairs are to be Airplane Directorate, Rules Docket, technical information is contained in accomplished in accordance with the 1601 Lind Avenue, SW., Renton, the later revisions of the service manufacturer would be delegating the Washington; or at the Office of the bulletins. The FAA has revised FAA’s rulemaking authority to the Federal Register, 800 North Capitol paragraphs (a) and (d) of the final rule manufacturer. Since the referenced Street, NW., suite 700, Washington, DC. to include these revisions as appropriate service information does not provide sources of service information. FOR FURTHER INFORMATION CONTACT: appropriate repair procedures, the FAA Norman B. Martenson, Manager, must require that operators accomplish Conclusion International Branch, ANM–116, FAA, necessary repairs in accordance with a After careful review of the available Transport Airplane Directorate, 1601 method approved by the FAA or the data, including the comments noted Lind Avenue, SW., Renton, Washington DGAC (or its delegated agent). The FAA above, the FAA has determined that air 98055–4056; telephone (425) 227–2110; notes that, if Aerospatiale has been safety and the public interest require the fax (425) 227–1149. designated by the DGAC as a delegated adoption of the rule with the changes SUPPLEMENTARY INFORMATION: A agent for repair approvals, such previously described. The FAA has proposal to amend part 39 of the Federal approvals by Aerospatiale would be determined that these changes will Aviation Regulations (14 CFR part 39) acceptable for compliance with this AD. neither increase the economic burden by superseding 93–18–04, amendment No change to the AD is necessary. on any operator nor increase the scope 39–8689 (58 FR 53853, October 19, of the AD. 1993), which is applicable to certain Prior Repairs Aerospatiale Model ATR42–300 and The same commenter notes that there Cost Impact ATR42–320 series airplanes, was should be some consideration for There are approximately 106 published in the Federal Register on airplanes on which the modification has airplanes of U.S. registry that will be October 25, 1999 (64 FR 57409). The already been accomplished with some affected by this AD. action proposed to increase the form of repair (prior to the effective date The general visual inspection of compliance time for the existing of the AD). As written, the AD would fuselage frames 25 and 27 that is requirements and expand the require that any such repair be required by this AD will take applicability of the existing AD to ‘‘reapproved’’ by the FAA or DGAC. approximately 3 work hours per include additional airplanes. The action The FAA does not concur. As noted airplane to accomplish, at an average also proposed to require various in the FAA’s response to the previous labor rate of $60 per work hour. Based inspections of the subject area for comment, repairs approved by on these figures, the cost impact of this discrepancies, and corrective actions, if Aerospatiale may be acceptable for inspection required by this AD on U.S.

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Based on these Flexibility Act. A final evaluation has inclusive, and 096 through 228 inclusive: figures, the cost impact of the door been prepared for this action and it is Prior to the accumulation of 36,000 total flight cycles, or within 180 days after the structure replacement required by this contained in the Rules Docket. A copy AD on U.S. operators is estimated to be effective date of this AD, whichever occurs of it may be obtained from the Rules later, conduct a general visual inspection of $24,880 per airplane. Docket at the location provided under fuselage frames 25 and 27 to verify the proper The general visual inspection of the the caption ADDRESSES. installation of a rivet in each of the key holes, key and tooling holes that is required by in accordance with Avions de Transport this AD will take approximately 100 List of Subjects in 14 CFR Part 39 Regional (ATR) Service Bulletin ATR42–53– work hours per airplane to accomplish, Air transportation, Aircraft, Aviation 0070, Revision 2, dated March 22, 1993, or at an average labor rate of $60 per work safety, Incorporation by reference, Revision 3, dated February 19, 1999. hour. Based on these figures, the cost Safety. Note 2: For the purposes of this AD, a impact of this inspection required by general visual inspection is defined as ‘‘A this AD on U.S. operators is estimated Adoption of the Amendment visual examination of an interior or exterior to be $6,000 per airplane. area, installation, or assembly to detect Accordingly, pursuant to the obvious damage, failure, or irregularity. This The eddy current and detailed visual authority delegated to me by the inspections of the forward entry door level of inspection is made under normally Administrator, the Federal Aviation available lighting conditions such as stop fitting and friction plate that are Administration amends part 39 of the daylight, hangar lighting, flashlight, or drop- required by this AD will take Federal Aviation Regulations (14 CFR light, and may require removal or opening of approximately 2 work hours per part 39) as follows: access panels or doors. Stands, ladders, or airplane to accomplish, at an average platforms may be required to gain proximity labor rate of $60 per work hour. Based PART 39ÐAIRWORTHINESS to the area being check.’’ on these figures, the cost impact of this DIRECTIVES Note 3: Inspection of fuselage frames 25 inspection required by this AD on U.S. and 27 accomplished prior to the effective operators is estimated to be $120 per 1. The authority citation for part 39 date of this AD in accordance with ATR airplane. continues to read as follows: Service Bulletin ATR42–53–0070, dated June The replacement of the forward entry Authority: 49 U.S.C. 106(g), 40113, 44701. 10, 1991, or Revision 1, dated June 12, 1992, door stop fitting, friction plate, and is considered acceptable for compliance with upper door corner that is required in § 39.13 [Amended] the requirements of paragraph (a) of this AD. this AD action will take approximately 2. Section 39.13 is amended by (1) If a rivet is installed in each of the key 50 work hours per airplane to removing amendment 39–8689 (58 FR holes, no further action is required by this paragraph. accomplish. The manufacturer has 53853, October 19, 1993), and by adding a new airworthiness directive (AD), (2) If a rivet is not installed in each of the committed previously to its customers key holes, prior to further flight, perform an that it will bear the cost of replacement amendment 39–11636, to read as eddy current inspection of each open key parts. As a result, the cost of those parts follows: hole to detect cracks, in accordance with the is not attributable to this AD. Based on 2000–05–26 Aerospatiale: Amendment 39– service bulletin. this figure, the cost impact of the 11636. Docket 98-NM–94-AD. (i) If no crack is found during the eddy replacement required by this AD on U.S. Supersedes AD 93–18–04, Amendment current inspection, prior to further flight, operators is estimated to be $3,000 per 39–8689. install a rivet in the open key hole in Applicability: All Model ATR42–200, accordance with the service bulletin. After airplane. such installation, no further action is The cost impact figures discussed ATR42–300, and ATR42–320 series airplanes; certificated in any category. required by this paragraph for that key hole. above are based on assumptions that no (ii) If any crack is found during the eddy Note 1: This AD applies to each airplane operator has yet accomplished any of current inspection, prior to further flight, identified in the preceding applicability repair the crack in accordance with a method the requirements of this AD action, and provision, regardless of whether it has been approved by the Manager, International that no operator would accomplish modified, altered, or repaired in the area Branch, ANM–116, FAA, Transport Airplane those actions in the future if this AD subject to the requirements of this AD. For ´ ´ Directorate, or the Direction Generale de were not adopted. airplanes that have been modified, altered, or l’Aviation Civile (DGAC) (or its delegated repaired so that the performance of the Regulatory Impact agent). For a repair method to be approved requirements of this AD is affected, the by the Manager, International Branch, ANM– The regulations adopted herein will owner/operator must request approval for an 116, as required by this paragraph, the not have a substantial direct effect on alternative method of compliance in Manager’s approval letter must specifically the States, on the relationship between accordance with paragraph (h) of this AD. reference this AD. the national Government and the States, The request should include an assessment of or on the distribution of power and the effect of the modification, alteration, or Inspection and Modification of Cargo Door repair on the unsafe condition addressed by Structure responsibilities among the various this AD; and, if the unsafe condition has not (b) For airplanes equipped with a cargo levels of government. Therefore, it is been eliminated, the request should include determined that this final rule does not compartment door on which Aerospatiale specific proposed actions to address it. Modification 3191 has not been have federalism implications under Compliance: Required as indicated, unless accomplished: Prior to the accumulation of Executive Order 13132. accomplished previously. 27,000 total flight cycles, or within 180 days For the reasons discussed above, I To prevent fatigue cracks of the cargo door after the effective date of this AD, whichever certify that this action (1) is not a skin, certain frames, entry door stop fittings, occurs later, except as provided by paragraph ‘‘significant regulatory action’’ under or friction plates, which could result in (c) of this AD, replace the hinges on the cargo

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March 1, 1995. this AD, prior to further flight, repair the (1) Replace the forward entry door friction (c) Where the instructions in ATR Service crack in accordance with a method approved plates with improved friction plates. by the Manager, International Branch, ANM– Bulletin ATR42–52–0058, Revision 1, dated (2) Replace the upper corners of the 116, or the DGAC (or its delegated agent). March 1, 1995, specify that ATR is to be forward entry door surround structure with contacted for a repair, prior to further flight, Inspection and/or Replacement of Entry improved door surround corners. repair in accordance with a method approved Door Structure (3) Replace the forward entry door stop by the Manager, International Branch, ANM– fittings and bolts with improved fittings and 116, or the DGAC (or its delegated agent). (e) For Model ATR42–300 series airplanes having serial numbers listed in ATR Service bolts. Frame Inspection Bulletin ATR42–52–0052, Revision 1, dated Alternative Methods of Compliance March 2, 1993: Except as provided by (d) For airplanes having serial numbers 003 (h) An alternative method of compliance or through 208 inclusive: Prior to the paragraph (f) of this AD, prior to the accumulation of 10,000 total flight cycles, or adjustment of the compliance time that accumulation of 36,000 total flight cycles, or provides an acceptable level of safety may be within 180 days after the effective date of this within 90 days after the effective date of this AD, whichever occurs later, accomplish the used if approved by the Manager, AD, whichever occurs later, conduct a requirements of paragraphs (e)(1) and (e)(2) International Branch, ANM–116. Operators general visual inspection of the identified of this AD. shall submit their requests through an fuselage frames for proper installation of a (1) Perform an eddy current inspection of appropriate FAA Principal Maintenance rivet in each of the tooling and key holes, in the forward entry door stop holes to detect Inspector, who may add comments and then accordance with ATR Service Bulletin cracking, in accordance with the service ATR42–53–0076, Revision 2, dated October send it to the Manager, International Branch, bulletin. If any cracking is detected, prior to 15, 1996, or Revision 3, dated February 19, ANM–116. further flight, replace any cracked forward 1999. Note 5: Information concerning the entry door stop fitting with a new fitting, in (1) If a rivet is installed in each of the existence of approved alternative methods of accordance with the service bulletin. compliance with this AD, if any, may be tooling or key holes, no further action is (2) Perform a detailed visual inspection of obtained from the International Branch, required by this paragraph. the forward entry door friction plates for ANM–116. (2) If a rivet is not installed in each of the wear, in accordance with the service bulletin. tooling and key holes, prior to further flight, If wear is found on any friction plate, and the Special Flight Permits perform a detailed visual inspection of each wear has a depth equal to or greater than open tooling or key hole to detect cracks, in 0.8mm (0.0315 in.), prior to further flight, (i) Special flight permits may be issued in accordance with the service bulletin. replace the friction plate with a new or accordance with §§ 21.197 and 21.199 of the Note 4: For the purposes of this AD, a serviceable part in accordance with the Federal Aviation Regulations (14 CFR 21.197 detailed visual inspection is defined as: ‘‘An service bulletin. and 21.199) to operate the airplane to a intensive visual examination of a specific (f) For Model ATR42–300 series airplanes location where the requirements of this AD structural area, system, installation, or listed in ATR Service Bulletin ATR42–52– can be accomplished. assembly to detect damage, failure, or 0052, Revision 1, dated March 2, 1993, Incorporation by Reference irregularity. Available lighting is normally accomplishment of the requirements of supplemented with a direct source of good paragraph (g) of this AD at the time specified (j) Except as required by paragraphs lighting at intensity deemed appropriate by in paragraph (e) of this AD constitutes (a)(2)(ii), (c), and (d)(2)(ii) of this AD, the the inspector. Inspection aids such as mirror, terminating action for the requirements of actions shall be done in accordance with the magnifying lenses, etc. may be used. Surface paragraph (e) of this AD. following Avions de Transport Regionale cleaning and elaborate access procedures (g) For Model ATR42–300 series airplanes service bulletins, as applicable: may be required.’’ listed in ATR Service Bulletin ATR42–52–

Revision Service bulletin referenced and date Page number level shown Date shown on on page page

ATR42±53±0070, Revision 2, March 22, 1993 ...... 1, 2, 9 2 ...... March 22, 1993. 3±7, 10±12 1 ...... June 12, 1992. 8, 13 Original ...... June 10, 1991. ATR42±53±0070, Revision 3, February 19, 1999...... 1±6, 9 3 ...... February 19, 1999 7, 10±12 1 ...... June 12, 1992. 8, 13 Original ...... June 10, 1991. ATR42±52±0058, Revision 1, March 1, 1995...... 1±117 1 ...... March 1, 1995 39±99 (These pages are not used). ATR42±53±0076, Revision 2, October 15, 1996...... 1±6 2 ...... October 15, 1996 7, 8, 11, 12, 1 ...... November 4, 1994. 17±19 9, 10, 13±16 Original ...... May 13, 1993. ATR42±53±0076, Revision 3, February 19, 1999...... 1±6 3 ...... February 19, 1999 7, 8, 11, 12, 1 ...... November 4, 1994. 17±19 9, 10, 13±16 Original ...... May 13, 1993. ATR42±52±0052, Revision 1, March 2, 1993...... 1±4, 9, 10 1 ...... March 2, 1993 5±8, 11±17 Original ...... January 11, 1991. ATR42±52±0059, February 16, 1995 ...... 1±43 Original ...... February 16, 1995.

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00027 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15230 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations

(1) The incorporation by reference of interface, and corrective action, if Request to Revise Cost Impact Avions de Transport Regionale Service necessary. It also requires re-installation Information Bulletin ATR42–53–0070, Revision 3, dated with re-protected and sealed bolts One commenter, an operator, requests February 19, 1999; Avions de Transport torqued to a lower level. This Regionale Service Bulletin ATR42–52–0058, that the cost impact information in the Revision 1, dated March 1, 1995; Avions de amendment is prompted by issuance of proposed AD be increased from ‘‘20 Transport Regionale Service Bulletin ATR42– mandatory continuing airworthiness work hours (including removal and 53–0076, Revision 2, dated October 15, 1996; information by a foreign civil reinstallation of the engines)’’ to 112 Avions de Transport Regionale Service airworthiness authority. The actions work hours. The commenter states that, Bulletin ATR42–53–0076, Revision 3, dated specified by this AD are intended to as an experienced operator, it estimates February 19, 1999; Avions de Transport detect and correct cracking or corrosion Regionale Service Bulletin ATR42–52–0052, the time necessary to remove and of the forward attachment bolts of the replace just one engine is approximately Revision 1, dated March 2, 1993; and Avions engine pylon to wing interface, which de Transport Regionale Service Bulletin 8 to 10 work hours. The commenter ATR42–52–0059, dated February 16, 1995; is could result in reduced structural suggests that an appropriate estimate for approved by the Director of the Federal integrity of the engine pylon all actions required by the AD is Register in accordance with 5 U.S.C. 552(a) attachment. approximately 112 work hours, and 1 CFR part 51. DATES: Effective April 26, 2000. including hours for removal and (2) The incorporation by reference of replacement of four engines and the Avions de Transport Regionale Service The incorporation by reference of Bulletin ATR42–53–0070, Revision 2, dated certain publications listed in the pylon attachment bolts, as well as March 22, 1993, was approved previously by regulations is approved by the Director inspection of the bolts and removal of the Director of the Federal Registeras of of the Federal Register as of April 26, corrosion. November 18, 1993 (58 FR 53853, October 2000. The FAA partially concurs. The 19, 1993). estimate of 20 work hours provided in (3) Copies may be obtained from ADDRESSES: The service information the AD was based on the estimate of Aerospatiale, 316 Route de Bayonne, 31060 referenced in this AD may be obtained work hours specified in British Toulouse, Cedex 03, France. Copies may be from British Aerospace Regional Aerospace Service Bulletin SB.54–10, inspected at the FAA, Transport Airplane Directorate, 1601 Lind Avenue, SW., Renton, Aircraft American Support, 13850 dated September 16, 1999 (which was Washington; or at the Office of the Federal Mclearen Road, Herndon, Virginia referenced in the proposed AD and cited Register, 800 North Capitol Street, NW., suite 20171. This information may be in this final rule as the appropriate 700, Washington, DC. examined at the Federal Aviation source of service information). However, Note 6: The subject of this AD is addressed Administration (FAA), Transport the FAA has determined that such an in French airworthiness directive 92–044– Airplane Directorate, Rules Docket, estimate includes only the time required 046(B)R2, dated November 5, 1997. 1601 Lind Avenue, SW., Renton, to accomplish the inspections required (k) This amendment becomes effective on Washington; or at the Office of the by this AD, and does not include the April 26, 2000. Federal Register, 800 North Capitol time necessary for removal and Issued in Renton, Washington, on March 9, Street, NW., suite 700, Washington, DC. reinstallation of all four engines or the 2000. FOR FURTHER INFORMATION CONTACT: time for accomplishment of corrective Donald L. Riggin, Norman B. Martenson, Manager, actions if corrosion is found. The FAA Acting Manager, Transport Airplane International Branch, ANM–116, FAA, has revised the cost impact information, Directorate, Aircraft Certification Service. Transport Airplane Directorate, 1601 below, by removing the parenthetical [FR Doc. 00–6328 Filed 3–22–00; 8:45 am] Lind Avenue, SW., Renton, Washington statement indicating that the 20 work hours includes engine removal and BILLING CODE 4910±13±U 98055–4056; telephone (425) 227–2110; fax (425) 227–1149. reinstallation. However, because the economic analysis of the AD is limited DEPARTMENT OF TRANSPORTATION SUPPLEMENTARY INFORMATION: A to the cost of actions actually required proposal to amend part 39 of the Federal by the rule, it does not typically include Federal Aviation Administration Aviation Regulations (14 CFR part 39) to the costs of ‘‘indirect’’ or ‘‘on- include an airworthiness directive (AD) condition’’ actions, such as hours 14 CFR Part 39 that is applicable to all British necessary for access and close, or for Aerospace Model BAe 146 and Avro repairs. Therefore, no further change to [Docket No. 99±NM±347±AD; Amendment 146–RJ series airplanes was published 39±11638; AD 2000±05±28] the cost impact information is in the Federal Register on December 15, necessary. RIN 2120±AA64 1999 (64 FR 69967). That action proposed to require a one-time Request for Alternative Method of Airworthiness Directives; British inspection to detect cracking or Compliance Aerospace Model BAe 146 and Avro corrosion of the forward attachment The same commenter requests that the 146±RJ Series Airplanes bolts of the engine pylon to wing proposed AD include a provision for the AGENCY: Federal Aviation interface, and corrective action, if replacement of the pylon attachment Administration, DOT. necessary. That action also proposed to bolts with new bolts as an alternative to require re-installation with re-protected ACTION: Final rule. performing the inspection. The and sealed bolts torqued to a lower commenter notes that such a provision SUMMARY: This amendment adopts a level. is not specified in the referenced service new airworthiness directive (AD), Comments Received bulletin or in the proposed AD, but applicable to all British Aerospace states that this option should be Model BAe 146 and Avro 146–RJ series Interested persons have been afforded available at the operator’s discretion as airplanes, that requires a one-time an opportunity to participate in the an alternative method of compliance. inspection to detect cracking or making of this amendment. Due The FAA concurs. The FAA has corrosion of the forward attachment consideration has been given to the reviewed the acceptability of the bolts of the engine pylon to wing comments received. proposed alternative method of

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00028 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15231 compliance with the manufacturer and FR 11034, February 26, 1979); and (3) in reduced structural integrity of the engine with the Civil Aviation Authority will not have a significant economic pylon attachment, accomplish the following: (CAA), which is the airworthiness impact, positive or negative, on a Inspection and Corrective Action authority for the United Kingdom. substantial number of small entities Based on that input, the FAA has under the criteria of the Regulatory (a) Within 4 years since date of determined that replacement of all Flexibility Act. A final evaluation has manufacture, or within 2,000 flight cycles pylon attachments bolts with new bolts been prepared for this action and it is after the effective date of this AD, whichever is an acceptable alternative to contained in the Rules Docket. A copy occurs later: Except as provided by paragraph performing the inspection required by of it may be obtained from the Rules (b) of this AD, perform applicable inspections this AD, provided that the installation Docket at the location provided under (dye penetrant, magnetic particle, and methods specified in the service the caption ADDRESSES. detailed visual) to detect discrepancies bulletin are followed. Such installation (including damage, cracking, and corrosion) List of Subjects in 14 CFR Part 39 methods include retorquing the new of the forward attachment bolts of the engine bolts to a lower level, and applying Air transportation, Aircraft, Aviation pylon to wing interface on each engine, in sealant to the bolts. A new paragraph (b) safety, Incorporation by reference, accordance with British Aerospace Service has been added to the final rule to Safety. Bulletin SB.54–10, dated September 16, 1999. If any discrepancy is detected, prior to provide this alternative as an acceptable Adoption of the Amendment means of complying with the further flight, perform applicable corrective requirements of this AD. Accordingly, pursuant to the actions in accordance with the service authority delegated to me by the bulletin. Conclusion Administrator, the Federal Aviation Note 2: For the purposes of this AD, a After careful review of the available Administration amends part 39 of the detailed visual inspection is defined as: ‘‘An data, including the comments noted Federal Aviation Regulations (14 CFR intensive visual examination of a specific above, the FAA has determined that air part 39) as follows: structural area, system, installation, or safety and the public interest require the assembly to detect damage, failure, or PART 39ÐAIRWORTHINESS adoption of the rule with the changes irregularity. Available lighting is normally DIRECTIVES described previously. The FAA has supplemented with a direct source of good determined that these changes will 1. The authority citation for part 39 lighting at intensity deemed appropriate by neither increase the economic burden continues to read as follows: the inspector. Inspection aids such as mirror, on any operator nor increase the scope magnifying lenses, etc., may be used. Surface of the AD. Authority: 49 U.S.C. 106(g), 40113, 44701. cleaning and elaborate access procedures may be required.’’ Cost Impact § 39.13 [Amended] (b) Replacement of all bolts with new bolts 2. Section 39.13 is amended by The FAA estimates that 35 airplanes in accordance with British Aerospace Service adding the following new airworthiness of U.S. registry will be affected by this Bulletin SB.54–10, dated September 16, directive: AD, that it will take approximately 20 1999, within the compliance time specified work hours per airplane to accomplish 2000–05–28 British Aerospace Regional in paragraph (a) of this AD, is an acceptable the required inspection, and that the Aircraft (Formerly British Aerospace alternative for compliance with the average labor rate is $60 per work hour. Regional Aircraft Limited, Avro requirements of paragraph (a), provided all International Aerospace Division; British Based on these figures, the cost impact installation methods (including retorquing Aerospace, PLC; British Aerospace of the AD on U.S. operators is estimated the bolts at a lower level, and applying to be $42,000, or $1,200 per airplane. Commercial Aircraft Limited): Amendment 39–11638. Docket 99–NM– sealant to the bolts) specified in the service The cost impact figure discussed 347–AD. bulletin are followed. above is based on assumptions that no Applicability: All Model BAe 146 and Avro Alternative Methods of Compliance operator has yet accomplished any of 146–RJ series airplanes, certificated in any the requirements of this AD action, and category. (c) An alternative method of compliance or that no operator would accomplish adjustment of the compliance time that Note 1: This AD applies to each airplane provides an acceptable level of safety may be those actions in the future if this AD identified in the preceding applicability were not adopted. provision, regardless of whether it has been used if approved by the Manager, International Branch, ANM–116, FAA, Regulatory Impact modified, altered, or repaired in the area subject to the requirements of this AD. For Transport Airplane Directorate. Operators The regulations adopted herein will airplanes that have been modified, altered, or shall submit their requests through an not have a substantial direct effect on repaired so that the performance of the appropriate FAA Principal Maintenance the States, on the relationship between requirements of this AD is affected, the Inspector, who may add comments and then the national Government and the States, owner/operator must request approval for an send it to the Manager, International Branch, or on the distribution of power and alternative method of compliance in ANM–116. accordance with paragraph (c) of this AD. responsibilities among the various Note 3: Information concerning the The request should include an assessment of levels of government. Therefore, it is existence of approved alternative methods of determined that this final rule does not the effect of the modification, alteration, or repair on the unsafe condition addressed by compliance with this AD, if any, may be have federalism implications under this AD; and, if the unsafe condition has not obtained from the International Branch, Executive Order 13132. been eliminated, the request should include ANM–116. For the reasons discussed above, I specific proposed actions to address it. Special Flight Permits certify that this action (1) is not a Compliance: Required as indicated, unless ‘‘significant regulatory action’’ under accomplished previously. (d) Special flight permits may be issued in Executive Order 12866; (2) is not a To detect and correct cracking or corrosion accordance with §§ 21.197 and 21.199 of the ‘‘significant rule’’ under DOT of the forward attachment bolts of the engine Federal Aviation Regulations (14 CFR 21.197 Regulatory Policies and Procedures (44 pylon to wing interface, which could result and 21.199)

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00029 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 15232 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations to operate the airplane to a location where and engine, which could result in loss check the logbook to determine whether the requirements of this AD can be of engine power or complete engine one of the affected fuel strainer accomplished. stoppage during flight. assemblies is installed. This would Incorporation by Reference DATES: Effective May 5, 2000. reduce the impact of the AD by not (e) The actions shall be done in accordance The incorporation by reference of requiring operators who do not have the with British Aerospace Service Bulletin certain publications listed in the affected fuel strainer assemblies SB.54–10, dated September 16, 1999. This regulations is approved by the Director installed to have their airplanes incorporation by reference was approved by of the Federal Register as of May 5, unnecessarily inspected. the Director of the Federal Register in 2000. accordance with 5 U.S.C. 552(a) and 1 CFR The FAA concurs. Cessna part part 51. Copies may be obtained from British ADDRESSES: Service information that number (P/N) 0756005-2 top assemblies, Aerospace Regional Aircraft American applies to this AD may be obtained from Cessna P/N 0756005–8 fuel strainer Support, 13850 Mclearen Road, Herndon, the Cessna Aircraft Company, P.O. Box assemblies, or Cessna P/N 0756005–9 Virginia 20171. Copies may be inspected at 7706, Wichita, Kansas 67277; telephone: fuel strainer assemblies, that were the FAA, Transport Airplane Directorate, (316) 941–7550; facsimile: (316) 942– shipped between December 12, 1996, 1601 Lind Avenue, SW., Renton, 9008. This information may also be and September 5, 1997, may have been Washington; or at the Office of the Federal examined at the Federal Aviation manufactured with an internal tube Register, 800 North Capitol Street, NW., suite Administration (FAA), Central Region, 700, Washington, DC. installed to a depth less than specified. Office of the Regional Counsel, Note 4: The subject of this AD is addressed Attention: Rules Docket No. 97–CE– These parts may become loose and in British airworthiness directive 006–09–99. 114–AD, Room 506, 901 Locust, Kansas dislodge from the strainer top assembly. (f) This amendment becomes effective on City, Missouri 64106; or at the Office of If the owner/operator can make the April 26, 2000. the Federal Register, 800 North Capitol determination by checking the logbooks Issued in Renton, Washington, on March 9, Street, NW, suite 700, Washington, DC. that one of these parts is not installed 2000. FOR FURTHER INFORMATION CONTACT: Paul or was installed prior to December 12, Franklin Tiangsing, O. Pendleton, Aerospace Engineer, FAA, 1996, the measurement and possible Acting Manager, Transport Airplane Wichita Aircraft Certification Office, replacement requirements of paragraphs Directorate, Aircraft Certification Service. 1801 Airport Road, Room 100, Wichita, (a) and (b) of this AD would not apply [FR Doc. 00–6330 Filed 3–21–00; 8:45 am] Kansas 67209; telephone: (316) 946– and the owner/operator must make an BILLING CODE 4910±13±P 4143; facsimile: (316) 946–4407. entry into the aircraft records showing SUPPLEMENTARY INFORMATION: compliance with this portion of the AD in accordance with section 43.9 of the DEPARTMENT OF TRANSPORTATION Events Leading to the Issuance of This Federal Aviation Regulations (14 CFR AD 43.9). This final rule has been changed Federal Aviation Administration A proposal to amend part 39 of the to reflect this provision. Federal Aviation Regulations (14 CFR 14 CFR Part 39 part 39) to include an AD that would The FAA’s Determination [Docket No. 97±CE±114±AD; Amendment apply to Cessna 150, 152, 172, 177, 180, After careful review of all available 39±11641; AD 2000±06±01] 182, 185, 188, 206, 207, 210, and 337 information related to the subject series airplanes was published in the RIN 2120±AA64 presented above including the Federal Register as a notice of proposed comments discussed, the FAA has rulemaking (NPRM) on July 22, 1998 (63 Airworthiness Directives; Cessna determined that air safety and the Aircraft Company 150, 152, 172, 177, FR 39244). The NPRM proposed to require measuring the fuel strainer public interest require the adoption of 180, 182, 185, 188, 206, 207, 210, and the rule as proposed except for the 337 Series Airplanes assembly standpipe, and replacing any fuel strainer assembly that does not addition of the provision to check the AGENCY: Federal Aviation have a standpipe of the correct logbooks and minor editorial Administration, DOT. measurement. Accomplishment of the corrections. The FAA has determined ACTION: Final rule. proposed action as specified in the that this addition and the minor NPRM would be required in accordance corrections will not change the meaning SUMMARY: This amendment adopts a with Cessna Service Bulletins SEB97–9, of the AD and will not add any new airworthiness directive (AD) that dated November 17, 1997, and MEB97– additional burden upon the public than applies to Cessna Aircraft Company 12, dated November 17, 1997. was already proposed. (Cessna) 150, 152, 172, 177, 180, 182, The NPRM was the result of reports 185, 188, 206, 207, 210, and 337 series that the fuel strainer assemblies on the Cost Impact airplanes. This AD requires measuring affected airplanes were manufactured The FAA estimates that 50,000 the visible length of standpipe (tube) in with the fuel standpipes incorrectly the top assembly of the fuel strainer airplanes in the U.S. registry will be installed in the assembly housing top. affected by this AD. assembly for the correct length, and Interested persons have been afforded replacing any fuel strainer assembly that an opportunity to participate in the The measurement required by this AD does not have the correct length of making of this amendment. Due is estimated to take 1 workhour per standpipe. This AD is the result of consideration has been given to the airplane with the average labor rate at reports that the fuel strainer assemblies comments received from six different approximately $60 an hour. The total on the affected airplanes were entities. cost impact to accomplish the manufactured with the fuel standpipes inspection will be $3,000,000 for the Comment Disposition incorrectly installed in the assembly U.S. fleet, or $60 per airplane. housing top. The actions specified by All six commenters request that the The replacement of the fuel strainer this AD are intended to prevent foreign FAA include a provision for the owners/ assembly is estimated to take 2 material from entering the fuel system operators of the affected airplanes to

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00030 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15233 workhours per airplane with an average Applicability: All serial numbers of the (a) Within the next 12 calendar months labor rate of approximately $60 per following airplane models, certificated in any after the effective date of this AD, unless hour. Approximately 300 of the affected category, including those manufactured in already accomplished, measure the standpipe France that have a capital ‘‘F’’ or ‘‘FR’’ prefix in the fuel strainer assembly (tube in the parts are thought to have been filter strainer top assembly) for a visible manufactured. The cost of parts is on the model number: Models 150F, 150G, 150H, 150J, 150K, 150L, 150M, A150K, maximum length of 1.68 inches, in approximately $180 per airplane. A150L, A150M, A–150L, A–A150L, F150F, accordance with the ACCOMPLISHMENT Therefore, based on these figures, the F150G, F150H, F150J, F150K, F150L, F150M, INSTRUCTIONS section and Detail A in total cost impact to accomplish the FA150K, FA150L, FA150M, FRA150L, Cessna Single Engine Service Bulletin (SB) replacement, if applicable, on U.S. FRA150M, 152, A152, F152, FA152, 172F, No. SEB97–9, dated November 17, 1997; or operators is estimated to be $90,000, or 172G, 172H, 172I, 172K, 172L, 172M, 172N, Cessna Multi-engine SB No. MEB97–12, $300 per airplane. 172P, 172Q, R172E (T41), R172F (T41), dated November 17, 1997, whichever is R172G (T41), R172H (T41), R172J, R172K, applicable. Regulatory Impact 172RG, F172F, F172G, F172H, F172K, F172L, (b) If the standpipe does not measure a maximum length of 1.68 inches, prior to The regulations adopted herein will F172M, F172N, F172P, FR172E, FR172F, FR172G, FR172H, FR172J, FR172K, 177, further flight, replace the filter strainer top assembly in accordance with the not have a substantial direct effect on 177A, 177B, 177RG, F177RG, 180H, 180J, ACCOMPLISHMENT INSTRUCTIONS the States, on the relationship between 180K, 182H, 182J, 182K, 182L, 182M, 182N, section in Cessna Single Engine SB No. the national government and the States, 182P, 182Q, 182R/T182, 182R, R182, R182/ SEB97–9, dated November 17, 1997; or or on the distribution of power and TR182, A182J, A182K, A182L, A182N, Cessna Multi-engine SB No. MEB97–12, responsibilities among the various F182P, F182Q, FR182, 185D, 185E, A185E, dated November 17, 1997, whichever is levels of government. Therefore, it is A185F, 188, A188, 188A, A188A, 188B, applicable. determined that this final rule does not A188B, T188C, A–A188B, U206, U206A, (c) The owner/operator holding at least a have federalism implications under TU206A, U206B/TU206B, U206C/TU206C, private pilot certificate as authorized by Executive Order 13132. U206D/TU206D, U206E/TU206E, U206F/ section 43.7 of the Federal Aviation TU206F, U206G/TU206G, P206, P206A, For the reasons discussed above, I Regulations (14 CFR 43.7) may check the TP206A, P206B/TP206B, P206C/TP206C, maintenance records to determine whether a certify that this action (1) is not a P206D/TP206D, P206E/TP206E, 207/T207, Cessna part number (P/N) 0756005–2 top ‘‘significant regulatory action’’ under 207A/T207A, 210E, 210F, 210G, 210H, 210J, assembly, Cessna P/N 0756005–8 fuel Executive Order 12866; (2) is not a 210K/T210K, 210L/T210L, 210M/T210M, strainer assembly, or a Cessna P/N 0756005– ‘‘significant rule’’ under DOT 210N/T210N, T210F, T210G, T210H, T210J, 9 fuel strainer assembly was installed after Regulatory Policies and Procedures (44 P210N, 337, 337A, 337B/T337B, M337B, December 12, 1996. Those parts that were FR 11034, February 26, 1979); and (3) 337C/T337C, 337D/T337D, 337E/T337E, shipped between December 12, 1996, and will not have a significant economic 337F, T337F, 337G, 337H/T337H, T337H–SP, September 5, 1997, may have been T337G, P337H, F337E/FT337E, F337F/ impact, positive or negative, on a manufactured with an internal tube installed FT337F, F337G, F337H, FTB337, FT337GP, to a depth less than specified and may substantial number of small entities and FT337HP. become loose and dislodge from the strainer under the criteria of the Regulatory Note 1: This AD applies to each airplane top assembly. If, by checking the Flexibility Act. A copy of the final identified in the preceding applicability maintenance records, the owner/operator can evaluation prepared for this action is provision, regardless of whether it has been make an absolute determination that one of contained in the Rules Docket. A copy modified, altered, or repaired in the area these parts is not installed or was installed of it may be obtained by contacting the subject to the requirements of this AD. For prior to December 12, 1996, the requirements Rules Docket at the location provided airplanes that have been modified, altered, or of paragraphs (a) and (b) of this AD do not apply. The owner/operator must make an under the caption ADDRESSES. repaired so that the performance of the requirements of this AD is affected, the entry into the aircraft records showing List of Subjects in 14 CFR Part 39 owner/operator must request approval for an compliance with this portion of the AD in alternative method of compliance in accordance with section 43.9 of the Federal Air transportation, Aircraft, Aviation accordance with paragraph (f) of this AD. The Aviation Regulations (14 CFR 43.9). safety, Incorporation by reference, request should include an assessment of the (d) As of the effective date of this AD, no Safety. effect of the modification, alteration, or repair person may install, on any of the affected Cessna airplanes, a fuel filter assembly where on the unsafe condition addressed by this Adoption of the Amendment the maximum length of the standpipe does AD; and, if the unsafe condition has not been not measure 1.68 inches. eliminated, the request should include Accordingly, pursuant to the (e) Special flight permits may be issued in specific proposed actions to address it. authority delegated to me by the accordance with sections 21.197 and 21.199 Administrator, the Federal Aviation Compliance: Required as indicated in the of the Federal Aviation Regulations (14 CFR body of this AD. 21.197 and 21.199) to operate the airplane to Administration amends part 39 of the To prevent foreign material from entering Federal Aviation Regulations (14 CFR a location where the requirements of this AD the fuel system and engine, which could can be accomplished. part 39) as follows: result in loss of engine power or complete (f) An alternative method of compliance or engine stoppage during flight, accomplish the adjustment of the compliance time that PART 39ÐAIRWORTHINESS following: provides an equivalent level of safety may be DIRECTIVES Note 2: This AD allows the aircraft owner approved by the Manager, FAA, Wichita or pilot to check the maintenance records to Aircraft Certification Office (ACO), 1801 1. The authority citation for part 39 determine whether a Cessna part number (P/ Airport Road, Room 100, Wichita, Kansas continues to read as follows: N) 0756005–2 top assembly, Cessna P/N 67209. The request shall be forwarded Authority: 49 U.S.C. 106(g), 40113, 44701. 0756005–8 fuel strainer assembly, or a through an appropriate FAA Maintenance Cessna P/N 0756005–9 fuel strainer assembly Inspector, who may add comments and then § 39.13 [Amended] was installed after December 12, 1996. Those send it to the Manager, Wichita ACO. 2. Section 39.13 is amended by parts that were shipped between December Note 3: Information concerning the existence of approved alternative methods of adding a new airworthiness directive 12, 1996, and September 5, 1997, may have been manufactured with an internal tube compliance with this (AD) to read as follows: installed to a depth less than specified and AD, if any, may be obtained from the 2000–06–01 Cessna Aircraft Company: may become loose and dislodge from the Wichita ACO. Amendment 39–11641; Docket No. 97– strainer top assembly. See paragraph (c) of (g) The measurement and replacement CE–114–AD. this AD for authorization. required by this AD shall be done in

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15234 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations accordance with Cessna Single Engine adding certain other environmental them; and (3) Updated the Service Bulletin (SB) No. SEB97–9, dated requirements. environmental requirements for projects November 17, 1997, or Cessna Multi-engine DATES: The revisions to the regulations under the Natural Gas Act (NGA). SB No. MEB97–12, dated November 17, 1997. The Commission received rehearing/ This incorporation by reference was in this order on rehearing become approved by the Director of the Federal effective April 21, 2000. clarification requests from three parties including Columbia Gas Transmission Register in accordance with 5 U.S.C. 552(a) ADDRESSES: Federal Energy Regulatory and 1 CFR part 51. Copies may be obtained Commission, 888 First Street, N.E., Corporation (Columbia), Interstate from the Cessna Aircraft Company, P. O. Box Washington, D.C. 20426. Natural Gas Association of America 7706, Wichita, Kansas 67277. Copies may be (INGAA), and Williston Basin Interstate FOR FURTHER INFORMATION CONTACT: inspected at the FAA, Central Region, Office Pipeline Company (Williston Basin). of the Regional Counsel, Room 506, 901 John S. Leiss, Office of Energy Projects, Travis Kenneth Bynum filed a ‘‘Motion Locust, Kansas City, Missouri, or at the Office Federal Energy Regulatory of the Federal Register, 800 North Capitol to Deny Rehearing,’’ alleging that the Commission, 888 First Street, N.E., motions of the other parties failed to Street, NW, suite 700, Washington, DC. Washington, DC 20426, (202) 208– (h) This amendment becomes effective on establish error on the part of the May 5, 2000. 1106 Commission. We address each of the Carolyn Van Der Jagt, Office of the requests for rehearing/clarification General Counsel, Federal Energy Issued in Kansas City, Missouri, on March below, granting or denying them as Regulatory Commission, 888 First 10, 2000. discussed herein. Michael Gallagher, Street, NE, Washington, DC 20426, Manager, Small Airplane Directorate, Aircraft (202) 208–2246. III. Discussion Certification Service. SUPPLEMENTARY INFORMATION: A. Landowner Notification [FR Doc. 00–6615 Filed 3–21–00; 8:45 am] I. Introduction In the Final Rule, the Commission BILLING CODE 4910±13±P In this order the Federal Energy required in § 157.6(d) that all applicants Regulatory Commission (Commission) is seeking authorization under Part 157 of modifying and clarifying certain aspects the Commission’s regulations notify all DEPARTMENT OF ENERGY of the Final Rule issued in Order No. affected landowners of record, as 1 Federal Energy Regulatory 609. Generally, this order: (1) Requires indicated in the most recent tax rolls, of Commission that the Commission’s notice of their application by certified or first application and information on how to class mail (or by hand) within three (3) 18 CFR Parts 157 and 380 intervene be included in the notification business days following the date a to affected landowners; (2) Expands the docket number is assigned to the filed [Docket No. RM98±17±001; Order No. 609± definition of ‘‘affected landowner’’ to application. A] include owners of residences within 50 feet of the proposed construction work 1. Notification of Intervention Deadline Landowner Notification, Expanded area; (3) Clarifies the requirements for The intent of the Commission in Categorical Exclusions, and Other the newspaper notice; (4) Explains how implementing § 157.6(d) was to ensure Environmental Filing Requirements the notice requirement pertains to that landowners who may be affected by Issued March 16, 2000. storage fields; (5) Denies a request to a pipeline’s proposal to construct AGENCY: Federal Energy Regulatory eliminate the requirement to provide an natural gas pipeline facilities have Commission. explanation of state eminent domain sufficient opportunity to participate in ACTION: Final Rule; Order on Rehearing. laws; (6) Allows a waiver of the 30-day the Commission’s certificate process. In notice requirement for blanket activities the Final Rule, we required that the SUMMARY: On rehearing the Federal when the landowner agrees to the notice mailed by applicants to affected Energy Regulatory Commission waiver and/or when the landowner landowners include, among other (Commission) reaffirms its basic requests the service/facility; (7) Requires information: (1) The docket number of determinations in Order 609 and no notification for non-ground the filing; (2) The most recent edition of modifies and clarifies certain aspects of disturbing projects; and (8) Clarifies that the Commission’s pamphlet explaining the Final Rule. Order 609 added certain new injection/withdrawal wells cannot the Commission’s certificate process; early landowner notification be constructed under § 2.55 of the and (3) A brief summary of what rights requirements to its regulations under Commission’s regulations or under a the landowner has at FERC. However, the Natural Gas Act (NGA) that will pipeline’s blanket certificate we did not require that the notice ensure that landowners who may be authorization. include the deadline for interested affected by a pipeline’s proposal to parties to file timely requests to II. Background construct natural gas pipeline facilities intervene in the Commission’s have sufficient opportunity to On October 13, 1999, the Commission proceedings on the application. participate in the Commission’s issued a Final Rule in Order No. 609. The reason for that omission is that certificate process. The Final Rule also The Final Rule: (1) Provided for earlier § 157.6(d) requires notice to be sent amended certain areas of its regulations and more informed landowner within three business days of the date to provide pipelines with greater involvement in natural gas projects; (2) a docket number is assigned to the filed flexibility and to further expedite the Streamlined the regulation process by application, whereas the Commission’s certificate process, including: expanding categorically excluding certain types of notice establishing the intervention the list of activities categorically activities from the need to have an deadline may not be issued for up to ten excluded from the need for an Environmental Assessment prepared for days after the date the application is Environmental Assessment under the filed. Currently, the Commission’s Commission’s regulations; expanding 1 Landowner Notification, Expanded Categorical notice is published in the Federal Exclusions, and Other Environmental Filing the types of events that allow pipelines Requirements, Order No. 609, 64 FR 57374, (Oct. Register and is available to the public to rearrange facilities under their 25,1999), FERC Stats. and Regs. ¶31,082 (Oct. 13, electronically on the Commission’s blanket construction certificates; and 1999). Internet web site, but is not sent directly

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15235 to any party. Thus, after receiving notice Therefore, we will modify First, we note that items (1), (2), and of an application from the applicant, § 157.6(d)(2)(ii) to include owners of (3) should not involve a substantial affected landowners will generally residences within 50 feet of the amount of text and are basic to the know how to get involved in the proposed construction work area. purpose of the notification. proceedings before the Commission, but 3. Newspaper Notification Accordingly, that information should be will not know, without further effort on printed in the newspaper to ensure the their part, by when they must act to do Section 157.6(d)(1)(iii) requires that public can quickly judge whether or not so in a timely manner. Further, while the applicant include a notice of the the project is of interest to them. project in a newspaper(s) of general the Commission has, and will continue Similarly, including a general location circulation in the project area within a to liberally exercise its discretion in map complements the project week of the filing. Pursuant to the granting late-intervenor status to description and has the advantage of provisions of § 157.6(d)(3), this notice requesting landowners and other reducing inquiries from people who interested parties, many landowners must include: (1) The docket number of the filing; (2) A description of the might otherwise be unsure of their resent having to request what they see physical relationship to the project’s 2 applicant and the proposed project, the as special permission to participate. location. Therefore, those items should To rectify this situation, we will project’s location (including a map), its purpose, and proposed timing; (3) A continue to be part of the newspaper modify the requirements of § 157.6(d)(3) notification. to require that the notice mailed to general description of what the pipeline affected landowners include a copy of will need from the landowner if the However, we find that at least a the Commission’s notice of the project is approved; (4) How to contact portion of (5) may be unnecessary for application, specifically stating the date the applicant for further information; (5) the published newspaper notice. While by which timely motions to intervene A brief summary of what rights a person affected landowners, as defined by the are due, together with the Commission’s has at the Commission and their rights regulations, have a need for basic information sheet on how to intervene under the eminent domain rules in the information regarding eminent domain, in Commission proceedings. This sheet relevant state; and (6) Information on the general public may not, since there is available on the Commission’s how to get a copy of the application is little chance that persons not meeting Internet Website at http:// from the applicant or where copies of the regulation’s definition of ‘‘affected www.ferc.fed.us/public/intervene.htm. the application may be located for landowner’’ will be subject to To make the inclusion of these public review. condemnation. In addition, we believe documents possible, we will also Comment that publishing the Commission’s Internet Website address and the modify § 157.6(1)(i) to require that the On rehearing, INGAA states that as notice be sent within three days of the the regulation is currently written, the telephone number for the Commission’s date the Commission notice is issued, entire list of items that must be included Office of External Affairs will provide rather than the date a docket number is in the landowner notification letter also sufficient information to enable those assigned. Finally, we will require that must be included in the newspaper members of the general public who the notice be mailed not only to affected notification. INGAA asserts that this is desire to become involved in the landowners, but also to all towns, a substantial amount of information to Commission’s proceeding to do so. We communities, and local, state and be printed in the newspaper. It suggests will modify § 157.6(d)(3)(v) accordingly. federal government agencies involved in that the newspaper notice should only We will also modify § 157.6(d)(3)(ii) to the project. This expanded mailing list include the fact that an application has clarify that while pipelines are not corresponds to those entities generally been filed at the Commission, the required to include the Commission’s receiving the Commission’s Notice of docket number, a general description of pamphlet in the published notice, they Intent to prepare an environmental the route of the project, identification of should provide the title of the pamphlet assessment of a project. a company contact person, and where and indicate its availability at the 2. Affected Landowners copies of the application may be Commission’s Internet address. accessed. It also suggests that the Section 157.6(d)(2)(ii) defines Finally, we note that the regulations newspaper notice only identify the ‘‘affected landowner’’ to include owners are silent as to the length of time the other items that are listed in whose property ‘‘abuts either side of an notice needs to be published in the § 157.6(d)(3) and allow the reader to existing right-of-way or facility site newspaper. We will clarify that the contact the applicant if they wish more owned in fee by any utility company, or newspaper notice must be published detailed information. It says this would abuts the edge of a proposed right-of- twice in a daily or weekly newspaper of avoid the lengthier and costlier way which runs along a property line in general circulation in each county in newspaper notice that is currently the area in which the facilities would be which the project is located. This is required. constructed.’’ However, there may be consistent with the Commission’s instances where there is a residence in Commission Response regulations under the Federal Power Act in § 4.32(b)(6) of the Commission’s close proximity to the proposed right-of- Generally, INGAA’s suggestion way, but located on a parcel of land includes most of the items required for regulations. We will modify which does not abut the proposed right- the landowner notice. The items INGAA § 157.6(d)(1)(iii) accordingly. of-way. Such property owners would proposes be omitted from the published 4. Storage Fields clearly be affected by the proposed notice include (1) A description of the construction, but would not receive company, (2) The project’s purpose and As adopted in the Final Rule, direct notification of the proposal under timing, (3) A general description of what § 157.6(d)(2)(iv) defines affected the requirement as stated above. will be needed from landowners if the landowners subject to the notice project is approved, (4) A general requirement as landowners whose land 2 We note that pursuant to § 380.10 of the is ‘‘within the area of new storage fields Commission’s regulations, interested persons may location map, and (5) A summary of the have subsequent opportunities to file timely landowner’s rights at the Commission or expansions of storage fields, interventions on environmental issues. and in eminent domain proceedings. including any applicable buffer zone.’’

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Comment that the Commission eliminate this 6. Blanket Projects. INGAA and Williston Basin contend requirement. In the alternative, INGAA In the Final Rule, § 157.203(d)(1) that the discussion of this section in the requests that the Commission clarify requires that the pipeline notify any Final Rule is unclear and may imply a that a pipeline will have sufficiently affected landowner of a project which is broader notification requirement than is complied with this section if it cites the automatically approved under the intended in the codified state statutes, as of the date of the filing blanket certificate program of Subpart F § 157.6(d)(2)(iv). They request that the of the application, related to eminent of Part 157 of the Commission’s Commission clarify that pipelines are domain. regulations. The notification must be only required to notify surface and Further, INGAA requests that the provided at least 30 days prior to the subsurface owners when proposing to Commission clarify that since the beginning of construction activities or at develop and operate new storage fields Commission’s pamphlet explains a the time easement negotiations begin, or when expanding the boundaries of landowner’s rights at the Commission, whichever is earlier. existing storage fields. They assert that § 157.6(d)(3)(v) is satisfied by the Comments storage fields encompass thousands of applicant’s providing the Commission’s acres and have potentially hundreds of pamphlet. It asserts that requiring the INGAA and Williston Basin request surface and subsurface property owners pipeline to separately summarize a that the Commission allow landowners and that it would be burdensome and landowner’s rights at the Commission to waive the 30-day notice period when costly to notify all property interest would be duplicative and may cause the landowner is provided notification owners within the entire certificated confusion if the pipeline’s phrasing is of a proposed project. They contend that storage boundaries when a pipeline is different from the pamphlet’s phrasing. if the landowner agrees to waive the 30- replacing facilities under its blanket day notice period the pipeline should be authority. Columbia makes a similar Commission Response able to proceed with construction argument. without the Commission requiring We believe that the applicant should approval of the waiver from the Director Commission Response provide landowners with some basic of the Office of Energy Projects. information concerning what is Under § 157.6(d)(2)(iv), if a new INGAA also requests that the involved in the eminent domain storage field is proposed, all owners of Commission clarify that landowner process. The general public is probably surface and subsurface property within notice is not required for minor blanket the boundaries of the field and its buffer not greatly informed on these matters projects that do not impact a zone need to be notified of the project. and may need to invest significant time landowner’s property. This would If an existing storage field is proposed and money just to get a basic include projects that are completely for expansion, all the surface and understanding. We do not believe that within the boundaries of an existing subsurface owners of property within providing this information would put facility site or building, do not result in the area between the existing certificate the applicant at risk for unnecessary ground disturbance or, in the case of boundary and the proposed new litigation, especially if the applicant compression, do not increase air or certificate boundary of the field and its prefaces its explanation with a noise emissions. buffer zone need to be notified. If new disclaimer statement. Additionally, Williston Basin argues facilities are being added within the Guardian Pipeline’s (Guardian) that no notification should be required existing certificate boundaries of an Landowner Rights summary, filed in for blanket activities involving existing storage field and there is no Docket No. CP00–36–000 and provided construction within existing rights-of- change to the certificated boundaries, to affected landowners in that way pursuant to existing easements. It then § 157.6(d)(2)(iv) does not apply. proceeding (and also posted on its However, in the latter case, asserts that the landowner has already Internet Website at §§ 157.6(d)(2)(i) through (ii) would given an easement and as long as the www.guardianpipeline.com), is a good apply. pipeline’s use is consistent with that example of what the Commission easement there is no reason for the 5. Eminent Domain Proceedings and expects the applicant to provide to the landowner to be notified that the Landowner Rights landowners. It starts with a disclaimer pipeline is performing activities allowed In the Final Rule, § 157.6(d)(3)(v) statement and recommends that if the by that easement. Further, it claims that requires the notice to include a individual has any questions about their it is inconsistent for the Commission to description of the rights a landowner rights, they should seek the advice of an treat identical facilities installed under has in proceedings at the Commission attorney. Next, it refers to the § 157.211 (e.g., farm taps) and § 2.55(b) and in eminent domain proceedings in Commission’s pamphlet and gives a differently. It argues that activities state court. short summary of the landowners’ rights performed under the two provisions at the Commission. After this summary, have similar effects on landowners. Comments it refers readers to the Commission’s Commission Response INGAA states that the requirement to Office of External Affairs for further summarize state eminent domain laws information. It then briefly summarizes First, we agree that the landowners is unreasonable. Specifically, INGAA the pipeline’s general right to eminent should be allowed to specifically waive contends that this notice requirement domain and summarizes the eminent the 30-day notice period in writing, as could result in landowners claiming domain laws in Wisconsin and Illinois. long as they are provided the notice. We that they have been given legal advice. Finally, it refers readers to the have modified § 157.203(d)(1) INGAA claims that pipelines should not Wisconsin Department of Commerce accordingly. We note that on January 5, be required to provide any legal opinion and the Illinois Attorney General, 2000, Reliant Energy Gas Transmission as to what a landowner’s rights are respectively, for further information on Company (Reliant) filed an application under the eminent domain rules of the the individual state laws. We believe in Docket No. CP00–66–000 seeking a state because any omissions or mistaken this format meets the requirements of general waiver of the 30-day notice statements could expose the pipeline to our regulations without subjecting the requirement when the construction has unnecessary litigation. INGAA requests applicant to any legal liability. been requested by the landowner, only

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15237 that landowner’s property will be the application or at the time the C. Other Clarifications affected by the construction, and the pipeline initiates easement negotiations, Finally, we have made a few landowner has waived the 30-day whichever is earlier’’, to be consistent typographical corrections to the period. We believe that there is no need with the case-specific requirement. minimum filing requirements in to require any landowner notification in Commission Response Appendix A to Part 380. this circumstance. Therefore, we are providing an exception in We agree and have modified IV. Document Availability § 157.6(d)(3)(iii) which makes § 157.203(d)(2) accordingly. In addition to publishing the full text notification unnecessary under these B. Observation Wells of this document in the Federal circumstances. This action will moot Register, the Commission provides all In the Final Rule, the Commission Reliant’s request and we will issue a interested persons an opportunity to stated that observation wells can be separate order dismissing that view and/or print the contents of this constructed under § 2.55 of the proceeding. document via the Internet through Commission’s regulations. The Final With respect to minor, non-ground FERC’s Home Page (http:// Rule also clarified that replacement disturbing projects, we agree that no www.ferc.fed.us) and in FERC’s Public wells can be constructed under § 2.55(b) landowner notification is required as Reference Room during normal business if the wells fit the requirements of that long as projects do not materially hours (8:30 a.m. to 5:00 p.m. Eastern section. change the appearance of the site. We time) at 888 First Street, N.E., Room 2A, have modified § 157.203(d)(3)(iv) Comment Washington, DC 20426. accordingly. On rehearing, INGAA and Williston From FERC’s Home Page on the Finally, as stated in Order No. 609, Internet, this information is available in the Commission wants the opportunity Basin request that the Commission clarify that the restrictions in § 2.55 that both the Commission Issuance Posting to hear and act on landowners’ concerns System (CIPS) and the Records and when the pipeline conducts an activity require that the replacement facilities be ‘‘in the same right-of-way or on the Information Management System subject to the Commission’s (RIMS). jurisdiction. Facilities constructed same site’’ do not apply to replacement under § 2.55 are exempt from the wells. They contend that replacement —CIPS provides access to the texts of Commission’s jurisdiction, whereas wells are usually in close proximity, but formal documents issued by the activities performed under the are generally not in the same exact Commission since November 14, pipelines’ blanket certificates are subject location, as the original facility. 1994. —CIPS can be accessed using the CIPS to the Commission’s jurisdiction. Accordingly, they request that the link or the Energy Information Online Further, facilities which may be Commission either clarify that the site icon. The full text of this document is constructed under §§ 157.211 or 157.208 restrictions in § 2.55(b)(1)(ii) are not available on CIPS in ASCII and are different from those constructed applicable to replacement wells or that WordPerfect 8.0 format for viewing, under § 2.55. In the latter case, an replacements wells that do not qualify printing, and/or downloading. existing facility is being replaced by the under § 2.55(b) because of the site restriction can be drilled under the —RIMS contains images of documents same kind of facility, in the same submitted to and issued by the location, entirely within an existing pipeline’s blanket certificate as long as those wells do not alter the certificated Commission after November 16, 1981. easement. Facilities constructed under Documents from November 1995 to blanket authority (either under deliverability, capacity, or boundary of the field. the present can be viewed and printed § 157.211 or § 157.208) are usually at from FERC’s Home Page using the least partially outside of existing Commission Response RIMS link or the Energy Information easements and are new. It is appropriate It was the Commission’s intent that Online icon. Descriptions of for the landowner to receive advance documents back to November 16, notice of such construction, even when only replacement facilities which are in the same right-of-way or on the same 1981, are also available from RIMS- it is anticipated by the existing on-the-Web; requests for copies of easement. A signed easement agreement site as the original facilities be constructed under § 2.55(b). Therefore, these and other older documents does not limit the right of a landowner should be submitted to the Public to express concerns regarding additional we cannot clarify the provision as proposed by the commenters. Moreover, Reference Room. uses of the land to the Commission, or User assistance is available for RIMS, to the company itself. The notice as stated in Order Nos. 603–A, 603–B, and 609, the Commission does not CIPS, and the Website during normal provides the landowner the opportunity business hours from our Help line at to contact the pipeline or the believe that blanket certificate authorization provides adequate (202) 208–2222 (E-Mail to Commission and to express such [email protected]) or the Public concerns. oversight of the construction of new injection/withdrawal wells, including Reference at (202) 208–1371 (E-Mail to 7. Prior Notice Projects those intended to replace existing wells, [email protected]). During normal business hours, In the Final Rule, § 157.203(d)(2) but constructed at a different site. documents can also be viewed and/or requires that the pipeline notify any Despite the fact that they are only printed in FERC’s Public Reference affected landowner within three days of intended to replace existing facilities, Room, where RIMS, CIPS, and the FERC making the prior notice filing or at the such wells may inherently alter the Website are available. User assistance is time easement negotiations begin, daily or seasonal deliverability, also available. whichever is earlier. volumetric capacity, or boundary of a storage reservoir. Accordingly, separate List of Subjects Comment NGA section 7(c) authorization is INGAA requests that the Commission necessary prior to the drilling of 18 CFR Part 157 revise this section to require notification replacement injection/withdrawal wells Administrative practice and ‘‘within 3 business days following the that are not on the site of the original procedure, Natural gas, Reporting and date that a docket number is assigned to facilities. Record keeping requirements.

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18 CFR Part 380 within 50 feet of the proposed (2) For activities described in Environmental impact statements, construction work area; paragraph (c) of this section, the Reporting and recordkeeping * * * * * company shall make a good faith effort requirements. (iv) Is within the area of proposed to notify all affected landowners, as new storage fields or proposed defined in § 157.6(d)(2), within at least By the Commission. expansions of storage fields, including three business days following the date David P. Boergers, any applicable buffer zone. that a docket number is assigned to the Secretary. (3) * * * application or at the time it initiates In consideration of the foregoing, the (ii) * * * Except: pipelines are not easement negotiations, whichever is Commission amends Parts 157 and 380, required to include the pamphlet in earlier. The notice should include at Chapter I, Title 18, Code of Federal notifications of abandonments or in the least: Regulations, as follows. published newspaper notice. Instead, * * * * * they should provide the title of the (3) * * * PART 157ÐAPPLICATIONS FOR pamphlet and indicate its availability at (iii) No landowner notice is required CERTIFICATES OF PUBLIC the Commission’s Internet address; if there is only one landowner and that CONVENIENCE AND NECESSITY AND * * * * * landowner has requested the service or FOR ORDERS PERMITTING AND (v) A brief summary of what rights the facilities. APPROVING ABANDONMENT UNDER landowner has at the Commission and (iv) No landowner notice is required SECTION 7 OF THE NATURAL GAS in proceedings under the eminent for activities that do not involve ground ACT domain rules of the relevant state. disturbance or changes to operational Except: pipelines are not required to air and noise emissions. 1. The authority citation for Part 157 include this information in the continues to read as follows: published newspaper notice. Instead, PART 380Ð[AMENDED] the newspaper notice should provide Authority: 15 U.S.C. 717–717w, 3301– 4. In Appendix A to Part 380: 3432; 42 U.S.C. 7101–7352. the Commission’s Internet address and a. The reference to ‘‘(§§ 380.12 (a)(4) the telephone number for the 2. In § 157.6, paragraphs (d)(1) and (c)(10))’’ in paragraph number 8 Commission’s Office of External Affairs; introductory text, (d)(1)(i) and (d)(1)(iii), under Resource Report 1—General and (d)(2)(ii) and (d)(2)(iv), the last sentence Project Description is revised to read of paragraph (d)(3)(ii) and paragraph * * * * * ‘‘(§ 380.12(c)(10))’’; (d)(3)(v) are revised; and a new (vii) A copy of the Commission’s b. The reference to ‘‘(§ 380.12 (f)(1)(ii) paragraph (d)(3)(vii) is added to read as notice of application, specifically stating & (2))’’ in paragraph number 1 under follows: the date by which timely motions to Resource Report 4—Cultural Resources intervene are due, together with the is revised to read ‘‘(§ 380.12 (f)(1)(i) & § 157.6 Applications; general Commission’s information sheet on how requirements. (2))’’; to intervene in Commission c. The reference to ‘‘(§ 380.12 (f)(1)(iii) * * * * * proceedings. Except: pipelines are not & (2))’’ in paragraph number 2 under (d) * * * required to include the notice of Resource Report 4 is revised to read (1) For all applications filed under application and information sheet in the ‘‘(§ 380.12 (f)(1)(ii) & (2))’’; and this subpart which include construction published newspaper notice. Instead, d. The reference to ‘‘(§ 380.12 (l)(3))’’ of facilities or abandonment of facilities the newspaper notice should indicate in paragraphs number 4 and 5 under (except for abandonment by sale or that a separate notice is to be mailed to Resource Report 10—Alternatives is transfer where the easement will affected landowners and governmental revised to read ‘‘(§ 380.12 (l)(2)(ii))’’. continue to be used for transportation of entities. natural gas), the applicant shall make a [FR Doc. 00–7062 Filed 3–21–00; 8:45 am] * * * * * BILLING CODE 6717±01±P good faith effort to notify all affected 3. In § 157.203, paragraphs (d)(1) landowners and towns, communities, introductory text and (d)(2) introductory and local, state and federal governments text are revised and new paragraphs and agencies involved in the project: (d)(3)(iii) and (d)(3)(iv) are added to DEPARTMENT OF TRANSPORTATION (i) By certified or first class mail, sent read as follows: within 3 business days following the Coast Guard date the Commission issues a notice of § 157.203 Blanket certification. the application; or * * * * * 33 CFR part 117 (ii) * * * (d) * * * [CGD09±00±001] (iii) By publishing notice twice of the (1) Except as identified in paragraph filing of the application, no later than 14 (d)(3) of this section, no activity RIN±2115±AE47 days after the date that a docket number described in paragraph (b) of this section is authorized unless the Drawbridge Operation Regulations; is assigned to the application, in a daily Pine River (Charlevoix), MI or weekly newspaper of general company makes a good faith effort to circulation in each county in which the notify all affected landowners, as AGENCY: Coast Guard, DOT. defined in § 157.6(d)(2), at least 30 days project is located. ACTION: Direct final rule. (2) * * * prior to commencing construction or at (ii) Abuts either side of an existing the time it initiates easement SUMMARY: By this direct final rule, right-of-way or facility site owned in fee negotiations, whichever is earlier. A Commander, Ninth Coast Guard District, by any utility company, or abuts the landowner may waive the 30-day prior is changing the regulations governing edge of a proposed facility site or right- notice requirement in writing as long as the U.S. Route 31 lift bridge, mile 0.3 of-way which runs along a property line the notice has been provided. The over Pine River in Charlevoix, in the area in which the facilities would notification shall include at least: Michigan. Currently, the bridge is be constructed, or contains a residence * * * * * required to open twice an hour between

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6 a.m. and 6 p.m. for recreational comment was received and announcing vessels, vessels seeking shelter from vessels all year long. This rule will confirmation that this rule will become severe weather, and vessels in distress allow the bridge to open for recreational effective as scheduled. However, if the where a delay would endanger life or vessels twice an hour between 6 a.m. Coast Guard receives written adverse property. Between January 1 and March and 10 p.m., April 1 through October comment, the Coast Guard will publish 31, the bridge will open on signal if at 31, and require a 12-hour notice from all in the final rule section of the Federal least 12 hours advance notice is vessels for openings between January 1 Register a timely withdrawal of this provided by vessels prior to their and March 31. rule. If the Coast Guard decides to intended time of passage. DATES: This rule is effective June 20, proceed with a rulemaking, a separate The vehicular traffic count and bridge 2000, unless the Coast Guard receives Notice of Proposed Rulemaking (NPRM) opening data provided by M–DOT written adverse comments or written will be published and a new indicated (during a 2-week sample notice of intent to submit adverse opportunity for comment provided. period between August 16 and August comments on or before May 22, 2000. If A comment is considered ‘‘adverse’’ if 29, 1998) that requests for bridge adverse comment is received, the Coast the comment explains why this rule openings averaged 1.4 times per day Guard will publish a timely withdrawal would be inappropriate, including a between the hours of 10 p.m. and 6 a.m., or this rule in the Federal Register. challenge to the rule’s underlying with 30.6 openings per day between the premise or approach, or would be hours of 6 a.m. and 10 p.m. During this ADDRESSES: Comments may be mailed ineffective or unacceptable without a same sample period, 230.5 vehicles per or delivered to: Commander (obr), Ninth change. hour crossed the bridge between the Coast Guard District, 1240 East Ninth hours of 10 p.m. and 6 a.m., and 1186 Street, Room 2019, Cleveland, OH Background and Purpose vehicles per hour crossed between 6 44199–2060 between 6:30 a.m. and 3 The owner of the bridge, Michigan a.m. and 10 p.m. Between 10 p.m. and p.m., Monday through Friday, except Department of Transportation (M–DOT), 6 a.m., the fewest number of vehicles Federal holidays. The telephone number requested the Coast Guard approve a recorded (60) crossed between the 3 is (216) 902–6084. modified schedule for the bridge to a.m. to 4 a.m. hour, while the largest The District Commander maintains reduce vehicular traffic delays in number of vehicles (660) crossed the public docket for this rulemaking. Charlevoix, MI, during the peak tourist between the 11 p.m. to 12 a.m. hour. Comments will become part of this season and to establish a permanent Between 6 a.m. and 10 p.m., the fewest docket and will be available for winter operating schedule. The bridge is number of vehicles recorded (333) inspection or copying at the address currently required to open on signal for crossed during the 6 .a.m. to 7 a.m. above. recreational vessels from three minutes hour, while the largest number of FOR FURTHER INFORMATION CONTACT: Mr. before to three minutes after the hour vehicles (1572) crossed during the 2 Scot M. Striffler, Project Manager, Ninth and half-hour between the hours of 6 p.m. to 3 p.m. hour. The bridge opening Coast Guard District Bridge Branch, at a.m. and 6 p.m. throughout the year. M– logs showed 221 opening in the month (216) 902–6084. DOT has secured voluntary of October 1998 with a mixture of SUPPLEMENTARY INFORMATION: participation from local boaters since recreational and commercial (or public) 1991 to extend the scheduled twice-an- vessels. In November 1998, 81 openings Request for Comments hour openings between 6 p.m. and 10 were recorded, with only 8 of the 81 The Coast Guard encourages p.m. on an annual basis. Additionally, specifically for recreational vessels. interested persons to participate in this the City of Charlevoix receives a large Only 32 openings were recorded in rulemaking by submitting written data, influx of tourist traffic between April December 1998 (none for recreational views or arguments for or against this and November, and has endorsed this vessels), with 2 openings logged in both rule. Persons submitting comments schedule as a means to reduce vehicular January and February, 1999. There were should include names and addresses, traffic back-ups during their peak tourist 8 openings logged for March 1999, and identify the rulemaking [CGD09–00– season. Under the provisions of 33 CFR 105 openings for April 1999, including 001] and the specific section of this rule 117.45, M–DOT has requested, and a large number of recreational vessels. to which each comment applies, and received, permission from Commander, The Coast Guard concludes that the give the reason(s) for each comment. Ninth Coast Guard District, to operate dates and times requested by M–DOT Please submit all comments and the bridge with 12-hour advance notice for this rule will adequately provide for attachments in an unbound format, no from vessels between January 1 and the reasonable needs of navigation and larger than 81⁄2 by 11 inches, suitable for March 31 since 1991. The Coast Guard help reduce vehicular traffic congestion copying and electronic filing. Persons has not received any user complaints during the peak tourist season in wanting acknowledgement of receipt of concerning the voluntary schedule or Charlevoix. comments should enclose a stamped, winter operating schedule since it’s Regulatory Evaluation self-addressed postcard or envelope. inception in 1991. Under this rule, the bridge will be This rule is not a significant Regulatory Information required to open on signal for regulatory action under section 3(f) of The Coast Guard is publishing a direct recreational vessels only from three Executive Order 12866 and does not final rule, the procedures of which are minutes before to three minutes after the require an assessment of potential cost outlined in 33 CFR 1.05–55, because no hour and half-hour between the hours of and benefits under section 6(a)(3) of that adverse comments are anticipated. If no 6 a.m. and 10 p.m., 7 days a week, from order. The Office of Management and adverse comments or any written notice April 1 until October 31. The bridge will Budget has not reviewed it under that of intent to submit adverse comment are open on signal for all vessels between order. It is not significant under the received within the specified comment 10 p.m. and 6 a.m. during this period, regulatory policies and procedures of period, this rule will become effective as and at all times between November 1 the Department of Transportation (DOT) stated in the DATES section. In that case, and December 31. The bridge will open (44 FR 11040; February 26, 1979). The prior to the effective date, the Coast at all times for public vessels of the Coast Guard expects the economic Guard will public a document in the United States, state and local vessels impact of this rule to be so minimal that Federal Register stating that no adverse used in public safety, commercial a full Regulatory Evaluation under

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00037 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15240 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations paragraph 10e of the regulatory policies taking implications under E.O. 12630, shall be passed through the draw as and procedures of DOT is unnecessary. Governmental Actions and Interference soon as possible. This determination is based on the with Constitutionally Protected Property (2) From January 1, through March 31, fact that this rule only modestly changes Rights. the draw shall open on signal if at least the existing regulation, and passage 12 hours advance notice is provided Civil Justice Reform through the bridge is available year- prior to a vessel’s intended time of round, with few requested openings This rule meets applicable standards passage. recorded during the winter months. in sections 3(a) and 3(b)(2) of E.O. (b) The owner of the bridge shall 12988, Civil Justice Reform, to minimize provide and keep in good legible Small Entities litigation, eliminate ambiguity, and condition two board gauges painted Under the Regulatory Flexibility Act reduce burden. white with black figures not less than (5 U.S.C. 601 et seq.), the Coast Guard Protection of Children six inches high to indicate the vertical must consider whether this rule will clearance under the closed draw at all have a significant impact on a We have analyzed this rule under E.O. water levels. The gages shall be placed substantial number of small entities. 13045, Protection of Children from on the bridge so that they are plainly ‘‘Small entities’’ may include small Environmental Health Risks and Safety visible to operators of vessels businesses and not-for-profit Risks. This rule is not an economically approaching the bridge either up or organizations that are independently significant rule and does not concern an downstream. owned and operated and are not environmental risk to health or risk to Dated: March 14, 2000. dominant in their fields, and safety that may disproportionately affect governmental jurisdictions with children. James D. Hull, Rear Admiral, U.S. Coast Guard Commander, populations of less than 50,000 people. Environment This rule simply extends the hours (6 Ninth Coast Guard District. p.m. to 10 p.m.) that the bridge owner The Coast Guard considered the [FR Doc. 00–7103 Filed 3–21–00; 8:45 am] may limit openings for recreational environmental impact of this rule and BILLING CODE 4910±15±M vessels. Passage through the bridge is concluded that, under figure 2–1, not restricted for commercial or public paragraph 34(g) of Commandant vessels. The 12-hour advance notice Instruction M16475.1C, this rule is ENVIRONMENTAL PROTECTION requirement during winter months is an categorically excluded from further AGENCY accepted practice and only affects one environmental documentation. This rule known entity operating during those changes a drawbridge regulation which 40 CFR Part 52 months. has been found not to have a significant [CA 224±0213a; FRL±6549±7] Therefore, the Coast Guard certifies effect on the environment. A under 5 U.S.C. 605(b) that this rule will ‘‘Categorical Exclusion Determination’’ Approval and Promulgation of not have a significant economic impact is not required. Implementation Plans; California State on a substantial number of small List of Subjects in 33 CFR Part 117 Implementation Plan Revision, entities. Monterey Bay Unified Air Pollution Bridges. Control District, San Joaquin Valley Collection of Information For reasons set out in the preamble, Unified Air Pollution Control District, This rule does not provide for a the Coast Guard amends Part 117 of title Santa Barbara County Air Pollution collection-of-information requirement 33, Code of Federal Regulations, as Control District, South Coast Air under the Paperwork Reduction Act (44 follows: Quality Air Management District U.S.C. 3501 et seq.). PART 117ÐDRAWBRIDGE AGENCY: Environmental Protection Federalism OPERATION REGULATIONS Agency (EPA). The Coast Guard has analyzed this ACTION: 1. The authority citation for Part 117 Direct final rule. rule under the principles and criteria continues to read as follows: contained in Executive order 13132, and SUMMARY: EPA is taking direct final determined that this rule does not have Authority: 33 U.S.C. 499; 49 CFR 1.46; 33 action on revisions to the California federalism implications under that CFR 1.05–1(g); section 117.255 also issued State Implementation Plan. The Order. under the authority of Pub. L. 102–587, 106 revisions concern rules from the Stat. 5039. following districts: Monterey Bay Unfunded Mandates Reform Act 2. Revise § 117.641 to red as follows: Unified Air Pollution Control District, The Unfunded Mandates Reform Act San Joaquin Valley Unified Air of 1995 (2 U.S.C. 1531–1538) governs § 117.641 Pine River (Charlevoix). Pollution Control District, Santa Barbara the issuance of federal regulations that (a) The draw of the U.S. 31 bridge, County Air Pollution Control District, require unfunded mandates. An mile 0.3 at Charlevoix, shall be operated and South Coast Air Quality Air unfunded mandate is a regulation that as follows: Management District. This approval requires a state, local, or tribal (1) From April 1 through December action will incorporate these rules into government or the private sector to 31, the draw shall open on signal; the federally approved SIP. The incur direct costs without the federal except from 6 a.m. to 10 p.m., April 1 intended effect of approving these rules government having first provided the to October 31, the draw need open only is to regulate emissions of volatile funds to pay those unfunded mandate from three minutes before to three organic compounds (VOCs) according to costs. This rule will not impose an minutes after the hour and half-hour for the requirements of the Clean Air Act, unfunded mandate. recreational vessels. Public vessels of as amended in 1990 (CAA or the Act). the United States, state or local vessels The revised rules control VOC Taking of Private Property used for public safety, commercial emissions from the coating of wood This rule will not effect a talking of vessels, vessels in distress, and vessels products and wood flat stock. Thus, private property or otherwise have seeking shelter from severe weather EPA is finalizing the approval of these

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00038 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15241 revisions into the California SIP under Air Quality Management Therefore, these areas are subject to the provisions of the CAA regarding EPA District(SCAQMD) Rule 1104—Wood RACT fix-up requirement and the May action on SIP submittals, SIPs for Flat Stock Coating Operations. These 15, 1991 deadline. The Monterey Bay national primary and secondary ambient rules were submitted by the California Area was redesignated as an attainment air quality standards and plan Air Resources Board (CARB) to EPA on area for the ozone standard on January requirements for nonattainment areas. these respective dates: March 23, 1988; 17, 1997 (see 62 FR 2597.) DATES: This rule is effective on May 22, February 16, 1999; May 13, 1999; and, Along with many other revised RACT 2000 without further notice, unless EPA October 29, 1999. rules, the State of California submitted receives adverse comments by April 21, II. Background the rules being acted on in this 2000. If EPA receives such comment, it document for incorporation into its SIP will publish a timely withdrawal On March 3, 1978, EPA promulgated on the following dates: March 23, 1988 Federal Register informing the public a list of ozone nonattainment areas (MBUAPCD Rule 429); February 16, that this rule will not take effect. under the provisions of the Clean Air 1999 (SJVUAPCD Rule 4606); May 13, Act, as amended in 1977 (1977 Act or ADDRESSES: Written comments must be 1999 (SBCAPCD Rule 351); and October pre-amended Act), that included the 29, 1999 (SCAQMD Rule 1104.) submitted to Andrew Steckel at the Monterey Bay, San Joaquin Valley, Region IX office listed below. Copies of MBUAPCD adopted Rule 429 on Santa Barbara County, and the South September 16, 1987, prior to EPA’s the rule revisions and EPA’s evaluation Coast air basin. 43 FR 8964, 40 CFR report for each rule are available for promulgation of its completeness 81.305. On May 26, 1988, EPA notified criteria for SIP submittals. SJVUAPCD public inspection at EPA’s Region IX the Governor of California, pursuant to office during normal business hours. adopted Rule 4606 on December 17, section 110(a)(2)(H) of the 1977 Act, that 1998. SBCAPCD adopted Rule 351 on Copies of the submitted rule revisions the above districts’ portions of the are available for inspection at the August 20, 1998. SCAQMD adopted California SIP were inadequate to attain Rule 1104 on August 13, 1999. These following locations: and maintain the ozone standard and Rulemaking Office (AIR–4), Air submitted rules were found to be requested that deficiencies in the complete on April 23, 1999 (SJVUAPCD Division, U.S. Environmental existing SIP be corrected (EPA’s SIP- Protection Agency, Region IX, 75 Rule 4606), June 10, 1999 (SBCAPCD Call). On November 15, 1990, the Clean Rule 351), and December 16, 1999 Hawthorne Street, San Francisco, CA Air Act Amendments of 1990 were 94105; (SCAQMD Rule 1104), pursuant to enacted. Public Law 101–549, 104 Stat. EPA’s completeness criteria that are set Environmental Protection Agency, Air 2399, codified at 42 U.S.C. 7401–7671q. forth in 40 CFR part 51, appendix V 3 Docket (6102), 401 ‘‘M’’ Street, SW., In amended section 182(a)(2)(A) of the and are being finalized for approval into Washington, D.C. 20460; CAA, Congress statutorily adopted the the SIP. This document addresses EPA’s California Air Resources Board, requirement that nonattainment areas direct-final action for MBUAPCD Rule Stationary Source Division, Rule fix their deficient reasonably available 429—Applications of Nonarchitectural Evaluation Section, 2020 ‘‘L’’ Street, control technology (RACT) rules for Coatings; SJVUAPCD Rule 4606—Wood Sacramento, CA 95812; ozone and established a deadline of May Products Coating Operations; SBCAPCD Monterey Bay Unified Air Pollution 15, 1991 for states to submit corrections Rule 351—Surface Coating of Wood Control District, 24580 Silver Cloud of those deficiencies. Court, Monterey, CA 93940; Section 182(a)(2)(A) applies to areas Products; SCAQMD Rule 1104—Wood San Joaquin Unified Air Pollution designated as nonattainment prior to Flat Stock Coating Operations. Control District, 1999 Tuolumne enactment of the amendments and SJVUAPCD Rule 4606, SBCAPCD Street, Suite 200, Fresno, CA 93721; classified as marginal or above as of the Rule 351, and SCAQMD Rule 1104 Santa Barbara County Air Pollution date of enactment. It requires such areas regulate the VOC content of various Control District 26 Castilian Drive, to adopt and correct RACT rules coatings applied to wood products such Suite B–23, Goleta, CA 93117; and, pursuant to pre-amended section 172(b) as furniture, cabinets, and interior and South Coast Air Quality Management as interpreted in pre-amendment exterior wood paneling. VOCs District, 218 East Copley Drive, guidance.1 EPA’s SIP-Call used that contribute to the production of ground Diamond Bar, CA 91765. guidance to indicate the necessary level ozone and smog. MBUAPCD Rule FOR FURTHER INFORMATION CONTACT: corrections for specific nonattainment 429 regulates spray gun work practices. Jerald S. Wamsley, Rulemaking Office, areas. The nonattainment areas subject These rules were adopted originally as AIR–4, Air Division, U.S. to this rulemaking were classified as part of each air district’s effort to Environmental Protection Agency, follows: Monterey Bay—moderate; San achieve the National Ambient Air Region IX, 75 Hawthorne Street, San Joaquin Valley and Santa Barbara— Quality Standard (NAAQS) for ozone Francisco, CA 94105, Telephone: (415) serious; and South Coast—extreme.2 and in response to EPA’s SIP-Call and 744–1226. the section 182(a)(2)(A) CAA SUPPLEMENTARY INFORMATION: 1 Among other things, the pre-amendment requirement. EPA’s evaluation and final guidance consists of those portions of the proposed action for these four rules follow below. I. Applicability Post-1987 ozone and carbon monoxide policy that concern RACT, 52 FR 45044 (November 24, 1987); III. EPA Evaluation and Action The rules being approved into the ‘‘Issues Relating to VOC Regulation Cutpoints, California SIP include: Monterey Bay Deficiencies, and Deviations, Clarification to In determining the approvability of a Unified Air Pollution Control District Appendix D of November 24, 1987 Federal Register VOC rule, EPA must evaluate the rule (MBUAPCD) Rule 429—Applications of document’’ (Blue Book) (notice of availability was for consistency with the requirements of published in the Federal Register on May 25, 1988); the CAA and EPA regulations, as found Nonarchitectural Coatings; San Joaquin and the existing control technique guidelines Valley Unified Air Pollution Control (CTGs). in section 110 and part D of the CAA District (SJVUAPCD) Rule 4606—Wood 2 The Monterey Bay, San Joaquin Valley, Santa and 40 CFR part 51 (Requirements for Products Coating Operations; Santa Barbara County and South Coast nonattainment areas retained their designation of nonattainment 3 EPA adopted the completeness criteria on Barbara County Air Pollution Control and were classified by operation of law pursuant to February 16, 1990 (55 FR 5830) and, pursuant to District (SBCAPCD) Rule 351—Surface sections 107(d) and 181(a) upon the date of section 110(k)(1)(A) of the CAA, revised the criteria Coating of Wood Products; South Coast enactment of the CAA. on August 26, 1991 (56 FR 42216).

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Preparation, Adoption, and Submittal of Operations in the SIP. The submitted deleted and SCAQMD Rule 102— Implementation Plans). The EPA rule includes the following provisions: Definitions is referenced in their interpretation of these requirements, —A statement of purpose; place. which forms the basis for today’s action, —Applicability; The modified VOC content limits appears in the various EPA policy —Definitions of terms used within the within submitted Rule 1104 do not guidance documents listed in footnote rule; interfere with reasonable further —Exemptions from the rule; one. Among those provisions is the progress or attainment of the NAAQS, —Requirements concerning VOC requirement that a VOC rule must, at a because the VOC content limits have (volatile organic compounds) content minimum, provide for the been lowered. The changes to Rule 1104 of coatings, application equipment, implementation of RACT for stationary increase VOC emission reductions prohibition of specification, and sources of VOC emissions. This compared to the 1991 version of the rule requirement was carried forth from the storage of ROC containing materials; —Recordkeeping to demonstrate within the SIP. SCAQMD calculated pre-amended Act. compliance with the rule; that VOC emissions are reduced by an For the purpose of assisting state and —Test methods for determining additional 7.9 pounds per day. For these local agencies in developing RACT compliance with the rule; and, reasons, the changes within submitted rules, EPA prepared a series of Control —Compliance schedules. Rule 1104 are consistent with the Technique Guideline (CTG) documents. EPA has evaluated the submitted requirements of section 110(l) of the The CTGs are based on the underlying SJVUAPCD Rule 4606 and has CAA. requirements of the Act and specify the determined that it is consistent with the EPA has evaluated the submitted presumptive norms for what is RACT CAA, EPA regulations, and EPA policy. SCAQMD Rule 1104 and has for specific source categories. Under the Therefore, SJVUAPCD Rule 4606— determined that it is consistent with the CAA, Congress ratified EPA’s use of Wood Products Coating Operations is CAA, EPA regulations, and EPA policy. these documents, as well as other being approved under section 110(k)(3) Therefore, SCAQMD Rule 1104—Wood Agency policy, for requiring States to of the CAA as meeting the requirements Flat Stock Coating Operations is being ‘‘fix-up’’ their RACT rules. See section of section 110(a) and part D. approved under section 110(k)(3) of the 182(a)(2)(A). The CTG applicable to There is no version of SBCAPCD Rule CAA as meeting the requirements of SJVUAPCD Rule 4606 and SBCAPCD 351—Surface Coating of Wood Products section 110(a) and part D. Rule 351 is the following: ‘‘Guideline in the SIP. The submitted rule includes EPA is publishing this rulemaking Series: Control of Volatile Organic the following provisions: without prior proposal because the Compound Emissions from Wood Agency views this as a noncontroversial —Applicability; Furniture Manufacturing Operations,’’ —Exemptions from the rule; amendment and anticipates no adverse USEPA, April, 1996. The CTG —Definitions of terms used within the comments. However, in the proposed applicable to SCAQMD Rule 1104 is the rule; rules section of this Federal Register following: ‘‘Guideline Series: Control of —Requirements concerning ROC publication, EPA is publishing a Volatile Organic Compound Emissions (reactive organic compounds) content separate document that will serve as the from Existing Stationary Sources of coatings, transfer efficiency, proposal to approve the SIP revision Volume VII: Factory Surface Coating of prohibition of specification, and should adverse comments be filed. This Flatwood Panelling;’’ USEPA, June storage of ROC containing materials; rule will be effective May 22, 2000 1978; EPA–450/2–78–032. —Test methods for determining without further notice unless the Further interpretations of EPA policy compliance with the rule; and, Agency receives adverse comments by are found in the Blue Book, referred to —Recordkeeping to demonstrate April 21, 2000. in footnote one. In general, these compliance with the rule. If the EPA receives such comments, guidance documents have been set forth EPA has evaluated the submitted rule then EPA will publish a timely to ensure that VOC rules are fully and has determined that it is consistent withdrawal in the Federal Register enforceable and strengthen or maintain with the CAA, EPA regulations, and informing the public that the rule will the SIP. Each of the subject rules within EPA policy. Therefore, SBCAPCD Rule not take effect. All public comments this action will now be reviewed briefly. 351—Surface Coating of Wood Products received will then be addressed in a There is no version of MBUAPCD is being approved under section subsequent final rule based on the Rule 429—Applications of 110(k)(3) of the CAA as meeting the proposed rule. The EPA will not Nonarchitectural Coatings in the SIP. requirements of section 110(a) and part institute a second comment period. Any The submitted rule includes the D. parties interested in commenting on this following provisions: On June 23, 1994 (see 59 FR 32354), rule should do so at this time. If no such —Applicability; EPA approved into the SIP a version of comments are received, the public is —Definitions of terms used within the Rule SCAQMD Rule 1104—Wood Flat advised that this rule is effective on May rule; and, Stock Coating Operations adopted by 22, 2000 and no further action will be —Spray application requirements. the SCAQMD on March 1, 1991. taken on the proposed rule. EPA has evaluated the submitted SCAQMD’s submitted Rule 1104 IV. Administrative Requirements MBUAPCD Rule 429 and has includes the following significant determined that it is consistent with the changes from the current SIP-approved A. Executive Order 12866 CAA, EPA regulations, and EPA policy. rule: The Office of Management and Budget Therefore, MBUAPCD Rule 429— —The allowable VOC content for inks is (OMB) has exempted this regulatory Applications of Nonarchitectural reduced from 300 grams/liter (gr/l) to action from Executive Order 12866, Coatings is being approved under 250 gr/l; entitled ‘‘Regulatory Planning and section 110(k)(3) of the CAA as meeting —The allowable VOC content for Review.’’ the requirements of section 110(a) and exterior siding coatings is reduced part D. from 300 gr/l to 250 gr/l; and, B. Executive Order 13132 There is no version of SJVUAPCD —The exempt compounds and volatile Federalism (64 FR 43255, August 10, Rule 4606—Wood Products Coating organic compound definitions were 1999) revokes and replaces Executive

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Orders 12612, Federalism and 12875, and reasonably feasible alternatives not create any new requirements, I Enhancing the Intergovernmental considered by the Agency. certify that this action will not have a Partnership. Executive Order 13132 This rule is not subject to Executive significant economic impact on a requires EPA to develop an accountable Order 13045 because it does not involve substantial number of small entities. process to ensure ‘‘meaningful and decisions intended to mitigate Moreover, due to the nature of the timely input by State and local officials environmental health or safety risks. Federal-State relationship under the Clean Air Act, preparation of flexibility in the development of regulatory D. Executive Order 13084 policies that have federalism analysis would constitute Federal implications.’’ ‘‘Policies that have Under Executive Order 13084, inquiry into the economic federalism implications’’ is defined in Consultation and Coordination with reasonableness of state action. The the Executive Order to include Indian Tribal Governments, EPA may Clean Air Act forbids EPA to base its regulations that have ‘‘substantial direct not issue a regulation that is not actions concerning SIPs on such effects on the States, on the relationship required by statute, that significantly grounds. Union Electric Co., v. U.S. between the national government and affects or uniquely affects the EPA, 427 U.S. 246, 255–66 (1976); 42 the States, or on the distribution of communities of Indian tribal U.S.C. 7410(a)(2). governments, and that imposes power and responsibilities among the F. Unfunded Mandates various levels of government.’’ Under substantial direct compliance costs on Executive Order 13132, EPA may not those communities, unless the Federal Under section 202 of the Unfunded issue a regulation that has federalism government provides the funds Mandates Reform Act of 1995 implications, that imposes substantial necessary to pay the direct compliance (‘‘Unfunded Mandates Act’’), signed direct compliance costs, and that is not costs incurred by the tribal into law on March 22, 1995, EPA must required by statute, unless the Federal governments. If the mandate is prepare a budgetary impact statement to government provides the funds unfunded, EPA must provide to the accompany any proposed or final rule necessary to pay the direct compliance Office of Management and Budget, in a that includes a Federal mandate that costs incurred by State and local separately identified section of the may result in estimated annual costs to governments, or EPA consults with preamble to the rule, a description of State, local, or tribal governments in the State and local officials early in the the extent of EPA’s prior consultation aggregate; or to private sector, of $100 process of developing the proposed with representatives of affected tribal million or more. Under section 205, regulation. EPA also may not issue a governments, a summary of the nature EPA must select the most cost-effective regulation that has federalism of their concerns, and a statement and least burdensome alternative that implications and that preempts State supporting the need to issue the achieves the objectives of the rule and law unless the Agency consults with regulation. is consistent with statutory State and local officials early in the In addition, Executive Order 13084 requirements. Section 203 requires EPA process of developing the proposed requires EPA to develop an effective to establish a plan for informing and regulation. process permitting elected and other advising any small governments that This rule will not have substantial representatives of Indian tribal may be significantly or uniquely direct effects on the States, on the governments ‘‘to provide meaningful impacted by the rule. relationship between the national and timely input in the development of EPA has determined that the approval government and the States, or on the regulatory policies on matters that action promulgated does not include a distribution of power and significantly or uniquely affect their Federal mandate that may result in responsibilities among the various communities.’’ Today’s rule does not estimated annual costs of $100 million levels of government, as specified in significantly or uniquely affect the or more to either State, local, or tribal Executive Order 13132 (64 FR 43255, communities of Indian tribal governments in the aggregate, or to the August 10, 1999), because it merely governments. Accordingly, the private sector. This Federal action approves a state rule implementing a requirements of section 3(b) of approves pre-existing requirements federal standard, and does not alter the Executive Order 13084 do not apply to under State or local law, and imposes relationship or the distribution of power this rule. no new requirements. Accordingly, no and responsibilities established in the additional costs to State, local, or tribal E. Regulatory Flexibility Act Clean Air Act. Thus, the requirements of governments, or to the private sector, section 6 of the Executive Order do not The Regulatory Flexibility Act (RFA) result from this action. apply to this rule. generally requires an agency to conduct a regulatory flexibility analysis of any G. Submission to Congress and the C. Executive Order 13045 rule subject to notice and comment Comptroller General Protection of Children from rulemaking requirements unless the The Congressional Review Act, 5 Environmental Health Risks and Safety agency certifies that the rule will not U.S.C. 801 et seq., as added by the Small Risks (62 FR 19885, April 23, 1997), have a significant economic impact on Business Regulatory Enforcement applies to any rule that: (1) Is a substantial number of small entities. Fairness Act of 1996, generally provides determined to be ‘‘economically Small entities include small businesses, that before a rule may take effect, the significant’’ as defined under Executive small not-for-profit enterprises, and agency promulgating the rule must Order 12866, and (2) concerns an small governmental jurisdictions. submit a rule report, which includes a environmental health or safety risk that This final rule will not have a copy of the rule, to each House of the EPA has reason to believe may have a significant impact on a substantial Congress and to the Comptroller General disproportionate effect on children. If number of small entities because SIP of the United States. EPA will submit a the regulatory action meets both criteria, approvals under section 110 and report containing this rule and other the Agency must evaluate the subchapter I, part D of the Clean Air Act required information to the U.S. Senate, environmental health or safety effects of do not create any new requirements but the U.S. House of Representatives, and the planned rule on children, and simply approve requirements that the the Comptroller General of the United explain why the planned regulation is State is already imposing. Therefore, States prior to publication of the rule in preferable to other potentially effective because the Federal SIP approval does the Federal Register. A major rule

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00041 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 15244 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations cannot take effect until 60 days after it (c)(262)(i)(D), (c)(263)(i)(B)(2), and ADDRESSES: Written comments should ´ is published in the Federal Register. (c)(270)(i)(c)(2) to read as follows: be addressed to: Ms. Christine Lemme, This rule is not a ‘‘major’’ rule as Office of Air Quality (OAQ–107), EPA, defined by 5 U.S.C. 804(2). § 52.220 Identification of plan. 1200 Sixth Avenue, Seattle, Washington * * * * * 98101. H. National Technology Transfer and (c) * * * Advancement Act Documents which are incorporated by (176) * * * reference are available for public Section 12 of the National Technology (i) * * * (D) Monterey Bay Unified Air inspection at the Air and Radiation Transfer and Advancement Act Docket and Information Center, (NTTAA) of 1995 requires Federal Pollution Control District. (1) Rule 429 adopted on September Environmental Protection Agency, Ariel agencies to evaluate existing technical 16, 1987. Rios Building 1200 Pennsylvania standards when developing a new Avenue, N.W. Washington, D.C. 20460. regulation. To comply with NTTAA, * * * * * Copies of material submitted to EPA (262) * * * EPA must consider and use ‘‘voluntary may be examined during normal consensus standards’’ (VCS) if available (i) * * * (D) San Joaquin Valley Unified Air business hours at the following and applicable when developing Pollution Control District. locations: EPA, Region 10, Office of Air programs and policies unless doing so (1) Rule 4606 adopted on December Quality, 1200 Sixth Avenue (OAQ–107), would be inconsistent with applicable 19, 1991 and amended on December 17, Seattle, Washington 98101, and the law or otherwise impractical. 1998. Oregon Department of Environmental The EPA believes that VCS are Quality, 811 SW Sixth Avenue, * * * * * inapplicable to this action. Today’s Portland, Oregon 97204–1390. (263) * * * action does not require the public to (i) * * * FOR FURTHER INFORMATION CONTACT: perform activities conducive to the use (B) * * * Wayne Elson, Office of Air Quality of VCS. (2) Rule 351 adopted on August 24, (OAQ–107), EPA, Seattle, Washington I. Petitions for Judicial Review 1993 and amended on August 20, 1998. 98101, (206) 553-1463. SUPPLEMENTARY INFORMATION: The Under section 307(b)(1) of the Clean * * * * * (270) * * * information in this section is organized Air Act, petitions for judicial review of (i) * * * as follows: this action must be filed in the United (C) * * * States Court of Appeals for the A. What SIP amendments are EPA (2) Rule 1104 adopted on April 7, approving? appropriate circuit by May 22, 2000. 1978 and amended on August 13, 1999. B. What is Transportation Conformity? Filing a petition for reconsideration by * * * * * C. How does Transportation Conformity the Administrator of this final rule does work? not affect the finality of this rule for the [FR Doc. 00–6972 Filed 3–21–00; 8:45 am] D. Why must the State have a purposes of judicial review nor does it BILLING CODE 6560±50±P Transportation Conformity SIP? extend the time within which a petition E. What is EPA approving today for for judicial review may be filed, and Transportation Conformity and Why? shall not postpone the effectiveness of ENVIRONMENTAL PROTECTION F. Why did the State Exclude the Grace AGENCY Period for New Nonattainment Areas (40 CFR such rule or action. This action may not 93.102(d))? be challenged later in proceedings to 40 CFR Part 52 G. What parts of the Transportation enforce its requirements. (See section Conformity Rule are Excluded? 307(b)(2).) [OR±73±7288±a; FRL±6544±2] H. What is General Conformity? I. What is EPA approving today for General List of Subjects in 40 CFR Part 52 Approval and Promulgation of State Conformity and Why? Implementation Plans: Oregon Environmental protection, Air A. What SIP Amendments Are EPA pollution control, Hydrocarbons, AGENCY: Environmental Protection Approving? Incorporation by reference, Agency. The following table outlines the Intergovernmental relations, Ozone, ACTION: Direct final rule. Reporting and recordkeeping submittals EPA received and is requirements, Volatile organic SUMMARY: The Environmental Protection approving in this action: compounds. Agency (EPA) approves various Date of submittal to Items revised Dated: February 15, 2000. revisions to Oregon’s State EPA Laura Yoshii, Implementation Plan (SIP). This revision to the SIP was submitted to 10±8±98 ...... Transportation Con- Acting Regional Administrator, Region IX. EPA, dated October 8, 1998. formity Rules. Part 52, Chapter I, Title 40 of the Code The revised regulations include 10±8±98 ...... General Conformity of Federal Regulations is amended as Transportation Conformity (OAR 340– Rules. follows: 020–710 through 340–020–1080) and General Conformity (OAR–020–1500 B. What is Transportation Conformity? PART 52Ð[AMENDED] through 340–020–1590). Conformity first appeared in the Act’s 1. The authority citation for Part 52 DATES: This direct final rule is effective 1977 amendments (Public Law 95–95). continues to read as follows: on May 22, 2000 without further notice, Although the Act did not define unless EPA receives adverse comment conformity, it stated that no Federal Authority: 42 U.S.C. 7401 et seq. by April 21, 2000. If adverse comment department could engage in, support in Subpart FÐCalifornia is received, EPA will publish a timely any way or provide financial assistance withdrawal of the direct final rule in the for, license or permit, or approve any 2. Section 52.220 is amended by Federal Register and inform the public activity which did not conform to a SIP adding paragraphs (c)(176)(i)(D), that the rule will not take effect. which has been approved or

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00042 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15245 promulgated. The Act’s 1990 transportation conformity rule on Section 93.102(d) allows up to 12 Amendments expanded the scope and August 7, 1995 (60 FR 40098), months for newly designated content of the conformity concept by November 14, 1995 (60 FR 57179), nonattainment areas to complete their applying conformity to state August 15, 1997 (62 FR 43780), and it conformity determination. The Sierra implementation plans. Section 176(c) of was codified under 40 CFR part 51, Club challenged this section of the rule the Act defines conformity as subpart T and 40 CFR part 93, subpart arguing that allowing a 12-month grace conformity to the SIP’s purpose of A—Conformity to State or Federal period was unlawful under the Act. On eliminating or reducing the severity and Implementation Plans of Transportation November 4, 1997, the United States number of violations of the NAAQS and Plans, Programs, and Projects Court of Appeals for the District of achieving expeditious attainment of Developed, Funded or Approved Under Columbia Circuit held in Sierra Club v. such standards. Also, the Act states that Title 23 U.S.C. or the Federal Transit Environmental Protection Agency, No. no Federal activity will: (1) cause or Laws (62 FR 43780). EPA’s action of 96–1007, cited EPA’s grace period contribute to any new violation of any August 15, 1997, required the States to violates the plain terms of the Act and, standard in any area, (2) increase the change their rules and send a SIP therefore, is unlawful. Based on this frequency or severity of any existing revision by August 15, 1998. court action, the State has excluded this violation of any standard in any area, or section from its rule. We agree with the E. What Is EPA Approving Today for (3) delay timely attainment of any State’s action, and exclusion of 40 CFR Transportation Conformity and Why? standard or any required interim 93.102(d) will not prevent us from emission reductions or other milestones EPA is approving the modified approving the State transportation in any area. Oregon Transportation Conformity conformity SIP. Rules OAR 340–020–710 through 340– C. How Does Transportation 020–1080 that the ODEQ submitted on G. What Parts of the Transportation Conformity Work? October 8, 1998 except for the sections Conformity Rule Are Excluded? The Federal or State Transportation OAR 340–020–730(3), OAR 340–020– On March 2, 1999, the United States Conformity Rule applies to all 750(4), OAR 340–020–750(4)(b), OAR Court of Appeals for the District of nonattainment and maintenance areas 340–020–800(3)–(6), OAR 340–020– Columbia Circuit issued its opinion in in the State. The Metropolitan Planning 890(5), OAR 340–020–900(6)(c), OAR Environmental Defense Fund v. Organizations (MPO), the State 340–020–910(1)(b), OAR 340–020– Environmental Protection Agency, No. Departments of Transportation (in 1000(1)(a) and (2), and OAR 340–020– 97–1637. The Court granted the absence of a MPO), and U.S. Department 1030(2). The rationale for exclusion of environmental group’s petition for of Transportation make conformity these sections is discussed in Question review and ruled that 40 CFR determinations. These agencies make G. 93.102(c)(1), 93.121(a)(1), and 93.124(b) conformity determinations on programs The Federal Transportation are unlawful and remanded 40 CFR and plans such as transportation Conformity Rule required the states to 93.118(e) and 93.120(a)(2) to EPA for improvement programs, transportation adopt the majority of the Federal rules revision to harmonize these provisions plans, and projects. These agencies in verbatim form with a few exceptions. with the requirements of the Act for an calculate the projected emissions for the The States cannot make their rules more affirmative determination the Federal transportation plans and programs and stringent than the Federal rules unless actions will not cause or increase compare those calculated emissions to the State’s rules apply equally to non- violations or delay attainment. The the motor vehicle emissions ceiling federal entities as well as Federal sections that were included in this established in the SIP. The calculated entities. The Oregon Transportation decision were: (a) 40 CFR 93.102(c)(1) emissions must be smaller than the Conformity Rule is different from the which allowed certain projects for motor vehicle emissions ceiling for Federal rule in several areas. These which the National Environmental showing a positive conformity with the differences were discussed in the May Policy Act (NEPA) process has been SIP. 16, 1996 EPA approval. The State has completed by the DOT to proceed made no additional changes or toward implementation without further D. Why Must the State Have a modifications, with the exception to the conformity determinations during a Transportation Conformity SIP? changes required by the revisions to the conformity lapse, (b) 40 CFR 93.118(e) EPA was required to issue criteria and Federal Transportation Conformity which allowed use of motor vehicle procedures for determining conformity Rule, August 15, 1997 (62 FR 43780). emissions budgets (MVEB) in the of transportation plans, programs, and EPA has evaluated this SIP revision and submitted SIPs after 45 days if EPA had projects to a SIP by section 176(c) of the has determined that the State has fully not declared them inadequate, (c) 40 Act. The Act also required the adopted the Federal Transportation CFR 93.120(a)(2) which allowed use of procedure to include a requirement that Conformity rules as described in 40 CFR the MVEB in a disapproved SIP for 120 each State submit a revision to its SIP part 51, subpart T and 40 CFR part 93, days after disapproval, (d) 40 CFR including conformity criteria and subpart A. Also, the ODEQ has 93.121(a)(1) which allowed the non- procedures. EPA published the first completed and satisfied the public federally funded projects to be approved transportation conformity rule in the participation and comprehensive if included in the first three years of the November 24, 1993, Federal Register interagency consultations during most recently conforming transportation (FR), and it was codified at 40 CFR part development and adoption of these plan and transportation improvement 51, subpart T and 40 CFR part 93, rules at the local level. Therefore, EPA programs, even if conformity status is subpart A. EPA required the States and is approving this SIP revision. currently lapsed, and (e) 40 CFR local agencies to adopt and submit a 93.124(b) which allowed areas to use a transportation conformity SIP revision F. Why Did the State Exclude the Grace submitted SIP that allocated portions of by November 25, 1994. The State of Period for New Nonattainment Areas a safety margin to transportation Oregon sent a transportation conformity (40 CFR 93.102(d))? activities for conformity purposes before SIP on April 17, 1995, and EPA The State excluded 40 CFR 93.102(d) EPA approval. Since the States were approved this SIP on May 16, 1996 (61 of the Federal Transportation required to submit transportation FR 24709). EPA revised the Conformity Rule from its State rule. conformity SIPs not later than August

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15, 1998, and include those provisions no Federal activity will: (1) cause or Transportation Plans, Programs, in verbatim form, the State’s SIP contribute to any new violation of any and Projects: General. revision includes all those sections standard in any area, (2) increase the 340–20–810 Criteria and Procedures: which the Court ruled unlawful or frequency or severity of any existing Latest Planning Assumptions. remanded for consistency with the Act. violation of any standard in any area, or 340–20–820 Criteria and Procedures: The EPA can not approve these sections. (3) delay timely attainment of any Latest Emissions Model. EPA believes that ODEQ has complied standard or any required interim 340–20–830 Criteria and Procedures: with the SIP requirements and has emission reductions or other milestones Consultation. adopted the Federal rules which were in in any area. General Conformity, 340–20–840 Criteria and Procedures: effect at the time that the transportation however applies to federal actions Timely Implementation of TCMs. 340–20–850 Criteria and Procedures: conformity SIP was due to EPA. If the where Transportation Conformity does Currently Conforming court had issued its ruling before not apply. Examples are ski resorts on adoption and SIP submittal by the Transportation Plan and TIP. public land, and airport improvements. 340–20–860 Criteria and Procedures: ODEQ, we believe the ODEQ would Also General Conformity is only carried have removed these sections from their Projects from a Plan and TIP. out on project by project basis. 340–20–870 Criteria and Procedures: rule. The ODEQ has expended its Localized CO and PM–10 Violations resources and time in preparing this SIP I. What Is EPA Approving Today for General Conformity and Why? (Hot spots). and meeting the Act’s statutory 340–20–880 Criteria and Procedures: deadline, and EPA acknowledges the General Conformity requires that Compliance with PM–10 Control agency’s good faith effort in submitting activities on federal lands (such as Measures. the transportation conformity SIP on prescribed burning by the Forest 340–20–890 Criteria and Procedures: time. ODEQ will be required to submit Service) align with the air quality goals Motor Vehicle Emissions Budget. a SIP revision in the future when EPA set in the Oregon SIP. Oregon’s current 340–20–900 Criteria and Procedures: revises its rule to comply with the court General Conformity rules apply to all Emissions Reductions in Areas decision. Because the court decision has areas of the state. Since they were Without Motor Vehicle Emissions invalidated these provisions, EPA adopted, however, the U.S. Congress Budgets. believes that it is reasonable to exclude clarified that General Conformity 340–20–910 Consequences of Control the corresponding sections of the state pertains only to nonattainment and Strategy Implementation Plan rules from this SIP approval action. As maintenance areas. The rule is changed Failures. a result, we are not taking any action on to remove the applicability of the rule 340–20–1000 Requirements for the relevant sections in: OAR 340–020– for federal actions involving prescribed Adoption or Approval of Projects by 730(3), OAR 340–020–750(4), OAR 340– burning in attainment or unclassifiable Other Recipients of Funds 020-750(4)(b), OAR 340–020–800(3)-(6), areas and remove all references to Designated under title 23 U.S.C. or OAR 340–020–890(5), OAR 340–020- prescribed burning. These revisions will the Federal Transit Laws. 900(6)(c), OAR 340–020–910(1)(b), OAR have no effect on existing prescribed 340–20–1010 Procedures for 340–020–1000(1)(a) and (2), and OAR burning practices, as implementation of Determining Regional 340–020–1030(2) of the modified the General Conformity requirements in Transportation-Related Emissions. Oregon Transportation Conformity attainment areas was delayed pending 340–20–1020 Procedures for Rules. The conformity determinations the outcome of a federal determination Determining Localized CO and PM– affected by these sections should of applicability. The Oregon Smoke 10 Concentrations (Hot-Spot comply with the relevant requirements Management Plan will continue to Analysis). of the statutory provisions of the Act provide statewide guidelines for state 340–20–1030 Using the Motor Vehicle underlying the court’s decision on these and federal land managers to minimize Emissions Budget in the Applicable issues. The EPA will be issuing smoke impacts from prescribed burning. Implementation Plan (or guidance on how to implement these Implementation Plan Submission). provisions in the interim prior to EPA Summary of Action 340–20–1040 Enforceability of Design amendment of the federal transportation EPA approves and takes no action on Concept and Scope and Project- conformity rules. Once these Federal certain Oregon Administrative Rules (as Level Mitigation and Control rules have been revised, conformity noted in section I): ‘‘Conformity to State Measures. determinations in Oregon should or Federal Implementation Plans to 340–20–1050 Exempt Projects. comply with the requirements of the Transportation Plans, Programs, and 340–20–1060 Projects Exempt from revised Federal rule until corresponding Projects Developed and Funded Under Regional Emissions Analyses. provisions of the Oregon conformity SIP Title 23 U.S.C. or Federal Transit Laws’’ 340–20–1070 Traffic Signal have been approved by EPA. found in: Synchronization Projects. EPA approves the changes made to H. What Is General Conformity? 340–20–710 Purpose. 340–20–720 Definitions. certain sections of the Oregon General Conformity is similar to 340–20–730 Applicability. Administrative Rules: ‘‘Determining Transportation Conformity and also 340–20–750 Frequency of Conformity Conformity of General Federal Actions derived from section 176(c) of the CAA. Determinations. to State and Federal Implementation The Act’s 1990 Amendments expanded 340–20–760 Consultation. Plans’’ found in: the scope and content of the conformity 340–20–770 Content of Transportation 340–020–1510 Definitions. concept by applying conformity to state Plans. 340–020–1520 Applicability. implementation plans. Section 176(c) of 340–20–780 Relationship of 340–020–1530 Conformity Analysis. the Act defines conformity as Transportation Plan and TIP 340–020–1570 Criteria for Determining conformity to the SIP’s purpose of Conformity with the NEPA Process. Conformity of General Federal eliminating or reducing the severity and 340–20–790 Fiscal Constraints for Actions. number of violations of the NAAQS and Transportation Plans. 340–020–1580 Procedures for achieving expeditious attainment of 340–20–800 Criteria and Procedures Conformity Determinations of such standards. Also, the Act states that for Determining Conformity of General Federal Actions.

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340–020–1590 Procedures Mitigation August 10, 1999), because it merely Under section 307(b)(1) of the Clean of Air Quality Impacts approves a state rule implementing a Air Act, petitions for judicial review of EPA is publishing this rule without federal standard, and does not alter the this action must be filed in the United prior proposal because the Agency relationship or the distribution of power States Court of Appeals for the views this as a noncontroversial and responsibilities established in the appropriate circuit by May 22, 2000. submittal and anticipates no adverse Clean Air Act. This rule also is not Filing a petition for reconsideration by comments. However, in the proposed subject to Executive Order 13045 (62 FR the Administrator of this final rule does rules section of this Federal Register 19885, April 23, 1997), because it is not not affect the finality of this rule for the publication, EPA is publishing a economically significant. purposes of judicial review nor does it separate document that will serve as the In reviewing SIP submissions, EPA’s extend the time within which a petition proposal to approve the SIP revision role is to approve state choices, for judicial review may be filed, and should adverse comments be filed. This provided that they meet the criteria of shall not postpone the effectiveness of rule will be effective May 22, 2000 the Clean Air Act. In this context, in the such rule or action. This action may not without further notice unless the absence of a prior existing requirement be challenged later in proceedings to for the State to use voluntary consensus Agency receives adverse comments by enforce its requirements. (See section standards (VCS), EPA has no authority April 21, 2000. 307(b)(2).) to disapprove a SIP submission for If the EPA receives such comments, failure to use VCS. It would thus be List of Subjects in 40 CFR Part 52 then EPA will publish a notice inconsistent with applicable law for withdrawing the final rule and Environmental protection, Air EPA, when it reviews a SIP submission, informing the public that the rule will pollution control, Carbon monoxide, to use VCS in place of a SIP submission not take effect. All public comments Hydrocarbons, Incorporation by that otherwise satisfies the provisions of reference, Intergovernmental relations, received will then be addressed in a the Clean Air Act. Thus, the subsequent final rule based on the Reporting and recordkeeping requirements of section 12(d) of the requirements. proposed rule. The EPA will not National Technology Transfer and Dated: February 22, 2000. institute a second comment period. Advancement Act of 1995 (15 U.S.C. Parties interested in commenting should 272 note) do not apply. As required by Chuck Findley, do so at this time. If no such comments section 3 of Executive Order 12988 (61 Acting Regional Administrator, Region 10. are received, the public is advised that FR 4729, February 7, 1996), in issuing PART 52, chapter I, title 40 of the this rule will be effective on May 22, this rule, EPA has taken the necessary Code of Federal Regulations is amended 2000 and no further action will be taken steps to eliminate drafting errors and as follows: on the proposed rule. ambiguity, minimize potential litigation, Administrative Requirements and provide a clear legal standard for PART 52Ð[AMENDED] affected conduct. EPA has complied Under Executive Order 12866 (58 FR 1.The authority citation for Part 52 with Executive Order 12630 (53 FR continues to read as follows: 51735, October 4, 1993), this action is 8859, March 15, 1988) by examining the not a ‘‘significant regulatory action’’ and takings implications of the rule in Authority: 42 U.S.C. 7401 et seq. therefore is not subject to review by the accordance with the ‘‘Attorney Subpart MMÐOregon Office of Management and Budget. This General’s Supplemental Guidelines for action merely approves state law as the Evaluation of Risk and Avoidance of 2. Section 52.1970 is amended by meeting federal requirements and Unanticipated Takings’ issued under the adding paragraph (c) (129) to read as imposes no additional requirements executive order. This rule does not follows: beyond those imposed by state law. impose an information collection Accordingly, the Administrator certifies burden under the provisions of the § 52.1970 Identification of plan. that this rule will not have a significant Paperwork Reduction Act of 1995 (44 * * * * * economic impact on a substantial U.S.C. 3501 et seq.). (c) * * * number of small entities under the The Congressional Review Act, 5 (129) The Environmental Protection Regulatory Flexibility Act (5 U.S.C. 601 U.S.C. 801 et seq., as added by the Small Agency (EPA) approves various et seq.). Because this rule approves pre- Business Regulatory Enforcement amendments to the Oregon State Air existing requirements under state law Fairness Act of 1996, generally provides Quality Control Plan contained in a and does not impose any additional that before a rule may take effect, the submittal to EPA, dated October 8, 1997. enforceable duty beyond that required agency promulgating the rule must (i) Incorporation by reference. by state law, it does not contain any submit a rule report, which includes a (A) EPA is approving or taking no unfunded mandate or significantly or copy of the rule, to each House of the action on the modified Oregon uniquely affect small governments, as Congress and to the Comptroller General Transportation Conformity Rules described in the Unfunded Mandates of the United States. EPA will submit a submitted on October 8, 1998. EPA is Reform Act of 1995 (Public Law 104–4). report containing this rule and other approving: OAR 340–20–710, 340–20– For the same reason, this rule also does required information to the U.S. Senate, 720, 340–20–730, 340–20–750, 340–20– not significantly or uniquely affect the the U.S. House of Representatives, and 760 340–20–770, 340–20–780, 340–20– communities of tribal governments, as the Comptroller General of the United 790, 340–20–800, 340–20–810, 340–20– specified by Executive Order 13084 (63 States prior to publication of the rule in 820, 340–20–830, 340–20–840, 340–20– FR 27655, May 10, 1998). This rule will the Federal Register. A major rule 850, 340–20–860 340–20–870, 340–20– not have substantial direct effects on the cannot take effect until 60 days after it 880, 340–20–890, 340–20–900, 340–20– States, on the relationship between the is published in the Federal Register. 910 340–20–1000, 340–20–1010, 340– national government and the States, or This action is not a ‘‘major rule’’ as 20–1020, 340–20–1030, 340–20–1040, on the distribution of power and defined by 5 U.S.C. 804(2). This rule 340–20–1050, 340–20–1060 and 340– responsibilities among the various will be effective May 22, 2000 unless 20–1070, effective September 23, 1998. levels of government, as specified in EPA receives adverse written comments (B) EPA is taking no action on Executive Order 13132 (64 FR 43255, by April 21, 2000. sections OAR 340–020–730(3), 340-020–

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750(4), 340–020–750(4)(b), 340–020– 300965 in the subject line on the first consists of the documents specifically 800(3)-(6), 340–020–890(5), 340–020– page of your response. referenced in this action, and other 900(6)(c), 340–020–910(1)(b), 340–020– FOR FURTHER INFORMATION CONTACT: By information related to this action, 1000(1)(a) and (2), and 340–020– mail: Vera Soltero, Registration Division including any information claimed as 1030(2). (7505C), Office of Pesticide Programs, Confidential Business Information (CBI). (C) EPA approves the changes made to Environmental Protection Agency, Ariel This official record includes the certain sections of the Oregon Rios Bldg., 1200 Pennsylvania Ave., documents that are physically located in Administrative Rules: ‘‘Determining NW., Washington, DC 20460; telephone the docket, as well as the documents Conformity of General Federal Actions number: (703) 308–9359; and e-mail that are referenced in those documents. to State and Federal Implementation address: [email protected]. The public version of the official record Plans’ found in: OAR 340–020–1510, SUPPLEMENTARY INFORMATION: does not include any information 340–020–1520, 340–020–1530, 340– claimed as CBI. The public version of 020–1570, 340–020–1580, and 340–020– I. General Information the official record, which includes 1590, effective September 23, 1998. A. Does This Action Apply to Me? printed, paper versions of any electronic comments submitted during an [FR Doc. 00–6969 Filed 3–21–00; 8:45 am] You may be affected by this action if BILLING CODE 6560±50±P applicable comment period is available you are an agricultural producer, food for inspection in the Public Information manufacturer, or pesticide and Records Integrity Branch (PIRIB), ENVIRONMENTAL PROTECTION manufacturer. Potentially affected Rm. 119, Crystal Mall #2, 1921 Jefferson AGENCY categories and entities may include, but Davis Hwy., Arlington, VA, from 8:30 are not limited to: a.m. to 4 p.m., Monday through Friday, 40 CFR Part 180 excluding legal holidays. The PIRIB telephone number is (703) 305–5805. [OPP±300965; FRL±6485±3] Cat- NAICS Examples of poten- II. Background and Statutory Findings RIN 2070±AB78 egories codes tially affected entities In the Federal Register of September Industry 111 Crop production 1, 1999 (64 FR 47788) (FRL–6098–6), Cucurbitacins; Exemption from the EPA issued a notice pursuant to section Requirement of a Tolerance 112 Animal production 311 Food manufacturing 408 of the Federal Food, Drug, and AGENCY: Environmental Protection 32532 Pesticide manufac- Cosmetic Act (FFDCA), 21 U.S.C. 346a, Agency (EPA). turing as amended by the Food Quality Protection Act (FQPA) (Public Law 104– ACTION: Final rule. This listing is not intended to be 170) announcing the filing of a pesticide SUMMARY: This regulation establishes an exhaustive, but rather provides a guide tolerance petition by, Agricultural exemption from the requirement of a for readers regarding entities likely to be Research Services, United States tolerance for residues of cucurbitacins affected by this action. Other types of Department of Agriculture, Agricultural from the powders and juices of the entities not listed in the table could also Research Center, Beltsville, MD 20705. Hawkesbury melon Citrullus lanatus on be affected. The North American This notice included a summary of the various food commodities when Industrial Classification System petition prepared by the petitioner applied/used as an inert (other) (NAICS) codes have been provided to United States Department of ingredient (gustatory stimulant) in assist you and others in determining Agriculture. There were no comments pesticides applied to growing crops whether or not this action might apply received in response to the notice of only. Agricultural Research Services, to certain entities. If you have questions filing. The petition requested that 40 CFR United States Department of Agriculture regarding the applicability of this action 180.1001(d) be amended by establishing submitted a petition to EPA under the to a particular entity, consult the person an exemption from the requirement of a Federal Food, Drug, and Cosmetic Act, listed under FOR FURTHER INFORMATION tolerance for residues of cucurbitacins as amended by the Food Quality CONTACT. derived from the Hawkesbury melon Protection Act of 1996, requesting an B. How Can I Get Additional Citrullus lanatus. The petitioner noted exemption from the requirement of a Information, Including Copies of This that the Agency had previously tolerance. This regulation eliminates the Document and Other Related established exemptions from the need to establish a maximum Documents? requirement of a tolerance for the use of permissible level for residues of 1. Electronically. You may obtain buffalo gourd and zucchini juice, as cucurbitacins from Hawkesbury melon. electronic copies of this document, and sources of the inert ingredient DATES: This regulation is effective certain other related documents that cucurbitacin (57 FR 40128, September 2, March 22, 2000. Objections and requests might be available electronically, from 1992 and 63 FR 43085, August 12, for hearings, identified by docket the EPA Internet Home Page at http:// 1998), and is seeking to add the control number OPP–300965, must be www.epa.gov/. To access this Hawkesbury melon Citrullus lanatus as received by EPA on or before May 22, document, on the Home Page select an additional source of cucurbitacins. 2000. ‘‘Laws and Regulations’’ and then look Section 408(b)(2)(A)(i) of the FFDCA ADDRESSES: Written objections and up the entry for this document under allows EPA to establish an exemption hearing requests may be submitted by the ‘‘Federal Register-Environmental from the requirement for a tolerance (the mail, in person, or by courier. Please Documents.’’ You can also go directly to legal limit for a pesticide chemical follow the detailed instructions for each the Federal Register listings at http:// residue in or on a food) only if EPA method as provided in Unit VIII. of the www.epa.gov/fedrgstr/. determines that the tolerance is ‘‘safe.’’ ‘‘SUPPLEMENTARY INFORMATION.’’ 2. In person. The Agency has Section 408(b)(2)(A)(ii) defines ‘‘safe’’ to To ensure proper receipt by EPA, your established an official record for this mean that ‘‘there is a reasonable objections and hearing requests must action under docket control number certainty that no harm will result from identify docket control number OPP– OPP–300965. The official record aggregate exposure to the pesticide

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00046 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15249 chemical residue, including all effects are expected to occur. Neither contains 0.00139 grams of cucurbitacin. anticipated dietary exposures and all cucurbitacins nor their metabolites are Thus, even under these worst case other exposures for which there is known or expected to have any effect on assumptions, consumption of a pound reliable information.’’ This includes the immune or the endocrine systems. of treated corn would add less exposure through drinking water and in These chemicals are not known to be cucurbitacin to the diet than a gram residential settings, but does not include carcinogenic. serving of squash. At the allowable rate occupational exposure. Section According to information supplied by of application the proposed use of these 408(b)(2)(C) requires EPA to give special USDA, the Hawkesbury watermelon compounds as inert ingredients would consideration to exposure of infants and contains cucurbitacin E-glycoside at result in a negligible increase in children to the pesticide chemical levels in the same order of magnitude exposure to cucurbitacins over those residue in establishing a tolerance and those found in buffalo gourd root levels which would occur naturally as to ‘‘ensure that there is a reasonable powder, 0.76 milligrams (mg) the result of ingestion of various certainty that no harm will result to cucurbitacin E-glycoside/grams (gm) of cucurbit commodities. infants and children from aggregate melon compared to 0.59 mg 2. Drinking water exposure. The exposure to the pesticide chemical cucurbitacin E-glycoside/gm of root Agency review cited in the August 12, residue.* * *’’ powder. The Hawkesbury melon does 1998, Federal Register notice EPA performs a number of analyses to not contain cucurbitacin I. Cucurbitacin established that most cucurbitacins are determine the risks from aggregate I is considered to be more toxic than insoluble in water and transfer of these exposure to pesticide residues. First, cucurbitacin E-glycoside (LD50 of 40 cucurbitacins to ground water is EPA determines the toxicity of milligrams/kilograms (mg/kg) to 5 mg/ unlikely. The more water soluble pesticides. Second, EPA examines kg). Thus, Hawkesbury melon is also glycosylated forms of cucurbitacins are exposure to the pesticide through food, likely to exhibit lower toxicity than less toxic to humans. No uses are drinking water, and through other buffalo gourd root powder, providing an registered for application to bodies of exposures that occur as a result of additional margin of safety. water. pesticide use in residential settings. IV. Aggregate Exposures B. Other Non-Occupational Exposure III. Toxicological Profile In examining aggregate exposure, There are no cucurbitacin-containing Consistent with section 408(b)(2)(D) FFDCA section 408 directs EPA to products with residential uses as all of FFDCA, EPA has reviewed the consider available information uses are for agricultural crop production available scientific data and other concerning exposures from the pesticide only. relevant information in support of this residue in food and all other action and considered its validity, nonoccupational exposures, including V. Cumulative Effects completeness and reliability and the drinking water from ground water or Section 408 (b)(2)(D)(v) of FFDCA relationship of this information to surface water and exposure through requires that, when considering whether human risk. EPA has also considered pesticide use in gardens, lawns, or to establish, modify or revoke a available information concerning the buildings (residential and other indoor tolerance or tolerance exemption, the variability of the sensitivities of major uses). Agency consider ‘‘available identifiable subgroups of consumers, information’’ concerning the cumulative including infants and children. The A. Dietary Exposure effects of a particular chemical’s nature of the toxic effects caused by Species of the family Cucurbitaceae, residues and ‘‘other substances that cucurbitacins are discussed in this unit. such as melons, pumpkins and squash, have a common mechanism of toxicity.’’ The Agency in a previous Federal are commonly used as fruits and The Agency has not made any Register notice reviewed mammalian vegetables throughout the world, they conclusions as to whether or not toxicity data submitted on zucchini are naturally occurring and widely cucurbitacins share a common juice and buffalo gourd root powder as available. Seeds of several species are mechanism of toxicity with other part of the establishment of an used as sources of flavorings in bakery chemicals. However, the Hawkesbury exemption from the requirement of a goods or for oils and proteins. All of melon juice is expected to be practically tolerance for residues of zucchini juice these species contain some assortment non toxic to mammals. Due to the when used as an alternative source of of naturally occurring cucurbitacins in expected lack of toxicity, a cumulative the inert ingredient gustatory stimulant varying concentrations. risk assessment is not necessary. cucurbitacin (63 FR 43085). A summary 1. Food. In the Federal Register notice of the comparative toxicology data published on August 12, 1998 (63 FR VI. Determination of Safety for U.S. showed a more favorable toxicological 43085), the Agency reviewed available Population, Infants and Children profile for the zucchini juice, as data on the dietary exposure to Cucurbitacins are present in varying compared to the buffalo gourd root cucurbitacins. The use to control corn amounts in many plants regularly powder, as a cucurbit source of rootworm is given as an example. consumed by the general public, such as cucurbitacins. Zucchini juice was Assuming that the maximum permitted squash, gourds and watermelon. shown to be practically non-toxic to level of 3.4 gm/acre/season is applied, Information available to the Agency mammals. The acute oral, acute dermal, with no loss either in the field or during indicates that the maximum projected acute inhalation, primary eye, and skin processing, and that all the material is additional exposure to these compounds irritation were all toxicity category IV. concentrated in the grain, the following is significantly less than that from a No acute systemic toxicity, irritation or exposure would result. The average normal serving of these plants, as dermal sensitization was exhibited in yield of corn in the United States is previously discussed in section the studies performed with the zucchini 120–130 bushels per acre. At 56 pounds IV(A)(1). The residual amount of juice. of corn per bushel, the minimum yield cucurbitacins in a pound of corn, for Due to the low levels of cucurbitacins is 6,720 pounds per acre and the level example, is an order of magnitude less used in the field no acute effects are of cucurbitacin would be 0.000506 than the naturally occurring levels of expected to occur. In addition, due to grams of cucurbitacin per pound of these substances in a single serving of their rapid degradation, no chronic corn. A gram of ‘‘straightneck’’ squash squash. Dietary exposure to

VerDate 202000 17:18 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00047 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 15250 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations cucurbitacins through food is not likely enforcement purposes of cucurbitacins A. What Do I Need To Do To File an to significantly increase due to their use from the Hawkesbury melon. Objection or Request a Hearing? as inert ingredients applied to C. Existing Tolerances You must file your objection or agricultural commodities. These request a hearing on this regulation in chemicals are not likely to be found in Prior EPA findings include a temporary exemption for the accordance with the instructions water. In addition, the use sites of the provided in this unit and in 40 CFR part cucurbitacins are all agricultural for the requirements of a tolerance for residues of the buffalo gourd, Cucurbita 178. To ensure proper receipt by EPA, control of Diabriticine beetles (corn you must identify docket control rootworm and cucumber beetles). foetidissima, root powder as a source of cucurbitacins in or on the raw number OPP–300965 in the subject line Therefore, non-dietary exposure to on the first page of your submission. All infants and children is not expected. agricultural commodity fields corn for the control of adult corn rootworms (55 requests must be in writing, and must be The Agency had previously mailed or delivered to the Hearing Clerk established in the Federal Register FR 49700, November 30, 1990). In addition, the Agency established a on or before May 22, 2000. notice published on August 12, 1998 (63 1. Filing the request. Your objection permanent exemption from the FR 43085) that cucurbitacins contained must specify the specific provisions in requirement of a tolerance for the in zucchini juice were practically non the regulation that you object to, and the residues of buffalo gourd root powder toxic to mammals. Cucurbitacins in grounds for the objections (40 CFR when used as an inert ingredient Hawkesbury melon are expected to be of 178.25). If a hearing is requested, the (gustatory stimulant) in pesticide similar toxicity. Because of this, the objections must include a statement of formulations applied to growing crops Agency did not use the safety factor the factual issues(s) on which a hearing only (57 FR 40128, September 2, 1992). analysis in evaluating the risk posed by is requested, the requestor’s contentions In 1998, the Agency amended the the compound. This lack of toxicity also on such issues, and a summary of any permanent exemption from the supported not applying an additional evidence relied upon by the objector (40 requirement of a tolerance to add the tenfold safety factor to protect infants CFR 178.27). Information submitted in residues of zucchini juice, Cucurbita and children. In conclusion, the Agency connection with an objection or hearing pepo, to the list of inert ingredients (63 is reasonaly certain that no harm will request may be claimed confidential by FR 43085, August 12, 1998). result to infants and children, or to the marking any part or all of that general population from a minimally D. International Tolerances information as CBI. Information so increased exposure to residues of There are no international tolerances marked will not be disclosed except in cucurbitacins. Based on the information accordance with procedures set forth in in this preamble, EPA concludes that or tolerance exemptions for cucurbitacins. 40 CFR part 2. A copy of the there is a reasonable certainty of no information that does not contain CBI harm from aggregate exposure to E. Conclusion must be submitted for inclusion in the residues. Accordingly, EPA finds that Therefore, based on the information public record. Information not marked exempting cucurbitacin residues from and the data considered, as well as confidential may be disclosed publicly the requirement of a tolerance will be previous tolerance exemptions granted by EPA without prior notice. safe. to cucurbitacins from buffalo gourd root Mail your written request to: Office of VII. Other Considerations powder and zucchini juice, EPA is the Hearing Clerk (1900), Environmental establishing an exemption from the Protection Agency, 401 M St., SW., A. Endocrine Disruptors requirement of a tolerance for residues Washington, DC 20460. You may also FQPA requires EPA to develop a of cucurbitacins from the Hawkesbury deliver your request to the Office of the screening program to determine whether melon. Hearing Clerk in Rm. C400, Waterside certain substances, including pesticides Mall, 401 M St., SW., Washington, DC VIII. Objections and Hearing Requests and inert ingredients, ‘‘may have an 20460. The Office of the Hearing Clerk effect in humans that is similar to an Under section 408(g) of the FFDCA, as is open from 8 a.m. to 4 p.m., Monday effect produced by a naturally occurring amended by the FQPA, any person may through Friday, excluding legal estrogen, or such other endocrine file an objection to any aspect of this holidays. The telephone number for the effect....’’ The Agency has been working regulation and may also request a Office of the Hearing Clerk is (202) 260– with interested stakeholders to develop hearing on those objections. The EPA 4865. a screening and testing program as well procedural regulations which govern the 2. Tolerance fee payment. If you file as a priority setting scheme. As the submission of objections and requests an objection or request a hearing, you Agency proceeds with implementation for hearings appear in 40 CFR part 178. must also pay the fee prescribed by 40 of this program, further testing of Although the procedures in those CFR 180.33(i) or request a waiver of that products containing the inert ingredient regulations require some modification to fee pursuant to 40 CFR 180.33(m). You cucurbitacin for endocrine effects may reflect the amendments made to the must mail the fee to: EPA Headquarters be required. At this moment, there is no FFDCA by the FQPA of 1996, EPA will Accounting Operations Branch, Office evidence that cucurbitacins are continue to use those procedures, with of Pesticide Programs, P.O. Box endocrine disruptors. appropriate adjustments, until the 360277M, Pittsburgh, PA 15251. Please necessary modifications can be made. identify the fee submission by labeling B. Analytical Method(s) The new section 408(g) provides it ‘‘Tolerance Petition Fees.’’ The Agency is establishing an essentially the same process for persons EPA is authorized to waive any fee exemption from the requirement of a to ‘‘object’’ to a regulation for an requirement ‘‘when in the judgement of tolerance without any change in the exemption from the requirement of a the Administrator such a waiver or previously established limits of no more tolerance issued by EPA under new refund is equitable and not contrary to than 2.5 pounds/acre/season (3.4 grams section 408(d), as was provided in the the purpose of this subsection.’’ For cucurbitacin/acre/season). Therefore, old FFDCA sections 408 and 409. additional information regarding the the Agency has concluded that an However, the period for filing objections waiver of these fees, you may contact analytical method is not required for is now 60 days, rather than 30 days. James Tompkins by phone at (703) 305–

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5697, by e-mail at IX. Regulatory Assessment that have federalism implications’’ is [email protected], or by mailing a Requirements defined in the Executive Order to request for information to Mr. Tompkins This final rule establishes an include regulations that have at Registration Division (7505C), Office exemption from the tolerance ‘‘substantial direct effects on the States, of Pesticide Programs, Environmental requirement under FFDCA section on the relationship between the national Protection Agency, 401 M St., SW., 408(d) in response to a petition government and the States, or on the Washington, DC 20460. submitted to the Agency. The Office of distribution of power and Management and Budget (OMB) has responsibilities among the various If you would like to request a waiver levels of government.’’ This final rule of the tolerance objection fees, you must exempted these types of actions from review under Executive Order 12866, directly regulates growers, food mail your request for such a waiver to: processors, food handlers and food James Hollins, Information Resources entitled Regulatory Planning and Review (58 FR 51735, October 4, 1993). retailers, not States. This action does not and Services Division (7502C), Office of This final rule does not contain any alter the relationships or distribution of Pesticide Programs, Environmental information collections subject to OMB power and responsibilities established Protection Agency, 401 M St., SW., approval under the Paperwork by Congress in the preemption Washington, DC 20460. Reduction Act (PRA), 44 U.S.C. 3501 et provisions of FFDCA section 408(n)(4). 3. Copies for the Docket. In addition seq., or impose any enforceable duty or X. Submission to Congress and the to filing an objection or hearing request contain any unfunded mandate as Comptroller General with the Hearing Clerk as described in described under Title II of the Unfunded The Congressional Review Act, 5 Unit VIII.A., you should also send a Mandates Reform Act of 1995 (UMRA) U.S.C. 801 et seq., as added by the Small copy of your request to the PIRIB for its (Public Law 104–4). Nor does it require any prior consultation as specified by Business Regulatory Enforcement inclusion in the official record that is Fairness Act of 1996, generally provides described in Unit I.B.2. Mail your Executive Order 13084, entitled Consultation and Coordination with that before a rule may take effect, the copies, identified by docket control agency promulgating the rule must number OPP–300965, to: Public Indian Tribal Governments (63 FR 27655, May 19,1998); special submit a rule report, which includes a Information and Records Integrity considerations as required by Executive copy of the rule, to each House of the Branch, Information Resources and Order 12898, entitled Federal Actions to Congress and to the Comptroller General Services Division (7502C), Office of Address Environmental Justice in of the United States. EPA will submit a Pesticide Programs, Environmental Minority Populations and Low Income report containing this rule and other Protection Agency, Ariel Rios Bldg., Populations (59 FR 7629, February 16, required information to the U.S. Senate, 1200 Pennsylvania Ave., NW., 1994); or require OMB review or any the U.S. House of Representatives, and Washington, DC 20460. In person or by Agency action under Executive Order the Comptroller General of the United courier, bring a copy to the location of 13045, entitled Protection of Children States prior to publication of this final the PIRIB described in Unit I.B.2. You from Environmental Health Risks and rule in the Federal Register. This final may also send an electronic copy of Safety Risks (62 FR 19885, April 23, rule is not a ‘‘major rule’’ as defined by your request via e-mail to: opp- 1997). This action does not involve any 5 U.S.C. 804(2). [email protected]. Please use an ASCII technical standards that would require List of Subjects in 40 CFR Part 180 file format and avoid the use of special Agency consideration of voluntary characters and any form of encryption. consensus standards pursuant to section Environmental protection, Copies of electronic objections and 12(d) of the National Technology Administrative practice and procedure, Agricultural commodities, Pesticides hearing requests will also be accepted Transfer and Advancement Act of 1995 and pests, Reporting and recordkeeping on disks in WordPerfect 6.1/8.0 file (NTTAA), Public Law 104–113, section requirements. format or ASCII file format. Do not 12(d) (15 U.S.C. 272 note). Since include any CBI in your electronic copy. tolerances and exemptions that are Dated: March 7, 2000. You may also submit an electronic copy established on the basis of a petition James Jones, under FFDCA section 408(d), such as of your request at many Federal Director, Registration Division, Office of the exemption in this final rule, do not Depository Libraries. Pesticide Programs. require the issuance of a proposed rule, Therefore, 40 CFR chapter I is the requirements of the Regulatory B. When Will the Agency Grant a amended as follows: Request for a Hearing? Flexibility Act (RFA) (5 U.S.C. 601 et seq.) do not apply. In addition, the PART 180Ð[AMENDED] A request for a hearing will be granted Agency has determined that this action if the Administrator determines that the will not have a substantial direct effect 1. The authority citation for part 180 material submitted shows the following: on States, on the relationship between continues to read as follows: There is a genuine and substantial issue the national government and the States, Authority: 21 U.S.C. 321(q), 346(a) and of fact; there is a reasonable possibility or on the distribution of power and 371. that available evidence identified by the responsibilities among the various 2. In § 180.1001, the table in requestor would, if established resolve levels of government, as specified in paragraph (d), is amended by adding ‘‘or one or more of such issues in favor of Executive Order 13132, entitled Hawkesbury melon Citrullus lanatus’’ to the requestor, taking into account Federalism (64 FR 43255, August 10, the end of the entry for ‘‘Buffalo gourd uncontested claims or facts to the 1999). Executive Order 13132 requires root powder’’ to read as follows: contrary; and resolution of the factual EPA to develop an accountable process to ensure ‘‘meaningful and timely input § 180.1001 Exemptions from the issues(s) in the manner sought by the requirement of a tolerance requestor would be adequate to justify by State and local officials in the development of regulatory policies that the action requested (40 CFR 178.32). * * * * * have federalism implications.’’ ‘‘Policies (d)* * *

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Inert Ingredients Limits Uses

*******

Buffalo gourd root powder (Cucurbita foetidissima root powder), Zucchini juice *** *** (Cucur bita pepo juice) or Hawkesbury melon Citrullus lanatus.

*******

* * * * * opposed some provisions of the Final Licensing, Federal Maritime [FR Doc. 00–6863 Filed 3–21–00; 8:45 am] Rule. However, after reviewing these Commission, 800 North Capitol BILLING CODE 6560±50±F comments, the Department has Street, NW, Washington, DC 20573– concluded that the comments raised no 0001; (202) 523–5788 significant issues not addressed Thomas Panebianco, General Counsel, DEPARTMENT OF HEALTH AND previously in the history of this Federal Maritime Commission, 800 HUMAN SERVICES rulemaking. Indeed, the comments North Capitol St., NW, Washington, raised issues which were addressed in DC 20573–0001; (202) 523–5740 42 CFR Part 121 the amendments published on October SUPPLEMENTARY INFORMATION: On 20, 1999 (64 FR 56650), and in February 14, 2000, the Federal Maritime Organ Procurement and explanatory language in the preamble to Commission (‘‘FMC’’ or ‘‘Commission’’) Transplantation Network; Response to those amendments. Comment Period For these reasons, the Department has published a proposed rule to amend 46 determined that no further amendments CFR 515.11(c) to allow affiliated AGENCY: Health Resources and Services companies to have the same qualifying Administration, HHS. to the Final Rule are warranted by the most recent public comments at this individual to obtain a license under this ACTION: Final rule; response to time. part. 65 FR 7335. The proceeding was comments. initiated in response to a petition filed Dated: March 17, 2000. with the Commission by the National SUMMARY: Section 413 of the Ticket to Claude Earl Fox, Customs Brokers & Forwarders Work and Work Incentives Administrator, Health Resources and Services Association of America (‘‘NCBFAA’’) Improvement Act of 1999, signed into Administration. which sought the issuance of a law by the President on December 17, declaratory order confirming, pursuant 1999, provided that the Organ Approved: March 17, 2000. to 46 CFR 515.11(c) (1999), that a single Procurement and Transplantation Donna E. Shalala, individual can act contemporaneously Network (OPTN) Final Rule published Secretary. on April 2, 1998, together with the as the qualifying individual for both an [FR Doc. 00–7177 Filed 3–20–00; 12:19 pm] ocean freight forwarder and a non- amendments published on October 20, BILLING CODE 4160±15±P 1999, was not to become effective before vessel-operating common carrier March 16, 2000. The Department (‘‘NVOCC’’), as long as they are affiliated entities. In the alternative, published a notice in the Federal FEDERAL MARITIME COMMISSION Register on December 21, 1999, NCBFAA sought a rulemaking to amend § 515.11(c) to achieve the same result. announcing the stay of the Final Rule 46 CFR Part 515 and informing the public of the As discussed in the notice of proposed opportunity to submit comments on the [Docket No. 99±23] rulemaking, the Commission denied NCBFAA’s petition for a declaratory Final Rule, as amended, for a 60-day In the Matter of a Single Individual period. After considering the comments order, and opted to address its concerns Contemporaneously Acting as the through a rulemaking. submitted, the Department has Qualifying Individual for Both an determined that no further amendments Although not addressed in NCBFAA’s Ocean Freight Forwarder and a Non- petition, the Commission also proposed to the Final Rule are warranted at this Vessel-Operating Common Carrier time. to amend the definition of ‘‘branch office’’ at 46 CFR 515.2(c), by removing DATES: The Final Rule published on AGENCY: Federal Maritime Commission. the last sentence of the definition, April 2, 1998 (63 FR 16296) and ACTION: Final rule. which states that the term does not amended on October 20, 1999 (64 FR include a separately incorporated 56650) became effective on March 16, SUMMARY: The Federal Maritime branch office. We explained that the 2000. Commission amends its regulations pertaining to the licensing requirements Commission has recognized separately FOR FURTHER INFORMATION CONTACT: of ocean transportation intermediaries incorporated branch offices elsewhere Lynn Rothberg Wegman, Director, in accordance with the Shipping Act of in part 515, particularly with respect to Division of Transplantation, Office of 1984, as amended by The Ocean the licensing and financial Special Programs, HRSA, 5600 Fishers Shipping Reform Act of 1998. We are responsibility requirements, and that Lane, Room 7C–22, Rockville, Maryland also republishing a certification process the proposed modification should 20857. Telephone: 301–443–7577. pertaining to drug convictions that was remove any potential confusion. SUPPLEMENTARY INFORMATION: In previously omitted. Finally, we noted that in response to the Federal Register notice promulgating the rules to implement the of December 21, 1999 (64 FR 71626), the DATES: This rule becomes effective Ocean Shipping Reform Act of 1998, Department received 2,561 public March 22, 2000. Pub. L. 105–258, 112 Stat. 1902, in comments. Of these, 2,205 were form FOR FURTHER INFORMATION CONTACT: Docket No. 98–28, Licensing, Financial letters. All of the form letters and a Sandra L. Kusumoto, Director, Bureau of Responsibility Requirements and majority of the individual comments Consumer Complaints and General Duties for Ocean

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Transportation Intermediaries, we Description and an Estimate of the However, the Commission believes that inadvertently failed to carry over Number of Small Businesses to Which the new rule will have no adverse § 510.12(a)(2) into part 515. That section the Rule Will Apply impact on small entities, and further, was a certification process to effect the The Commission believes that the that the impact will be to benefit OTIs requirements of 21 U.S.C. 862, which final rule will benefit OTIs by allowing by allowing affiliated entities to have provides that Federal benefits shall be affiliated ocean freight forwarders and the same qualifying individual to obtain withheld in certain circumstances from NVOCCs to have the same qualifying an OTI license. individuals who have been convicted of individual in order to obtain a license Steps the FMC Has Taken To Minimize drug distribution or possession in under this part. At present, there are the Significant Economic Impact on Federal or state courts. approximately 600 OTIs with affiliated Small Entities Consistent With the For the reasons set forth below, the ocean freight forwarder and NVOCC Stated Objectives of Applicable Commission adopts the rules as operations affected by the proposed Statutes, Including a Statement of the proposed. rulemaking, including approximately 20 Factual, Policy and Legal Reasons for First, the Commission received one sole proprietorships. Selecting the Alternative in the Final comment in response to the notice of Entities affected by the current rule, Rule, and the Reasons for Rejecting proposed rulemaking from NCBFAA, particularly sole proprietorships, could Each of the Other Significant who finds the Commission’s proposal to have been required to modify their Alternatives amend § 515.11(c) sufficiently broad to existing business structures, either by: The Commission invited comments to remedy and eliminate the problems (1) Merging their affiliated ocean freight identified by NCBFAA in its petition. In the initial regulatory flexibility analysis forwarder and NVOCC operations; (2) from all interested parties. However, as addition, NCBFAA notes that it agrees creating a branch office; or (3) hiring with the Commission that the proposal stated above, no public comments were another qualifying individual to oversee received in response to the initial will reduce unnecessary regulatory their operations. However, the burdens and provide savings to those regulatory flexibility analysis. The Commission’s Bureau of Consumer Commission believes that the only companies that would have been Complaints and Licensing (formerly the otherwise forced to modify their significant impact of the rulemaking Bureau of Tariffs, Certification and will be to benefit OTIs by allowing business structures. NCBFAA asserts Licensing) has refrained from denying that the proposal will not serve to affiliated ocean freight forwarders and licenses on this basis pending the NVOCCs to have the same qualifying diminish the professionalism and conclusion of this proceeding. responsibility of ocean transportation individual. intermediaries (‘‘OTIs’’), because the Description of the Projected Reporting, The modifications to the proposed entities will be supervised by a person Recordkeeping and Other Compliance rule, the reasons for selecting alternative possessing the requisite expertise in Requirements of the Rule, Including an approaches, and the reasons for accordance with the Commission’s Estimate of the Classes of Small Entities rejecting initial proposals, if any, are licensing requirements. Finally, That Will Be Subject to the Requirement each thoroughly described in the NCBFAA declares that it fully supports and the Types of Professional Skills Supplementary Information to the final the proposal, believing it to be in the Necessary for the Preparation of the rule. public interest, and requests that the Report or Record Relevant Federal Rules That May Commission issue a final rule in the The Commission is not aware of any Duplicate, Overlap, or Conflict With the proposed form at the earliest date. additional reporting, recordkeeping or New Rule We appreciate NCBFAA’s comments other compliance requirements as a and accordingly adopt as final the The Commission is not aware of any result of the proposed rulemaking. other federal rules that duplicate, amendment to § 515.11(c). Rather, the Commission believes that In addition, no comments were overlap, or conflict with the final the impact of the new rule will be rulemaking. submitted with respect to either the primarily to benefit sole proprietorship proposed modification to the definition OTIs by permitting affiliated entities to List of Subjects in 46 CFR Part 515 of branch office or the republication of have the same qualifying individual to Exports, Freight forwarders, Non- the certification required by 21 U.S.C. satisfy the licensing requirements of this vessel-operating common carriers, 862. Therefore, the proposed part. Ocean transportation intermediaries, modifications are carried forward in the The benefit of the final rulemaking Licensing requirements, Financial final rule. can be measured primarily as the responsibility requirements, Reports Final Regulatory Flexibility Analysis savings to sole proprietorships of not and recordkeeping requirements. having to modify their business Need for and Objective of the Rule For the reasons stated in the structures as described above. Moreover, preamble, the Federal Maritime In response to a petition filed by the it will benefit corporations and Commission amends 46 CFR chapter IV, NCBFAA, the FMC is amending 46 CFR partnerships with affiliated freight subchapter B, as set forth below: 515.11(c) to allow affiliated ocean forwarder and NVOCC operations by freight forwarder and NVOCC entities to giving them greater flexibility in PART 515ÐLICENSING, FINANCIAL have the same qualifying individual in selecting a single qualifying individual RESPONSIBILITY REQUIREMENTS, order to obtain a license under this part. for both organizations. However, it is AND GENERAL DUTIES OF OCEAN not feasible to specifically quantify TRANSPORTATION INTERMEDIARIES Summary of the Significant Issues these benefits because individual OTI Raised by Public Comments in Response operations vary dramatically in scope 1. The authority citation is amended to the Initial Regulatory Flexibility and overhead. to read as follows: Analysis The Chairman cannot certify that the Authority: 5 U.S.C. 553; 31 U.S.C. 9701; 46 No public comments were received in final rulemaking will not have a U.S.C. app. 1702, 1707, 1709, 1710, 1712, response to the initial regulatory significant economic impact on a 1714, 1716, and 1718; Pub. L. 105–383, 112 flexibility analysis. substantial number of small entities. Stat. 3411; 21 U.S.C. 862.

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2. In § 515.2, revise paragraph (c) to (2) An individual who is applying for Highway Traffic Safety Administration, read as follows: a license in his or her own name must 400 Seventh Street, SW., Washington, complete the following certification: DC 20590. § 515.2 Definitions. I, lll (Name), lll, certify under FOR FURTHER INFORMATION CONTACT: For * * * * * nonlegal issues: Stan Backaitis, Office of (c) Branch office means any office in penalty of perjury under the laws of the United States, that I have not been convicted, Crashworthiness Standards (telephone: the United States established by or after September 1, 1989, of any Federal or 202–366–4912). For legal issues: Deirdre maintained by or under the control of a state offense involving the distribution or R. Fujita, Office of the Chief Counsel licensee for the purpose of rendering possession of a controlled substance, or that (202–366–2992). Both can be reached at intermediary services, which office is if I have been so convicted, I am not the National Highway Traffic Safety located at an address different from that ineligible to receive Federal benefits, either Administration, 400 Seventh St., SW., of the licensee’s designated home office. by court order or operation of law, pursuant to 21 U.S.C. 862. Washington, DC, 20590. * * * * * SUPPLEMENTARY INFORMATION: This * * * * * 3. In § 515.11, revise paragraph (c) to document amends our regulation for read as follows: By the Commission. Anthropomorphic Test Devices (49 CFR Bryant L. VanBrakle, § 515.11 Basic requirements for licensing; part 572) by adding a new, more eligibility. Secretary. advanced 3-year-old child dummy. The new dummy, part of the family of * * * * * [FR Doc. 00–7097 Filed 3–21–00; 8:45 am] (c) Affiliates of intermediaries. An BILLING CODE 6730±01±P Hybrid III test dummies, is more independently qualified applicant may representative of humans than the be granted a separate license to carry on existing 3-year-old child test dummy in the business of providing ocean DEPARTMENT OF TRANSPORTATION part 572, and allows the assessment of transportation intermediary services the potential for more types of injuries even though it is associated with, under National Highway Traffic Safety in automotive crashes. The new dummy common control with, or otherwise Administration can be used to evaluate the effects of air related to another ocean transportation bag deployment on out-of-position intermediary through stock ownership 49 CFR Part 572 children, and can provide a fuller evaluation of the performance of child or common directors or officers, if such [Docket No. NHTSA±2000±7051] applicant submits: a separate restraint systems in protecting young application and fee, and a valid RIN 2127±AG 77 children. instrument of financial responsibility in Anthropomorphic Test Devices; 3- NHTSA has already specified a the form and amount prescribed under Year-Old Child Crash Test Dummy number of child test dummies in part § 515.21. The qualifying individual of 572, including a 3-year-old child one active licensee shall not also be AGENCY: National Highway Traffic dummy (the specifications for which are designated as the qualifying individual Safety Administration (NHTSA), set forth in subpart C of part 572). That of an applicant for another ocean Department of Transportation. dummy, along with dummies transportation intermediary license, ACTION: Final rule. representing a newborn infant, a 9- unless both entities are commonly month-old and a 6-year-old child, are owned or where one directly controls SUMMARY: This document amends our used to test child restraint systems to the other. regulation for Anthropomorphic Test the requirements of Federal Motor * * * * * Devices by adding a new, more Vehicle Safety Standard No. 213 (49 4. In § 515.12, revise paragraph (a) to advanced 3-year-old child dummy. The CFR 571.213). These test devices enable read as follows: new dummy, part of the family of NHTSA to evaluate motor vehicle safety Hybrid III test dummies, is more systems dynamically, in a manner that § 515.12 Application for license. representative of humans than the is both measurable and repeatable. (a) Application and forms. existing Subpart C 3-year-old child Today’s final rule is part of NHTSA’s (1) Any person who wishes to obtain dummy in our regulation. Adding the effort to add improved child test a license to operate as an ocean dummy to our regulation is a step dummies in part 572. We recently transportation intermediary shall toward using the dummy in the tests we amended part 572 to add a new, more submit, in duplicate, to the Director of conduct to determine compliance with advanced, Hybrid III type 6-year-old the Commission’s Bureau of Tariffs, our safety standards. The use of the child test dummy. We will soon issue a Certification and Licensing, a completed dummy in our compliance tests will be final rule adding a 12-month-old application Form FMC–18 Rev. addressed in separate rulemaking (CRABI 12) child test dummy. Together (‘‘Application for a License as an Ocean proceedings. with the dummy adopted today, the Transportation Intermediary’’) new child test dummies would be used accompanied by the fee required under DATES: The amendment is effective on in tests we have proposed in our § 515.5(b). All applicants will be May 22, 2000. The incorporation by occupant crash protection standard (49 assigned an application number, and reference of certain publications listed CFR 571.208) to assess the risks of air each applicant will be notified of the in the regulations is approved by the bag deployment for children, number assigned to its application. Director of the Federal Register as of particularly unrestrained or improperly Notice of filing of such application shall May 22, 2000. restrained children. The new child test be published in the Federal Register Petitions for reconsideration of the dummies could also be incorporated and shall state the name and address of final rule must be received by May 8, into Standard No. 213 for use in the applicant and the name and address 2000. compliance testing of child restraint of the qualifying individual. If the ADDRESSES: Petitions for reconsideration systems. (Today’s final rule only applicant is a corporation or should refer to the docket number of concerns adding the new 3-year-old test partnership, the names of the officers or this document and be submitted to: dummy to part 572. Issues relating to partners thereof shall be published. Administrator, Room 5220, National whether this or the other new dummies

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00052 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15255 should be incorporated into the the basis for our discussions with a for Multi-sized Hybrid III Based Dummy compliance tests for Standards Nos. 208 special task force of the Society of Family.’’ At that time, the funding or 213, or into other standards, will be Automotive Engineers (SAE) J–211 covered only the development of decided in separate rulemaking actions.) Instrumentation Committee concerning dummies representing a small female our work on the dummy. adult and a large male adult. Summary of Final Rule Development of a Hybrid III 3-year-old Background The specifications for the Hybrid III dummy began in 1992 when the SAE type 3-year-old test dummy (hereinafter The need for the H–III3C dummy Small Female, Large Male and Six-Year- referred to as the H–III3C dummy) arose as it became evident that air bags Old Child Dummies Task Group 1 consist of a drawing package that shows posed risks for out-of-position children. identified a need for a new dummy the component parts, the subassemblies, Experience in using the existing 3-year- equipped with sufficient and the assembly of the complete old dummy in part 572 (Subpart C) instrumentation capable of assessing a dummy. The drawing package also showed it to be adequate for the purpose child’s interaction with both air bags defines materials and material treatment of evaluating the ability of child and child restraints. The task group processes for all the dummy’s restraints to protect against the risk of noted that the dummy should be component parts, and specifies the injury under the test conditions suitable for use in sitting, kneeling and dummy’s instrumentation and specified by Standard No. 213. standing postures. After a preliminary instrument installation methods. In However, that dummy’s injury design was conceived and reviewed, a addition, there is a manual containing assessment is limited to head and chest prototype dummy was developed and disassembly, inspection, and assembly measurements; it is not adequate for evaluated by the task group from 1995 procedures, and a dummy parts list. evaluating the safety of an air bag to 1997. These drawings and specifications environment. In May 1997, NHTSA initiated a ensure that the dummies will vary little For example, neck injury is one of the thorough test and evaluation program of from each other in their construction primary causes of air bag-related the dummy. On completion of our and are capable of consistent and fatalities to out-of-position children. evaluation in the fall of 1998, we repeatable response in the impact Thus, to evaluate the effects of air bag tentatively concluded that it was ready environment. The parts list and deployment, a dummy must have a high for incorporation into part 572. On drawings are available for inspection in degree of biofidelity in kinematics and January 28, 1999, we published an NHTSA’s docket (room 5220, 400 impact responses during neck flexion NPRM proposing to incorporate the H– Seventh St., SW., Washington, DC and extension. However, because the III3C dummy into part 572 as subpart P, 20590, telephone (202) 366–4949). (We neck of the existing dummy does not and invited comments (64 FR 4385). are using NHTSA’s docket because the have a multi-segment design, it has drawings cannot be electronically limited biofidelity in these areas. Comments on the NPRM scanned into the DOT Docket By contrast, the more advanced H– We received comments from eight Management System.) Copies may also III3C dummy provides a more human- organizations: Robert A. Denton, Inc. be obtained from Reprographic like impact response than the existing 3- (Denton), General Motors North Technologies, 9000 Virginia Manor year-old child dummy, as well as a America (GM), Advocates for Highway Road, Beltsville, MD 20705; Telephone: broader selection of instruments to and Auto Safety (Advocates), Toyota (301) 210–5600. assess the injury potential to child Motor Corporation (Toyota), National NHTSA is specifying impact occupants. Of particular significance are Transportation Safety Board (NTSB), performance criteria to serve as the multi-segmented neck, multi-rib Mitsubishi Motors R & D of America, calibration checks and to further assure thorax, and the ability to monitor Inc. (Mitsubishi), the Alliance of the kinematic uniformity of the dummy submarining tendencies that could be Automobile Manufacturers (Alliance), and the absence of structural damage related to abdominal loading. Because of and the SAE Dummy Testing Equipment and functional deficiency from previous the greater biofidelity and extended Subcommittee (SAE). use. The tests address head, neck, and measurement capability of the H–III3C No commenter opposed adding the thorax impact responses and assess the dummy, it can be used to evaluate the H–III3C dummy to part 572. Advocates, resistance of the lumbar spine-abdomen safety of children in a much wider array Toyota and NTSB expressly supported region to upper torso flexion motion. of environments than the existing the incorporation of the H–III3C test The agency has adopted generic dummy, including assessing the effects dummy. GM, based on its experience specifications for all of the dummy- of air bag deployment on out-of-position with the H–III3C dummy, believes the based sensors. For most earlier children. test dummy is generally suitable for use dummies, the agency specified sensors The H–III3C dummy is part of a in crash testing. GM supported the by make and model. However, we family of Hybrid III-type dummies. The proposal with suggested changes to believe that approach is unnecessarily first Hybrid III dummy was a 50th correct or clarify various specifications restrictive and limits innovation and percentile male dummy. NHTSA has in the NPRM for the dummy.2 Denton competition. Accordingly, the specified use of this dummy for (which manufactures load cells used in specifications adopted today reflect compliance testing under Standard No. crash dummies), Mitsubishi and Toyota performance characteristics of the 208, Occupant Crash Protection, since also had technical comments on various sensors used in our evaluation tests of 1986, initially for optional use, and aspects of the proposal. In general, the dummy, that are identified by make more recently on a mandatory basis. The commenters addressed the following and model in a NHTSA technical report need for a family of Hybrid III-type issues: calibration procedures and ‘‘Development and Evaluation of the dummies, having considerably Hybrid III 3-year-old Child Dummy’’ improved biofidelity and 1 The task group has been renamed the ‘‘Hybrid (December 1998). A copy of this report anthropometry, was recognized by the III Dummy Family Task Group’’. Minutes of the task is in the docket for the notice of Centers for Disease Control and groups meetings are available for review in the NHTS docket (Docket no. NHTSA98–4283) proposed rulemaking that we published Prevention (CDC) in 1987 when it 2 The Alliance’s comment consisted of a letter for this final rule (Docket No. 99–5032). awarded a contract to Ohio State fully endorsing the docket comments submitted by Those sensor characteristics were also University under the title ‘‘Development GM.

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00053 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 15256 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations specifications for the head, neck flexion concave-shaped setting jig to hold the dummy experiences some pre-impact and extension, thorax, and torso flexion; head while the angle is set, we do not kinematic lag as the inclined pendulum instrumentation specifications; see a need for requiring such a tool. accelerates downward towards the dimensional changes to dummy However, we would not object to its use vertical. If all data channels, including drawings; and the dummy’s user’s as long as the final setup of the head rotation and moment channels, were manual. orientation does not change once the jig made zero at impact, as Toyota suggests, is removed and the skull cap is the pre-impact neck rotation lag would Calibration Procedures and reattached. not be accounted for in the total rotation Specifications of the neck, which would not be in line Neck Flexion and Extension Head with the method by which For calibration, the agency proposed a biomechanical corridors were For calibration, the agency proposed a pendulum-mounted headform-neck head drop test in which the head established. assembly impact test and corresponding The neck biomechanical response response must not be less than 250 g or neck flexion and extension performance corridors were based on ‘‘flexion’’ and more than 280 g. The only comment we requirements. ‘‘extension,’’ or forward and backward received on the proposed corridor was For flexion: bending of the neck, respectively, due to from GM, which agrees with it. The (1) Plane D of the headform must inertial forces of the head from its commenter states that the corridor is rotate in the direction of preimpact neutral position. In order to measure consistent with available data reviewed flight with respect to the pendulum’s true flexion and extension during by the SAE. In view of the comment longitudinal centerline not less than 70 calibration tests, the zero level of the received, we have adopted the corridor degrees and not more than 82 degrees data channels must be established prior as proposed in the NPRM. occurring between 45 milliseconds (ms) to initiation of the drop test, when the In the proposed head drop test, the and 60 ms from time zero, and (2) the longitudinal centerline of the neck and head assembly is suspended for peak moment about the occipital pendulum are parallel with respect to forehead impact from a specified height condyles must not be less than 44 ± each other, i.e., when the pendulum at an angle of 62 1 degrees between Newton meters (N-m) and not more than hangs down in a vertical position. With plane D (i.e., the reference surface plane 56 N-m occurring within the minimum regard to the pendulum accelerometer of the head) and the plane of the impact and maximum rotation interval and (3) data channel, that channel must be surface. Mitsubishi said that the H–III3C the positive moment shall decay for the zeroed at time zero in order to get the dummy’s head is smaller than that of first time to 10 N-m in the time frame correct integrated velocity curve from the 50th percentile dummy and thus the between 60 ms and 80 ms. which the velocity pulse readings are surface defining plane D on the neck For extension: taken at specific time intervals. load mass simulator is too small to (1) Plane D of the headform must Accordingly, as proposed in the NPRM, correctly insert an angle meter. The rotate in the direction of preimpact the final rule will retain the time zero commenter states that this makes it very flight with respect to the pendulum’s setting procedure for the pendulum data difficult to set up the angle between the longitudinal centerline not less than 80 channel, but not for the neck channels. lower surface plane of the neck load degrees and not more than 90 degrees mass simulator and the plane of impact occurring between 50 ms and 65 ms Neck Flexion surface to the required 62±1 degrees. from time zero, and (2) the peak GM states that according to SAE- Mitsubishi feels that the angle for the negative moment about the occipital compiled data from necks produced by head drop test can be more easily condyles must have a value not less First Technology Safety Systems (FTSS), determined and set if an angle of 28 than ¥42 N-m and not more than ¥53 a dummy manufacturer, we should degrees is taken from the transverse N-m occurring within the minimum and adjust the peak moment corridor from plane of the skull cap to skull interface maximum rotation interval and the the proposed 44–56 N-m range to 40–53 with the skull cap removed. Mitsubishi negative moment shall decay for the N-m. The proposed range was based on also recommends using a concave first time to ¥10 N-m in the time frame an average of 50 N-m, while the shaped setting jig to hold the dummy between 60 and 80 ms. suggested adjusted corridor is based on head when the angle is measured. The regulatory text proposed for the an average of 46.5 N-m. GM agrees with We agree with Mitsubishi’s H–III3C dummy states in the rest of the neck flexion performance observation that in the head test § 572.143(c)(3)(i), ‘‘The moment and requirements and the pendulum pulse procedure, it would be easier to set the rotation data channels are defined to be specifications in NPRM. head orientation relative to the skull/ zero when the longitudinal centerline of We agree that the corridor should be skull cap interface. However, we believe the neck and pendulum are parallel.’’ adjusted, but not to the extent suggested it would be more convenient for test Section 572.143(c)(4)(i) states that time- by GM. Our analysis of the purposes to establish a reference ‘‘D zero is defined as the time of initial recommended corridor for the neck plane’’ perpendicular to the skull/skull contact between the pendulum striker flexion moment, based on a complete cap interface. This is because we could plate and the honeycomb material. The database consisting of all data submitted use the same ‘‘D plane’’ definition for pendulum accelerometer data channel by the SAE and additional test data from head drop tests and neck pendulum shall be at the zero level at this time. NHTSA’s Vehicle Research and Test tests in which a headform is used. Toyota suggests that all data channels Center, indicates that the average peak Further, it is the same D plane for the neck extension and flexion tests moment is at 46.6 N-m with a standard definition as used for Hybrid III 6-year- be at the zero level at time zero, rather deviation (s.d.) of 3.3. Two standard old child and 5th percentile female than only the pendulum accelerometer deviations about the mean yield a adult test dummies. As the ‘‘D plane’’ is data channel. We disagree. Our tests corridor width of ±14.2%. While GM is defined to be perpendicular to the skull/ indicate that the H–III3C dummy neck correct that narrowed calibration skull cap interface, there would not be is much more flexible than those of the corridors reduce the probability that a a need to remove the skull cap or to use Hybrid III 6-year-old and 5th percentile complying test dummy can be a setting jig. With respect to female adult dummies. As a result, the produced, a wide corridor of this Mitsubishi’s suggestion to use a head-neck complex of the H–III3C magnitude could permit the

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15257 manufacture of necks with a degree of corridor between ¥43.7 N-m and ¥53.3 GM indicates agreement with most of variability that could complicate N-m. The revised range is particularly the thorax performance requirements enforcement efforts. It is accepted important to assure that the variability and probe specifications in the NPRM, practice in the biomechanics of the critical extension moment is not with the exception of the peak force community to judge the adequacy of a the cause of contention in vehicle corridor. GM suggests, based on SAE component’s variability in subsystems compliance tests. As noted in the above data, that the corridor should be shifted tests as 0–5% being in the excellent discussion, improvements in quality upward from the proposed range of range, 5–8% good, 8–10 % marginally control of necks in production would 600–800 N to 650–850 N. GM’s acceptable and above 10% not achieve the desired repeatability in suggested corridor is based on an acceptable. The values proposed by GM response. average of 750 N, and therefore its would lie outside the acceptable range percentage is slightly lower in width (by Neck-Headform Flexion/Extension of variability. Using the 10% value as approximately 1% (13 % vs. 14%)). Rotation the maximum allowable variability, we We examined all of the thorax impact are revising the corridor for neck flexion The NPRM proposed headform data available to us, which includes the to a value of 42 N-m minimum and 53 rotation versus time requirements in SAE data supplied in docket comments N-m maximum. The above specification flexion and extension, in and our data generated at VRTC. The will have minimal effects on dummy 572.143(b)(1)(i) and 572.143(b)(2)(i), combined data sets yield an average users, but dummy manufacturers will that were identical to the requirements impact response of 746 N with s.d. of 32 have to produce necks to lower levels of for the existing 3-year-old child dummy N, indicating that the NPRM corridor variability than is indicated in test data specified in subpart C. When the needs adjustment in both the mean generated by dummy manufacturer Subpart C dummy was adopted into part response value and the corridor’s width. FTSS. Because FTSS has produced 572 in 1979, a means of measuring the The data suggest that the response necks with a lower variability, achieving peak moment of the neck was not corridor’s width can be set at ±2 s.d. the range is practicable. available, so the rotation-displacement while remaining just above the 8% good specifications were needed. Since 1979, to marginal acceptability norm. Neck Extension however, the moment-measuring load Accordingly, this final rule adjusts the GM notes that SAE compiled data cell became available for this purpose. thorax response corridor to a new range suggest a need to shift the peak rotation With the use of a six-axis load cell on between 680 N minimum and 810 N corridor in extension from 80–90 the H–III3C dummy, the timing of the maximum, which is within but slightly degrees to 83–93 degrees. This peak moment can be measured and narrower than the response range suggested revision does not increase the more precisely expressed than when recommended by GM. width of the corridor proposed in the using a headform rotation plot. We This final rule also adjusts the limit NPRM, but raises the mean value from believe that specifying a minimum- in § 572.144(b)(1) of the NPRM that the 85 degrees to 88 degrees. Also, GM maximum peak moment within a peak force measured during the believes that the data indicate a need to maximum headform rotation window is sternum-to-spine displacement interval widen the peak negative extension sufficient to control the dynamic must not be more than 800 N at any moment corridor from the range of ¥42 properties of the neck (to control head time. In its comment on the NPRM for N-m to ¥53 N-m to a range of ¥41 kinematics) without having also the Hybrid III 5th percentile female N-m to ¥56 N-m as a reflection of a headform rotation in time requirements. dummy, TRC suggested that an inertial slightly larger spread of the SAE data A six-axis load cell simplifies the data spike at the beginning of the test base. The revised peak moment corridor procedure and removes the need for a should not be subject to this limit. The has nearly the same average (–48 N-m), redundant requirement for measuring agency determined that the initial force but is 4% larger in spread than that head translation/rotation versus time spike is an artifact of the inertial mass proposed in the NPRM (15.5% vs. characteristics. interaction between the impactor and 11.5%). GM agrees with the rest of the Accordingly, this final rule does not the dummy, has no biomechanical neck extension performance corridor adopt proposed sections 572.143(b)(1)(i) significance, and is not an indicator of requirements and pendulum pulse and 572.143(b)(2)(i) of the NPRM. a bad rib set. The final rule for the 5th specifications in NPRM. percentile female adult dummy We have examined all of the available Thorax accommodated the existence of the extension calibration data. The data For calibration, the agency proposed initial data spike by limiting peak force indicate that the mean peak rotation is the following impactor probe test and measurements only to a specified 88 degrees with a s.d. at ±2.2. degrees. performance requirements: (1) The sternum displacement after the initial Accordingly, we agree with GM that the maximum sternum displacement force spike has occurred. Today’s final peak rotation corridor should be relative to the spine must be not less rule for the Hybrid III 3-year-old child adjusted to the recommended 83–93 than 32 mm and not more than 38 mm, dummy uses the same approach in degrees range. As for peak negative and (2) during this displacement accommodating the initial data spike, moment, we agree with GM’s interval, the peak force measured by the and accordingly excludes force data recommended mean value of ¥48.5 N- probe must be not less than 600 N and from the first 12.5 mm of sternum m but do not agree with the not more than 800 N. compression. recommended corridor range of ±15.5%. Mitsubishi is concerned about the Thus, this final rule limits peak forces The available data yields a s.d. of 3.7 NPRM’s lack of dimensional tolerance that occur in what we term a ‘‘transition which corresponds to the ±15% for the 50.8 mm diameter of the thorax compression zone’’ prior to reaching the response corridor at 2 s.d. As explained impact test probe. The commenter specified sternum compression corridor above in the discussion of neck flexion recommends the probe diameter at limit. The transition compression zone requirements, the desirable dispersion 50.8±0.25 mm. We have added the starts at 12.5 mm and ends at 32 mm. range for consistency in repeatability suggested dimensional tolerance along We selected 12.5 mm as the beginning should be below 8%, but should not with other modifications involving the of the zone based on available force- exceed 10%. Applying the 10% limit development of generic specifications compression data which indicate that value yields a peak force response for all impactors. the initial inertial force spikes occur

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00055 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 15258 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations between 6 to 8 mm of compression. dummies. The commenter also believes posterior surface of the spine box, i.e., Thereafter, the force diminishes and that a better definition of the loading 45 degrees from the horizontal, rather does not begin to rise again well after adapter bracket is needed to avoid than at an angle of 62–65 degrees from the sternum reaches 12.5 mm of possible interference with the dummy horizontal. Toyota believes that the compression. during this test. Mitsubishi recommends applied pull force at the 62–65 degree Unlike the initial force spikes, forces specifying a ±0.02 kg tolerance to the angle produces not only a flexion within the transition compression zone 0.75 kg weight of the loading adapter moment, but also a compression force should be limited because excessively bracket. on the lumbar spine. Toyota states that large force spikes are indicative of We agree with Mitsubishi that the applying the force perpendicular to the deficiencies in the chest structure. mass of the loading bracket should be posterior surface of the spine box is a Biomechanical response corridors reduced. In light of the comment, we more reasonable method to evaluate indicate that high peaks in the transition have reviewed the masses involved in flexion characteristics of the lumbar compression zone would not be the system that flexes the dummy. As a spine, since it will minimize humanlike and not likely to occur in a result of this review, we are revising the compression. Toyota notes that the well functioning physical spring-mass specification of mass associated with lumbar flexion procedure for the Hybrid system, which is representative of the the pull test to a maximum of 0.70 kg. III 6-year-old dummy specifies the dummy’s rib cage. An excessively high This mass includes all of the dummy- applied force angle perpendicular to the peak force occurring in the transition based attachments and hardware, 1⁄3 of thoracic spine box instrumentation compression zone would indicate a the pulling wire, and the load cell that cavity mating surface. mechanical deficiency within the rib is used to measure the pull load. We do not share Toyota’s concern cage structure, even though the peak Inasmuch as the same load cell is being about compression forces on the lumbar force requirement within the specified used for tests of other size dummies, spine during the flexion test. The compression corridor is met. there is little flexibility to reduce its compressive force on the lumbar spine Accordingly, an additional upper force weight short of designing a new one, is of little consequence since it is always peak limit prior to the specified which would unnecessarily delay this of the same magnitude from test to test displacement corridor would provide rulemaking. Because we are specifying a if the dummy conforms to specified pull significant assurance that the dummy’s maximum weight for the entire system, force requirements. We also note that in rib cage has human-like response and test facilities will have some flexibility any flexion test, compression forces adequate structural integrity. Limiting in selecting the weight of individual within the lumbar spine are force peaks in the transition zone is components of the system, such as the unavoidable. However, in line with consistent with the specifications for the loading adaptor bracket. Thus, a weight Toyota’s suggestion, the H–III3C torso Hybrid III 6-year-old child and 5th tolerance for the loading adaptor bracket flexion calibration procedure has been percentile female adult dummies. is not needed. revised to be consistent with the new We have analyzed the H–III3C We have clarified section S572.145(c), Hybrid III 6-year-old child dummy and dummy’s thorax response and found which specifies the installation of the 5th percentile adult female adult that statistically the peak force of a well- loading bracket, its design, the dummy, in that the pulling force is functioning dummy in the transition attachment of the pulling mechanism applied perpendicularly to the thoracic compression zone could be as high as and the sequence of applying and spine box instrumentation cavities’ 860 N. Accordingly, we are including in releasing of the pull forces. Figure P5 rearmost surface. This location does not § 572.144 (b)(1) a 860 N peak force limit contains considerable additional detail remove the vertical forces on the lumbar for a compression zone bounded regarding the loading bracket, its spine as Toyota has suggested, but it between 12.5 mm and 32 mm. installation on the dummy, and does clarify the orientation of the pull We have also expanded alignment of the point of load force relative to the torso. § 572.144(b)(2) to include an application with respect to the occipital Toyota recommends specification of explanation of how internal hysteresis condyle. recovery time between repeated tests to of the rib cage is to be measured and Toyota suggests removal of the upper enable the dummy skin to recover and included in subsection (c) a more and lower arms for the calibration test, thereby increase the likelihood of precise description of the clothing that which is consistent with the procedure repeatable calibration tests. The is used on this dummy during the for the 50th percentile male dummy in commenter suggests a thirty-minute thorax impact test. subpart B of part 572. Toyota believes waiting (recovery) period, to be that the applied load will vary due to consistent with specifications in part Torso interference between the lower arm and 572 for the Hybrid III 50th percentile For calibration, the agency proposed femur and a flat rigid seating surface. As male dummy. We had included a thirty- the following torso flexion test and the mass-moment of the upper body of minute period in the NPRM, see performance requirements: (1) When the the dummy will be reduced by the proposed § 572.146(p), and have torso is flexed 45 degrees from vertical removal of the upper and lower arms, adopted it in this final rule. by an applied force vector at 62 degrees Toyota requests the agency to review the GM objects to the proposed to 65 degrees from horizontal, the test condition for the load application. requirement of the torso flexion test as resistance force must not be less than We have reviewed data from our tests a calibration test. The commenter 130 N and not more than 180 N, and (2) and found that the procedure specified believes that the dummy’s torso flexion upon removal of the force, the upper in our calibration tests has not generated performance can be adequately torso assembly returns to within 10 any interference problems by the arms controlled by specifying lumbar spine degrees of its initial position. as Toyota suggests. We do not believe and abdominal insert designs, and that Mitsubishi believes the 0.75 kg mass our test procedure will cause the periodic inspections would be adequate for the loading adapter bracket that problem described by the commenter. to assure dummy performance rather holds the torso is proportionally too Accordingly, this aspect of the proposed than a calibration test. GM also states large considering the dummy’s test procedure is unchanged. that the proposed injury measurements relatively small mass and its soft spine Toyota requests that the pull force from out-of-position (OOP) tests with air with respect to the larger size Hybrid III angle be applied perpendicular to the bags are not expected to be affected by

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00056 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15259 the lumbar spine-abdomen region of the consistent return would indicate that damage or that some aspect of vehicle dummy, because typically in OOP tests the forces of restitution are intact, while or equipment design was responsible for maximum loading of the dummy occurs no or indefinite return would indicate a the dummy failure.3 well before gross motion of the upper substantial change within the internal Instrumentation torso. The commenter also believes that mechanisms of the mid-torso structure, with regard to the use of the dummy in such as failure of the lumbar spine, The agency proposed generic testing child restraint systems, the abdomen, or a substantial shift between specifications for all of the dummy- dummy would be expected to be interfacing body segments within the based sensors, which included— reasonably well restrained, which abdominal cavity. (1) The accelerometer designated as would limit the flexion of the upper Other Issues Relating to Calibration SA572–S4; torso. For these reasons, GM believes Requirements and Procedures (2) Force and/or moment transducers: the calibration test is not critical for (a) Anterior-superior iliac spine load incorporation of the dummy into part GM suggests that the specifications for cell SA572–S17, 572 and should not be required. the H–III3C dummy should include a (b) Pubic load cell SA572–S18, Alternatively, GM suggests, if we were requirement that the dummy must meet (c) Neck SA572–S19, to mandate this test, the 10-degree torso calibration specifications following a (d) Lumbar spine SA572–S20, return angle requirement should be NHTSA compliance test. The (e) Shoulder load cell SA572–S21, and removed because GM believes it is not commenter states that part 572 has such (f) Acetabulum load cell SA572–S22; needed to evaluate the bending stiffness a requirement for dummies adopted and previously, while the rulemaking of the lumbar spine/upper torso (3) The thorax based chest deflection proposals on the new Hybrid III 6-year- assembly. potentiometer SA572–S50. We disagree with GM that the torso old, 5th percentile female adult, and on flexion calibration tests should not be the CRABI 12-month-old infant have not Comments on proposed generic sensors required. During a crash test, the included such a requirement. GM were received from Denton and GM. dummy’s parts interact with each other believes that the post-test dummy state Load Cell Sensitivity (Output) as a system. This type of interaction can of compliance is very important because Denton notes that the load cell be best controlled or verified by a test non-complying compliance test results sensitivity specification was that exercises all of the interacting parts. may be dummy-related. Without post- unnecessarily restrictive without Further, we believe that the dummy’s test dummy verification (calibration), torso flexion stiffness also affects the GM claims, no one can determine with notable benefit. Denton argues that kinematics of the head, neck, and upper reasonable certainty whether a non- input/output specifications were not torso with respect to the lower torso. compliance is due to a test dummy needed because future technology may The torso stiffness will thus influence, anomaly or to a real vehicle issue. produce systems that could change their for example, how far and at what We disagree. The pre-test calibration definition. Accordingly, Denton velocity the dummy’s head or other should adequately address the requests that all references to the type parts will move, and will partly suitability of the dummy for testing. We of output be removed from drawings determine the orientation of the are concerned that the post-test SA572–S17, –S18, –S19, –S20, –S21, dummy’s upper body half when calibration requirement could handicap and –S22. encountering a deploying air bag. and delay our ability to resolve a We do not agree with Denton that Accordingly, it is important that the potential vehicle or motor vehicle output specifications are not needed. A torso flexion calibration test for this equipment test failure solely because sensor is only good if it is capable of dummy be included to validate the the post-test dummy might have generating some kind of a controlled dummy prior to a dynamic test. experienced a component failure and output for a given input. Accordingly, Inasmuch as there were no comments might no longer conform to all of the we are retaining input/output opposing the proposed requirement that specifications. On several occasions requirements for all of the specified the torso’s resistance force must be from during the past few years, a dummy has generic sensors. 130 N to 180 N force when flexed 45 been damaged during a compliance test Bridge Resistance Specifications degrees from vertical, we are adopting such that it could not satisfy all of the the proposed specification. We are also post-test calibration requirements. Yet Denton suggests that bridge resistance adopting the 10-degree torso return the damage to the dummy at the time it specifications, shown in drawings angle requirement, as proposed in the occurred did not affect the dummy’s SA572–S18, –S19 and –S21, are not NPRM. GM suggests in its comment that ability to accurately measure the needed and should be removed. The ‘‘* * * the proposed torso return angle performance requirements of the commenter believes that some test requirement (§ 572.145(b)(2)) (should) standard. We are also concerned that the facilities may prefer using other bridge be removed, because it is not needed to interaction between the vehicle or resistances than those shown on the evaluate the bending stiffness of the equipment and the dummy could be draft drawings due to their particular lumbar spine/upper torso assembly.’’ directly responsible for the dummy’s data acquisition systems. However, their We believe there will be a substantial inability to meet calibration ability to use those transducers would difference in overall torso kinematics requirements. In such an instance, the be necessarily curtailed because of the between a seated dummy that can and failure of the test dummy should not restrictive specification in the drawings, a seated dummy that cannot return its preclude the agency from seeking even though different bridge resistances upper torso half from a flexed position compliance action. Thus, we conclude may give identical performance. We to an upright posture, particularly after that a post-calibration requirement agree with this suggestion and have full flexion has occurred. Without would not be in the public interest, removed the bridge resistance return, the flexion is substantially since it could impede our proceeding plastic, while evidence of a specific with a compliance investigation in those 3 We issued our final rules on the Hybrid III-type 6-year-old child and 5th percentile adult female return would be indicative of the torso cases where the test data indicate that dummies since the date of the Alliance’s comment. mid-section having certain elastic, more the dummy measurements were not Consistent with today’s rule, those final rules do human-like properties. Evidence of markedly affected by the dummy not include a post-test calibration requirement.

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00057 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 15260 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations specifications from the revised generic weight includes the head washer and at this time on the consequences of the sensor drawings. four 10–24 × 3⁄4″ flat head cap screws. suggested approach were it to be All of the agency specifications for adopted in this final rule. Load Cell Free Air Resonant Frequency accelerometers and load cells indicate and Weight Specifications Accelerometer Frequency Response what is considered as part of the load Denton suggests that the assignment cell. We have modified drawing S19 to GM requested clarification as to what of free air resonant frequencies (the first include the head washer and four 10– it means for a piece of instrumentation order ringing frequency of a freely 24 × 3⁄4″ head cap screws. to meet SAE J211 CFC 1000 suspended load cell) should be specifications. GM stated that most consistent with those for the new 6- Accelerometer Specifications accelerometers do not fully meet the year-old dummy and a new 5th GM supports generic specification for roll-off specification and no damped percentile female adult dummy. Denton sensors to reduce the restrictive nature accelerometers can meet any of the roll- also believes that several drawings of instrumentation specifications seen off requirements. Denton, in its should indicate a maximum weight, and in the past. However, GM believes that comments on frequency response for the not a nominal weight. We concur with the sensor specifications included in the 5th percentile dummy (Docket No these suggestions. While we would NPRM are not sufficiently generic. GM NHTSA–1998–4283–10), suggested prefer to establish nominal weights for notes that the accelerometer specified in adding a note on each of the sensor the load cells,4 there is no acceptable drawing SA572–S4 limits the users to drawings indicating ‘‘* * * what CFC method of weighing the load cells, only two models, based on ability to channel class should be used for particularly those containing integral meet the seismic mass and hole pattern recording data with that type of cables. Because of this, weight requirements. The commenter states transducer.’’ This is a reasonable tolerances for the load cells could not be that other accelerometers might be suggestion, since the SAE J211 clearly established. Until an acceptable acceptable but can not be used under deals with the entire data channel and weighing procedure is developed, the proposed specification. GM feels a not with a particular sensor within the dummy manufacturers must take into more functional description is needed data channel. Accordingly, a note has account the variabilities of load cell that would define, by dimensions and been added to the SA572–S4 drawing weights to assure that each subsystem tolerances, an intersection location of saying that ‘‘Signal output must be weight specification, as shown in sheet the triaxial accelerometer sensing compatible with and recordable in the 6 of drawing 210–0000, is met. masses. data channel defined by SAE J211.’’ Accordingly, we have specified in the We are aware of at least two Optional Transducers sensor drawings only maximum weights manufacturers that have in the past or and minimum free air resonant are now marketing accelerometers that GM believes pelvis accelerometers frequencies. They are as follows: match the specifications listed in should be optional as they are not —Drawing SA572–S17 (ASIS)—0.20 kg drawing SA572–S4. As to the specific required for any proposed injury (0.44 lb) maximum each side and hole patterns and associated mounting measurement requirement. GM suggests 2000 Hz minimum free air resonant platforms, they are needed for mounting changing the NPRM language from frequency; the accelerometers. Since the same ‘‘(these accelerometers) are to be —Drawing SA572–S18 (pubic load accelerometer specifications apply to all mounted’’ to ‘‘(these accelerometers) are cell)—0.24 kg (0.53 lb) maximum and other dummies, the accelerometer must allowed to be mounted * * *’’ We agree 2000 Hz minimum free air resonant be attachable to the new Hybrid III 6- with the GM comment and have revised frequency; year-old and the 5th percentile female § 572.146(k) to indicate optional use of —Drawing SA572–S19 (neck load adult as well as to the CRABI 12-month- pelvis accelerometers and § 572.146(c) cell)—0.24 kg (0.52 lb) maximum and old dummies, all of which use the to indicate optional use of the neck load 3000 Hz minimum free air resonant common hole pattern for attachment. cell at the lower neck transducer frequency; Although the sensing mass of each location. —Drawing SA572–S20 (lumbar load accelerometer is defined relative to cell)—0.26 kg (0.58 lb) maximum and reference surfaces of the accelerometer Dimensional Changes to Dummy 3000 Hz minimum free air resonant structure, hole patterns and mounting Drawings frequency; platforms need also to be known to Denton requests that drawing 210– —Drawing SA572–S21 (shoulder load assure existence and compatibility of 4512 be revised to correct the location cell)—0.09 kg (0.19 lb) maximum and space and mating surfaces and methods of the 1.880 inch dimension. Denton 2000 Hz minimum free air resonant of attachment in the areas that they are also noted that additional specifications frequency; and to be mounted. In addition, the are needed in drawing 210–4510 to —Drawing SA572–S22 (acetabulum mounting surfaces and attachments assure a fit of the load cell on the load cell)—0.19 kg (0.42 lb) maximum must have appropriate structural mounting surfaces. Denton suggests and 5000 Hz minimum free air integrity for vibration control purposes. adding further dimensions on drawing resonant frequency. The defined structure and methods of 210–4512 to allow for machining after Denton also suggests that the load cell attachment assure that this is met. The welding, and a specification to drawing weight specifications should clarify that concept, as GM suggests, of defining a 210–4510 to require that a region at least the specified weight does not include location in space for the intersection 1.300 inch from center on each side of any cable or mounting hardware, except center of seismic masses of several the part (total width 2.600 inch) must be as noted. The commenter states that accelerometers rather than specifying it flat within 0.005 in. We agree with the drawing S19 should indicate that the in design parameters is an attractive recommended changes and have revised concept and warrants further the drawings as suggested. 4 Load cell weights with only ‘‘maximum’’ weight consideration, as this approach could designations could vary considerably. While not allow greater use of equivalent Title and Features of the Users Manual specifying a minimum load cell weight may not matter much for larger adult test dummies, lack of alternatives. However, none of the The NPRM noted in §§ 572.140(a)(2) such a specification poses a potentially larger commenters offered a model to further and 572.141(a)(2) that the final rule problem for the smaller child test dummies. this concept and not enough is known package will contain a ‘‘User’s Manual’’

VerDate 202000 17:06 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm02 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15261 for the H–III3C dummy. The manual Regulatory Analyses and Notices decisions based on health risks that would contain identified procedures on disproportionately affect children. Executive Order 12866 and DOT how to inspect, assemble and Regulatory Policies and Procedures Executive Order 12778 disassemble the dummy, similar to procedures published for other part 572 This rulemaking document was not Pursuant to Executive Order 12778, dummies. Responding to the NPRM, the reviewed by the Office of Management ‘‘Civil Justice Reform,’’ we have SAE notes that it has developed a User’s and Budget under E.O. 12866, considered whether this rule will have Manual for this dummy and suggests its ‘‘Regulatory Planning and Review.’’ The any retroactive effect. This rule does not incorporation by reference into part 572. rulemaking action is also not considered have any retroactive effect. A petition We have reviewed its content, but to be significant under the Department’s for reconsideration or other Regulatory Policies and Procedures (44 decline to reference it for several administrative proceeding will not be a FR 11034, February 26, 1979). reasons. prerequisite to an action seeking judicial This document amends 49 CFR part Our review found the SAE’s manual review of this rule. This rule does not 572 by adding design and performance preempt the states from adopting laws containing, besides inspection and specifications for a new 3-year-old child or regulations on the same subject, assembly procedures, several calibration dummy that the agency may later except that it does preempt a state procedures and response requirements. incorporate into Federal motor vehicle regulation that is in actual conflict with Calibration procedures and response safety standards. This rule indirectly the federal regulation or makes requirements are set forth by this final imposes requirements on only those compliance with the Federal regulation rule in part 572. It is not advisable to businesses which choose to establish requirements in a separate manufacture or test with the dummy, in impossible or interferes with the document, which could contain that the agency will only use dummies implementation of the federal statute. calibration procedures and response for compliance testing that meet all of Regulatory Flexibility Act requirements that are inconsistent or in the criteria specified in this rule. It may conflict with the part 572 requirements. affect vehicle and air bag manufacturers Pursuant to the Regulatory Flexibility Further, while the SAE manual appears if it is incorporated by reference into the Act (5 U.S.C. 601 et seq., as amended by to be reasonably well developed and advanced air bag rulemaking, and may the Small Business Regulatory well suited for research use, it has a affect child restraint manufacturers if it Enforcement Fairness Act (SBREFA) of number of redundancies and is incorporated into the child restraint 1996) whenever an agency is required to ambiguities which render it less suited system standard. publish a notice of rulemaking for any for regulation and compliance testing The cost of an uninstrumented 3-year- proposed or final rule, it must prepare purposes. Further, the SAE User’s old dummy is approximately $30,000. and make available for public comment Manual is copyrighted by both the SAE Instrumentation would add $15,000 to a regulatory flexibility analysis that and FTSS, which restrict its use and $50,000 to the cost, depending on the describes the effect of the rule on small distribution as a public document. amount of instrumentation the user entities (i.e., small businesses, small Because we concluded that the SAE chooses to add. organizations, and small governmental manual should not be incorporated into Because the economic impacts of this jurisdictions). However, no regulatory part 572, we generated and incorporated final rule are minimal, no further flexibility analysis is required if the into part 572 our own document regulatory evaluation is necessary. head of an agency certifies the rule will not have a significant economic impact addressing procedures for inspection, Executive Order 13132 assembly and disassembly of the H– on a substantial number of small III3C dummy. We have titled the We have analyzed this rule in entities. SBREFA amended the document Procedures for Assembly, accordance with Executive Order 13132 Regulatory Flexibility Act to require Disassembly and Inspection (PADI), (‘‘Federalism’’). We have determined Federal agencies to provide a statement subpart P, Hybrid III 3-year-old Child that this rule does not have sufficient of the factual basis for certifying that a Crash Test Dummy (H–III3C, Alpha Federalism impacts to warrant the rule will not have a significant version), February 2000. Our preparation of a federalism assessment. economic impact on a substantial incorporation of the PADI does not in Executive Order 13045 number of small entities. itself prohibit anyone from using the Executive Order 13045 (62 FR 19885, I have considered the effects of this procedures contained in the SAE User’s April 23, 1997) applies to any rule that: rulemaking action under the Regulatory Manual. However, persons using the (1) Is determined to be ‘‘economically Flexibility Act (5 U.S.C. 601 et seq.) and SAE document in tests assuring significant’’ as defined under E.O. certify that this rule will not have a compliance with our safety standards 12866, and (2) concerns an significant economic impact on a are responsible for ensuring that the test environmental, health or safety risk that substantial number of small entities. dummies they use meet the NHTSA has reason to believe may have The rule does not impose or rescind any specifications adopted today and are a disproportionate effect on children. If requirements for anyone. The suitable for compliance testing. the regulatory action meets both criteria, Regulatory Flexibility Act does not, therefore, require a regulatory flexibility Nomenclature we must evaluate the environmental health or safety effects of the planned analysis. The H–III3C dummy is incorporated rule on children, and explain why the National Environmental Policy Act into part 572 as subpart P. Today’s final planned regulation is preferable to other rule designates the dummy adopted potentially effective and reasonably We have analyzed this amendment for today as alpha version. Further notable feasible alternatives considered by us. the purposes of the National changes to the dummy will be This rule is not subject to the Environmental Policy Act and designated as beta, gamma, etc., to Executive Order because it is not determined that it will not have any assure that modifications can be easily economically significant as defined in significant impact on the quality of the tracked and identified. E.O. 12866. It also does not involve human environment.

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Paperwork Reduction Act Unfunded Mandates Reform Act of Alpha version) February 2000’’, Under the Paperwork Reduction Act 1995. This rule does not meet the incorporated by reference in § 572.141 of 1995, a person is not required to definition of a Federal mandate because and consisting of : respond to a collection of information it does not impose requirements on (i) Drawing No. 210–1000, Head by a Federal agency unless the anyone. Further, it will not result in Assembly, incorporated by reference in collection displays a valid OMB control costs of $100 million or more to either §§ 572.141, 572.142, 572.144, 572.145, number. This rule does not have any State, local, or tribal governments, in the and 572.146; new information collection aggregate, or to the private sector. Thus, (ii) Drawing No. 210–2001, Neck requirements. this rule is not subject to the Assembly, incorporated by reference in requirements of sections 202 and 205 of §§ 572.141, 572.143, 572.144, 572.145, National Technology Transfer and the UMRA. and 572.146; Advancement Act Regulation Identifier Number (RIN) (iii) Drawing No. TE–208–000, Section 12(d) of the National Headform, incorporated by reference in The Department of Transportation Technology Transfer and Advancement §§ 572.141, and 572.143; assigns a regulation identifier number Act of 1995 (NTTAA), Public Law 104– (iv) Drawing No. 210–3000, Upper/ (RIN) to each regulatory action listed in 113, section 12(d) (15 U.S.C. 272) Lower Torso Assembly, incorporated by the Unified Agenda of Federal directs us to use voluntary consensus reference in §§ 572.141, 572.144, Regulations. The Regulatory Information standards in regulatory activities unless 572.145, and 572.146; Service Center publishes the Unified doing so would be inconsistent with Agenda in April and October of each (v) Drawing No. 210–5000–1(L), –2(R), applicable law or otherwise impractical. year. You may use the RIN contained in Leg Assembly, incorporated by Voluntary consensus standards are the heading at the beginning of this reference in §§ 572.141, 572.144, technical standards (e.g., materials document to find this action in the 572.145 as part of a complete dummy specifications, test methods, sampling Unified Agenda. assembly; procedures, and business practices) that (vi) Drawing No. 210–6000–1(L), are developed or adopted by voluntary List of Subjects in 49 CFR Part 572 –2(R), Arm Assembly, incorporated by consensus standards bodies, such as the Motor vehicle safety, Incorporation by reference in §§ 572.141, 572.144, and Society of Automotive Engineers (SAE). reference. 572.145 as part of the complete dummy The NTTAA directs us to provide In consideration of the foregoing, assembly; Congress, through OMB, explanations (2) A procedures manual entitled when we decide not to use available and NHTSA amends 49 CFR Part 572 as follows: ‘‘Procedures for Assembly, Disassembly applicable voluntary consensus and Inspection (PADI), Subpart P, standards. PART 572ÐANTHROPOMORPHIC Hybrid III 3-year-old Child Crash Test The H–III3C dummy that is the TEST DUMMIES Dummy, (H–III3C, Alpha Version) subject of this document was developed February 2000’’, incorporated by under the auspices of the SAE. All 1. The authority citation for Part 572 reference in § 572.141; continues to read as follows: relevant SAE standards were reviewed (3) SAE Recommended Practice J211/ as part of the development process. The Authority: 49 U.S.C. 322, 30111, 30115, 1, Rev. Mar 95 ‘‘Instrumentation for following voluntary consensus 30117 and 30166; delegation of authority at Impact Tests—Part 1-Electronic standards have been used in developing 49 CFR 1.50. Instrumentation’’, incorporated by the dummy: SAE Recommended reference in § 572.146; Practice J211, Rev. Mar95 2. 49 CFR part 572 is amended by (4) SAE J1733 1994–12 ‘‘Sign ‘‘Instrumentation for Impact Tests’’; and adding a new subpart P consisting of Convention for Vehicle Crash Testing’’ SAE J1733 of 1994–12 ‘‘Sign Convention §§ 572.140–572.146, to read as follows: incorporated by reference in § 572.146. for Vehicle Crash Testing.’’ Subpart PÐHybrid III 3-Year-Old Child (5) The Director of the Federal Unfunded Mandates Reform Act Crash Test Dummy, Alpha Version Register approved those materials Section 202 of the Unfunded Sec. incorporated by reference in accordance 572.140 Incorporation by reference. with 5 U.S.C. 552(a) and 1 CFR Part 51. Mandates Reform Act of 1995 (UMRA) 572.141 General description. requires Federal agencies to prepare a Copies of the materials may be 572.142 Head assembly and test procedure. inspected at NHTSA’s Docket Section, written assessment of the costs, benefits 572.143 Neck-headform assembly and test and other effects of proposed or final procedure. 400 Seventh Street SW, room 5109, rules that include a Federal mandate 572.144 Thorax assembly and test Washington, DC, or at the Office of the likely to result in the expenditure by procedure. Federal Register, 800 North Capitol State, local or tribal governments, in the 572.145 Upper and lower torso assemblies Street, NW, Suite 700, Washington, DC. aggregate, or by the private sector, of and torso flexion test procedure. (b) The incorporated materials are more than $100 million in any one year 572.146 Test condition and available as follows: instrumentation. (adjusted for inflation with base year of (1) The drawings and specifications 1995). Before promulgating a NHTSA Subpart PÐ3-year-Old Child Crash package referred to in paragraph (a)(1) of rule for which a written statement is Test Dummy, Alpha Version this section and the PADI document needed, section 205 of the UMRA referred to in paragraph (a)(2) of this generally requires us to identify and § 572.140 Incorporation by reference. section are available from Reprographic consider a reasonable number of (a) The following materials are hereby Technologies, 9000 Virginia Manor regulatory alternatives and adopt the incorporated in this subpart P by Road, Beltsville, MD 20705 (301) 419– least costly, most cost-effective or least reference: 5070. burdensome alternative that achieves (1) A drawings and specifications (2) The SAE materials referred to in the objectives of the rule. package entitled ‘‘Parts List and paragraphs (a)(3) and (a)(4) of this This rule does not impose any Drawings, Subpart P Hybrid III 3-year- section are available from the Society of unfunded mandates under the old child crash test dummy, (H–III3C, Automotive Engineers, Inc., 400

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Commonwealth Drive, Warrendale, PA peak resultant acceleration. The lateral pendulum’s longitudinal centerline 15096. acceleration shall not exceed +/¥15 G between 70 degrees and 82 degrees. (zero to peak). Within this specified rotation corridor, § 572.141 General description (c) Head test procedure. The test the peak moment about the occipital (a) The Hybrid III 3-year-old child procedure for the head is as follows: condyle may not be less than 42 N-m dummy is described by the following (1) Soak the head assembly in a and not more than 53 N-m. materials: controlled environment at any (ii) The positive moment shall decay (1) Technical drawings and temperature between 18.9 and 25.6 °C for the first time to 10 N-m between 60 specifications package 210–0000 (refer (66 and 78 °F) and at any relative ms and 80 ms after time zero. to § 572.140(a)(1)), the titles of which humidity between 10 and 70 percent for (iii) The moment and rotation data are listed in Table A of this section; at least four hours prior to a test. channels are defined to be zero when (2) Procedures for Assembly, (2) Prior to the test, clean the impact the longitudinal centerline of the neck Disassembly and Inspection document surface of the head skin and the steel and pendulum are parallel. (PADI) (refer to § 572.140(a)(2)). impact plate surface with isopropyl (2) Extension. (b) The dummy is made up of the alcohol, trichlorethane, or an (i) Plane D referenced in Figure P3 of component assemblies set out in the equivalent. Both impact surfaces must this subpart shall rotate in the direction following Table A of this section: be clean and dry for testing. of preimpact flight with respect to the (3) Suspend the head assembly with pendulum’s longitudinal centerline TABLE A its midsagittal plane in vertical between 83 degrees and 93 degrees. orientation as shown in Figure P1 of this Within this specified rotation corridor, Component assembly Drawing No. subpart. The lowest point on the the peak moment about the occipital forehead is 376.0±1.0 mm (14.76±0.04 condyle may be not more than ¥43.7 N- Head Assembly ...... 210±1000 ¥ Neck Assembly (complete) .... 210±2001 in) from the steel impact surface. The m and not less than 53.3 N-m. 3.3 mm (0.13 in) diameter holes, located (ii) The negative moment shall decay Upper/Lower Torso Assembly 210±3000 ¥ Leg Assembly ...... 210±5000± on either side of the dummy’s head in for the first time to 10 N-m between 1(L), ±2(R) transverse alignment with the CG, shall 60 and 80 ms after time zero. Arm Assembly ...... 210±6000± be used to ensure that the head (iii) The moment and rotation data 1(L), ±2(R) transverse plane is level with respect to channels are defined to be zero when the impact surface. the longitudinal centerline of the neck (c) Adjacent segments are joined in a (4) Drop the head assembly from the and pendulum are parallel. manner such that except for contacts specified height by a means that ensures (c) Test Procedure existing under static conditions, there is a smooth, instant release onto a rigidly (1) Soak the neck assembly in a no contact between metallic elements supported flat horizontal steel plate controlled environment at any ° throughout the range of motion or under which is 50.8 mm (2 in) thick and 610 temperature between 20.6 and 22.2 C simulated crash impact conditions. mm (24 in) square. The impact surface (69 and 72 F) and a relative humidity (d) The structural properties of the shall be clean, dry and have a finish of between 10 and 70 percent for at least dummy are such that the dummy not less than 203.2×10¥6 mm (8 micro four hours prior to a test. conforms to this part in every respect inches) (RMS) and not more than 2032.0 (2) Torque the jam nut (drawing only before use in any test similar to x 10¥6 mm (80 micro inches) (RMS). 9001336) on the neck cable (drawing those specified in Standard 208, (5) Allow at least 2 hours between 210–2040) between 0.2 N-m and 0.3 N- Occupant Crash Protection, and successive tests on the same head. m. Standard 213, Child Restraint Systems. (3) Mount the neck-headform § 572.143 Neck-headform assembly and assembly, defined in paragraph (a) of § 572.142 Head assembly and test test procedure. this section, on the pendulum so the procedure. (a) The neck and headform assembly midsagittal plane of the headform is (a) The head assembly (refer to (refer to §§ 572.140(a)(1)(ii) and vertical and coincides with the plane of § 572.140(a)(1)(i)) for this test consists of 572.140(a)(1)(iii)) for the purposes of motion of the pendulum as shown in the head (drawing 210–1000), adapter this test, as shown in Figures P2 and P3 Figure P2 of this subpart for flexion and plate (drawing ATD 6259), of this subpart, consists of the neck Figure P3 of this subpart for extension accelerometer mounting block (drawing molded assembly (drawing 210–2015), tests. SA 572–S80), structural replacement of neck cable (drawing 210–2040), nylon (4) Release the pendulum and allow it 1⁄2 mass of the neck load transducer shoulder bushing (drawing 9001373), to fall freely to achieve an impact (drawing TE–107–001), head mounting upper mount plate insert (drawing velocity of 5.50±0.10 m/s (18.05 + 0.40 washer (drawing ATD 6262), one 1⁄2– 910420–048), bib simulator (drawing ft/s) for flexion and 3.65±0.1 m/s 20x1″ flat head cap screw (FHCS) TE–208–050), urethane washer (drawing (11.98±0.40 ft/s) for extension tests, (drawing 9000150), and 3 210–2050), neck mounting plate measured by an accelerometer mounted accelerometers (drawing SA–572–S4). (drawing TE–250–021), two jam nuts on the pendulum as shown in Figure 22 (b) When the head assembly in (drawing 9001336), load-moment of this part 572 at time zero. paragraph (a) of this section is dropped transducer (drawing SA 572–S19), and (i) The test shall be conducted from a height of 376.0+/¥1.0 mm headform (drawing TE–208–000). without inducing any torsion twisting of (14.8+/¥0.04 in) in accordance with (b) When the neck and headform the neck. paragraph (c) of this section, the peak assembly, as defined in § 572.143(a), is (ii) Stop the pendulum from the resultant acceleration at the location of tested according to the test procedure in initial velocity with an acceleration vs. the accelerometers at the head CG shall paragraph (c) of this section, it shall time pulse which meets the velocity not be less than 250 g or more than 280 have the following characteristics: change as specified in Table B of this g. The resultant acceleration versus time (1) Flexion. section. Integrate the pendulum history curve shall be unimodal, and the (i) Plane D, referenced in Figure P2 of acceleration data channel to obtain the oscillations occurring after the main this subpart, shall rotate in the direction velocity vs. time curve as indicated in pulse shall be less than 10 percent of the of preimpact flight with respect to the Table B of this section.

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(iii) Time-zero is defined as the time material. The pendulum data channel of initial contact between the pendulum shall be zero at this time. striker plate and the honeycomb

TABLE B.ÐPENDULUM PULSE

Time Flexion Time Extension ms m/s ft/s ms m/s ft/s

10 ...... 2.0±2.7 6.6±8.9 6 1.0±1.4 3.3±4.6 15 ...... 3.0±4.0 9.8±13.1 10 1.9±2.5 6.2±8.2 20 ...... 4.0±5.1 13.1±16.7 14 2.8±3.5 9.2±11.5

§ 572.144 Thorax assembly and test and 70 percent for at least four hours transverse plane, at which time the procedure. prior to a test. pulling force applied must not be less (a) Thorax (Upper Torso) Assembly (3) Seat and orient the dummy on a than 130 N (28.8 lbf) and not more than (refer to § 572.140(a)(1)(iv)). The thorax seating surface without back support as 180 N (41.2 lbf), and consists of the upper part of the torso shown in Figure P4, with the lower (2) Upon removal of the force, the assembly shown in drawing 210–3000. limbs extended horizontally and upper torso assembly returns to within (b) When the anterior surface of the forward, the upper arms parallel to the 10 degrees of its initial position. thorax of a completely assembled torso and the lower arms extended (c) Test procedure. The test procedure dummy (drawing 210–0000) is impacted horizontally and forward, parallel to the is as follows: by a test probe conforming to midsagittal plane, the midsagittal plane (1) Soak the dummy in a controlled § 572.146(a) at 6.0±0.1 m/s (19.7±0.3 ft/ being vertical within ±1 degree and the environment at any temperature s) according to the test procedure in ribs level in the anterior-posterior and between 18.9° and 25.6 °C (66 and 78 paragraph (c) of this section. lateral directions within ±0.5 degrees. °F) and at any relative humidity (1) Maximum sternum displacement (4) Establish the impact point at the between 10 and 70 percent for at least (compression) relative to the spine, chest midsagittal plane so that the 4 hours prior to a test. measured with the chest deflection impact point of the longitudinal (2) Assemble the complete dummy transducer (SA–572–S50), must not be centerline of the probe coincides with (with or without the lower legs) and seat less than 32mm (1.3 in) and not more the dummy’s mid-sagittal plane and is it on a rigid flat-surface table, as shown than 38mm (1.5 in). Within this centered on the center of No. 2 rib in Figure P5 of this subpart. ± specified compression corridor, the within 2.5 mm (0.1 in.) and 0.5 degrees (i) Unzip the torso jacket and remove peak force, measured by the probe- of a horizontal plane. the four 1⁄4–20×3⁄4″ bolts which attach mounted accelerometer as defined in (5) Impact the thorax with the test the lumbar load transducer or its paragraph § 572.146(a) and calculated in probe so that at the moment of contact structural replacement to the pelvis accordance with paragraph (b)(3) of this the probe’s longitudinal center line is weldment (drawing 210–4510) as shown section, shall be not less than 680 N and within 2 degrees of a horizontal line in in Figure P5 of this subpart. not more than 810 N. The peak force the dummy’s midsagittal plane. (ii) Position the matching end of the after 12.5 mm of sternum compression (6) Guide the test probe during impact rigid pelvis attachment fixture around but before reaching the minimum so that there is no significant lateral, the lumbar spine and align it over the required 32.0 mm sternum compression vertical or rotational movement. four bolt holes. shall not exceed 860 N. § 572.145 Upper and lower torso (iii) Secure the fixture to the dummy (2) The internal hysteresis of the assemblies and torso flexion test with the four 1⁄4–20×3⁄4″ bolts and attach ribcage in each impact, as determined procedure. the fixture to the table. Tighten the from the force vs. deflection curve, shall (a) The test objective is to determine mountings so that the pelvis-lumbar be not less than 65 percent and not more the resistance of the lumbar spine and joining surface is horizontal within ±1 than 85 percent. The hysteresis shall be abdomen of a fully assembled dummy deg and the buttocks and upper legs of calculated by determining the ratio of (drawing 210–0000) to flexion the seated dummy are in contact with the area between the loading and articulation between upper and lower the test surface. unloading portions of the force halves of the torso assembly (refer to (iv) Attach the loading adapter bracket deflection curve to the area under the § 572.140(a)(1)(iv)). to the upper part of the torso as shown loading portion of the curve. (b)(1) When the upper half of the torso in Figure P5 of this subpart and zip up (3) The force shall be calculated by assembly of a seated dummy is the torso jacket. the product of the impactor mass and its subjected to a force continuously (v) Point the upper arms vertically deceleration. applied at the occipital condyle level downward and the lower arms forward. (c) Test procedure. The test procedure through the rigidly attached adaptor (3)(i) Flex the thorax forward three for the thorax assembly is as follows: bracket in accordance with the test times from vertical until the torso (1) The test dummy is clothed in procedure set out in paragraph (c) of reference plane reaches 30±2 degrees cotton-polyester-based tight-fitting shirt this section, the lumbar spine-abdomen from vertical. The torso reference plane, with long sleeves and ankle-length assembly shall flex by an amount that as shown in figure P5 of this subpart, is pants whose combined weight is not permits the upper half of the torso, as defined by the transverse plane tangent more than 0.25 kg (0.55 lbs) measured at the posterior surface of the to the posterior surface of the upper (2) Soak the dummy in a controlled torso reference plane shown in Figure backplate of the spine box weldment environment at any temperature P5 of this subpart, to translate in angular (drawing 210–8020). between 20.6 and 22.2 °C (69 and 72 °F) motion in the midsagittal plane 45±0.5 (ii) Remove all externally applied and at any relative humidity between 10 degrees relative to the vertical flexion forces and support the upper

VerDate 202000 12:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00062 Fmt 4700 Sfmt 4700 E:\FR\FM\22MRR1.SGM pfrm01 PsN: 22MRR1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15265 torso half in a vertical orientation for 30 mass and such components may not characteristics, and sensitive mass minutes to prevent it from drooping. exceed five percent of the total weight locations specified in drawing SA 572– (4) Remove the external support and of the test probe. The impacting end of S4 and be mounted in the torso after two minutes measure the initial the probe, perpendicular to and assembly in triaxial configuration at the orientation angle of the upper torso concentric with the longitudinal axis, is T4 location, as shown in drawing 210– reference plane of the seated, at least 25 mm (1.0 in) in length, has a 0000. Triaxial accelerometers may be unsupported dummy as shown in flat, continuous, and non-deformable mounted as optional instrumentation at Figure P5 of this subpart. The initial 50.8±0.2 mm (2.00±0.01 inch) diameter T1, and T12, and in uniaxial orientation of the torso reference plane face with a maximum edge radius of configuration on the sternum at the may not exceed 15 degrees. 12.7 mm (0.5 in). The probe’s end midpoint level of ribs No. 1 and No. 3 (5) Attach the pull cable at the point opposite to the impact face has and on the spine coinciding with the of load application on the adaptor provisions for mounting an midpoint level of No. 3 rib, as shown in bracket while maintaining the initial accelerometer with its sensitive axis drawing 210–0000. If used, the torso orientation. Apply a pulling force collinear with the longitudinal axis of accelerometers must conform to SA– in the midsagittal plane, as shown in the probe. No concentric portions of the 572–S4. Figure P5 of this subpart, at any upper impact probe may exceed the diameter torso flexion rate between 0.5 and 1.5 of the impact face. The impact probe has (f) The chest deflection potentiometer degrees per second, until the torso a free air resonant frequency not less shall have the dimensions and response reference plane reaches 45±0.5 degrees than 1000 Hz. characteristics specified in drawing SA– of flexion relative to the vertical (b) Head accelerometers shall have the 572–S50 and be mounted in the torso transverse plane. dimensions, response characteristics, assembly as shown drawing 210–0000. (6) Continue to apply a force and sensitive mass locations specified ± (g) The lumbar spine force/moment sufficient to maintain 45 0.5 degrees of in drawing SA 572–S4 and be mounted transducer may be mounted in the torso flexion for 10 seconds, and record the in the head as shown in drawing 210– assembly as shown in drawing 210– highest applied force during the 10- 0000. 0000 as optional instrumentation in second period. (c) The neck force-moment transducer place of part No. 210–4150. If used, the (8) Release all force at the loading shall have the dimensions, response transducer shall have the dimensions adaptor bracket as rapidly as possible characteristics, and sensitive axis and measure the return angle with and response characteristics specified in locations specified in drawing SA 572– respect to the initial angle reference drawing SA–572–S20. S19 and be mounted at the upper neck plane as defined in paragraph (c)(4) of (h) The pubic force transducer may be transducer location as shown in this section 3 to 4 minutes after the mounted in the torso assembly as shown drawing 210–0000. A lower neck release. in drawing 210–0000 as optional transducer as specified in drawing SA instrumentation in place of part No. 572.146 Test conditions and 572–S19 is allowed to be mounted as instrumentation. optional instrumentation in place of 921–0022–036. If used, the transducer shall have the dimensions and response (a) The test probe for thoracic impacts part No. ATD6204, as shown in drawing characteristics specified in drawing SA– shall be of rigid metallic construction, 210–0000. 572–S18. concentric in shape, and symmetric (d) The shoulder force transducers about its longitudinal axis. It shall have shall have the dimensions and response (i) The acetabulum force transducers a mass of 1.70±.01 kg (3.75±0.02 lb) and characteristics specified in drawing SA may be mounted in the torso assembly a minimum mass moment of inertia 283 572–S21 and be allowed to be mounted as shown in drawing 210–0000 as kg-cm*2 (0.25 lb-in-sec*2) in yaw and as optional instrumentation in place of optional instrumentation in place of pitch about the CG of the probe. 1⁄3 of part No. 210–3800 in the torso assembly part No. 210–4522. If used, the the weight of suspension cables and as shown in drawing 210–0000. transducer shall have the dimensions their attachments to the impact probe (e) The thorax accelerometers shall and response characteristics specified in must be included in the calculation of have the dimensions, response drawing SA–572–S22.

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(j) The anterior-superior iliac spine to § 572.140(a)(3)), with channel classes to the Sign Convention For Vehicle transducers may be mounted in the as follows: Crash Testing, Surface Vehicle torso assembly as shown in drawing (1) Head acceleration—Class 1000 Information Report, SAE J1733, 1994–12 210–0000 as optional instrumentation in (2) Neck (refer to § 572.140(a)(4)). place of part No. 210–4540–1, –2. If (i) force—Class 1000 (n) The mountings for sensing devices used, the transducers shall have the (ii) moments—Class 600 shall have no resonance frequency less dimensions and response characteristics (iii) pendulum acceleration—Class 180 than 3 times the frequency range of the (3) Thorax: specified in drawing SA–572–S17. applicable channel class. (i) rib/sternum acceleration—Class (k) The pelvis accelerometers may be 1000 (o) Limb joints shall be set at lG, mounted in the pelvis in triaxial (ii) spine and pendulum barely restraining the weight of the configuration as shown in drawing 210– accelerations—Class 180 limbs when they are extended 0000 as optional instrumentation. If (iii) sternum deflection—Class 600 horizontally. The force required to move used, the accelerometers shall have the (iv) shoulder force—Class 180 a limb segment shall not exceed 2G dimensions and response characteristics (4) Lumbar: throughout the range of limb motion. specified in drawing SA–572–S4. (i) forces—Class 1000 (p) Performance tests of the same (ii) moments—Class 600 (l) The outputs of acceleration and component, segment, assembly, or fully (iii) torso flexion pulling force—Class assembled dummy shall be separated in force-sensing devices installed in the 60 if data channel is used dummy and in the test apparatus time by a period of not less than 30 (5) Pelvis minutes unless otherwise noted. specified by this part shall be recorded (i) accelerations—Class 1000 in individual data channels that (ii) acetabulum, pubic symphysis— (q) Surfaces of dummy components conform to the requirements of SAE Class 1000, are not painted except as specified in Recommended Practice J211/1, Rev. Mar (iii) iliac wing forces—Class 180 this part or in drawings subtended by 95 ‘‘Instrumentation for Impact Tests— (m) Coordinate signs for this part. Part 1-Electronic Instrumentation’’ (refer instrumentation polarity shall conform BILLING CODE 4910±59±P

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BILLING CODE 4910±59±C DEPARTMENT OF COMMERCE Atmospheric Administration (NOAA), Commerce. Issued: March 7, 2000. National Oceanic and Atmospheric Rosalyn G. Millman, Administration ACTION: Closure. Acting Administrator. [FR Doc. 00–6253 Filed 3–21–00; 8:45 am] 50 CFR Part 679 SUMMARY: NMFS is prohibiting directed BILLING CODE 4910±59±P fishing for pollock in Statistical Area [Docket No. 000211039±0039±01; I.D. 630 outside the Shelikof Strait 031600A] conservation area in the Gulf of Alaska (GOA). This action is necessary to Fisheries of the Exclusive Economic prevent exceeding the B season Zone Off Alaska; Pollock in Statistical allowance of the pollock total allowable Area 630 of the Gulf of Alaska catch (TAC) for Statistical Area 630 outside the Shelikof Strait conservation AGENCY: National Marine Fisheries area. Service (NMFS), National Oceanic and

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DATES: Effective 1200 hrs, Alaska local impracticable and contrary to the public fishing by U.S. vessels in accordance time (A.l.t.), March 17, 2000, until 1200 interest. Further delay would only result with the FMP appear at subpart H of 50 hrs, A.l.t., August 20, 2000. in overharvest. NMFS finds for good CFR part 600 and 50 CFR part 679. FOR FURTHER INFORMATION CONTACT: cause that the implementation of this In accordance with § 679.20(c)(3)(ii), Mary Furuness, 907–586–7228. action should not be delayed for 30 the B season allowance of the pollock SUPPLEMENTARY INFORMATION: NMFS days. Accordingly, under 5 U.S.C. TAC in Statistical Area 610 is 3,749 manages the groundfish fishery in the 553(d), a delay in the effective date is metric tons (mt) established by the Final GOA exclusive economic zone hereby waived. 2000 Harvest Specification for according to the Fishery Management This action is required by § 679.20 Groundfish (65 FR 8298, February 18, Plan for Groundfish of the Gulf of and is exempt from review under E.O. 2000) and subsequent correction (65 FR Alaska (FMP) prepared by the North 12866. 11909, March 7, 2000). Pacific Fishery Management Council Authority: 16 U.S.C. 1801 et. seq. In accordance with § 679.20(d)(1)(i), under authority of the Magnuson- Dated: March 17, 2000. the Administrator, Alaska Region, Stevens Fishery Conservation and Bruce C. Morehead, NMFS (Regional Administrator), has Management Act. Regulations governing Acting Director, Office of Sustainable determined that the B season allowance fishing by U.S. vessels in accordance Fisheries, National Marine Fisheries Service. of the pollock TAC in Statistical Area with the FMP appear at subpart H of 50 [FR Doc. 00–7073 Filed 3–17–00; 3:59 pm] 610 will soon be reached. Therefore, the CFR part 600 and 50 CFR part 679. BILLING CODE 3510±22±F Regional Administrator is establishing a In accordance with § 679.20(c)(3)(ii), directed fishing allowance of 3,549 mt, the B season allowance of the pollock and is setting aside the remaining 200 TAC in Statistical Area 630 outside the DEPARTMENT OF COMMERCE mt as bycatch to support other Shelikof Strait conservation area is anticipated groundfish fisheries. In 2,662 metric tons (mt) as established by National Oceanic and Atmospheric accordance with § 679.20(d)(1)(iii), the the Final 2000 Harvest Specifications Administration Regional Administrator finds that this for Groundfish (65 FR 8298, February directed fishing allowance will soon be 18, 2000) and subsequent correction (65 50 CFR Part 679 reached. Consequently, NMFS is FR 11909, March 7, 2000). [Docket No. 000211039±0039±01; I.D. prohibiting directed fishing for pollock In accordance with § 679.20(d)(1)(i), 031700A] in Statistical Area 610 of the GOA. the Administrator, Alaska Region, Maximum retainable bycatch amounts NMFS (Regional Administrator), has Fisheries of the Exclusive Economic may be found in the regulations at determined that the B season allowance Zone Off Alaska; Pollock in Statistical § 679.20(e) and (f). of the pollock TAC in Statistical Area Area 610 of the Gulf of Alaska 630 outside the Shelikof Strait Classification conservation area will soon be reached. AGENCY: National Marine Fisheries Therefore, the Regional Administrator is Service (NMFS), National Oceanic and This action responds to the best establishing a directed fishing Atmospheric Administration (NOAA), available information recently obtained allowance of 2,162 mt, and is setting Commerce. from the fishery. It must be aside the remaining 500 mt as bycatch ACTION: Closure. implemented immediately to prevent to support other anticipated groundfish overharvesting the seasonal allocation of SUMMARY: NMFS is prohibiting directed fisheries. In accordance with pollock in Statistical Area 610. fishing for pollock in Statistical Area § 679.20(d)(1)(iii), the Regional Providing prior notice and an 610 of the Gulf of Alaska (GOA). This Administrator finds that this directed opportunity for public comment is action is necessary to prevent exceeding fishing allowance will soon be reached. impracticable and contrary to the public the B season allowance of the pollock Consequently, NMFS is prohibiting interest. Further delay would only result total allowable catch (TAC) for directed fishing for pollock in Statistical in overharvest. NMFS finds for good Statistical Area 610 of the GOA. Area 630 outside the Shelikof Strait cause that the implementation of this DATES: conservation area in the GOA. Effective 1200 hrs, Alaska local action should not be delayed for 30 Maximum retainable bycatch amounts time (A.l.t.), March 18, 2000, until 1200 days. Accordingly, under 5 U.S.C. may be found in the regulations at hrs, A.l.t., August 20, 2000. 553(d), a delay in the effective date is § 679.20(e) and (f). FOR FURTHER INFORMATION CONTACT: hereby waived. Mary Furuness, 907–581–2062. This action is required by § 679.20 Classification SUPPLEMENTARY INFORMATION: NMFS and is exempt from review under E.O. This action responds to the best manages the groundfish fishery in the 12866. available information recently obtained GOA exclusive economic zone Authority: 16 U.S.C. 1801 et seq. from the fishery. It must be according to the Fishery Management implemented immediately to prevent Plan for Groundfish of the Gulf of Dated: March 17, 2000. overharvesting the seasonal allocation of Alaska (FMP) prepared by the North George H. Darcy, pollock in Statistical Area 630 outside Pacific Fishery Management Council Acting Director, Office of Sustainable the Shelikof Strait conservation area. under authority of the Magnuson- Fisheries, National Marine Fisheries Service. Providing prior notice and an Stevens Fishery Conservation and [FR Doc. 00–7072 Filed 3–17–00; 3:59 pm] opportunity for public comment is Management Act. Regulations governing BILLING CODE 3510±22±F

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Proposed Rules Federal Register Vol. 65, No. 56

Wednesday, March 22, 2000

This section of the FEDERAL REGISTER On December 16, 1998, the kind contributions, and excessive contains notices to the public of the proposed Commission issued a Notice of expenditures arising from primary issuance of rules and regulations. The Proposed Rulemaking (NPRM) in which campaign activities coordinated with purpose of these notices is to give interested it sought comments on proposed the candidate’s party committee. persons an opportunity to participate in the revisions to these regulations, as well as Section 9038 of the Matching rule making prior to the adoption of the final rules. on a number of other aspects of the Payment Act (26 U.S.C. 9038) provides Commission’s public funding three bases for determining repayments regulations. 63 FR 69524 (Dec. 16, of primary matching funds: (1) FEDERAL ELECTION COMMISSION 1998). In response to the NPRM, written payments in excess of entitlement; (2) comments addressing the repayment payments used for other than qualified 11 CFR Part 9038 issue were received from Common campaign expenses; and (3) excess [Notice 2000±5] Cause and Democracy 21 (joint funds remaining six months after the comment); and Lyn Utrecht, Eric end of the matching payment period. In Public Funding of Presidential Primary Kleinfeld, and Patricia Fiori (joint contrast, section 9007 of the Presidential CandidatesÐRepayments comment). The Internal Revenue Election Campaign Fund Act (26 U.S.C Service stated that it has reviewed the 9007) (‘‘Fund Act’’) provides four bases AGENCY: Federal Election Commission. NPRM and finds no conflict with the for determining repayments of general ACTION: Notice of disposition; Internal Revenue Code or regulations election funds: (1) Payments in excess of Termination of rulemaking. thereunder. Subsequently, the entitlement; (2) an amount equal to any Commission reopened the comment excess qualified campaign expenses; (3) SUMMARY: On December 16, 1998, the period and held a public hearing on an amount equal to any contributions Commission issued a Notice of March 24, 1999, at which the following accepted; and (4) payments used for Proposed Rulemaking in which it witnesses presented testimony on the other than qualified campaign expenses. sought public comments on deleting one Commission’s ability to seek The provisions on ‘‘payments in section of its regulations governing the repayments: Lyn Utrecht (Ryan, excess of entitlement’’ and ‘‘other than public financing of presidential primary Phillips, Utrecht & MacKinnon), Joseph qualified campaign expenses’’ are nearly election campaigns. These rules E. Sandler (Democratic National identical between the two chapters. implement the Presidential Primary Committee), and Thomas J. Josefiak Inasmuch as Congress specified ‘‘excess Matching Payment Account Act (Republican National Committee). expenses’’ as a repayment basis separate (‘‘Matching Payment Act’’), which Please note that the Commission has from ‘‘other than qualified campaign indicates how funds received under the already published separately several expenditures’’ in the general election public financing system may be spent. sets of final rules regarding other statute, an argument exists that the In addition, the Matching Payment Act aspects of the public funding system. nearly identical provision on ‘‘other requires the Commission to seek For a summary of these other than qualified campaign expenses’’ in repayment from publicly financed provisions, see Explanation and the primary statute cannot reasonably be campaigns under certain conditions. Justification, 64 FR 49355 (Sept. 13, read to include excess expenses. The rule in question addresses the 1999), and Explanation and The argument against treating repayment of federal funds when Justification, 64 FR 61777 (Nov. 15, ‘‘excess’’ campaign expenditures as candidates exceed the limits on either 1999). ‘‘nonqualified’’ is buttressed by the text state-by-state or overall spending. The of the ‘‘qualified campaign expense Commission is making no changes to 1. Alternatives Presented in the NPRM limitation’’ (26 U.S.C. 9035) itself, this regulation at this time. Further The NPRM raised the issue of whether which prohibits candidates from information is provided in the to delete paragraph (b)(2)(ii)(A) of ‘‘knowingly incur[ring] qualified supplementary information that follows. section 9038.2 from the Commission’s campaign expenses in excess of the FOR FURTHER INFORMATION CONTACT: Ms. regulations. Under this provision, the expenditure limitation applicable under Rosemary C. Smith, Assistant General Commission has in the past required the section 441a(b)(1)(A) of title 2.’’ First, Counsel, 999 E Street, NW, Washington, repayment of primary matching funds one can argue that it is impossible to DC 20463, (202) 694–1650 or toll free based on a determination that a read this section other than as treating (800) 424–9530. candidate or authorized committee has ‘‘excess’’ spending as ‘‘qualified.’’ SUPPLEMENTARY INFORMATION: The made expenditures in excess of the Second, this provision states that Commission has been considering primary spending limits. The NPRM violation of the primary spending limits whether to revise its regulations at 11 raised the argument that this provision is a Title 2 violation, which would be CFR 9038.2(b) governing repayments of is without statutory basis, and that the addressed in the FEC’s enforcement matching funds in situations where reading implied in the current process, rather than a Title 26 violation, primary candidates exceed the spending regulation is effectively prohibited by which could be addressed in the audit/ limits set forth in section 441a(b) of the the statute. The NPRM noted that this repayment process. Federal Election Campaign Act, 2 U.S.C. issue has ramifications for excessive The NPRM also set out countervailing 441a(b) (‘‘FECA’’). These regulations expenditures made directly by the arguments in support of retaining 11 implement 26 U.S.C. 9038. For the candidate’s campaign committee from CFR 9038.2(b)(2)(ii)(A). While section reasons explained below, the its own funds, as well as excessive 9007(b)(2) of the Fund Act clearly states Commission is making no changes at expenditures stemming from the that repayments can be sought from this time to 11 CFR 9038.2(b). campaign committee’s acceptance of in- general election candidates who incur

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00001 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 15274 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules expenses in excess of the aggregate whenever they exceed the spending 2. Public Comments payments to which they are entitled, the limits set forth in 2 U.S.C. 441a(b)(1) Matching Payment Act can be and 26 U.S.C. 9035. This reading of the Two written comments addressing the interpreted to set forth repayment two statutes avoids the anomalous Commission’s statutory authority to requirements for primary candidates situation that would result if spending seek repayment from Presidential that are the equivalent of that general limit violations involving candidates primary committees that exceed the election provision. who accepted public funding for their spending limits were received from A qualified campaign expense of a primary elections were treated entirely Common Cause and Democracy 21 (joint primary election committee is an differently than spending limit comment); and Lyn Utrecht, Eric expense where ‘‘neither the incurring violations involving the very same Kleinfeld, and Patricia Fiori (joint nor payment * * * constitutes a candidates during their general election comment). The witnesses who violation of any law of the United States campaigns. presented testimony on this issue were * * *.’’ 26 U.S.C. 9032(9). A This argument is supported by the Lyn Utrecht (Ryan, Phillips, Utrecht & Presidential primary candidate who court decision in John Glenn MacKinnon), Joseph E. Sandler (DNC), exceeds the expenditure limitations Presidential Committee v. FEC, 822 F.2d and Thomas J. Josefiak (RNC). violates two laws, 26 U.S.C. 9035 and 2 1097 (D.C. Cir. 1987) (upholding the The bipartisan comments and U.S.C. 441a(b)(1)(A). Section 9035 of the Commission’s repayment determination testimony supported the Commission’s Matching Payment Act states that ‘‘no against a publicly funded primary authority to obtain repayments for candidate shall knowingly incur election candidate for exceeding the excessive spending by primary qualified campaign expenses in excess state-by-state expenditure limitations in candidates’ campaign committees using of the expenditure limitations the face of a constitutional challenge). their own funds to exceed the limits. applicable under section 441a(b)(1)(A) The Glenn opinion stated that However, two witnesses indicated that of title 2 * * *.’’ Section 441a(b)(1) of ‘‘campaign expenses are not ‘qualified’ they did not believe the Commission the FECA states that ‘‘no candidate for if they exceed the limits Congress set, has the authority to require a repayment the Office of President who is eligible’’ including the limits on spending in each from a Presidential campaign committee to receive public funds may make state. 26 U.S.C. 9035(a).’’ Id. at 1099. based on expenditures made by a party expenditures in excess of the statutorily See also, Kennedy for President committee, or based on contributors’ in- prescribed limitations. 2 U.S.C. Committee v. FEC, 734 F.2d 1558, 1560 kind contributions, where these 441a(b)(1). Thus, one reading of this n. 1 (D.C. Cir. 1984) (holding that expenses were not incurred or accepted language is that expenses in excess of ‘‘[u]nder 26 U.S.C. 9035, campaign by the candidate’s campaign committee. expenditure limitations for publicly expenditures are not ‘qualified’ if they One of these witnesses observed that funded primary candidates are non- exceed certain spending limits, both sections 9002(11) and 9032(9) of qualified because they violate the law. including limitations on spending in Title 26 define ‘‘qualified campaign Consequently, it can be argued that they each state during the presidential expense’’ to mean an expense are repayable under 26 U.S.C. primaries’’). The state-by-state spending ‘‘incurred’’ by the candidate or the 9038(b)(2). The answer to the argument limits at issue in these two cases are in candidate’s authorized committee. that the language of section 9035 section 441a(b)(1)(A) and (g) of the Thus, the witness’ comment argued that specifically contemplates that amounts FECA. These court decisions arguably expenditures made by other individuals spent in excess of the expenditure or entities are not ‘‘qualified campaign limitations can constitute qualified require the Commission to order expenses’’ and cannot form the basis for campaign expenses is that the two repayments of matching funds used for a repayment determination. statutes must be read together, and unqualified purposes. Glenn at 1099, section 9035 may mean that candidates Kennedy at 1561. 3. Additional Alternative—Repayment shall not incur expenses that would With regard to alleged in-kind of Funds Exceeding Entitlement otherwise be qualified except for the contributions by third parties such as fact that they exceed the section 441a political party committees, it can be After the close of the comment period expenditure limitations. argued that the Glenn and Kennedy and the hearing, the Commission Additionally, there is a countervailing cases are not dispositive because they considered whether repayments can be argument that the Fund Act and the did not involve third party required under paragraph (b)(1) of 26 Matching Payment Act mandate expenditures, and that these amounts U.S.C. 9038, which addresses the identical results—namely, the are not necessarily in the same pool of repayment of funds received in excess repayment of expenditures exceeding funds from which a publicly funded of the aggregate amount of payments to the spending limits—albeit in slightly campaign makes expenditures. The which the candidate is entitled. The different ways. Arguably, there is no Glenn court indicated that it was not rationale for this approach would be provision in the general election Fund ruling on a repayment determination that, since presidential primary Act corresponding to section 9035 of the involving private funds. Glenn at 1098. candidates and their committees do not Matching Payment Act. Consequently, it However, on the other hand, in-kind receive these matching funds until after can be argued that this may be why 26 contributions to candidates are they meet or exceed either the state-by- U.S.C. 9007(b)(2) specifically mandates simultaneously treated as expenditures state or the overall spending limits, the repayments from general election by those candidates under section campaigns were not entitled to receive committees for spending amounts that 431(8)(A)(i) and (9)(A)(i) of the FECA, these funds in the first place, and exceed their entitlements. Under this and must be reported as both therefore must repay these amounts to interpretation, language corresponding contributions and expenditures under the Treasury. None of the public to section 9007(b)(2) is not needed in 11 CFR 104.13. In the past, the comments or testimony addressed the the Matching Payment Act because Commission has considered in-kind payments-in-excess-of-entitlement repayments are already required when contributions to be commingled with a theory for repayments under 26 U.S.C. primary election committees make non- publicly financed candidate’s other 9038(b)(1) because this approach was qualified campaign expenses by expenditures and subject to the not specifically included in the violating the law, which they do candidate’s expenditure limitations. December 1998 NPRM.

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4. Conclusion SUPPLEMENTARY INFORMATION: management performance verified through the examination process and The Commission has decided to make A. Background no changes to the regulation at 11 CFR resulting high CAMEL ratings. NCUA is considering a policy for The NCUA Board is interested in 9038.2(b), which currently requires exempting qualifying credit unions from publicly funded Presidential primary receiving comments on whether credit certain regulatory provisions. The unions with a proven track record of campaigns to make repayments on the regulatory provisions under basis of exceeding the Congressionally- favorable performance should be consideration are those which are not allowed additional regulatory flexibility mandated spending limits. The current specifically required by statute and the rule is not being changed at this time since their demonstrated ability exemption from which would permit mitigates the predominance of what because there is no consensus in favor these credit unions greater flexibility in of changing the regulation. limited safety and soundness concerns, managing their operations. NCUA staff if any, might arise from a reduction of Dated: March 17, 2000. has reviewed agency regulations and certain specified regulatory Darryl R. Wold, has listed, in this advanced notice of requirements. Examples of mitigating Chairman, Federal Election Commission. proposed rulemaking (ANPR), those factors include, but are not limited to, [FR Doc. 00–7108 Filed 3–21–00; 8:45 am] regulations which the NCUA Board additional capital, strong management believes may meet these criteria. The BILLING CODE 6715±01±P and consistent earnings. It is believed purpose of this ANPR is to elicit public that a healthy risk management comment on whether the proposed infrastructure strengthens capital exemptions would in fact be of such adequacy and diminishes risk to the NATIONAL CREDIT UNION benefit and to find out if there are any ADMINISTRATION National Credit Union Share Insurance other regulations or NCUA requirements Fund (NCUSIF). which credit unions believe should be 12 CFR Part 742 The NCUA Board is also interested in considered in this proposal. The NCUA Board believes that safe receiving comment on whether a Regulatory Flexibility and Exemption flexible regulatory approach which Program and sound credit unions with a proven record of effective risk management, as results in the removal of selected AGENCY: National Credit Union demonstrated by advanced levels of net regulatory obstacles for those credit Administration (NCUA). worth and consistently high CAMEL unions with strong records of safety and soundness and effective risk ACTION: ratings, may be reasonable candidates Advance Notice of proposed management will encourage them to rulemaking. for greater regulatory flexibility from certain NCUA regulations which are not strive to maintain and enhance those SUMMARY: NCUA is soliciting public specifically required by statute and levels of financial performance as well comment on whether, and under what which have minimal safety and as to better enable them to remain circumstances, NCUA should adopt a soundness ramifications when applied competitive in the financial regulation that would permit credit to federal credit unions with proven risk marketplace, foster innovation in unions with advanced levels of net management records. member service and extend credit to the worth and consistently strong CAMEL In considering this advance notice of underserved. ratings to be exempt, in whole or in proposed rulemaking, the NCUA Board The NCUA Board is interested in part, from certain NCUA regulations did not include any current regulation whether providing additional flexibility that are not specifically required by which is statutorily imposed and in selected regulatory requirements to statute. Comments are also requested on therefore must continue to be credit unions that meet RegFlex triggers whether the adoption of such a implemented by NCUA in a form might result in a reduction in service regulation would reduce regulatory consistent with the manner specified for within a credit union’s field of burden without adversely affecting implementation when passed by membership for fear that with safety and soundness. Information from Congress. Likewise, the NCUA Board additional risk taking, delinquencies interested parties will assist NCUA in did not consider a number of other might increase and jeopardize the credit determining whether and in what form regulations which, although not union maintaining their CAMEL 1 and to issue a proposed rule on regulatory specifically required by statute, are 2 ratings. flexibility. nonetheless rooted in overriding Would establishing this special class concern for the overall safety and of credit unions to receive different DATES: The NCUA must receive soundness of the credit union system regulatory treatment provide a comments on or before May 22, 2000. and, therefore, would not be appropriate competitive advantage to RegFlex credit ADDRESSES: Direct comments to Becky for inclusion in a formal regulatory unions over non RegFlex eligible credit Baker, Secretary of the Board. Mail or flexibility proposal. unions. hand-deliver comments to: National However, internal agency research The proposal the NCUA Board is Credit Union Administration, 1775 and evaluation has produced examples considering would involve an Duke Street, Alexandria, Virginia of certain specified regulatory exemption process for qualifying federal 22314–3428, or you may fax comments restrictions that are not specifically credit unions, rather than a regulatory to (703) 518–6319. Please send required by statute and may be forbearance program available to all comments by one method only. unnecessary to apply equally to all federal credit unions. Those federal FOR FURTHER INFORMATION CONTACT: credit unions based on their individual credit unions that qualify must Michael J. McKenna, Senior Staff safety and soundness circumstances, demonstrate, based on their CAMEL Attorney, Division of Operations, Office because the regulations, although ratings and strong capital positions, that of General Counsel, at the above address appropriate for some credit unions, have they are capable of managing the or telephone: (703) 518–6540 or Herb limited safety and soundness additional risks that these regulatory Yolles, Deputy Director, Office of ramifications when applied to federal flexibilities may pose. NCUA believes Examination and Insurance, at the above credit unions with advanced levels of that the proposed qualification and address or telephone: (703) 518–6360. net worth and ongoing strong exemption process will effectively

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00003 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 15276 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules mitigate any additional risk to the affected NCUA regulations or specific Since that time losses have been NCUSIF. provisions of regulations would be set negligible and credit union capital forth in the RegFlex regulation. The positions have increased from an B. The Regulatory Flexibility (RegFlex) second option is for a formal approval average capital ratio of 6.8% in Proposal and designation process by the region December 1984 to 11.7% in December The first of the two criteria for before the credit union could engage in 1999. However, many credit unions eligibility under this proposal, for these RegFlex activities. As part of the have been required to seek NCUA which comments are requested, is that application process the credit union approval to exceed the regulatory limit credit unions must have been rated as would need to note if there had been in order to more effectively serve their CAMEL code 1 or code 2 for two any recent changes in senior field of membership or to extend the consecutive exams (with a Camel code management. In addition, if a credit level of service to underserved areas. 1 or 2 in management). NCUA has a union is approved for RegFlex it would Such approvals have been granted on a decreased safety and soundness concern have to notify the region whenever there regular basis to credit unions with for these credit unions because it has is a subsequent change in senior strong capital ratios and proven records been suggested that such credit unions management or a material financial of risk management. Although often are characterized by: granted to credit unions who are willing • event that impacts capital. Performance that consistently It is proposed that a regional director, to go through the time-consuming provides for safe and sound operations; advance approval process, it is likely • in his or her sole discretion, for Positive historical and projected substantive and documented safety and that some credit unions may have been key performance measures; and soundness reasons, would be authorized deterred from extending their service to • The ability to withstand business to revoke the RegFlex authority in some within their field of membership fluctuations. or to underserved areas because of this The second criterion for this proposal whole or in part at any time and without advance notice. In such cases, the credit advance waiver regulatory requirement. is that a credit union must have net Since capital position and CAMEL worth of 9% or greater, and is union would be able to appeal such a determination to NCUA’s Supervisory rating are among the key indices used to determined to be well-capitalized under evaluate a credit union’s application in Part 702 of NCUA’s regulations. It has Review Committee within 60 days of the regional director’s determination. NCUA making such an advance waiver request, been suggested that generally, this it seems that this regulatory requirement indicates that a credit union has both realizes that if this proposal is adopted it will have to modify the interpretive would be an ideal candidate to demonstrated the ability to build capital streamline for those credit unions who and has accumulated at least a 200-basis ruling and policy statement regarding the Supervisory Review Committee. meet the capital and CAMEL based point cushion over the minimum level RegFlex criteria. It is the view of the to be classified as well-capitalized C. Potential Regulations NCUA Has NCUA Board that some exemption from under the NCUA’s recently adopted Initially Identified as Part of the the fixed asset rule for credit unions prompt corrective action regulation. Proposal who have proven their ability to This cushion of 200 basis points or (1) Section 701.36—FCU Ownership of adequately manage a higher level of greater represents a significant decrease Fixed Assets investment in fixed assets would serve in risk to both the credit union and the to better enable those credit unions to NCUSIF. The NCUA Board is also NCUA originally proposed a fixed serve their members more effectively requesting comment on whether the asset rule in 1979. The regulation was and extend service to underserved areas. capital trigger for complex credit unions intended to ensure that the officials of Should a credit union not have to should be different and if so, what FCUs had considered all relevant factors apply for a waiver provided for in criteria should be used. prior to committing large sums of Section 701.36(c) if they meet the It is assumed that credit unions which members’ funds to the acquisition of requirements of the RegFlex proposal? qualify for this proposal clearly fixed assets. The final regulation Should a credit union’s investment in represent a reduced safety and attempted to accomplish this by fixed assets have no regulatory cap? soundness risk. They have a proven requiring credit unions to seek the Should credit unions as a sound track record that mitigates safety and written approval of NCUA before business practice have in their written soundness concerns and have capital investing in fixed assets in excess of 5% business plan their own fixed asset levels that decrease any minimal of their assets. The approval process limit? As an impact of such an additional risk this regulatory flexibility was established so that the form and exemption, it should be noted that, proposal may present. Is this an content of the request would contain some of the restrictions on purchasing a assumption upon which the RegFlex sufficient information to establish the building and leasing a portion of the proposal should be based? need for and the feasibility of the property, until it was fully utilized by For the reasons discussed above, the request and to determine the impact of the credit union, would also be lifted. NCUA Board is requesting comment on the proposal on the credit union’s However, this would not authorize a a proposed regulation that would operations. When the rule was revised credit union to engage in long-term exempt credit unions that have in 1984, NCUA cited some ongoing commercial leasing. For safety and maintained a CAMEL 1 or 2 and a net concerns at that time about potential soundness reasons and legal reasons the worth of 9% for two consecutive exams credit union losses if credit unions with credit union would still need to have a from all or part of certain NCUA insufficient capital were to invest in reasonable plan to fully utilize the regulations. The NCUA Board is fixed assets disproportionate to their property. Is this a reasonable requesting comment on two approaches restricted capital position. Therefore, application of the RegFlex exemption? for granting this authority. The first the requirement that a credit union option is that any credit union that receive NCUA approval if it wishes to (2) Part 703—Investment and Deposit meets this criteria will automatically be invest in an aggregate total of fixed Activities exempt from all or specified parts of the assets that exceeds 5 percent of shares NCUA is considering whether to identified regulatory provisions in the and retained earnings was incorporated include various sections of Part 703, proposed RegFlex regulation. All of the in the 1984 revision. Investment and Deposit Activities, in

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00004 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15277 the proposal. Part 703, effective January unions that measure the impact of financial condition of the federal credit 1, 1998, recognized that advances in interest rate changes on their entire union. Should credit unions meeting the modeling and measuring risk factors balance sheet, should NCUA waive or RegFlex criteria be completely exempt permitted institutions to better modify this regulatory requirement? from the requirements of this understand and manage their risk Section 703.40(c)(6) limits the regulation? profile. NCUA shifted the regulatory discretionary delegation of investments (4) Section 722.3(a)(1)—Appraisals focus from emphasis on specific to third parties to 100 percent of net investments to the characteristics that capital. Should NCUA waive or modify The appraisal regulation was affect risk management of investment the 100 percent limitation and permit mandated for all federal financial activity, including credit union board credit unions to set the limit by board institution regulatory agencies by and staff understanding of the potential policy for credit unions? FIRREA in 1989. NCUA adopted its risk associated with the credit union’s Section 703.110(d) limits zero coupon final regulation in 1990. NCUA’s current investment activities. The rule investments to under 10 years from regulation is more restrictive than the established parameters for risk settlement date. Should NCUA extend other financial institution regulators assessment and permits credit union this maturity? If so, what limitations because of the unique nature of credit operating flexibility within those should be set, if any? How should credit unions. However, experience has parameters. At the same time, it unions assess this risk? demonstrated that certain credit unions minimized the regulatory burden on Section 703.110 prohibits stripped, are able to adequately manage a higher those credit unions that choose to mortgage-backed securities, residual degree of risk in making loans without maintain a simple portfolio of interests in CMOs/REMICS, mortgage an appraisal. Therefore, should credit investments. servicing rights, commercial mortgage- unions meeting the RegFlex criteria be In October, 1998, the NCUA Board related securities, or small business allowed to increase the dollar threshold approved, as Interpretive Ruling and related securities. NCUA is interested in from $100,000 to $250,000 for when an Policy Statement No. 98–2, the FFIEC comments on whether this section appraisal is required? Such an increase Policy Statement on Investment should be part of the proposal or would be consistent with the regulatory Securities and End-User Derivative otherwise modified. If so, would these authority set forth by the appropriate Activities. This statement emphasizes vehicles play an active role in your agencies regulating banks and thrifts. sound business practices for managing portfolio? Are there specific risks that Furthermore, the threshold for an the risks of investment activities. Board need to be addressed? If authorized, appraisal for a member business loan and senior management oversight is an should NCUA limit this activity in would be increased to $250,000 if it integral part of an effective risk relation to capital? involves real estate. However, in both management program. An effective risk The investment area is of particular loan categories, the loan must still be management system also includes: (1) concern for safety and soundness supported by a written estimate of Policies, procedures, and limits; (2) the reasons. If the eligibility for expanded market value as set forth in Section identification, measurement, and investment authority is limited to credit 723.3(d) of NCUA’s regulation. Finally, reporting of risk exposures; and (3) a unions meeting the RegFlex criteria, are there any other provisions in Part system of internal controls. This policy should that authority be automatic or 722 that NCUA should consider for this statement eliminated the FFIEC High should an application and approval proposal? Risk Security Test for CMOs as a process be required of those credit (5) Section 701.32 (b) and (c)—Payment supervision tool and recognized that unions which desire such expanded on Shares by Public Unit and institutions should be valuing the price investment authority? Are there any sensitivity of their investments prior to other provisions of Part 703 that NCUA Nonmembers purchase and on an ongoing basis. should consider for this proposal? The limitation on public unit and nonmember shares was adopted by the Technology continues to improve a (3) Section 701.25—Charitable credit union’s ability to measure risk. NCUA Board in 1989 because of abuses Donations The regulatory focus continues to by certain credit unions and significant migrate toward risk assessment of The original requirements on losses suffered by the NCUSIF. In 1994, internal controls and evaluation of charitable donations were set forth in the NCUA Board increased the dollar management processes. Those Interpretive Ruling and Policy thresholds in these types of shares. The institutions that have developed sound Statement (IRPS) 79–6. The original current regulation limits the maximum business practices in their risk requirements were imposed to provide amount of all public unit and management processes can assume a guidance regarding charitable donations nonmember shares to 20% of total higher risk profile. The NCUA Board is since there were many questions about shares of the federal credit union or $1.5 requesting comment on whether the what was permissible. In 1999, the million, whichever is greater. Recent investment requirements should be NCUA Board incorporated the IRPS into experience indicates that certain credit modified for credit unions that meet the NCUA’s regulation and substantially unions may be able to adequately criteria set forth in this proposal and deregulated the requirements. The manage the increased risks posed by demonstrate the ability to manage the current rule limits recipients of these type of shares. Therefore, should increased risk, or should Part 703 be charitable donations to organizations credit unions meeting the RegFlex modified to allow all credit unions the located in or conducting activities in a criteria be exempt from the regulatory authority to have increased flexibility, community in which the FCU has a restrictions on public unit funds and or should NCUA make no regulatory place of business. Furthermore, the nonmember shares (nonmember shares changes? board of directors must approve may be accepted by low-income credit Section 703.90 requires quarterly charitable contributions, and the unions)? stress testing (300 basis point shock) of approval must be based on a individual complex securities if the determination by the board of directors (6) Section 701.23—Purchase, Sale and total sum of complex securities, as that the contributions are in the best Pledge of Eligible Obligations defined by the investment regulation, interests of the federal credit union and The NCUA Board seeks comment on exceed net capital. For those credit are reasonable given the size and whether it should permit credit unions

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00005 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 15278 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules that meet the RegFlex criteria to unions. However, since a proposed rule By the National Credit Union purchase any auto loan, credit card for Part 721 is presently scheduled to be Administration Board on March 16, 2000. loan, member business loan, student issued this summer, further details on Becky Baker, loan or mortgage loan from any other how the revised rule may be Secretary of the Board. credit union as long as they are loans incorporated, if appropriate, into the [FR Doc. 00–7040 Filed 3–21–00; 8:45 am] the purchasing credit union is RegFlex approach will be set forth in the BILLING CODE 7535±01±P empowered to grant. If authorized, proposed RegFlex rule. should the purchasing credit union be Proposed Part 714 on leasing was permitted to keep these loans in their DEPARTMENT OF TRANSPORTATION portfolios? Should this change be issued by the NCUA Board in the fall of applicable to all credit unions? Finally, 1999. 64 FR 55866 (October 15, 1999). Federal Aviation Administration are there any other issues in managing The NCUA Board expects a final rule a loan portfolio that should be will be presented at the May Board 14 CFR Part 39 addressed in this section or section meeting. In connection with RegFlex, [Docket No. 2000±CE±02±AD] 701.21? the Board requests comment on whether it may be appropriate to permit federal RIN 2120±AA64 D. Request for Comment on Related Issues credit unions meeting the RegFlex criteria to engage in certain leasing Airworthiness Directives; Raytheon Should the asset base of a credit activities without the restrictions that Aircraft Company Beech Models union which expands into a low-income would be generally applicable to other 1900C, 1900C (C±12J), and 1900D or underserved area be frozen for the federal credit unions but that are not Airplanes calculation of the operating fee. If so, for legally required. AGENCY: Federal Aviation what amount of time? Should there be some minimum threshold on the size of The NCUA Board is also requesting Administration, DOT. the underserved area in order for the comment on what changes, if any, might ACTION: Notice of proposed rulemaking credit union to be eligible for this be considered to NCUA’s supervision (NPRM). treatment? If the credit union and examination program for credit SUMMARY: This document proposes to subsequently adds another underserved unions meeting the RegFlex criteria. adopt a new airworthiness directive area, after the specified time, to its field Possible areas of consideration are a (AD) that would apply to certain of membership, should its assets be different type of exam for RegFlex credit Raytheon Aircraft Company (Raytheon) readjusted and frozen for another period unions or a revised examination Beech Models 1900C, 1900C (C–12J), of time in the calculation for the credit schedule for RegFlex credit unions. and 1900D airplanes. The proposed AD union’s operating fee? would require you to install a spiral The NCUA Board also seeks comment What guidance should the NCUA wrap around the wing fuel quantity on whether the regulatory flexibility Board provide to examiners to ensure wiring harness and apply an adhesive outlined in this proposal should be used that credit unions are not discouraged sealant to the Wiggins couplings on the as an incentive to encourage eligible from responsibly managing additional internal fuel tank wiring carry-through credit unions to continue serving low- risk in an effort to provide credit to a conduit. The proposed AD results from income individuals within their field of broader range of its members? For reports of chafed or shorted wing fuel membership or to add an underserved instance, should peer comparisons be area or low-income groups to their field dropped? Should delinquency and quantity harness wires on the affected of membership. This could be charge-off rates be more liberally airplanes. These occurrences were found during regular maintenance accomplished by including low-income approached during examinations? If so, inspections. The actions specified by or underserved area as one of the basic is there a numerical rate that should be eligibility criteria under the proposal. the proposed AD are intended to: considered acceptable? —prevent chafing between the wing fuel The NCUA Board is also requesting The NCUA Board is also requesting quantity wiring harness and the comment on whether there are any other internal wing harness supports at incentives or areas of regulatory comment on any other regulatory or flexibility that may be granted to federal supervisory issues that might be good each wing rib location, which could credit unions to encourage them to candidates for RegFlex. Please do not cause the fuel quantity indication to expand into underserved areas. comment on regulations which are become unreliable. This could leave The NCUA Board recently issued an statutory or provisions that are the flight crew without an indication advance notice of proposed rulemaking mandated by statutory requirements. of the amount of fuel the airplane has at the November Board meeting. 64 FR These cannot and will not be included during flight; and 66413 (November 26, 1999). The Board in any final RegFlex regulation —prevent fuel from leaking through the stated that it is considering expanding approved by the NCUA Board. Among wiring carry-through conduit and into its view of the incidental powers of a others, examples of such statutory the wing tip or wheel well area, which could lead to a fire or federal credit union. Id. at 66414. The regulations and provisions include explosion. Board may consider it necessary to limit Truth-In-Savings (Part 707), the or restrict some activities that may be aggregate loan limit in the member DATES: The Federal Aviation permissible as an incidental power business loan rule (Part 723) or the 1% Administration (FAA) must receive any because of safety and soundness loan and investment limit in the CUSO comments on this rule on or before May concerns. In connection with RegFlex, rule (Part 712). Furthermore, please do 19, 2000. the Board believes it may be appropriate not comment on regulations that NCUA ADDRESSES: Submit comments in to permit federal credit unions meeting does not issue or control such as triplicate to FAA, Central Region, Office the RegFlex criteria to engage in Regulation B or Regulation Z which are of the Regional Counsel, Attention: incidental power activities without the issued by the Board of Governors of the Rules Docket No. 2000-CE–02–AD, 901 restrictions that would be generally Federal Reserve System. Locust, Room 506, Kansas City, applicable to other federal credit Missouri 64106.

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You may get the service information Availability of NPRMs What are the provisions of this service referenced in the proposed AD from the You may obtain a copy of this NPRM bulletin? The service bulletin includes Raytheon Aircraft Company, PO Box 85, by submitting a written request to FAA, procedures for: Wichita, Kansas 67201–0085; telephone: Central Region, Office of the Regional —Installing a spiral wrap around the (800) 625–7043 or (316) 676–4556. You Counsel, Attention: Rules Docket No. wing fuel quantity wiring harness; may examine this information at the 2000–CE–02–AD, 901 Locust, Room and Rules Docket at the address above. 506, Kansas City, Missouri 64106. —Applying an adhesive sealant to the FOR FURTHER INFORMATION CONTACT: Wiggins couplings on the internal fuel Mr. Discussion Jeff Pretz, Aerospace Engineer, Wichita tank wiring carry-through conduit. Aircraft Certification Office, FAA, 1801 What events have caused the The FAA’s Determination and an Airport Road, Mid-Continent Airport, proposed rule? Several operators of Explanation of the Provisions of the Wichita, Kansas 67209; telephone: (316) Raytheon Beech Models 1900C and Proposed AD 946–4153; facsimile: (316) 946–4407. 1900D airplanes have reported chafing of the wing fuel quantity wiring harness What has the FAA decided? After SUPPLEMENTARY INFORMATION: against the wing fuel quantity wiring examining the circumstances and reviewing all available information Comments Invited harness supports (located at the wing wiring harness lighting hole mounts). related to the incidents described above, The FAA invites comments on the The condition is also conducive to the including the relevant service proposed rule. You may submit Model 1900C (C–12J) airplanes. information, FAA has determined that: whatever written data, views, or The lightning hole mounts at each —An unsafe condition is likely to exist arguments you choose. You need to wing rib support the wing fuel quantity or develop in other Raytheon Beech include the rule’s docket number and wiring harness. The following could Models 1900C, 1900C (C–12J), and submit your comments in triplicate to occur and cause the above-referenced 1900D airplanes of the same type the address specified under the caption condition: design; —The actions of the above-referenced ADDRESSES. We will consider all —Vibration and fuel movement cause comments received on or before the service bulletin should be the insulation on the wiring harness accomplished on the affected closing date specified above, before to chafe on the tie straps used to taking action on the proposed rule. We airplanes; and secure the harness to the lightning —AD action should be taken to prevent may change the proposals contained in hole mounts; and this notice in light of the comments the above-referenced conditions from —Exposed conductors of the wiring occurring. received. harness could then contact each other What would the proposed AD require? The FAA is re-examining the writing and result in an incorrect fuel The proposed AD would require you to: style we currently use in regulatory quantity indication or the indicator —Install a spiral wrap around the wing documents, in response to the reading zero. Presidential memorandum of June 1, fuel quantity wiring harness; and In addition to the above condition on —Apply an adhesive sealant to the 1998. That memorandum requires the Raytheon Beech Models 1900C, federal agencies to communicate more Wiggins couplings on the internal fuel 1900C (C–12J), and 1900D airplanes, the tank wiring carry-through conduit. clearly with the public. We are O-rings in Wiggins couplings that join interested in your comments on whether the electrical conduit internal to the Compliance Time of This Proposed AD the style of this document is clearer, and wing fuel tanks could leak and allow What is the compliance time of this any other suggestions you might have to fuel to enter the conduit. This could proposed AD? The compliance time in improve the clarity of FAA result in a fire or explosion. the proposed AD is whichever of the communications that affect you. You What are the consequences if the following that occurs first: can get more information about the conditions are not corrected? If not Presidential memorandum and the plain —Within the next 3 months after the corrected in a timely manner, the above- effective date of this AD; or language initiative at http:// referenced conditions could result in www.plainlanguage.gov. —Within the next 600 hours time-in- the following: service (TIS) after the effective date The FAA specifically invites —Chafing between the wing fuel of this AD. comments on the overall regulatory, quantity wiring harness and the Why is the compliance time in both economic, environmental, and energy internal wing harness supports at calendar time and hours TIS? Chafing aspects of the proposed rule that might each wing rib location could cause the damage is a direct result of airplane necessitate a need to modify the fuel quantity indication to become usage; however, the fuel leakage proposed rule. You may examine all unreliable. This could leave the flight problem could result regardless of comments we receive before and after crew without an indication of the whether the airplane is utilized. the closing date for comments in the amount of fuel in the airplane during Therefore, to assure that both problems Rules Docket. We will file a report in flight; and are address in a timely manner without the Rules Docket that summarizes each —Fuel leaking through the wiring carry- inadvertently grounding any of the FAA contact with the public that through conduit and into the wing tip affected airplanes, we are utilizing a concerns the substantive parts of this or wheel well area could lead to a fire compliance based upon both hours TIS proposal. or explosion. and calendar time. If you want us to acknowledge the receipt of your comments, you must Relevant Service Information Cost Impact include a self-addressed, stamped Is there service information that How many airplanes does this postcard. On the postcard, write applies to this subject? Yes. Raytheon proposed AD impact? The FAA ‘‘Comments to Docket No. 2000–CE–02– has issued Mandatory Service Bulletin estimates that 303 airplanes in the U.S. AD.’’ We will date stamp and mail the No. SB 28–3299, Issued: December, registry would be affected by the postcard back to you. 1999. proposed AD.

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What is the cost impact of the affected the Beech Aircraft Corporation): FAA Principal Maintenance Inspector, who airplanes on the U.S. Register? We Docket No. 2000–CE–02–AD. may add comments and then send it to the estimate that it would take (a) What airplanes are affected by this AD? Manager, Wichita ACO. approximately 10 workhours per This AD affects the following airplanes, (2) This AD applies to each airplane certificated in any category: identified in the preceding applicability airplane to accomplish the proposed (1) Part I of this AD: Wing fuel quantity provision, regardless of whether it has been actions, and that the average labor rate wiring harness attachment improvement. modified, altered, or repaired in the area is approximately $60 an hour. There is subject to the requirements of this AD. For no cost for parts to accomplish the Model Serial No. airplanes that have been modified, altered, or proposed actions. repaired so that the performance of the Based on these figures, we estimate 1900C ...... UC±1 through UC±174. requirements of this AD is affected, the the total cost impact of the proposed AD 1900C (C±12J) UD±1 through UD±6. owner/operator must request approval for an 1900D ...... UE±1 through UE±331. alternative method of compliance in on U.S. operators to be $181,800, or accordance with paragraph (g)(1) of this AD. $600 per airplane. (2) Part II of this AD: Wiggins coupling The request should include an assessment of Regulatory Impact adhesive sealing. the effect of the modification, alteration, or repair on the unsafe condition addressed by These proposed regulations would not Model Serial No. this AD; and, if you have not eliminated the have a substantial direct effect on the unsafe condition, specific actions you States, on the relationship between the 1900C ...... UC±1 through UC±174. propose to address it. national government and the States, or 1900C (C±12J) UD±1 through UD±6. (h) Where can I get information about any on the distribution of power and 1900D ...... UE±1 through UE±354. already-approved alternative methods of compliance? Contact Jeff Pretz, Aerospace responsibilities among the various Engineer, Wichita Aircraft Certification (b) Who must comply with this AD? levels of government. Therefore, FAA Office, FAA, 1801 Airport Road, Mid- Anyone who wishes to operate any of the determines that this proposed rule Continent Airport, Wichita, Kansas 67209; above airplanes on the U.S. Register must telephone: (316) 946–4153; facsimile: (316) would not have federalism implications comply with this AD. 946–4407. under Executive Order 13132. (c) What problem does this AD address? (i) What if I need to fly the airplane to For the reasons discussed above, I The actions specified by this AD are intended another location to comply with this AD? The certify that this action (1) is not a to prevent the following: FAA can issue a special flight permit under ‘‘significant regulatory action’’ under (1) Part I of this AD: chafing between the sections 21.197 and 21.199 of the Federal wing fuel quantity wiring harness and the Executive Order 12866; (2) is not a Aviation Regulations (14 CFR 21.197 and internal wing harness supports at each wing ‘‘significant rule’’ under DOT 21.199) to operate your airplane to a location rib location, which could cause the fuel Regulatory Policies and Procedures (44 where you can accomplish the requirements quantity indication to become unreliable. FR 11034, February 26, 1979); and (3) if of this AD. This could leave the flight crew without an (j) Who should I contact if I have questions promulgated, will not have a significant indication of the amount of fuel the airplane regarding the service information? Questions economic impact, positive or negative, has during flight; and or technical information related to Raytheon on a substantial number of small entities (2) Part II of this AD: fuel from leaking Mandatory Service Bulletin No. SB 28–3299, under the criteria of the Regulatory through the wiring carry-through conduit and Issued: December, 1999, should be directed into the wing tip or wheel well area, which Flexibility Act. The FAA has placed a to Raytheon Aircraft Corporation, P.O. Box could lead to a fire or explosion. copy of the draft regulatory evaluation 85, Wichita, Kansas 67201–0085. This service (d) What must I do to address this prepared for this action in the Rules information may be examined at the FAA, problem? To address this problem, you must Docket. You may contact the Rules Central Region, Office of the Regional accomplish the following actions: Counsel, 901 Locust, Room 506, Kansas City, Docket (at the location provided under (1) Part I of this AD: Install a spiral wrap Missouri 64106. the caption ADDRESSES) to get a copy of around the wing fuel quantity wiring this evaluation. harness; and Issued in Kansas City, Missouri, on March 14, 2000. List of Subjects in 14 CFR Part 39 (2) Part II of this AD: Apply an adhesive sealant to the Wiggins couplings on the Carolanne L. Cabrini, Air transportation, Aircraft, Aviation internal fuel tank wiring carry-through Acting Manager, Small Airplane Directorate, safety, Safety. conduit. Aircraft Certification Service. (e) What is the compliance time of all The Proposed Amendment actions of this AD? You must accomplish all [FR Doc. 00–7091 Filed 3–21–00; 8:45 am] Accordingly, under the authority actions of this AD at whichever of the BILLING CODE 4910±13±U delegated to me by the Administrator, following times that occurs first: (1) Within the next 3 calendar months after the Federal Aviation Administration the effective date of this AD; or DEPARTMENT OF TRANSPORTATION proposes to amend part 39 of the (2) Within the next 600 hours time-in- Federal Aviation Regulations (14 CFR service (TIS) after the effective date of this Federal Aviation Administration part 39) as follows: AD. (f) What procedures must I use to 14 CFR Part 39 PART 39ÐAIRWORTHINESS accomplish the actions required in this AD? DIRECTIVES You must use the procedures in Raytheon [Docket No. 99±SW±37±AD] Mandatory Service Bulletin No. SB 28–3299, 1. The authority citation for part 39 Issued: December, 1999, to accomplish the Airworthiness Directives; Sikorsky continues to read as follows: actions of this AD. Aircraft Corporation (Sikorsky) Model Authority: 49 U.S.C. 106(g), 40113, 44701. (g) Can I comply with this AD in any other S±76A Helicopters way? Yes. § 39.13 [Amended] (1) You may use an alternative method of AGENCY: Federal Aviation Administration, DOT. 2. FAA amends Section 39.13 by compliance or adjust the compliance time if: (i) Your alternative method of compliance ACTION: adding a new airworthiness directive Notice of proposed rulemaking provides an equivalent level of safety; and (NPRM). (AD) to read as follows: (ii) The Manager, Wichita Aircraft Raytheon Aircraft Company (Type Certification Office (ACO), approves your SUMMARY: This document proposes Certificate No. A24CE formerly held by alternative. Submit your request through an adopting a new airworthiness directive

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(AD) applicable to Sikorsky Model S– in the Rules Docket for examination by installing a soft-start control assembly 76A helicopters. The AD would require interested persons. A report retrofit kit on the Aero Aire Air inspecting at specified intervals until summarizing each FAA-public contact Conditioning System, P/N A–76A–1–2, installing a soft-start assembly retrofit concerned with the substance of this within 120 calendar days. The actions kit on the air conditioning system to proposal will be filed in the Rules would be required to be accomplished prevent a continuous flow of current Docket. in accordance with the Aero Aire through the soft-start resistor. This Commenters wishing the FAA to service bulletins described previously. acknowledge receipt of their comments proposal is prompted by a report of The FAA estimates that 9 helicopters submitted in response to this notice overheating of the soft-start assembly. of U.S. registry would be affected by this The actions specified by the proposed must submit a self-addressed, stamped postcard on which the following proposed AD, that it would take AD are intended to prevent overheating approximately 3 work hours per of the air conditioning soft-start statement is made: ‘‘Comments to Docket No. 99–SW–37–AD.’’ The helicopter to accomplish the proposed assembly, damage in the lower tailcone, actions, and that the average labor rate an electrical fire, and subsequent loss of postcard will be date stamped and returned to the commenter. is $60 per work hour. Aero Aire Service control of the helicopter. Bulletin No. 97002 states that the DATES: Comments must be received on Availability of NPRMs retrofit kit will be provided at no charge. or before May 22, 2000. Any person may obtain a copy of this Based on these figures, the total cost ADDRESSES: Submit comments in NPRM by submitting a request to the impact of the proposed AD on U.S. triplicate to the Federal Aviation FAA, Office of the Regional Counsel, operators is estimated to be $1620. Administration (FAA), Office of the Southwest Region, Attention: Rules The regulations proposed herein Regional Counsel, Southwest Region, Docket No. 99–SW–37–AD, 2601 Attention: Rules Docket No. 99–SW–37– would not have substantial direct effects Meacham Blvd., Room 663, Fort Worth, on the States, on the relationship AD, 2601 Meacham Blvd., Room 663, Texas 76137. Fort Worth, Texas 76137. Comments between the national government and may be inspected at this location Discussion the States, or on the distribution of power and responsibilities among the between 9:00 am and 3:00 pm, Monday This document proposes adopting a various levels of government. Therefore, through Friday, except Federal holidays. new AD applicable to Sikorsky Model it is determined that this proposal The service information referenced in S–76A helicopters. The AD would would not have federalism implications the proposed rule may be obtained from require inspecting the soft-start under Executive Order 13132. Sikorsky Aircraft Corporation, Attn: assembly at intervals not to exceed 25 Manager, Commercial Tech Support, hours time-in-service until installing a For the reasons discussed above, I 6900 Main Street, P.O. Box 9729, soft-start assembly retrofit kit on the certify that this proposed regulation (1) Stratford, Connecticut 06615–9129, Aero Aire Air Conditioning System, part is not a ‘‘significant regulatory action’’ phone (203) 386–7860, fax (203) 386– number (P/N) S–76A–1–2, in 120 under Executive Order 12866; (2) is not 4703. This information may be calendar days to prevent a continuous a ‘‘significant rule’’ under the DOT examined at the FAA, Office of the flow of current through the soft-start Regulatory Policies and Procedures (44 Regional Counsel, Southwest Region, resistor. This proposal is prompted by a FR 11034, February 26, 1979); and (3) if 2601 Meacham Blvd., Room 663, Fort report of overheating of the air promulgated, will not have a significant Worth, Texas. conditioning soft-start assembly. This economic impact, positive or negative, FOR FURTHER INFORMATION CONTACT: condition, if not corrected, could cause on a substantial number of small entities Terry Fahr, Boston Aircraft Certification serious secondary damage in the lower under the criteria of the Regulatory Office, 12 New England Executive Park, tailcone, an electrical fire, and Flexibility Act. A copy of the draft Burlington, MA 01803, telephone (781) subsequent loss of control of the regulatory evaluation prepared for this 238–7155, fax (781) 238–7199. helicopter. action is contained in the Rules Docket. SUPPLEMENTARY INFORMATION: The FAA has reviewed Sikorsky Alert A copy of it may be obtained by Service Bulletin 76–21–4A, dated contacting the Rules Docket at the Comments Invited February 24, 1998 (ASB). The ASB location provided under the caption Interested persons are invited to refers operators to procedures in Aero ADDRESSES. participate in the making of the Aire Corp. Service Bulletins 970001, proposed rule by submitting such Revision A, dated September 18, 1997, List of Subjects in 14 CFR Part 39 written data, views, or arguments as for inspecting the soft-start assembly, Air transportation, Aircraft, Aviation they may desire. Communications and 970002, dated December 18, 1997, safety, Safety. should identify the Rules Docket for installing a soft-start assembly number and be submitted in triplicate to retrofit kit, P/N 76SB001, on the Aero The Proposed Amendment the address specified above. All Aire Air Conditioning System, P/N S– communications received on or before 76A–1–2, on Sikorsky Model S–76A Accordingly, pursuant to the the closing date for comments, specified helicopters. The ASB states the authority delegated to me by the above, will be considered before taking procedures are necessary to prevent Administrator, the Federal Aviation action on the proposed rule. The overheating of the air conditioning soft- Administration proposes to amend part proposals contained in this notice may start assembly that could cause serious 39 of the Federal Aviation Regulations be changed in light of the comments secondary damage in the lower tailcone. (14 CFR part 39) as follows: received. Since an unsafe condition has been Comments are specifically invited on identified that is likely to exist or PART 39ÐAIRWORTHINESS the overall regulatory, economic, develop on other Sikorsky Model S–76A DIRECTIVES environmental, and energy aspects of helicopters of the same type designs, the the proposed rule. All comments proposed AD would require inspecting 1. The authority citation for part 39 submitted will be available, both before the soft start assembly at intervals not to continues to read as follows: and after the closing date for comments, exceed 25 hours time-in-service until Authority: 49 U.S.C. 106(g), 40113, 44701.

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§ 39.13 [Amended] Issued in Fort Worth, Texas, on March 15, Boulevard, Lawndale, California 90261, 2000. 2. Section 39.13 is amended by telephone (310) 725–6539. Eric Bries, adding a new airworthiness directive to SUPPLEMENTARY INFORMATION: read as follows: Acting Manager, Rotorcraft Directorate, Aircraft Certification Service. Comments Invited Sikorsky Aircraft Corporation: [FR Doc. 00–7112 Filed 3–21–00; 8:45 am] Interested parties are invited to Docket No. 99–SW–37–AD. BILLING CODE 4910±13±U participate in this proposed rulemaking Applicability: Model S–76A helicopters by submitting such written data, views, with Aero Aire Air Conditioning System, part or arguments as they may desire. number (P/N) S–76A–1–2, modified in DEPARTMENT OF TRANSPORTATION Comments that provide the factual basis accordance with Supplemental Type supporting the views and suggestions Certificate SH4680SW, certificated in any Federal Aviation Administration presented are particularly helpful in category. developing reasoned regulatory Note 1: This AD applies to each helicopter 14 CFR Part 71 decisions on the proposal. Comments identified in the preceding applicability [Airspace Docket No. 00±AWP±1] are specifically invited on the overall provision, regardless of whether it has been regulatory, aeronautical, economic, otherwise modified, altered, or repaired in the area subject to the requirements of this Proposed Modification of Class E environmental, and energy-related AD. For helicopters that have been modified, Airspace; Willits, CA aspects of the proposal. altered, or repaired so that the performance Communications should identify the of the requirements of this AD is affected, the AGENCY: Federal Aviation airspace docket number and be owner/operator must request approval for an Administration (FAA), DOT. submitted in triplicate to the address alternative method of compliance in ACTION: Notice of proposed rulemaking. listed below. Commenters wishing the accordance with paragraph (c) of this AD. FAA to acknowledge receipt of their The request should include an assessment of SUMMARY: This action proposes to comments on this action must submit the effect of the modification, alteration, or modify the Class E airspace area at with the comments a self-addressed, repair on the unsafe condition addressed by Willits, CA. A revision of Global stamped postcard on which the this AD; and, if the unsafe condition has not Positioning System (GPS) Standard been eliminated, the request should include following statement is made: specific proposed actions to address it. Instrument Approach Procedure (SIAP) ‘‘Comments to Airspace Docket No. 00– to Runway (RWY) 16 and RWY 34 at Compliance: Required as indicated, unless AWP–1.’’ The postcard will be date/ accomplished previously. Ells Field-Willits Municipal Airport has time stamped and returned to the To prevent overheating of the air made this proposal necessary. commenter. All communications conditioning soft-start control assembly, Additionally controlled airspace received on or before the specified damage in the lower tailcone, a fire, and extending upward from 700 feet or more closing date for comments will be subsequent loss of control of the helicopter, above the surface of the earth is needed considered before taking action on the accomplish the following: to contain aircraft executing the GPS proposed rule. The proposal contained (a) Within 25 hours time-in-service (TIS) RWY 16 and RWY 34 SIAP to Ells Field- in this action may be changed in light and thereafter at intervals not to exceed 25 Willits Municipal Airport. The intended of comments received. All comments hours TIS, inspect the soft-start control effect of this proposal is to provide submitted will be available for assembly in accordance with the Accomplishment Instruction, Section III, of adequate controlled airspace for examination in the Airspace Branch, Air Aero Aire Corporation Service Bulletin No. Instrument Flight Rules (IFR) operations Traffic Division, 15000 Aviation 970001, Revision A, dated September 18, at Ells Field-Willits Municipal Airport, Boulevard, Lawndale, California 90261, 1997, except neither contact nor return of the Willits, CA. both before and after the closing date for soft-start controller unit is required. DATES: Comments must be received on comments. A report summarizing each (b) Within 120 calendar days, install a soft or before April 17, 2000. substantive public contact with FAA start assembly retrofit kit (kit), P/N 76SB001, ADDRESSES: Send comments on the personnel concerned with this in accordance with the Accomplishment rulemaking will be filed in the docket. Instructions, Section III, of Aero Aire proposal in triplicate to: Federal Corporation Service Bulletin 970002, dated Aviation Administration, Attn: Availability of NPRM December 18, 1997. Installing the kit is Manager, Airspace Branch, AWP–520, Any person may obtain a copy of this terminating action for the requirements of Docket No. 00–AWP–1, Air Traffic Notice of Proposed Rulemaking (NPRM) this AD. Division, 15000 Aviation Boulevard, (c) An alternative method of compliance or by submitting a request to the Federal Lawndale, California 90261. Aviation Administration, Airspace adjustment of the compliance time that The official docket may be examined provides an acceptable level of safety may be Branch, 15000 Aviation Boulevard, used if approved by the Manager, Boston in the Office of Regional Counsel, Lawndale, California 90261. Aircraft Certification Office, FAA. Operators Western-Pacific Region, Federal Communications must identify the shall submit their requests through an FAA Aviation Administration, Room 6007, docket number of this NPRM. Persons Principal Maintenance Inspector, who may 15000 Aviation Boulevard, Lawndale, interested in being placed on a mailing concur or comment and then send it to the California 90261. list for future NPRM’s should also Manager, Boston Aircraft Certification Office. An informal docket may also be request a copy of Advisory Circular No. Note 2: Information concerning the examined during normal business hours 11–2A, which describes the application existence of approved alternative methods of at the Office of the Manager, Airspace procedures. compliance with this AD, if any, may be Branch, Air Traffic Division at the above obtained from the Boston Aircraft address. The Proposal Certification Office. FOR FURTHER INFORMATION CONTACT: The FAA is considering an (d) Special flight permits may be issued in accordance with sections 21.197 and 21.199 Larry Tonish, Air Traffic Airspace amendment to 14 CFR part 71 by of the Federal Aviation Regulations (14 CFR Specialist, Airspace Branch, AWP–520, modifying the Class E airspace area at 21.197 and 21.199) to operate the helicopter Air Traffic Division, Western-Pacific Willits, CA. A revisions to the GPS RWY to a location where the requirements of this Region, Federal Aviation 16 and RWY 34 SIAP at Ells Field- AD can be accomplished. Administration, 15000 Aviation Willits Municipal Airport has made this

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The above the surface of the earth. the public docket for this rulemaking. intended effect of this proposal is to * * * * * Comments and material received from provide adequate controlled airspace for AWP CA E5 Willits, CA [Revised] the public, as well as documents aircraft executing the GPS RWY 16 and Ells Field-Willits Municipal Airport, CA indicated in this preamble as being RWY 34 SIAP at Ells Field-Willits (Lat. 39°27′03″N, long. 123°22′12″W) available in the docket, will become part Municipal Airport, Willits, CA. Class E That airspace extending upward from 700 of this docket and will be available for airspace designations are published in feet above the surface within a 6.3-mile inspection or copying at Marine Safety paragraph 6005 of FAA Order 7400.9G radius of the Ells Field-Willits Municipal Office Providence between 8 am and 3 dated September 1, 1999, and effective Airport and that airspace bounded by a line pm, Monday through Friday, except September 16, 1999, which is beginning at lat. 39°28′00″N, long. Federal holidays. incorporated by reference in 14 CFR 123°30′15″W; to lat. 39°48′30″N, long ° ′ ″ ° ′ ″ FOR FURTHER INFORMATION CONTACT: 71.1 The Class E airspace designation 123 42 00 W; to lat. 39 53 30 W, long. CWO John W. Winter at Marine Safety 123°28′30″W; to lat. 39°25′53″N, long. listed in this document would be Office Providence, (401) 435–2335. published subsequently in this Order. 123°14′13″W, thence clockwise along the 6.3- The FAA has determined that this mile radius of the Ells Field-Willits SUPPLEMENTARY INFORMATION: Municipal Airport, to the point of beginning. proposed regulation only involves an Request for Comments established body of technical * * * * * regulations for which frequent and We encourage you to participate in routine amendments are necessary to Issued in Los Angeles, California, on this rulemaking by submitting February 15, 200. keep them operationally current. comments and related material. If you Therefore, this proposed regulation—(1) Dawna J. Vicars, do so, please include your name and Is not a ‘‘significant regulatory action’’ Assistant Manager, Air Traffic Division, address, identify the docket number for under Executive Order 12866; (2) is not Western-Pacific Region. this rulemaking (CGD01 99–198), a ‘‘significant rule’’ under DOT [FR Doc. 00–7000 Filed 3–21–00; 8:45 am] indicate the specific section of this Regulatory Policies and Procedures (44 BILLING CODE 4910±13±M document to which each comment FR 11035; February 26, 1979); and (3) applies, and give the reason for each does not warrant preparation of a comment. Please submit all comments Regulatory Evaluation as the anticipated DEPARTMENT OF TRANSPORTATION and related material in an unbound impact is so minimal. Since this is a format, no larger than 81⁄2 by 11 inches, Coast Guard routine matter that will only affect air suitable for copying. If you would like traffic procedures and air navigation, it to know they reached us, please enclose 33 CFR Part 165 is certified that this proposed rule a stamped, self-addressed postcard or envelope. We will consider all would not have a significant economic [CGD01±99±198] impact on a substantial number of small comments and material received during entities under the criteria of the RIN 2115±AA97 the comment period. We may change Regulatory Flexibility Act. this proposed rule in view of them. Safety Zone: Parade of Tall Ships Public Meeting List of Subjects in 14 CFR Part 71 Newport 2000, Newport, RI Airspace, Incorporation by reference, We do not now plan to hold a public Navigation (air). AGENCY: Coast Guard, DOT. meeting. However, you may submit a ACTION: Notice of proposed rulemaking. request for a meeting by writing to The Proposed Amendment Marine Safety Office Providence at the In consideration of the foregoing, the SUMMARY: The Coast Guard proposes to address under ADDRESSES explaining Federal Aviation Administration establish a temporary moving safety why one would be beneficial. If we proposes to amend 14 CFR part 71 as zone around vessels participating in the determine that one would aid this follows: Newport, RI, parade of Tall Ships on rulemaking, we will hold one at a time July 2, 2000. The proposed moving and place announced by a later notice PART 71ÐDESIGNATION OF CLASS A, safety zone will extend two hundred in the Federal Register. CLASS B, CLASS C, CLASS D, AND (200) yards ahead of the lead vessel to CLASS E AIRSPACE AREAS; two hundred (200) yards astern of the Background and Purpose AIRWAYS; ROUTES; AND REPORTING last vessel in the parade, and two There will be numerous Tall Ships POINTS hundred (200) yards abeam of each and other smaller sailing vessels parading vessel along the designated 1. The authority citation for 14 CFR participating in a parade of sail on parade route. The safety zone is needed part 71 continues to read as follows: Sunday, July 2, 2000, for the Tall Ships to protect each of the Tall Ships, which Newport 2000 celebration. The entire Authority: 49 U.S.C. 106(g), 40103, 40113, will have limited maneuverability, from parade event is scheduled to last 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– damage as well as protect passing and 1963 Comp., p. 389. approximately six hours, beginning at spectator vessels. Entry into this zone 10 a.m. and ending at 4 p.m. The § 71.1 [Amended] will be prohibited unless authorized by parading vessels will transit outbound 2. The incorporation by reference in the Captain of the Port, Providence, from Newport Harbor, then north 14 CFR 71.1 of the Federal Aviation Rhode Island. through the East Passage, Narragansett Administration Order 7400.9G, Airspace DATES: Comments and related material Bay, underneath the Newport Bridge, Designations and Reporting Points, must reach the Coast Guard on or before westward around Gould Island, and dated September 1, 1999, and effective May 8, 2000. then southbound out to sea.

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Discussion of Proposed Rule allowing large commercial traffic to Collection of Information schedule around the event. The Coast Guard proposes this rule to This proposed rule would call for no protect spectator craft, mariners and the Small Entities new collection of information under the Tall Ships themselves from possible Paperwork Reduction Act of 1995 (44 collision while the Tall Ships are Under the Regulatory Flexibility Act U.S.C. 3501–3520). (5 U.S.C. 601–612), we considered making way under sail and have limited Federalism mobility in the channel during the whether this proposed rule would have parade. The entire parade event is a significant economic impact on a We have analyzed this proposed rule scheduled to last approximately six substantial number of small entities. under E.O. 13132 and have determined hours, beginning at 10 am and ending at The term ‘‘small entities’’ comprises that this rule does not have implications 4 pm. The parading vessels will transit small businesses, not-for-profit for federalism under that Order. outbound from Newport Harbor, then organizations that are independently Unfunded Mandates Reform Act north through the East Passage, owned and operated and are not dominant in their fields, and The Unfunded Mandates Reform Act Narragansett Bay, underneath the of 1995 (2 U.S.C. 1531–1538) governs Newport Bridge, westward around governmental jurisdictions with populations of less than 50,000. the issuance of Federal regulations that Gould Island, and then southbound out require unfunded mandates. An to sea. The parade of sail route extends The Coast Guard certifies under 5 unfunded mandate is a regulation that through the East Passage of Narragansett U.S.C. 605(b) that this proposed rule requires a State, local, or tribal Bay and passes through the following would not have a significant economic government or the private sector to points: (see NOAA Charts(s) #13218, impact on a substantial number of small incur direct costs without the Federal 13221, 13223). entities. Government’s having first provided the Latitude Longitude This proposed rule would affect the funds to pay those costs. This proposed following entities, some of which might rule would not impose an unfunded 41.30′18″ N ...... 71.20′58″ W be small entities: the owners or mandate. ′ ″ ′ ″ 41.31 43 N ...... 71.20 00 W operators of vessels intending to transit Taking of Private Property 41.33′29″ N ...... 71.19′14″ W or anchor in a small portion of 41.33′29″ N ...... 71.20′55″ W Narragansett Bay for approximately six This proposed rule would not effect a ′ ″ ′ ″ 41.32 19 N ...... 71.21 12 W hours between the hours of 10 am and taking of private property or otherwise 41.28′45″ N ...... 71.20′45″ W 4 pm on July 2, 2000. have taking implications under E.O. 41.27′44″ N ...... 71.22′24″ W 12630, Governmental Actions and This safety zone would not have a Interference with Constitutionally We feel this proposed rule would give significant economic impact on a Protected Property Rights. the Coast Guard the authority to ensure substantial number of small entities for the safety of all vessels participating in the following reasons. This rule would Civil Justice Reform the parade event as well as spectator be in effect for only approximately 6 This proposed rule meets applicable craft enjoying the event. hours. Recreational vessel traffic could standards in sections 3(a) and 3(b)(2) of pass safely around the safety zone E.O. 12988, Civil Justice Reform, to Regulatory Evaluation through the West passage. Before the minimize litigation, eliminate This proposed rule is not a effective period, we would issue ambiguity, and reduce burden. maritime advisories widely available to ‘‘significant regulatory action’’ under Protection of Children section 3(f) of Executive Order 12866 users of the bay, and this will allow and does not require an assessment of large commercial traffic ample time to We have analyzed this proposed rule potential costs and benefits under schedule around the event. under E.O. 13045, Protection of section 6(a)(3) of that Order. The Office If you think that your business, Children from Environmental Health of Management and Budget has not organization, or governmental Risks and Safety Risks. This rule is not reviewed it under that Order. It is not jurisdiction qualifies as a small entity an economically significant rule and significant under the regulatory policies and that this rule would have a does not concern an environmental risk and procedures of the Department of significant economic impact on it, to health or risk to safety that may Transportation (DOT) (44 FR 11040, please submit a comment (see disproportionately affect children. February 26, 1979). ADDRESSES) explaining why you think it Environment qualifies and how and to what degree We expect the economic impact of The Coast Guard has considered the this rule would economically affect it. this proposed rule to be so minimal that environmental impact of implementing a full Regulatory Evaluation under Assistance for Small Entities this proposed rule and concluded that, paragraph 10e of the regulatory policies under figure 2–1, paragraph 34(g), of and procedures of DOT is unnecessary. Under section 213(a) of the Small Commandant Instruction M16475.lC, This safety zone involves only the Business Regulatory Enforcement this proposed rule is categorically southeast portion of Narragansett Bay Fairness Act of 1996 (Pub. L. 104–121), excluded from further environmental and would shut down the East passage we want to assist small entities in documentation. A ‘‘Categorical to commercial and recreation traffic understanding this proposed rule so that Exclusion Determination’’ is available in during the event. The effect of this they can better evaluate its effects on the docket where indicated under regulation will not be significant them and participate in the rulemaking. ADDRESSES. because this rule would be in effect for If the rule would affect your small only approximately 6 hours, business, organization, or governmental List of Subjects in 33 CFR Part 165 recreational vessel traffic could pass jurisdiction and you have questions Harbors, Marine safety, Navigation safely around the safety zone through concerning its provisions or options for (water), Reports and recordkeeping the West passage, and maritime compliance, please contact CWO John requirements, Security measures, and advisories will be made well in advance W. Winter, telephone (401) 435–2335. Waterways.

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For the reasons discussed in the DEPARTMENT OF TRANSPORTATION because the event is highly publicized, preamble, the Coast Guard proposes to and the shortened comment period will amend 33 CFR part 165 as follows: Coast Guard allow the full 30 day publication requirement prior to the final rule PART 165ÐREGULATED NAVIGATION 33 CFR Part 165 becoming effective. We will consider all AREAS AND LIMITED ACCESS AREAS [CGD01±99±197] comments and material received during the comment period. We may change 1. The authority citation for part 165 RIN 2115±AA97 this proposed rule in view of them. continues to read as follows: Safety Zone: Fireworks Display, Naval Public Meeting Authority: 33 U.S.C. 1231; 50 U.S.C. 191; Station Newport, Newport, RI 33 CFR 1.05(g), 6.04–1, 6.04–6 and 160.5; 49 We do not now plan to hold a public CFR 1.46. AGENCY: Coast Guard, DOT. meeting. However, you may submit a ACTION: Notice of proposed rulemaking. 2. Add temporary § 165.T01–198 to request for a meeting by writing to Marine Safety Office Providence at the read as follows: SUMMARY: The Coast Guard proposes to address under ADDRESSES explaining establish a safety zone within a five § 165.T01±198 Safety Zone: Parade of Tall hundred (500) yard radius of the why one would be beneficial. If we Ships Newport 2000, Rhode Island, Lower determine that one would aid this Narragansett Bay, East Passage. fireworks launching site at Naval Station Newport, Newport, RI on June rulemaking, we will hold one at a time (a) Location. A moving safety zone 30, 2000. The safety zone is needed to and place announced by a later notice 200 yards ahead of the lead vessel in the safeguard the public from possible in the Federal Register. parade, 200 yards astern of the last hazards associated with a fireworks Background and Purpose vessel in the parade, and 200 yards display. Entry into this zone will be abeam of each vessel participating in the prohibited unless authorized by the The safety zone is needed to protect Tall Ships Newport 2000 parade of sail. Captain of the Port, Providence, Rhode the public from debris and other The parade of sail route extends through Island. hazards associated with fireworks the East Passage of Narragansett Bay and DATES: Comments and related material display at Naval station Newport, passes through the following points: must reach the Coast Guard on or before starting at 8 p.m. on June 30. The event (see NOAA Charts(s) #13218, 13221, May 8, 2000. will last approximately 3 hours. 13223) ADDRESSES: You may mail comments Discussion of Proposed Rule and related material to Marine Safety Latitude Longitude Office Providence, 20 Risho Avenue, The Coast Guard proposes this rule to 41.30′18″ N ...... 71.20′58″ W East Providence, Rhode Island 02914. protect mariners and spectator crafts 41.31′43″ N ...... 71.20′00″ W The Prevention Department maintains from falling debris and possible fire 41.33′29″ N ...... 71.19′14″ W the public docket for this rulemaking. hazards related to fireworks displays. 41.33′29″ N ...... 71.20′55″ W Comments and material received from The event is scheduled to start at 8 p.m. 41.32′19″ N ...... 71.21′12″ W the public, as well as documents and last approximately 3 hours. This 41.28′45″ N ...... 71.20′45″ W indicated in this preamble as being proposed rule would give the Coast 41.27′44″ N ...... 71.22′24″ W available in the docket, will become part Guard the authority to ensure the safety of this docket and will be available for of all spectator vessels enjoying the inspection or copying at Marine Safety event. (b) Effective period. Paragraph (a) of Office Providence between 8 am and 3 this section is effective between 10 a.m. pm, Monday through Friday, except Regulatory Evaluation and 4 p.m. on Sunday, July 2, 2000. Federal holidays. Departure time is dependent on the tide, This proposed rule is not a FOR FURTHER INFORMATION CONTACT: weather and granting of authority for ‘‘significant regulatory action’’ under departure by the Captain of the Port, CWO John W. Winter at Marine Safety section 3(f) of Executive Order 12866 Providence. Office Providence, (401) 435–2335. and does not require an assessment of SUPPLEMENTARY INFORMATION: potential costs and benefits under (c) Regulations. (1) The general regulations governing safety zones Request for Comments section 6(a)(3) of that Order. The Office contained in 33 CFR 165.23 apply. of Management and Budget has not We encourage you to participate in reviewed it under that Order. It is not (2) All persons and vessels shall this rulemaking by submitting significant under the regulatory policies comply with the instructions of the comments and related material. If you and procedures of the Department of Coast Guard Captain of the Port or the do so, please include your name and Transportation (DOT) (44 FR 11040, designated on-scene-patrol personnel. address, identify the docket number for February 26, l979). These personnel comprise this rulemaking (CGD01 99–197), commissioned, warrant, and petty indicate the specific section of this We expect the economic impact of officers of the Coast Guard. Upon being document to which each comment this proposed rule to be so minimal that hailed by siren, radio, flashing light, or applies, and give the reason for each a full Regulatory Evaluation under other means, the operator of the vessel comment. Please submit all comments paragraph 10e of the regulatory policies shall process as directed. and related material in an unbound and procedures of DOT is unnecessary. format, no larger than 81⁄2 by 11 inches, This safety zone involves a very small Dated: March 6, 2000. suitable for copying. If you would like area of Narragansett Bay. The effect of Peter A. Popko, to know they reached us, please enclose this regulation will not be significant Captain, U.S. Coast Guard, Captain of the a stamped, self-addressed postcard or due to the lateness of the hour; all vessel Port, Marine Safety Office Providence. envelope. The comment period for this traffic may safely transit around this [FR Doc. 00–7104 Filed 3–21–00; 8:45 am] proposed rule is 45 days. This time safety zone; and the extensive maritime BILLING CODE 4910±15±U period is adequate to allow input advisories that will be made.

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Small Entities that this rule does not have implications Authority: 33 U.S.C. 1231; 50 U.S.C. 191; for federalism under that Order. 33 CFR 1.05(g), 6.04–1, 6.04–6 and 160.5; 49 Under the Regulatory Flexibility Act CFR 1.46. (5 U.S.C. 601–612), we considered Unfunded Mandates Reform Act whether this proposed rule would have 2. Add temporary § 165.T01–197 to a significant economic impact on a The Unfunded Mandates Reform Act read as follows: substantial number of small entities. of 1995 (2 U.S.C. 1531–1538) governs the issuance of Federal regulations that § 165.T01±197 Safety Zone: Fireworks The term ‘‘small entities’’ comprises Display, Naval Station Newport, Newport, small businesses, not-for-profit require unfunded mandates. An Rhode Island. unfunded mandate is a regulation that organizations that are independently (a) Location. All waters within a five owned and operated and are not requires a State, local, or tribal government or the private sector to hundred (500) yard radius of the dominant in their fields, and fireworks launching platform located governmental jurisdictions with incur direct costs without the Federal Government’s having first provided the approximately 300 yards off shore from populations of less than 50,000. Coasters Island, Naval Station Newport, The Coast Guard certifies under 5 funds to pay those costs. This proposed rule would not impose an unfunded Newport, Rhode Island. U.S.C. 605(b) that this proposed rule (b) Effective Period. This section is mandate. would not have a significant economic effective from 8 p.m. until 11 p.m. on impact on a substantial number of small Taking of Private Property June 30, 2000, unless extended or entities. terminated sooner by the Captain of the This proposed rule would affect the This proposed rule would not effect a taking of private property or otherwise Port Providence. following entities, some of which might (c) Regulations. (1) The general have taking implications under E.O. be small entities: the owners or regulations governing safety zones 12630, Governmental Actions and operators of vessels intending to transit contained in 33 CFR 165.23 apply. or anchor in a portion of Narragansett Interference with Constitutionally (2) All persons and vessels shall Bay from 8 p.m. to 11 p.m. on June 30, Protected Property Rights. comply with the instructions of the 2000. Civil Justice Reform Coast Guard Captain of the Port or the This safety zone would not have a designated on-scene patrol personnel. This proposed rule meets applicable significant economic impact on a These personnel comprise standards in sections 3(a) and 3(b)(2) of substantial number of small entities for commissioned, warrant, and petty E.O. 12988, Civil Justice Reform, to the following reasons. This rule would officers of the Coast Guard. Upon being minimize litigation, eliminate be in effect for only three hours and hailed by a U.S. Coast Guard vessel by ambiguity, and reduce burden. vessel traffic could pass safely around siren, radio, flashing light, or other the safety zone. Before the effective Protection of Children means, the operator of a vessel shall period, we would issue maritime proceed as directed. advisories widely available to users of We have analyzed this proposed rule Narragansett Bay. under E.O. 13045, Protection of Dated: March 6, 2000. If you think that your business, Children from Environmental Health Peter A. Popko, organization, or governmental Risks and Safety Risks. This rule is not Captain, U.S. Coast Guard, Captain of the jurisdiction qualifies as a small entity an economically significant rule and Port, Marine Safety Office Providence. and that this rule would have a does not concern an environmental risk [FR Doc. 00–7060 Filed 3–22–00; 8:45 am] significant economic impact on it, to health or risk to safety that may BILLING CODE 4910±15±U please submit a comment (see disproportionately affect children. ADDRESSES) explaining why you think it Environment qualifies and how and to what degree ENVIRONMENTAL PROTECTION this rule would economically affect it. The Coast Guard has considered the AGENCY environmental impact of implementing Assistance for Small Entities this proposed rule and concluded that, 40 CFR Part 52 Under section 213(a) of the Small under figure 2–1, paragraph 34(g), of [CA 224±0213b; FRL±6549±8] Business Regulatory Enforcement Commandant Instruction M16475.lC, Fairness Act of 1996 (Pub. L. 104–121), this proposed rule is categorically Approval and Promulgation of we want to assist small entities in excluded from further environmental Implementation Plans; California State understanding this proposed rule so that documentation. A ‘‘Categorical Implementation Plan Revision, they can better evaluate its effects on Exclusion Determination’’ is available in Monterey Bay Unified Air Pollution them and participate in the rulemaking. the docket where indicated under Control District, San Joaquin Unified If the rule would affect your small ADDRESSES. Air Pollution Control District, Santa business, organization, or governmental List of Subjects in 33 CFR Part 165 Barbara County Air Pollution Control jurisdiction and you have questions District, South Coast Air Quality Air concerning its provisions or options for Harbors, Marine safety, Navigation Management District compliance, please contact CWO John (water), Reports and recordkeeping W. Winter, telephone (401)435–2335. requirements, Security measures, and AGENCY: Environmental Protection Waterways. Agency (EPA). Collection of Information For the reasons discussed in the ACTION: Proposed rule. This proposed rule would call for no preamble, the Coast Guard proposes to SUMMARY: EPA proposes to approve new collection of information under the amend 33 CFR part 165 as follows: Paperwork Reduction Act of 1995 (44 revisions to the California State U.S.C. 3501–3520). PART 165ÐREGULATED NAVIGATION Implementation Plan (SIP) which AREAS AND LIMITED ACCESS AREAS concern the control of volatile organic Federalism compound (VOC) emissions from wood We have analyzed this proposed rule 1. The authority citation for part 165 product and wood panelling coating under E.O. 13132 and have determined continues to read as follows: operations.

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The intended effect of this action is to Products Coating Operations; Santa ADDRESSES: Written comments should regulate emissions of VOCs according to Barbara County Air Pollution Control be addressed to Christine Lemme the requirements of the Clean Air Act, District (SBCAPCD) Rule 351—Surface (OAQ–107), Office of Air Quality, at the as amended in 1990 (CAA or the Act). Coating of Wood Products; South Coast EPA Regional Office listed below. In the Final Rules Section of this Air Quality Management District Copies of the state submittal are Federal Register, the EPA is approving (SCAQMD) Rule 1104—Wood Flat Stock available at the following addresses for the state’s SIP submittal as a direct final Coating Operations. These rules were inspection during normal business rule without prior proposal because the submitted by the California Air hours. The interested persons wanting Agency views this as a noncontroversial Resources Board (CARB) to EPA on to examine these documents should revision and anticipates no adverse these respective dates: March 23, 1988; make an appointment with the comments. A detailed rationale for this February 16, 1999; May 13, 1999; and, appropriate office at least 24 hours approval is set forth in the direct final October 29, 1999. before the visiting day. Environmental rule. If no adverse comments are For further information, please see the Protection Agency, Region 10, Office of received, no further activity is information provided in the direct final Air Quality, 1200 6th Avenue, Seattle, contemplated. If EPA receives adverse action that is located in the rules section WA 98101 and the Oregon Department comments, the direct final rule will be of this Federal Register. of Environmental Quality, 811 SW Sixth withdrawn and all public comments Dated: February 15, 2000. Avenue, Portland, Oregon 97204–1390. received will be addressed in a Laura Yoshii, FOR FURTHER INFORMATION CONTACT: subsequent final rule based on this Acting Regional Administrator, Region IX. Wayne Elson, Office of Air Quality, proposed rule. The EPA will not [FR Doc. 00–6973 Filed 3–21–00; 8:45 am] (OAQ–107), EPA, 1200 6th Avenue, institute a second comment period. Any Seattle, WA 98101, (206) 553–1463. BILLING CODE 6560±50±P parties interested in commenting should SUPPLEMENTARY INFORMATION: For do so at this time. additional information, see the Direct DATES: Written comments must be ENVIRONMENTAL PROTECTION Final rule which is located in the Rules received by April 21, 2000. AGENCY section of this Federal Register. ADDRESSES: Comments should be Dated: February 22, 2000. addressed to: Andrew Steckel, 40 CFR Part 52 Chuck Findley, Rulemaking Office (AIR–4), Air [OR73±7288±b; FRL±6544±5] Division, U.S. Environmental Protection Acting Regional Administrator, Region 10. [FR Doc. 00–6970 Filed 3–21–00; 8:45 am] Agency, Region IX, 75 Hawthorne Approval and Promulgation of State Street, San Francisco, CA 94105–3901. Implementation Plans: Oregon BILLING CODE 6560±50±P Copies of the rule revisions and EPA’s evaluation report of each rule are AGENCY: Environmental Protection available for public inspection at EPA’s Agency (EPA). ENVIRONMENTAL PROTECTION Region 9 office during normal business ACTION: Proposed rule. AGENCY hours. Copies of the submitted rule 40 CFR Part 52 revisions are also available for SUMMARY: The Environmental Protection inspection at the following locations: Agency (EPA) approves various California Air Resources Board, revisions to Oregon’s State [CA 214±0191; FRL±6563±2] Stationary Source Divison, Rule Implementation Plan (SIP). This Approval and Promulgation of Evaluation Section, 2020 ‘‘L’’ Street, revision to the SIP was submitted to Implementation Plans; California State Sacramento, CA 95812; EPA, dated October 8, 1998. Monterey Bay Unified Air Pollution The revised regulations include Implementation Plan Revision; Kern Control District, 24580 Silver Cloud Transportation Conformity (OAR 340– County Air Pollution Control District Court, Monterey, CA 93940; 020–710 through 340–020–1080) and AGENCY: Environmental Protection San Joaquin Unified Air Pollution General Conformity OAR–020–1500 Agency (EPA). Control District, 1999 Tuolumne Street, through 340–020–1590). In the Final ACTION: Proposed rule. Suite 200, Fresno, CA 93721; Rules section of this Federal Register, Santa Barbara County Air Pollution the EPA is approving the State’s SIP SUMMARY: EPA is proposing a limited Control District 26 Castilian Drive, Suite submittal as a direct final rule without approval and a simultaneous limited B–23, Goleta, CA 93117; and, prior proposal because the Agency disapproval of revisions to the South Coast Air Quality Management views this as a noncontroversial California State Implementation Plan District, 218 East Copley Drive, submittal amendment and anticipates (SIP) for the Kern County Air Pollution Diamond Bar, CA 91765. no adverse comments. A detailed Control District (KCAPCD). The FOR FURTHER INFORMATION CONTACT: rationale for the approval is set forth in revisions concern Rule 427, stationary Jerald S. Wamsley, Rulemaking Office, the direct final rule. If no adverse piston engines, for the control of oxides (AIR–4), Air Division, U.S. comments are received in response to of nitrogen (NOX) emissions. Environmental Protection Agency, this action, no further activity is The intended effect of proposing Region 9, 75 Hawthorne Street, San contemplated. If the EPA receives limited approval and a simultaneous Francisco, CA 94105–3901, Telephone: adverse comments, the direct final rule limited disapproval of the rule is to (415) 744–1226. will be withdrawn and all public regulate emissions of NOX in SUPPLEMENTARY INFORMATION: This comments received will be addressed in accordance with the requirements of the document concerns the following local a subsequent final rule based on this Clean Air Act, as amended in 1990 district rules: Monterey Bay Unified Air proposed rule. The EPA will not (CAA or the Act). EPA’s final action on Pollution Control District (MBUAPCD) institute a second comment period. Any the proposed rule will incorporate the Rule 429—Applications of parties interested in commenting on this rule into the federally approved SIP. Nonarchitectural Coatings; San Joaquin action should do so at this time. EPA has evaluated the rule and is Valley Unified Air Pollution Control DATES: Written comments must be proposing a limited approval and a District (SJVUAPCD) Rule 4606—Wood received in writing by April 21, 2000. simultaneous limited disapproval under

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The Action rulemaking authority because these November 25, 1992, action should be In determining the approvability of a revisions do not fully meet the CAA referred to for further information on the NOX rule, EPA must evaluate the rule provisions regarding plan submissions NOX requirements. for consistency with the requirements of and requirements for nonattainment Section 182(f) of the Clean Air Act the CAA and EPA regulations, as found areas. requires States to apply the same in section 110 and part D of the CAA DATES: Comments must be received on requirements to major stationary sources and 40 CFR part 51 (Requirements for or before April 21, 2000. of NOX (‘‘major’’ as defined in section Preparation, Adoption, and Submittal of ADDRESSES: Comments may be mailed 302 and sections 182(c), (d), and (e)) as Implementation Plans). Among those to: Andrew Steckel, Rulemaking Office, are applied to major stationary sources provisions is the requirement that a AIR–4, Air Division, U.S. of volatile organic compounds (VOCs), NOX rule must, at a minimum, provide Environmental Protection Agency, in moderate or above ozone for the implementation of RACT for stationary sources of NO emissions. Region IX, 75 Hawthorne Street, San nonattainment areas. KCAPCD is X The EPA interpretation of these Francisco, CA 94105–3901. classified as serious;1 therefore this area requirements, which forms the basis for Copies of the rule and EPA’s is subject to the RACT requirements of evaluation report of the rule are today’s action, appears in the NOX section 182(b)(2) and the November 15, Supplement (57 FR 55620) and various available for public inspection at EPA’s 1992 deadline cited below. Region IX office during normal business other EPA policy guidance documents.3 hours. Copies of the submitted rule is Section 182(b)(2) requires submittal of For the purpose of assisting State and also available for inspection at the RACT rules for major stationary sources local agencies in developing NOX RACT following locations: of VOC (and NOX) emissions (not rules, EPA prepared the NOX Environmental Protection Agency, Air covered by a pre-enactment control Supplement to the General Preamble. In Docket (6102), 401 ‘‘M’’ Street, S.W., technologies guidelines (CTG) the NOX Supplement, EPA provides Washington, D.C. 20460 document or a post-enactment CTG preliminary guidance on how RACT California Air Resources Board, document) by November 15, 1992. will be determined for stationary Stationary Source Division, Rule There were no NOX CTGs issued before sources of NOX emissions. While most Evaluation Section, 2020 ‘‘L’’ Street, enactment and EPA has not issued a of the guidance issued by EPA on what constitutes RACT for stationary sources Sacramento, CA 95812 CTG document for any NOX sources Kern County Air Pollution Control since enactment of the CAA. The RACT has been directed towards application for VOC sources, much of the guidance District, 2700 ‘‘M’’ Street, Suite 302, rule covering NOX sources and Bakersfield, CA 93301 submitted as SIP revisions require final is also applicable to RACT for stationary sources of NOX (see section 4.5 of the FOR FURTHER INFORMATION CONTACT: Ed installation of the actual NOX controls Addison, Rulemaking Office, AIR–4, Air as expeditiously as practicable, but no NOX Supplement). In addition, pursuant Division, U.S. Environmental Protection later than May 31, 1995. to section 183(c), EPA is issuing Agency, Region IX, 75 Hawthorne alternative control technique documents This document addresses EPA’s (ACTs), that identify alternative controls Street, San Francisco, CA 94105–3901, proposed action for Kern County Air Telephone: (415) 744–1160. for all categories of stationary sources of Pollution Control District (KCAPCD), NOX. The ACT documents will provide SUPPLEMENTARY INFORMATION: Rule 427, Stationary Piston Engines information on control technology for I. Applicability (Oxides of Nitrogen), adopted by the stationary sources that emit or have the KCAPCD, on July 2, 1998. The State of The rule being proposed for limited potential to emit 25 tons per year or California submitted Rule 427 to EPA on approval and a simultaneous limited more of NOX. However, the ACTs will August 21, 1998. Rule 427 was found to disapproval into the California SIP is not establish a presumptive norm for be complete on October 2, 1998, Kern County Air Pollution Control what is considered RACT for stationary District (KCAPCD) Rule 427, Stationary pursuant to EPA’s completeness criteria sources of NOX. Piston Engines (Oxides of Nitrogen). that are set forth in 40 CFR part 51, In addition, the California Air 2 Rule 427 was submitted by the State of appendix V. Resources Board (CARB) is developing a guidance document entitled, ‘‘Proposed California to EPA on August 21, 1998. NOX emissions contribute to the production of ground level ozone and Determination of Reasonably Available II. Background Control Technology and Best Available smog. KCAPCD Rule 427 specifies NOX On November 15, 1990, the Clean Air emission standards and was originally Retrofit Control Technology for Act Amendments of 1990 were enacted. adopted as part of KCAPCD’s effort to Stationary Internal Combustion Engines,’’ Dec. 3, 1997. EPA has used Public Law 101–549, 104 Stat. 2399, achieve the National Ambient Air CARB’s proposed RACT Determination, codified at 42 U.S.C. 7401–7671q. The Quality Standard (NAAQS) for ozone, dated Dec. 3, 1997, in evaluating Rule air quality planning requirements for and in response to the CAA 427, for consistency with the CAA’s the reduction of NOX emissions through requirements cited above. The following RACT requirements while awaiting a reasonably available control technology is EPA’s evaluation and proposed action final determination. In general, the (RACT) are set out in section 182(f) of for the rule. the Clean Air Act. guidance documents cited above, as On November 25, 1992, EPA well as other relevant and applicable 1 KCAPCD retained its designation of guidance documents, have been set published a proposed rule entitled, nonattainment and was classified by operation of ‘‘State Implementation Plans; Nitrogen law pursuant to sections 107(d) and 181(a) upon the forth to ensure that submitted NOX Oxides Supplement to the General date of enactment of the CAA. See 55 FR 56694 Preamble; Clean Air Act Amendments (November 6, 1991). 3 ‘‘Issues Relating to VOC regulation Cutpoints, 2 EPA adopted the completeness criteria on Deficiencies, and Deviation, Clarification to of 1990 Implementation of Title I; February 16, 1990 (55 FR 5830) and, pursuant to Appendix D of November 24, 1987 Federal Register Proposed Rule,’’ (the NOX Supplement) section 110(k)(1)(A) of the CAA, revised the criteria document’’ (Blue Book) (notice of availability was which describes and provides on August 26, 1991 (56 FR 42216). published in the Federal Register on May 25, 1988).

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RACT rules meet Federal RACT C.1: The extended compliance test disapproval. Moreover, the final requirements and are fully enforceable schedule: Allows for once every two disapproval triggers the Federal and strengthen or maintain the SIP. years instead of annual source testing. implementation plan (FIP) requirement There is currently a January 25, 1996, To ensure enforceability of the emission under section 110(c). It should be noted version of Rule 427, Stationary Piston limits and early identification of that the rule covered by this document Engines (Oxides of Nitrogen), in the SIP. violations, the frequency of source has been adopted by the Kern County Submitted Rule 427 includes the testing should be increased to once Air Pollution Control District and is following provisions: every 8760 hours of operation or every currently in effect in the Kern County • General provisions including two years, whichever is shorter, as Air Pollution Control District. EPA’s applicability, exemptions, and recommended in the proposed CARB final disapproval action will not prevent definitions. RACT Determination. the Kern County Air Pollution Control • Exhaust emissions standards for C.2.d: Group testing of engines: This District or EPA from enforcing the rule. provision relaxes the general oxides of nitrogen (NOX). IV. Administrative Requirements • Compliance and monitoring requirement to annually test each requirements including compliance affected engine by allowing testing of a A. Executive Order 12866 schedule, reporting requirements, representative sample of engines. Such representative sampling provisions must The Office of Management and Budget monitoring and recordkeeping, and test (OMB) has exempted this regulatory methods. be carefully designed to assure consistency with RACT and action from Executive Order 12866, Submitted Rule 427 contains the Regulatory Planning and Review. following significant modifications from enforceability requirements of the Act. the 1996 version: We believe that addition of the B. Executive Order 12875 • Exempts low use rate engines. following elements to the representative sampling requirements of the rule Under Executive Order 12875, • Allows and clarifies representative Enhancing the Intergovernmental engine testing. would assure consistency with enforceability and RACT requirements. Partnership, EPA may not issue a • Clarifies recordkeeping • The EPA policy provisions require, regulation that is not required by statute requirements. among other things, a 10 percent (%) or and that creates a mandate upon a State, Rules submitted to EPA for approval greater reduction in emissions for each local or tribal government, unless the as revisions to the SIP must be fully individual engine beyond the emission Federal government provides the funds enforceable, must maintain or limits established in compliance with necessary to pay the direct compliance strengthen the SIP and must conform section V. costs incurred by those governments, or with EPA policy in order to be approved • The number of engines tested EPA consults with those governments. If by EPA. When reviewing rules for SIP should be the greater of either one EPA complies by consulting, Executive approvability, EPA evaluates engine, or one third of all identical Order 12875 requires EPA to provide to enforceability elements such as test engines in the group. The engines must the Office of Management and Budget a methods, recordkeeping, and be rotated in such a way that all engines description of the extent of EPA’s prior compliance testing in addition to RACT are tested in a three year period. consultation with representatives of guidance regarding emission limits. A detailed discussion of these affected State, local and tribal EPA has evaluated Kern County Air deficiencies can be found in the governments, the nature of their Pollution Control District Rule 427 for Technical Support Document for Rule concerns, copies of any written consistency with the CAA, EPA 427, dated December 1, 1999, which is communications from the governments, regulations, and EPA policy and has available from the U.S. EPA, Region IX and a statement supporting the need to found that KCAPCD Rule 427 contains office. Because of these deficiencies, issue the regulation. In addition, the following deficiencies, which must EPA cannot grant approval of the rule Executive Order 12875 requires EPA to be corrected pursuant to the section under section 110(k)(3) and part D. In develop an effective process permitting 182(a)(2)(A) requirement of part D of the order to strengthen the SIP, EPA is elected officials and other CAA. proposing a limited approval and a representatives of State, local and tribal Section V: Engines between 50 and simultaneous limited disapproval of governments ‘‘to provide meaningful 250 bhp are not subject to NOX emission KCAPCD’s submitted Rule 427 under and timely input in the development of limits or testing requirements. Since sections 110(k)(3) and 301(a) of the CAA regulatory proposals containing such engines can easily emit at least 25 because it contains deficiencies which significant unfunded mandates.’’ tons per year of NOX (the major source must be corrected in order to fully meet Today’s rule does not create a mandate threshold for KACPCD), this rule does the requirements of sections 182(a)(2), on State, local or tribal governments. not fulfill the CAA section 182 182(b)(2), 182(f), of part D of the CAA. The rule does not impose any requirement to implement RACT for all Under section 179(a)(2), if the enforceable duties on these entities. major sources. Although a similar Administrator disapproves a submission Accordingly, the requirements of version of section V was previously under section 110(k) for an area section 1(a) of Executive Order 12875 approved into the SIP, it needs to be designated nonattainment, based on the does not apply to this rule. modified to implement RACT. Emission submission’s failure to meet one or more limits should be included for engines of the elements required by the Act, the C. Executive Order 13045 larger than 50 bhp (as exist, for example, Administrator must apply one of the Protection of Children from in analogous rules in other California sanctions set forth in section 179(b) Environmental Health Risks and Safety Districts) and groups of smaller engines unless the deficiency has been corrected Risks (62 FR 19885, April 23, 1997), that total 25 tons per year of NOX within 18 months of such disapproval. applies to any rule that: (1) Is emissions. Annual NOX emission tests Section 179(b) provides two sanctions determined to be ‘‘economically and operational non-resettable totalizing available to the Administrator: highway significant’’ as defined under Executive time or fuel meters should also be funding and offsets. The 18 month Order 12866, and (2) concerns an required. period referred to in section 179(a) will environmental health or safety risk that Section VIII: begin on the effective date of EPA’s final EPA has reason to believe may have a

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 15290 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules disproportionate effect on children. If entities because SIP approvals under Dated: March 10, 2000. the regulatory action meets both criteria, section 110 and subchapter I, part D of Felicia Marcus, the Agency must evaluate the the Clean Air Act do not create any new Regional Administrator, Region IX. environmental health or safety effects of requirements but simply approve [FR Doc. 00–7125 Filed 3–21–00; 8:45 am] the planned rule on children, and requirements that the State is already BILLING CODE 6560±50±P explain why the planned regulation is imposing. Therefore, because the preferable to other potentially effective Federal SIP approval does not create and reasonably feasible alternatives any new requirements, I certify that this DEPARTMENT OF TRANSPORTATION considered by the Agency. The rule is action will not have a significant not subject to Executive Order 13045 economic impact on a substantial Research and Special Programs because it does not involve decisions number of small entities. Moreover, due Administration intended to mitigate environmental to the nature of the Federal-State health or safety risks. relationship under the Clean Air Act, 49 CFR Parts 190, 191, 192, and 195 D. Executive Order 13084 preparation of flexibility analysis would constitute Federal inquiry into the [Docket No. RSPA±99±6106] Under Executive Order 13084, economic reasonableness of state action. RIN 2137±AD35 Consultation and Coordination with The Clean Air Act forbids EPA to base Indian Tribal Governments, EPA may its actions concerning SIPs on such not issue a regulation that is not Pipeline Safety: Periodic Updates to grounds. Union Electric Co., v. U.S. Pipeline Safety Regulations (1999) required by statute, that significantly or EPA, 427 U.S. 246, 255–66 (1976); 42 uniquely affects the communities of U.S.C. 7410(a)(2). AGENCY: Research and Special Programs Indian tribal governments, and that Administration (RSPA), DOT. imposes substantial direct compliance F. Unfunded Mandates ACTION: Notice of proposed rulemaking. costs on those communities, unless the Under section 202 of the Unfunded Federal government provides the funds SUMMARY: This proposed rule is part of necessary to pay the direct compliance Mandates Reform Act of 1995 (‘‘Unfunded Mandates Act’’), signed a periodic effort by RSPA to revise and costs incurred by the tribal update the pipeline safety regulations to governments, or EPA consults with into law on March 22, 1995, EPA must prepare a budgetary impact statement to improve clarity, ensure consistency, and those governments. If EPA complies by remove unnecessary requirements on consulting, Executive Order 13084 accompany any proposed or final rule that includes a Federal mandate that the regulated pipeline community. requires EPA to provide to the Office of Revisions include incorporation by Management and Budget, in a separately may result in estimated annual costs to State, local, or tribal governments in the reference of the most recent editions of identified section of the preamble to the voluntary consensus standards and rule, a description of the extent of EPA’s aggregate; or to private sector, of $100 million or more. Under section 205, specifications to enable pipeline prior consultation with representatives operators to utilize current technology, of affected tribal governments, a EPA must select the most cost-effective and least burdensome alternative that materials, and practices. This document summary of the nature of their concerns, also proposes to increase the pressure and a statement supporting the need to achieves the objectives of the rule and is consistent with statutory limitation for new thermoplastic pipe, issue the regulation. In addition, to allow plastic pipe on bridges, to Executive Order 13084 requires EPA to requirements. Section 203 requires EPA to establish a plan for informing and clarify welding requirements, to revise develop an effective process permitting the definition of hazardous liquid elected officials and other advising any small governments that may be significantly or uniquely pipeline accident, and to make representatives of Indian tribal numerous minor clarifications. governments ‘‘to provide meaningful impacted by the rule. DATES: and timely input in the development of EPA has determined that the approval Comments on the subject of this regulatory policies on matters that action promulgated does not include a proposed rule must be received on or significantly or uniquely affect their Federal mandate that may result in before May 22, 2000. communities.’’ Today’s rule does not estimated annual costs of $100 million ADDRESSES: Comments should reference significantly or uniquely affect the or more to either State, local, or tribal Docket No. RSPA–99–6106, and be communities of Indian tribal governments in the aggregate, or to the mailed to the Dockets Facility, U.S. governments. Accordingly, the private sector. This Federal action Department of Transportation, Plaza requirements of section 3(b) of approves pre-existing requirements 401, 400 Seventh Street, SW, Executive Order 13084 do not apply to under State or local law, and imposes Washington, DC 20590–0001. You this rule. no new requirements. Accordingly, no should submit the original and one copy. If you wish to receive E. Regulatory Flexibility Act additional costs to State, local, or tribal governments, or to the private sector, confirmation of receipt of your The Regulatory Flexibility Act (RFA) result from this action. comments, you must include a stamped, generally requires an agency to conduct self-addressed postcard. The Dockets a regulatory flexibility analysis of any List of Subjects in 40 CFR Part 52 Facility is open from 10:00 a.m. to 5:00 rule subject to notice and comment Environmental protection, Air p.m., Monday through Friday, except on rulemaking requirements unless the pollution control, Hydrocarbons, Federal holidays. The public may also agency certifies that the rule will not Incorporation by reference, submit or review comments in this have a significant economic impact on Intergovernmental relations, Oxides of docket by accessing the Dockets a substantial number of small entities. nitrogen Ozone, Reporting and record- Management System’s home page at Small entities include small businesses, keeping requirements, Volatile organic http://dms.dot.gov. An electronic copy small not-for-profit enterprises, and compounds. of any rulemaking document or small governmental jurisdictions. The comment may be downloaded from the proposed rule will not have a significant Authority: OPS home page at http://ops.dot.gov or impact on a substantial number of small 42 U.S.C. 7401 et seq. from the Government Printing Office

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Electronic Bulletin Board Service at RSPA’s Office of Pipeline safety (HDB) for pipelines operating at any (202) 512–1661. participates in more than 25 national operating temperature by using the FOR FURTHER INFORMATION CONTACT: voluntary consensus standards arithmetic interpolation procedure in Richard D. Huriaux by telephone at committees. RPSA’s policy is to adopt Part E, Policy for determining long term (202) 366–4565, by fax at (202) 366– voluntary consensus standards when strength (LTHS) by temperature 4566, by e-mail at they are applicable. In recent years, interpolation, of PPI TR–3/2000. This [email protected], or by RSPA has adopted dozens of voluntary will provide gas distribution pipeline mail at U.S. Department of consensus standards into its gas operators with the flexibility to design Transportation, RSPA/Office of Pipeline pipeline, hazardous liquid pipeline, and safe plastic pipeline systems at any Safety, Room 7128, 400 Seventh Street, liquefied natural gas (LNG) regulations. operating temperature. SW, Washington, DC 20590–0001. RSPA has not adopted a government- In addition, RSPA proposes to update Copies of this document or other written standard in lieu of a voluntary the addresses for each of the standards’ material in the docket can be reviewed consensus standard and does not plan to organizations, to correct the numbering by accessing the Docket Management do so in the future. system, and to edit for clarity and System’s home page at http:// RSPA has reviewed the voluntary typographical errors. consensus standards currently referred dms.dot.gov. General information on the Petition to Limit Pressure of to in the pipeline safety regulations and pipeline safety program is available at Thermoplastic Gas Pipe to a Maximum in its appendices, and proposes to adopt the Office of Pipeline Safety web site at of 125 p.s.i.g. the latest editions of the standards that http://ops.dot.gov. are incorporated by reference in 49 CFR On December 10, 1998 and November SUPPLEMENTARY INFORMATION: Parts 192 and 195. The organizations 23, 1999, the American Gas Association Background responsible for producing these (AGA) petitioned RSPA to amend standards often update or revise them to § 192.123 to allow the design pressure This rulemaking is a periodic update incorporate the most current for thermoplastic pipe to be determined of the pipeline safety regulations to technology. by its dimensions and the material’s ensure that the pipeline safety Parts 192 and 195 incorporate by long-term strength as represented by the regulations incorporate the most current reference all or portions of over 60 HDB in accordance with § 192.121 and technical standards and specifications, standards and specifications developed to be limited to a maximum of 862 kPa to improve clarity, consistency, and and published by technical (125 p.s.i.g.) instead of the current accuracy, and to reduce unnecessary organizations, including the American limitation of 689 kPa (100 p.s.i.g.). AGA burdens on the regulated community. Petroleum Institute, American Gas stated that this increase in the pressure In a March 1995 memorandum, Association, American Society of limitation for thermoplastic pipe used President Clinton directed Federal Mechanical Engineers, American in gas distribution systems is clearly regulatory agencies to, among other Society for Testing and Materials, supported by the proven performance of things, conduct a page-by-page review Manufacturers Standardization Society modern polyethylene pipe and the of all agency regulations, cutting or of the Valve and Fittings Industry, successful operation of pipe at greater revising those that were obsolete, National Fire Protection Association, than 100 p.s.i.g. under the authority of intrusive, or better handled by parties and Plastics Pipe Institute. The most waivers granted by state pipeline other than the Federal government (i.e., recent editions of these documents regulators. Further, their position is private business, State, or local represent a consensus on the best supported by laboratory and field government). In response to the current practice and modern technology analysis of the long-term hydrostatic President’s directive, RSPA issued a in the pipeline industry. strength of these piping materials. final rule on May 24, 1996 (61 FR OPS proposes to adopt the most Copies of the AGA petitions are 26121) that updated references to recent editions of the standards into the included in the docket. voluntary specifications and standards. pipeline safety regulations. These are set This proposal would apply only to Subsequently, RSPA issued another forth by name and date in the proposed plastic pipe produced after the effective periodic update on February 17, 1998, amendments to appendices A and B of date of this rule. Existing pipes would to incorporate by reference the latest Part 192 and § 195.3 of Part 195. The continue to be limited to operation at editions of voluntary consensus order and appearance in the CFR of the the 689 kPa (100 p.s.i.g.). RSPA standards and to make corrections and consensus standards has also been proposes to increase the pressure clarifications. RSPA intends to issue updated and clarified. In general, the limitation for thermoplastic pipe to 862 future periodic updates to ensure that only substantive change is reference the kPa (125 p.s.i.g.). the pipeline safety regulations reflect new edition and year of publication. current practice and to improve One entirely new standard is Petition for Rule Change to Allow the compliance by the pipeline industry proposed for incorporation by reference Installation of Plastic Gas Pipe on with safety standards. in the gas pipeline safety regulations. Bridges We propose to adopt the Plastics Pipe In 1993, the Gas Piping Technology Standards Incorporated by Reference Institute, Inc.’s technical Committee (GPTC) petitioned RSPA to The ‘‘National Technology Transfer recommendation, ‘‘Policies and allow the installation of plastic pipe on and Advancement Act of 1995’’ (Public Procedures for Developing Hydrostatic bridges. GPTC is designated as an Law 104–113) directs Federal agencies Design Bases (HDB), Pressure Design American National Standards Institute to use voluntary consensus standards in Bases (PDB), and Minimum Required standards committee for the purpose of lieu of government-written standards Strength (MRS) Ratings for developing and publishing the ‘‘Guide whenever possible. Voluntary Thermoplastic Piping Materials’’ (PPI for Gas Transmission and Distribution consensus standards are standards TR–3/2000). This standard would be Piping Systems’’, to assist natural gas developed or adopted by voluntary referenced in the gas pipeline safety pipeline operators in efforts to comply bodies that develop, establish, or regulations at § 192.121, Design of with Part 192, to comment on proposed coordinate technical standards using plastic pipe. It will provide a method for amendments to Part 192, and to propose agreed-upon procedures. determining hydrostatic design basis amendments to Part 192. RSPA’s Office

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 15292 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules of Pipeline Safety is represented on this Updates in Response to 1104 or Section IX of the ASME Boiler committee. Recommendations on Welding in the and Pressure Vessel Code. However, a GPTC requested that § 192.321 be SIRRC Report welder qualified under an earlier amended to allow the use of plastic pipe In October 1997 the National edition than listed in Appendix A of on bridges provided that the plastic pipe Association of Pipeline Safety this part may weld but may not is: Representatives (NAPSR), the American requalify under that earlier edition.’’ RSPA commits to updating these (1) Protected from mechanical Public Gas Association (APGA), and the American Gas Association (AGA) references to accepted welding damage, such as by installation in a standards in periodic updates of the metallic casing. formed the State Industry Regulatory Review Committee (SIRRC), to discuss regulations, including the inclusion of (2) Installed so that the temperature of differences of opinion on NAPSR’s additional pipeline welding standards the pipe will not exceed the limits proposed gas pipeline safety rule as necessary. specified in § 192.321. changes in Docket No. PS–124. AGA SIRRC also proposed that § 192.241 be (3) Protected from ultraviolet and APGA had proposed to coordinate amended to make clear that visual radiation. discussions between the industry and inspection of welding must be conducted ‘‘by an inspector qualified by In support of its petition the GPTC NAPSR in an attempt to resolve those differences, as well as other items of appropriate training and experience.’’ provided a technical report on RSPA agrees and is proposing that this Installation of Plastic Gas Pipeline mutual interest. NAPSR welcomed the opportunity to work with the industry, change be included in the pipeline Across Bridges, which is available in safety rules. this docket. and passed a resolution in May of 1997 authorizing the NAPSR Liaison Definition of Injury in Part 195 Since 1993, RSPA has granted a Committee to work with the industry number of waivers incorporating the The hazardous liquid pipeline safety representatives on these issues. The regulations at § 195.50 require an GPTC conditions for installation of committee held four formal meetings on plastic pipe across bridges. There is no accident report for any event that this initiative. At each meeting, the includes a release of hazardous liquid record of failure of plastic pipe that has proposed PS–124 recommendations been installed under these waivers. In from a pipeline with: were discussed in-depth to ensure that (1) An explosion or fire not addition, continued progress in the representatives on both sides design, manufacture, and installation of intentionally set by the operator. understood the issues from each of their (2) Loss of 50 or more barrels of plastic pipe have rendered it ever more perspectives. Members of the SIRRC hazardous liquid. fit for broad application in gas pipeline agreed on many of the issues in the (3) Escape to the atmosphere of more systems. proposal (or subsequent modifications than 5 barrels a day of highly volatile RSPA proposes to revise § 192.321 to to the proposal), and agreed to disagree liquids. allow the routine installation of plastic with some of the proposals. A copy of (4) Death of any person. pipe on bridges subject to the conditions the SIRRC Summary Report (April 26, (5) Bodily harm to any person in one suggested by GPTC. 1999) is available in this docket. or more of the following: Although all 39 recommendations in —Loss of consciousness. Confirmation or Revision of MAOP After the SIRRC report will be addressed in a —Necessity to carry the person from the a Change in Class Location subsequent rulemaking in Docket No. scene. PS–124, several of the welding Section 192.611(d) allows 18 months —Necessity for medical treatment. recommendations appear to be —Disability which prevents the for a gas pipeline operator to confirm or noncontroversial and will be dealt with discharge of normal duties or the revise the maximum allowable in this periodic update docket. pursuit of normal activities beyond operating pressure of a pipeline after a Specifically, SIRRC reached a consensus the day of the accident. change in Class Location. A change is that § 192.255(a) should be amended to Class Location occurs when new This means that even the most minor specify that welders must be qualified injury during a pipeline event can result buildings along a pipeline are ready for under ‘‘welding procedures qualified occupancy, not when the operator in the entire accident being reportable if under American Petroleum Institute the person receives any ‘‘medical discovers that there are new buildings (API), American Society of Mechanical or completes its review. The time it treatment’’. The lack of a definition of Engineers (ASME), or other accepted medical treatment means that any kind takes for the operator to determine that pipeline welding standards.’’ RSPA the area has changed its Class Location of treatment, even a bandage applied at agrees that the specific references to the the scene or out-patient services and the time it takes to obtain the two widely accepted pipeline industry required environmental and land-use received at a local clinic could make the welding standards will make clear that accident reportable, even if it does not permits to complete the pressure testing operators should be using accepted to confirm a new MAOP may exhaust meet any of the other requirements for welding standards in pipeline reportability. the current 18 month allowance. In construction and repair. However, we addition, the internal budget process of In contrast, the gas pipeline safety are not aware of any ‘‘other accepted regulations define a reportable gas the pipeline operators may cause further pipeline welding standards’’ that could delay. pipeline event as one that includes a be relied on by an operator for pipeline release of gas from a pipeline with In light of these constraints on welding. In addition, we believe a more (1) A death or personal injury operators and the fact that there have specific citation to the API and ASME requiring in-patient hospitalization, been no pressure-related failures standards is appropriate. (2) Estimated property damage of following class location changes, we Therefore, RSPA proposes to amend $50,000 or more, or propose to increase the allowable time § 192.255(a) to read ‘‘(a) Except as (3) Any event that is significant in the to confirm or revise MAOP after a Class provided in paragraph (b) of this judgment of the operator. Location change from 18 months to 24 section, each welder must be qualified For gas pipelines, an injury treated at months. in accordance with Section 6 of API the scene or at a local clinic would not

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15293 result in the incident being reportable, The proposed language incorporates the distribution of power and unless it meets one of the other this language as a new paragraph responsibilities among the various requirements. § 192.505(d)(3) to ensure that flanges levels of government; RSPA proposes to eliminate the and other components of pipeline (2) Imposes substantial direct reporting criteria discrepancy between systems can safely contain the pressures compliance costs on State and local Parts 192 and 195 to ensure that to which they are subjected in the governments; or accident reporting is uniform for both course of pipeline operations. (3) Preempts state law. gas and hazardous liquid pipelines. The Therefore, the consultation and reporting language in Part 192 was Clarifications, Corrections, and Edits funding requirements of Executive adopted before the language in Part 195 This document revises the pipeline Order 13132 do not apply. and embodies the original intent relative safety regulations to correct language or Executive Order 13084 to the injury criteria for reportability of clarify meaning in a number of sections, pipeline accidents. We do not believe including: The proposed rule has been analyzed that this change would cause any 1. § 190.11—The telephone number in accordance with the principles and reportable hazardous liquid pipeline for Office of Pipeline Safety information criteria contained in Executive Order accidents to become non-reportable. For and assistance would be changed to 13084, ‘‘Consultation and Coordination example, the 1994 San Jacinto River (202) 366–4431. with Indian Tribal Governments.’’ accident would still have been 2. § 190.233—The title of § 190.233 Because the proposed rules would not reportable based on product loss and would be corrected to read ‘‘Corrective significantly or uniquely affect the property damage. action orders.’’ Indian tribal governments, the funding Therefore, RSPA proposes to revise 3. § 191.7—The address for written and consultation requirements of § 195.50 by deleting the existing reports would be changed to Room Executive Order 13084 do not apply. language in paragraph (e) and 7128. Regulatory Flexibility Act substituting the same language used for 4. § 192.3—The definition of gas pipeline events, i.e., ‘‘[a] personal Transmission line would be clarified by This rulemaking will not impose injury necessitating in-patient inserting a new paragraph in subsection additional requirements on pipeline hospitalization.’’ (c) to make clear that the sentence, ‘‘A operators, including small entities that operate regulated pipelines. Rather, the Petition of the GPTC on Strength Test large volume customer may receive proposed rule clarifies parts of the Requirements for Flanges similar volumes of gas as a distribution center, and includes factories, power pipeline safety regulations, incorporates In a November 27, 1996 letter the plants, and institutional users of gas’’, is the most recent editions of voluntary GPTC noted that most gas operators a general comment on the entire consensus standards, and provides ‘‘have assumed that flange definition, and not a modifier of only additional operating flexibility to gas manufacturers test a prototype as item (c). and hazardous liquid pipeline described in 192.505(d)(2).’’ This turns 5. § 195.58—The address for written companies. Thus, this rulemaking may out to be incorrect. Rather, most reports would be revised to correct the reduce costs to operators, including manufacturers meet the requirements by room number to Room 7128. small entities. Based on the facts use of ASME/ANSI B16.5, B16.47, or 6. § 195.440—The paragraph would be available about the expected impact of MSS SP44, which contain standard revised to indicate that the education this rulemaking, I certify, under Section pressure ratings. In addition, flange program required by this section 605 of the Regulatory Flexibility Act (5 manufacturers have developed ratings of includes reporting of hazardous liquid U.S.C. 605), that this rulemaking will nonstandard flanges through unit stress pipeline emergencies to qualified one- not have a significant economic impact calculations as described in § 192.143. call centers, as well as ‘‘the operator or on a substantial number of small GPTC stated that each part of a entities. pipeline must be able to stand the the fire, police, or other appropriate internal gas pressures and other public officials.’’ National Environmental Policy Act mechanical loadings without Rulemaking Analyses We have analyzed the proposed rule impairment of serviceability with unit Executive Order 12866 changes for purposes of the National stresses equivalent to those allowed for Environmental Policy Act (42 U.S.C. comparable material in the pipe. If a This final rule is not a significant 4321 et seq.). Because the changes design based on unit stresses is regulatory action under section 3(f) of would require that alternative repair impractical for a particular pipeline Executive Order 12866 (58 FR 51735) methods be as safe as the methods now component, GPTC suggests that design and, therefore, was not subject to review allowed, we have preliminarily be based on a pressure rating by the Office of Management and determined that the proposed changes established by pressure testing that Budget (OMB). The final rule is not would not significantly affect the component or a prototype of the significant under the Regulatory Policies quality of the human environment. An component. and Procedures of the Department of environmental assessment document is To clarify this situation and ensure Transportation (44 FR 11034). available for review in the docket. that flanges and other components of a pipeline system can safely contain Executive Order 13132 Paperwork Reduction Act anticipated pressures and loadings, The proposed rule has been analyzed There are no new information GPTC urges that we add the following in accordance with the principles and collection requirements in this final paragraph to 192.505(d): (3) Flanges and criteria contained in Executive Order rule. components carrying a pressure rating 13132 (‘‘Federalism’’). This proposed established through ASME/ANSI, MSS rule does not propose any regulation Impact on Business Processes and specification, or by unit strength that: Computer Systems calculations as described in 192.143, (1) Has substantial direct effected on We do not want to impose new General Requirements, do not require a the States, the relationship between the requirements that would mandate strength test.’’ national government and the States, or business process changes when the

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Authority: 49 U.S.C. 5121, 60102, 60103, would not affect organizations’ ability to * * * * * respond to those problems, we are not 60104, 60108, 60117, 60118, and 60124; and 49 CFR 1.53 4. Section 192.123 would be amended proposing to delay the effectiveness of by revising paragraphs (a) introductory 2. Section 191.7 would be amended the requirements. text and (b)(2)(i) and adding paragraph by revising the first sentence to read as (e) to read as follows: Unfunded Mandates Reform Act of 1995 follows: This rule does not impose unfunded § 192.123 Design limitations for plastic § 191.7 Addressee for written reports. mandates under the Unfunded pipe. Each written report required by this Mandates Reform Act of 1995. It does (a) Except as provided in paragraph part must be made to the Information not result in costs of $100 million or (e) of this section, the design pressure Resources Manager, Office of Pipeline more to either State, local, or tribal may not exceed a gauge pressure of 689 Safety, Research and Special Programs governments, in the aggregate, or to the kPa (100 p.s.i.g.) for plastic pipe used Administration, U.S. Department of private sector, and is the least in: Transportation, Room 7128, 400 burdensome alternative that achieves * * * * * the objective of the rule. Seventh Street, SW, Washington, DC 20590. * * * (b) * * * List of Subjects (2) * * * PART 192Ð[AMENDED] (i) For thermoplastic pipe, the 49 CFR Part 190 temperature at which the HDB used in 1. The authority citation for part 192 Administrative practice and the design formula under § 192.121 is continues to read as follows: procedures, Penalties, Pipeline safety. determined. However, if the pipe was Authority: 49 U.S.C. 5103, 60102, 60104, manufactured before May 18, 1978, and 49 CFR Part 191 60108, 60109, 60110, 60113, and 60118; and its HDB was determined at 73°F (23°C), Pipeline safety, Reporting and 49 CFR 1.53. it may be used at temperatures up to recordkeeping requirements. 2. The definition of Transmission line 100°F (38°C). in § 192.3 would be revised to read as 49 CFR Part 192 * * * * * follows: (e) The design pressure for Incorporation by reference, Natural thermoplastic pipe produced after § 192.3 Definitions. gas, Pipeline safety, Reporting and [effective date of final rule] may exceed recordkeeping requirements. * * * * * a gauge pressure of 689 kPa (100 p.s.i.g.) Transmission line means: 49 CFR Part 195 provided that: (1) A pipeline, other than a gathering (1) The design pressure does not Anhydrous ammonia, Carbon dioxide, line, that: exceed 862 kPa (125 p.s.i.g.); (i) Transports gas from a gathering Incorporation by reference, Petroleum, (2) The material is a PE2406 or a line or storage facility to a distribution Pipeline safety, Reporting and PE3408 as specified within ASTM center, storage facility, or large volume recordkeeping requirements. D2513; customer that is not downstream from a In consideration of the foregoing, (3) The pipe size is nominal pipe size distribution center; RSPA proposes to amend 49 CFR Parts (IPS) 12 or less; and (ii) Operates at a hoop stress of 20 190, 191, 192, and 195 as follows: (4) The design pressure is determined percent or more of SMYS; or in accordance with the design equation PART 190Ð[AMENDED] (iii) Transports gas within a storage field. defined in § 192.121. 1. The authority citation for part 190 (2) A large volume customer may 5. Paragraph (a) of § 192.145 would be continues to read as follows: receive similar volumes of gas as a revised to read as follows: Authority: 33 U.S.C. 1321; 49 U.S.C. 5101– distribution center, and includes § 192.145 Valves. 5127, 60101 et seq.; Sec. 212–213, Pub. L. factories, power plants, and institutional (a) Except for cast iron and plastic 104–121, 110 Stat. 857; 49 CFR 1.53. users of gas. valves, each valve must meet the 2. Paragraph (a)(1) of § 190.11 would * * * * * minimum requirements of API 6D. A be amended by revising the last 3. Section 192.121 would be amended valve may not be used under operating sentence to read as follows: by revising the definition for ‘‘S’’ conditions that exceed the applicable following the equation to read as pressure-temperature ratings contained § 190.11 Availability of informal guidance follows: in those requirements. and interpretive assistance. § 192.121 Design of plastic pipe. * * * * * (a) Availability of telephonic and 6. Section 192.225 would be amended Internet assistance. (1) * * * The * * * * * Where: by revising the section heading and telephone number for OPS information paragraph (a) to read as follows: is (202) 366–4431 and the OPS website * * * * * can be accessed via the Internet at http:/ S=For thermoplastic pipe, the HDB § 192.225 Welding procedures. /ops.dot.gov. determined in accordance with the listed specification at a temperature equal to 73°F (a) Welding must be performed by a * * * * * (23 °C), 100°F (38°C), 120°F (49°C), or 140°F qualified welder in accordance with 3. The heading of § 190.233 would be (60°C). In the absence an HDB established at welding procedures qualified under revised to read as follows: the specified temperature, the HDB of a Section 5 of API 1104 or Section IX of

VerDate 202000 12:26 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 E:\FR\FM\22MRP1.SGM pfrm01 PsN: 22MRP1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15295 the ASME Boiler and Pressure Vessel § 192.287 Plastic pipe: Inspection of joints. § 192.614 Damage prevention program. Code. The quality of the test welds used * * * * * * * * * * to qualify the procedure shall be 13. Section 192.321 would be (c) * * * determined by destructive testing. amended by revising paragraph (a) and (5) Provide for temporary marking of * * * * * adding paragraph (h) to read as follows: buried pipelines in the area of 7. Paragraph (a) of § 192.227 would be excavation activity before the activity § 192.321 Installation of plastic pipe. revised to read as follows: begins, except in emergencies. (a) Plastic pipe must be installed § 192.227 Qualification of welders. below ground level except as provided * * * * * (d) A damage prevention program (a) Except as provided in paragraph by paragraphs (g) and (h) of this section. under this section is not required for the (b) of this section, each welder must be * * * * * following pipelines: qualified in accordance with Section 6 (h) Plastic pipe may be installed on (1) Pipelines located offshore. of API 1104 or Section IX of the ASME bridges provided that it is: (2) Pipelines to which access is Boiler and Pressure Vessel Code. (1) Installed with protection from physically controlled by the operators. However, a welder qualified under an mechanical damage, such as installation earlier edition than listed in Appendix in a metallic casing; * * * * * A of this part may weld but may not (2) Protected from ultraviolet (e) Pipelines operated by persons requalify under that earlier edition. radiation; and other than municipalities (including * * * * * (3) Not allowed to exceed the pipe operators of master meter systems) 8. Paragraph (c)(1) of § 192.229 would temperature limits specified in whose primary activity does not include be revised to read as follows: § 192.123. the transportation of gas need not 14. Section 192.505 would be comply with the following: § 192.229 Limitations on welders. amended by revising paragraphs (d)(1), * * * * * * * * * * (d)(2), and (d)(3) to read as follows: 17. Paragraph (b)(2) of § 192.723 (c) * * * would be revised to read as follows: (1) May not weld on pipe to be § 192.505 Strength test requirements for operated at a pressure that produces a steel pipeline to operate at a hoop stress of § 192.723 Distribution systems: Leakage 30 percent or more of SMYS. hoop stress of 20 percent or more of surveys. 1 * * * * * SMYS unless within the preceding 7 ⁄2 * * * * * calendar months, but at least twice each (d) * * * (b) * * * (1) The component was tested to at calendar year, the welder has had one (2) A leakage survey with leak least the pressure required for the weld tested and found acceptable under detector equipment must be conducted pipeline to which it is being added; section 6 or 9 of API 1104, except that outside of business districts as (2) The component was manufactured a welder qualified under an earlier frequently as necessary at intervals not under a quality control system that edition previously listed in Appendix A exceeding 63 months, but at least once ensures that each item manufactured is of this part may weld but may not every 5 calendar years. However, for at least equal in strength to a prototype requalify under that earlier edition; and cathodically unprotected distribution and that the prototype was tested to at lines subject to § 192.465(e) on which * * * * * least the pressure required for the electrical surveys for corrosion are 9. Section 192.241 would be amended pipeline to which it is being added; or by revising paragraph (a) introductory (3) The component carries a pressure impractical, leakage surveys must be text and the last sentence of paragraph rating established through ASME/ANSI, conducted at intervals not exceeding 39 (c) to read as follows: MSS specification, or a pressure rating months, but at least once every 3 calendar years. § 192.241 Inspection and test of welds. established by unit strength calculations as described in § 192.143. 18. Appendix A of Part 192 would be (a) Visual inspection of welding must revised to read as follows: be conducted by an inspector qualified * * * * * by appropriate training and experience 15. Paragraph (d) of § 192.611 would Appendix A to Part 192—Incorporated to ensure that: be revised to read as follows: by Reference * * * * * § 192.611 Change in class location: I. List of Organizations and Addresses (c) * * * However, if a girth weld is Confirmation or revision of maximum A. American Gas Association (AGA), 400 unacceptable under those standards for allowable operating pressure. North Capitol Street, NW, Washington, DC a reason other than a crack, and if * * * * * 20001. Appendix A to API 1104 applies to the (d) Confirmation or revision of the B. American Petroleum Institute (API), weld, the acceptability of the weld may maximum allowable operating pressure 1220 L Street, NW, Washington, DC 20005. be further determined under that that is required as a result of a study C. American Society for Testing and appendix. Materials (ASTM), 100 Barr Harbor Drive, under § 192.609 must be completed West Conshohocken, PA 19428. 10. The heading of § 192.283 would within 24 months of the change in class be revised to read as follows: D. American Society of Mechanical location. Pressure reduction under Engineers (ASME), 3 Park Avenue, New § 192.283 Plastic pipe: Qualifying joining paragraph (a) (1) or (2) of this section York, NY 10016-5990. procedures. within the 24-month period does not E. Manufacturers Standardization Society of the Valve and Fittings Industry, Inc. * * * * * preclude establishing a maximum allowable operating pressure under (MSS), 127 Part Street, NW, Vienna, VA 11. The heading of § 192.285 would 22180. be revised to read as follows: paragraph (a)(3) of this section at a later date. F. National Fire Protection Association § 192.285 Plastic pipe: Qualifying persons 16. Section 192.614 would be (NFPA), 1 Batterymarch Park, P.O. Box 9101, to make joints. amended by republishing paragraph (d) Quincy, MA 02269–9101. * * * * * introductory text and revising G. Plastics Pipe Institute, Inc. (PPI), 1825 12. The heading of § 192.287 would paragraphs (c)(5), (d)(1), (d)(2), and (e) Connecticut Avenue, NW, Suite 680, be revised to read as follows: introductory text to read as follows: Washington, DC 20009.

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II. Documents Incorporated by Reference (3) ASME/ANSI B31G ‘‘Manual for Authority: 49 U.S.C. 5103, 60102, 60104, (Numbers in Parentheses Indicate Applicable Determining the Remaining Strength of 60108, 60109, 60118; and 49 CFR 1.53 Editions) Corroded Pipelines’’ (1991). 2. Section 195.2 would be amended A. American Gas Association (AGA): (4) ASME/ANSI B31.8 ‘‘Gas Transmission and Distribution Piping systems’’ (1995). by adding a definition in alphabetical (1) AGA Pipeline Research Committee, order to read as follows: Project PR–3–805, ‘‘A Modified Criterion for (5) ASME Boiler and Pressure Vessel Code, Section I ‘‘Power Boilers’’ (1998). Evaluating the Remaining Strength of § 195.2 Definitions. Corroded Pipe’’ (December 22, 1989). (6) ASME Boiler and Pressure Vessel Code, B. American Petroleum Institute (API): Section VIII, Division 1 ‘‘Pressure Vessels’’ * * * * * (1) API Specification 5L ‘‘Specification for (1998). Maximum operating pressure (MOP) Line Pipe’’ (42nd edition, 2000) (7) ASME Boiler and Pressure Vessel Code, means the maximum pressure at which (2) API Recommended Practice 5L1 Section VIII, Division 2 ‘‘Pressure Vessels: a pipeline or segment of a pipeline may ‘‘Recommended Practice for Railroad Alternative Rules’’ (1998). be normally operated under this part. (8) ASME Boiler and Pressure Vessel Code, Transportation of Line Pipe’’ (4th edition, * * * * * 1990). Section IX ‘‘Welding and Brazing (3) API Specification 6D ‘‘Specification for Qualifications’’ (1998). 3. Section 195.3 would be amended Pipeline Valves (Gate, Plug, Ball, and Check E. Manufacturers Standardization Society by revising paragraphs (b) and (c) to Valves)’’ (21st edition, 1994). of the Valve and Fittings Industry, Inc. read as follows: (4) API 1104 ‘‘Welding of Pipelines and (MSS): Related Facilities’’ (19th edition, 1999). (1) MSS SP44–96 ‘‘Steel Pipe Line § 195.3 Matter incorporated by reference. C. American Society for Testing and Flanges’’ (includes 1996 errata) (1996). * * * * * Materials (ASTM): (2) [Reserved] (b) All incorporated materials are (1) ASTM Designation: A 53 ‘‘Standard F. National Fire Protection Association available for inspection in the Research Specification for Pipe, Steel, Black and Hot- (NFPA): and Special Programs Administration, Dipped, Zinc-Coated, Welded and Seamless’’ (1) NFPA 30 ‘‘Flammable and Combustible 400 Seventh Street, SW., Washington, (A53–99). Liquids Code’’ (1996). DC, and at the office of the Federal (2) ASTM Designation: A106 ‘‘Standard (2) ANSI/NFPA 58 ‘‘Standard for the Specification for Seamless Carbon Steel Pipe Storage and Handling of Liquefied Petroleum Register, 800 North Capitol Street, NW., for High-Temperature Service’’ (A106–99). Gases’’ (1998). Suite 700, Washington, DC. These (3) ASTM Designation: A333/A333M (3) ANSI/NFPA 59 ‘‘Standard for the materials have been approved for ‘‘Standard Specification for Seamless and storage and Handling of Liquefied Petroleum incorporation by reference by the Welded Steel Pipe for Low-Temperature Gases at Utility Gas Plants’’ (1998). Director of the Federal Register in Service’’ (A333/A333M–99). (4) ANSI/NFPA 70 ‘‘National Electrical accordance with 5 U.S.C. 552(a) and 1 (4) ASTM Designation: A372/A372M Code’’ (1999). ‘‘Standard Specification for Carbon and Alloy CFR part 51. In addition, materials G. Plastics Pipe Institute, Inc. (PPI): incorporated by reference are available Steel Forgings for Thin-Walled Pressure (1) PPI TR–3/2000 ‘‘Policies and Vessels’’ (A372/A372M–99). as follows: Procedures for Developing Hydrostatic (1) American Gas Association (AGA), (5) ASTM Designation: A381 ‘‘Standard Design Bases (HDB), Pressure Design Bases Specification for Metal-Arc-Welded Steel (PDB), and Minimum Required Strength 400 North Capitol Street, NW, Pipe for Use With High-Pressure (MRS) Ratings for Thermoplastic Piping Washington, DC 20001. Transmission Systems’’ (A381–96). Materials’’ (2000). (2) American Petroleum Institute (6) ASTM Designation: A671 ‘‘Standard (API), 1220 L Street, NW, Washington, Specification for Electric-Fusion-Welded 19. Appendix B to Part 192 would be DC 20005. Steel Pipe for Atmospheric and Lower amended by revising part I and the (3) American Society of Mechanical Temperatures’’ (A671–96). heading of part II.A. to read as follows: (7) ASTM Designation: A672 ‘‘Standard Engineers (ASME), 3 Park Avenue, New Specification for Electric-Fusion-Welded Appendix B to Part 192—Qualification York, NY 10016-5990. Steel Pipe for High-Pressure Service at of Pipe (4) Manufacturers Standardization Moderate Temperatures’’ (A672–96). Society of the Valve and Fittings (8) ASTM Designation: A691 ‘‘Standard I. Listed Pipe Specifications (Numbers Industry, Inc. (MSS), 127 Part Street, Specification for Carbon and Alloy Steel in Parentheses Indicate Applicable NW, Vienna, VA 22180. Pipe, Electric-Fusion-Welded for High- Editions) (5) American Society for Testing and Pressure Service at High Temperatures’’ Materials (ASTM), 100 Barr Harbor (A691–98). API 5L—Steel pipe (2000) (9) ASTM Designation: D638 ‘‘Standard ASTM A 53–Steel pipe (A 53–99). Drive, West Conshohocken, PA 19428. Test Method for Tensile Properties of ASTM A 106—Steel pipe (A 106–99) (6) National Fire Protection Plastics’’ (D638–97). ASTM A 333/A 333M—Steel pipe (A 333/A Association (NFPA), 1 Batterymarch (10) ASTM Designation: D2513 ‘‘Standard 333M–99) Park, P.O. Box 9101, Quincy, MA Specification for Thermoplastic Gas Pressure ASTM A 381—Steel pipe (A 381–96) 02269–9101. Pipe, Tubing, and Fittings’’ (D2513–87 ASTM D 671—Steel pipe (A 671–96) (c) The full titles of publications edition for § 192.63(a)(1), otherwise D2513– ASTM D 672—Steel pipe (A 672–96) incorporated by reference wholly or 98). ASTM D 691—Steel pipe (A 691–98) (11) ASTM Designation: D 2517 ‘‘Standard partially in this part are as follows. ASTM D 2513—Thermoplastic pipe and Numbers in parentheses indicate Specification for Reinforced Epoxy Resin Gas tubing (D 2513–98) Pressure Pipe and Fittings’’ (D2517–98) applicable editions: ASTM D 2517—Thermosetting plastic pipe (1) American Gas Association (AGA): (12) ASTM Designation: F1055 ‘‘Standard and tubing (D 2517–98) Specification for Electrofusion Type (i) AGA Pipeline Research Committee, Polyethylene Fittings for Outside Diameter II. Steel Pipe of Unknown or Unlisted Project PR–3–805, ‘‘A Modified Controlled Polyethylene Pipe and Tubing’’ Specification Criterion for Evaluating the Remaining (F1055–98). A. Bending properties. *** Strength of Corroded Pipe’’ (December D. The American Society of Mechanical 22, 1989). The RSTRENG program may Engineers (ASME): * * * * * (1) ASME/ANSI B16.1 ‘‘Cast Iron Pipe be used for calculating remaining Flanges and Flanged Fittings’’ (1998). PART 195Ð[AMENDED] strength. (2) ASME/ANSI B16.5 ‘‘Pipe Flanges and (ii) [Reserved] Flanged Fittings’’ (1996, includes 1998 1. The authority citation for part 195 (2) American Petroleum Institute Addenda). continues to read as follows: (API):

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(i) API Specification 5L ‘‘Specification (v) ASME Boiler and Pressure Vessel of Pipeline Safety, Research and Special for Line Pipe’’ (42nd edition, 2000) Code, Section VIII ‘‘Pressure Vessels,’’ Programs Administration, U.S. (ii) API Specification 6D Divisions 1 and 2 (1998). Department of Transportation, Room ‘‘Specification for Pipeline Valves (Gate, (vi) ASME Boiler and Pressure Vessel 7128, 400 Seventh Street, SW., Plug, Ball, and Check Valves)’’ (21st Code, Section IX ‘‘Welding and Brazing Washington, DC 20590. * * * edition, 1994). Qualifications’’ (1998). 6. Section 195.214 would be amended (iii) API Specification 12F (4) Manufacturers Standardization by revising the section heading and ‘‘Specification for Shop Welded Tanks Society of the Valve and Fittings paragraph (a) to read as follows: for Storage of Production Liquids’’ (11th Industry, Inc. (MSS): edition, November 1994). (i) MSS SP–75 ‘‘Specification for High § 195.214 Welding procedures. (iv) API 510 ‘‘Pressure Vessel Test Wrought Butt Welding Fittings’’ (a) Welding must be performed by a Inspection Code: Maintenance (1993). qualified welder in accordance with Inspection, Rating, Repair, and (ii) [Reserved] welding procedures qualified under Alteration’’ (8th edition, June 1997). (5) American Society for Testing and Section 5 of API 1104 or Section IX of (v) API Standard 620 ‘‘Design and Materials (ASTM): the ASME Boiler and Pressure Vessel Construction of Large, Welded, Low- (i) ASTM Designation: A53 ‘‘Standard Code. The quality of the test welds used Pressure Storage Tanks’’ (8th edition, Specification for Pipe, Steel, Black and to qualify the procedure shall be 1990). Hot-Dipped, Zinc-Coated Welded and determined by destructive testing. (vi) API 650 ‘‘Welded Steel Tanks for Seamless’’ (A53–99). * * * * * Oil Storage’’ (1998). (ii) ASTM Designation: A106 7. Section 195.222 would be revised (vii) API Recommended Practice 651 ‘‘Standard Specification for Seamless to read follows: ‘‘Cathodic Protection of Aboveground Carbon Steel Pipe for High-Temperature Petroleum Storage Tanks’’ (2nd edition, Service’’ (A106–99). § 195.222 Welders: Qualification of December 1997). (iii) ASTM Designation: A 333/A welders. (viii) API Recommended Practice 652 333M ‘‘Standard Specification for Each welder must be qualified in ‘‘Lining of Aboveground Petroleum Seamless and Welded Steel Pipe for accordance with Section 6 of API 1104 Storage Tank Bottoms’’ (2nd edition, Low-Temperature Service’’ (A 333/A or Section IX of the ASME Boiler and December 1997). 333M–99). Pressure Vessel Code, except that a (ix) API Standard 653 ‘‘Tank (iv) ASTM Designation: A 381 welder qualified under an earlier Inspection, Repair, Alteration, and ‘‘Standard Specification for Metal-Arc- edition than listed in 195.3 may weld Reconstruction’’ (2nd edition, December Welded Steel Pipe for Use With High- but may not requalify under that earlier 1995, including Addenda 1, December Pressure Transmission Systems’’ (A edition. 1996). 381–96). 8. Paragraph (b) of § 195.228 would be (x) API 1104 ‘‘Welding of Pipelines (v) ASTM Designation: A 671 revised to read as follows: and Related Facilities’’ (19th edition, ‘‘Standard Specification for Electric- 1999). Fusion-Welded Steel Pipe for § 195.228 Welds and welding inspection: (xi) API Standard 2000 ‘‘Venting Atmospheric and Lower Temperatures’’ Standards of acceptability. Atmospheric and Low-Pressure Storage (A 671–96). * * * * * Tanks’’ (4th edition, September 1992). (vi) ASTM Designation: A 672 (b) The acceptability of a weld is (xii) API Recommended Practice 2003 ‘‘Standard Specification for Electric- determined according to the standards ‘‘Protection Against Ignitions Arising Fusion-Welded Steel Pipe for High- in Section 9 of API 1104. However, if a out of Static, Lightning, and Stray Pressure Service at Moderate girth weld is unacceptable under those Currents’’ (6th edition, December 1998). Temperatures’’ (A 672–96). standards for a reason other than a (xiii) API Publication 2026 ‘‘Safe (vii) ASTM Designation: A 691 crack, and if Appendix A to API 1104 Access/Egress Involving Floating Roofs ‘‘Standard Specification for Carbon and applies to the weld, the acceptability of of Storage Tanks in Petroleum Service’’ Alloy Steel Pipe Electric-Fusion-Welded the weld may be determined under that (2nd edition, April 1998). for High-Pressure Service at High appendix. (xiv) API Recommended Practice 2350 Temperatures’’ (A 691–98). 9. Section 195.440 would be amended ‘‘Overfill Protection for Storage Tanks In (6) National Fire Protection by revising the first sentence to read as Petroleum Facilities’’ (2nd edition, Association (NFPA): follows: January 1996). (i) ANSI/NFPA 30 ‘‘Flammable and (xv) API Standard 2510 ‘‘Design and Combustible Liquids Code’’ (1996). § 195.440 Public education. Construction of LPG Installations’’ (7th (ii) [Reserved] Each operator shall establish a edition, May 1995). 4. Paragraph (e) of § 195.50 would be continuing education program to enable (3) American Society of Mechanical revised to read as follows: the public, appropriate government Engineers (ASME): organizations and persons engaged in § 195.50 Reporting accidents. (i) ASME/ANSI B16.9 ‘‘Factory-Made excavation-related activities to Wrought Steel Buttwelding Fittings’’ * * * * * recognize a hazardous liquid or a carbon (1993). (e) A personal injury necessitating in- dioxide pipeline emergency and to (ii) ASME/ANSI B31.4 ‘‘Pipeline patient hospitalization. report it to the qualified one-call system, Transportation Systems for Liquid * * * * * the operator, or the fire, police, or other Hydrocarbons and Other Liquids’’ 5. Section 195.58 would be amended appropriate public officials. * * * (1998). by revising the first sentence to read as Issued in Washington, DC on March 8, (iii) ASME/ANSI B31.8 ‘‘Gas follows: Transmission and Distribution Piping 2000. Systems’’ (1995). § 195.58 Address for written reports. Richard B. Felder, (iv) ASME/ANSI B31G ‘‘Manual for Each written report required by this Associate Administrator for Pipeline Safety. Determining the Remaining Strength of subpart must be made to the [FR Doc. 00–6353 Filed 3–21–00; 8:45 am] Corroded Pipelines’’ (1991). Information Resources Manager, Office BILLING CODE 4910±60±P

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DEPARTMENT OF TRANSPORTATION arrangements have been made, FRA will 6. South Bend, Indiana: Specific publish a document in the Federal location to be determined; Federal Railroad Administration Register and post the additional 7. Chicago, Illinois: Specific locations to information on its web site. be determined; and 49 CFR Parts 222 and 229 DATES: Public Hearings: Public hearings 8. Berea, Ohio: Specific location to be [Docket No. FRA±1999±6439, Notice No. 3; will be held in: determined. Docket No. FRA±1999±6440] 1. Washington, D.C. on March 6, 2000, FRA Docket Clerk: Docket Clerk, beginning at 9 a.m.; RIN 2130±AA71 Office of Chief Counsel, Mail Stop 10, 2. Los Angeles area, California on March FRA, 1120 Vermont Avenue, NW, Use of Locomotive Horns at Highway- 15, 2000, beginning at 9 a.m.; Washington, D.C. 20590. E-mail address Rail Grade Crossings 3. Pendleton, Oregon on March 17, for the FRA Docket Clerk is 2000, beginning at 9 a.m.; [email protected]. AGENCY: Federal Railroad 4. Ft. Lauderdale, Florida on March 28, Administration (FRA), Department of 2000, beginning at 9 a.m.; FOR FURTHER INFORMATION CONTACT: Ron Transportation (DOT). 5. Salem, Massachusetts on April 3, Ries, Office of Safety, FRA, 1120 ACTION: Notice of public hearings. 2000, beginning at 9 a.m.; Vermont Avenue, S.W., Washington, 6. South Bend, Indiana on April 10, D.C. 20590 (telephone: 202–493–6299); SUMMARY: On January 13, 2000 (65 FR 2000, beginning at 9 a.m.; or Mark Tessler, Office of Chief Counsel, 2230), FRA published a Notice of 7. Chicago, Illinois area on—April 25, FRA, 1120 Vermont Avenue, S.W., Proposed Rulemaking (NPRM) on the 2000, times to be determined, Washington, D.C. 20590 (telephone: Use of Locomotive Horns at Highway- April 26, 2000, times to be 202–493–6038). Rail Grade Crossings (Docket No. FRA– determined, SUPPLEMENTARY INFORMATION: Any 1999–6439). On the same date FRA April 27, 2000; times to be person wishing to provide testimony at released a Draft Environmental determined; and one of the public hearings should notify Assessment (DEIS) (Docket No. FRA– 8. Berea, Ohio on May 1, 2000, times to FRA’s Docket Clerk at the address above 1999–6440) pertaining to the proposals be determined. at least three working days prior to the contained in the NPRM. In both Please see Supplementary Information date of the hearing. The notification documents, FRA stated that public below for further information should also provide either a telephone hearings would be held in a number of concerning participation in the public number or e-mail address at which the locations throughout the country. On hearings. person may be contacted. If a February 15, 2000 (65 FR 7483), FRA participant will be representing an ADDRESSES: Public Hearings: Public published in the Federal Register a organization, please indicate the name hearings will be held at the following document regarding hearings to be held, of the organization. combined hearings on the NPRM and locations: FRA will attempt to accommodate all DEIS to be held in: Washington, D.C.; 1. Washington DC: Federal Aviation persons wishing to provide testimony, Los Angeles, California; Pendleton, Administration Auditorium, Third however depending on the number of Oregon; Ft. Lauderdale, Florida; and Floor, Federal Office Building 10A, people wishing to participate, FRA may Salem, Massachusetts. FRA stated that a 800 Independence Avenue, S.W., find it necessary to limit the length of further document will be published and Washington, D.C. 20591; oral comments to accommodate as many posted on FRA’s web site (http:// 2. Los Angeles area: Doubletree Hotel, people as possible. Participants may fra.dot.gov) regarding hearings to be Catalina II Room, 3050 Bristol Street, wish to submit a complete written held in the remaining locations listed in Costa Mesa, CA 92626; statement for inclusion in the record, the NPRM: Berea, Ohio; South Bend, 3. Pendleton, Oregon: City Council while orally summarizing the points Indiana; and Chicago, Illinois. This Chambers, Pendleton City Hall, 500 made in that statement. document provides information Southwest Dorian Avenue, Pendleton, pertaining to those hearings as well as OR 97801; Issued in Washington, D.C. on March 10, repeating the information contained in 4. Ft. Lauderdale, Florida: Doubletree 2000. the original hearing document. At this Oceanfront Hotel, 440 Seabreeze Blvd, Michael T. Haley, time, although hearing dates have been Fort Lauderdale, FL 33316; Deputy Chief Counsel, Federal Railroad established, specific hearing sites in 5. Salem, Massachusetts: National Park Administration. Chicago, South Bend, and Berea have Service Visitor Center—Auditorium, 2 [FR Doc. 00–6445 Filed 3–21–00; 8:45 am] not been finalized. When final site New Liberty Street, Salem, MA 01970; BILLING CODE 4910±06±P

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Notices Federal Register Vol. 65, No. 56

Wednesday, March 22, 2000

This section of the FEDERAL REGISTER DEPARTMENT OF AGRICULTURE APHIS’ Information Collection contains documents other than rules or Coordinator, at (301) 734–7477. proposed rules that are applicable to the Animal and Plant Health Inspection SUPPLEMENTARY INFORMATION: public. Notices of hearings and investigations, Service committee meetings, agency decisions and Title: Karnal Bunt. rulings, delegations of authority, filing of [Docket No. 00±018±1] OMB Number: 0579–0121. petitions and applications and agency Expiration Date of Approval: April 30, statements of organization and functions are Notice of Request for Extension of 2000. Approval of an Information Collection examples of documents appearing in this Type of Request: Extension of section. AGENCY: Animal and Plant Health approval of an information collection. Inspection Service, USDA. Abstract: We have regulations in DEPARTMENT OF AGRICULTURE ACTION: Extension of approval of an place to prevent the interstate spread of information collection; comment Karnal bunt, a fungal disease of wheat. Office of the Secretary request. These regulations restrict the interstate movement of wheat plants and plant Commission on 21st Century SUMMARY: In accordance with the parts (including grain, seed, and straw) Production Agriculture Paperwork Reduction Act of 1995, this from areas where Karnal bunt has been notice announces the Animal and Plant detected. The regulations concerning Health Inspection Service’s intention to ACTION: Notice of meeting. interstate movements require the use of request an extension of approval of an limited permits, certificates, compliance information collection in support of the agreements, and other documents that SUMMARY: The U.S. Department of Karnal bunt regulations. Agriculture (USDA) has established the are needed to inform the public of our DATES: We invite you to comment on requirements and authorize the Commission on 21st Century Production this docket. We will consider all interstate movement of regulated Agriculture. In accordance with Section comments that we receive by May 22, articles. 10(a)(2) of the Federal Advisory 2000. In addition, our regulations have Committee Act (FACA), notice is hereby ADDRESSES: Please send your comment offered compensation as part of our given of a meeting in April of the and three copies to: Docket No. 00–018– Karnal bunt regulatory program since Commission on 21st Century Production 1, Regulatory Analysis and the 1995–1996 crop season. We pay this Agriculture. The purpose of this Development, PPD, APHIS, Suite 3C03, compensation to reduce the economic meeting on April 10 will be to address 4700 River Road, Unit 118, Riverdale, effects of our Karnal bunt quarantine on issues regarding dairy policy. On April MD 20737–1238. Please state that your wheat producers and other individuals 11–12, coordination of and issues comment refers to Docket No. 00–018– and to help obtain their cooperation in regarding the final report will be 1. our Karnal bunt eradication efforts. Our discussed. This meeting is open to the You may read any comments that we regulations regarding compensation public. receive on this docket in our reading require program participants to engage in several information collection PLACE, DATE, AND TIME OF MEETING: This room. The reading room is located in activities (including the completion of a meeting will be held April 10, 2000 room 1141 of the USDA South Building, 14th Street and Independence Avenue, Karnal bunt compensation worksheet from 1:00 pm–5:00 pm EST in Room SW., Washington, DC. Normal reading and compensation form) that are 108–A, Whitten Building; April 11, room hours are 8 a.m. to 4:30 p.m., necessary for us to run an effective 2000 from 9:00 am–5:00 pm EST in Monday through Friday, except compensation program. Room 108–A, Whitten Building; April holidays. To be sure someone is there to We are asking the Office of 12, 2000 from 9:00 am–3:00 pm EST in help you, please call (202) 690–2817 Management and Budget (OMB) to Room 108–A, Whitten Building. before coming. approve, for an additional 3 years, our FOR FURTHER INFORMATION CONTACT: APHIS documents published in the use of these information collections in Mickey Paggi on (202–720–3139), Federal Register, and related connection with our regulations. Director, Commission on 21st Century information, including the names of The purpose of this notice is to solicit Production Agriculture, Room 3702 organizations and individuals who have comments from the public (as well as South Building, 1400 Independence commented on APHIS dockets, are affected agencies) concerning this available on the Internet at http:// Avenue, SW, Washington, DC 20250– information collection activity. We need www.aphis.usda.gov/ppd/rad/ 0524. this outside input to help us: webrepor.html. (1) Evaluate whether the information Keith J. Collins, FOR FURTHER INFORMATION CONTACT: For collection is necessary for the proper Chief Economist. information regarding the Karnal bunt performance of our Agency’s functions, [FR Doc. 00–7036 Filed 3–21–00; 8:45 am] regulations, contact Dr. Vedpal S. Malik, including whether the information will BILLING CODE 3410±01±M National Karnal Bunt Coordinator, PPQ, have practical utility; APHIS, 4700 River Road Unit 134, (2) Evaluate the accuracy of our Riverdale, MD 20737–1236; (301) 734– estimate of the burden of the 6774. For copies of more detailed information collection, including the information on the information validity of the methodology and collection, contact Ms. Celeste Sickles, assumptions used;

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(3) Enhance the quality, utility, and DATES: Comments on this notice must be financial institutions, producer clarity of the information to be received by May 22, 2000, to be assured associations, export trade associations, collected; and of consideration. and U.S. Government agencies. (4) Minimize the burden of the ADDITIONAL INFORMATION OR COMMENTS: Estimated Number of Respondents: 40 information collection on those who are Contact Merle Brown, Director, Program per annum. to respond (such as, through the use of Administration Division, Foreign Estimated Number of Responses per appropriate automated, electronic, Agricultural Service, U.S. Department of Respondent: 90 per annum. mechanical, or other technological Agriculture, AgBox 1031, Washington, Estimated Total Annual Burden of collection techniques or other forms of DC 20250–1031, telephone (202) 720– Respondents: 1,636 hours. information technology, e.g., permitting 3573. Persons with disabilities who Copies of this information collection can be obtained from Kimberly Chisley, electronic submission of responses). require an alternative means for the Agency Information Collection Estimate of burden: The public communication of information (Braille, Coordinator, at (202) 720–2568. reporting burden for this collection of large print, audiotape, etc.) should information is estimated to average contact USDA’s Target Center at (202) Requests for Comments .1818 hours per response. 720–2600 (voice and TDD). Send comments regarding (a) whether Respondents: Wheat growers, SUPPLEMENTARY INFORMATION: Title: the proposed collection of information handlers, owners of grain storage CCC’s Export Enhancement Program is necessary for the proper performance facilities, flour millers, seed companies, (EEP) and CCC’s Dairy Export Incentive of the functions of the agency, including and Farm Service Administration Program (DEIP). whether the information will have personnel. OMB Numbers: 0551–0028 (EEP) and practical utility; (b) the accuracy of the Estimated annual number of 0551–0029 (DEIP). These will be agency’s estimate of the burden of the respondents: 1,261. combined into OMB Number 0551–0028 proposed collection of information; (c) Estimated annual number of if this request is approved. ways to enhance the quality, utility and Expiration Date of Approval: July 31, responses per respondent: 9.26407. clarity of the information to be 2000. Estimated annual number of Type of Request: Extension and collected; and (d) ways to minimize the responses: 11,682. revision of currently approved burden of the collection of information Estimated total annual burden on information collections, with change to on those who are to respond, including respondents: 2,124 hours. (Due to combine 0551–0028 (CCC’s Export through the use of automated, rounding, the total annual burden hours Enhancement Program) and 0551–0029 electronic, mechanical, or other may not equal the product of the annual (CCC’s Dairy Export Incentive Program). technological collection techniques or number of responses multiplied by the Abstract: The major objective of the other forms of information technology. average reporting burden per response.) EEP and DEIP is to expand U.S. Comments may be sent to Merle Brown, All responses to this notice will be agricultural exports by paying cash to Director, Program Administration summarized and included in the request exporters as bonuses, allowing them to Division, Foreign Agricultural Service, for OMB approval. All comments will sell U.S. agricultural products in U.S. Department of Agriculture, AgBox also become a matter of public record. targeted countries at competitive prices. 1031, Washington, DC 20250–1031, or to the Desk Officer for Agriculture, Done in Washington, DC, this 16th day of Currently, 120 countries and 3 country March 2000. regions are targeted export destinations Office of Information and Regulatory Affairs, Office of Management and Bobby R. Acord, and 820 exporters are eligible to participate under either or both Budget, Washington, DC 20503. Acting Administrator, Animal and Plant All responses to this notice will be Health Inspection Service. programs. Under 7 CFR part 1494, summarized and included in the request [FR Doc. 00–7015 Filed 3–21–00; 8:45 am] exporters are required to submit the following: (1) information required for for OMB approval. BILLING CODE 3410±34±P program participation (section All comments will also become a 1494.301), (2) performance security matter of public record. DEPARTMENT OF AGRICULTURE (section 1494.401), (3) export sales Signed at Washington, D.C. on March 16, information in connection with 2000. Commodity Credit Corporation applying for a CCC bonus (section Richard Fritz, 1494.501), and (4) evidence of export General Sales Manager, Foreign Agricultural Notice of Request for Extension and and related information (section Service, and Vice President, Commodity Revision of a Currently Approved 1494.701). In addition, each exporter Credit Corporation. Information Collection must maintain accurate records showing [FR Doc. 00–7038 Filed 3–21–00; 8:45 am] sales and deliveries of the eligible BILLING CODE 3410±10±P AGENCY: Commodity Credit Corporation, commodity exported in connection with USDA. an agreement made under the EEP or ACTION: Notice and request for DEIP as outlined in section 1494.1001. DEPARTMENT OF AGRICULTURE comments. The information collected is used by CCC to manage, plan for, evaluate the Farm Service Agency SUMMARY: In accordance with the use of, and account for Government Notice of Request for Revision and Paperwork Reduction Act of 1995, this resources. The reports and records are Extension of Currently Approved notice announces the Commodity Credit required to ensure the proper and Information Collection Corporation’s (CCC) intention to request judicious use of public funds. an extension for and revision to Estimate of Burden: The public AGENCY: Farm Service Agency, USDA. currently approved information reporting burden for these collections is ACTION: Notice and request for collections in support of the CCC’s estimated to average 0.45 hours per comments. Export Enhancement Program (EEP) and response. the CCC’s Dairy Export Incentive Respondents: Exporters of U.S. SUMMARY: In accordance with the Program (DEIP) based on re-estimates. agricultural commodities, banks or other Paperwork Reduction Act of 1995, this

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The renewal includes Forest Counties, PA Estimate of Burden: Public reporting revisions to information collections AGENCY: Forest Service, USDA. resulting from the new Low- burden for this collection of information Documentation Direct Operating Loan is estimated to average 4.2 hours per ACTION: Revised notice of intent to application process which will be response. prepare an environmental impact published under a separate Federal Respondents: Individuals or statement. Register publication titled, households, businesses or others for SUMMARY: Reference is made to our ‘‘Implementation of Lo-Documentation profit, and farms. notice of intent to prepare an Direct Operating Loan (Lo-Doc) Estimated Number of Respondents: environmental impact statement for the Regulations.’’ Lo-Doc makes the Direct 34,970. East Side Project (FR Document 98– Operating Loan program application 10895 filed 4/23/98) published in the process more consistent with the Estimated Number of Responses per Respondent: 5.03. Federal Register, Volume 63, No. 79, guaranteed loan program and standard Friday, April 24, 1998, pages 20368–69. industry practices. Loan processing will Estimated Total Annual Burden on In accordance with Forest Service be more efficient and less time Respondents: 147,551. Environmental Policy and Procedures consuming. Comments are sought on these handbook 1909.15, part 21.2—Revision DATES: Comments on this notice must be requirements including: (a) whether the of Notices of Intent, we are revising the received on or before May 22, 2000 to collection of information is necessary date that the Draft Environmental be assured consideration. for the proper performance of the Impact Statement is expected to be filed FOR FURTHER INFORMATION CONTACT: functions of the agency, including with the Environmental Protection Cathy Quayle, Senior Loan Officer, whether the information will have Agency and be available for public USDA, Farm Service Agency, Loan practical utility, (b) the accuracy of the review and comment to April 10, 2000. Making Division, 1400 Independence agency’s estimate of burden including Subsequently, the date the final EIS is Avenue, SW, STOP 0522, Washington, the validity of the methodology and scheduled to be completed is revised to D.C. 20250–0522; Telephone (202) 690– be August 1, 2000. assumptions used; (c) ways to enhance 4018; Electronic mail: FOR FURTHER INFORMATION CONTACT: Gary [email protected]. the quality, utility and clarity of the information to be collected; (d) ways to W. Kell, Allegheny National Forest at SUPPLEMENTARY INFORMATION: Title: minimize the burden of the collection of P.O. Box 847, Warren, PA 16365 or by Receiving and Processing Applications. information on those who are to telephone at 814/723–5150. OMB Control Number: 0560–0178. Dated: March 14, 2000. Expiration Date of Approval: April 30, respond, including through the use of 2000. appropriate automated, electronic, John E. Palmer, Type of Request: Revision and mechanical, or other technological Forest Supervisor. Extension of Currently Approved collections techniques or other forms of [FR Doc. 00–7018 Filed 3–21–00; 8:45 am] Information Collection. information technology. BILLING CODE 3410±11±M Abstract: The information collected These comments should be sent to the under OMB Control Number 0560–0178 Desk Officer for Agriculture, Office of DEPARTMENT OF AGRICULTURE is used in processing applications for Information and Regulatory Affairs, direct FLP loans. Specifically, the Office of Management and Budget, Forest Service Agency uses the information in making Washington, D.C. 20503 and to Cathy eligibility and financial feasibility Quayle, USDA, FSA, Farm Loan Hidden Cedar Project, ID; Panhandle determinations for direct operating, Programs, Loan Making Division, 1400 National Forests, Shoshone County, ID farm ownership, and emergency loans, Independence Avenue, SW, STOP 0522, as authorized under the Consolidated AGENCY: Forest Service, USDA. Farm and Rural Development Act. The Washington D.C. 20250–0522. Copies of the information collection may be ACTION: Notice of intent to prepare an specific information collected is environmental impact statement. business and entity supporting obtained from Cathy Quayle at the documentation on organizational above address. SUMMARY: The St. Joe Ranger District of structure and financial information, Comments regarding paperwork the Idaho Panhandle National Forest is documentation of farm experience and burden will be summarized and considering vegetation, watershed training, verification that the applicant included in the request for OMB restoration, and access management is unable to obtain credit elsewhere, approval of the information collection. activities in the Hidden Cedar Project. historical financial and production All comments will also become a matter The project area is located records, and copies of any lease of public record. approximately 26 miles south of the agreements or legal descriptions of real town of St. Maries on the St. Maries estate they own. Regulations are being Signed in Washington, D.C., on March 13, River. revised under a separate Federal 2000. The proposed action was designed to Register publication to implement a Lo- Keith Kelly, meet the primary objectives listed Doc application process which will Administrator, Farm Service Agency. below. The interdisciplinary team decrease collections required from [FR Doc. 00–7037 Filed 3–21–00; 8:45 am] reviewed the Natural Resource Agenda, applicants requesting operating loans of BILLING CODE 3410±05±P the Interior Columbia Basin Ecosystem $50,000 or less, or recurring annual Management Project, the Idaho operating loans. Lo-Doc will decrease Panhandle Forest Plan, and the St. Joe

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Geographic Assessment. Using these confidentiality may be granted in only to Read 765A; County Line Road 765A, documents and information specific to very limited circumstances, such as to from Road 765 to SH3; Hidden Creek the project area, the interdisciplinary protect trade secrets. The Forest Service Road 498, from Road 765 to the ‘‘forks team completed an Ecosystem Analysis will inform the requester of the agency’s of Hidden Cr’’; Wood Creek Road 341, at the Watershed Scale for the Hidden decision regarding the request for from SH3 to Road 3340; Clarkia Emerald Cedar Project Area (located in the confidentiality, and where the request is Creek Road 504, from SH3 to Road 447; project file) to document resource denied, the agency will return the Bechtel Mountain Road 3478, from Road conditions and note where activities submission and notify the requester that 504 to the top of Bechtel Mountain; were needed to improve them. The the comments may be resubmitted with Anthony Peak Road 1486, segment I, following needs for the Hidden Cedar or without name and address within 10 from the County Road to Road 3685; area were derived from the Ecosystem days. Anthony Peak Road 1486, segment III, Analysis: (1) Improve soil conditions; SUPPLEMENTARY INFORMATION: Vegetation from Road 3685 to Road 3686; Bluebell (2) Reduce sedimentation from past management under this proposal is Road 3685, from Road 1486 to Road activities, which have caused designed to meet several needs, 3685C; and Bobcat Road 3554, from streambank instability, channel erosion including providing timber products to Road 1450 to Road 3554A. and increased sedimentation; (3) local markets, protecting and enhancing These roads are in addition to the Provide or improve wildlife security; (4) wildlife habitat needs, providing for general public access provided by State Reduce the impacts of existing roads long term growth and yield as directed Highway 3 and other landowners in the such as influences on hydrologic in the Idaho Panhandle National Forest area. properties, fish migration barriers Plan, increasing fire resiliency, reducing (culverts), while providing adequate and fire hazards, and moving the vegetation Access Management appropriate access for management, to the conditions the area historically Approximately 9.7 miles of road recreation and adjacent landowners; (5) had in terms of tree species composition construction would be needed to access Move vegetation toward historical and density. timber harvesting units. conditions in terms of species Treatments include approximately Adjacent landowners (Potlatch composition and size where feasible and 1768 acres of commercial timber Corporation and the Idaho Department acceptable to other resources, and (5) harvesting including commercial of Lands) have indicated that in the near Reduce fuel build-up where it poses a thinning, shelterwood preparation and future, they will be requesting access risk to human uses in the project area. seed cuttings, group shelterwoods, across National Forest System Lands in DATE: Comments should be postmarked irregular group shelterwoods, and the project area to reach their lands. The by April 15, 2000. Please include your clearcuts with reserves. federal government is required to allow name and address and the name of the Stream Channel and Fish Habitat reasonable access the adjacent lands project on which you are commenting. Restoration after the appropriate analysis and ADDRESSES: For your comments to be The NEPA analysis will consider consultation. The amount of additional most useful, they should be as specific possible riparian road relocation and/or road access (new road construction) as possible to the project area and the obliteration in the proposed action or associated with these access requests is Proposed Action. alternatives. Segments of Roads 498 estimated at between two and five Submit written comments and (Hidden Creek), 341 (Wood Creek) and miles. suggestions on the proposed 3340 (Mazie Creek) have been identified Preliminary Issues management activities or request to be for possible relocation or obliteration places on project mailing list to: George that could be included in the analysis. We expect issues and concerns with M. Bain, District Ranger, St. Joe Ranger An unnamed drainage north of the this project to include the impacts on District, PO Box 407, St. Maries, ID Clarkia Work Center also contains wildlife, fish, water quality, and 83861. Forest Supervisor, Idaho several riparian and/or other primitive recreation, as well as road construction, Panhandle National Forests, 3815 roads that could be put into long term clearcutting and economic feasibility. Schreiber Way, Coeur d’Alene, ID 83814 storage or obliterated. Other unclassified Issues will be developed and analyzed is the Responsible Official. roads throughout the project area will be based on public comment and the FOR FURTHER INFORMATION CONTACT: evaluated if they should be placed on interdisciplinary team’s analysis of Cameo Flood, Project Team Leader, St. the Forest Development Road (FDR) effects on resources. Alternatives will be Joe Ranger District, (208) 245–4517. system or if additional treatment is developed to modify or eliminate the Comments received in response to needed such as decompaction, impacts from proposed activities and this solicitation, including names and revegetation, culvert removal or some still meet the purpose for this project. addresses of those who comment, will degree of recontouring. Additionally, some of the vegetation be considered part of the public record As a minimum, for the proposed treatment may result in opening of over on this proposed action and will be action, the following Forest 60 acres, which requires a 60 day available for public inspection. Development Roads will be managed as comment period. While we would like Comments submitted anonymously will unrestricted routes, available for all comments that would affect alternatives be accepted and considered; however, motorized vehicle use: East Elk Road early, comments on the size of openings those who submit anonymous 1451 (Staples Creek), from SH3 to Road and their effects should be received by comments will not have standing to 1491; Christmas Creek Road 3321, from May 15, 2000. appeal the subsequent decision under County Road to the end of road; The draft environmental impact 36 CFR Parts 215 or 217. Additionally, Anthony Peak Road 1486, from the statement is expected to be filed with pursuant to 7 CFR 1.27(d), any person County Road to Road 3685; Bluebell the Environmental Protection Agency may request the agency to withhold a Road 3685, from Road 1486 to the ‘‘four (EPA) and available for public review in submission from the public record by way saddle;’’ Cats Spur Road 361, from September 2000. The final showing how the Freedom of Road 1486 to Road 1450; Log Creek environmental impact statement is Information Act (FOIA) permits such Road 1450, from Road 361 to Road 1480; expected to be completed in February confidentiality. Persons requesting such Keeler Connection Road 764, from SH3 2001.

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The comment period on the draft To file a complaint, write the 1125), P. O. Box 96090, Washington, DC environmental impact statement will be Secretary of Agriculture, U.S. 20090–6090 (telephone 202–205–1706). 45 days from the date the Department of Agriculture, Washington, FOR FURTHER INFORMATION CONTACT: Ken Environmental Protection Agency DC 20250, or call 1–800–245–6340 Karkula, Recreation, Heritage, and publishes the notice of availability in (voice) or 202–720–1127 (TDD). USDA Wilderness Resources Management Staff the Federal Register, is an equal employment opportunity (202-205–1426). The Forest Service believes, at this employer. Dated: March 16, 2000. early stage, it is important to give Dated: March 6, 2000. reviewers notice of several court rulings Paul Brouha, George Bain, related to public participation in the Acting Deputy Chief for National Forest environmental review process. First, St. Joe District Ranger. System. reviewers of draft environmental impact [FR Doc. 00–7017 Filed 3–21–00; 8:45 am] [FR Doc. 00–7041 Filed 3–21–00; 8:45 am] statements must structure their BILLING CODE 3410±11±M BILLING CODE 3410±11±P participation in the environmental review of the proposal so that it is DEPARTMENT OF AGRICULTURE meaningful and alerts an agency to the DEPARTMENT OF AGRICULTURE reviewer’s position and contentions. Forest Service Vermont Yankee Nuclear Power Corp. v. Rural BusinessÐCooperative Service NRDC, 435 U.S. 519, 553 (1978). Also, Categorical Exclusion for Certain Ski Notice of Request for Extension of a environmental objections that could be Area Permit Actions Currently Approved Information raised at the draft environmental Collection statement stage but that are not raised AGENCY: Forest Service, USDA. until after completion of the final ACTION: Notice of availability; reissuance AGENCY: Rural Business—Cooperative environmental statement may be waived of interim directive. Service, USDA. or dismissed by the courts. City of SUMMARY: The Forest Service is ACTION: Proposed collection; comments Angoon v. Hodel, 803 F 2d 1016, 1022 reissuing an interim directive to guide requested. (9th Cir. 1986) and Wisconsin Heritages, its employees in complying with the Inc. v. Harris, 490 F. Supp. 1334, 1338 SUMMARY: In accordance with the National Environmental Policy Act (E.D. Wis. 1980). Because of these court Paperwork Reduction Act of 1995, this when issuance of a ski area permit is a rulings, it is very important that those notice announces the Rural Business— purely ministerial action and no interested in this proposed action Cooperative Service’s intention to changes are proposed in permitted participate by the close of the 45-day request an extension for a currently activities or facilities. The interim comment period so that substantive approved information collection in directive implements a provision of the comments and objections are made support of the program for 7 CFR Part Omnibus Parks and Public Lands available to the Forest Service at a time Management Act of 1996, which states 1942–G Rural Business Enterprise when it can meaningfully consider them that reissuance of a ski area permit for Grants and Television Demonstration and respond to them in the final activities similar in nature and amount Grants. environmental impact statement. DATES: Comments on this notice must be To assist the Forest Service in to the activities authorized under the received by May 22, 2000 to be assured identifying and considering issues and previous permit shall not constitute a concern on the proposed action, major Federal action. This interim of consideration. comments on the draft environmental directive, numbered ID 1909.15–2000–1, FOR FURTHER INFORMATION CONTACT: impact statement should be as specific reissues without change the interim Carole Boyko, Rural Development Loan as possible. It also helpful if comments direction previously issued to Forest Specialist, Rural Business—Cooperative refer to specific pages of chapters of the Service Handbook 1909.15, Service, USDA, Specialty Lenders draft statement. Comments may also Environmental Policy and Procedures Division, Stop 3325, 1400 Independence address the adequacy of the draft Handbook, in ID 1909.15–98–1, which Avenue SW, Washington, DC 20250– environmental impact statement or the was published in the Federal Register 3325. Telephone: (202) 720–0661. merits of the alternatives formulated on September 9, 1998, and was issued SUPPLEMENTARY INFORMATION: and discussed in the statement. Reviews effective September 24, 1998. The Title: RBS/Rural Business Enterprise may wish to refer to the Council on proposed interim directive was Grants and Television Demonstration Environmental Quality Regulations for previously published for notice and Grants. implementing the procedural provisions comment in the Federal Register on OMB Number: 0570–0132. of the National Environmental Policy October 27, 1997 (62 FR 55571). Expiration Date of Approval: May 31, Act at 40 CFR 1503.3 in addressing DATES: Interim directive (ID) 1909.15– 2000. these points. 2000–1 is effective March 24, 2000, and Type of Request: Extension of a The United States Department of expires September 24, 2001, unless the currently approved information Agriculture (USDA) prohibits direction in the ID is incorporated in an collection. discrimination in its programs on the amendment to Forest Service Handbook Abstract: The objective of the RBEG basis of race, color, national origin, sex, 1909.15 before the expiration date. program is to facilitate the development religion, age, disability, political beliefs, ADDRESSES: Copies of interim directive of small and emerging private and marital or familial status. (Not all 1909.15–2000–1 are available businesses in rural areas. This purpose prohibited bases apply to all programs.) electronically from the Forest Service is achieved through grants made by RBS Persons with disabilities who require via the World Wide Web/Internet at to public bodies and nonprofit alternative means of communication of http://www.fs.fed.us/im/directives/fsh/ corporations. Television Demonstration program information (braille, large 1909.15/idl1909.15l2000l1.txt or by grants are available to private nonprofit print, audiotape, etc.) should contact contacting the Forest Service, USDA, public television systems to provide USDA’s TARGET Center ad (202) 720– Recreation, Heritage, and Wilderness information on agriculture and other 2600 (voice and TDD). Resources Management Staff (Mail Stop issues of importance to farmers and the

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Estimate of Burden: Public reporting Administrator, Rural Business—Cooperative The information requested is vital for Service. burden for this collection of information RBS to be able to process applications is estimated to average 350 hours per [FR Doc. 00–7035 Filed 3–21–00; 8:45 am] in a responsible manner, make prudent response. program decisions, and effectively BILLING CODE 3410±XY±P Respondents: Not-for-profit monitor the grantees’ activities to institutions and other businesses. protect the Government’s financial DEPARTMENT OF AGRICULTURE Estimated Number of Respondents: 1. interest and ensure that funds obtained Estimated Number of Responses per from the Government are used Rural Utilities Service Respondent: 1. appropriately. It includes information Estimate Total Annual Burden on used to determine eligibility; the Information Collection Activity; Respondents: 350 hours. specific purposes for which grant funds Comment Request Copies of this information collection will be used; timeframes; who will be can be obtained from Bob Turner, AGENCY: Rural Utilities Service, USDA. carrying out the grant purposes; project Program Development and Regulatory priority; applicant experience; ACTION: Notice and request for Analysis, Rural Utilities Service at (202) employment improvement; and comments. 720–0696. Comments are invited on (a) Whether mitigation of economic distress. SUMMARY: In accordance with the Estimate of Burden: Public reporting Paperwork Reduction Act of 1995 (44 the collection of information is burden for this collection of information U.S.C. Chapter 35, as amended), the necessary for the proper performance of is estimated to average 1.95 hours per Rural Utilities Service (RUS) invites the functions of the agency, including response. comments on this information whether the information will have Respondents: Non-profit corporations, collection for which RUS intends to practical utility; (b) the accuracy of the public bodies. request approval from the Office of agency’s estimate of burden including Estimated Number of Respondents: Management and Budget (OMB). the validity of the methodology and assumption used; (c) ways to enhance 720. DATES: Comments on this notice must be the quality, utility and clarity of the Estimated Number of Responses per received by May 22, 2000. Respondent: 28.94. information to be collected; and (d) FOR FURTHER INFORMATION CONTACT: F. ways to minimize the burden of the Estimated Total Annual Burden on Lamont Heppe, Jr., Program Respondents: 40,650 hours. collection of information on those who Development & Regulatory Analysis, are to respond, including through the Copies of this information collection Rural Utilities Service, USDA, 1400 use of appropriate automated, can be obtained from Jean Mosley, Independence Ave., SW., STOP 1522, electronic, mechanical, or other Regulations and Paperwork Room 4034 South Building, technological collection techniques on Management Branch at (202) 692–0041. Washington, DC 20250–1522. other forms of information technology. Comments Telephone: (202) 720–0736. FAX: (202) Comments may be sent to F. Lamont 720–4120. Heppe, Jr., Director, Program Comments are invited on: (a) Whether SUPPLEMENTARY INFORMATION: the proposed collection of information Development and Regulatory Analysis, is necessary for the proper performance Rural Utilities Service, U.S. Department Title: State Telecommunications of Agriculture, 1400 Independence Ave. of the functions of Rural Business— Modernization Plan. Cooperative Service, including whether SW, Stop 1522, Room 4034 South OMB Control Number: 0572–0104. Building, Washington, DC 20250–1522. the information will have practical Type of Request: Reinstatement of a All responses to this notice will be utility; (b) the accuracy of Rural previously approved collection with summarized and included in the request Business—Cooperative Service estimate change. of the burden of the proposed collection Abstract: This information collection for OMB approval. All comments will of information including the validity of requirement stems from passage of the also become a matter of public record. the methodology and assumptions used; Rural Electrification Loan Restructuring Dated: March 14, 2000. (c) ways to enhance the quality, utility Act (RELRA, P.L. 103–129) on Christopher A. McLean, and clarity of the information to be November 1, 1993, which amended the Acting Administrator, Rural Utilities Service. collected; and (d) ways to minimize the Rural Electrification Act of 1936, 7 [FR Doc. 00–7087 Filed 3–21–00; 8:45 am] burden of the collection of information U.S.C. 901 et seq. (the RE Act). RELRA BILLING CODE 3410±15±P on those who are to respond, including requires that a State through the use of appropriate Telecommunications Modernization automated, electronic, mechanical, or Plan (STMP), covering at a minimum DEPARTMENT OF COMMERCE other technological collection the Rural Utilities Service (RUS) techniques or other forms of information borrowers in the state, be established in Foreign-Trade Zones Board technology. Comments may be sent to a state or RUS cannot make hardship or Jean Mosley, Regulations and concurrent cost-of-money and Rural [DOCKET 9±2000] Paperwork Management Branch, U.S. Telephone Bank (RTB) loans for Foreign-Trade Zone 25ÐBroward Department of Agriculture, Rural construction in that state. It is the policy County, FL; Application for Subzone Development, STOP 0742, 1400 of RUS that every State have a Status, Coastal Fuels Marketing, Inc. Independence Ave. SW, Washington, Modernization Plan which provides for (Fuel Terminal), Port Everglades, FL DC 20250. All responses to this notice the improvement of the State’s will be summarized and included in the telecommunications network. A An application has been submitted to request for OMB approval. All proposed Modernization Plan must be the Foreign-Trade Zones Board (the

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Board) by Broward County, Florida, Dated: March 16, 2000. address below. The closing period for grantee of FTZ 25, requesting special- Dennis Puccinelli, their receipt is May 22, 2000. Rebuttal purpose subzone status for the fuel Acting Executive Secretary. comments in response to material distribution terminal of Coastal Fuel [FR Doc. 00–7093 Filed 3–21–00; 8:45 am] submitted during the foregoing period Marketing, Inc. (Coastal), located in Port BILLING CODE 3510±DS±P may be submitted during the subsequent Everglades, Florida. The application 15-day period to June 5, 2000. was submitted pursuant to the A copy of the application and the provisions of the Foreign-Trade Zones DEPARTMENT OF COMMERCE accompanying exhibits will be available Act, as amended (19 U.S.C. 81a–81u), for public inspection at each of the and the regulations of the Board (15 CFR Foreign-Trade Zones Board following locations: part 400). It was formally filed on March [Docket 10±2000] U.S. Department of Commerce, Export 15, 2000. Assistance Center, 2001 Sixth Ave., The Coastal facilities (56.5 acres) are Foreign-Trade Zone 86ÐTacoma, WA; Suite 650, Seattle, WA 98121 located at 2401 Eisenhower Boulevard, Application for Subzone, Tesoro Office of the Executive Secretary, Port Everglades, Florida. The terminal Petroleum Corporation, Anacortes, WA Foreign-Trade Zones Board, Room facilities (72 employees), are used for 4008, U.S. Department of Commerce, the receipt, storage, blending and An application has been submitted to the Foreign-Trade Zones Board (the 14th and Pennsylvania Avenue, N.W., distribution of jet fuel, gasoline, crude Board) by the Port of Tacoma, grantee of Washington, D.C. 20230 oil, asphalt, distillates, residual fuels FTZ 86, requesting special-purpose Dated: March 16, 2000. and motor fuel blending stocks for the subzone status for the oil refinery domestic and foreign markets. Some of Dennis Puccinelli, complex of Tesoro Petroleum the products will be sourced from Acting Executive Secretary. Corporation, located in Anacortes, abroad, or from U.S. refineries under [FR Doc. 00–7094 Filed 3–21–00; 8:45 am] Washington. The application was FTZ procedures. BILLING CODE 3510±DS±P submitted pursuant to the provisions of Zone procedures would exempt the Foreign-Trade Zones Act, as Coastal from Customs duties and federal amended (19 U.S.C. 81a–81u), and the DEPARTMENT OF COMMERCE excise taxes on exports and on foreign regulations of the Board (15 CFR part status jet fuel used for international 400). It was formally filed on March 15, International Trade Administration flights. On domestic sales, the company 2000. [A±588±835] would be able to defer Customs duty The refinery complex (903 acres, 300 payments until the products leave the employees) is located on West March Oil Country Tubular Goods From facility. The application indicates that Point Road in Anacortes, Washington the savings from FTZ procedures will Japan; Final Results of Antidumping (Skagit County), some 100 miles north Duty Administrative Review help improve the facility’s international of Tacoma. The refinery (108,200 BPD) competitiveness. is used to produce fuels and liquid AGENCY: Import Administration, No specific manufacturing request is petroleum gases, including gasoline, jet International Trade Administration, being made at this time. Such a request fuel, distillates, residual fuels, naphthas, Department of Commerce. would be made to the Board on a case- motor fuel blendstocks, liquefied ACTION: Notice of final results of by-case basis. natural gas, butane, isobutane, and antidumping duty administrative In accordance with the Board’s propane. Refinery by-products include review. regulations, a member of the FTZ Staff petroleum coke, asphalt and sulfur. has been designated examiner to Some 68 percent of the crude oil (96 SUMMARY: On September 7, 1999, the investigate the application and report to percent of inputs), and some naphthas, Department of Commerce (the the Board. virgin gas oil and field butanes are Department) published the preliminary Public comment is invited from sourced abroad. Zone procedures would results of administrative review of the interested parties. Submissions (original exempt the refinery from Customs duty antidumping duty order on oil country and 3 copies) shall be addressed to the payments on the foreign products used tubular goods (OCTG) from Japan (64 FR Board’s Executive Secretary at the in its exports. On domestic sales, the 48589). The merchandise covered by address below. The closing period for company would be able to choose the this order is hollow steel products of their receipt is May 22, 2000. Rebuttal Customs duty rates that apply to certain circular cross-section, including oil well comments in response to material petrochemical feedstocks and refinery casing, tubing, and drill pipe, of iron submitted during the foregoing period by-products (duty-free) by admitting (other than cast iron) or steel (both may be submitted during the subsequent incoming foreign crude oil in non- carbon and alloy), whether seamless or 15-day period to June 5, 2000. privileged foreign status. The duty rates welded, whether or not conforming to A copy of the application and on inputs range from 5.25 cents/barrel American Petroleum Institute (API) or accompanying exhibits will be available to 10.5 cents/barrel. The application non-API specifications, whether for public inspection at each of the indicates that the savings from zone finished or unfinished (including green following locations: procedures would help improve the tubes and limited service OCTG U.S. Department of Commerce, Export refinery’s international competitiveness. products). The review covers one Assistance Center, 200 E. las Olas In accordance with the Board’s manufacturer. The period of review is Blvd. (Sun Sentinel Building), Suite regulations, a member of the FTZ Staff August 1, 1997 through July 31, 1998. 1600, Ft. Lauderdale, Florida 33301– has been designated examiner to Based on our analysis of the 2284 investigate the application and report to comments received, we have made Office of the Executive Secretary, the Board. changes in the margin calculations. The Foreign-Trade Zones Board, Room Public comment is invited from final weighted-average dumping margin 4008, U.S. Department of Commerce, interested parties. Submissions (original for the reviewed firm is listed below in 14th & Pennsylvania Avenue, NW, and 3 copies) shall be addressed to the the section entitled ‘‘Final Results of the Washington, DC 20230 Board’s Executive Secretary at the Review.’’

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EFFECTIVE DATE: March 22, 2000. 7304.29.50.30, 7304.29.50.45, Manufacturer/exporter Margin FOR FURTHER INFORMATION CONTACT: 7304.29.50.60, 7304.29.50.75, (percent) Thomas Gilgunn or Mark Hoadley, 7304.29.60.15, 7304.29.60.30, Import Administration, International 7304.29.60.45, 7304.29.60.60, Sumitomo Metal Industries ...... 0.00 Trade Administration, U.S. Department 7304.29.60.75, 7305.20.20.00, of Commerce, Washington, D.C. 20230; 7305.20.40.00, 7305.20.60.00, Cash Deposit Requirements telephone: (202) 482–0648 and (202) 7305.20.80.00, 7306.20.10.30, The following deposit requirements 482–0666, respectively. 7306.20.10.90, 7306.20.20.00, will be effective upon publication of SUPPLEMENTARY INFORMATION: 7306.20.30.00, 7306.20.40.00, this notice of final results of administrative review for all shipments The Applicable Statute 7306.20.60.10, 7306.20.60.50, 7306.20.80.10, and 7306.20.80.50. of oil country tubular goods from Japan Unless otherwise indicated, all Although the HTSUS subheadings are entered, or withdrawn from warehouse, citations to the Tariff Act of 1930, as provided for convenience and customs for consumption on or after the date of amended (the Act), are references to the purposes, our written description of the publication, as provided by section provisions effective January 1, 1995, the scope of this review is dispositive. 751(a)(1) of the Act: (1) The cash deposit effective date of the amendments made rates for the reviewed companies will be to the Act by the Uruguay Round Analysis of Comments Received the rates shown above except that, for Agreements Act. In addition, unless firms whose weighted-average margins otherwise indicated, all citations to the All issues raised in the case and are less than 0.5 percent and therefore Department’s regulations are to 19 CFR rebuttal briefs by parties to this de minimis, the Department shall Part 351 (1999). administrative review are addressed in require no deposit of estimated the ‘‘Issues and Decision Memorandum’’ Background antidumping duties; (2) for previously (Decision Memo) from Joseph A. reviewed or investigated companies not On September 7, 1999, the Spetrini, Deputy Assistant Secretary, listed above, the cash deposit rate will Department published the preliminary Import Administration, to Robert S. continue to be the company-specific rate results of administrative review of the LaRussa, Assistant Secretary for Import published for the most recent period; (3) antidumping duty order on OCTG from Administration, dated March 6, 2000, if the exporter is not a firm covered in Japan (64 FR 48589). We invited parties which is hereby adopted and this review, a prior review, or the to comment on our preliminary results incorporated by reference into this original less-than-fair-value (LTFV) of review. The Department has notice. A list of the issues which parties investigation, but the manufacturer is, conducted this administrative review in have raised and to which we have accordance with section 751 of the Act. the cash deposit rate will be the rate responded, all of which are in the established for the most recent period Scope of Review Decision Memo, is attached to this for the manufacturer of the The merchandise covered by this notice as an Appendix. Parties can find merchandise; and (4) the cash deposit order consists of oil country tubular a complete discussion of all issues rate for all other manufacturers or goods, hollow steel products of circular raised in this review and the exporters will continue to be 44.2 cross-section, including oil well casing, corresponding recommendations in this percent. This rate is the ‘‘All Others’’ tubing, and drill pipe, of iron (other public memorandum which is on file in rate from the LTFV investigation. than cast iron) or steel (both carbon and the Central Records Unit, located in These deposit requirements shall alloy), whether seamless or welded, room B–099 of the main Department of remain in effect until publication of the whether or not conforming to American Commerce Building. In addition, a final results of the next administrative Petroleum Institute (API) or non-API complete version of the Decision Memo review. specifications, whether finished or can be accessed directly on the Web at This notice also serves as a final unfinished (including green tubes and www.ita.doc.gov/importladmin/ reminder to importers of their limited service OCTG products). This records/frn/. The paper copy and responsibility under 19 CFR 351.402(f) scope does not cover casing, tubing, or electronic version of the Decision to file a certificate regarding the drill pipe containing 10.5 percent or Memorandum are identical in content. reimbursement of antidumping duties more of chromium. The products prior to liquidation of the relevant subject to this order are currently Changes Since the Preliminary Results entries during this review period. Failure to comply with this requirement classified in the Harmonized Tariff Based on our analysis of comments could result in the Secretary’s Schedule of the United States (HTSUS) received, we have made certain changes presumption that reimbursement of under item numbers: 7304.21.30.00, in the margin calculations. We have also 7304.21.60.30, 7304.21.60.45, antidumping duties occurred and the corrected certain programming and 7304.21.60.60, 7304.29.10.10, subsequent assessment of doubled clerical errors in our preliminary 7304.29.10.20, 7304.29.10.30, antidumping duties. results, where applicable. Any alleged 7304.29.10.40, 7304.29.10.50, This notice also serves as a reminder programming or clerical errors with 7304.29.10.60, 7304.29.10.80, to parties subject to administrative 7304.29.20.10, 7304.29.20.20, which we do not agree are discussed in protective orders (APO) of their 7304.29.20.30, 7304.29.20.40, the relevant sections of the ‘‘Decision responsibility concerning the return or 7304.29.20.50, 7304.29.20.60, Memorandum,’’ accessible in B–099 and destruction of proprietary information on the Web at www.ita.doc.gov/ disclosed under APO in accordance 7304.29.20.80, 7304.29.30.10, l 7304.29.30.20, 7304.29.30.30, import admin/records/frn/. with 19 CFR 351.305. Timely written 7304.29.30.40, 7304.29.30.50, Final Results of Review notification of the return/destruction of 7304.29.30.60, 7304.29.30.80, APO materials or conversion to judicial 7304.29.40.10, 7304.29.40.20, We determine that the following protective order is hereby requested. 7304.29.40.30, 7304.29.40.40, percentage weighted-average margins Failure to comply with the regulations 7304.29.40.50, 7304.29.40.60, exist for the period August 1, 1997 and terms of an APO is a violation 7304.29.40.80, 7304.29.50.15, through July 31, 1998: which is subject to sanction.

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We are issuing and publishing this applications will be accepted by apparent stock condition for many of determination and notice in accordance facsimile machine submission. the important species of the Chesapeake with sections section 751(a)(1) and Successful applicants generally will Bay. 777(i) of the Act. be selected approximately 90 days after D. Funding Availability. (1) This Dated: March 6, 2000. the date of publication in the Federal solicitation announces that funding of Register of this notice. The earliest date Robert S. LaRussa, up to $285,000 will be available for new for awards will be approximately 180 initiatives in FY00 for research projects Assistant Secretary for Import days after the date of publication in the Administration. providing regional information required Federal Register of this notice. for stock assessments. (2) This Appendix—List of Issues ADDRESSES: Send applications to: Derek solicitation also announces that funding 1. Bona Fide Sale Orner, National Marine Fisheries of up to $500,000 is anticipated to be 2. Discounts and Rebates Service, NOAA Chesapeake Bay Office, available for projects providing 3. Credit and Warranty Expenses 410 Severn Avenue, Suite 107A, information on multispecies 4. CEP Profit Annapolis, MD 21403. management or research in Chesapeake 5. Clerical Errors FOR FURTHER INFORMATION CONTACT: Bay. [FR Doc. 00–7092 Filed 3–21–00; 8:45 am] Derek Orner, 410/267–5660; or II. Areas of Special Emphasis BILLING CODE 3510±DS±P e-mail: [email protected]. SUPPLEMENTARY INFORMATION: A. Proposals should exhibit familiarity with related work that is DEPARTMENT OF COMMERCE I. Introduction completed or ongoing. Where A. Authority. The Fish and Wildlife appropriate, proposals should be multi- National Oceanic and Atmospheric disciplinary. Coordinated efforts Administration Act of 1956, as amended, at 16 U.S.C. 753 (a), authorizes the Secretary of involving multiple eligible applicants or [Docket No. 000301055±0055±01; I.D. Commerce (Secretary), for the purpose persons are encouraged. Eligible women 012400A] of developing adequate, coordinated, and minority owned and operated non- profit organizations are encouraged to RIN: 0648±ZA81 cooperative research and training programs for fish and wildlife resources, apply. (See Section III.A.) Financial Assistance for Chesapeake to continue to enter into cooperative (1) Stock Assessment Research - Bay Stock Assessments to Encourage agreements with colleges and Consideration for funding will be given Research Projects for Improvement in universities, with game and fish to applications that address the the Stock Conditions of the departments of the several states, and following stock assessment research and Chesapeake Bay Fisheries with non-profit organizations relating to management priorities for the cooperative research units. The Chesapeake Bay. These priorities are not AGENCY: National Marine Fisheries Departments of Commerce (DOC), listed in any implied order: Service (NMFS), National Oceanic and Justice, State, the Judiciary, and Related (a) Conduct assessments of the Atmospheric Administration (NOAA), Agencies Appropriations Act of 2000 abundance, productivity, and Commerce. makes funds available to the Secretary. distribution of important Chesapeake ACTION: Notice of availability of funds. B. Catalog of Federal Assistance. The Bay finfish and shellfish resources research to be funded is in support of together with the patterns of their SUMMARY: A total of up to $540,000 in the Chesapeake Bay Studies (CFDA exploitation. Successful proposals may Fiscal Year (FY) 2000 funds is available 11.457), under the Chesapeake Bay include research on life history through the NOAA/NMFS Chesapeake Stock Assessment Committee (CBSAC). characteristics, stock-recruitment Bay Office to assist interested state C. Program Description. CBSAC was relationships, and schedules of vital fishery agencies, academic institutions, established in 1985 to plan and review rates. Descriptions of stock structure, and other nonprofit organizations Bay-wide resource assessments, demographics and spatial distribution relating to cooperative research units, in coordinate relevant actions of state and would also be appropriate. It is hoped carrying out research projects to provide Federal agencies, report on fisheries that proposals would combine analyses information for Chesapeake Bay Stock status and trends, and determine, fund of existing fishery-dependent and Assessments through cooperative and review research projects. The fishery-independent data. Proposals agreements. About $285,000 of the base program implements a Bay-wide plan focusing on hard clams are particularly amount are available to initiate new for the assessment of commercially, encouraged. projects in FY 2000, as described in this recreationally, and selected ecologically (b) Design of a method/survey to announcement. In addition, it is important species in the Chesapeake estimate the Baywide abundance of anticipated that supplemental FY 2000 Bay. In 1988, CBSAC developed a Bay- oysters in Chesapeake Bay. The purpose funds, up to $500,000, will be provided wide Stock Assessment Plan, in of this survey will be to track progress to investigate multispecies management response to provisions in the towards achieving the Chesapeake Bay and research in Chesapeake Bay. NMFS Chesapeake Bay Agreement of 1987. The Program goal of increasing the oyster issues this notice describing the Plan identified that key obstacles to population in Chesapeake Bay ten-fold conditions under which eligible assessing Bay stocks was the lack of by the year 2010. The investigators applications will be accepted and how consistent, Bay-wide, fishery-dependent should take into consideration existing NMFS will determine which and fishery-independent data. Research state surveys that already fill various applications will be selected for projects funded since 1988 have focused data needs. funding. on developing and improving fishery- (c) Blue Crab Recreational Survey—A DATES: Applications for funding under independent surveys and catch statistics substantial blue crab recreational fishery this program must be received by 5 p.m. for key Bay species, such as striped exists in the Chesapeake Bay which has eastern standard time on April 21, 2000. bass, oysters, blue crabs and alosids. never been fully assessed. Recent work Applications received after that time Stock assessment research is essential, includes the development of methods will not be considered for funding. No given the recent declines in harvest and for conducting a Baywide recreational

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(i) Review the work previously commitment, although the priorities are (e) Design and develop an integrated, conducted and begin implementation on not listed in any implied order: Baywide blue crab mark and recapture a Baywide scale based on earlier work; (a) Fishery-independent Surveys. study that will provide information on (ii) Provide reliable estimates of CBSAC seeks proposals to plan, develop growth, natural mortality, fishing recreational catch, fishing effort, catch and initiate coordinated Baywide mortality, size selectivity, catchability, rates, size composition, and sex ratios surveys to regularly estimate species reporting rates and the distribution of for all components of the blue crab abundances, trends and biological harvest among the fisheries. Results recreational fisheries. characteristics (e.g., age/size structure, should also be informative with respect (d) Improvement or implementation recruitments, growth and mortality to the reproductive frequency of female of the collection of fishery-dependent rates, food habitats) for economically crabs, and longevity. Recognizing the data within Chesapeake Bay. Projects and ecologically important key species. scope of this project, subcomponents can involve either the commercial and/ Proposals within this task may: that will help in contributing to the or recreational components of the (i) Review and assess existing fishery development of a Baywide framework fishery. Projects should focus on independent sampling programs for this project will be accepted. collecting biological data (size, sex, age, conducted by regional agencies to (f) Improvement or implementation of diet), and catch and effort data from evaluate their potential applicability to the collection of fishery-dependent data Bay-wide harvests of significant finfish the Chesapeake Bay. This may include within Chesapeake Bay. Projects can and shellfish fisheries to provide evaluation of the use of fixed and involve either the commercial and/or accurate, statistically representative random sampling protocols, with or recreational components of the fishery. information on the spatial and temporal without stratification, and the sampling Baywide Projects should focus on characteristics of the harvest. Proposals characteristics of different gear types. collecting biological data (size, sex, age, may involve designs for port-sampling (ii) Develop and initiate a Baywide, diet), and catch and effort data from of landings, or on-board anaysis of the coordinated, fishery-independent harvests of significant finfish and catch, analysis of intercepts and survey that may include multiple gear, shellfish fisheries to provide accurate, telephone surveys. Proposals that such as benthic and midwater trawling, statistically representative information document information on by-catch and hydroacoustics to characterize the on the spatial and temporal would be relevant. status and trends in the abundance, characteristics of the harvest. Proposals The proposals should recognize distribution and characteristics of key may involve designs for port-sampling current efforts to collect biological data Chesapeake Bay finfish and shellfish. of landings, or on-board anaysis of the from Bay fisheries and attempt to define (b) Retrospective Analyzes. CBSAC catch, analysis of intercepts and the optimal, regional (Maryland, seeks proposals to document and telephone surveys. Proposals that Potomac River Fisheries Commission, quantify multispecies interactions document information on by-catch and Virginia jurisdictions) sampling among economically and ecologically would be relevant. program. Proposals focusing on the blue important finfish and shellfish within The proposals should recognize crab commercial fishery are particularly the Chesapeake Bay. The proposed work current efforts to collect biological data encouraged. should lead to the identification of the from Bay fisheries and attempt to define (2) Multispecies Management or πstrong’ interactions within the the optimal, regional (Maryland, Research - The Chesapeake Bay is a Chesapeake Bay fisheries system. Work Potomac River Fisheries Commission, complex and dynamic ecosystem that may involve analysis of commercial and and Virginia jurisdictions) sampling supports many fisheries that are recreational catch and effort data, the program. Proposals focusing on the blue economically important both regionally analysis of the patterns of diets and crab commercial fishery and its effect on and nationally. To date, these resources energy flows within the fisheries the Chesapeake Bay ecosystem are have been managed on a single species system, or multivariate analyzes of encouraged. basis. This single species approach has abundance relationships within the B. Applications addressing the served us well; however, the existence fisheries system and their relationship priorities should build upon, or take of both biological and technical (by- to environmental and habitat into account, any related past or current catch) interactions in most of characteristics. work. Chesapeake Bay fisheries point to the (c) Multispecies Assessment. CBSAC need to move toward a wider, seeks proposals to apply and assess III. How to Apply multispecies perspective. This alternative multispecies fisheries A. Eligible applicants. Applications viewpoint was wholeheartedly endorsed models to the Chesapeake Bay fisheries for cooperative agreements under the at a workshop of regional, national and systems. Examples of possible Chesapeake Bay Studies Program may international scientists held to address approaches include multispecies be submitted, in accordance with the the potential utility of multispecies biomass dynamic, multispecies yield procedures set forth in this notice, by approaches to fisheries management in per recruit, multispecies bioenergetics, any state game and fish department, the Chesapeake Bay (STAC Publication and multispecies simulation models. college or university, or other nonprofit 98–002, www.chesapeake.org). The Model approaches should seek to organizations relating to cooperative ultimate objective of this research and predict constraints and patterns in the research units. Other Federal agencies monitoring is to lead to the fisheries production of the Chesapeake or institutions are not eligible to receive development of an ecosystem plan for Bay system. Federal assistance under this notice. Chesapeake Bay fisheries, within which (d) Technical Interactions (By-catch). DOC/NOAA/NMFS employees, the rational exploitation of individual CBSAC seeks proposals to quantify and including full-time, part-time and species can be determined. assess the importance of technical intermittent personnel are not eligible to Consideration for funding will be interactions, e.g., by-catch within the submit an application under this given to applications that address the Chesapeake Bay fishery. Proposals solicitation or aid in the preparation of following multispecies management and should quantify the species involved, an application, except to provide research priorities for the Chesapeake the distribution and magnitude of by- information on program goals, funding

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00010 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15309 priorities, application procedures, and continuation. Publication of this notice described in the application. completion of application forms. Since does not obligate NMFS to award any Applications are not to be bound in any this is a competitive program, assistance specific cooperative agreement or to manner and should be one-sided. All will not be provided in conceptualizing, obligate any part of the entire amount of incomplete applications will be developing, or structuring proposals. funds available. returned to the applicant. Applicants Eligible applicants outside the C. Cost-Sharing requirements. must submit one signed original and Chesapeake Bay region may submit Applications must reflect the total two copies of the complete application. proposals, as long as their objectives budget necessary to accomplish the 2. Applications must be submitted in support the technical and management project, including contributions and/or the following format: priorities of the Chesapeake Bay, as donations. Cost sharing is not required (a) Cover sheet: An applicant must use defined in section II.A. All solicited under the Chesapeake Bay Stock OMB Standard Form 424 (revised 4/92) proposals received by the closing date Assessment Research Program. as the cover sheet for each project. will be considered by NMFS. However, cost sharing is encouraged to Applicants may obtain copies of these Pursuant to Executive Orders 12876, enhance the value of a project, and in forms from the NOAA Grants 12900, and 13021, the Department of case of a tie in considering proposals for Management Division, the NOAA Commerce National Oceanic and funding, cost-sharing may affect the Chesapeake Bay Office (see ADDRESSES) Atmospheric Administration (DOC/ final decision. The appropriateness of or from the NOAA Grants website, http:/ NOAA) is strongly committed to all cost-sharing will be determined on /www.rdc.noaa.gov/grants/. broadening the participation of the basis of guidance provided in (b) Project summary: Each proposal Historically Black Colleges and applicable Federal cost principles. If an must contain a summary of not more Universities, Hispanic Serving applicant chooses to share cost, and if than one page that provides the Institutions, and Tribal Colleges and that application is selected for funding, following: Universities in its educational and the applicants will be bound by the (1) Project title. research programs. The DOC/NOAA percentage of cost sharing reflected in (2) Project status (new). vision, mission, and goals are to achieve the award documents. (3) Project duration (beginning and full participation by Minority Serving The non-Federal share may include ending dates). Institutions (MSI) in order to advance funds received from private sources or (4) Name, address, and telephone the development of human potential, to from state or local governments or the number of applicant. strengthen the nation’s capacity to value of in-kind contributions. Federal (5) Principal Investigator(s). provide high-quality education, and to funds may not be used to meet the non- (6) Project objectives. increase opportunities for MSIs to Federal share of matching funds, except (7) Summary of work to be performed. participate in and benefit from Federal as provided by Federal statute. In-kind (8) Total Federal funds requested. financial assistance programs. DOC/ contributions may be in the form of, but (9) Cost-sharing to be provided from NOAA encourages all applicants to are not limited to, personal services non-Federal sources, if any. Specify include meaningful participation of rendered in carrying out functions whether contributions are project- MSIs. related to the project, and permission to related cash or in-kind. B. Duration and terms of funding. use real or personal property owned by (10) Total project cost. Under this solicitation, NMFS will fund others (for which consideration is not (c) Project description: Each project Chesapeake Bay Stock Assessment required) in carrying out the project. To must be completely and accurately Research Projects for 1-year cooperative support the budget, the applicant must described. Each project description may agreements. The cooperative agreement describe briefly the basis for estimating be up to 15 pages in length. If an has been determined as the appropriate the value of the non-Federal funds application is awarded, NMFS will funding instrument because of the derived from in-kind contributions. make all portions of the project substantial involvement of NMFS in: The total cost of a project begins on description available to the public for 1. Developing program research the effective date of a cooperative review; therefore, NMFS cannot priorities; agreement between the applicant and an guarantee the confidentiality of any 2. Evaluating the performance of the authorized representative of the U.S. information submitted as part of any program for effectiveness in meeting Government and ends on the date project, nor will NMFS accept for regional goals for Chesapeake Bay stock specified in the award. Accordingly, the consideration any project requesting assessments; time expended and costs incurred in confidentiality of any part of the project. 3. Monitoring the progress of each either the development of a project or Each project must be described as funded project; the financial assistance application, or follows: 4. Holding periodic workshops with in any subsequent discussions or (1) Identification of problem(s): investigators; and negotiations prior to the award, are Describe the specific problem to be 5. Working with recipients in neither reimbursable nor recognizable as addressed (see section II). preparation of annual reports part of the recipient’s cost share. (2) Project objectives: This is one of summarizing current accomplishments D. Format. 1. Applications for project the most important parts of the Project of the Chesapeake Bay Stock funding must be complete. Applicants Proposal. Use the following guidelines Assessment Committee. Project dates must identify the specific research for stating the objective of the project. should be scheduled to begin no later priority or priorities to which they are (a) Keep it simple and easily than 1 October 2000. Cooperative responding. For applications containing understandable. agreements are approved on an annual more than one project, each project (b) Be as specific and quantitative as basis but may be considered eligible for component must be identified possible. continuation beyond the first project individually using the format specified (c) Specify the ‘‘what and when;’’ and budget period subject to the in this section. If an application is not avoid the ‘‘how and why.’’ approved scope of work, satisfactory in response to a priority, it should be so (d) Keep it attainable within the time, progress, and availability of funds at the stated. Applicants should not assume money, and human resources available. total discretion of NMFS. However, prior knowledge on the part of NMFS as (e) Use action verbs that are there are no assurances for such to the relative merits of the project accomplishment oriented.

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(3) Need for Government financial NOAA Oyster Disease Research fully understood, or the value of the assistance: Demonstrate the need for Program, the state/Federal Chesapeake project may be underestimated. The assistance. Any appropriate database to Bay Program, etc.) this project would absence of adequate supporting substantiate or reinforce the need for the affect and describe the relationship documentation may cause reviewers to project should be included. Explain between the project and those plans or question assertions made in describing why other funding sources cannot fund activities. the project and may result in lower all the proposed work. List all other (7) Project management: Describe how ranking of the project. Information sources of funding that are or have been the project will be organized and presented in this section should be sought for the project. managed. Include resumes of principal clearly referenced in the project (4) Benefits or results expected: investigators. List all persons directly description. Identify and document the results or employed by the benefits to be derived from the proposed applicant who will be involved with IV. Review Process and Criteria activities. the project. If a consultant and/or A. Initial Evaluation of Applications. (5) Project statement of work: The subcontractor is selected prior to Applications will be reviewed by NOAA Statement of Work is the scientific or application submission, include the to assure that they meet all requirements technical action plan of activities that name and qualifications of the of this announcement, including are to be accomplished during each consultant and/or subcontractor and the eligibility and relevance to the budget period of the project. This process used for selection. Chesapeake Bay Stock Assessment description must include the specific (8) Monitoring of project performance: Research Program. methodologies, by project job activity, Identify who will participate in B. Consultation with Experts in the proposed for accomplishing the monitoring the project. Field of Stock Assessment Research. For proposal’s objective(s). If the work (9) Project impacts: Describe how applications meeting the requirements described in this section does not these products or services will be made of this solicitation, NMFS will conduct contain sufficient detail to allow for available to the fisheries and a technical evaluation of each project proper technical evaluation, NMFS will management communities. prior to any other review. This review (10) Evaluation of project: The not consider the application for funding normally will involve experts from both applicant is required to provide an and will return it to the applicant. non-NOAA and NOAA organizations. Investigators submitting proposals in evaluation of project accomplishments All comments submitted to NMFS will response to this announcement are at the end of each budget period and in be taken into consideration in the strongly encouraged to develop inter- the final report. The application must technical evaluation of projects. institutional, inter-disciplinary research describe the methodology or procedures Reviewers will be asked to comment on teams in the form of single, integrated to be followed to determine technical the following evaluation criteria: proposals or as individual proposals feasibility, or to quantify the results of 1. Problem description and that are clearly linked together. Such the project in promoting increased conceptual approach for resolution, collaborative efforts will be factored into production, product quality and safety, especially the applicant’s the final funding decision. management effectiveness, or other comprehension of the problem(s), Each Statement of Work must include measurable factors. familiarity with related work that is (11) Total project costs: Total project the following information: completed or ongoing, and the overall (a) The applicant’s name. costs is the amount of funds required to concept proposed to resolve the (b) The inclusive dates of the budget accomplish what is proposed in the problem(s) (30 points). period covered under the Statement of Statement of Work, and includes 2. Soundness of project design/ Work. contributions and donations. All costs technical approach, especially whether (c) The title of the proposal. must be shown in a detailed budget. A the applicant provided sufficient (d) The scientific or technical standard budget form (SF–424A) is information to technically evaluate the objectives and procedures that are to be available from the offices listed and on project and, if so, the strengths and accomplished during the budget period. the internet (see ADDRESSES). NMFS will weaknesses of the technical design Devise a detailed set of objectives and not consider fees or profits as allowable proposed for problem resolution (35 procedures to answer who, what, costs for grantees. Additional cost detail points). how, when, and where. The may be required prior to a final analysis 3. Project management and experience procedures must be of sufficient detail of overall cost allowability, allocability, and qualifications of to enable competent workers to be able and reasonableness. The date, period personnel, including organization and to follow them and to complete covered, and findings for the most management of the project, and the scheduled activities. recent financial audit performed, as well personnel experience and qualifications (e) Location of the work. as the name of the audit firm, the (15 points). (f) A list of all project personnel and contact person, and phone number and 4. Justification and allocation of the their responsibilities. address, must be also provided. budget in terms of (g) A milestone table that summarizes (d) Supporting documentation: the work to be performed (20 points). the procedures (from item III.D.2.c(5)(d)) Provide any required documents and C. Review Panel. NMFS will convene that are to be attained in each project any additional information necessary or a review panel consisting of at least month covered by the Statement of useful to the description of the project. three regionally recognized experts in Work. Table format should follow The amount of information given in this the scientific and management aspects sequential month rather than calendar section will depend on the type of of stock assessment research who will month (i.e., Project period Month 1, project proposed, but should be no more conduct reviews as follows: Month 2, versus October, November). than 20 pages. The applicant should 1. Evaluate technical reviews. (6) Federal, state and local present any information that would 2. Provide independent review based government activities: List any programs emphasize the value of the project in on the same criteria as the technical (Federal, state, or local government or terms of the significance of the problems review. activities, including Sea Grant, state addressed. Without such information, 3. Discuss all review comments as a Coastal Zone Management Programs, the merits of the project may not be panel.

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4. Provide individual panelist scores related section of the certification form cost rates above 25 percent may use the and suggestions for modifications (i.e., prescribed above applies; amount above the 25–percent level as budget, personnel, technical approach, (b) Drug-free workplace—Grantees (as part of the non-Federal share. etc.). defined at 15 CFR 26.605) are subject to Information must be included with the D. Funding Decision. 1. Applications 15 CFR 26, subpart F, ‘‘Governmentwide application of the current, approved, will be ranked by NMFS into two Requirements for Drug-Free Workplace negotiated Indirect Cost Agreement with groups: (a) Recommended, and (b) not (Grants),’’ and the related section of the the Federal Government by indicating a recommended. certification form prescribed above web site address or by providing a 2. After projects have been evaluated applies; current copy, if no web site is available. and ranked for funding, the Chief of the (c) Anti-lobbying—Persons (as defined 3. Past Performance—Unsatisfactory NOAA/NMFS Chesapeake Bay Office, in at 15 CFR 28.105) are subject to the performance under prior Federal awards consultation with the Assistant lobbying provisions of 31 U.S.C. 1352, may result in an application not being Administrator (AA) for Fisheries, ‘‘Limitation on use of appropriated considered for funding. In addition, any NOAA, will determine the projects to be funds to influence certain Federal recipient and/or researcher who is past recommended for funding based upon contracting and financial transactions, due for submitting acceptable progress the technical evaluations, panel review and the lobbying section of the reports on any previous project funded and the evaluation factors, and certification form prescribed above under this program may be ineligible to determine the amount of funds available applies to applications/bids for grants, be considered for new awards until the for the program. Numeric ranking will cooperative agreements, and contracts delinquent reports are received, be the major consideration for deciding for more than $100,000, and loans and reviewed and deemed acceptable by which of the ‘‘recommended’’ proposals loan guarantees for more than $150,000, NMFS. or the single family maximum mortgage will be selected for funding. In making 4. Financial Management limit for affected programs, whichever is the final selections, NOAA/NMFS may Certifications/preaward accounting greater; and consider costs, geographical distribution survey—Successful applicants, at the (d) Anti-lobbying disclosure—Any discretion of the NOAA Grants Officer, and duplication with other federally applicant who has paid or will pay for funded projects. The Chief of the may be required to have their financial lobbying using any funds must submit management systems certified by an NOAA/NMFS Chesapeake Bay Office an SF-LLL, ‘‘Disclosure of Lobbying will prepare a written justification for independent public accountant as being Activities,’’ as required under 15 CFR in compliance with Federal standards any recommendations for funding that part 28, appendix B. fall outside the ranking order, or for any specified in the applicable OMB 4. Lower Tier Certifications— Circulars prior to execution of the cost adjustments. Awards are not Recipients shall require applicants/ necessarily made to the highest ranked award. Any first-time applicant for bidders for subgrants, contracts, Federal grant funds may be subject to a applications. The exact amount of funds subcontracts, or other lower tier covered awarded to each project will be preaward accounting survey by the DOC transactions at any tier under the award specified in the applicable OMB determined in preaward negotiations to submit, if applicable, a completed between the applicant, the Grants Circulars/Code of Federal Regulations Form CD–512, ‘‘Certifications Regarding prior to execution of the award. Office, and the NOAA/NMFS Debarment, Suspension, Ineligibility Chesapeake Bay Office staff. 5. Delinquent Federal debts—No and Voluntary Exclusion-Lower Tier award of Federal funds shall be made to V. Administrative Requirements Covered Transactions and Lobbying’’ an applicant who has an outstanding and disclosure form SF-LLL, A. Obligations of the Applicant. 1. delinquent Federal debt until either: ‘‘Disclosure of Lobbying Activities.’’ a. The delinquent account is paid in Deliverables—In addition to periodic Form CD–512 is intended for the use of full; status and budget reports, recipients recipients and should not be transmitted b. A negotiated repayment schedule is must submit up to an eight page to DOC. An SF-LLL submitted by any established and at least one payment is summary of project work and results tier recipient or subrecipient should be received; or that will be compiled in an annual submitted to DOC in accordance with c. Other arrangements satisfactory to report of Chesapeake Bay Stock the instructions contained in the award DOC are made. Assessment Research Program results. document. B. Other requirements. 1. 6. Name checks—Potential recipients 2. Periodic Workshops—Investigators Federal policies and procedures— may be required to submit an will be expected to attend one or two Recipients and subrecipients are subject ‘‘Identification-Application for Funding workshops with other Stock Assessment to all Federal laws and Federal and DOC Assistance’’ Research Program researchers to policies, regulations, and procedures (Form CD–346), which is used to encourage interdisciplinary dialogue applicable to Federal financial ascertain background information on and forge synthesis of results. assistance awards. key individuals associated with the 3. Primary applicant certifications— 2. Indirect Cost rates—The budget potential recipient. All non-profit and All primary applicants must submit a may include an amount for indirect for-profit applicants are subject to a completed Form CD–511, costs if the applicant has an established name check review process. Name ‘‘Certifications Regarding Debarment, indirect cost rate with the Federal checks are intended to reveal if any key Suspension and Other Responsibility government. The total dollar amount of individuals associated with the Matters; Drug-Free Workplace the indirect costs proposed in the applicant have been convicted of or are Requirements and Lobbying,’’ and the application under this program must not presently facing, criminal charges such following explanations are hereby exceed the indirect cost rate negotiated as fraud, theft, perjury, or other matters provided: and approved by a cognizant Federal that significantly reflect on the (a) Nonprocurement debarment and agency prior to the proposed effective applicant’s management honesty or suspension—Prospective participants date of the award. However, the Federal financial integrity. Applicants will also (as defined at 15 CFR 26.105) are subject share of the indirect costs may not be subject to credit check reviews. to 15 CFR 26, ‘‘Nonprocurement exceed 25 percent of the total proposed 7. False statements—A false statement Debarment and Suspension,’’ and the direct costs. Applicants with indirect on the application is grounds for denial

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00013 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15312 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices or termination of funds and grounds for DEPARTMENT OF COMMERCE FOR FURTHER INFORMATION CONTACT: possible punishment by a fine or For permits 900, 1056, and 1140: imprisonment as provided in 18 U.S.C. National Oceanic and Atmospheric Leslie Schaeffer, Portland, OR (ph: 503– 1001. Administration 230–5433, fax: 503–230–5435, e-mail: [email protected]). 8. Preaward activities—If applicants [I.D. 031400F] incur any costs prior to an award being For permits 1036, 1102, 1114, 1115, made, they do so solely at their own risk Endangered Species; Permits 1119, 1203, 1212, and 1246: Robert of not being reimbursed by the Koch, Portland, OR (ph: 503–230–5424, AGENCY: Government. Notwithstanding any National Marine Fisheries fax: 503–230–5435, e-mail: verbal or written assurance that may Service (NMFS), National Oceanic and [email protected]). Atmospheric Administration, have been received, there is no SUPPLEMENTARY INFORMATION: obligation on the part of DOC to cover Commerce. preaward costs. ACTION: Receipt of an application for a Authority scientific research permit (1246); receipt Issuance of permits and permit 9. Purchase of American-made of applications to modify permits (900, equipment and products—Applicants modifications, as required by the 1056, 1119, 1140, 1203); issuance of a Endangered Species Act of 1973 (16 are hereby notified that they will be scientific research permit (1203) and encouraged, to the greatest extent U.S.C. 1531–1543) (ESA), is based on a modifications to existing permits (1036, finding that such permits/modifications: practible, to purchase American-made 1102, 1114, 1115, 1212). equipment and products with funding (1) Are applied for in good faith; (2) would not operate to the disadvantage provided under this program in SUMMARY: Notice is hereby given of the of the listed species which are the accordance with Congressional intent as following actions regarding permits for subject of the permits; and (3) are set forth in the resolution contained in takes of endangered and threatened consistent with the purposes and Pub.L 103–317, sections 607(a) and (b). species for the purposes of scientific policies set forth in section 2 of the research and/or enhancement: NMFS 10. Other—If an application is ESA. Authority to take listed species is has received a permit application from selected for funding, DOC has no subject to conditions set forth in the Douglas County Public Utility District obligation to provide any additional permits. Permits and modifications are No. 1 at East Wenatchee, WA funding in connection with that award. issued in accordance with and are (DCPUD)(1246); NMFS has received Renewal of an award to increase subject to the ESA and NMFS applications for permit modifications funding or extend the period of regulations governing listed fish and from: Northwest Fisheries Science performance is at the total discretion of wildlife permits (50 CFR parts 222–226). Center, NMFS at Seattle, WA (900, 1056, DOC. Those individuals requesting a 1140), U.S. Fish and Wildlife Service at Cooperative agreements awarded hearing on an application listed in this Leavenworth, WA (USFWS)(1119), and pursuant to pertinent statutes shall be in notice should set out the specific Washington Department of Fish and accordance with the Fisheries Research reasons why a hearing on that Wildlife at Olympia, WA (WDFW- Plan (comprehensive program of application would be appropriate (see O)(1203); NMFS has issued a scientific fisheries research) in effect on the date ADDRESSES). The holding of such research permit to WDFW-O (1203); and of the award. hearing is at the discretion of the NMFS has issued modifications to Assistant Administrator for Fisheries, Classification permits to: U.S. Geological Survey at NOAA. All statements and opinions Cook, WA (USGS)(1036), Washington contained in the permit action This action has been determined to be Department of Fish and Wildlife at summaries are those of the applicant ‘‘not significant’’ for purposes of Vancouver, WA (WDFW-V)(1102), and do not necessarily reflect the views Executive Order 12866. WDFW-O (1114), Chelan County Public of NMFS. Applications under this program are Utility District No 1(CCPUD)(1115), and subject to Executive Order 12372, Northwest Fisheries Science Center, Species Covered in This Notice ‘‘Intergovernmental Review of Federal NMFS at Seattle, WA (NWFSC)(1212). The following species and Programs.’’ DATES: Comments or requests for a evolutionarily significant units (ESU’s) Prior notice and an opportunity for public hearing on any of the new are covered in this notice: public comment are not required by the applications or modification requests Chinook salmon (Oncorhynchus Administrative Procedure Act or any must be received at the appropriate tshawytscha): threatened Snake River other law for this notice concerning address or fax number (see ADDRESSES) (SnR) fall, threatened SnR spring/ grants, benefits, and contracts. no later than 5:00 pm Pacific daylight summer, endangered upper Columbia Therefore, a regulatory flexibility time on April 21, 2000. River (UCR) spring, threatened lower analysis is not required for purposes of ADDRESSES: Written comments on any of Columbia River (LCR), threatened Puget the Regulatory Flexibility Act. the new applications or modification Sound (PS), threatened Upper This notice contains collections of requests should be sent to Protected Willamette (UW). information subject to the Paperwork Resources Division, F/NWO3, 525 NE Chum Salmon (O. keta): threatened Reduction Act, which have been Oregon Street, Suite 500, Portland, OR Columbia River (CR). approved by OMB under OMB control 97232–2737 (503–230–5400). Comments Coho salmon (O. kisutch): threatened number 0648–0044. may also be sent via fax to 503–230– Southern Oregon/Northern California 5435. Comments will not be accepted if Coast (SONCC). Dated: March 15, 2000. submitted via e-mail or the internet. Sockeye salmon (O. nerka): Penelope D. Dalton, Documents may also be reviewed by endangered SnR Assistant Administrator for Fisheries, appointment in the Office of Protected Steelhead (O. mykiss): endangered National Marine Fisheries Services. Resources, F/PR3, NMFS, 1315 East- UCR, threatened SnR, threatened [FR Doc. 00–7075 Filed 3–21–00; 8:45 am] West Highway, Silver Spring, MD middle Columbia River (MCR), BILLING CODE 3510±22±F 20910–3226 (301–713–1401). threatened UW.

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To date, final protective regulations juvenile naturally produced and presence of marine derived nutrients. for threatened LCR, PS, and UW artificially propagated SnR spring/ Salmon and steelhead abundance and chinook salmon, CR chum salmon, and summer chinook salmon, juvenile SnR average body size will be determined by SnR, MCR, and UW steelhead under fall chinook salmon, juvenile naturally snorkel surveys or electrofishing section 4(d) of the ESA have not been produced and artificially propagated sampling. ESA-listed juvenile steelhead promulgated by NMFS. Protective UCR steelhead, and juvenile naturally indirect mortalities associated with the regulations are currently proposed for produced and artificially propagated research are also requested. The LCR, PS, and UW chinook salmon and UCR spring chinook salmon associated modification is requested to be valid for CR chum (65 FR 169, January 3, 2000) with a study designed to determine the the duration of permit 1056, which and SnR, MCR, and UW steelhead (64 relative survival of migrating juvenile expires on December 31, 2001. FR 73479, December 30, 1999). This salmonids at The Dalles Dam on the USFWS requests a modification to notice of receipt of applications is Columbia River in the Pacific permit 1119, which authorizes annual issued as a precaution in the event that Northwest. For the modification, takes of adult and juvenile UCR spring NMFS issues final protective regulations NWFSC requests an annual take of chinook salmon and steelhead that prohibit takes of these species. The juvenile MCR steelhead and an increase associated with four studies in the UCR initiation of a 30-day public comment in the annual take of juvenile naturally Basin. The purpose of Study 1 is to period on the applications, including produced UCR steelhead associated gather data on emerging juvenile salmon their proposed takes of LCR, PS, and with the research. The additional take is and steelhead in the Entiat River Basin. UW chinook salmon, CR chum, and requested because steelhead stock The purpose of Study 2 is to conduct SnR, MCR, and UW steelhead does not abundance estimates in the Snake River snorkel surveys in various watersheds presuppose the contents of the eventual and the upper- and mid-Columbia River as part of inventory and artificial protective regulations. have recently been revised. ESA-listed structure monitoring projects. The data obtained from both studies will be used New Application Received juvenile fish are proposed to be collected from the juvenile bypass to determine the survival and DCPUD (1246) requests a 5-year system at John Day Dam, held for a contribution of salmonids released from scientific research permit to authorize period of time (up to six hours), USFWS mitigation hatchery programs in annual takes of juvenile naturally anesthetized, tagged with Passive central WA and to provide technical produced and artificially propagated Integrated Transponders (PIT) or assistance to the agencies, Tribes, and UCR spring chinook salmon and allowed to recover from the anesthetic interest groups that are using and/or steelhead associated with a study and released. PIT tagged fish will be managing aquatic resources in the mid- designed to determine if the spring allowed to recover from the anesthetic, to UCR Basin. Study 3 involves chinook salmon released from the transported and held for one day, and spawning ground surveys in the Entiat Methow River Fish Hatchery, a then released in front of The Dalles Dam River Basin designed to estimate the mitigation hatchery for losses of spillway, sluiceway, turbines, or numbers of adult salmonids utilizing juvenile salmon at Wells Dam, interact downstream from the dam. PIT-tag the basin. Study 4 is designed to adversely with natural salmonid interrogations made at Bonneville Dam evaluate the feasibility of restoring production in the Methow River Basin. and Rice Island under separate endangered UCR steelhead above DCPUD proposes to conduct a authorizations will be used to estimate barriers in Icicle Creek, a tributary to the monitoring program that will determine Wenatchee River. For the modification, relative survival of the release groups. if hatchery produced returning adults USFWS requests an increase in the ESA- ESA-listed juvenile steelhead indirect stray excessively and interbreed with listed juvenile steelhead take associated mortalities associated with the research other genetically distinct stocks, if with Study 1. USFWS determined that are also requested. The modification is hatchery produced juveniles released the current level of steelhead take for requested to be valid for the duration of from acclimation ponds impact Study 1 in Permit 1119 is not enough to permit 900, which expires on naturally rearing salmon and steelhead, conduct a statistically valid assessment December 31, 2000. and if the natural production in the of the juvenile steelhead emigration donor population is diminished when NWFSC requests a modification to from the Entiat River throughout the hatchery reared salmon return to spawn permit 1056, which authorizes annual annual outmigration season. ESA-listed in the natural habitat. The scientific takes of adult and juvenile naturally juvenile steelhead are proposed to be research will provide information on the produced and artificially propagated captured with a rotary-screw trap, success of the hatchery program and the SnR spring/summer chinook salmon sampled for biological information, and potential deleterious impacts to the associated with two studies designed to released. The modification is requested recovery of ESA-listed chinook salmon monitor wild salmon smolt migration to be valid for the duration of permit and steelhead in the Methow River. timing, genetic change, and population 1119, which expires on December 31, ESA-listed juvenile fish are proposed to structure over time. For the 2002. be captured using beach seines or screw modification, NWFSC requests an NWFSC requests a modification to traps, sampled for biological annual take of juvenile MCR steelhead permit 1140, which authorizes annual information and/or marked with fin and an expansion of work locations takes of juvenile SnR sockeye salmon, clips, and released. ESA-listed juvenile associated with a new study designed to juvenile SnR fall chinook salmon, fish indirect mortalities associated with investigate marine derived nutrients in juvenile naturally produced and the research are also requested. DCPUD freshwater streams. New methods for artificially propagated SnR spring/ also requests to collect ESA-listed adult taking fish (dip-netting, minnow- summer chinook salmon, juvenile fish carcasses in the basin and sample trapping, and angling) are also SONCC coho salmon, juvenile naturally them for coded wire tags and tissues. requested. A lethal take of juvenile MCR produced and artificially propagated steelhead is also requested. Juvenile UCR steelhead, and juvenile naturally Modification Requests Received chinook salmon and steelhead are produced and artificially propagated NWFSC requests a modification to proposed to be taken from various UCR spring chinook salmon associated permit 900, which authorizes annual locations in the Snake and John Day with a research study designed to assess takes of juvenile SnR sockeye salmon, River Basins and analyzed for the the relationship between environmental

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00015 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15314 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices variables, selected anthropogenic data will become a key indicator of season for Study 1. The take of ESA- stresses, and bacterial and parasitic salmonid recovery in the Wenatchee listed adult chinook salmon that pathogens on disease-induced mortality River Basin. ESA-listed juvenile fish are WDFW-V requested in March 1999 for of juvenile salmon in selected coastal proposed to be captured, sampled for Study 1 will be included in CRITFC’s estuaries in Oregon and Washington. biological information, and released or scientific research Permit 1134, since The results of the study will benefit captured, marked with fin clips, and CRITFC is targeting adult chinook ESA-listed species by providing a better released. Increases in ESA-listed salmon at Bonneville Dam and understanding of how environmental juvenile fish indirect mortalities requested the identical take as WDFW factors influence disease. For the associated with the research are also in 1999. Modification 1 also authorizes modification, NWFSC requests annual requested. The modification is WDFW-V to collect tissue samples and takes of juvenile PS chinook salmon, requested to be valid for the duration of scales from adult UCR spring chinook juvenile UW chinook salmon, juvenile permit 1203, which expires on salmon that are harvested incidental to LCR chinook salmon, juvenile CR chum December 31, 2003. treaty and non-treaty fisheries in the Columbia River Basin (Study 2). salmon, juvenile UW steelhead, and Permits and Modifications Issued juvenile MCR steelhead associated with Modification 1 to permit 1102 is valid the research. ESA-listed juvenile fish are Notice was published on for the duration of the permit, which proposed to be taken with seines, purse February 11, 1999 (64 FR 6880), that expires on January 31, 2003. seines, and/or fyke nets in selected USGS had applied for a modification to Notice was published on coastal estuaries in Oregon and scientific research permit 1036. March 9, 1999 (64 FR 11444), that Washington and analyzed for pathogen Modification 2 to permit 1036 was WDFW-O had applied for a prevalence and intensity, chemical issued on March 10, 2000, and modification to scientific research analyses, histopathology, and stomach authorizes annual takes of adult and permit 1114. Modification 2 to permit contents. A lethal take of PS chinook juvenile UCR spring chinook salmon in 1114 was issued on March 10, 2000, and salmon is requested and ESA-listed the Hanford Reach of the Columbia authorizes takes of juvenile UCR spring juvenile fish indirect mortalities River to predict the effects of reservoir chinook salmon associated with associated with the research are also drawdown on juvenile salmonids and research designed to collect information requested. The modification is their predators in free-flowing river on adult and juvenile fish migration requested to be valid for the duration of reaches and to compare the effects with timing, survival, travel timing, and a similar study in the Hells Canyon permit 1140, which expires on general fish health. Indirect mortalities Reach of the Snake River. Modification December 31, 2002. of juvenile naturally produced and 2 also authorizes USGS to change the artificially propagated UCR spring WDFW requests a modification to location of fish sampling for a race and chinook salmon associated with Study 1 permit 1203, which authorizes annual residualism study. ESA-listed juvenile are also authorized. Modification 2 to takes of adult and juvenile naturally fish indirect mortalities are also permit 1114 is valid for the duration of produced and artificially propagated authorized. Modification 2 to permit the permit, which expires on UCR spring chinook salmon and 1036 is valid for the duration of the January 31, 2003. steelhead associated with five research permit, which expires on Notice was published on studies in the tributaries and mainstem December 31, 2001. January 15, 1998 (63 FR 2364), that of the UCR. The purpose of Study 1 is Notice was published on CCPUD had applied for a scientific to evaluate the annual production of April 26, 1999 (64 FR 20266), that research permit. Permit 1115 was issued emigrating juvenile salmonid WDFW-V had applied for a modification on April 10, 1998, and authorized the populations. The purpose of Study 2 is to scientific research permit 1102. annual take of juvenile naturally to assess the annual escapement of adult Permit 1102 authorizes WDFW-V produced and artificially propagated salmonids in the UCR Basin. The annual takes of adult UCR steelhead; UCR steelhead associated with research purpose of Study 3 is to conduct adult SnR spring/summer chinook to evaluate the juvenile fish bypass spawning ground surveys to evaluate salmon; and adult SnR fall chinook system installed at Rocky Reach Dam annual salmonid reproductive success salmon associated with two scientific and monitor juvenile fish gas bubble in the UCR Basin. The purpose of Study research studies. The purpose of Study trauma at Rocky Reach and Rock Island 4 is to document the presence or 1 is to determine the number and timing Dams on the Columbia River. NMFS absence of salmonids throughout the of wild and hatchery steelhead adults issued an amendment to permit 1115 on UCR Basin to determine salmonid that pass Bonneville Dam on the March 10, 2000, which authorizes distribution and habitat utilization. The Columbia River. The purpose of Study CCPUD annual direct takes of adult and purpose of Study 5 is to conduct stream 2 is to determine the genetic stock juvenile naturally produced and habitat and salmonid presence/absence identification of anadromous adult fish artificially propagated UCR spring surveys throughout the UCR Basin to harvested in Columbia River fisheries, chinook salmon associated with the determine the potential impacts on, or including fisheries conducted by Native research. An associated indirect benefits to, fish and fish habitat Americans. Data will be used to mortality of juvenile naturally produced resulting from proposed hydraulic determine the fishery impacts to ESA- and artificially propagated UCR spring projects. For the modification, WDFW listed stocks and if possible, to shape chinook salmon is also authorized. The requests an increase in the annual takes fisheries to reduce impacts to ESA-listed amendment to permit 1115 is valid for of ESA-listed juvenile salmon and or depressed stocks while focusing the duration of the permit, which steelhead associated with a new harvest on healthy stocks. Modification expires on December 31, 2002. anadromous fish production monitoring 1 to permit 1102 was issued on March Notice was published on and assessment project. WDFW 10, 2000, and designates the Columbia March 9, 1999 (64 FR 11444), that proposes to use a rotary screw trap in River Inter-Tribal Fish Commission WDFW-O had applied for a scientific the lower Wenatchee River to monitor (CRITFC) as an agent of WDFW-V under research permit to authorize takes of the natural freshwater production of Permit 1102. WDFW-V and CRITFC adult and juvenile UCR spring chinook salmonid species and collect life history work cooperatively at Bonneville Dam salmon. On June 3, 1999 (64 FR information. The annual production for much of the research sampling 29839), a notice was published that

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WDFW-O had requested authorization Dated: March 16, 2000. warehouse for consumption of glass to add takes of adult and juvenile UCR Wanda L. Cain, fiber fabric in Category 622–L weighing steelhead to the original request. Permit Chief, Endangered Species Division, Office 185 grams or less per square meter. The 1203 was issued on March 10, 2000, and of Protected Resources, National Marine Category 622–L limit is not currently authorizes WDFW-O takes of these Fisheries Service. being implemented but will be in the species associated with five research [FR Doc. 00–7076 Filed 3–21–00; 8:45 am] near future; import charges for this studies in the UCR tributaries and the BILLING CODE 3510±22±F category will be provided to the U.S. mainstem river. In Study 1, WDFW-O Customs service at a later date after the will assess migrating juvenile salmonid necessary statistical breakouts have been established. populations. In Study 2, WDFW-O will COMMITTEE FOR THE This limit may be revised if Belarus trap returning adults at fish ladders, IMPLEMENTATION OF TEXTILE AGREEMENTS becomes a member of the World Trade record biological information, and Organization (WTO) and the United release them upstream. In Study 3, Settlement of a Call and Establishment States applies the WTO agreement to WDFW-O will survey spawning grounds of an Import Limit for Certain Man- Belarus. to identify redds and collect biological Made Fiber Textile Products Produced A description of the textile and data from carcasses. Tissue samples or Manufactured in Belarus apparel categories in terms of HTS taken from the carcasses will be numbers is available in the deposited at the WDFW Laboratory in March 16, 2000. CORRELATION: Textile and Apparel Olympia, WA for analysis. In Study 4, AGENCY: Committee for the Categories with the Harmonized Tariff WDFW-O will assess the capacity of Implementation of Textile Agreements Schedule of the United States (see salmonid habitat. In Study 5, WDFW-O (CITA). Federal Register notice 64 FR 71982, will conduct presence/absence studies ACTION: Issuing a directive to the published on December 22, 1999; this by using electrofishers to determine the Commissioner of Customs settling a call notice precedes the Belarus notice in the distribution of salmonids in various and establishing a limit. same issue of the Federal Register). watersheds. Data from these five studies Troy H. Cribb, will provide managers valuable EFFECTIVE DATE: March 23, 2000. Chairman, Committee for the Implementation information that will be used to assess FOR FURTHER INFORMATION CONTACT: of Textile Agreements. Naomi Freeman, International Trade the survival of migrating juvenile Committee for the Implementation of Textile salmonids, the abundance of adults on Specialist, Office of Textiles and Agreements Apparel, U.S. Department of Commerce, spawning grounds, the annual success March 16, 2000 of spawners, and the relative abundance (202) 482–4212. For information on the Commissioner of Customs, of salmonids in the available habitat. quota status of this limit, refer to the Quota Status Reports posted on the Department of the Treasury, Washington, DC Indirect mortalities of adult and juvenile 20229. ESA-listed fish are also authorized. bulletin boards of each Customs port, call (202) 927–5850, or refer to the U.S. Dear Commissioner: This directive cancels Permit 1203 expires on and supersedes the directive issued to you on December 31, 2003. Customs website at http:// December 17, 1999. That directive concerns www.customs.ustreas.gov. For imports of certain man-made fiber textile Notice was published on information on embargoes and quota re- products, produced or manufactured in March 25, 1999 (64 FR 14432), that openings, call (202) 482–3715. Belarus and exported during the twelve- NWFSC had applied for a scientific SUPPLEMENTARY INFORMATION: month period which began on September 17, research permit. Permit 1212 was issued 1999 and extends through September 16, on May 26, 1999, and authorized the Authority: Section 204 of the Agricultural 2000. Act of 1956, as amended (7 U.S.C. 1854); annual take of juvenile SnR sockeye Pursuant to section 204 of the Agricultural Executive Order 11651 of March 3, 1972, as Act of 1956, as amended (7 U.S.C. 1854); salmon, juvenile naturally produced amended. Executive Order 11651 of March 3, 1972, and artificially propagated SnR spring/ A notice published in the Federal effective on March 23, 2000, you are directed summer chinook salmon, juvenile SnR Register on December 22, 1999 (64 FR to prohibit entry into the United States for fall chinook salmon, and juvenile 71982) established a twelve-month limit consumption and withdrawal from naturally produced and artificially of 6,480,552 square meters for glass fiber warehouse for consumption of glass fiber fabric products in Category 622, produced or propagated UCR steelhead associated fabric in Category 622, produced or manufactured in Belarus and exported during with four studies at hydropower dams manufactured in Belarus and exported the twelve-month period which began on on the Snake and Columbia Rivers in to the United States during the twelve- January 1, 2000 and extends through the Pacific Northwest. NMFS issued an month period which began on December 31, 2000, in excess of 11,500,000 amendment to permit 1212 on March September 17, 1999 and extends square meters 1. 10, 2000, which authorizes NWFSC through September 16, 2000. Textile products in Category 622 which In the Memorandum of have been exported to the United States prior annual direct takes of juvenile naturally to January 1, 2000 shall not be subject to the produced and artificially propagated Understanding (MOU) between the limit established in this directive. UCR spring chinook salmon in study 1 Governments of the United States and This limit may be revised if Belarus as well as an associated indirect Belarus, dated February 17, 2000, the becomes a member of the World Trade mortality of juvenile naturally produced governments agreed to establish a new Organization (WTO) and the United States limit for Category 622 of 11,500,000 applies the WTO agreement to Belarus. and artificially propagated UCR spring You are directed to keep all current chinook salmon. The amendment to square meters, effective for the period January 1, 2000 through December 31, charges, but deduct 2,864,349 square meters permit 1212 is valid for the duration of from the charges for goods in Category 622 2000. the permit, which expires on exported during the period September 17, In addition, both governments agreed 1999 through December 31, 1999. December 31, 2003. to establish a sublimit of 1,000,000 square meters for the entry for 1 The limit has not been adjusted to account for consumption and withdrawal from any imports exported after December 31, 1999.

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In carrying out the above directions, the prior to the closing date. Otherwise, late participation of local public and private Commissioner of Customs should construe applications will not be accepted. sector elements in order to enhance the entry into the United States for consumption FOR FURTHER INFORMATION CONTACT: chances of a project’s success as well as to include entry for consumption into the For further information, contact Cynthia to make the activities undertaken by Commonwealth of Puerto Rico. AmeriCorps*VISTA members self- The Committee for the Implementation of Johnson, at 202–606–5000, ext. 541. Textile Agreements has determined that this SUPPLEMENTARY INFORMATION: sustaining when the Corporation no action falls within the foreign affairs longer provides resources. A. Background exception of the rulemaking provisions of 5 B. Purpose of This Announcement U.S.C.553(a)(1). The Corporation is a federal The United States has a unique legal Sincerely, government corporation that encourages relationship with Indian tribal Americans of all ages and backgrounds Troy H. Cribb, governments as set forth in the to engage in community-based service. Chairman, Committee for the Implementation Constitution of the United States, This service addresses the nation’s of Textile Agreements. treaties, statutes, Executive orders, and [FR Doc.00–7095 Filed 3–21–00; 8:45 am] educational, public safety, court decisions. In treaties, our Nation environmental and other human needs BILLING CODE 3510±DR±F has guaranteed the right of Indian tribes to achieve direct and demonstrable to self-government. As domestic results. In doing so, we strive to foster dependent nations, Indian tribes civic responsibility, strengthen the ties exercise inherent sovereign powers over CORPORATION FOR NATIONAL AND that bind us together as a people, and their members and territory. The United COMMUNITY SERVICE provide educational opportunity for States continues to work with Indian those who make a substantial tribes on a government-to-government Availability of Funds for commitment to service. We support a basis to address issues concerning AmeriCorps*VISTA Tribal Grants and range of national service programs, Indian tribal self-government, trust Placements of AmeriCorps*VISTA including AmeriCorps, Learn and Serve resources, and Indian tribal treaty and Members America, and the National Senior other rights. Service Corps. Under the National and Community AGENCY: Corporation for National and AmeriCorps*VISTA, a component of Community Service. Service Act of 1990, as amended, AmeriCorps, is authorized under the American Indian Tribes receive funding ACTION: Notice of availability of funds. Domestic Volunteer Service Act of 1973, directly from the Corporation for as amended (Pub. L. 93–113). The SUMMARY: The Corporation for National National Service through a 1% set-aside statutory mandate of of the overall funding for AmeriCorps and Community Service (hereinafter AmeriCorps*VISTA is ‘‘to strengthen ‘‘the Corporation’’) announces the programs, and a 3% set-aside in Learn and supplement efforts to eliminate and and Serve America. There is no set- availability of funds for fiscal year 2000 alleviate poverty and poverty-related for new AmeriCorps*VISTA (Volunteers aside for Indian tribes under the problems in the United States by Domestic Volunteer Service Act. in Service to America) program grants encouraging and enabling persons from and placements focusing on meeting the Although many AmeriCorps*VISTA all walks of life, all geographical areas, members serve in programs in Indian needs of Indian tribes. The Corporation and all age groups * * * (to) assist in is soliciting applications from Indian country, this notice provides a unique the solution of poverty and poverty- opportunity to enter into formal tribes and Native American non-profit related problems, and * * * to generate organizations to accomplish such grants arrangements with Indian tribes as the commitment of private sector sovereign entities and to increase the and placements. Approximately five to resources, to encourage volunteer seven grants/projects, supporting about number of Native Americans serving in service at the local level, and to AmeriCorps*VISTA. 50 AmeriCorps*VISTA members, are strengthen local agencies and expected to be awarded in June, 2000. Proposals are sought that make organizations to carry out the purpose appropriate use of AmeriCorps*VISTA DATES: Applications must be received (of the program).’’ (42 U.S.C. 4951) members to accomplish the goals set by 5 p.m. May 22, 2000. AmeriCorps*VISTA carries out its forth in authorizing legislation. ADDRESSES: Background information, legislative mandate by assigning In particular, the following proposals including project applications, are individuals 18 years and older, on a are sought under this announcement: (a) available from the Corporation for full-time, year-long basis, to public and Economic development in conjunction National and Community Service, private non-profit organizations whose with tribal development plans, AmeriCorps*VISTA, 1201 New York goals are in accord with including welfare to work; (b) literacy, Ave., NW, Washington, DC 20525; (202) AmeriCorps*VISTA’s legislative mentoring, and other assistance 606–5000, ext. 134; TDD (202) 565– mission. Each AmeriCorps*VISTA designed to meet the education needs of 2799, or TTY via the Federal project must focus on the mobilization young Indians; and (c) efforts to bridge Information Relay Service at (800) 877– of community resources, the the technology gap among Native 8339. One signed original and two transference of skills to community American populations. copies of the application should be residents, and the expansion of the submitted to the Corporation for capacity of community-based C. Eligible Applicants National and Community Service, 1201 organizations to solve local problems. Indian tribes and Native-run non- New York Avenue, NW, Attn: Cynthia Programming should encourage profit organizations are eligible Johnson, Washington, DC 20525. The permanent, long-term solutions to applicants under this announcement. Corporation will not accept applications problems confronting low-income An Indian tribe is defined as follows: A that are submitted via facsimile or e- communities rather than short-term federally-recognized Indian Tribe, band, mail transmission. Applications approaches for handling emergency nation, or other organized group or submitted via overnight mail that arrive needs. community, including any Native after the closing date will be accepted if AmeriCorps*VISTA project sponsors village, Regional corporation, or Village they are postmarked at least two days must actively elicit the support and/or Corporation, as defined under the

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Alaska Native Claims Settlement Act (43 education award and health care, which summary should include the major U.S.C. 1602), that the United States will be paid by the Corporation. objectives and expected outcomes of the Government determines is eligible for Grants will be awarded, and projects project. The summary will be used as a special programs and services provided approved, on a twelve-month basis with project abstract to provide reviewers under federal law to Indians because of a renewal option subject to need, with an introduction to the substantive their status as Indians. Indian Tribes satisfactory performance, and the parts of the application. Therefore, care also include any tribal organization availability of Corporation resources. should be taken to produce a summary controlled, sanctioned, or chartered by Some projects may not be awarded a that accurately and concisely reflects one of the entities described above. We grant but may be approved for the the proposal. will also consider applications from placement of AmeriCorps*VISTA 2. A description of the project to be Indian tribes that are state-recognized, members. These will typically be performed, including specific outcomes or in the process of seeking federal projects that can benefit from only a few over the length of the project. These recognition. members. outcomes must be specified over the A non-profit organization, to be Publication of this announcement length of the project, as well as during eligible to apply under this does not obligate the Corporation to the first year of the project. announcement, must be recognized and award any specific number of grants or 3. A description of the approved by the Indian tribe(s) being to obligate the entire amount of funds AmeriCorps*VISTA members’ served as the entity with authority to available, or any part thereof, for grants assignments, that is, what specifically carry out the project. Documentation of under the AmeriCorps*VISTA program, members will be doing. such recognition and approval must be or to approve any specific number of 4. Current resume of potential included in the application. non-grant projects for the placement of AmeriCorps*VISTA supervisor(s), if AmeriCorps*VISTA members. D. Scope of Grant and Project available, or resume of the director of It is anticipated that each grant will E. Responsibilities of Grantee the applicant organization. support between 5–15 Applicant organizations must have: 5. Organizational chart illustrating the AmeriCorps*VISTA members on a full- The existing capacity and experience location of the AmeriCorps*VISTA time basis for one year of service and needed to monitor and support a project within the overall applicant that each non-grant project approved for project; demonstrated strong organization. placement of members will support institutional commitment of personnel, 6. Documentation from organizations between 2–5 members. Technical resources, training and technical and/or individuals that will be assistance will be provided by the expertise; and a strong and well- collaborating in the overall project Corporation in order to enable those coordinated project rather than loosely effort. tribes selected under this announcement tying together several unrelated G. Criteria for Project Selection to complete project applications, activities. including detailed budgets. After selection, the Corporation State All of the following elements will be Each grant will include funds for the Office will work with the local Indian used in judging the applications: grantee to pay: a monthly subsistence tribe or non-profit organization to a. Getting Things Done allowance for AmeriCorps*VISTA finalize Part A (CNS Form 1421A) (OMB members that is commensurate with the Control Number 3045–0039) of the The proposed project must: cost-of-living of the assignment area and application, develop Part B (CNS Form 1. Address the needs of low-income covers the cost of food, housing, 1421B) (OMB Control Number 3045– communities and otherwise comply utilities, and incidental expenses; an 0038) of the project application, assist in with the provisions of the Domestic end-of-service cash stipend payment, recruiting tribal members to serve as Volunteer Service Act of 1973, as accrued at the rate of $100 per month, AmeriCorps*VISTA members, and amended (42 U.S.C. 4951 et seq.) for those members not selecting the discuss various implementation issues applicable to AmeriCorps*VISTA and AmeriCorps education award of $4,725; including in-service training and all applicable published regulations, and relocation expenses for those technical assistance for the members. guidelines, and Corporation policies. AmeriCorps*VISTA members who must The Corporation State Office also 2. Contain clear and measurable relocate in order to serve. The grant will provides training to AmeriCorps*VISTA objectives/outcomes in the project also include funds for member in- supervisors through periodic site visits application for a 12-month period that service training, member supervision, and meetings with supervisors. A address the overall objectives of the and member/supervisor job-related Project Progress Report (CNS Form initiative. Proposed projects must show transportation. 1433) (OMB Control Number 3045– how the activities of the Grant applicants should demonstrate 0043) is submitted to the Corporation AmeriCorps*VISTA members contribute their commitment to matching the State Office on a quarterly basis. to specific outcomes related to increased Federal contribution toward the opportunity for low-income people. It is operation of the AmeriCorps*VISTA F. Submission Requirements expected that outcome objectives will program grant by offsetting all, or part To be considered for funding, reflect the evolution of the project over of, the costs of member supervision, applicants must submit one signed the 12-month period. transportation, and training, as well as original and two copies, of Part A of the 3. Indicate how the proposed project the basic costs of the program itself (e.g., AmeriCorps*VISTA application that complements and/or enhances activities space, telephone, etc.). This support can contains the material requested in that already underway in, or planned for, the be achieved through cash or in-kind application, including the following: community(ies) which will be served by contributions. 1. A one-page narrative summary the project. To the extent possible, Further, grantees are encouraged to description, single-spaced, single-sided, projects should seek out opportunities share in the costs of the program, of the proposed AmeriCorps*VISTA to collaborate with other Corporation including paying for a specified number project including the name, address, programs, as well as with other of AmeriCorps*VISTA positions, to telephone number, and contact person community partners, including the include all costs except for the for the applicant organization. The business sector.

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4. Describe how the number of 3. Describe how the applicant ACTION: Request for public comments. AmeriCorps*VISTA members requested organization is committing resources is appropriate for the project goals/ necessary for program implementation. SUMMARY: The Interagency Offset objectives, and how the skills requested Steering Committee is seeking H. Application Review are appropriate for the assignment(s). information that will assist the Proposal Evaluation Committee in developing strategies for b. Strengthening Communities To ensure fairness to all applicants, discussions/consultations with other The proposed project must: the Corporation reserves the right to countries on reducing or eliminating the 1. Describe how the project will take action, up to and including adverse effects of offsets in defense develop a sustainable capacity in the disqualification, in the event that an trade. Offsets by their nature are market local community to effectively support application fails to comply with any distorting and result in inefficient the long-term self-sufficiency of the requirements specified in this Notice. business practices. Interested parties are community. Project services should The following weights will be used in involved to submit written comments, provide assistance oriented towards judging the elements described above. opinions, data, information, or long-term solutions. 1. Program Design (60%) in the recommendations relative to this 2. Demonstrate collaboration with following order of importance: objective, including information that organizations which provide supportive a. Responsiveness to Strengthening will help the Committee more services to enhance project outcomes. Communities Criteria accurately assess the effects of offsets in 3. Be designed to generate public and/ b. Responsiveness to Getting Things defense trade. If sufficient interest is or private sector resources, and to Done Criteria demonstrated, a public hearing might be promote local, part-time volunteer c. Responsiveness to Member scheduled in the future. service at the community level. Development Criteria DATES: Comments must be received no 4. Describe in measurable terms the 2. Organizational Capacity (25%). later than May 8, 2000. anticipated self-sufficiency outcomes at 3. Budget (15%). ADDRESSES: Send all comments to the conclusion of the project, including I. Geographic Diversity Domenico C. Cipicchio, Deputy outcomes related to the sustainability of After evaluating the overall quality of Director, Defense Procurement, Foreign the project activities. the proposal and its responsiveness to Contracting, OUSD (AT&L), 3060 c. Member Development the criteria noted above, the Corporation Defense Pentagon, Washington, DC 20301–3060. The proposed project must: will take into consideration whether funded projects are in areas of high 1. Clearly state how FOR FURTHER INFORMATION CONTACT: concentration of low-income residents, AmeriCorps*VISTA members will be Susan M. Hildner, Procurement Analyst, including for example those in trained, supervised, and supported to Defense Procurement, Foreign empowerment zones, and enterprise ensure the achievement of program Contracting, OUSD(AT&L), 3060 communities. goals and objectives as stated in the Defense Pentagon, Washington, DC project work plan. J. Technical Assistance 20301–3060, (703) 697–9352. 2. Describe how AmeriCorps*VISTA An informal, technical assistance SUPPLEMENTARY INFORMATION: In assignments are designed to utilize the conference call will be scheduled on accordance with Section 123 of the full-time AmeriCorps*VISTA members’ Monday, April 10, 2000, at 4 p.m. E.S.T. Defense Production Act as amended in time to the maximum extent. All applicants must pre-register by 1992 (Public Law 102–588, October 28, II. Organizational Capacity faxing the names, organization and 1992), an Interagency Offset Steering phone number of up to two members Committee has been conducting a series The proposed project must: planning to participate. This of discussions with its allies on defense 1. Ensure that resources needed to information should be faxed to Michael offsets. The Committee is chaired by the achieve project goals and objectives are Wagner at 202–565–2789. Questions Department of Defense and includes available. may be submitted in advance of the representatives from the Departments of 2. Have the management and meeting via fax to the above number. Commerce, State and Labor and the technical capability to implement the Office of the United States Trade project successfully. K. Program Authority Representative. The Committee plans to 3. Have a track record or experience Corporation authority to make these hold discussions with all 21 countries in dealing with the issues addressed by grants and approve projects is with which we have a reciprocal the proposed project. authorized under Title I, Part A of the procurement Memorandum of 4. Have systems for the evaluation Domestic Volunteer Service Act of 1973, Understanding. These countries and monitoring of project activities. as amended (Pub. L. 93–113). include: Australia, Austria, Belgium, Applicants must describe the methods Dated: March 17, 2000. Canada, Denmark, Egypt, Finland, that will be used to track progress France, Federal Republic of Germany, Gary Kowalczyk, toward the stated objectives, and the Greece, Israel, Italy, Luxembourg, procedures that will provide the Coordinator of National Service Programs, Netherlands, Norway, Portugal, Spain, Corporation for National and Community feedback needed to make adjustments Service. Sweden, Switzerland, Turkey, and the and improve program quality. United Kingdom. The Committee is [FR Doc. 00–7107 Filed 3–21–00; 8:45 am] interested in data and recommendations III. Budget/Cost-Effectiveness BILLING CODE 6050±28±U that will support these discussions and The proposed project must: aid in strategy development with 1. Include a budget that adequately respect to reducing or eliminating supports the program design. DEPARTMENT OF DEFENSE offsets in defense trade. Interested 2. Include a budget that adheres to Offsets in Defense Trade parties are invited to submit written budget guidance provided with the comments to assist the Committee in its application. AGENCY: Department of Defense. deliberations and discussions.

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All materials should be submitted ADDRESSES: Interested parties should Involving Aircraft, Missiles, and Space with 5 copies. Material that is business submit written comments and Launch Vehicles, requires the contractor confidential information will be recommendations on the proposed to report promptly to the administrative exempted from public disclosure as information collection to: Defense contracting officer all pertinent facts provided for by 5 U.S.C. 552(b)(4) Acquisition Regulations Council, Attn: relating to each accident involving an (Freedom of Information Act (FOIA) Ms. Amy Williams, PDUSD (AT&L) DP aircraft, missile, or space launch vehicle rules). Anyone submitting business (DAR), IMD 3D139, 3062 Defense being manufactured, modified, repaired, confidential information should clearly Pentagon, Washington, DC 20301–3062. or overhauled in connection with the identify the business confidential Telefax (703) 602–0350. contract. portion of the submission and also E-mail comments submitted via the The clause at DFARS 252.228–7006, provide a non-confidential submission, Internet should be addressed to: Compliance with Spanish Laws and which can be placed in the public file. [email protected]. Insurance, requires the contractor to Comments not marked business Please cite OMB Control Number provide the contracting officer with a confidential may be subject to 0704–0216 in all correspondence related written representation that the disclosure under FOIA. to this issue. E-mail comments should contractor has obtained the required cite OMB Control Number 0704–0216 in types of insurance in the minimum Michele P. Peterson, the subject line. amounts specified in the clause, when Executive Editor, Defense Acquisition FOR FURTHER INFORMATION CONTACT: performing a service or construction Regulations Council. Ms. Amy Williams, (703) 602–0288. The contract in Spain. [FR Doc. 00–7065 Filed 3–21–00; 8:45 am] information collection requirement Michele P. Peterson, BILLING CODE 5000±04±M addressed in this notice is available Executive Editor, Defense Acquisition electronically via the Internet at: Regulations Council. DEPARTMENT OF DEFENSE http://www.acq.osd.mil/dp/dars/ [FR Doc. 00–7066 Filed 3–21–00; 8:45 am] dfars.html. BILLING CODE 5000±04±M [OMB Control Number 0704±0216] Paper copies are available from Ms. Amy Williams, PDUSD (AT&L) DP Information Collection Requirement; (DAR), IMD 3D139, 3062 Defense DEPARTMENT OF EDUCATION Defense Federal Acquisition Pentagon, Washington, DC 20301–3062. Regulation Supplement; Bonds and SUPPLEMENTARY INFORMATION: Notice of Proposed Information Insurance Title, Associated Form, and OMB Collection Requests Number: Defense Federal Acquisition AGENCY: Department of Defense (DoD). AGENCY: Department of Education. Regulation Supplement (DFARS) Part SUMMARY: The Leader, Information ACTION: Notice and request for 228, Bonds and Insurance, and related comments regarding a proposed Management Group, Office of the Chief clauses at 252.228; OMB Control Information Officer, invites comments extension of an approved information Number 0704–0216. collection requirement. on the proposed information collection Needs and Uses: DoD uses the requests as required by the Paperwork information obtained through this SUMMARY: In compliance with Section Reduction Act of 1995. collection to determine the allowability 3506(c)(2)(A) of the Paperwork DATES: Interested persons are invited to of a contractor’s costs of providing war- Reduction Act of 1995 (44 U.S.C. submit comments on or before May 22, hazard benefits to its employees; to Chapter 35), DoD announces the 2000. proposed extension of a public determine the need for an investigation regarding an accident the occurs in SUPPLEMENTARY INFORMATION: Section information collection requirement and 3506 of the Paperwork Reduction Act of seeks public comment on the provisions connection with a contract; and to determine whether a contractor 1995 (44 U.S.C. Chapter 35) requires thereof. DoD invites comments on: (a) that the Office of Management and whether the proposed collection of performing a service or construction contract in Spain has adequate Budget (OMB) provide interested information is necessary for the proper Federal agencies and the public an early performance of the functions of DoD, insurance coverage. Affected Public: Businesses or other opportunity to comment on information including whether the information will for-profit and not-for-profit institutions. collection requests. OMB may amend or have practical utility; (b) the accuracy of Annual Burden Hours: 859. waive the requirement for public the estimate of the burden of the Number of Respondents: 49. consultation to the extent that public proposed information collection; (c) Responses Per Respondents: 1. participation in the approval process ways to enhance the quality, utility, and Annual Responses: 49. would defeat the purpose of the clarity of the information to be Average Burden Per Response: 17.53 information collection, violate State or collected; and (d) ways to minimize the hours. Federal law, or substantially interfere burden of the information collection on Frequency: On occasion. with any agency’s ability to perform its respondents, including the use of statutory obligations. The Leader, automated collection techniques or Summary of Information Collection Information Management Group, Office other forms of information technology. The clause at DFARS 252.228–7000, of the Chief Information Officer, The Office of Management and Budget Reimbursement for War-Hazard Losses, publishes that notice containing (OMB) has approved this information requires the contractor to provide notice proposed information collection collection for use through May 31, 2001. and supporting documentation to the requests prior to submission of these DoD proposes that OMB approve an contracting officer regarding claims or requests to OMB. Each proposed extension of the information collection potential claims for costs of providing information collection, grouped by requirement, to expire 3 years after the war-hazard benefits to contractor office, contains the following: (1) Type approval date. employees. of review requested, e.g. new, revision, DATES: DoD will consider all comments The clause at DFARS 252.228–7005, extension, existing or reinstatement; (2) received by May 22, 2000. Accident Reporting and Investigation title; (3) summary of the collection; (4)

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00021 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15320 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices description of the need for, and address [email protected] or of review requested, e.g. new, revision, proposed use of, the information; (5) faxed to 202–708–9346. Please specify extension, existing or reinstatement; (2) respondents and frequency of the complete title of the information title; (3) summary of the collection; (4) collection; and (6) reporting and/or collection when making your request. description of the need for, and recordkeeping burden. OMB invites Comments regarding burden and/or proposed use of, the information; (5) public comment. the collection activity requirements respondents and frequency of The Department of Education is should be directed to Joseph Schubart at collection; and (6) reporting and/or especially interested in public comment (202) 708–9266 or via his internet Recordkeeping burden. OMB invites addressing the following issues: (1) Is address [email protected]. public comment. this collection necessary to the proper Individuals who use a Dated: March 16, 2000. functions of the Department? (2) Will telecommunications device for the deaf William Burrow, this information be processed and used (TDD) may call the Federal Information in a timely manner? (3) Is the estimate Relay Service (FIRS) at 1–800–877– Leader, Information Management Group, Office of the Chief Information Officer. of burden accurate? (4) How might the 8339. Department enhance the quality, utility, [FR Doc. 00–7052 Filed 3–21–00; 8:45 am] Office of Vocational and Adult and clarity of the information to be BILLING CODE 4000±01±P Education collected? and (5) How might the Department minimize the burden of this Type of Review: New. collection on the respondents, including DEPARTMENT OF EDUCATION Title: Carl D. Perkins Vocational and through the use of information Technical Education Act—Occupational technology? Submission for OMB Review; and Employment Information State Comment Request Dated: March 16, 2000. Grants (Section 118, PL 105–332). William Burrow, AGENCY: Department of Education. Frequency: Annually. Leader, Information Management Group, SUMMARY: The Leader, Information Affected Public: State, Local, or Tribal Office of the Chief Information Officer. Management Group, Office of the Chief Gov’t, SEAs or LEAs; Individuals or Office of Student Financial Assistance Information Officer invites comments households; Not-for-profit institutions. Programs on the submission for OMB review as Reporting and Recordkeeping Hour required by the Paperwork Reduction Burden: Responses: 59 Burden Hours: Type of Review: Revision. Act of 1995. Title: Student Aid Internet Gateway 2,124. DATES: Interested persons are invited to (SAIG) Enrollment Document. submit comments on or before April 21, Abstract: Section 118 of the Carl D. Frequency: On occasion. 2000. Perkins Vocational and Technical Affected Public: Individuals or Education authorizes grants to ADDRESSES: households; not-for-profit institutions; Written comments should designated entities in the States, the Federal, State, Local, or Tribal be addressed to the Office of District of Columbia, and outlying areas Government SEAs or LEAs. Information and Regulatory Affairs, to promote improved career and Reporting and Recordkeeping Hour Attention: Danny Werfel, Desk Officer, education decision-making by Burden: Responses: 4,660 Burden Department of Education, Office of individuals. Hours: 2,151. Management and Budget, 725 17th Street, N.W., Room 10235, New This information collection is being Abstract: The Student Aid Internet submitted under the Streamlined Gateway (SAIG) Enrollment Form will Executive Office Building, Washington, DC 20503 or should be electronically Clearance Process for Discretionary be used by postsecondary institutions, Grant Information Collections (1890– third-party, software providers, lenders, mailed to the internet address [email protected]. 0001). Therefore, the 30-day public guaranty agencies, and state scholarship comment period notice will be the only programs. This will allow participants SUPPLEMENTARY INFORMATION: Section public comment notice published for to have electronic access, to recieve and 3506 of the Paperwork Reduction Act of this information collection. transmit, view and update student 1995 (44 U.S.C. Chapter 35) requires financial aid data. The Department will that the Office of Management and Requests for copies of the proposed use this information on the enrollment Budget (OMB) provide interested information collection request may be form to assign customers a Title IV Federal agencies and the public an early accessed from http://edicsweb.ed.gov, or WAN ID and associate Title IV services opportunity to comment on information should be addressed to Vivian Reese, selected by the customer. Since the collection requests. OMB may amend or Department of Education, 400 Maryland original clearance of this system last waive the requirement for public Avenue, SW, Room 5624, Regional summer, Education has discovered a consultation to the extent that public Office Building 3, Washington, D.C. number of suggestions for participation in the approval process 20202–4651. Requests may also be would defeat the purpose of the electronically mailed to the internet improvements. We hope to receive your l l ideas in 50 days so that we can have the information collection, violate State or address OCIO IMG [email protected] or necessary time to properly evaluate Federal law, or substantially interfere faxed to 202–708–9346. Please specify them. with any agency’s ability to perform its the complete title of the information Requests for copies of the proposed statutory obligations. The Leader, collection when making your request. information collection request may be Information Management Group, Office Comments regarding burden and/or accessed from http://edicsweb.ed.gov, or of the Chief Information Officer, the collection activity requirements should be addressed to Vivian Reese, publishes that notice containing should be directed to Sheila Carey at Department of Education, 400 Maryland proposed information collection (202) 708–6287 or via her internet Avenue, SW, Room 5624, Regional requests prior to submission of these address [email protected]. Office Building 3, Washington, DC requests to OMB. Each proposed Individuals who use a 20202–4651. Requests may also be information collection, grouped by telecommunications device for the deaf electronically mailed to the internet office, contains the following: (1) Type (TDD) may call the Federal Information

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Relay Service (FIRS) at 1–800–877– generation, building uses, water Solicitation Number DE–PS36– 8339. pumping, or other grid connected or off- 00GO10482, in conjunction with this [FR Doc. 00–7053 Filed 3–21–00; 8:45 am] grid power systems. Successful Supplemental Announcement 07, will applications should demonstrate the include complete information on the BILLING CODE 4000±01±P potential for replicability, as well as the program including technical aspects, educational, economic, and funding, application preparation environmental benefits. instructions, application evaluation DEPARTMENT OF ENERGY DOE will only consider applications criteria, and other factors that will be Golden Field Office; Supplemental from tribal colleges and universities as considered when selecting projects for Announcement to the Broad Based the prime applicant. A letter of funding. Issuance of the solicitation is Solicitation for Financial Assistance commitment from an authorized planned for March 21, 2000. Questions Applications Involving Research, representative (preferably the President) should be submitted in writing to: Ruth Development and Demonstration for of the tribal college or university, as E. Adams, DOE Golden Field Office, the Office of Energy Efficiency and well as from each major participant is 1617 Cole Boulevard, Golden, CO Renewable Energy; Feasibility Studies required as a part of the application (see 80401–3393; transmitted via facsimile to of Potential Applications of Renewable Section I.C. Technical Volume Ruth E. Adams at (303) 275–4788; or Energy Technologies at Tribal Structure). electronically to [email protected]. The overall objective of this program Colleges and Universities The solicitation, once issued can be is the installation of renewable energy obtained from the Golden Field Office AGENCY: U.S. Department of Energy. technologies at tribal colleges and Home Page at http://www.eren.doe.gov/ ACTION: Supplemental Announcement universities. A secondary objective is golden/solicitations.html. All 07 to the Broad Based Solicitation for the development and implementation of responsible sources may submit an Financial Assistance Applications DE– educational programs, with an emphasis application and all timely applications PS36–00GO10482. on experiential teaching at the tribal will be considered. colleges and universities to educate FOR FURTHER INFORMATION CONTACT: SUMMARY: The U.S. Department of students and their communities on the Energy (DOE), pursuant to the DOE use and benefits of these technologies. Ruth E. Adams, Contracting Officer, at Financial Assistance Rules, 10 CFR 303–275–4722, e-mail The program is planned for two phases. l 600.8, is announcing its intention to This initial solicitation (Phase I) is to ruth [email protected]. solicit applications for Feasibility support feasibility studies conducted by Issued in Golden, Colorado, on March 14, Studies of Potential Applications of tribal colleges and universities and their 2000. Renewable Energy Technologies at selected partners and subcontractors to Ruth E. Adams, Tribal Colleges and Universities. determine the most appropriate Contracting Officer. Financial assistance awards issued renewable energy technologies to be [FR Doc. 00–7069 Filed 3–21–00; 8:45 am] under this Supplemental implemented and how it will be BILLING CODE 6450±01±P Announcement will be cooperative integrated with an educational program. agreements. Phase II will focus on the renewable DATES: The solicitation will be issued on energy hardware installation and DEPARTMENT OF ENERGY or about March 21, 1999. implementation of the related educational program. It is anticipated Federal Energy Regulatory ADDRESSES: Copies of the Solicitation Commission once issued, can be obtained from the that Phase II implementation will begin Golden Field Office Home page at http:/ in FY 2001, if funding is appropriated. [Docket No. RP00±216±000] /www.eren.doe.gov/golden/ At the end of Phase I, an additional selection process will be used to solicitations.html. DOE will issue Eastern Shore Natural Gas Company; determine eventual Phase II awards. written copies of the solicitation upon Notice of Proposed Changes in FERC Only Phase I recipients will be eligible request. Gas Tariff to compete for 2 to 8 Phase II awards. SUPPLEMENTARY INFORMATION: Under this All Phase I recipients will be required March 16, 2000. Supplemental Announcement, DOE is to submit a feasibility study report, Take notice that on March 13, 2000, soliciting Applications from tribal including findings. Eastern Shore Natural Gas Company colleges and universities to conduct Awards under this Supplemental (ESNG) tendered for filing as part of its feasibility and planning studies for the Announcement will be Cooperative FERC Gas Tariff, Second Revised development and installation of Agreements, with a term of twelve Volume No. 1, certain revised tariff renewable energy technology hardware months for the Phase I feasibility study. sheets in the above captioned docket, on or adjacent to their campuses, and Subject to funding availability, the total with a proposed effective date of April integrated with educational programs DOE funding available for all Phase I 1, 2000. and science curricula. Eligible studies under this Supplemental ESNG states that the purpose of this technologies include: photovoltaics Announcement will be approximately instant filing is to track rate changes (PV), wind, biomass power, hydro, $700,000. DOE anticipates selecting 5 to attributable to a storage service concentrating solar power, solar thermal 12 applications for award under this purchased from Transcontinental Gas systems (i.e., active or passive solar Supplemental Announcement. As part Pipe Line Corporation (Transco) under technologies for space or water heating, of the Phase I deliverables, and subject its Rate Schedule GSS. The costs of the or power generation technologies), to availability of FY 2001 funds, each above referenced storage service geothermal electricity generation, Phase I recipient may submit an comprise the rates and charges payable geothermal resources for direct heating application for Phase II (FY 2001) under ESNG’s Rate Schedule GSS. This applications, and other renewable funding. tracking filing is being made pursuant to hybrid systems. Applications may No minimum cost share is required in Section 3 of ESNG’s Rate Schedule GSS. include, but are not limited to, the use order to be considered for award under ESNG states that copies of the filing of renewable power for direct electrical this Phase I solicitation. have been served upon its jurisdictional

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00023 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15322 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices customers and interested State Commission’s Office of External Affairs DEPARTMENT OF ENERGY Commissions. at (202) 208–1088. Any person desiring to be heard or to Federal Energy Regulatory protest said filing should file a motion David P. Boergers, Commission to intervene or a protest with the Secretary. [Docket No. RP96±320±029] Federal Energy Regulatory Commission, [FR Doc. 00–7032 Filed 3–21–00; 8:45 am] 888 First Street, NE., Washington, DC BILLING CODE 6717±01±M Koch Gateway Pipeline Company; 20426, in accordance with Sections Notice of Technical Conference 385.214 or 385.211 of the Commission’s Rules and Regulations. All such motions DEPARTMENT OF ENERGY March 16, 2000. or protests must be filed in accordance In the Commission’s order issued on with Section 154.210 of the Federal Energy Regulatory March 1, 2000, (90 FERC ¶ 61,227 Commission’s Regulations. Protests will Commission (2000)), the Commission directed that a be considered by the Commission in technical conference be held to address determining the appropriate action to be [Docket No. RP99±434±002] issues raised by the filing. taken, but will not serve to make Take notice that the technical protestants parties to the proceedings. Gulf States Transmission Corporation; conference will be held on Thursday Any person wishing to become a party Notice of Compliance Filing April 6, 2000, at 10 am, in a room to be must file a motion to intervene. Copies designated at the offices of the Federal of this filing are on file with the March 15, 2000. Energy Regulatory Commission, 888 Commission and are available for public Take notice that on March 10, 2000, First Street, NE, Washington, DC 20426. inspection in the Public Reference Gulf States Transmission Corporation All interested parties and Staff are Room. This filing may be viewed on the (Gulf States) tendered for filing certain permitted to attend. web at http://www.ferc.fed.us/online/ revised tariff sheets for inclusion in Gulf David P. Boergers, rims.htm (call 202–208–2222 for States’ FERC Gas Tariff, Original assistance). Secretary. Volume No. 1. [FR Doc. 00–7029 Filed 3–21–00; 8:45 am] David P. Boergers, Gulf Sates that it is filing these tariff BILLING CODE 6717±01±M Secretary. sheets to comply with the Commission’s [FR Doc. 00–7025 Filed 3–21–00; 8:45 am] February 22, 2000 Letter Order in the BILLING CODE 6717±01±M above-referenced docket (February 22 DEPARTMENT OF ENERGY Letter Order). In accordance with the Federal Energy Regulatory February 22 Letter Order, Gulf States Commission DEPARTMENT OF ENERGY requests that these tariff sheets be Federal Energy Regulatory deemed effective August 1, 1999. [Docket No. RP00±164±001] Any person desiring to protest this Commission Northern Natural Gas Company; Notice filing should file a protest with the of Compliance Filing [Docket No. CP00±36±00] Federal Energy Regulatory Commission, 888 First Street, NE, Washington, DC March 16, 2000. Guardian Pipeline, L.L.C.; Notice of 20426, in accordance with Section Take notice that on March 13, 2000 Site Visit 385.211 of the Commission’s Rules and Northern Natural Gas company Regulations. All such protests must be (Northern), tendered for filing to become March 16, 2000 filed as provided in Section 154.210 of part of its FERC Gas Tariff, Fifth Revised On March 29 and 30, 2000 the the Commission’s Regulations. Protests Volume No. 1, the following tariff sheets Commission’s Office of Energy Projects will be considered by the Commission proposed to be effective April 13, 2000: (OEP) staff will conduct an inspection of in determining the appropriate action to the pipeline route proposed by Substitute Third Revised Sheet No. 146 be taken, but will not serve to make Guardian Pipeline, L.L.C. (Guardian) for Northern states that the purpose of the the Guardian Pipeline Project. The protestants parties to the proceedings. filing is to comply with the proposed route, crossing portions of Copies of this filing are on file with the Commission’s February 10, 2000 Order Wisconsin and Illinois, will be Commission and are available for public Accepting and Suspending Tariff Sheet inspected by helicopter. The aerial inspection in the Public Reference Subject to Refund and Conditions. inspection will begin at Milwaukee’s Room. This filing may be viewed on the Northern further states that copies of General Mitchell International Airport web at http://www.ferc.fed.us/online/ the filing have been mailed to each of on the morning of March 29. If weather rims.htm (call 202–208–2222 for its customers and interested State conditions preclude an overflight, the assistance). Commissions. inspection will be conducted by Any person desiring to protest this Linwood A. Watson, Jr., automobile from a location to be filing should file a protest with the determined. The inspection will Acting Secretary. Federal Energy Regulatory Commission, continue along the route southward [FR Doc. 00–7023 Filed 3–21–00; 8:45 am] 888 First Street, NE, Washington, DC from Ixonia, Wisconsin to Joliet, Illinois. BILLING CODE 6717±01±M 20426, in accordance with section Representatives of Guardian will 385.211 of the Commission’s Rules and accompany the OEP staff. Regulations. All such protests must be All interested parties may attend, filed in as provided in Section 154.210 although those planning to attend must of the Commission’s Regulations. provide their own transportation. Protests will be considered by the For further information, please Commission in determining the contact Paul McKee of the appropriate action to be taken, but will

VerDate 202000 20:12 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00024 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm11 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15323 not serve to make protestants parties to Please include the project number (P– all capital letters the title the proceedings. Copies of this filing are 2056–018) on any comments or motions ‘‘COMMENTS’’, on file with the Commission and are filed. ‘‘RECOMMENDATIONS FOR TERMS available for public inspection in the j. Description of Proposal: The AND CONDITIONS’’, ‘‘PROTEST’’, or Public Reference Room. This filing may applicants propose a transfer of the ‘‘MOTION TO INTERVENE’’, as be viewed on the web at http:// license for the St. Anthony Falls Project applicable, and the Project Number of www.ferc.fed.us/online/rims.htm (call from Northern States Power Company the particular application to which the 202–208–2222 for assistance). (NSP) to Northern Power Corporation, a filing refers. Any of the above-named wholly-owned subsidiary of NSP. The documents must be filed by providing David P. Boergers, transfer is being sought in connection the original and the number of copies Secretary. with the merger between NSP and New [FR Doc. 00–7027 Filed 3–21–00; 8:45 am] Century Energies, Inc. provided by the Commission’s BILLING CODE 6717±01±M The transfer application was filed regulations to: The Secretary, Federal within five years of the expiration of the Energy Regulatory Commission, 888 license, which is the subject of a First Street, N.E., Washington, D.C. DEPARTMENT OF ENERGY pending relicense application for Project 20426. A copy of any motion to No. 2056–016. In Hydroelectric intervene must also be served upon each Federal Energy Regulatory Relicensing Regulations Under the representative of the Applicant Commission Federal Power Act (54 Fed. Reg. 23,756; specified in the particular application. FERC Stats. and Regs., Regs. Preambles Notice of Transfer of License and Agency Comments—Federal, state, 1986–1990 30,854 at p. 31,437), the Soliciting Comments, Motions to and local agencies are invited to file Commission declined to forbid all comments on the described application. Intervene, and Protests license transfers during the last five A copy of the application may be years of an existing license, and instead March 16, 2000. obtained by agencies directly from the indicated that it would scrutinize all Take notice that the following Applicant. If an agency does not file application has been filed with the such transfer requests to determine if the transfer’s primary purpose was to comments within the time specified for Commission and is available for public give the transferee an advantage in filing comments, it will be presumed to inspection: relicensing (id. at p. 31,438 n. 318). have no comments. One copy of an a. Application Type: Transfer of Substitution of Northern Power agency’s comments must also be sent to License. Corporation for NSP as the applicant in the Applicant’s representatives. b. Project No.: 2056–018. the relicensing proceeding will be David P. Boergers, c. Date Filed: March 8, 2000. publicly noticed and handled in a d. Applicants: Northern States Power separate proceeding. Secretary. Company and Northern Power k. Locations of the application: A [FR Doc. 00–7031 Filed 3–21–00; 8:45 am] Corporation. copy of the application is available for BILLING CODE 6717±01±M e. Name and Location of Project: The inspection and reproduction at the St. Anthony Falls Hydroelectric Project Commission’s Public Reference Room, is on the Mississippi River within the located at 888 First Street, NE, Room DEPARTMENT OF ENERGY City of Minneapolis in Hennepin 2A, Washington, DC 20426, or by calling Federal Energy Regulatory County, Minnesota. The project does not (202) 208–1371. The application may be occupy Federal or Tribal land. viewed on the web at www.ferc.fed.us/ Commission f. Filed Pursuant to: Federal Power online/rims.htm (Call (202) 208–2222 Act, 16 U.S.C. 791(a)–825(r) for assistance). A copy is also available [Project No. 203±031 and 11832±000] g. Applicant Contacts: Mr. Earle for inspection and reproduction at the Portland General Electric Company O’Donnell, Dewey Ballantine LLP, 1775 addresses in item g above. l. Individuals desiring to be included and the Confederated Tribes of the Pennsylvania Ave., NW, Washington, on the Commission’s mailing list should DC 20006, (202) 429–2327; Mr. William Warm Springs Reservation of Oregon; so indicate by writing to the Secretary J. Madden, Jr., Winston & Strawn, 1400 Notice of Meeting of the Commission. L Street, NW, Washington, DC 20005, Comments, Protests, or Motions to March 16, 2000. (202) 371–5715; Mr. Scott M. Wilensky, Intervene—Anyone may submit At the request of Portland General Northern States Power Company, 414 comments, a protest, or a motion to Nicollet Mall, 5th Floor, Minneapolis, Electric Company and the Confederated intervene in accordance with the Tribes of the Warm Springs Reservation MN 55401–1993, e-mail: requirements of Rules of Practice and of Oregon, the Commission’s staff will [email protected]; Mr. Mark H. Procedure, 18 CFR 385.210, .211, .214. hold a meeting on April 4, 2000, at 3:00 Holmberg, Northern States Power In determining the appropriate action to p.m. in room 62–26, 888 First Street NE, Company, (612) 330–6568. take, the Commission will consider all h. FERC Contact: Any questions on protests or other comments filed, but Washington, DC. The purpose of the this notice should be addressed to James only those who file a motion to meeting is to discuss issues arising from Hunter at (202) 219–2839, or e-mail intervene in accordance with the the pending Global Settlement between address: [email protected]. Commission’s Rules may become a PGE and the Tribes to resolve the i. Deadline for filing comments and or party to the proceeding. Any comments, competitive proceeding. motions: April 11, 2000. protests, or motions to intervene must Other interested parties wishing to All documents (original and eight be received on or before the specified attend and participate in the meeting are copies) should be filed with: David P. comment date for the particular welcome. Questions on the meeting ´ ´ Boergers, Secretary, Federal Energy application. should be directed to Hector M. Perez Regulatory Commission, 888 First Filing and Service of Responsive on Street, NE, Washington, DC 20426. Documents—Any filings must bear in

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(202) 219–2843, with environmental expertise and DEPARTMENT OF ENERGY [email protected]. concerns, that: (1) The Commission staff Federal Energy Regulatory David P. Boergers, has decided to prepare an EIS; (2) the scoping conducted on the Presumpscot Commission Secretary. River Projects for the Environmental [FR Doc. 00–7024 Filed 3–21–00; 8:45 am] [Docket No. EC00±62±000] Assessment (EA)—scoping meetings BILLING CODE 6717±01±M held August 25 and 26, 1999, in Statoil Energy Trading, Inc.; Statoil Windham, Maine, and comments filed Energy Services, Inc. and Amerada Hess Corporation; Notice Shortening DEPARTMENT OF ENERGY with the Commission by September 26, 1999—still apply; and (3) additional Answer Period Federal Energy Regulatory comments for the Presumpscot River March 16, 2000. Commission Projects that may result from the change On March 8, 2000, the Commission from an EA to an EIS may be filed with [Project Nos: 2942±005, 2931±002, 2941± issued a Notice of Filing, published 002, 2932±003, and 2897±003ÐMaine the Secretary, Federal Energy Regulatory March 16, 2000 (65 FR 14268), in the Dundee, Gambo, Little Falls, Mallison Falls, Commission, 888 First Street, NE., above-captioned proceeding. By this and Saccarappa Projects] Washington, DC 20426, within 30 days notice, the date for filing interventions from the date of this notice. and protests is hereby shortened to and S.D. Warren Company; Notice of Intent All written correspondence should including March 29, 2000. To Prepare an Environmental Impact clearly show the following caption on Statement David P. Boergers, the first page: Secretary. March 16, 2000. Dundee Project, FERC No. 2942–0005; [FR Doc. 00–7033 Filed 3–21–00; 8:45 am] The Federal Energy Regulatory Little Falls Project, FERC No. 2941–002; BILLING CODE 6717±01±M Commission (Commission) received Mallison Falls Project, FERC No. 2932– applications for new licenses for the 003; Gambo Prject, FERC No. 2931–002; continued operation and maintenance of and Saccarappa Project, FERC No. DEPARTMENT OF ENERGY the existing Dundee Project, FERC No. 2897–003 2942–005; Gambo Project, FERC No. Federal Energy Regulatory 2931–002, Little Falls Project, FERC No. Intervenors—those on the Commission 2941–002; Mallison Falls Project, FERC Commission’s service list for this [Docket No. RP00±209±001] No. 2932–003; and Saccarappa Project, proceeding (parties)—are reminded of the Commission’s Rules of Practice and FERC No. 2897–003, henceforth known Transcontinental Gas Pipe Line as the Presumpscot River Projects, on procedure, requiring parties filing Corporation; Notice of Tariff Filing January 22, 1999. The Presumpscot documents with the Commission, to River Projects are located on the serve a copy of the document on each March 16, 2000. Presumpscot River, in Cumberland person whose name appears on the Take notice that on March 10, 2000 County, Maine and would have a official service list.1 Further, if a party Transcontinental Gas Pipe Line combined installed capacity of 7.45 or intervenor files comments or Corporation (Transco) tendered for magawatts. documents with the Commission filing as part of its FERC Gas Tariff, Following the public scoping process, relating to the merits of an issue that Third Revised Volume No. 1, Substitute the Commission staff determined that may affect the responsibilities of a Thirteenth Revised Sheet No. 44. The licensing of the Presumpscot River particular resource agency, they must proposed effective date of the enclosed Projects could constitute a major federal also serve a copy of the document on tariff sheet is April 1, 2000. action significantly affecting the quality that resource agency. Transco states that the purpose of the of the human environment. Therefore instant filing is to supplement Transco’s the staff intends to prepare an Any questions regarding this notice Fuel Tracker Filing of March 1, 2000 Environmental Impact Statement (EIS) may be directed to Bob Easton, (March 1 Filing), which inadvertently for the Presumpscot River Projects in Environmental Coordinator, at (202) reflected an incorrect Deferred GRO accordance with the National 219–2782 or [email protected]. Amount for March, 99 in Appendix B, Environmental Policy Act (NEPA). David P. Boergers, Page 2, attached to the filing. Transco is The staff’s EIS will objectively submitting revised workpapers to Secretary. consider both site-specific and correct the Deferred GRO Amount cumulative environmental impacts of [FR Doc. 00–7030 Filed 3–21–00; 8:45am] reflected in the March 1 Filing. The the projects and reasonable alternatives, BILLING CODE 6717±01±M result of the revised Deferred GRO and will include economic and Amount is a reduction in the System engineering analyses. Transportation fuel retention percentage A draft EIS (DEIS) will be issued and in Zone 4 from 1.91% to 1.90%. circulated for review by all interested Transco states that is serving copies of parties. All comments filed on the DEIS the instant filing to its affected will be analyzed by the staff and customers, State Commissions and other considered in the final EIS (FEIS). The interested parties. staff’s conclusions and Any person desiring to protest this recommendations will then be filing should file a protest with the presented for the consideration of the Federal Energy Regulatory Commission, Commission in reaching its final 888 First Street, NE, Washington, DC licensing decisions. 1 The official service list can be obtained by 20426, in accordance with Section This notice informs all interested calling the Office of the Secretary, Dockets Branch, 385.211 of the Commission’s Rules and individuals, organizations and agencies at (202) 208–2020. Regulations. All such protests must be

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Calvert Cliffs, Inc. Room. This filing may be viewed on the March 15, 2000. web at http://www.ferc.fed.us/online/ Take notice that the following filings [Docket No. ES00–20–000] rims.htm (call 202–208–2222 for have been made with the Commission: Take notice that on March 10, 2000, assistance). Calvert Cliffs, Inc. (Applicant) 1. Louisiana Generating LLC submitted an application pursuant to David P. Boergers, [Docket No. EG00–89–000] Section 204 of the Federal Power Act. Secretary. Take notice that on March 15, 2000, Applicant seeks authorization to: (a) [FR Doc. 00–7026 Filed 3–21–00; 8:45 am] Louisiana Generating LLC filed with the Assume up to $47 million of tax exempt BILLING CODE 6717±01±M Federal Energy Regulatory Commission debt, (b) issue up to $600 million of an amendment to its application for unsecured promissory notes, (c) issue determination of exempt wholesale 5,000 shares of common stock, (d) DEPARTMENT OF ENERGY generator status, which was filed on execute an intercompany credit February 3, 2000 in the above- agreement and note of up to $100 Federal Energy Regulatory referenced proceeding. million, and (e) execute a master Commission Comment date: March 27, 2000, in demand note of up to $150 million. accordance with Standard Paragraph E Applicant also requests a waiver of [Docket No. RP99±381±000] at the end of this notice. The the Commission’s competitive bidding commission will limit its consideration and negotiated placement requirements Wyoming Interstate Company, Ltd.; of comments to those that concern the of 18 CFR 34.2. Notice of Informal Settlement adequacy or accuracy of the application. Comment date: April 5, 2000, in Conference accordance with Standard Paragraph E 2. South Eastern Generating at the end of this notice. March 16, 2000. Corporation 7. Constellation Generation, Inc. Take notice that an informal [Docket No. EG00–111–000] [Docket No. ES00–21–000] settlement conference will be convened Take notice that on March 7, 2000, in this proceeding commencing at 10:00 South Eastern Generating Corporation Take notice that on March 10, 2000, Constellation Generation, Inc. a.m. on Thursday, March 23, 2000, at (South Eastern) filed an amendment to (Applicant) submitted an application the offices of the Federal Energy their Application for Determination of pursuant to Section 204 of the Federal Regulatory Commission, 888 First Exempt Wholesale Generator Status filed with the Federal Energy Regulatory Power Act. Applicant seeks Street, NE, Washington, DC 20426, for authorization to: (a) Assume up to $232 the purposes of exploring the possible Commission (Commission) on March 3, 2000. million of tax exempt debt, (b) issue up settlement of the above-referenced Comment date: March 29, 2000, in to $550 million of unsecured docket. accordance with Standard Paragraph E promissory notes, (c) issue 5,000 shares Any party, as defined by 18 CFR at the end of this notice. The of common stock, and (d) execute a 385.102(c), or any participant as defined Commission will limit its consideration master demand note of up to $150 by 18 CFR 385.102(b), is invited to of comments to those that concern the million. attend. Persons wishing to become a adequacy or accuracy of the application. Applicant also requests a waiver of the Commission’s competitive bidding party must move to intervene and 3. South Carolina Electric & Gas receive intervenor status pursuant to the and negotiated placement requirements Company, SCANA Energy Marketing, of 18 CFR 34.2. Commission’s regulations (18 CFR Inc. 385.214). Comment date: April 5, 2000, in [Docket Nos. ER96–1085–005 and ER96– accordance with Standard Paragraph E For additional information, please 1086–016] at the end of this notice. contact Arnold H. Meltz at (202) 208– Take notice that on March 9, 2000, 8. Central Maine Power Company 2161, or Michael D. Cotleur at (202) South Carolina Electric & Gas Company 208–1076. and SCANA Energy Marketing, Inc., [Docket No. ER00–605–001] Take notice that on March 8, 2000, David P. Boergers, tendered for filing an updated market analysis in connection with their Central Maine Power Company (CMP), Secretary. market-based rate authority. tendered for filing the ‘‘First [FR Doc. 00–7028 Filed 3–21–00; 8:45 am] Comment date: March 30, 2000, in Amendment to Hydro Quebec BILLING CODE 6717±01±M accordance with Standard Paragraph E Entitlement Agreement’’ (First at the end of this notice. Amendment), in compliance with the letter order dated February 23, 2000 4. Oceanside Energy, Inc. (Letter Order), in Central Maine Power [Docket No. ER97–181–007] Company, Docket No. ER00–605–000, Take notice that on March 6, 2000, by the Commission’s Office of Markets, Oceanside Energy, Inc. filed a quarterly Tariffs and Rates. The First Amendment report for information only. deletes from the Hydro Quebec

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Entitlement Agreement, dated Comment date: March 30, 2000, in Company (Allegheny Power), tendered November 1, 1999, Subsections a, c and accordance with Standard Paragraph E for filing Supplement No. 73 to add d of Section 15.17, as directed by the at the end of this notice. Cargill-Alliant, LLC to Allegheny Letter Order. Power’s Open Access Transmission 12. North American Electric Reliability Comment date: March 29, 2000, in Service Tariff which has been accepted Council accordance with Standard Paragraph E for filing by the Federal Energy at the end of this notice. [Docket No. ER00–1666–000] Regulatory Commission in Docket No. 9. ISO New England Inc. Take notice that on March 10, 2000, ER96–58–000. the North American Electric Reliability The proposed effective date under the [Docket No. ER00–749–001] Council (NERC) tendered for filing in Service Agreements is March 10, 2000 Take notice that on March 10, 2000, this docket a blacklined version of the or a date ordered by the Commission. ISO New England Inc., tendered for proposed revisions to NERC’s Copies of the filing have been filing a notice of compliance regarding Transmission Loading Relief provided to the Public Utilities the confirmation of Revisions to New Procedures. Commission of Ohio, the Pennsylvania England Power Pool (NEPOOL) Market Comment date: March 31, 2000, in Public Utility Commission, the Rule 15 and Appendix 15–A by the accordance with Standard Paragraph E Maryland Public Service Commission, NEPOOL Participants Committee. at the end of this notice. the Virginia State Corporation Copies of said filing have been served upon each person designated on the 13. New England Power Company Commission, and the West Virginia official service list compiled by the Public Service Commission. [Docket No. ER00–1698–000] Comment date: April 3, 2000, in Secretary in this proceeding. Take notice that on March 10, 2000, Comment date: March 31, 2000, in accordance with Standard Paragraph E New England Power Company amended accordance with Standard Paragraph E at the end of this notice. its February 25, 2000, filing in this at the end of this notice. proceeding. 16. Allegheny Energy Service 10. Central Maine Power Company Comment date: March 31, 2000, in Corporation, on Behalf of Monongahela Power Company, The Potomac Edison [Docket No. ER00–982–001] accordance with Standard Paragraph E at the end of this notice. Company, and West Penn Power Take notice that on March 8, 2000, Company (Allegheny Power) Central Maine Power Company (CMP), 14. Allegheny Energy Service tendered for filing revised page 171 of Corporation, on behalf of Monongahela [Docket No. ER00–1861–000] CMP’s Open Access Transmission Tariff Power Company, The Potomac Edison Take notice that on March 13, 2000, (Revised Page 171) in compliance with Company, and West Penn Power Allegheny Energy Service Corporation Central Maine Power Company, 90 Company (Allegheny Power) on behalf of Monongahela Power FERC ¶61,214 (2000) (February 28th [Docket No. ER00–1859–000] Company, The Potomac Edison Order). The February 28th Order Company and West Penn Power Take notice that on March 10, 2000, directed CMP to remove revisions to its Company (Allegheny Power), tendered Allegheny Energy Service Corporation Open Access Transmission Tariff for filing Supplement No. 72 to add on behalf of Monongahela Power (OATT) that provide for recovery from Allegheny Energy Supply Company, Company, The Potomac Edison unbundled retail customers for local LLC to Allegheny Power’s Open Access Company and West Penn Power distribution and retail stranded costs. Transmission Service Tariff which has Company (Allegheny Power), tendered Accordingly, the Revised Page 171 been accepted for filing by the Federal for filing Notices of Cancellation for removes such revisions from exception Energy Regulatory Commission in Sonat Power Marketing Inc. and Sonat number 7 of CMP’s OATT. Docket No. ER96–58–000. Comment date: March 29, 2000, in Power Marketing L.P., a customer under Allegheny Power’s Open Access The proposed effective date under the accordance with Standard Paragraph E Service Agreements is March 10, 2000, at the end of this notice. Transmission Service Tariff. Copies of the filing have been or a date ordered by the Commission. 11. Central Maine Power Company provided to the Public Utilities Copies of the filing have been [Docket No. ER00–1638–001] Commission of Ohio, the Pennsylvania provided to the Public Utilities Commission of Ohio, the Pennsylvania Take notice that on March 9, 2000, Public Utility Commission, the Public Utility Commission, the Central Maine Power Company (CMP), Maryland Public Service Commission, Maryland Public Service Commission, tendered for filing an executed the Virginia State Corporation the Virginia State Corporation Interconnection Agreement (IA) with Commission, and the West Virginia Commission, and the West Virginia Boralex Athens Energy Inc., (Boralex). Public Service Commission. Public Service Commission. This IA supersedes the unexecuted Comment date: March 31, 2000, in version of the IA that CMP filed with accordance with Standard Paragraph E Comment date: April 3, 2000, in FERC on February 17, 2000. at the end of this notice. accordance with Standard Paragraph E at the end of this notice. Among other changes made to reflect 15. Allegheny Energy Service the final agreement of the parties, the Corporation, on Behalf of Monongahela 17. Maine Public Service Company executed version of the IA has been Power Company, The Potomac Edison [Docket No. ER00–1862–000] modified to correct a typographical error Company, and West Penn Power as to the dates when it will be effective. Company (Allegheny Power) Take notice that on March 13, 2000, Consistent with the actual data upon Maine Public Service Company (Maine which service to Boralex commenced, [Docket No. ER00–1860–000] Public), tendered for filing an executed CMP requests that the IA become Take notice that on March 13, 2000, Service Agreement for Network effective on January 18, 2000. Allegheny Energy Service Corporation Integration Transmission Service under Copies of this filing have been served on behalf of Monongahela Power Maine Public’s open access upon the Maine Public Utilities Company, The Potomac Edison transmission tariff with Eastern Maine Commission and Boralex. Company and West Penn Power Electric Cooperative, Inc.

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Comment date: April 3, 2000, in Regulatory Commission, an application 6. Citizens Power Sales accordance with Standard Paragraph E for determination of exempt wholesale [Docket No. ER00–1845–000] at the end of this notice. generator status pursuant to Section 32 Take notice that on March 9, 2000, of the Public Utility Holding Company Standard Paragraphs Citizens Power Sales filed a Notice of Act of 1935, as amended, and Part 365 Succession. Effective March 1, 2000, E. Any person desiring to be heard or of the Commission’s regulations. Citizens Power Sales converted from a to protest such filing should file a Panda Oneta is a Delaware limited motion to intervene or protest with the general partnership to a limited liability partnership, which will construct, own company and changed its name to Federal Energy Regulatory Commission, and operate a nominal 1000 MW natural 888 First Street, NE, Washington, DC Citizens Power Sales LLC. gas-fired generating facility within the Comment date: March 30, 2000, in 20426, in accordance with Rules 211 region governed by the Southwest and 214 of the Commission’s Rules of accordance with Standard Paragraph E Power Pool and sell electricity at at the end of this notice. Practice and Procedure (18 CFR 385.211 wholesale. and 385.214). All such motions or Comment date: April 4, 2000, in 7. Jersey Central Power & Light protests should be filed on or before the accordance with Standard Paragraph E Company; Metropolitan Edison comment date. Protests will be at the end of this notice. The Company and Pennsylvania Electric considered by the Commission in Commission will limit its consideration Company determining the appropriate action to be of comments to those that concern the [Docket No. ER00–1848–000] taken, but will not serve to make adequacy or accuracy of the application. protestants parties to the proceeding. Take notice that on March 10, 2000, Any person wishing to become a party 3. Northern Maine Independent System Jersey Central Power & Light Company, must file a motion to intervene. Copies Administrator, Inc. Metropolitan Edison Company and Pennsylvania Electric Company (d/b/a of these filings are on file with the [Docket No. EL00–51–000] Commission and are available for public GPU Energy), filed an executed Service inspection. This filing may also be Take notice that on March 8, 2000, Agreement between GPU Energy and viewed on the Internet at http:// Northern Maine Independent System Public Service Electric and Gas www.ferc.fed.us/online/rims.htm (call Administrator, Inc. (Northern Maine Company (PSE&G), dated March 6, 202–208–2222 for assistance). ISA) tendered for filing with the 2000. This Service Agreement specifies Commission a Request for Partial that PSE&G has agreed to the rates, David P. Boergers, Waiver of the Requirements Part 45 of terms and conditions of GPU Energy’s Secretary. the Commission Regulations. Market-Based Sales Tariff (Sales Tariff) [FR Doc. 00–7064 Filed 3–21–00; 8:45 am] Comment date: April 7, 2000, in designated as FERC Electric Rate BILLING CODE 6717±01±P accordance with Standard Paragraph E Schedule, Second Revised Volume No. at the end of this notice. 5. The Sales Tariff allows GPU Energy and PSE&G to enter into separately 4. Little Bay Power Corporation DEPARTMENT OF ENERGY scheduled transactions under which [Docket No. ER00–1843–000] GPU Energy will make available for sale, Federal Energy Regulatory Take notice that on March 9, 2000, surplus capacity and/or energy. Commission Little Bay Power Corporation filed a GPU Energy requests a waiver of the [Docket No. EG00±27±000, et al.] quarterly report for the quarter ending Commission’s notice requirements for December 31, 1999. good cause shown and an effective date North Hartland, LLC, et al.; Electric Comment date: April 3, 2000, in of March 6, 2000 for the Service Rate and Corporate Regulation Filings accordance with Standard Paragraph E Agreement. GPU Energy has served copies of the at the end of this notice. March 14, 2000. filing on regulatory agencies in New Take notice that the following filings 5. Lamar Power Partners, LP Jersey and Pennsylvania. have been made with the Commission: Comment date: March 31, 2000, in [Docket No. ER00–1844–000] 1. AmerGen Energy Company, L.L.C. accordance with Standard Paragraph E Take notice that on March 9, 2000, at the end of this notice. [Docket No. EG00–27–000] Lamar Power Partners, LP (Lamar), Take notice that on March 9, 2000, tendered for filing pursuant to Rules 204 8. PJM Interconnection, L.L.C. AmerGen Energy Company, L.L.C., and 205 an application for waivers and [Docket No. ER00–1849–000] submitted a supplement to its blanket approvals under various Take notice that on March 10, 2000, application for exempt wholesale regulations of the Commission and for PJM Interconnection, L.L.C. (PJM), generator status. an order accepting its FERC Electric tendered for filing revised pages to the Comment date: April 4, 2000, in Rates Schedule No. 1, to be effective PJM Open Access Transmission Tariff accordance with Standard Paragraph E May 8, 2000, for wholesale sales to and the Amended and Restated at the end of this notice. The customers located outside of the ERCOT Operating Agreement of PJM Commission will limit its consideration region of Texas, and to accept the rates Interconnection, L.L.C. setting forth of comments to those that concern the thereunder as just and reasonable under procedures for a two-settlement system. adequacy or accuracy of the application. Section 205(a) of the Federal Power Act, PJM requests an effective date of May 16 U.S.C. § 824d(a). Lamar is a limited 2. Panda Oneta Power, L.P. 31, 2000. partnership that proposes to engage in Copies of this filing were served upon [Docket No. EG00–114–000] the wholesale sale of electric power in all PJM Members and the state electric Take notice that on March 10, 2000, the state of Texas and is headquartered regulatory commissions in the PJM Panda Oneta Power, L.P. (Panda Oneta), in Florida. Control Area. with its principal offices at 4100 Spring Comment date: March 30, 2000, in Comment date: March 31, 2000, in Valley Road, Suite 1001, Dallas, Texas accordance with Standard Paragraph E accordance with Standard Paragraph E 75244, filed with the Federal Energy at the end of this notice. at the end of this notice.

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9. Jersey Central Power & Light Comment date: March 31, 2000, in Inc. (NHEC), petitioned the Commission Company, Metropolitan Edison accordance with Standard Paragraph E for acceptance of NHEC Rate Schedule; Company, Pennsylvania Electric at the end of this notice. the granting of certain blanket Company approvals, including the authority to 13. Metropolitan Edison Company [Docket No. ER00–1850–000] sell electricity at market-based rates; [Docket No. ER00–1855–000] and the waiver of certain Commission Take notice that on March 10, 2000, Take notice that on March 10, 2000, Regulations. Jersey Central Power & Light Company, Metropolitan Edison Company (d/b/a NHEC intends to engage in wholesale Metropolitan Edison Company and GPU Energy) tendered for filing a electric power and energy sales as a Pennsylvania Electric Company (doing Generation Facility Transmission marketer. NHEC is a consumer-owned business and hereinafter referred to as Interconnection Agreement between electric generation and distribution ‘‘GPU Energy’’) submitted for filing GPU Energy and Calpine Construction cooperative that provides electric revised Schedule 9.02 to the GPU Power Finance Company, L.P. service to 65,000 customers in New Pooling Agreement. Schedule 9.02 has GPU Energy requests an effective date Hampshire. been revised to reflect the fact the GPU of March 11, 2000, for the agreement. Comment date: March 31, 2000, in Energy has sold the Three Mile Island Comment date: March 31, 2000, in accordance with Standard Paragraph E Unit No. 1 Nuclear Generating Station to accordance with Standard Paragraph E at the end of this notice. AmerGen Energy Company, LLC. at the end of this notice. Comment date: March 31, 2000, in Standard Paragraphs 14. PECO Energy Company accordance with Standard Paragraph E E. Any person desiring to be heard or at the end of this notice. [Docket No. ER00–1856–000] to protest such filing should file a 10. Pleasant Hill Marketing, LLC Take notice that on March 10, 2000, motion to intervene or protest with the PECO Energy Company (PECO), Federal Energy Regulatory Commission, [Docket No. ER00–1851–000] tendered for filing under Section 205 of 888 First Street, N.E., Washington, D.C. Take notice that on March 10, 2000, the Federal Power Act, 16 U.S.C. S 792 20426, in accordance with Rules 211 Pleasant Hill Marketing, LLC, an et seq., an Agreement dated February and 214 of the Commission’s Rules of indirect wholly owned subsidiary of 29, 2000 with Delmarva Power & Light Practice and Procedure (18 CFR 385.211 UtiliCorp United Inc., tendered for filing Company (DELMARVA) under PECO’s and 385.214). All such motions or a rate schedule to engage in sales at FERC Electric Tariff Original Volume protests should be filed on or before the market-based rates. Pleasant Hill No. 1 (Tariff). comment date. Protests will be included in its filing a proposed code of PECO requests an effective date of considered by the Commission in conduct. March 1, 2000, for the Agreement. determining the appropriate action to be Comment date: March 31, 2000, in PECO states that copies of this filing taken, but will not serve to make accordance with Standard Paragraph E have been supplied to Delaware Power protestants parties to the proceeding. at the end of this notice. & Light Company and to the Any person wishing to become a party Pennsylvania Public Utility must file a motion to intervene. Copies 11. Southern Indiana Gas and Electric Commission. Company of these filings are on file with the Comment date: March 31, 2000, in Commission and are available for public [Docket No. ER00–1852–000] accordance with Standard Paragraph E inspection. This filing may also be Take notice that on March 10, 2000, at the end of this notice. viewed on the Internet at http:// Southern Indiana Gas and Electric 15. Split Rock Energy LLC and www.ferc.fed.us/ online/rims.htm (call Company (SIGECO) tendered for filing Minnesota Power, Inc. 202–208–2222 for assistance). the following agreement concerning the [Docket No. ER00–1857–000] David P. Boergers, provision of electric service to British Columbia Power Exchange Corporation, Take notice that on March 10, 2000, Secretary. as a umbrella service agreement under Split Rock Energy LLC (Split Rock), [FR Doc. 00–7063 Filed 3–21–00; 8:45 am] its market-based Wholesale Power Sales filed an application for an order BILLING CODE 6717±01±P Tariff: authorizing Split Rock to make wholesales sales of electric power at Wholesale Energy Service Agreement market-based rates. Concurrent with dated February 24, 2000, by and ENVIRONMENTAL PROTECTION Split Rock’s filing, Minnesota Power, AGENCY between Southern Indiana Gas and Inc. (MP), tendered for filing proposed Electric Company and British revisions to its Wholesale Coordination [OPP±00650; FRL±6499±6] Columbia Power Exchange Service Tariff No. 2 (WCS–2 Tariff), Notice of Availability of Regional Corporation. designated as FERC Electric Tariff Environmental Stewardship Program Comment date: March 31, 2000, in Original Volume No. 5. MP’s revisions Grants accordance with Standard Paragraph E revise the WCS–2 Tariff to provide that at the end of this notice. MP may make sales of power under the AGENCY: Environmental Protection 12. Cleco Utility Group Inc. WCS–2 Tariff, to Split Rock at market- Agency (EPA). based rates. ACTION: Notice. [Docket No. ER00–1854–000] Comment date: March 31, 2000, in Take notice that on March 10, 2000, accordance with Standard Paragraph E SUMMARY: EPA is announcing the Cleco Utility Group Inc., tendered for at the end of this notice. availability of approximately $498 filing an Interconnection and Operating thousand in fiscal year 2000 grant/ 16. New Hampshire Electric Agreement between itself and Acadia cooperative agreement funds under Cooperative, Inc. Power Partners, LLC in connection with section 20 of the Federal Insecticide, Acadia Power Partner LLC’s proposed [Docket No. ER00–1858–000] Fungicide, and Rodenticide Act (FIFRA) construction of a new generating facility Take notice that on March 10, 2000, as amended, (the Act), for grants to in Acadia Parish, Louisiana. New Hampshire Electric Cooperative, States and federally recognized Native

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American Tribes for research, public applicants for purposes of funding assistance opportunities; developing education, training, monitoring, under this grant program include the 50 measures to determine and document demonstrations, and studies. For States, the District of Columbia, the U.S. progress in pollution prevention; and convenience, the term ‘‘State’’ in this Virgin Islands, the Commonwealth of identifying regulatory and non- notice refers to all eligible applicants. Puerto Rico, any territory or possession regulatory barriers or incentives to DATES: In order to be considered for of the United States, any agency or pollution prevention. funding during the FY 00 award cycle, instrumentality of a State including • Researching methods for all applications must be received by the State universities, and all federally establishing IPM as an environmental appropriate EPA regional office on or recognized Native American Tribes. For management priority, establishing before May 22, 2000. EPA will make its convenience, the term ‘‘State’’ in this prevention goals, developing strategies award decisions by June 30, 2000. notice refers to all eligible applicants. to meet those goals, and integrating the FOR FURTHER INFORMATION CONTACT: Local governments, private universities, ethic within both governmental and Your EPA Regional Pesticide private nonprofit entities, private non-governmental institutions of the Environmental Stewardship Program businesses, and individuals are not State or region. • Coordinator. Contact names for the eligible. The organizations excluded Initiating research or other projects coordinators are listed under Unit V of from applying directly are encouraged that test and support: innovative this document. to work with eligible applicants in techniques for reducing pesticide risk or using pesticides in a way to reduce risk, SUPPLEMENTARY INFORMATION: developing proposals that include them as participants in the projects. Contact innovative application techniques to I. General Information your EPA Regional PESP coordinator for reduce worker and environmental Does this Action Apply to Me? assistance in identifying and contacting exposure, various approaches and eligible applicants. EPA strongly methodologies to measure progress This action is directed to the public encourages this type of cooperative towards meeting the goal of 75% in general. This action may, however, be arrangement. implementation of IPM by the year of interest to eligible applicants for 2000. purposes of funding under this grant IV. Activities and Criteria A list of projects funded in FY’99 may program to include the 50 States, the A. General be obtained from the internet at URL District of Columbia, the U.S. Virgin http://www.epa.gov/oppbppd1/PESP/ The goal of PESP is to reduce the risks Islands, the Commonwealth of Puerto grants.htm or from the Regional PESP associated with pesticide use in Rico, any territory or possession of the coordinator listed under Unit V. of this agricultural and non-agricultural United States, any agency or document. instrumentality of a State including settings in the United States. The State universities, and all Federally purpose of the grant program is to B. Criteria recognized Native American tribes. For support the establishment and Proposals will be evaluated based on further information contact the Regional expansion of Integrated Pest the following criteria: PESP coordinator listed under Unit V. Management (IPM) as a tool to be used 1. Qualifications and experience of to accomplish the goals of PESP. the applicant relative to the proposed II. Availability of FY’00 Funds Projects that address the risk reduction project. With this publication, EPA is goals of the PESP, pesticide pollution • Does the applicant demonstrate announcing the availability of prevention, Integrated Pest Management experience in the field of the proposed approximately $498 thousand in grant/ (IPM), IPM in Schools, children’s health activity? cooperative agreement funds for FY’00. issues related to pesticides, or those • Does the applicant have the The Agency has delegated grant making research methods for documenting the properly trained staff, facilities, or authority to the EPA Regional Offices. trends toward the adoption of IPM or infrastructure in place to conduct the Regional offices are responsible for the the reduction of risks associated with project? solicitation of interest, the screening of pesticide use will receive priority 2. Consistency of applicant’s proposals, and the selection of projects. consideration. Other projects will be proposed project with the risk reduction Grant guidance will be provided to all considered as they complement these goals of the PESP. applicants along with any goals through public education, training 3. Provision for a quantitative or supplementary information the Regions monitoring, demonstrations and studies qualitative evaluation of the project’s may wish to provide. All applicants and other activities. EPA specifically success at achieving the stated goals. must address the criteria listed under seeks to build State and local IPM • Is the project designed in such a Unit IV B. of this document. In addition, capacities or to evaluate the economic way that it is possible to measure and applicants may be required to meet any feasibility of new IPM approaches at the document the results quantitatively and supplemental Regional criteria. state level (i.e., innovative approaches qualitatively? Interested applicants should contact and methodologies that use application • Does the applicant identify the their Regional PESP coordinator listed or other strategies to reduce the risks method that will be used to measure under Unit V of this document for more associated with pesticide use). Funds and document the project’s results information. awarded under the grant program quantitatively and qualitatively? should be sued to support the goal of • Will the project assess or suggest a III. Eligible Applicants reducing the risk/use of pesticides. State means for measuring progress in In accordance with the Act ‘‘. . . projects might focus on, for example: reducing risk/use of pesticides in the Federal agencies, universities, or others • Researching the effectiveness of United States? as may be necessary to carry out the multimedia communication activities 4. Likelihood the project can be purposes of the act, . . .’’ are eligible to for, including but not limited to: replicated to benefit other communities receive a grant; however, because of promoting local IPM activities, or the product may have broad utility to restrictions associated with the funds providing technical assistance to a widespread audience. Can this project, appropriated for this program, the pesticide users; collecting and analyzing taking into account typical staff and eligible applicants are limited. Eligible data to target outreach and technical financial restraints, be replicated by

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00031 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15330 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices similar organizations in different Region IX: (Arizona, California, and downloaded from EPA’s homepage, locations to address the same or similar Hawaii, Nevada, American Samoa, http://www.epa.gov/owm/mab/ problem? Guam), Roccena Lawatch, (CMD4–3), 75 owm0315.pdf. Hawthorne St., San Francisco, CA C. Program Management Dated: March 16, 2000. 94105, Telephone: (415) 744–1068, Michael B. Cook, Awards of FY’00 funds will be [email protected]. Director, Office of Wastewater Management. managed through the EPA Regional Region X: (Alaska, Idaho, Oregon, Offices. Washington), Karl Arne, Sandy Halstead [FR Doc. 00–7124 Filed 3–21–00; 8:45 am] (ECO–084), 1200 Sixth Ave., Seattle, BILLING CODE 6560±50±P D. Contacts WA 98101, Telephone: (206) 553–2576, A generic request for proposal may be [email protected] ENVIRONMENTAL PROTECTION available on EPA’s PESP web site on or [email protected]. AGENCY before March 22, 2000, at http:// List of Subjects www.epa.gov/oppbppd1/PESP/ [OPP±00593A; FRL±6484±5] grants.htm. Interested applicants must Environmental protection. also contact the appropriate EPA Dated: March 16, 2000. Pesticides; Policy Issues Related to the Food Quality Protection Act Regional PESP coordinator listed under Phillip Hutton, Unit V of this document to obtain Acting Director, Biopesticides and Pollution AGENCY: Environmental Protection specific instructions, regional criteria, Prevention Division, Office of Pesticide Agency (EPA). and guidance for submitting proposals. Programs. ACTION: Notice of availability. V. Regional Pesticide Environmental [FR Doc. 00–7127 Filed 3–21–00; 8:45 am] SUMMARY: Stewardship Program Contacts BILLING CODE 6560±50±F EPA is announcing the availability of the revised version of the Region I: (Connecticut, Maine, pesticide science policy document Massachusetts, New Hampshire, Rhode ENVIRONMENTAL PROTECTION entitled ‘‘Choosing a Percentile of Acute Island, Vermont), Robert Koethe, (CPT), AGENCY Dietary Exposure as a Threshold of 1 Congress St., Boston, MA 02203, Regulatory Concern.’’ This notice is the [FRL±6563±7] Telephone: (617) 918–1535, fifteenth in a series concerning science [email protected]. Availability of ``Award of Grants for the policy documents related to Food Region II: (New Jersey, New York, Special Projects and Programs Quality Protection Act and developed Puerto Rico, Virgin Islands), Audrey Authorized by this Agency's FY 2000 through the Tolerance Reassessment Moore, (MS–500), 2890 Woodbridge Appropriations Act'' Advisory Committee. Ave., Edison, NJ 08837, Telephone: FOR FURTHER INFORMATION CONTACT: (732) 906–6809, [email protected]. AGENCY: Environmental Protection Kathleen Martin, Environmental Region III: (Delaware, Maryland, Agency (EPA). Protection Agency (7509C), 401 M St., Pennsylvania, Virginia, West Virginia, ACTION: Notice of document availability. SW., Washington, DC 20460; telephone District of Columbia), Racine Davis, number: (703) 308–2857; fax number: SUMMARY: EPA is announcing (3WC32), 1650 Arch St., Philadelphia, (703) 305–5147; e-mail address: availability of a memorandum entitled PA 19103, Telephone: (215) 814–5797, [email protected]. [email protected]. ‘‘Award of Grants for the Special SUPPLEMENTARY INFORMATION: Region IV: (Alabama, Florida, Georgia, Projects and Programs Authorized by Kentucky, Mississippi, North Carolina, this Agency’s FY 2000 Appropriations I. General Information Act.’’ This memorandum, dated March South Carolina, Tennessee), Lora Lee A. Does this Action Apply to Me? Schroeder, 12th Floor, Atlanta Federal 14, 2000, provides information and Center, 61 Forsyth St., SW., Atlanta, GA guidelines on how EPA will award and You may be potentially affected by 30303–3104, Telephone: (404) 562– administer grants for the special projects this action if you manufacture or 9015, [email protected]. and programs identified in the State and formulate pesticides. Potentially Region V: (Illinois, Indiana, Michigan, Tribal Assistance Grants (STAG) affected categories and entities may Minnesota, Ohio, Wisconsin), David account of the Agency’s fiscal year (FY) include, but are not limited to: Macarus, (DT–8J), 77 West Jackson 2000 Appropriations Act (Public Law Blvd., Chicago, IL 60604, Telephone: 106–74). The STAG account provides (312) 353–5814, budget authority for funding 200 [email protected]. identified water, wastewater and Examples groundwater infrastructure projects, as of poten- Region VI: (Arkansas, Louisiana, New well as budget authority for funding the Categories NAICS tially af- Mexico, Oklahoma, Texas), Jerry fected enti- United States-Mexico Border program Collins, (6PD–P), 1445 Ross Ave., Suite ties and the Alaska Rural and Native 1200, Dallas, TX 75202, Telephone: Villages program. Each grant recipient Pesticide 32532 Pesticide (214) 665–7562, [email protected]. will receive a copy of this document pro- manufac- Region VII: (Iowa, Kansas, Missouri, from EPA. ducers turers Nebraska), Jamie Green, 901 N. 5th St., Pesticide ADDRESSES: SUPPLEMENTARY Kansas City, KS 66101, Telephone: (913) See formula- 551–7139, [email protected]. INFORMATION section for electronic tors access of the guidance memorandum. Region VIII: (Colorado, Montana, North Dakota, South Dakota, Utah, FOR FURTHER INFORMATION CONTACT: This listing is not intended to be Wyoming), Debbie Kovacs, (8P2–TX), Valerie G. Martin, (202) 260-7259 or exhaustive, but rather provides a guide 999 18th St., Suite 500, Denver, CO [email protected]. for readers regarding entities likely to be 80202–2466, Telephone: (303) 312– SUPPLEMENTARY INFORMATION: The affected by this action. Other types of 6417, [email protected]. subject memorandum may be viewed entities not listed could also be affected. The North American Industrial Classification System (NAICS) codes

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00032 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15331 have been provided to assist you and version of the official record, which advice to the Office of Pesticide others in determining whether or not includes printed, paper versions of any Programs (OPP). this action affects certain entities. If you electronic comments submitted during In addition, as directed by Vice have any questions regarding the an applicable comment period is President Albert Gore, EPA has been applicability of this action to a available for inspection in the Public working with the U.S. Department of particular entity, consult the person Information and Records Integrity Agriculture (USDA) and another listed under FOR FURTHER INFORMATION Branch (PIRIB), Rm. 119, Crystal Mall subcommittee of NACEPT, the TRAC, CONTACT. #2, 1921 Jefferson Davis Highway, chaired by the EPA Deputy Administrator and the USDA Deputy B. How Can I Get Additional Arlington, VA, from 8:30 a.m. to 4 p.m., Monday through Friday, excluding legal Secretary, to address FQPA issues and Information, Including Copies of This implementation. TRAC comprises more Document or Other Related Documents? holidays. The PIRIB telephone number is (703) 305–5805. than 50 representatives of affected user, 1. Electronically. You may obtain producer, consumer, public health, electronic copies of this document, the II. Background for the Tolerance environmental, states and other revised science policy document, and Reassessment Advisory Committee interested groups. The TRAC has met certain other related documents that (TRAC) seven times as a full committee from might be available from the Office of On August 3, 1996, the Food Quality May 27, 1998 through October 21, 1999. Pesticide Programs’ Home Page at http:/ Protection Act of 1996 (FQPA) was The Agency has been working with /www.epa.gov/pesticides/. On the signed into law. Effective upon the TRAC to ensure that its science Office of Pesticide Programs’ Home Page signature, the FQPA significantly policies, risk assessments of individual select ‘‘FQPA’’ and then look up the amended the Federal Insecticide, pesticides, and process for decision entry for this document under ‘‘Science Fungicide, and Rodenticide Act (FIFRA) making are transparent and open to Policies.’’ You can also go directly to the and the Federal Food, Drug, and public participation. An important listings at the EPA Home page at http:/ Cosmetic Act (FFDCA). Among other product of these consultations with /www.epa.gov. On the Home Page select changes, FQPA established a stringent TRAC is the development of a ‘‘Laws and Regulations’’ and then look health-based standard (‘‘a reasonable framework for addressing key science up the entry to this document under policy issues. The Agency decided that certainty of no harm’’) for pesticide ‘‘Federal Register--Environmental the FQPA implementation process and residues in foods to assure protection Documents.’’ You can go directly to the related policies would benefit from from unacceptable pesticide exposure; Federal Register listings at http:// initiating notice and comment on the provided heightened health protections www.epa.gov/fedrgstr/. The document major science policy issues. for infants and children from pesticide entitled ‘‘Responses to Public The TRAC identified nine science risks; required expedited review of new, Comments on the Office of Pesticide policy issue areas it believes were key safer pesticides; created incentives for Program’s Draft Science Policy to implementation of FQPA and Document’’ is available on EPA’s Home the development and maintenance of tolerance reassessment. The framework Page with the Federal Register effective crop protection tools for calls for EPA to provide one or more document at the above web site. farmers; required reassessment of documents for comment on each of the 2. Fax on demand. You may request existing tolerances over a 10-year nine issues by announcing their a faxed copy of the revised science period; and required periodic re- availability in the Federal Register. In policy document, as well as supporting evaluation of pesticide registrations and accordance with the framework information, by using a faxphone to call tolerances to ensure that scientific data described in a separate notice published (202) 401–0527. Select item 6046 for the supporting pesticide registrations will in the Federal Register of October 29, document entitled ‘‘Choosing a remain up-to-date in the future. 1998 (63 FR 58038), EPA is announcing Percentile of Acute Dietary Exposure as Subsequently, the Agency established through the Federal Register the a Threshold of Regulatory Concern.’’ the Food Safety Advisory Committee availability of a series of draft You may also follow the automated (FSAC) as a subcommittee of the documents concerning nine science menu. National Advisory Council for policy issues identified by the TRAC 3. In person. The Agency has Environmental Policy and Technology related to the implementation of FQPA. established an official record for this (NACEPT) to assist in soliciting input After receiving and reviewing comments action under docket control number from stakeholders and to provide input from the public and others, EPA is also OPP–00593A. In addition, the to EPA on some of the broad policy issuing revised science policy documents referenced in the framework choices facing the Agency and on documents which reflect changes made notice, which published in the Federal strategic direction for the Office of in response to comments. In addition to Register on October 29, 1998 (63 FR Pesticide Programs. The Agency has comments received in response to these 58038) (FRL–6041–5) have also been used the interim approaches developed Federal Register notices, EPA will inserted in the docket under docket through discussions with FSAC to make consider comments received during the control number OPP–00557. The official regulatory decisions that met FQPA’s TRAC meetings. Each of these issues is record consists of the documents standard, but that could be revisited if evolving and in a different stage of specifically referenced in this action, additional information became available refinement. Accordingly, as the issues and other information related to this or as the science evolved. As EPA’s are further refined by EPA in action, including any information approach to implementing the scientific consultation with USDA and others, claimed as Confidential Business provisions of FQPA has evolved, the they may also be presented to the SAP. Information (CBI). This official record Agency has sought independent review includes the documents that are and public participation, often through III. Summary of Revised Science Policy physically located in the docket, as well presentation of many of the science Guidance Document as the documents that are referenced in policy issues to the FIFRA Scientific EPA is responsible for regulating the those documents. The public version of Advisory Panel (SAP), a group of nature and amount of pesticide residues the official record does not include any independent, outside experts who in food under FFDCA. FFDCA section information claimed as CBI. The public provide peer review and scientific 408 authorizes EPA to set a tolerance or

VerDate 202000 19:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00033 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15332 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices an exemption from the requirement of a analysis to determine to what extent the food. It describes the statutory, tolerance if the Agency determines that estimated exposures at the high-end regulatory, and policy framework for the residues would be ‘‘safe.’’ The percentiles may be affected by this policy, as well as prior reviews and Agency performs various types of risk unusually high food consumption or comments. In addition, this section assessments to evaluate the safety of residue values. To the extent that one or provides background information on pesticides in food, including analyses to a few values from the input data sets dietary risk assessment in general and determine the nature and the amounts seem to ‘‘drive’’ the exposure estimates explains how the previous system of pesticides that people might be at the high end of exposure, OPP would (DRES—Dietary Risk Evaluation exposed to over a single day. This consider whether these values are System) and the current system science policy document discusses how representative and should be used as the (DEEM—Dietary Exposure Evaluation EPA generally applies the statutory primary basis for regulatory decision Model) work, as well as what input data safety standard to acute dietary risk making. In either scenario, EPA would sources are used and how. assessments as to pesticide residues in consider submissions by interested Section II addresses some of the foods. parties that question the specific issues and concerns raised The Environmental Protection appropriateness of the use of the 99.9th about using exposures at the estimated Agency’s Office of Pesticide Programs percentile in calculating the threshold 99.9th percentile in calculating the previously announced that, on an of concern for the particular risk threshold of concern. One issue is interim basis, it intended to use the assessment in question or question its whether the nature of the data bases 99.9th percentile of the distribution of use generally. available (i.e., robustness, adequacy, estimated acute dietary food exposures It is important to note here that the etc.) should preclude the use of the for calculating a threshold of concern above position refers to the 99.9th estimated 99.9th percentile for when probabilistic assessment percentile of exposure and not regulatory purposes since some consider techniques are used to model the consumption. The 99.9th percentile of the uncertainties associated with this distribution. OPP stated that it would exposure represents the joining of each population percentile to be too great. compare this percentile of estimated individual’s consumption data set with Examples of data used are USDA’s food exposure to the Population Adjusted randomly selected residue values from consumption survey data, registrant Dose (PAD), a value that reflects an the residue data set. The consumption crop field trials, USDA Pesticide Data amount of a pesticide to which a person values associated with the 99.9th Program (PDP) data, FDA monitoring may safely be exposed in one day. The percentile of exposure do not data, market basket surveys, etc. Other Agency published a notice in the necessarily represent the 99.9th issues include the treatment of data Federal Register on April 7, 1999 (64 FR percentile of consumption since it is ‘‘outliers,’’ representativeness and 16962) (FRL–6074–7), citing the both the selected consumption value adequacy of the data bases, and the availability of an interim policy and and residue concentration which is impact of Agency default values on requested public comment so that the responsible for determining exposure. exposure estimates. Concerns, therefore, views of all interested parties would be At this time, OPP’s current policy is exist about whether the estimates of the considered (US EPA, 1999a). used only with daily exposures to a 99.9th percentile of exposure are Based in part on the comments single chemical through the food sufficiently representative of actual received, this science policy document pathway only. Estimates of exposure exposure to be meaningful. This science was revised and is now being issued in through drinking water and residential policy document summarizes these its revised format. This revised uses are not sufficiently developed to concerns and how OPP has addressed document explains OPP’s policy and warrant inclusion in a probabilistic them. details some of the various concerns assessment. Establishing the threshold Section III addresses the issue of that have been raised, additional of concern for the food pathway using protectiveness of the estimated 99.9th associated public health-related issues, the 99.9th percentile of exposure is percentile of exposure with respect to as well as OPP’s plans for further considered to be a ‘‘first step’’ toward the general public health. One view is evaluation and implementation. This regulation of exposures on an aggregate, that using the estimated 99.9th policy has broad applicability to many and then cumulative, basis. percentile of exposure is insufficiently pesticides and a potentially significant OPP recognizes that different types of conservative because very large impact on the assessment of these risk assessments will generally be numbers of people could be exposed pesticides. needed for aggregate and cumulative every day to pesticide intakes which are OPP’s current approach with respect evaluations and that these assessments estimated to exceed the Agency’s ‘‘level to assessing and regulating the food uses might also be associated with different of concern.’’ This section also explores of pesticides, when using a probabilistic regulatory thresholds. Although OPP is the contrary view that the policy is over- method of estimating acute dietary moving toward regulating on the basis protective because of the conservative exposure, is as follows: of probabilistic aggregate and assumptions used in the estimation If the 99.9th percentile of acute cumulative exposure assessments, a methods and the retention of potentially exposure from food, as estimated by decision has not yet been made unrepresentative values in the data base. probabilistic (e.g., Monte Carlo) regarding how the appropriate threshold The section discusses as well the view analysis, is equal to or less than the of concern should be calculated for that, whether it over-estimates or under- acute Population Adjusted Dose (aPAD) these types of assessments. When estimates actual exposure, the estimated for the pesticide, then OPP would exposures through drinking water and 99.9th percentile of exposure is simply generally consider its threshold of residential uses are sufficiently refined too uncertain to be used in risk concern in applying that the safety to be incorporated into probabilistic management decisions. standard of FFDCA section 408(B)(2)(A) evaluations, they will be aggregated and Section III also explains that OPP not to be exceeded with respect to acute assessed, and may use a different weighs a number of factors in risk from food. However, if the analysis population percentile. considering which percentile to use: indicates that estimated exposure at the Section I of this provides an overview The size of the exposed population and 99.9th percentile exceeds the PAD, OPP of OPP’s present practice for acute the proportion that might receive daily would generally conduct a sensitivity dietary risk assessment for residues in doses above the benchmark of safety,

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00034 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15333 the aPAD; the level of confidence OPP such cases, EPA will explain why a the FDIC: Alexander Hunt, Office of has in its exposure estimates; and the different course was taken. Similarly, Information and Regulatory Affairs, extent to which such estimates may outside parties remain free to assert that Office of Management and Budget, New overstate potential exposure because a policy is not appropriate for a specific Executive Office Building, Room 3208, they incorporate conservative pesticide or that the circumstances Washington, D.C. 20503. assumptions or rely on atypical and surrounding a specific risk assessment FOR FURTHER INFORMATION CONTACT: unrealistic data. Further, to the extent demonstrate that a policy should be Tamara R. Manly, at the address understood, OPP considers by how abandoned. identified above. much individual exposures would be List of Subjects SUPPLEMENTARY INFORMATION: Proposal estimated to exceed the aPAD. to Renew the Following Currently Section IV briefly addresses the issues Environmental protection, Approved Collections of Information associated with exploratory analysis Administrative practice and procedure, 1. Title: Fair Housing Lending conducted by OPP with the DEEM Agricultural commodities, Pesticides and pests. Monitoring System. software and the 99.9th percentile issue. OMB Number: 3064–0046. Further details and specifics of this Dated: March 16, 2000 Frequency of Response: Annually. analysis are provided in the associated Susan H. Wayland, Affected Public: Insured state response to public comments. Acting Assistant Administrator for nonmember banks. Section V provides a list of the Prevention, Pesticides and Toxic Substances. Estimated Number of Respondents: documents referenced in this science [FR Doc. 00–7126 Filed 3–21–00; 8:45 am] 2,000. policy document. BILLING CODE 6560±50±F Estimated Number of Loan The Appendix, entitled ‘‘Primer on Applications: 1,000,000. Interpretation of Exposure Distribution Estimated Time per Response: 5 Curves,’’ is a ‘‘plain English’’ guide to minutes. Monte Carlo analysis and interpretation FEDERAL DEPOSIT INSURANCE CORPORATION Estimated Total Annual Burden: of its results. 83,333 hours. IV. Issues Raised in Comments Agency Information Collection General Description of Collection: In Activities: Proposed Collection; EPA published a draft version of the order to permit the FDIC to detect Comment Request document described in Unit III. under discrimination in residential mortgage lending, certain insured state SUPPLEMENTARY INFORMATION on April 7, AGENCY: Federal Deposit Insurance nonmember banks are required by FDIC 1999 (64 FR 16962) and comments were Corporation (FDIC). regulation 12 CFR 338 to maintain filed in docket control number OPP– ACTION: Notice and request for comment. 00593. The public comment period various data on home loan applicants. ended on June 7, 1999. The Agency SUMMARY: The FDIC, as part of its 2. Title: Application for Federal received comments from numerous continuing effort to reduce paperwork Deposit Insurance. different organizations. All comments and respondent burden, invites the OMB Number: 3064–0001. were considered by the Agency in general public and other Federal Form Number: 6200/05. revising the document. agencies to take this opportunity to Frequency of Response: On occasion. Many of the comments were similar comment on proposed and/or Affected Public: All financial in content, and pertained to general continuing information collections, as institutions. issues concerning the proposed policy required by the Paperwork Reduction Estimated Number of Respondents: or specific sections within the draft Act of 1995 (44 U.S.C. chapter 35). 200. document. The comments addressed a Currently, the FDIC is soliciting Estimated Time per Response: 250 broad range of issues and, in many comments concerning the following hours. instances, provided no general collections of information titled: (1) Fair Estimated Total Annual Burden: consensus. The Agency grouped the Housing Lending Monitoring System; 50,000 hours. comments according to the nature of the (2) Application for Federal Deposit General Description of Collection: The comment and the issue or section of the Insurance; (3) Foreign Banks and (4) Federal Deposit Insurance Act requires document which they addressed. For Foreign Branch Report of Condition. a proposed bank or savings institution the substantive comments that follow, DATES: Comments must be submitted on to apply to the FDIC in order to obtain contrasting opinions are presented, or before May 22, 2000. federal deposit insurance. The form along with EPA’s response. The full text ADDRESSES: Interested parties are provides the information necessary for of the Agency’s response to the invited to submit written comments to the FDIC to make a determination. comments is available as described in Tamara R. Manly, Management Analyst 3. Title: Foreign Banks. Units I.B.1. and I.B.2. under (Regulatory Analysis), (202) 898–7453, OMB Number: 3064–0114. SUPPLEMENTARY INFORMATION. Office of the Executive Secretary, Room Frequency of Response: On occasion. F–4058, Attention: Comments/OES, Affected Public: Insured branches of V. Policies Not Rules Federal Deposit Insurance Corporation, foreign banks in the United States. The revised science policy document 550 17th Street N.W., Washington, D.C. Estimated Number of Respondents: discussed in this notice is intended to 20429. All comments should refer to the 418. provide guidance to EPA personnel and OMB control number. Comments may Estimated Time per Response: ranges decision-makers, and to the public. As be hand-delivered to the guard station at from 1⁄4 hour to 120 hours. a guidance document and not a rule, the the rear of the 17th Street Building Estimated Total Annual Burden: policy in this guidance is not binding on (located on F Street), on business days 4,398 hours. either EPA or any outside parties. between 7 a.m. and 5 p.m. [FAX number General Description of Collection: The Although this guidance provides a (202) 898–3838; Internet address: collection of information consists of (a) starting point for EPA risk assessments, comments @ fdic.gov]. applications to operate as a noninsured EPA will depart from its policy where A copy of the comments may also be state-licensed branch of a foreign bank; the facts or circumstances warrant. In submitted to the OMB desk officer for (b) applications from an insured state-

VerDate 202000 19:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00035 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15334 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices licensed branch of a foreign bank to FEDERAL MARITIME COMMISSION includes whether the acquisition of the conduct activities which are not nonbanking company complies with the permissible for a federally-licensed Ocean Transportation Intermediary standards in section 4 of the BHC Act branch; (c) internal recordkeeping by License (12 U.S.C. 1843). Unless otherwise insured branches of foreign banks; and noted, nonbanking activities will be (d) reporting requirements relating to an Applicant conducted throughout the United States. insured branch’s pledge of assets to the Notice is hereby given that the Additional information on all bank FDIC. following applicant has filed with the holding companies may be obtained from the National Information Center 4. Title: Foreign Branch Report of Federal Maritime Commission an website at www.ffiec.gov/nic/. Condition. application for license as a Non-Vessel Operating Common Carrier—Ocean Unless otherwise noted, comments OMB Number: 3064–0011. Transportation Intermediary pursuant to regarding each of these applications Form Number: FFIEC 030. section 19 of the Shipping Act of 1984 must be received at the Reserve Bank Frequency of Response: Quarterly/ as amended (46 U.S.C. app. 1718 and 46 indicated or the offices of the Board of Annually. CFR part 515). Governors not later than April 14, 2000. Affected Public: Foreign branches of Persons knowing of any reason why A. Federal Reserve Bank of Dallas (W. insured banks. the following applicant should not Arthur Tribble, Vice President) 2200 receive a license are requested to North Pearl Street, Dallas, Texas 75201– Estimated Number of Respondents: 2272: 41. contact the Office of Transportation Intermediaries, Federal Maritime 1. Burton Bancshares, Inc., Burton, Estimated Time per Response: 3.25 Commission, Washington, DC 20573. Texas, Burton Holdings, Inc., hours. Wilmington, Delaware, and Burton Estimated Total Annual Burden: 146 Non-Vessel-Operating Common Carrier Holdings, Inc., Burton, Texas; to become hours. Ocean Transportation Intermediary bank holding companies by acquiring Applicant General Description of Collection: The 100 percent of the voting shares of Foreign Branch Report of Condition, Global Total Logistics, LLC, 3885 Burton State Bank, Burton, Texas. Form FFIEC 030, contains asset and Meadow Park Lane, Torrance, CA B. Federal Reserve Bank of San liability information along with data on 90505, Officers: David Chiang, Francisco (Maria Villanueva, Consumer certain off balance sheet items for Manager (Qualifying Individual), Regulation Group) 101 Market Street, foreign branches of insured banks. Sumadi Kusuma, Manager. San Francisco, California 94105–1579: Dated: March 17, 2000. 1. EarthBank Corporation, San Mateo, Request for Comment California; to become a bank holding Bryant L. VanBrakle, Comments are invited on: (a) Whether company by acquiring 100 percent of Secretary. the voting shares of Monument the collection of information is [FR Doc. 00–7096 Filed 3–21–00; 8:45 am] necessary for the proper performance of Bancshares, Inc., Poland, Ohio, and BILLING CODE 6730±01±P the FDIC’s functions, including whether thereby indirectly acquire Monument the information has practical utility; (b) National Bank, Ridgecrest, California. the accuracy of the estimates of the Board of Governors of the Federal Reserve FEDERAL RESERVE SYSTEM burden of the information collection, System, March 16, 2000. including the validity of the Formations of, Acquisitions by, and Robert deV. Frierson, methodology and assumptions used; (c) Mergers of Bank Holding Companies Associate Secretary of the Board. ways to enhance the quality, utility, and [FR Doc. 00–7016 Filed 3–21–00; 8:45 am] clarity of the information to be The companies listed in this notice BILLING CODE 6210±01±P collected; and (d) ways to minimize the have applied to the Board for approval, burden of the information collection on pursuant to the Bank Holding Company respondents, including through the use Act of 1956 (12 U.S.C. 1841 et seq) (BHC GENERAL ACCOUNTING OFFICE of automated collection techniques or Act), Regulation Y (12 CFR part 225), other forms of information technology. and all other applicable statutes and Federal Accounting Standards At the end of the comment period, the regulations to become a bank holding Advisory Board comments and recommendations company and/or to acquire the assets or received will be analyzed to determine the ownership of, control of, or the AGENCY: General Accounting Office. the extent to which the collection power to vote shares of a bank or bank ACTION: Notice of meeting on April 13– should be modified prior to submission holding company and all of the banks 14, 2000. to OMB for review and approval. and nonbanking companies owned by Comments submitted in response to this the bank holding company, including Board Meeting Summary: Pursuant to notice also will be summarized or the companies listed below. section 10(a)(2) of the Federal Advisory included in the FDIC’s requests to OMB The applications listed below, as well Committee Act (Pub. L. No. 92–463), as for renewal of this collection. All as other related filings required by the amended, notice is hereby given that the comments will become a matter of Board, are available for immediate Federal Accounting Standards Advisory public record. inspection at the Federal Reserve Bank Board will hold a meeting on Thursday, indicated. The application also will be April 13, from 1 to 4 and Friday, April Federal Deposit Insurance Corporation. available for inspection at the offices of 14, from 9 to 3:30 p.m. room 7C13, the Dated at Washington, DC, this 16th day of the Board of Governors. Interested Elmer Staats Briefing Room, of the March, 2000. persons may express their views in General Accounting Office building, 441 Robert E. Feldman, writing on the standards enumerated in G St., NW, Washington, DC. Executive Secretary. the BHC Act (12 U.S.C. 1842(c)). If the The purpose of the meeting is to: [FR Doc. 00–7042 Filed 3–21–00; 8:45 am] proposal also involves the acquisition of • Approve procedures for Technical BILLING CODE 6714±01±P a nonbanking company, the review also Bulletins

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• Discuss the FASAB Technical consolidate its operations. To this end, prepare an EIS and conduct an initial Agenda Congress has authorized GSA, acting on public scoping meeting was issued on • Discuss Supplementary behalf of DOT, to acquire up to 1.35 June 30, 1999. The initial public scoping Stewardship reporting million rentable square feet of space meeting was held on July 29, 1999 to • Review the draft Implementation under an operating lease for a term not assist GSA in determining the Guide to exceed twenty years. This significant issues related to this project Any interested person may attend the procurement is designed to establish a prior to the submittal of offers. The meeting as an observer. Board competitive process to obtain a new or subject of this notice is a second public discussions and reviews are open to the renovated headquarters for DOT. scoping meeting that will be held to public. The DOT’s headquarters operations solicit input from agencies and the FOR FURTHER INFORMATION CONTACT: are currently housed primarily in two public relating to the alternative site Wendy Comes, Executive Director, 441 leased locations: the Nassif Building at locations that will be included in the G St., NW, Room 6814, Washington, DC 400 7th Street, SW, Washington, DC, EIS. 20548, or call (202) 512–7350. and the Transpoint Building at 2100 This second public scoping will be 2nd Street, SW, Washington, DC. In held at 7 pm on Tuesday, April 11, Authority: Federal Advisory Committee addition, DOT occupies smaller blocks 2000, at the Ronald Reagan Building Act. Pub. L. No. 92–463, Section 10(a)(2), 86 of leased space in other buildings in and International Trade Center. The Stat. 770, 774 (1972) (current version at 5 Washington, DC. All of these locations meeting will be advertised in local and U.S.C. app. section 10(a)(2) (1988); 41 CFR 101–6.1015 (1990). are proposed to be consolidated into the regional newspapers as the date of the new headquarters. DOT also utilizes meeting approaches. At the meeting, a Dated: March 17, 2000. FOB 10A as the headquarters for the short formal presentation will precede Wendy M. Comes, Federal Aviation Administration, but the request for public comments. GSA Executive Director. these operations are not proposed as representatives will be available to [FR Doc. 00–7129 Filed 3–21–00; 8:45 am] part of this consolidation. receive comments from the public BILLING CODE 1610±01±M DOT first occupied the Nassif regarding issues of concern, including Building under a 20-year lease that comments on the potential impacts of commenced on January 2, 1970. A 10- the proposed project, means of GENERAL SERVICES year renewal commenced April 1, 1990 mitigating those impacts, and project ADMINISTRATION and expires on March 31, 2000. The alternatives. It is important that Federal, Transpoint Building was first occupied regional, state and local agencies, and Notice of Second Public Scoping by DOT in 1973. The current lease interested individuals and groups take Meeting for an Environmental Impact expires in May 15th, 2003. this opportunity to identify Statement and the Announcement of Consolidation in a new or renovated environmental concerns that should be Alternative Sites headquarters will produce significant addressed during the preparation of the operating efficiencies in support of Draft EIS. In the interest of available AGENCY: General Services DOT’s mission. This procurement is the time, each speaker will be asked to limit Administration, National Capital result of a three-year collaborative effort oral comments to five (5) minutes. A Region; Department of Transportation. by the DOT, GSA, the Executive Branch, document summarizing the written and ACTION: Proposed lease acquisition of a and Congress. oral comments received will be new or renovated headquarters for the The lease acquisition for a DOT prepared and made publicly available. Department of Transportation in the headquarters complex is being Agencies and the general public are Central Employment Area (CEA) of conducted in accordance with all encouraged to provide written Washington, DC. applicable laws and regulations comments on the scoping issues in pertaining to GSA’s acquisition of lease addition to, or in lieu of, presenting oral SUMMARY: The General Services space. These laws and regulations comments at the public meeting. Administration (GSA), which include, but are not limited to, NEPA, Environmental review/scoping previously announced its intent to the Competition in Contracting Act, the comments should clearly describe prepare an Environmental Impact National Historic Preservation Act, the specific issues or topics that the Statement (EIS) for the lease acquisition General Services Acquisition community believes the EIS should of a new or renovated headquarters for Regulations, and, where applicable, the address. the Department of Transportation (DOT) Federal Acquisition Regulation. The Written comments will be accepted to be located in the CEA of Washington, Government is conducting this through April 24, 2000. The comments DC, at this time announces its intent to procurement as a negotiated, best value received during the scoping process will conduct a second public scoping source selection. Under this approach, a be considered in preparing the Draft meeting to discuss the proposed action panel of Government officials will select EIS. The public is encouraged to pursuant to Section 102(2)(C) of the the proposal that satisfies all of the provide additional comments after the National Environmental Policy Act of Government’s minimum requirements Draft EIS is released. GSA anticipates 1969 (NEPA), as implemented by the as stated in the Solicitation For Offers that the Draft EIS will be released in the Council of Environmental Quality (SFO), and presents the greatest overall Spring of 2000. regulations (40 CFR Parts 1500–1508), value to the Government, considering Topics for environmental analysis Section 106 of the National Historic price and technical factors stated in the include the short-term impacts of Preservation Act of 1966, as amended, SFO. construction and the long-term impacts and in accordance with the of site operations and maintenance on Environmental Policies and Procedures Public Scoping land use, historic resources, visual implemented by GSA. GSA and DOT determined that a resources, physical and biological comprehensive EIS is the appropriate resources, public transportation, traffic Background Information means of identifying the potential and parking, public services and DOT seeks to update its facilities, adverse impacts from this proposed utilities, and socio-economic maximize efficiency, and reorganize and Federal action. A Notice of Intent to conditions. The environmental analysis

VerDate 202000 16:47 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00037 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15336 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices will also address cumulative impacts DEPARTMENT OF HEALTH AND Fort Myer Drive, Suite 300, Arlington, associated with this and other future HUMAN SERVICES VA 22209 (1–800–351–2292) or Donnell projects in the CEA of the District of Savage at: 330 C Street, SW., Columbia. Administration for Children and Washington, DC 20447 (202) 205–8420 Families [email protected] Project Information [Program Announcement No. ACYF±PA± Eligible Applicants HS±2000±5] An informational packet regarding Universities, colleges, foundations, this project will be available for review Fiscal Year 2000 Discretionary professional organizations, public and at the April 11, 2000 public scoping Announcement for the Head Start private non-profit and for-profit meeting or upon request to the GSA Fellow Program; Availability of Funds agencies and organizations. contact identified below. The and Request for Applications SUPPLEMENTARY INFORMATION: The informational packet and other purpose of this announcement is to information regarding this project will AGENCY: Administration on Children, request applications for the design and also be made available on the Internet. Youth and Families, ACF, DHHS. implementation of a National Head Start ACTION: Fiscal Year 2000 Discretionary The five (5) action alternative under Fellows Program as envisioned in the Announcement for the Head Start consideration by GSA as possible Head Start reauthorization of 1998. The Fellows Program; Availability of Funds locations for the consolidated DOT purpose of this National Head Start and Request for Applications. headquarters complex include the Fellows Program is to identify following: Statutory Authority 42 U.S.C. 9801, et individuals with outstanding leadership seq., The Head Start Act, as amended. potential and to involve them in a high Alt. #1—801 New Jersey Avenue, NW quality developmental experience Catalog of Federal Domestic which will provide them with a variety Alt. #2—400 7th Street, SW Assistance (CFDA): 93.600 Head Start of perspectives and experiences to help Alt. #3—1200 Maryland Avenue, SW Act as amended. SUMMARY: them develop their potential as the next Alt. #4—Southeast Federal Center Site, The Administration for Children and Families, Administration generation of leaders for the early Option A on Children, Youth and Families childhood and family services field. The Alt. #5—Southeast Federal Center Site, announces the availability of $1 million result of this initiative will be to Option B in funds to design and implement the improve the quality and effectiveness of Head Start and other early childhood TIME AND LOCATION OF MEETING: The National Head Start Fellow Program. We are seeking a partner with whom to development programs nationwide. public meeting will be held: At 7:00 Federal Share of Project Costs: The enter into a cooperative agreement. A p.m., Tuesday, April 11, 2000 at the maximum Federal share is to exceed $1 cooperative agreement is a form of Ronald Reagan Building and million for the first 12-month budget Federal financial assistance that allows International Trade Center Horizon period and $1 million for each substantial Federal involvement in the Ballroom, (Ground Level, 131⁄2 Street succeeding 12-month period. activities for which funds awarded. Entrance), 13th Street and Pennsylvania Matching Requirements: Non-Federal Note: In order to satisfactorily compete Avenue, NW, Washington, DC 20004. match is not required. under this announcement, it will be Anticipated Number of Projects to be DATES: Written comments regarding necessary for potential applicants to read the full announcement which is available funded: It is anticipated that one project environmental review of the proposed through the Head Start Bureau’s website: will be funded. DOT headquarters project must be www2.acf.dhhs.gov/programs/hsb/announce/ Evaluation Criteria postmarked no later than April 24, 2000, index.htm. Hard copies of the application to the following address: General may be obtained by writing or calling the Applications received by the due date Services Administration, Attn: Mr. John ACYF Operations Center or sending an E- will be reviewed and scored Simeon, Portfolio Development Division mail to: [email protected]. competitively. Experts in the field, (WPC), 7th and D Streets, SW., Suite DATES: The closing date and time for the generally persons from outside the 2002, Washington, DC 20407. receipt of applications is 5 p.m. (Eastern Federal government, will use the Time Zone) on May 22, 2000. Mailed or evaluation criteria listed below. FOR FURTHER INFORMATION PLEASE handcarried applications received after CONTACT: Mr. John Simeon, General a. Organization Profiles (40 points) the closing date will be classified as Services Administration, (202) 260– The extent to which the applicant late. 9586. provides a vitae on the project director/ ADDRESSES: Mail applications to: ACYF principal investigator and key project Dated: March 17, 2000. Operations Center, Attention: Head Start staff including resumes (name, address, Anthony E. Costa, Fellows Application, 1815 North Fort training, most relevant educational Assistant Regional Administrator Public Myers Drive, Suite 300, Arlington, VA background and other qualifying Buildings Service. 22209 (1–800–351–2293). Prior to experiences) and a short description of [FR Doc. 00–7059 Filed 3–21–00; 8:45 am] preparing and submitting an their responsibilities or contribution to BILLING CODE 6820±23±M application, in order to satisfactorily the applicant’s work plan. The extent to compete under this announcement, it which the applicant’s ability to will be necessary for potential effectively and efficiently administer a applicants to read the full project like the one proposed is announcement which is available described. The extent to which the through the Head Start Bureau’s mission of the organization is described website: www2.acf.dhhs.gov/programs/ as it relates to leadership development hsb/announce/index.htm within the early childhood and family FOR FURTHER INFORMATION CONTACT: service fields and how this project fits ACYF Operations Center at: 1815 North within that mission. Applicant provides

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00038 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15337 the assurance that the project director or delineates the project administration to alert them of the prospective another appropriate staff member will costs versus those expenses that will applications and receive instructions. attend six meetings annually in directly support the Fellows Applicants must submit any required Washington, D.C. to meet with federal individually and as a group. The budget material to the SPOCs as soon as staff to discuss issues related to the should include stipends to Fellows. The possible so that the program office can Fellows Program implementation. stipend should be tiered to obtain and review SPOC comments as accommodate a range of education and b. Approach (20 points) part of the award process. The applicant experience and would parallel the The extent to which the applicant Federal General Schedule 12–14 pay must submit all required materials, if outlines an acceptable plan of action range. Stipends should include funds to any, to the SPOC and indicate the date pertaining to the scope of the project support fringe benefits. The average of this submittal (or the date of contact and details how the proposed work will stipend and total amount of the $1 if no submittal is required) on the be accomplished. million of the budget that will be used Standard Form 424, item 16a. The extent to which the applicant for stipends for the Fellows must be Under 45 CFR 100.8(a)(2), a SPOC has describes the proposed approach and delineated. It is anticipated that the 60 days from the application deadline to strategies that will be taken to design major portion of the budget will be used comment on proposed new or the program, to recruit potential for stipends and direct costs of the competing continuation awards. participants, to support the Fellows. The other expenses to support SPOCs are encouraged to eliminate implementation and maintenance of the the participation of the Fellows should the submission of routine endorsements Fellows Program and to evaluate the also be described and budgeted within program’s effectiveness. the $1 million. as official recommendations. The extent to which the applicant Additionally, SPOCs are requested to describes its understanding of the goals State Single Point of Contact (SPOC) clearly differentiate between mere and purposes for the Fellows program This program is covered under advisory comments and those official and its relationship to developing Executive Order 12372, State process recommendations which leadership potential for the individuals ‘‘Intergovernmental Review of Federal may trigger the ‘‘accommodate or in the field and for improving the Programs,’’ and 45 CFR Part 100, explain’’ rule. A list of the Single State quality of early childhood programs. ‘‘Intergovernmental Review of Point of Contacts for each State and c. Objectives and Need for Assistance Department of Health and Human Territory can be found on the following (15 points) Services Program and Activities.’’ Under website: http://www.whitehouse.gov/ the Order, States may design their own omb/grants/spoc.html The extent to which the applicant process for reviewing and commenting When comments are submitted identifies and documents any relevant on proposed Federal assistance under directly to ACF, they should be economic, social, financial institutional covered programs. or other problems requiring a solution; addressed to: William Wilson, Head demonstrates the need for the Note: State territory participation in the Start Bureau, Office of Grants assistance; and states the principal and intergovernmental review process does not Management, 330 C. St. SW, subordinate objectives of the project. signify applicant eligibility for financial Washington, DC 20447. ATTN: Head assistance under a program. A potential Start Fellows Program. Supporting documentation or other applicant must meet the eligibility testimonies from concerned interests requirements of the program for which it is Reminder: In order to satisfactorily other than the applicant on the need for applying prior to submitting an application compete under this announcement, it assistance may be used. to its SPOC, if Applicable, or to ACF. will be necessary for potential If the proposed approach and applicants to read the full strategies require the technical The following jurisdictions have announcement which is available assistance of other colleges, universities, elected not to participate in the through the Head Start Bureau’s or nonprofit agencies, the proposal Executive Order process: Alabama, should include letters of commitment Alaska, Colorado, Connecticut, Hawaii, website: www2.acf.dhhs.gov/programs/ assuring their willingness to participate Idaho, Kansas, Louisiana, Minnesota, hsb/announce/index.htm. Mail and indicating the roles they would play Montana, Nebraska, New Jersey, New applications to: ACYF Operations in the project. York, Ohio, Oklahoma, Oregon, Center, Attention: Head Start Fellows Pennsylvania, South Dakota, Tennessee, Application, 1815 North Fort Myers d. Results or Benefits Expected Vermont, Virginia, Washington, Drive, Suite 300, Arlington, VA 22209 (15 points) American Samoa and Palau. Applicants (1–800–351–2293). from these jurisdictions or for projects The extent to which the applicant Dated: March 15, 2000. identifies the evaluation methodology administered by federally-recognized that will be used to determine the Indian Tribes need take no action in Patricia Montoya, specific and measurable results and regard to E.O. 12372. Although the Commissioner, Administration on Children, benefits to be derived which are jurisdictions listed above no longer Youth and Families. consistent with the objectives of the participate in the process, entities [FR Doc. 00–7020 Filed 3–21–00; 8:45 am] proposal, and indicates the anticipated which have met the eligibility BILLING CODE 4184±01±M contributions to policy, practice and/or requirements of the program are still theory. eligible to apply for a grant even if a State, Territory, Commonwealth, etc. e. Budget and Budget Justification does not have a SPOC. All remaining (10 points) jurisdictions participate in the The extent to which the project’s costs Executive Order process and have are reasonable in view of the activities established SPOCs. Applicants from to be carried out and the anticipated participating jurisdictions should outcomes. Provide a budget that contact their SPOC as soon as possible

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DEPARTMENT OF HEALTH AND allotments will be adjusted accordingly. Developmental Disabilities formula HUMAN SERVICES The individual allotments will be grant programs. available April 1, 2000 on the ADD A. The number of beneficiaries in Administration for Children and homepage on the Internet: http:// each State and Territory under the Families www.acf.dhhs.gov/programs/add/ Childhood Disabilities Beneficiary EFFECTIVE DATE: October 1, 2000. Future Federal Allotments to State Program are from Table 5.J10 of the notification of allotments for DDC and ‘‘Annual Statistical Supplement, 1999 to Developmental Disabilities Councils P&A will no longer be published in the (DDC) and Protection and Advocacy the Social Security Bulletin’’ issued by Federal Register, but will be available the Social Security Administration; (P&A) Formula Grant Programs for on the Internet address given above by Fiscal Year 2001. April 1st of each year. B. State data on Average Per Capita Income are from Table 1—Personal AGENCY: FOR FURTHER INFORMATION CONTACT: Administration on Income and Per Capita Personal Income Doris Lee, Grants Fiscal Management Developmental Disabilities (ADD), by State and Region, 1993–98 of the Specialist, Office of Management Administration for Children and ‘‘Survey of Current Business,’’ May, Services, Administration for Children, Families, Department of Health and 1999, issued by the Bureau of Economic Youth and Families, telephone (202) Human Services. Analysis, U.S. Department of 205–4626. ACTION: Notification of Fiscal Year 2001 Commerce; comparable data for the SUPPLEMENTARY INFORMATION: Federal Allotments to State Section Territories also were obtained from the Developmental Disabilities Councils 125 (a)(2) of the Act requires that Department of Commerce September, and Protection and Advocacy Formula adjustments in the amounts of State 1999; and Grant Programs. allotments shall be made not more often than annually and that States are to be C. State data on Total Population and SUMMARY: This notice sets forth Fiscal notified no less than six (6) months Working Population (ages 18–64) as of Year (FY) 2001 individual allotments before the beginning of the fiscal year in July 1, 1998, are from the ‘‘Estimate of and percentages to States administering which such adjustment is to take effect. Resident Population of the U.S. by the State Developmental Disabilities In relation to the State DDC allotments, Selected Age Groups and Sex,’’ issued Councils and Protection and Advocacy the description of service needs were by the Bureau of the Census, U.S. programs, pursuant to Section 125 and reviewed in the State plans and are Department of Commerce. Total Section 142 of the Developmental consistent with the results obtained population estimates for the Territories, Disabilities Assistance and Bill of Rights from the data elements and projected as of 1997, were issued May, 1998 under Act (Act). The allotment amounts are formula amounts for each State (Section press release CB98–80. The Territories based upon the FY 2000 Budget Request 125(a)(5)). working population was issued in the and are contingent upon congressional The Administration on Bureau of Census report, ‘‘General appropriations for FY 2001. If Congress Developmental Disabilities has updated Characteristics Report: 1980,’’ which is enacts and the President approves a the following data elements for issuance the most recent data available from the different appropriation amount, the of Fiscal Year 2001 allotments for the Bureau.

TABLE 1.ÐFY 2001 ALLOTMENTS ADMINISTRATION ON DEVELOPMENTAL DISABILITIES

Developmental Disabilities Percentage Councils

Alabama ...... $1,280,704 1.947839 Alaska ...... 408,984 .622029 Arizona ...... 864,880 1.315407 Arkansas ...... 747,603 1.137039 California ...... 5,658,558 8.606172 Colorado ...... 712,785 1.084084 Connecticut ...... 645,893 .982347 Delaware ...... 408,984 .622029 District of Columbia ...... 408,984 .622029 Florida ...... 2,778,080 4.225217 Georgia ...... 1,612,070 2.451817 Hawaii ...... 408,984 .622029 Idaho ...... 408,984 .622029 Illinois ...... 2,584,071 3.930146 Indiana ...... 1,425,566 2.168161 Iowa ...... 774,177 1.177456 Kansas ...... 594,253 .903807 Kentucky ...... 1,184,933 1.802179 Louisiana ...... 1,375,723 2.092354 Maine ...... 408,984 .622029 Maryland ...... 901,119 1.370523 Massachusetts ...... 1,250,543 1.901966 Michigan ...... 2,293,461 3.488154 Minnesota ...... 980,322 1.490984 Mississippi ...... 912,473 1.387792 Missouri ...... 1,290,019 1.962006 Montana ...... 408,984 .622029 Nebraska ...... 414,312 .630132 Nevada ...... 408,984 .622029

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TABLE 1.ÐFY 2001 ALLOTMENTS ADMINISTRATION ON DEVELOPMENTAL DISABILITIESÐContinued

Developmental Disabilities Percentage Councils

New Hampshire ...... 408,984 .622029 New Jersey ...... 1,452,791 2.209568 New Mexico ...... 449,515 .683673 New York ...... 4,036,228 6.138750 North Carolina ...... 1,767,777 2.688634 North Dakota ...... 408,984 .622029 Ohio ...... 2,791,669 4.245884 Oklahoma ...... 887,831 1.350313 Oregon ...... 683,935 1.040205 Pennsylvania ...... 3,026,521 4.603074 Rhode Island ...... 408,984 .622029 South Carolina ...... 1,030,500 1.567300 South Dakota ...... 408,984 .622029 Tennessee ...... 1,404,358 2.135906 Texas ...... 4,173,299 6.347223 Utah ...... 507,501 .771865 Vermont ...... 408,984 .622029 Virginia ...... 1,337,203 2.033769 Washington ...... 1,037,010 1.577201 West Virginia ...... 739,342 1.124475 Wisconsin ...... 1,249,657 1.900619 Wyoming ...... 408,984 .622029 American Samoa ...... 214,718 .326567 Guam ...... 214,718 .326567 Northern Mariana Islands ...... 214,718 .326567 Puerto Rico ...... 2,308,670 3.511285 Virgin Islands ...... 214,718 .326567

Total ...... 65,750,000 1 100.000000 1 Allocations are computed based on the requirements of Section 125(a)(3)(B), Reduction of Allotment of the Act.

TABLE 2.ÐFY 2001 ALLOTMENTS ADMINISTRATION ON DEVELOPMENT DISABILITIES

Protection and ad- vocacy Percentage

Alabama ...... $465,705 1.690534 Alaska ...... 267,768 .972012 Arizona ...... 388,730 1.411111 Arkansas ...... 277,337 1.006748 California ...... 2,347,035 8.519864 Colorado ...... 294,498 1.069044 Connecticut ...... 276,697 1.004425 Delaware ...... 267,768 .972012 District of Columbia ...... 267,768 .972012 Florida ...... 1,188,948 4.315945 Georgia ...... 653,949 2.373870 Hawaii ...... 267,768 .972012 Idaho ...... 267,768 .972012 Illinois ...... 951,104 3.452559 Indiana ...... 536,953 1.949168 Iowa ...... 273,978 .994555 Kansas ...... 267,768 .972012 Kentucky ...... 435,383 1.580464 Louisiana ...... 478,649 1.737522 Maine ...... 267,768 .972012 Maryland ...... 364,046 1.321507 Massachusetts ...... 466,490 1.693384 Michigan ...... 893,221 3.242440 Minnesota ...... 378,784 1.375006 Mississippi ...... 332,243 1.206060 Missouri ...... 490,603 1.780915 Montana ...... 267,768 .972012 Nebraska ...... 267,768 .972012 Nevada ...... 267,768 .972012 New Hampshire ...... 267,768 .972012 New Jersey ...... 551,995 2.003772 New Mexico ...... 267,768 .972012 New York ...... 1,423,590 5.167708

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TABLE 2.ÐFY 2001 ALLOTMENTS ADMINISTRATION ON DEVELOPMENT DISABILITIESÐContinued

Protection and ad- vocacy Percentage

North Carolina ...... 690,481 2.506483 North Dakota ...... 267,768 .972012 Ohio ...... 1,037,007 3.764391 Oklahoma ...... 329,068 1.194536 Oregon ...... 281,919 1.023382 Pennsylvania ...... 1,073,080 3.895338 Rhode Island ...... 267,768 .972012 South Carolina ...... 395,715 1.436467 South Dakota ...... 267,768 .972012 Tennessee ...... 525,514 1.907644 Texas ...... 1,594,404 5.787773 Utah ...... 267,768 .972012 Vermont ...... 267,768 .972012 Virginia ...... 543,539 1.973076 Washington ...... 413,862 1.502341 West Virginia ...... 289,650 1.051446 Wisconsin ...... 470,485 1.707886 Wyoming ...... 267,768 .972012 American Samoa ...... 143,255 .520024 Guam ...... 143,255 .520024 Northern Mariana Islands ...... 143,255 .520024 Puerto Rico ...... 897,039 3.256300 Virgin Islands ...... 143,255 .520024 DNA People Legal ...... Services 2 ...... 143,255 .520024

Total ...... $27,547,800 1 100.000000 4 1 In accordance with Public Law 104±183, Section 142(c)(5), $562,200 has been withheld to fund technical assistance. The statute provides for spending up to two percent (2%) of the amount appropriated under Section 143 for this purpose. Unused funds will be reallotted in accordance with Section 142(c)(1) of the Act. 2 American Indian Consortiums are eligible to receive an allotment under Section 142(c)(1)(A)(I) of the Act.

Dated: March 13, 2000 information, and to allow 60 days for 1320.3(c) and includes agency requests Sue E. Swenson, public comment in response to the or requirements that members of the Commissioner, Administration on notice. This notice solicits comments on public submit reports, keep records, or Developmental Disabilities. the electronic collection of data by FDA provide information to a third party. [FR Doc. 00–7019 Filed 3–21–00; 8:45 am] regarding FDA-regulated products of Section 3506(c)(2)(A) of the PRA (44 BILLING CODE 4184±01±U foreign origin that are being offered for U.S.C. 3506(c)(2)(A)) requires Federal import into the United States. agencies to provide a 60-day notice in DATES: Submit written comments on the the Federal Register concerning each DEPARTMENT OF HEALTH AND collection of information by May 22, proposed collection of information, HUMAN SERVICES 2000. including each proposed extension of an existing collection of information, Food and Drug Administration ADDRESSES: Submit written comments on the collection of information to the before submitting the collection to OMB [Docket No. 00N±0914] Dockets Management Branch (HFA– for approval. To comply with this 305), Food and Drug Administration, requirement, FDA is publishing notice Agency Information Collection 5630 Fishers Lane, rm. 1061, Rockville, of the proposed collection of Activities; Proposed Collection; MD 20852. All comments should be information set forth in this document. Comment Request; Importer's Entry identified with the docket number With respect to the following Notice; Extension found in brackets in the heading of this collection of information, FDA invites AGENCY: Food and Drug Administration, document. comments on: (1) Whether the proposed HHS. FOR FURTHER INFORMATION CONTACT: collection of information is necessary ACTION: Notice. JonnaLynn P. Capezzuto, Office of for the proper performance of FDA’s Information Resources Management functions, including whether the SUMMARY: The Food and Drug (HFA–250), Food and Drug information will have practical utility; Administration (FDA) is announcing an Administration, 5600 Fishers Lane, (2) the accuracy of FDA’s estimate of the opportunity for public comment on the Rockville, MD 20857, 301–827–4659. burden of the proposed collection of proposed collection of certain SUPPLEMENTARY INFORMATION: Under the information, including the validity of information by the agency. Under the PRA (44 U.S.C. 3501–3520), Federal the methodology and assumptions used; Paperwork Reduction Act of 1995 (the agencies must obtain approval from the (3) ways to enhance the quality, utility, PRA), Federal agencies are required to Office of Management and Budget and clarity of the information to be publish notice in the Federal Register (OMB) for each collection of collected; and (4) ways to minimize the concerning each proposed collection of information they conduct or sponsor. burden of the collection of information information, including each proposed ‘‘Collection of information’’ is defined on respondents, including through the extension of an existing collection of in 44 U.S.C. 3502(3) and 5 CFR use of automated collection techniques,

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00042 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15341 when appropriate, and other forms of located; (3) FDA manufacturer, the party The annual reporting burden is information technology. who manufactured, grew, assembled, or derived from the basic processes and Importer’s Entry Notice (OMB Control otherwise processed the goods (if more procedures used in fiscal year (FY) Number 0910–0046)—Extension than one, the last party who 1995. The total number of entries substantially transformed the product); submitted to the automated system in Section 801 of the Federal Food, Drug, (4) shipper, the party responsible for FY 1999 was 5,077,493. The total and Cosmetic Act (the act) (21 U.S.C. packing, consolidating, or arranging the number of entries less the disclaimed 381) charges FDA with the following shipment of the goods to their final entries will represent the total FDA responsibilities: (1) Ensuring that destination; (5) quantity and value of foreign-origin FDA-regulated foods, products entered into the automated the shipment; and (6) if appropriate, drugs, cosmetics, medical devices, and system. A total of 51 percent of all radiological health products offered for affirmation of compliance, a code that entries entered into the automated import into the United States meet the conveys specific FDA information, such system were entries dealing with FDA- same requirements of the act as do as registration number, foreign regulated products. The number of domestic products; and (2) preventing government certification, etc. This respondents is a count of filers who shipments from entering the country if information is collected electronically submit entry data for foreign-origin they are not in compliance. by the entry filer via the U.S. Customs FDA-regulated products. The estimated The information collected by FDA Service’s Automated Commercial reporting burden is based on consists of the following: (1) Product System at the same time he/she files an information obtained by FDA contacting code, an alpha-numeric series of entry for import with the U.S. Customs some potential respondents. Disclaimed characters that identifies each product Service. FDA uses the information to entries are not FDA commodities. FDA regulates; (2) FDA country of make admissibility decisions about FDA estimates the burden of this origin, the country where the FDA- FDA-regulated products offered for registered or FDA-responsible firm is import into the United States. collection of information as follows:

TABLE 1.ÐESTIMATED ANNUAL REPORTING BURDEN 1

Annual Fre- No. of Re- quency per Re- Total Annual Responses Hours per Re- Total Hours spondents sponse sponse

3,886 652 2,533,355 .14 354,669 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

Dated: March 15, 2000. public comment in response to the 1320.3(c) and includes agency requests William K. Hubbard, notice. This notice solicits comments on or requirements that members of the Senior Associate Commissioner for Policy, the information collection provisions public submit reports, keep records, or Planning, and Legislation. relating to the regulations which state provide information to a third party. [FR Doc. 00–7010 Filed 3–21–00; 8:45 am] that protocols for samples of biological Section 3506(c)(2)(A) of the PRA (44 BILLING CODE 4160±01±F products must be submitted to the U.S.C. 3506(c)(2)(A)) requires Federal agency. agencies to provide a 60-day notice in DATES: Submit written comments on the the Federal Register concerning each DEPARTMENT OF HEALTH AND collection of information by May 22, proposed collection of information, HUMAN SERVICES 2000. including each proposed extension of an existing collection of information, Food and Drug Administration ADDRESSES: Submit written comments before submitting the collection to OMB [Docket No. 00N±0928 ] on the collection of information to the Dockets Management Branch (HFA– for approval. To comply with this requirement, FDA is publishing notice Agency Information Collection 305), Food and Drug Administration, of the proposed collection of Activities; Proposed Collection; 5630 Fishers Lane, rm. 1061, Rockville, Comment Request; Request for MD 20852. All comments should be information set forth in this document. Samples and Protocols identified with the docket number With respect to the following found in brackets in the heading of this collection of information, FDA invites AGENCY: Food and Drug Administration, document. comments on: (1) Whether the proposed HHS. FOR FURTHER INFORMATION CONTACT: collection of information is necessary ACTION: Notice. JonnaLynn P. Capezzuto, Office of for the proper performance of FDA’s SUMMARY: The Food and Drug Information Resources Management functions, including whether the Administration (FDA) is announcing an (HFA–250), Food and Drug information will have practical utility; opportunity for public comment on the Administration, 5600 Fishers Lane, (2) the accuracy of FDA’s estimate of the proposed collection of certain Rockville, MD 20857, 301–827–4659. burden of the proposed collection of information by the agency. Under the SUPPLEMENTARY INFORMATION: Under the information, including the validity of Paperwork Reduction Act of 1995 (the PRA (44 U.S.C. 3501–3520), Federal the methodology and assumptions used; PRA), Federal agencies are required to agencies must obtain approval from the (3) ways to enhance the quality, utility, publish notice in the Federal Register Office of Management and Budget and clarity of the information to be concerning each proposed collection of (OMB) for each collection of collected; and (4) ways to minimize the information, including each proposed information they conduct or sponsor. burden of the collection of information extension of an existing collection of ‘‘Collection of information’’ is defined on respondents, including through the information, and to allow 60 days for in 44 U.S.C. 3502(3) and 5 CFR use of automated collection techniques,

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00043 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15342 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices when appropriate, and other forms of Section 660.36(a) requires, after each are manufacturers of any licensed information technology. routine establishment inspection by biological product. Respondents to the FDA, the submission of samples from a Request for Samples and Protocols collection of information under lot of final Reagent Red Blood Cell (OMB Control No. 0910–0206)— §§ 640.101(f)(2), 660.6(b), 660.36(a)(2) product along with a protocol Extension and (b), and 660.46(b) are manufacturers containing specific information. Section of the specific products referenced Under section 351 of the Public 660.36(a)(2) requires a protocol previously. The estimated number of Health Service Act (42 U.S.C. 262), FDA containing information including, but respondents for each regulation is based has the responsibility to issue not limited to, manufacturing records, on the annual number of manufacturers regulations that prescribe standards test records, and test results. Section that submitted samples and protocols designed to ensure the safety, purity, 660.36(b) requires a copy of the for biological products, including and potency of biological products and antigenic constitution matrix specifying submissions for lot release, surveillance, to ensure that licenses for such products the antigens present or absent to be licensing, or export. There are an are only issued when a product meets submitted to FDA at the time of initial estimated 350 manufacturers of licensed the prescribed standards. Under § 610.2 distribution of each lot. biological products, however, based on (21 CFR 610.2), FDA may at any time Section 660.46(a) provides information obtained from FDA’s data require manufacturers of licensed requirements for the frequency of base system, approximately 100 biological products to submit to FDA submission of samples from each lot of manufacturers submitted samples and samples of any lot along with the Hepatitis B surface antigen product, and protocols in 1998, under the regulations protocols showing the results of § 660.46(b) provides the requirements cited previously. FDA estimates that applicable tests prior to marketing the for the submission of a protocol approximately 86 manufacturers lot of the product. In addition to § 610.2, containing specific information along there are other regulations that require with each required sample. For § 660.46 submitted protocols under § 610.2 and the submission of samples and protocols products subject to official release by 14 manufacturers submitted protocols for specific licensed biological products FDA, one sample from each filling of under the regulations for the specific as follows: Sections 640.101(f) (21 CFR each lot is required to be submitted products. FDA had previously estimated 640.101(f)) (Immune Globulin (Human)), along with a protocol consisting of a 80, instead of 90, manufacturers would 660.6 (21 CFR 660.6) (Antibody to summary of the history or manufacture submit samples and protocols annually Hepatitis B Surface Antigen), 660.36 (21 of the product, including all results of under all the regulations cited CFR 660.36) (Reagent Red Blood Cells), each test for which test results are previously to account for biotechnology and 660.46 (21 CFR 660.46) (Hepatitis B requested by CBER. After notification of firms that are exempt from lot release Surface Antigen). official release is received, one sample requirements. Because biotechnology Section 640.101(f)(2) requires for each along with a protocol is required to be firms may still be required to submit lot of Immune Globulin (Human) submitted at an interval of 90 days. In samples and protocols for purposes product, the submission of all protocols addition, samples, which must be other than lot release, as explained relating to the history of the product and accompanied by a protocol, may at any previously, the number of respondents all results of all tests prescribed in the time be required to be submitted to FDA for § 610.2 in this estimate includes additional standards for the product. if continued evaluation is deemed them. The slight increase in the total Section 660.6(a) provides necessary. estimated number of respondents (100) requirements for the frequency of Samples and protocols are required by is due to a normal variation in annual submission of samples from each lot of FDA to help ensure the safety, purity, or submissions. Antibody to Hepatitis B Surface Antigen potency of the product because of the The total annual responses are based product, and § 660.6(b) provides the potential lot-to-lot variability of a on FDA’s final actions completed in requirements for the submission of a product produced from living fiscal year 1998, which totaled 7,221, for protocol containing specific information organisms. In cases of certain biological the various submission requirements of along with each required sample. For products (e.g., Albumin, Plasma Protein samples and protocols for biological § 660.6 products subject to official Fraction, and specified biotechnology products. The rate of final actions is not release by FDA, one sample from each and specified synthetic biological expected to change significantly in the filling of each lot is required to be products) that are known to have lot-to- next few years. The hours per response submitted along with a protocol lot consistency, official lot release is not are based on information provided by consisting of a summary of the history normally required. However, industry. The burden estimates or manufacture of the product, submissions of samples and protocols of provided by industry ranged from 1 to including all results of each test for these products may still be required for 5.5 hours. Under § 610.2, the hours per which test results are requested by the surveillance, licensing, and export response are based on the average of Center for Biologics Evaluation and purposes, or in the event that FDA these estimates and rounded to 3 hours. Research (CBER). After official release is obtains information that the Under the remaining regulations, the no longer required, one sample along manufacturing process may not result in hours per response are based on the with a protocol is required to be consistent quality of the product. submitted at an interval of 90 days. In The following burden estimate is for higher end of the estimate (rounded to addition, samples, which must be protocols required to be submitted with 5 or 6 hours) since more information is accompanied by a protocol, may at any each sample. The collection of samples generally required to be submitted in time be required to be submitted to FDA is not a collection of information under the protocol than under § 610.2. if continued evaluation is deemed 5 CFR 1320.3(h)(2). Respondents to the FDA estimates the burden of this necessary. collection of information under § 610.2 collection of information as follows:

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TABLE1.ÐESTIMATED ANNUAL REPORTING BURDEN 1

Annual Fre- 21 CFR Section No. of Re- quency per Re- Total Annual Hours per Re- Total Hours spondents sponse Responses sponse

610.2 86 82.72 7,114 3 21,342 640.101(f)(2) 5 4.40 22 5 110 660.6(b) 6 11.33 68 5 340 660.36(a)(2) and (b) 1 1 1 6 6 660.46(b) 2 8 16 5 80 Total 21,878 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

Dated: March 15, 2000. Office of Information and Regulatory label or accompanying labeling bear William K. Hubbard, Affairs, OMB, New Executive Office adequate directions for installation and Senior Associate Commissioner for Policy, Bldg., 725 17th St. NW., rm. 10235, use. Planning, and Legislation. Washington, DC 20503, Attn: Wendy Section 179.25(e) requires that food [FR Doc. 00–7012 Filed 3–21–00; 8:45 am] Taylor, Desk Officer for FDA. processors who treat food with radiation BILLING CODE 4160±01±F FOR FURTHER INFORMATION CONTACT: make and retain, for 1 year past the Peggy Schlosburg, Office of Information expected shelf life of the products up to Resources Management (HFA–250), a maximum of 3 years, specified records DEPARTMENT OF HEALTH AND Food and Drug Administration, 5600 relating to the irradiation process (e.g., HUMAN SERVICES Fishers Lane, Rockville, MD 20857, the food treated, lot identification, 301–827–1223. scheduled process, etc.). Food and Drug Administration SUPPLEMENTARY INFORMATION: In The records required by § 179.25(e) [Docket No. 99N±5325] compliance with 44 U.S.C. 3507, FDA are used by FDA inspectors to assess has submitted the following proposed compliance with the regulation that Agency Information Collection collection of information to OMB for establishes limits within which Activities; Submission for OMB review and clearance. radiation may be safely used to treat Review; Irradiation in the Production, food. The agency cannot ensure safe use Processing, and Handling of Food Irradiation in the Production, without a method to assess compliance Processing, and Handling of Food— with the dose limits, and there are no AGENCY: Food and Drug Administration, 21CFR Part 179 (OMB Control Number practicable methods for analyzing most HHS. 0910–0186—Extension) foods to determine whether they have ACTION: Notice. Under sections 201(s) and 409 of the been treated with ionizing radiation and are within the limitations set forth in SUMMARY: The Food and Drug Federal Food, Drug, and Cosmetic Act part 179. Records inspection is the only Administration (FDA) is announcing (the act) (21 U.S.C. 321(s) and 348), food way to determine whether firms are that the proposed collection of irradiation is subject to regulation as a complying with the regulations for information listed below has been food additive. The regulations providing treatment of foods with ionizing submitted to the Office of Management for uses of irradiation in the production, radiation. and Budget (OMB) for review and processing, and handling of food are In the Federal Register of December clearance under the Paperwork found in part 179 (21 CFR part 179). 29, 1999 (64 FR 73054), the agency Reduction Act of 1995. To assure safe use of radiation source, § 179.21(b)(1) requires that the label of requested comments on the proposed DATES: Submit written comments on the sources bear appropriate and accurate collections of information (hereinafter collection of information by April 21, information identifying the source of referred to as the 60-day notice). No 2000. radiation and the maximum energy of significant comments were received. ADDRESSES: Submit written comments radiation emitted by X-ray tube sources. FDA estimates the burden of this on the collection of information to the Section 179.21(b)(2)(i) requires that the collection of information as follows:

TABLE1.ÐESTIMATED ANNUAL RECORDKEEPING BURDEN1

Annual Frequency per Hours per Record- 21 CFR Section No. of Recordkeepers Recordkeeping Total Annual Records keeper Total Hours

179.25(e) 3 120 360 1 360 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

The number of firms who process food (mainly spices). FDA estimates that FSIS) has yet to issue a rule regarding food using irradiation is extremely this irradiation accounts for no more meat irradiation. Actual implementation limited. FDA estimates that there is a than 10 percent of the business for each of meat irradiation cannot take place single irradiation plant whose business of these firms. Although recent FDA until USDA/FSIS final regulations are in is devoted primarily (i.e., approximately rulemaking has authorized the place, which may not take place until 100 percent) to irradiation of food and irradiation of red meat, the United later this fiscal year. At this time, FDA other agricultural products. Two other States Department of Agriculture/Food has no basis for estimating the extent of firms also irradiate small quantities of Safety and Inspection Service (USDA/ changes in the food irradiation business

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00045 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15344 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices as a result of future USDA/FSIS actions. 20857, 301–827–7001, or e-mail: Name of Committee: Orally Inhaled Therefore, the average estimated burden [email protected], or FDA Advisory and Nasal Drug Products Subcommittee is based on the following: (1) A facility Committee Information Line, 1–800– of the Advisory Committee for devoting 100 percent of its business (or 741–8138 (301–443–0572 in the Pharmaceutical Science. 300 hours for recordkeeping annually) Washington, DC area), code 12532. General Function of the Committee: to food irradiation; and (2) facilities Please call the Information Line for up- To provide advice and devoting 10 percent of their business or to-date information on this meeting. recommendations to the agency on 60 hours (2 x 30 hours) for Agenda: The committee will discuss FDA’s regulatory issues. recordkeeping annually, to food biologics license application 99–0884, irradiation or (300 + 60)/3 = 120 x 3 EnbrelTM (etanercept, Immunex), for an Date and Time: The meeting will be firms x 1 hour = 360 hours annually. indication in patients with early held on April 26, 2000, 8:30 a.m. to 5:30 As stated in the 60-day notice, no rheumatoid arthritis. p.m. burden was estimated for the labeling Procedure: The meeting is open to the Location: 5630 Fishers Lane, Center requirements in §§ 179.21(b)(2)(i) and public from 8 a.m. to 2:30 p.m. for Drug Evaluation and Research (b)(2)(ii) and 179.26(c) because the Interested persons may present data, Advisory Committee conference room information to be disclosed is information, or views, orally or in 1066, Rockville, MD. information that has been supplied by writing, on issues pending before the FDA. Under 5 CFR 1320.3(c)(2), the committee. Written submissions may be Contact Person: Kimberly Littleton public disclosure of information made to the contact person by April 3, Topper, Center for Drug Evaluation and originally supplied by the Federal 2000. Oral presentations from the public Research (HFD–21), Food and Drug Government to the recipient for the will be scheduled between Administration, 5600 Fishers Lane, purpose of disclosure to the public is approximately 10:30 a.m. and 11:30 a.m. Rockville, MD 20857, 301–827–7001, e- not a collection of information. Time allotted for each presentation may mail: [email protected], or FDA Therefore in this notice, table 1 from the be limited. Those desiring to make Advisory Committee Information Line, 60-day notice (64 FR 73054 at 73055) formal oral presentations should notify 1–800–741–8138 (301–443–0572 in the estimated annual reporting burden is the contact person before April 3, 2000, Washington, DC area), code 12539. not included. and submit a brief statement of the Please call the Information Line for up- Dated: March 16, 2000. general nature of the evidence or to-date information on this meeting. William K. Hubbard, arguments they wish to present, the Agenda: The subcommittee will Senior Associate Commissioner for Policy, names and addresses of proposed discuss specific scientific issues where Planning, and Legislation. participants, and an indication of the the additional expertise of the [FR Doc. 00–7008 Filed 3–21–00; 8:45 am] approximate time requested to make subcommittee is needed to aid the their presentation. BILLING CODE 4160±01±F agency in refining draft guidances for Closed Committee Deliberations: The orally inhaled and nasal drug products meeting will be closed from 2:30 p.m. to in the areas of: (1) Chemistry, 5 p.m. to permit discussion and review DEPARTMENT OF HEALTH AND manufacturing, and controls; and (2) in of trade secret and/or confidential HUMAN SERVICES vitro and in vivo bioavailability/ information (5 U.S.C. 552b(c)(4)). bioequivalence. Food and Drug Administration Notice of this meeting is given under the Federal Advisory Committee Act (5 Procedure: Interested persons may Arthritis Advisory Committee; Notice U.S.C. app. 2). present data, information, or views, of Meeting Dated: March 15, 2000. orally or in writing, on issues pending before the committee. Written AGENCY: Food and Drug Administration, Linda A. Suydam, submissions may be made to the contact HHS. Senior Associate Commissioner. ACTION: Notice. person by April 19, 2000. Oral [FR Doc. 00–7006 Filed 3–21–00; 8:45 am] presentations from the public will be This notice announces a forthcoming BILLING CODE 4160±01±F scheduled between approximately 1 meeting of a public advisory committee p.m. to 2 p.m. Time allotted for each of the Food and Drug Administration DEPARTMENT OF HEALTH AND presentation may be limited. Those (FDA). At least one portion of the HUMAN SERVICES desiring to make formal oral meeting will be closed. presentations should notify the contact Name of Committee: Arthritis Food and Drug Administration person before April 19, 2000, and Advisory Committee. submit a brief statement of the general General Function of the Committee: Orally Inhaled and Nasal Drug nature of the evidence or arguments To provide advice and Products Subcommittee of the they wish to present, the names and recommendations to the agency on Advisory Committee for addresses of proposed participants, and FDA’s regulatory issues. Pharmaceutical Science; Notice of an indication of the approximate time Date and Time: The meeting will be Meeting requested to make their presentation. held on April 11, 2000, 8 a.m. to 5 p.m. Location: Holiday Inn, Walker and AGENCY: Food and Drug Administration, Notice of this meeting is given under Whetstone Rooms, Two Montgomery HHS. the Federal Advisory Committee Act (5 Village Ave., Gaithersburg, MD. ACTION: Notice. U.S.C. app. 2). Contact Person: Kathleen R. Reedy or Dated: March 14, 2000. LaNise S. Giles, Center for Drug This notice announces a forthcoming Evaluation and Research (HFD–21), meeting of a public advisory committee Linda A. Suydam, Food and Drug Administration, 5600 of the Food and Drug Administration Senior Associate Commissioner. Fishers Lane (for express delivery, 5630 (FDA). The meeting will be open to the [FR Doc. 00–7007 Filed 3–21–00; 8:45 am] Fishers Lane, rm. 1093), Rockville, MD public. BILLING CODE 4160±01±F

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DEPARTMENT OF HEALTH AND associated with the use of electric Dated: March 15, 2000. HUMAN SERVICES heating pads, and retinal photic injuries William K. Hubbard, from operating microscopes during Senior Associate Commissioner for Policy, Food and Drug Administration cataract surgery. Planning, and Legislation. [Docket No. 99N±4933] Section 1701(a)(4) of the Public [FR Doc. 00–7009 Filed 3–21–00; 8:45 am] Health Service Act (42 U.S.C. BILLING CODE 4160±01±F Agency Information Collection 300u(a)(4)) authorizes FDA to conduct Activities; Submission for OMB research relating to health information. Review; Comment Request; FDA FDA seeks to evaluate the clarity, DEPARTMENT OF HEALTH AND Safety Alert/Public Health Advisory timeliness, and impact of safety alerts HUMAN SERVICES Readership Survey and public health advisories by National Institutes of Health surveying a sample of recipients. AGENCY: Food and Drug Administration, Subjects will receive a questionnaire to HHS. National Cancer Institute; Targeted be completed and returned to FDA. The ACTION: Notice. Screening for Inhibitors of Human information to be collected will address Herpesvirus 8 DNA Polymerase SUMMARY: The Food and Drug how clearly actions for reducing risk are Activity Administration (FDA) is announcing explained, the timeliness of the that the proposed collection of information, and whether the reader has Opportunities for Cooperative information listed below has been taken any action to eliminate or reduce Research and Development Agreements submitted to the Office of Management risk as a result of information in the (CRADAs) are available for and Budget (OMB) for review and alert. Subjects will also be asked collaborations with the Screening clearance under the Paperwork whether they wish to receive future Technologies Branch (STB), Reduction Act of 1995. alerts electronically, as well as how the Developmental Therapeutics Program safety alert program might be improved. DATES: Submit written comments on the (DTP), National Cancer Institute (NCI) to collection of information by April 21, The information collected will be discover and develop inhibitors of 2000. used to shape FDA’s editorial policy for human herpesvirus 8 (HHV8) DNA the safety alerts and public health polymerase. Collaborative projects will ADDRESSES: Submit written comments advisories. Understanding how target focus upon the inhibition of HHV8 as it on the collection of information to the audiences view these publications will relates to the disease processes of Office of Information and Regulatory aid in deciding what changes should be cancers which occur in patients with Affairs, OMB, New Executive Office considered in their content, format, and AIDS. This has been identified as an Bldg., 725 17th St. NW., rm. 10235, method of dissemination. area of high national and international Washington, DC 20503, Attn: Wendy priority. Taylor, Desk Officer for FDA. In the Federal Register of November 26, 1999 (64 FR 66479), the agency FOR FURTHER INFORMATION CONTACT: AGENCY: National Cancer Institute, requested comments on the proposed Peggy Schlosburg, Office of Information National Institutes of Health, PHS, collections of information. No Resources Management (HFA–250), DHHS. significant comments were received. Food and Drug Administration, 5600 ACTION: Notice of opportunities for Fishers Lane, Rockville, MD 20857, FDA estimates the burden of this Cooperative Research and Development 301–827–1223. collection of information as follows: Agreements (CRADAs). SUPPLEMENTARY INFORMATION: In compliance with 44 U.S.C. 3507, FDA TABLE 1.ÐESTIMATED ANNUAL SUMMARY: Pursuant to the Federal 1 has submitted the following proposed REPORTING BURDEN Technology Transfer Act of 1986 (FTTA, collection of information to OMB for 15 U.S.C. 3710; and Executive Order Annual 12591 of April 10, 1987, as amended by review and clearance. No. of Fre- Total Hours the National Technology Transfer and FDA Safety Alert/Public Health Re- quency Annual per Total spond- per Re- Re- Hours Advancement Act of 1995), the National Advisory Readership Survey (OMB ents Re- sponses sponse Cancer Institute (NCI) of the National Control No. 0910–0341—Extension) sponse Institutes of Health (NIH) of the Public Section 705(b) of the Federal Food, 308 3 924 .172 157 Health Service (PHS) of the Department Drug, and Cosmetic Act (the act) (21 of Health and Human Services (DHHS) U.S.C. 375(b)) authorizes FDA to 1 There are no capital costs or operating seeks one or more Cooperative Research disseminate information concerning and maintenance costs associated with this and Development Agreements collection of information. imminent danger to public health by 2 Due to a clerical error, the reporting bur- (CRADAs) with pharmaceutical or any regulated product. The Center for den hours for ''Hours per Response'' that ap- chemical companies to discover and Devices and Radiological Health (CDRH) peared in the FEDERAL REGISTER of November develop new potential antiviral (HHV8) communicates these risks to user 26, 1999 (64 FR 66480) were incorrect. Table drug leads. The CRADA would have an 1 of this document contains the correct communities through two publications: information. expected duration of one (1) to five (5) (1) The FDA Safety Alert and (2) the years. The goals of the CRADA include Public Health Advisory. Safety alerts Based on the history of the safety alert the rapid publication of research results and advisories are sent to organizations and the public health advisory program, and timely commercialization of such as hospitals, nursing homes, it is estimated that an average of three products, methods of treatment or hospices, home health care agencies, collections will be conducted a year. prevention that may result from the manufacturers, retail pharmacies, and The total burden of response time is research. The CRADA Collaborator will other health care providers. Subjects of estimated at 10 minutes per survey. This have an option to negotiate the terms of previous alerts included spontaneous was derived by CDRH staff completing an exclusive or non-exclusive combustion risks in large quantities of the survey and through discussions with commercialization license to subject patient examination gloves, hazards the contacts in trade organizations. inventions arising under the CRADA

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00047 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15346 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices and which are subject of the CRADA cloned and characterized in the not authorized under the Federal Research Plan. laboratory of Dr. Robert Ricciardi and is Technology Transfer Act [15 U.S.C. ADDRESSES: Proposals and questions proprietary to the University of 3710(a)(d)(1)]. Pennsylvania. STB is implementing about this CRADA opportunity may be NCI and Collaborator Responsibilities addressed to Dr. Bjarne Gabrielsen, HTS against this target in collaboration Technology Development & with Dr. Ricciardi. Therefore, it is The role of the National Cancer Commercialization Branch, National anticipated that the University of Institute in this CRADA will include, Cancer Institute-Frederick Cancer Pennsylvania will either be a third party but not be limited to: Research & Development Center, to this CRADA collaboration or the 1. Providing intellectual, scientific, Fairview Center, Room 502, Frederick, potential CRADA collaborator would and technical expertise and experience MD 21701 (phone: 301–846–5465, fax: obtain rights to the target under a to the research project. 301–846–6820). separate agreement with the University 2. Providing the Collaborator with Scientific inquires should be of Pennsylvania. screening and test data for evaluation. 3. Planning research studies and submitted to Dr. Robert Shoemaker, Technology Sought Chief, Screening Technologies Branch, interpreting research results. National Cancer Institute-Frederick STB now seeks potential collaborators 4. Publishing research results. Cancer Research & Development Center, with novel or distinctive pure The role of the CRADA Collaborator Bldg. 431A, P.O. Box B, Frederick MD, compound collections suitable for high- may include, but not be limited to: 21702–1201 [phone: (301)–846–5432; throughput screening and medicinal 1. Providing significant intellectual, Fax: (301)–846–6844; e-mail and synthetic chemical expertise and scientific, and technical expertise or [email protected] . resources for follow-up and experience to the research project. optimization of antiviral drug leads. 2. Providing chemical libraries for use EFFECTIVE DATE: Inquiries regarding Primary consideration will be given to in high-throughput screening and CRADA proposals and scientific matters collaborators with large well- synthetic compounds necessary for may be forwarded at any time. characterized chemical libraries follow-up and optimization of leads Confidential, preliminary CRADA available as individual compounds in identified by screening. proposals, preferably two pages or less, multiwell plates. Availability of bulk 3. Planning research studies and must be submitted to the NCI within 30 compound for ‘‘hit’’ confirmation and interpreting research results. days from date of this publication. characterization and ability to rapidly 4. Publishing research results. Guidelines for preparing final CRADA perform synthetic work to optimize lead Selection criteria for choosing the proposals will be communicated shortly compounds will also be major factors in CRADA Collaborator may include, but thereafter to all respondents with whom consideration of potential CRADA not be limited to: initial confidential discussions will partners. 1. The ability to collaborate with NCI have established sufficient mutual on research and development of this interest. Collaborators Sought technology involving lead discovery/ SUPPLEMENTARY INFORMATION: Accordingly, DHHS now seeks optimization and biological evaluation. collaborative arrangements for the joint This ability can be demonstrated Technology Available STB and collaborator discovery research through experience, expertise, and the The Screening Technologies Branch and development of novel, clinically ability to contribute intellectually in (STB) of the Developmental useful, antiviral (HHV8) drugs of high this or related areas of drug discovery Therapeutics Program is an NCI public health priority. For research and development. extramural research activity dedicated collaborations with the commercial 2. The demonstration of adequate to the discovery of new potential lead sector, a Cooperative Research and resources to perform the research, molecules for antitumor, antiviral, or Development Agreement (CRADA) will development and commercialization of antimicrobial drug development. be established to provide for equitable this lead discovery/optimization and General background and contact distribution of intellectual property biological evaluation technology (e.g. information for the DTP are available on rights developed under the CRADA. facilities, personnel and expertise) and the Internet at http:// CRADA aims will include rapid accomplish objectives according to an www.dtp.nci.nih.gov. The STB publication of research results as well as appropriate timetable to be outlined in comprises an interdisciplinary research full and timely exploitation of any the CRADA Collaborator’s proposal. team, and appropriate resources, commercial opportunities. 3. The willingness to commit best expertise and experience, to carry out As a minimum, the successful effort and demonstrated resources to the all essential aspects of lead-discovery, Collaborator should either possess broad research, development and including high-throughput screening experience in most, if not all, of the commercialization of this technology as (HTS), cell-based bioassays, chemical following areas; or possess highly defined above. isolation, purification and structural specialized, unique expertise in one or 4. The willingness to cooperate with determinations. more of the following areas, as the National Cancer Institute in the STB’s principal lead-discovery particularly pertinent to drug lead- timely publication of research results. strategy employs high-throughput discovery and development: (a) creation 5. The agreement to be bound by the screening (HTS) to identify bioactive of chemical libraries for use in high- appropriate DHHS regulations relating molecules. The sought-for bioactivity is throughput drug screening; (b) ability to to human subjects, and all PHS policies defined by the specific type(s) of assay carry out or direct chemical synthetic relating to the use and care of laboratory and/or target(s) employed in the studies supporting lead-optimization, animals. primary screen(s) used for bioassay drug candidate selection and 6. The willingness to accept the legal support of the process. In the current development. provisions and language of the CRADA solicitation, CRADA partners are sought NCI will provide no funding to the with only minor modifications, if any. for discovery efforts targeted to the DNA Collaborator in as much as financial These provisions govern the equitable polymerase and processivity factor of contributions by the U.S. Government to distribution of patent rights to CRADA human herpesvirus 8. This target was non-Federal parties under a CRADA are inventions. Generally, the rights of

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00048 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15347 ownership are retained by the would have an expected duration of one interact with tubulin, have discovered a organization that is the employer of the (1) to five (5) years. The goals of the subgroup of steroid derivatives that inventor, with (1) the grant of a license CRADA include the rapid publication of have paclitaxel-like effects on tubulin. for research and other Government research results and timely Instead of inhibiting tubulin assembly, purposes to the Government when the commercialization of products or the new class induces formation of CRADA Collaborator’s employee is the methods of treatment that may result hyperstable microtubules and sole inventor, or (2) the grant of an from the research. The CRADA hypernucleates tubulin assembly. option to elect an exclusive or non- Collaborator will have an option to However, the most active molecules so exclusive license to the CRADA negotiate the terms of an exclusive or far discovered are considerably less Collaborator when the Government non-exclusive commercialization active than paclitaxel and have limited employee is the sole inventor. license to subject inventions arising cytotoxicity. Details are in U.S. Dated: March 7, 2000. under the CRADA and which are subject Provisional Patent Application Serial of the CRADA Research Plan, and can Kathleen Sybert, No. 60/161,533 available under an apply for background licenses to the appropriate Confidential Disclosure Chief, Technology Development & Commercialization Branch, National Cancer existing patent described above, subject Agreement. to any pre-existing licenses already Institute, National Institutes of Health. Technology Sought [FR Doc. 00–7050 Filed 3–21–00; 8:45 am] issued for other fields of use. Dr. Mark Cushman of Purdue University is a co- Accordingly, DHHS now seeks BILLING CODE 4140±01±P inventor on the U.S. Provisional Patent collaborative arrangements for the Application Serial No. 60/161,533, screening, joint elucidation, evaluation DEPARTMENT OF HEALTH AND entitled ‘‘B-Homoestra-1,3,5(10)-trienes and development of novel compounds HUMAN SERVICES as Modulators of Tubulin and methods to produce more active Polymerization.’’ Therefore, it is paclitaxel-like compounds. For National Institutes of Health anticipated that negotiations with collaboration with the commercial Purdue University regarding their sector, a Cooperative Research and National Cancer Institute; Steroid interest in the original patent Development Agreement (CRADA) will Derivatives with Paclitaxel-Like application would be required if the be established to provide for equitable Activity potential CRADA collaborator required distribution of intellectual property rights developed under the CRADA. An opportunity is available for a exclusive rights to the technology CRADA aims will include rapid Cooperative Research and Development encompassed by this patent. publication of research results as well as Agreement (CRADA) for the purpose of ADDRESSES: Proposals and questions full and timely exploitation of any collaborating with the Screening about this CRADA opportunity may be commercial opportunities. Technology Branch, National Cancer addressed to Dr. Bjarne Gabrielsen, Institute (STB, NCI) on further research Technology Development & NCI and Collaborator Responsibilities Commercialization Branch, National and development of U.S. government- The role of the laboratory of Dr. owned technology encompassed within Cancer Institute-Frederick Cancer Research & Development Center, Hamel, STB, NCI in this CRADA will U.S. Provisional Patent Application include, but not be limited to: Serial No. 60/161,533, entitled ‘‘B- Fairview Center, Room 502, Frederick, MD 21701 (phone: 301–846–5465, fax: 1. Providing intellectual, scientific, Homoestra-1,3,5(10)-trienes as and technical expertise and experience Modulators of Tubulin Polymerization.’’ 301–846–6820). Scientific inquiries should be directed to the research project. AGENCY: National Cancer Institute, to Dr. Ernest Hamel, Senior Investigator, 2. Undertake evaluation of National Institutes of Health, PHS, Screening Technology Branch, National compounds in their interactions with DHHS. Cancer Institute-Frederick Cancer purified tubulin and examination of ACTION: Notice of opportunity for Research & Development Center, Bldg. effects of promising compounds on cell cooperative research and development 469, Rm. 237, Frederick, MD 21702– growth and morphology. It is (CRADA). 1201 [phone: (301)-846–1678; fax: (301)- anticipated that such screening efforts would also reveal compounds that SUMMARY: Pursuant to the Federal 846–6014]; e-mail: [email protected] inhibit tubulin assembly and that have Technology Transfer Act of 1986 (FTTA, significant inhibitory effects on 15 U.S.C. 3710; and Executive Order EFFECTIVE DATE: Inquiries regarding angiogenesis. 12591 of April 10, 1987, as amended by CRADA proposals and scientific matters 3. Planning research studies and the National Technology Transfer and may be forwarded at any time. interpreting research results. Advancement Act of 1995), the National Confidential preliminary CRADA 4. Publishing research results. Cancer Institute (NCI) of the National proposals, preferably two pages or less, The role of the CRADA Collaborator Institutes of Health (NIH) of the Public must be submitted to the NCI on or may include, but not be limited to: Health Service (PHS) of the Department before June 20, 2000. Guidelines for 1. Providing significant intellectual, of Health and Human Services (DHHS) preparing final CRADA proposals will scientific, and technical expertise or seeks a Cooperative Research and be communicated shortly thereafter to experience to the research project such Development Agreement (CRADA) with all respondents with whom initial as lead optimization, organic synthetic a pharmaceutical or biotechnology confidential discussions will have efforts directed toward new analogs, company to develop new drugs and established sufficient mutual interest. derivatives. therapeutic methods based on screening SUPPLEMENTARY INFORMATION: 2. Planning research studies and pre-existing steroid libraries from the interpreting research results. collaborator for paclitaxel-like activities Technology Available 3. Providing technical expertise and/ and/or screening steroid derivatives DHHS scientists within the STB, NCI, or financial support for CRADA-related from a directed synthetic effort by the in a collaboration with the laboratory of research as outlined in the CRADA collaborator to produce more active Dr. Mark Cushman, Purdue University, Research Plan. paclitaxel-like compounds. The CRADA relating to steroid molecules that 4. Publishing research results.

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Selection criteria for choosing the DEPARTMENT OF HEALTH AND National Institutes of Health, 6001 CRADA Collaborator may include, but HUMAN SERVICES Executive Blvd., Bethesda, MD, 20892 not be limited to: which was published in the Federal 1. The ability to collaborate with NCI National Institutes of Health Register on February 9, 2000, 65 FR on further research and development of 6387. National Institute of Diabetes and this technology. This ability can be The meeting will now be held on Digestive and Kidney Diseases; Notice demonstrated through experience and March 24, 2000 at the same place from of Closed Meeting expertise in this or related areas of 11:30 AM to 1:30 PM. The meeting is technology indicating the ability to Pursuant to section 10(d) of the closed to the public. contribute intellectually to on-going Federal Advisory Committee Act, as Dated: March 15, 2000. research and development. amended (5 U.S.C. Appendix 2), notice 2. Expertise and experience in the LaVerne Y. Stringfield, is hereby given of the following Director, Office of Federal Advisory following areas: preclinical research and meeting. drug development of steroidal, Committee Policy. The meeting will be closed to the [FR Doc. 00–7046 Filed 3–21–00; 8:45 am] paclitaxel-like compounds; ability to public in accordance with the BILLING CODE 4140±01±M perform appropriate chemical synthetic provisions set forth in sections efforts to support structure/activity 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., (SAR) studies, lead-optimization, drug as amended. The grant applications and candidate selection and development. DEPARTMENT OF HEALTH AND the discussions could disclose HUMAN SERVICES 3. The demonstration of adequate confidential trade secrets or commercial resources to perform the research, property such as patentable material, National Institutes of Health development and commercialization of and personal information concerning this technology (e.g., facilities, individuals associated with the grant National Institute of Mental Health; personnel and expertise) and applications, the disclosure of which Notice of Closed Meetings accomplish objectives according to an would constitute a clearly unwarranted appropriate timetable to be outlined in invasion of personal privacy. Pursuant to section 10(d) of the the CRADA Collaborator’s proposal. Federal Advisory Committee Act, as 4. The willingness to commit best Name of Committee: National Institute of amended (5 U.S.C. Appendix 2), notice effort and demonstrated resources to the Diabetes and Digestive and Kidney Diseases is hereby given of the following research, development and Special Emphasis Panel, [ZDK1–GRB–1 (M3)P]. meetings. commercialization of this technology. Date: April 10–11, 2000. The meetings will be closed to the 5. The demonstration of expertise in Time: 7 pm to 5 pm. public in accordance with the the commercial development, Agenda: To review and evaluate grant provisions set forth in sections production, marketing and sales of applications. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., products related to this area of Place: Courtyard by Marriott, 3899 as amended. The grant applications and technology. Jefferson Davis Highway, Arlington, VA the discussions could disclose 22202, (703) 549–3434. 6. The willingness to cooperate with confidential trade secrets or commercial the National Cancer Institute in the Contact Person: Carolyn Miles, PhD, Scientific Review Administrator, Review property such as patentable material, timely publication of research results. and personal information concerning 7. The agreement to be bound by the Branch, DEA, NIDDK Natcher Building, Room 6AS–43A National Institutes of Health individuals associated with the grant appropriate DHHS regulations relating Bethesda, MD 20892, (301) 594–7791. applications, the disclosure of which to human subjects, and all PHS policies (Catalogue of Federal Domestic Assistance would constitute a clearly unwarranted relating to the use and care of laboratory Program Nos. 93.847, Diabetes, invasion of personal privacy. animals. Endocrinology and Metabolic Research; Name of Committee: National Institute of 8. The willingness to accept the legal 93.848, Digestive Diseases and Nutrition Mental Health Special Emphasis Panel. provisions and language of the CRADA Research; 93.849, Kidney Diseases, Urology Date: March 29, 2000. and Hematology Research, National Institutes with only minor modifications, if any. Time: 10:00 a.m. to 12:00 p.m. of Health, HHS) These provisions govern the equitable Agenda: To review and evaluate grant distribution of patent rights to CRADA Dated: March 14, 2000. applications. inventions. Generally, the rights of LaVerne Y. Stringfield, Place: Neuroscience Center, National ownership are retained by the Director, Office of Federal Advisory Institutes of Health, 6001 Executive Blvd., organization that is the employer of the Committee Policy. Bethesda, MD 20892, (Telephone Conference Call). inventor, with (1) the grant of a license [FR Doc. 00–7045 Filed 3–21–00; 8:45 am] for research and other Government Contact Person: Jerry Cott, PHD, Scientific BILLING CODE 4140±01±M purposes to the Government when the Review Administrator, National Institute of Mental Health, NIH, 6001 Executive Blvd., CRADA Collaborator’s employee is the Room 7160, MSC 9635, Bethesda, MD 20892– sole inventor, or (2) the grant of an DEPARTMENT OF HEALTH AND 9635, (301) 443–1185. option to elect an exclusive or non- HUMAN SERVICES This notice is being published less than 15 exclusive license to the CRADA days prior to the meeting due to the timing Collaborator when the Government National Institutes of Health limitations imposed by the review and employee is the sole inventor. funding cycle. National Institute of Mental Health; Dated: March 7, 2000. Name of Committee: National Institute of Amended Notice of Meeting Kathleen Sybert, Mental Health Special Emphasis Panel. Date: April 4, 2000. Chief, Technology Development & Notice is hereby given of a change in Time: 1:30 p.m. to 2:30 p.m. Commercialization Branch, National Cancer the meeting of the National Institute of Agenda: To review and evaluate grant Institute, National Institutes of Health. Mental Health Special Emphasis Panel, applications. [FR Doc. 00–7051 Filed 3–21–00; 8:45 am] February 18, 2000, 11 AM to February Place: Neuroscience Center, National BILLING CODE 4140±01±P 18, 2000, 1 PM, Neuroscience Center, Institutes of Health, 6001 Executive Blvd.,

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Bethesda, MD 20892, (Telephone Conference Name of Committee: National Institute of Contact Person: Michael J. Moody, Call). General Medical Sciences Special Emphasis Scientific Review Administrator, Division of Contact Person: Jerry Colt, PHD, Scientific Panel Trauma and Burn. Extramural Activities, National Institute of Review Administrator, National Institute of Date: April 4–6, 2000. Mental Health, NIH, Neuroscience Center, Mental Health, NIH, 6001 Executive Blvd., Time: 8 p.m. to 12 p.m. 6001 Executive Blvd., Room 6154, MSC 9609, Room 7160, MSC 9635, Bethesda, MD 20892– Agenda: To review and evaluate grant Bethesda, MD 20892–9609, 301–443–3367. 9635, (301) 443–1185. applications. This notice is being published less than 15 This notice is being published less than 15 Place: Wyndham Garden Hotel, Pittsburgh days prior to the meeting due to the timing days prior to the meeting due to the timing University Place, 3454 Forbes Avenue, limitations imposed by the review and funding cycle. limitations imposed by the review and Pittsburgh, PA 15213. funding cycle. Contact Person: Michael A. Sesma, PhD, Name of Committee: National Institute of Name of Committee: National Institute of Scientific Review Administrator, Office of Mental Health Special Emphasis Panel. Mental Health Special Emphasis Panel. Scientific Review, National Institute of Date: March 29, 2000. Date: April 6, 2000. General Medical Sciences, Natcher Building, Time: 1:30 p.m. to 3 p.m. Time: 9:00 a.m. to 5:00 p.m. Room 1AS19H, 45 Center Drive, Bethesda, Agenda: To review and evaluate grant Agenda: To review and evaluate grant MD 20892, (301) 594–2048, applications. applications. [email protected]. Place: Neuroscience Center, National Place: Chevy Chase Holiday Inn, 5520 (Catalogue of Federal Domestic Assistance Institutes of Health, 6001 Executive Blvd., Wisconsin Ave., Chevy Chase, MD 20815. Program Nos. 93.375, Minority Biomedical Bethesda, MD 20892, (Telephone Conference Call). Contact Person: Sheila O’Malley, Scientific Research Support; 93.821, Cell Biology and Contact Person: Michael J. Moody, Review Administrator, Division of Biophysics Research; 93.859, Pharmacology, Scientific Review Administrator, Division of Extramural Activities, National Institute of Physiology, and Biological Chemistry Extramural Activities, National Institute of Mental Health, NIH, Neuroscience Center, Research; 93.862, Genetics and Mental Health, NIH, Neuroscience Center, Developmental Biology Research; 93.88, 6001 Executive Blvd., Room 6138, MSC 9606, 6001 Executive Blvd., Room 6154, MSC 9609, Minority Access to Research Careers; 93.96, Bethesda, MD 20892–9606, (301) 443–6470. Bethesda, MD 20892–9606, 301–443–3367. This notice is being published less than 15 Special Minority Initiatives, National This notice is being published less than 15 days prior to the meeting due to the timing Institutes of Health, HHS) days prior to the meeting due to the timing limitations imposed by the review and Dated: March 15, 2000. limitations imposed by the review and funding cycle. funding cycle. LaVerne Y. Stringfield, (Catalogue of Federal Domestic Assistance (Catalogue of Federal Domestic Assistance Program Nos. 93.242, Mental Health Research Director, Office of Federal Advisory Program Nos. 93.242, Mental Health Research Grants; 93.281, Scientist Development Committee Policy. Grants; 93.281, Scientist Development Award, Scientist Development Award for [FR Doc. 00–7048 Filed 3–21–00; 8:45 am] Award, Scientist Development Award for Clinicians, and Research Scientist Award; BILLING CODE 4140±01±M Clinicians, and Research Scientist Award; 93.282, Mental Health National Research 93.282, Mental Health National Research Service Awards for Research Training, Service Awards for Research Training, National Institutes of Health, HHS) DEPARTMENT OF HEALTH AND National Institutes of Health, HHS) Dated: March 15, 2000. HUMAN SERVICES Dated: March 15, 2000. LaVerne Y. Stringfield, LaVerne Y. Stringfield, National Institutes of Health Director, Office of Federal Advisory Director, Office of Federal Advisory Committee Policy. Committee Policy. National Institute of Mental Health; [FR Doc. 00–7047 Filed 3–21–00; 8:45 am] Notice of Closed Meetings [FR Doc. 00–7049 Filed 3–21–00; 8:45 am] BILLING CODE 4140±01±M BILLING CODE 4140±01±M Pursuant to section 10(d) of the Federal Advisory Committee Act, as DEPARTMENT OF HEALTH AND amended (5 U.S.C. Appendix 2), notice DEPARTMENT OF HEALTH AND HUMAN SERVICES is hereby given of the following HUMAN SERVICES meetings. National Institutes of Health Substance Abuse and Mental Health The meetings will be closed to the Services Administration National Institute of General Medical public in accordance with the Sciences; Notice of Closed Meeting provisions set forth in sections Office for Women's Services; Notice of 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Meeting as amended. The grant applications and Pursuant to section 10(d) of the Pursuant to Public Law 92–463, the discussions could disclose Federal Advisory Committee Act, as notice is hereby given of the meeting of confidential trade secrets or commercial amended (5 U.S.C. Appendix 2), notice the Advisory Committee for Women’s property such as patentable material, is hereby given of the following Services of the Substance Abuse and and personal information concerning meeting. Mental Health Services Administration individuals associated with the grant The meeting will be closed to the (SAMHSA) on March 30, 2000. public in accordance with the applications, the disclosure of which The meeting of the Advisory provisions set forth in sections would constitute a clearly unwarranted Committee for Women’s Services will 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., invasion of personal privacy. include a discussion of policy and as amended. The grant applications and Name of Committee: National Institute of program issues relating to women’s the discussions could disclose Mental Health Special Emphasis Panel. substance abuse and mental health confidential trade secrets or commercial Date: March 21, 2000. service needs; the SAMHSA fiscal year property such as patentable material, Time: 1:30 p.m. to 4 p.m. 2000 budget; resolutions adopted at the Agenda: To review and evaluate grant and personal information concerning applications. Committee’s November meeting; individuals associated with the grant Place: Neuroscience Center, National specific Committee goals for the current applications, the disclosure of which Institutes of Health, 6001 Executive Blvd., year, consideration of November would constitute a clearly unwarranted Bethesda, MD 20892, (Telephone Conference meeting minutes; and other policy invasion of personal privacy. Call). issues.

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A summary of the meeting and/or a DEPARTMENT OF THE INTERIOR must meet eligibility and application roster of committee members may be requirements described in this Federal obtained from: Nancy P. Brady, National Park Service Register notice to qualify for payment. Executive Secretary, Advisory This interim payment is intended to Committee for Women’s Services, Office Glacier Bay National Park, Alaska; mitigate 1999 income losses for for Women’s Services, SAMHSA, Dungeness Crab Commercial Fishery qualifying Dungeness crab fishery Parklawn Building, Room 13–99, 5600 Crewmember Interim Compensation crewmembers until the compensation Fishers Lane, Rockville, Maryland Program program under section (c) of the Act— 20857, Telephone: (301) 443–8964. AGENCY: National Park Service, Interior. and appropriate eligibility criteria, Substantive information may be priorities and levels of compensation for ACTION: Glacier Bay National Park obtained from the contact whose name crewmembers in the effected application procedures for the and telephone number is listed below. commercial fisheries—can be developed Dungeness crab commercial fishery and implemented. The amount of this Committee Name: Advisory Committee for crewmember interim compensation interim compensation payment will not Women’s Services. program. Meeting Date(s): March 30, 2000. exceed $10,000 per qualifying Meeting Time: 10 a.m.–Noon. SUMMARY: Section 123 (c) of the individual. This Federal Register notice Place: Room 12–94, Parklawn Building, Omnibus Consolidated and Emergency serves to provide application 5600 Fishers Lane, Rockville, MD 20857. Supplemental Appropriations Act for instructions for Dungeness crab fishery Open: March 30, 2000. FY 1999 (’’the Act’’), as amended by crewmembers who believe they qualify Contact: Nancy P. Brady, Room 13–99, section 501 of the 1999 Emergency for interim compensation. Applications Parklawn Building, Telephone: (301) 443– must be provided to the Compensation 8964. Supplemental Appropriations Act, Public Law 106–31 (05/21/99), Program Manager, Glacier Bay National This notice is being published less than 15 Park and Preserve, within 60 days of the days prior to the meeting due to the urgent authorizes compensation for fish need to meet timing limitations imposed by processors, fishing vessel crewmembers, publication date of this notice. the review and funding cycle. communities and others negatively DATES: Applications for the Dungeness crab commercial fishery crewmember Dated: March 15, 2000. affected by congressionally directed restrictions on commercial fishing in the interim compensation program will be Coral Sweeney, accepted on or before May 22, 2000. Review Specialist, SAMHSA. marine waters of Glacier Bay National Park. The National Park Service (NPS) ADDRESSES: Applications for the [FR Doc. 00–7013 Filed 3–21–00; 8:45 am] and the state of Alaska are currently Dungeness crab commercial fishery BILLING CODE 4162±20±P working to develop and implement a crewmember interim compensation compensation program broadly program should be submitted to the envisioned by Congress in the Act; Compensation Program Manager, Glacier Bay National Park and Preserve, DEPARTMENT OF THE INTERIOR completion of this compensation program is expected to require one to 2770 Sherwood Lane, Suite I, Juneau, Bureau of Land Management two years. This is a separate Alaska 99801. compensation program from that FOR FURTHER INFORMATION CONTACT: For information regarding the Dungeness [NV±055±1232±HB] specifically authorized for valid Dungeness crab commercial fishing crab commercial fishery compensation Temporary Closure of the Red Rock permit holders by Section 123(b) of the program, please contact Clark Millett, Canyon Visitors Center, Las Vegas, DOI & Related Agencies Approp. Act, Compensation Program Manager, Nevada 1999, (section 101(e) of division A of Glacier Bay National Park and Preserve, P.L. 105–277, as amended). NPS has 2770 Sherwood Lane, Suite I, Juneau, AGENCY: Bureau of Land Management, largely completed that specific Alaska 99801. Phone: (907) 586–7047. Interior. compensation program and eight SUPPLEMENTARY INFORMATION: The Act, ACTION: The Acting Field Manager, Las Dungeness crab fishermen/permit as amended, required Dungeness crab Vegas Field Office, Las Vegas, Nevada, holders were determined to be eligible fishermen to provide certain announces a temporary closure of the and have been compensated as required information sufficient to determine their Red Rock National Conservation Area, by the Act. More recently, NPS, with eligibility for compensation. NPS will Visitors Center, in Las Vegas, Nevada. concurrence of the state of Alaska, require similar corroborating The Red Rock Visitors Center needs responded to a congressional request documentation from Dungeness crab urgent repair and replacement of a hot and established an interim fishery crewmembers making tar roof. The Scenic Drive at the Red compensation program for Dungeness application for 1999 interim Rock Canyon will remain open. crab processors similarly qualified and compensation as described in this similarly effected by the 1999 closure of notice. Dungeness crab fishery EFFECTIVE DATES: The closure will go designated wilderness to commercial crewmembers must provide the into effect March 27, 2000 through Dungeness crab fishing (See 64 FR following information to the NPS March 31, 2000. The Visitors Center will 41134 [July 29, 1999.]) NPS, with Compensation Program Manager: (1) reopen on April 1, 2000. concurrence of the state of Alaska, now Full name, mailing address, and a FOR FURTHER INFORMATION CONTACT: responds to another congressional contact phone number. (2) A sworn and Sheree Fisher at (702) 647–5142 or Bob request and will provide interim notarized personal affidavit attesting to Dunn at (702) 647–5103. compensation for crewmembers who the applicant’s history of participation fished with any of the eight Dungeness in the Dungeness crab commercial Dated: March 15, 2000. crab fishermen compensated to date fishery as a crewmember for one or James R. Dunn, under provisions of section (b) of the more of the eight Dungeness crab Acting Field Manager. Act. Applicants for this interim fishermen already compensated, [FR Doc. 00–7089 Filed 3–21–00; 8:45 am] Dungeness crab commercial fishery including any two of three years during BILLING CODE 4310±MR±M crewmember compensation program the interim qualifying period, 1996–

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1998. The applicant must also attest that determination and set forth in writing parties to provide comments on the they intended to continue working as a the basis for the decision. A copy of the water supply contract renewal process. crewmember in the Dungeness crab decision will be forwarded promptly to DATES: A 30-day public review and commercial fishery in 1999. (3) A sworn the applicant and will constitute final comment period commences with the and notarized affidavit, from each of the agency action. Denial or receipt of publication of this notice. Written qualifying fishermen they worked for interim compensation as a Dungeness comments on the DEIS or the Corps’ during the interim qualifying period, crab fishery crewmember will not affect technical report should be submitted by 1996—1998, attesting to the applicant’s an applicant’s consideration for future April 21, 2000. participation in each of those interim compensation as a crewmember as part Written comments from interested qualifying years as a crewmember in the of a final compensation plan established parties unable to attend the hearing, commercial Dungeness crab fishery under the Act, as amended. those not wanting to make oral within either Beardslee Island or Dated: March 6, 2000. presentations, or those wishing to Dundas Bay wilderness areas. (4) Robert D. Barbee, supplement their oral presentations at the public hearing should be Documentation from the Alaska Regional Director, Alaska. Department of Fish and Game detailing transmitted to the Nebraska-Kansas Area [FR Doc. 00–7021 Filed 3–21–00; 8:45 am] the applicant’s history as a state Office by April 21, 2000, for inclusion licensed commercial fisheries BILLING CODE 4310±70±P in the public record. crewmember. (5) Copy of IRS Form A joint Reclamation/Corps public meeting has been scheduled to begin at 1099–MISC documenting income as a DEPARTMENT OF THE INTERIOR crewmember for qualifying Dungeness 7 p.m. on April 12, 2000. An informal crab commercial fishermen for each year Bureau of Reclamation public workshop has also been worked during the 1996–1998 interim scheduled from 10 a.m. to 4 p.m. qualifying period. Where crewmember Bostwick Division, Frenchman- ADDRESSES: The meeting and workshop income from other fisheries is included Cambridge Division, and Kanaska will be held at the Johnson Community in the IRS Form 1099–MISC this must Division, Almena Unit INT±DEIS±99±39 Center, 509 Main Street, in Alma, be noted and the amount attributable Nebraska. only to the Dungeness crab fishery AGENCY: Bureau of Reclamation, Written comments on Reclamation’s specified. (5) Any other available Interior. DEIS should be submitted to the Area corroborating information that can assist ACTION: Notice to reopen comment Manager (Attention: Judy O’Sullivan), in a determination of eligibility for period for draft environmental impact Nebraska-Kansas Area Office, P.O. Box interim compensation. The statement (DEIS) and announce 1607, Grand Island NE 68802. Written superintendent will make a written schedule for public workshop and comments on the Corps’ technical report determination on eligibility for public meeting. should be submitted to District compensation based on the Engineer, U.S. Army Corps of Engineers, documentation provided by the SUMMARY: Pursuant to section 102(2)(C) Kansas City District, 700 Federal applicant. The superintendent will also of the National Environmental Policy Building, 601 East Twelfth Street, make a written determination on the Act of 1969, as amended, the Kansas City MO 64106–2896. amount of 1999 interim compensation Department of the Interior, Bureau of You may request a Summary of the to be paid to an eligible applicant. The Reclamation (Reclamation), prepared a DEIS, the entire DEIS (with appendices) amount of interim compensation will be DEIS for the renewal of long-term water in printed copy or on computer disk, or based on the applicant’s average annual supply contracts for continued delivery the Corps’ technical report. Copies may pre-tax income as a crewmember in the of irrigation water from Federal projects be obtained from the above address or Dungeness crab commercial fishery in the Republican River basin in by telephone (308) 389–4622 x211. The during the 3-year interim qualifying Nebraska and Kansas. The DEIS DEIS and technical report is available period, 1996—1998, not to exceed described five alternatives, including no for public inspection and review on $10,000. NPS intends to complete action and a preferred alternative, and Reclamation’s Internet site at payment of interim compensation to a evaluated the environmental ‘‘www.gp.usbr.gov’’ in the ‘‘Current crewmember meeting the above consequences of renewing the long-term Activities’’ section under eligibility criteria within 45 days of water supply contracts and of ‘‘Environmental Activities.’’ In addition, receipt of a complete application. If an modifications to reservoir operations. the technical report can be viewed at the application for interim compensation is Public hearings were held in Nebraska two Corps’ Internet sites denied the superintendent will provide and Kansas to receive public comment ‘‘www.nwk.usace.army.mil’’ and the applicant the reasons for the denial on the DEIS. ‘‘www.nwk.usace.army.mil/haco/ l in writing. Any applicant adversely The Corps of Engineers (Corps), along harlan home.htm’’ affected by the superintendent’s with other Federal, State, and local See Supplementary Information determination may appeal to the entities, is a cooperating agency in the section for additional addresses where regional director, Alaska region, within water supply contract renewal process. the DEIS and/or technical report are 60 days. Applicants must substantiate Harlan County Lake in Nebraska is available for public inspection and the basis of their disagreement with the owned by the United States and review. superintendent’s determination. The managed by the Corps. Following FOR FURTHER INFORMATION CONTACT: Jill regional director will provide an completion of the initial 60-day public Manring, Basin Study Coordinator, opportunity for an informal oral review and comment period, Nebraska-Kansas Area Office, P.O. Box hearing, either in Anchorage or by Reclamation and the Corps continued to 1607, Grand Island NE 68802— teleconference. After consideration of receive public comment concerning telephone (308) 389–4622 x214; or written materials and oral hearing, if alternative operations at Harlan County Maria Chastain-Brand, Project Manager- any, and within a reasonable time, the Lake. The magnitude of these comments Harlan County Lake Study, U.S. Army regional director will affirm, reverse, or prompted Reclamation and the Corps to Corps of Engineers, Kansas City District, modify the superintendent’s allow additional time for all interested 700 Federal Building, 601 East Twelfth

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Street, Kansas City MO 64106–2896— • Corps of Engineers, Attention: Jim Dated: March 16, 2000. telephone (816) 983-3107. Bowen, Operations Manager, Harlan Fred R. Ore, SUPPLEMENTARY INFORMATION: County Lake, Route 1, Box 123A, Area Manager, Nebraska-Kansas Area Office. Reclamation has revised the preferred Republican City NE 68971—telephone [FR Doc. 00–7055 Filed 3–21–00; 8:45 am] (308) 799–2105. alternative by modifying minimum • BILLING CODE 4310±94±P reservoir surface elevations at Bostwick Irrigation District in Nebraska, Red Cloud NE. Reclamation reservoirs and by • implementing an agreement with the Kansas Bostwick Irrigation District DEPARTMENT OF THE INTERIOR Corps on the operation of Harlan County No. 2, Courtland KS. • Frenchman-Cambridge Irrigation Lake. A description of the revised Bureau of Reclamation District, Cambridge NE. preferred alternative is being distributed • Frenchman Valley and H&RW Bay-Delta Advisory Council Meeting in the Republican River Roundup Irrigation District, Culbertson NE. newsletter. Reclamation will not • Almena Irrigation District, Almena AGENCY: Bureau of Reclamation, prepare a revised DEIS because the KS. Interior. impacts associated with the modified ACTION: Notice of meeting. minimum reservoir surface elevations Libraries on Reclamation reservoirs and the • Alma Public Library, West Second SUMMARY: The Bay-Delta Advisory Harlan County Lake agreement fall Street, Alma NE 68920–3378. Council (BDAC) will meet on April 13, within the range of those evaluated in • Blue Hill Public Library, 317 West 2000 to discuss CALFED Preferred the No Action Alternative and Gage Street, Blue Hill NE 68930–2068. Program Alternative Recommendation, Reclamation’s Preferred Alternative in • Butler Memorial Library, 621 Governance, Water Management the DEIS. Pennsylvania, Cambridge NE 69022. Strategy, Ecosystem Restoration and The Corps has developed a technical • Franklin Public Library, 1502 P Updates. These meetings are open to the report addressing the potential impacts Street, Franklin NE 68939–1200. public. Interested persons may make of the revised preferred alternative on • Hastings Public Library, 517 West oral statements to BDAC, or may file Harlan County Lake. The Corps’ Fourth Street, Hastings NE 68901–7560. written statements for consideration. • technical report is being distributed to Imperial Public Library, 703 DATES: The BDAC meeting will be held the contract renewal mailing list on Broadway Street, Imperial NE 69033– from 9 a.m. to 5 p.m. on Thursday, April March 22, 2000, and will be 4017. 13, 2000. • Kearney Public Library, 2020 First incorporated into Reclamation’s Final ADDRESSES: The BDAC will meet at the EIS. The Corps, as a cooperating agency, Avenue, Kearney NE 68847–5306. • McCook Library, 802 Norris Sterling Hotel Ballroom, 1300 H Street, will consider comments on the effects of Sacramento, CA (916) 448–1300. the preferred alternative on Harlan Avenue, McCook NE 69001–3143. • Nelson Public Library, 10 West FOR FURTHER INFORMATION CONTACT: County Lake. In addition, the Corps will Third Street, Nelson NE 68961–1246. Eugenia Laychak, CALFED Bay-Delta prepare a separate Record of Decision • Red Cloud Public Library, 537 Program, at (916) 657–2666. If (ROD) concerning the relationship of the North Webster Street, Red Cloud NE reasonable accommodation is needed preferred alternative to the Corps’ 68970–2421. due to a disability, please contact the Harlan County Lake water control • Carnegie Public Library, 449 North Equal Employment Opportunity Office manual. Both Reclamation’s revised Kansas Street, Superior NE 68978–1852. at (916) 653–6952 or TDD (916) 653– preferred alternative and the Corps’ • Trenton Village Library, 406 East 6934 at least one week prior to the technical report can be reviewed at the First Street, Trenton NE 69044. meeting. locations listed below. • Wauneta City Library, 319 North SUPPLEMENTARY INFORMATION: Tecumseh, Wauneta NE 69045–2011. The San DEIS and Technical Report Public • Francisco Bay/Sacramento-San Joaquin Inspection and Review Locations Almena Public Library, 415 Main, Almena KS 67622. Delta Estuary (Bay-Delta system) is a Offices • Belleville Public Library, 1327 critically important part of California’s natural environment and economy. In • Bureau of Reclamation, Nebraska- Nineteenth Street, Belleville KS 66935. • Courtland City Library, 403 Main recognition of the serious problems Kansas Area Office, 203 West Second facing the region and the complex Street, Grand Island NE 68801— Street, Courtland KS 66939. • Northwest Kansas Library System, 2 resource management decisions that telephone (308) 389–4622. must be made, the state of California • Washington Square, Norton KS 67654. Bureau of Reclamation, Great Plains and the Federal government are working Regional Office, 316 North 26th Street, Meeting Information together to stabilize, protect, restore, Billings MT 59101—telephone (406) Please notify Judy O’Sullivan, and enhance the Bay-Delta system. The 247–7638. Reclamation (308–389–4622, x211) or State and Federal agencies with • Bureau of Reclamation, Jim Bowen, Corps, (308–799–2105) at management and regulatory Reclamation Service Center Library, least 1 week in advance of the responsibilities in the Bay-Delta system Building 67, Room 167, Denver Federal scheduled hearing if you require special are working together as CALFED to Center, Sixth and Kipling, Denver CO needs in order to participate in the provide policy direction and oversight 80225—telephone (303) 445–2072. public hearing. Those having special for the process. • Bureau of Reclamation, Office of needs should contact Judy O’Sullivan at One area of Bay-Delta management Policy, Room 7456, 1849 C Street NW, (308) 389–4622 x211 or through the includes the establishment of a joint Washington DC 20240—telephone (202) Federal Relay System at (800) 877–8339 State-Federal process to develop long- 208–4662. or via e-mail at term solutions to problems in the Bay- • Corps of Engineers, Kansas City ‘‘[email protected]’’ or Delta system related to fish and wildlife, District, 700 Federal Building, 601 East [email protected]. Smoking water supply reliability, natural Twelfth Street, Kansas City, MO 64106– will be prohibited in the hearing room disasters, and water quality. The intent 2896—telephone (816) 983–3107. and surrounding area. is to develop a comprehensive and

VerDate 202000 17:08 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00054 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15353 balanced plan which addresses all of the of the Secretary at 202–205–2000. Commission should contact the Office resource problems. This effort, the General information concerning the of the Secretary at 202–205–2000. CALFED Bay-Delta Program (Program), Commission may also be obtained by General information concerning the is being carried out under the policy accessing its internet server (http:// Commission may also be obtained by direction of CALFED. The Program is www.usitc.gov). accessing its internet server (http:// exploring and developing a long-term SUPPLEMENTARY INFORMATION: On www.usitc.gov). solution for a cooperative planning January 7, 2000, the Commission SUPPLEMENTARY INFORMATION: On process that will determine the most established a schedule for the conduct January 14, 2000, the Commission appropriate strategy and actions of the final phase of the subject established a schedule for the conduct necessary to improve water quality, investigation (65 FR 2643. January 18, of the subject 5-year reviews (Federal restore health to the Bay-Delta 2000). On March 1, 2000, the Register 65 FR 3737, January 24, 2000). ecosystem, provide for a variety of Commission published a notice in the The Commission has determined to beneficial uses, and minimize Bay-Delta Federal Register revising this schedule exercise its authority to extend the system vulnerability. A group of citizen (65 FR 11080). This revised schedule review period by up to 90 days pursuant advisors representing California’s provided for a public hearing to be held to 19 U.S.C. 1675(c)(5)(B), and is hereby agricultural, environmental, urban, on May 24, 2000. revising its schedule. business, fishing, and other interests The Commission now is revising the The Commission’s new schedule for who have a stake in finding long-term date of the hearing to May 25, 2000; the the reviews is as follows: requests to solutions for the problems affecting the hearing will be held at the U.S. appear at the hearing must be filed with Bay-Delta system has been chartered International Trade Commission the Secretary to the Commission not under the Federal Advisory Committee Building at 9:30 a.m. No other later than June 2, 2000; the prehearing Act (FACA). The BDAC provides advice scheduled dates relative to this conference will be held at the U.S. to CALFED on the program mission, investigation are being revised. International Trade Commission problems to be addressed, and For further information concerning Building at 9:30 a.m. on June 7, 2000; objectives for the Program. BDAC this investigation see the Commission’s the prehearing staff report will be provides a forum to help ensure public notice cited above and the placed in the nonpublic record on May participation, and will review reports Commission’s Rules of Practice and 25, 2000; the deadline for filing and other materials prepared by Procedure, part 201, subparts A through prehearing briefs is June 5, 2000; the CALFED staff. E (19 CFR part 201), and part 207, hearing will be held at the U.S. Minutes of the meeting will be subparts A and C (19 CFR part 207). International Trade Commission maintained by the Program, Suite 1155, Authority: This investigation is being Building at 9:30 a.m. on June 13, 2000; 1416 Ninth Street, Sacramento, CA conducted under authority of title VII of the the deadline for filing posthearing briefs 95814, and will be available for public Tariff Act of 1930; this notice is published is June 22, 2000; the Commission will inspection during regular business pursuant to section 207.21 of the make its final release of information on hours, Monday through Friday within Commission’s rules. July 14, 2000; and final party comments 30 days following the meeting. Issued: March 15, 2000. are due on July 18. Dated: March 16, 2000. By order of the Commission. For further information concerning Lester A. Snow, Donna R. Koehnke, the reviews see the Commission’s notice Regional Director, Mid-Pacific Region. Secretary. cited above and the Commission’s Rules [FR Doc. 00–7054 Filed 3–21–00; 8:45 am] [FR Doc. 00–7078 Filed 3–21–00; 8:45 am] of Practice and Procedure, part 201, subparts A through E (19 CFR part 201), BILLING CODE 7020±02±P BILLING CODE 4310±94±M and part 207, subparts A and C (19 CFR part 207). INTERNATIONAL TRADE INTERNATIONAL TRADE Authority: These reviews are being COMMISSION COMMISSION conducted under authority of title VII of the Tariff Act of 1930; this notice is published [Investigation No. 731±TA±539±C, E and F Investigation No. 731±1TA±856 (Final) pursuant to section 207.21 of the (Review)] Commission’s rules. Ammonium Nitrate from Russia Uranium from Russia, Ukraine and By order of the Commission. Uzbekistan Issued: March 15, 2000. AGENCY: International Trade Donna R. Koehnke, Commission. AGENCY: United States International Secretary. ACTION: Revised schedule for the subject Trade Commission. [FR Doc. 00–7077 Filed 3–21–00; 8:45 am] investigation. ACTION: Revised schedule for the subject BILLING CODE 7020±02±P 5-year reviews. EFFECTIVE DATE: March 15, 2000. FOR FURTHER INFORMATION CONTACT: EFFECTIVE DATE: March 15, 2000. INTERNATIONAL TRADE Karen Taylor (202–708–4101), Office of FOR FURTHER INFORMATION CONTACT: COMMISSION Investigations, U.S. International Trade Larry Reavis (202–205–3185), Office of Commission, 500 E Street SW, Investigations, U.S. International Trade Security Procedures for Persons Washington, DC 20436. Hearing- Commission, 500 E Street SW, Delivering/Picking Up Packages and impaired persons can obtain Washington, DC 20436. Hearing- Documents information on this matter by contacting impaired persons can obtain AGENCY: United States International the Commission’s TDD terminal on 202– information on this matter by contacting Trade Commission. 205–1810. Persons with mobility the Commission’s TDD terminal on 202– ACTION: Security Procedures—Persons impairments who will need special 205–1810. Persons with mobility Delivering/Picking Up Packages and assistance in gaining access to the impairments who will need special Documents. Commission should contact the Office assistance in gaining access to the

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SUMMARY: Effective immediately, all Commission business and other matters use of appropriate automated, persons delivering and picking up specified, as follows: electronic, mechanical, or other packages and documents to USITC Date and Time: Monday, April 3, technological collection techniques or offices and employees must report to the 2000, 9:30 am. other forms of information technology, mailroom, room 119 or the Office of the Subject Matter: Consideration of e.g., permitting electronic submission of Secretary, suite 112. Proposed Decisions on claims against responses. Between the hours of 8:45 a.m. to 5:15 Albania. Overview of this information p.m., Monday through Friday, excluding Status: Open. collection: weekends, holidays, and other days in All meetings are held at the Foreign (1) Type of information collection: which the agency is closed, such Claims Settlement Commission, 600 E Extension of currently approved persons are ONLY allowed to deliver Street, NW., Washington, DC. Requests collection. packages and documents to the for information, or advance notices of (2) Title of the form collection: mailroom, room 119 and the Office of intention to observe an open meeting, Application for Certificate of the Secretary, suite 112. may be directed to: Administrative Citizenship. During workdays prior to 8:45 a.m. Officer, Foreign Claims Settlement (3) Agency form number, if any, and and after 5:15 p.m. and all hours on Commission, 600 E Street, NW., Room the applicable component of the weekends, holidays and other days in 6002, Washington, DC 20579. Department of Justice sponsoring the which the agency is closed, such Telephone: (202) 616–6988. collection: Form N–600. Adjudications persons will report to the guards desk in Dated at Washington, DC, March 20, 2000. Division, Immigration and the lobby. The guard will call the David E. Bradley, Naturalization Service. intended recipient and request that they (4) Affected public who will be asked Chief Counsel. come to the main lobby and pick up the or required to respond, as well as a brief delivered material. If the guard’s calls [FR Doc. 00–7234 Filed 3–20–00; 2:19 pm] abstract: Primary: Individuals or are not answered, the guard will leave BILLING CODE 4410±BA±M households. This form is provided by a voice mail message stating that a the Service as a uniform format for package has been left in the USITC obtaining essential data necessary to DEPARTMENT OF JUSTICE depository box located on the first floor determine the applicant’s eligibility for center stairwell. Immigration and Naturalization Service the requested immigration benefit. EFFECTIVE DATE: March 16, 2000. (5) An estimate of the total number of FOR FURTHER INFORMATION CONTACT: Agency Information Collection respondents and the amount of time Jonathan Brown (202–205–2745), Office Activities: Comment Request estimated for an average respondent to of Facilities Management, U.S. respond: 52,113 responses at 1 hour International Trade Commission, 500 E ACTION: Notice of information collection response. Street SW, Washington, DC 20436. under review; Application for certificate (6) An estimate of the total public Hearing-impaired persons can obtain of citizenship. burden (in hours) associated with the information on this matter by contacting collection: 52,113 annual burden hours. The Department of Justice, If you have additional comments, the Commission’s TDD terminal on 202– Immigration and Naturalization Service 205–1810. Persons with mobility suggestions or need a copy of the has submitted the following information proposed information collection impairments who will need special collection request for review and assistance in gaining access to the instrument with instructions, or clearance in accordance with the additional information, please contact Commission should contact the Office Paperwork Reduction Act of 1995. The of the Secretary at 202–205–2000. Richard A. Sloan 202–514–3291, proposed information collection is Director, Policy Directives and General information concerning the published to obtain comments from the Commission may also be obtained by Instructions Branch, Immigration and public and affected agencies. Comments Naturalization Service, U.S. Department accessing its internet server (http:// are encouraged and will be accepted for www.usitc.gov). of Justice, Room 5307, 425 I Street NW, ‘‘sixty days’’ until May 22, 2000. Washington, DC 20536. Additionally, Issued: March 16, 2000. Written comments and suggestion comments and/or suggestions regarding Donna R. Koehnke, from the public and affected agencies the item(s) contained in this notice, Secretary. concerning the proposed collection of especially regarding the estimated [FR Doc. 00–7079 Filed 3–21–00; 8:45 am] information should address one or more public burden and associated response BILLING CODE 7020±02±P of the following four points: time may also be directed to Mr. (1) Evaluate whether the proposed Richard A. Sloan. collection of information is necessary If additional information is required DEPARTMENT OF JUSTICE for the proper performance of the contact Mr. Robert B. Briggs, Clearance functions of the agency, including Officer, United States Department of Foreign Claims Settlement whether the information will have Justice, Information Management and Commission practical utility; Security Staff, Justice Management (2) Evaluate the accuracy of the [F.C.S.C. Meeting Notice No. 1±00] Division, Suite 850, Washington Center, agencies estimate of the burden of the 1001 G Street NW, Washington, DC Sunshine Act Meeting proposed collection of information, 20530. including the validity of the The Foreign Claims Settlement methodology and assumptions used; Dated: March 15, 2000. Commission, pursuant to its regulations (3) Enhance the quality, utility, and Richard A. Sloan, (45 CFR Part 504) and the Government clarity of the information to be Department Clearance Officer, United States in the Sunshine Act (5 U.S.C. 552b), collected; and Department of Justice, Immigration and hereby gives notice in regard to the (4) Minimize the burden of the Naturalization Service. scheduling of meetings and oral collection of information on those who [FR Doc. 00–7080 Filed 3–21–00; 8:45 am] hearings for the transaction of are to respond, including through the BILLING CODE 4410±10±M

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DEPARTMENT OF JUSTICE households. This information collection concerning the proposed collection of allows United States citizen parents to information should address one or more Immigration and Naturalization Service apply for a certificate of citizenship on of the following four points: behalf of their adopted alien children. (1) Evaluate whether the proposed Agency Information Collection (5) An estimate of the total number of collection of information is necessary Activities: Comment Request respondents and the amount of time for the proper performance of the estimated for an average respondent to functions of the agency, including ACTION: Notice of information collection respond: 12,390 responses at 1 hour per whether the information will have under review; Application for certificate response. practical utility; of citizenship in behalf of an adopted (6) An estimate of the total public (2) Evaluate the accuracy of the child. burden (in hours) associated with the agencies estimate of the burden of the The Department of Justice, collection: 12,390 annual burden hours. proposed collection of information, Immigration and Naturalization Service If you have additional comments, including the validity of the has submitted the following information suggestions, or need a copy of the methodology and assumptions used; collection request for review and proposed information collection (3) Enhance the quality, utility, and clearance in accordance with the instrument with instructions, or clarity of the information to be Paperwork Reduction Act of 1995. The additional information, please contact collected; and (4) Minimize the burden of the proposed information collection is Richard A. Sloan 202–514–3291, collection of information on those who published to obtain comments from the Director, Policy Directives and are to respond, including through the public and affected agencies. Comments Instructions Branch, Immigration and use of appropriate automated, are encouraged and will be accepted for Naturalization Service, U.S. Department electronic, mechanical, or other ‘‘sixty days’’ until May 22, 2000. of Justice, Room 5307, 425 I Street NW, technological collection techniques or Written comments and suggestions Washington, DC 20536. Additionally, other forms of information technology, from the public and affected agencies comments and/or suggestions regarding e.g., permitting electronic submission of concerning the proposed collection of the item(s) contained in this notice, responses. information should address one or more especially regarding the estimated public burden and associated response Overview of this information of the following four points: collection: (1) Evaluate whether the proposed time may also be directed to Mr. Richard A. Sloan. (1) Type of information collection: collection of information is necessary Extension of currently approved for the proper performance of the If additional information is required contact Mr. Roberts B. Briggs, Clearance collection. functions of the agency, including (2) Title of the form collection: whether the information will have Officer, United States Department of Justice, Information Management and Affidavit of Support. practical utility; (3) Agency from number, if any, and (2) Evaluate the accuracy of the Security Staff, Justice Management Division, Suite 850, Washington Center, the applicable component of the agency’s estimate of the burden of the Department of Justice sponsoring the proposed collection of information, 1001 G Street NW, Washington DC 20530. collection: Form I–134. Adjudications including the validity of the Division, Immigration and methodology and assumptions used; Dated: March 16, 2000. Naturalization Service. (3) Enhance the quality, utility, and Richard A. Sloan, (4) Affected public who will be asked clarity of the information to be Department Clearance Officer, United States or required to respond, as well as a brief collected; and Department of Justice, Immigration and abstract: Primary: Individuals or (4) Minimize the burden of the Naturalization Service. households. The information collected collection of information on those who [FR Doc. 00–7081 Filed 3–21–00; 8:45 am] is used to determine whether the are to respond, including through the BILLING CODE 4410±10±M applicant for benefit will become a use of appropriate automated, public charge if admitted to the United electronic, mechanical, or other States. technological collection techniques or DEPARTMENT OF JUSTICE (5) An estimate of the total number of other forms of information technology, respondents and the amount of time e.g., permitting electronic submission of Immigration and Naturalization Service estimated for an average respondent to responses. Agency Information Collection respond: 44,000 responses at 20 minutes Overview of this information Activities: Comment Request (.333) per response. collection: (6) An estimate of the total public (1) Type of information collection: ACTION: Notice of information collection burden (in hours) associated with the Extension of currently approved under review; Affidavit of Support. collection: 14,652 annual burden hours. collection. If you have additional comments, (2) Title of the form/collection: The Department of Justice, suggestions, or need a copy of the Application for Certificate of Immigration and Naturalization Service proposed information collection Citizenship in Behalf of an Adopted has submitted the following information instrument with instructions, or Child. collection request for review and additional information, please contact (3) Agency form number, if any, and clearance in accordance with the Richard S. Sloan, 202–514–3291, the applicable component of the Paperwork Reduction Act of 1995. The Director, Policy Directives and Department of Justice sponsoring the proposed information collection is Instructions Branch, Immigration and collection: Form N–643. Adjudications published to obtain comments from the Naturalization Service, U.S. Department Division, Immigration and public and affected agencies. Comments of Justice, Room 5307, 425 I Street NW, Naturalization Service. are encouraged and will be accepted for Washington, DC 20536. Additionally, (4) Affected public who will be asked ‘‘sixty days’’ until May 22, 2000. comments and/or suggestions regarding or required to respond, as well as a brief Written comments and suggestions the item(s) contained in this notice, abstract: Primary: Individuals or from the public and affected agencies especially regarding the estimated

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Overview of this information Officer, United States Department of [FR Doc. 00–7083 Filed 3–21–00; 8:45 am] collection: Justice, Information Management and BILLING CODE 4410±10±M Security Staff, Justice Management (1) Type of Information Collection: Division, Suite 850, Washington Center, Extension of currently approved 1001 G Street NW, Washington, DC collection. 20530. (2) Title of the Form/Collection: DEPARTMENT OF LABOR Dated: March 16, 2000. Application to Preserve Residence for Employment and Training Richard A. Sloan, Naturalization. Administration Department Clearance Officer, United States (3) Agency form number, if any, and Department of Justice, Immigration and the applicable component of the Investigations Regarding Certifications Naturalization Service. Department of Justice sponsoring the of Eligibility To Apply for Worker [FR Doc. 00–7082 Filed 3–21–00; 8:45 am] collection: Form N–470. Office of Adjustment Assistance BILLING CODE 4410±10±M Naturalization Operations, Immigration and Naturalization Service. Petitions have been filed with the Secretary of Labor under Section 221(a) DEPARTMENT OF JUSTICE (4) Affected public who will be asked of the Trade Act of 1974 (‘‘the Act’’) and or required to respond, as well as a brief Immigration and Naturalization Service are identified in the Appendix to this abstract: Primary: Individuals or notice. Upon receipt of these petitions, Agency Information Collection households. The information furnished the Director of the Division of Trade Activities: Comment Request. on this form will be used to determine Adjustment Assistance, Employment whether an alien who intends to be and Training Administration, has ACTION: Notice of information collection absent from the United States for a instituted investigations pursuant to under review; Application to preserve period of one year or more is eligible to Section 221(a) of the Act. residence for naturalization. preserve residence for naturalization The purpose of each of the purposes. The Department of Justice, investigations is to determine whether Immigration and Naturalization Service (5) An estimate of the total number of the workers are eligible to apply for has submitted the following information respondents and the amount of time adjustment assistance under Title II, collection request for review and estimated for an average respondent to Chapter 2, of the Act. The investigations clearance in accordance with the respond: 375 responses at 15 minutes will further relate, as appropriate, to the Paperwork Reduction Act of 1995. The (.25) per response. determination of the date on which total or partial separations began or proposed information collection is (6) An estimate of the total public published to obtain comments from the threatened to begin and the subdivision burden (in hours) associated with the of the firm involved. public and affected agencies. Comments collection: 94 annual burden hours. are encouraged and will be accepted for The petitioners or any other persons ‘‘sixty days’’ until [Insert date of the If you have additional comments, showing a substantial interest in the 60th day from the date that this notice suggestions, or need a copy of the subject matter of the investigations may is published in the Federal Register]. proposed information collection request a public hearing, provided such Written comments and suggestions instrument with instructions, or request is filed in writing with the from the public and affected agencies additional information, please contact Director, Division of Trade Adjustment concerning the proposed collection of Richard A. Sloan 202–514–3291, Assistance, at the address shown below, information should address one or more Director, Policy Directives and not later than April 3, 2000. of the following four points: Instructions Branch, Immigration and Interested persons are invited to (1) Evaluate whether the proposed Naturalization Service, U.S. Department submit written comments regarding the collection of information is necessary of Justice, Room 5307, 425 I Street, NW., subject matter of the investigations to for the proper performance of the Washington, DC 20536. Additionally, the Director, Division of Trade functions of the agency, including comments and/or suggestions regarding Adjustment Assistance, at the address whether the information will have the item(s) contained in this notice, shown below, not later than April 3, practical utility; especially regarding the estimated 2000. (2) Evaluate the accuracy of the public burden and associated response agencies estimate of the burden of the The petitions filed in this case are time may also be directed to Mr. available for inspection at the Office of proposed collection of information, Richard A. Sloan. including the validity of the the Director, Division of Trade methodology and assumptions used; If additional information is required Adjustment Assistance, Employment (3) Enhance the quality, utility, and contact: Mr. Robert B. Briggs, Clearance and Training Administration, U.S. clarity of the information to be Officer, United States Department of Department of Labor, 200 Constitution collected; and Justice, Information Management and Avenue. N.W., Washington, D.C. 20210. (4) Minimize the burden of the Security Staff, Justice Management Signed at Washington, D.C. this 14th day collection of information on those who Division, Suite 850, Washington Center, of February, 2000. are to respond, including through the 1001 G Street, NW., Washington, DC Grant D. Beale, use of appropriate automated, 20530. Program Manager, Division of Trade electronic, mechanical, or other Adjustment Assistance.

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APPENDIX [Petitions instituted on 02/14/2000]

Subject firm Date of TA±W (petitioners) Location petition Product(s)

37,327 ...... Energy Knits (Co.) ...... Denver, PA ...... 02/03/2000 Greige Knitted Fabrics. 37,328 ...... Thaw Corporation (Co.) ...... Wenatchee, WA ...... 01/28/2000 Fleece Outerwear and Thermal Under- wear. 37,329 ...... Crown Yarn (UNITE) ...... So. Attleboro, MA ...... 02/02/2000 Dyed Yarn. 37,330 ...... Cadillac Curtain Corp. (Co.) ...... Dyer, TN ...... 02/02/2000 Swag Sets. 37,331 ...... Vesuvius Premier (USWA) ...... Washington, PA ...... 01/31/2000 Firebrick for Industrial Furnaces. 37,332 ...... Shelby Yard (Co.) ...... Shelby, NC ...... 01/25/2000 Synthetic and Cotton Spun Yarns. 37,333 ...... S. Bent and Brothers (IUE) ...... Gardner, MA ...... 01/26/2000 Wooden Chairs, Tables. 37,334 ...... Calgon Corporation (PACE) ...... Pasadena, TX ...... 02/01/2000 Water Treating Chemicals. 37,335 ...... Calvin Klein (UNITE) ...... New York, NY ...... 02/01/2000 Ladies' Sportswear. 37,336 ...... ISA Cutting Room Service (UNITE) ...... El Paso, TX ...... 02/04/2000 Pants and Slacks. 37,337 ...... G and M Cutting Room (UNITE) ...... El Paso, TX ...... 02/03/2000 PatternsÐJeans and Pants. 37,338 ...... Johnstown Knitting Mill (Co.) ...... Johnstown, NY ...... 02/08/2000 Men, Women and Children's Activewear. 37,339 ...... Cominco Ltd. (Co.) ...... Riddle, OR ...... 01/26/2000 Ferronickel. 37,340 ...... Alltex Laminating Corp. (Co.) ...... Mt. Vernon, NY ...... 01/19/2000 Process Synthetic Knitted Fabrics. 37,341A ...... Komag, Inc (Comp) ...... Santa Clara, CA ...... 01/19/2000 Disks for Computer Disk Drivers. 37,341 ...... Komag, Inc. (Co.) ...... San Jose, CA ...... 01/19/2000 Disks for Computer Disk Drivers. 37,342 ...... Assemble USA (Wkrs) ...... Marion, MO ...... 02/03/2000 Coaster Cards. 37,343 ...... Ro An Jewelry Co., Inc (Wkrs) ...... Johnston, RI ...... 02/02/2000 Costume Jewelry. 37,344 ...... Monoa Wire Corp (Wkrs) ...... Greenwood, MS ...... 01/25/2000 Wire Harnesses. 37,345 ...... Sause Brothers (Wkrs) ...... Coos Bay, OR ...... 01/11/2000 Repair Ocean-Going Hauling Vessels. 37,346 ...... Enaid Sportswear, Inc (Wkrs) ...... New York, NY ...... 01/27/2000 Sportswear and Skirts. 37,347 ...... Devro Tee Pak, Inc (Wkrs) ...... Danville, IL ...... 01/29/2000 Plastic and Cellulose Meat Casings. 37,348 ...... McQuay International (Wkrs) ...... Staunton, VA ...... 01/27/2000 Industrial Air Conditioning Equipment. 37,349 ...... RNV Apparel (Wkrs) ...... Shade Gap, PA ...... 02/01/2000 Garments. 37,350 ...... Scotts Hill Leisurewear (Wkrs) ...... Scotts Hill, TN ...... 01/26/2000 Ladies' Robes and Loungewear. 37,351 ...... B. Braun Medical, Inc (Wkrs) ...... St. Clair, PA ...... 02/03/2000 Design I.V. Sets. 37,352 ...... Cranston Print Works (Co.) ...... Cranston, RI ...... 01/26/2000 Provides Printed Cloth Sampling. 37,353 ...... Danskin, Inc (Wkrs) ...... New York, NY ...... 02/01/2000 Women's Tights, Leotards, Bra Tops. 37,354 ...... ITW Signode Metals (Wkrs) ...... Weirton, WV ...... 02/02/2000 Steel Strapping and Metal Seals. 37,355 ...... Medtronic Perfusion (Wkrs) ...... Minneapolis, MN ...... 01/28/2000 Arterial Filter. 37,356 ...... U.S. Electrical Motors (Wkrs) ...... Philadelphia, MS ...... 01/31/2000 Electrical Motors.

[FR Doc. 00–7121 Filed 3–21–00; 8:45 am] some workers separated from Signed at Washington, D.C. this 14th day BILLING CODE 4510±30±M employment at Tony Lama Boot of March, 2000. Company had their wages reported Grant D. Beale, under a separate unemployment Program Manager, Division of Trade DEPARTMENT OF LABOR insurance (UI) tax account for Justin Adjustment Assistance. [FR Doc. 00–7120 Filed 3–21–00; 8:45 am] Employment and Training Boot Company/Justin Management BILLING CODE 4510±30±M Administration Company. The intent of the Department’s [TA±W±35,472] certification is to include all workers of DEPARTMENT OF LABOR Tony Lama Boot Company, Justin Tony Lama Boot Company who were Boot Company/Justin Management adversely affected by increased imports. Employment and Training Company, El Paso, TX; Amended Accordingly, the Department is Administration Certification Regarding Eligibility To amending the certification to properly Proposed Information Collection Apply for Worker Adjustment reflect this matter. Assistance Request Submitted for Public The amended notice applicable to Comment and Recommendations; In accordance with Section 223 of the TA–W–35,472 is hereby issued as Petition for Trade Adjustment Trade Act of 1974 (19 USC 2273) the follows: Assistance U.S. Department of Labor issued a All workers of Tony Lama Boot Company, Certification of Eligibility to Apply for ACTION: Justin Boot Company/Justin Management Notice. Worker Adjustment Assistance on Company, El Paso, Texas who became totally March 11, 1999 applicable to all SUMMARY: The Department of Labor, as or partially separated from employment on or part of its continuing effort to reduce workers of Tony Lama Boot Company after December 21, 1997 through March 11, paperwork and respondent burden located in El Paso, Texas. The notice 2001 are eligible to apply for adjustment conducts a preclearance consultation was published in the Federal Register assistance under Section 223 of the Trade Act program to provide the general public on April 6, 1999 (64 FR 16753). of 1974. At the request of the State agency, the and Federal agencies with an Department reviewed the certification opportunity to comment on proposed for workers of the subject firm. The and/or continuing collections of workers are engaged in the production information in accordance with the of boots. New information shows that Paperwork Reduction Act of 1995

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(PRA95) (44 U.S.C. 3506(c)(2)(A)). This format which may be used for filing Information for Claimants program helps to ensure that requested such petitions. The duration of benefits payable in data can be provided in the desired II. Current Actions the EB Program, and the terms and format, reporting burden (time and conditions on which they are payable, financial resources) is minimized, This is a request for OMB approval are governed by the Federal-State collection instruments are clearly under [the Paperwork Reduction Act of Extended Unemployment Compensation understood, and the impact of collection 1995 (44 U.S.C. 3506(c)(A)] for an Act of 1970, as amended, and the requirements on respondents can be extension of collection of information operating instructions issued to the properly assessed. Currently, the previously approved and assigned OMB States by the U.S. Department of Labor. Employment and Training Control No. 1205–0192. There is no In the case of a State beginning an EB Administration is soliciting comments change in burden. period, the State employment security concerning the proposed extension of Type of Review: Extension without agency will furnish a written notice of the information collection of the change. potential entitlement to each individual Petition for Trade Adjustment Agency: Employment and Training who has exhausted all rights to regular Assistance, ETA 8560, and its Spanish Administration, Labor. benefits and is potentially eligible for translation, Solicitud De Asistencia Para Title: Petition for Trade Adjustment EB (20 CFR 15.13(c)(1)). Ajuste, ETA 8559. Assistance; Solicitud De Asistencia Para Persons who believe they may be A copy of the proposed information Ajuste. entitled to EB, or who wish to inquire collection request can be obtained by OMB Number: 1205–0192. about their rights under the program, contacting the employee listed below in Frequency: On occasion. should contact the nearest State the contact section of this notice Affected Public: Individuals or employment service office or DATES: Written comments must be households. unemployment compensation claims submitted on or before May 22, 2000. Number of Respondents: Estimated office in their locality. Written comments should evaluate 1,400. whether the proposed collection of Signed at Washington, DC on March 9, Estimated Time Per Respondent: 15 2000. information is necessary for the proper minutes per response. Raymond Bramucci, performance of the functions of the Total Estimated Cost: $1,750. agency, including whether the Assistant Secretary of Labor for Employment Total Burden Hours: 350. and Training. information will have practical utility; Total Burden Cost (capital/startup): [FR Doc. 00–7123 Filed 3–21–00; 8:45 am] evaluate the accuracy of the agency’s None. estimate of the burden of the proposed Total Burden Cost (operating/ BILLING CODE 4510±30±M collection of information including the maintaining): None. validity of the methodology and Comments submitted in response to DEPARTMENT OF LABOR assumptions used; enhance the quality, this notice will be summarized and/or utility, and clarity of the information to included in the request for Office of Employment and Training be collected; and minimize the burden Management and Budget approval of the Administration of the collection of information on those information collection request; they will who are to respond, including through also become a matter of public record. [NAFTA±02634] the use of appropriate automated, electronic, mechanical, or other Dated: March 15, 2000. Condor DC Power Supplies, Inc., The technological automated, electronic, Edward A. Tomchick, Todd Products Group, Brentwood, mechanical, or other technological Director, Division of Trade Adjustment New York; Amended Certification collection techniques or other forms of Assistance. Regarding Eligibility To Apply for information technology, e.g., permitting [FR Doc. 00–7115 Filed 3–21–00; 8:45 am] NAFTA-Transitional Adjustment electronic submission of responses. BILLING CODE 4510±30±M Assistance ADDRESSES: Edward A. Tomchick, In accordance with Section 250(A), Division of Trade Adjustment Subchapter D, Chapter 2, Title II, of the DEPARTMENT OF LABOR Assistance, Employment and Training Trade Act of 1974 (19 U.S.C. 2273), the Administration, Department of Labor, Employment and Training Department of Labor issued a Room C–4318, 200 Constitution Administration Certification for NAFTA Transitional Avenue, NW., Washington, DC 20210, Adjustment Assistance on November 9, 202–219–5555 (this is not a toll-free Notice of a Change in Status of an 1998, applicable to all workers of Todd number). Extended Benefit (EB) Period for Products Corporation located in SUPPLEMENTARY INFORMATION: Alaska Brentwood, New York. The notice was published in the Federal Register on I. Background This notice announces a change in December 4, 1998 (63 FR 67141). Section 221 (a) of Title II, Chapter 2 benefit period eligibility under the EB At the request of the company, the of the Trade Act of 1974, as amended, Program for Alaska. Department reviewed the certification authorizes the Secretary of Labor to SUMMARY: The following change has for workers of the subject firm. The accept petitions for certification of occurred since the publication of the workers are engaged in the production eligibility to apply for adjustment last notice regarding the State’s EB of electronic power supply devices. assistance. The petitions may be filed by status: New information received from the workers or their certified or recognized • February 27, 2000—Alaska company shows that in July, 1999, union or duly authorized representative. triggered ‘‘on’’ EB. Alaska’s 13-week Condor DC Power Supplies, Inc., ETA Form 8560, Petition for Trade insured unemployment rate rose above purchased Todd Products Corporation Adjustment Assistance, and its Spanish the 6.0 percent threshold necessary to and became know as Condor DC Power translation, ETA Form 8559, Solicitud be triggered ‘‘on’’ to EB for the week Supplies, Inc., The Todd Products De Asistencia Para Ajuste, establish a ending February 12, 2000. Group. Information also shows that

VerDate 202000 16:47 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00060 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15359 workers separated from employment at NAFTA–03325R, Dallas Customer time at all of the facilities also be Todd Products Corporation had their Fulfillment Regional Office, Dallas, TX included in the certification. The wages reported under a separate 75252 company also requested that an NAFTA–03325Z, Amarillo Finishing unemployment insurance (UI) tax Facility, Amarillo, TX 79107 additional eleven facilities and work account for Condor DC Power Supplies, Tennessee sites in seven states (Texas, Tennessee, Inc., The Todd Products Group. NAFTA–03325D, Johnson City Plant California, Florida, Kentucky, Accordingly, the Department is including TRI-Cities Maid (Gary, TN), Mississippi, and Nevada) be included as amending the certification to properly Johnson City, TN 37605 a result of additional layoff reflect this matter. NAFTA–03325E, Mountain City Plant announcements. The intent of the Department’s including Diversco (Spartanburg, SC) The intent of the Department’s certification is to include all workers of and Aramark (Mountain City, TN), certification is to include all workers of Mountain City, TN 37683 Todd Products Corporation who were NAFTA–03325M, Powell Plant, Powell, TN Levi Strauss and Company, including adversely affected by the shift of NAFTA–03325S, Knoxville Regional Office full time contractors working at the production to Mexico. including Global Fulfillment Services identified facilities, who were adversely The amended notice applicable to Center and Knoxville Digital Imaging affected by increased imports of denim NAFTA—02634 is hereby issued as Graphics Department, 1700 Cherry and Docker apparel from Mexico. follows: Street, Knoxville, TN 37917 The amended notice applicable to California NAFTA–03325 is hereby issued as ‘‘All workers of Condor DC Power NAFTA–03325N, Valencia Sweing Facility, follows: Supplies, Inc., The Todd Products Group, San Francisco, CA 94103 Brentwood, New York who became totally or NAFTA–03325T, Levi Strauss & Company All workers of the following Levi Strauss partially separated from employment on or Corporate Headquarters, San Francisco, & Company facilities who became totally or after September 15, 1997 through November CA 94111 partially separated from employment on or 9, 2000 are eligible to apply for NAFTA–TAA Georgia after August 8, 1999 through August 11, 2001 under Section 250 of the Trade Act of 1974.’’ NAFTA–033250, Blue Ridge Plant, Blue are eligible to apply for NAFTA–TAA under Section 250 of the Trade Act of 1974: Signed at Washington, DC this 10th day of Ridge, GA 31503 March, 2000. Florida NAFTA–03325 Wichita Falls Plant, Wichita NAFTA–03325U, Weston Customer Falls, Texas 76303 Grant D. Beale, Fulfillment Regional Office, Weston, FL NAFTA–03325A Harlingen Plant, including Program Manager, Division of Trade 33331 Texas Commission for the Blind, Adjustment Assistance. Kentucky Harlingen, Texas 78550 [FR Doc. 00–7116 Filed 3–21–00; 8:45 am] NAFTA–03325V, Florence Customer NAFTA–03325B Cypress Plant, including BILLING CODE 4510±30±M Service Center, Florence, KY 41042 Judy’s Cafeteria, El Paso, Texas 79905 NAFTA–03325W, Hebron Customer NAFTA–03325C McAllen Plant, including Service Center, Hebron, KY 41048 Texas Commission for the Blind, McAllen, Mississippi Texas 78504 DEPARTMENT OF LABOR NAFTA–03325X, Canton Customer Service NAFTA–03325D Johnson City Plant, Center, Canton, MS 39046 including Tri-Cities Maid (Gary, TN), Employment and Training Nevada Johnson City, Tennessee 37605 Administration NAFTA–03325Y, Sky Harbor CSC, NAFTA–03325E Mountain City Plan, Henderson, NV 89012 including Diversco (Spartanburg, SC) and [NAFTA±03325] In accordance with Section 250(a), Aramark Mountain City, Tennessee 37683 Levi Strauss & Company; Amended NAFTA–03325F Warsaw Plant, Warsaw, Subchapter D, Chapter 2, Title II, of the Virginia 22572 Certification Regarding Eligibility To Trade Act of 1974, as amended (19 USC NAFTA–03325G Valdosta Plant, Valdosta, Apply for NAFTA Transitional 2273), the Department of Labor issued a Georgia 31601 Adjustment Assistance Certification of Eligibility to Apply for NAFTA–03325H Kastrin Plant, Kastrin, NAFTA Transitional Adjustment Texas 79907 Texas, Assistance on August 7, 1997, NAFTA–03325I Brownsville Plant, NAFTA–03325A, Harlingen Plant and Brownsville, Texas 78521 Texas Commission for the Blind, applicable to workers of Levi Strauss and Company, located in El Paso, Texas. NAFTA–03325J San Benito Plant, San Harlingen, TX 78550 Benito, Texas 78586 NAFTA–03325B, Cypress Plant and Judy’s The notice was published in the Federal NAFTA–03325K San Antonio Sewing Plant, Cafeteria, El Paso, TX 79905 Register on September 29, 1999 (64 FR San Antonio, Texas 78227 NAFTA–03325C, McAllen Plant and Texas 52543). In addition, the Department NAFTA–03325L San Antonio Finishing Commission for the Blind, McAllen, TX denied eligibility for an additional eight Plant, including San Antonio Credit Union, 78504 Levi Strauss & Company facilities in San Antonio Finishing Plant, San Antonio, NAFTA–03325H, Kastrin Plant, including Texas, Tennessee, and California Texas 78227 El Paso Digital Imaging Graphics of the NAFTA–03325M Powell Plant, Powell, El Paso Regional Office, El Paso, TX because there had not been threats of employment loss at those facilities. The Tennessee 79907 NAFTA–03325N Valencia Sewing Facility, NAFTA–03325I, Brownsville Plant, notice was also published in the Federal San Francisco, California 94103 Brownsville, TX 78521 Register on September 29, 1999 (64 FR NAFTA–03325O Blue Ridge Plant, Blue NAFTA–03325J, San Benito Plant, San 52542). Ridge, Georgia 31503 Benito, TX 78586 The company requested that the seven NAFTA–03325P Richardson Technology NAFTA–03325K, San Antonio Sewing of the eight facilities (NAFTA–03325H Center, Richardson, Texas 75081 Plant, San Antonio, TX 78227 through NAFTA–03325L, and NAFTA– NAFTA–03325Q Westlake Data Center, NAFTA–03325L, San Antonio Finishing 03325N and O) which were previously Westlake, Texas 76262 Plant including San Antonio Credit denied be certified because of reduced NAFTA–03325R Dallas Customer Fulfillment Union, San Antonio Finishing Plant, San work hours at each facility and provided Regional Office, Dallas, Texas 75252 Antonio, TX 78227 NAFTA–03325S Knoxville Regional Office, NAFTA–03325P, Richardson Technology information to indicate that workers had including Global Fulfillment Services Center, Richardson, TX 75081 their work hours reduced by at least 20 Center and Knoxville Digital Imaging NAFTA–03325Q, Westlake Data Center, percent. In addition, the company Graphics Department, 1700 Cherry Street, Westlake, TX 76262 requested that contractors working full- Knoxville, Tennessee 37917

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NAFTA–03325T Levi Strauss & Company All workers of Nocona Boot Company, Certification for NAFTA Transitional Corporate Headquarters, San Francisco, Justin Boot Company/Justin Management Adjustment Assistance on March 11, California 94111 Company, Nocona, Texas who became totally 1999, applicable to all workers of Tony NAFTA–03325U Weston Customer or partially separated from employment on or Lama Boot Company located in El Paso, Fulfillment Regional Office, Weston, after April 25, 1997 through June 26, 2000 are Florida 33331 eligible to apply for NAFTA—TAA under Texas. The notice was published in the NAFTA–03325V Florence Customer Service Section 250 of the Trade Act of 1974. Federal Register on April 27, 1999 (64 Center, Florence, Kentucky 41042 FR 22649). Signed at Washington, D.C. this 14th day NAFTA–03325W Hebron Customer Service At the request of the State agency, the of March, 2000. Center, Hebron, Kentucky 41048 Department reviewed the certification NAFTA–03325X Canton Customer Service Grant D. Beale, for workers of the subject firm. The Center, Canton, Mississippi 39046 Program Manager, Division of Trade workers are engaged in the production NAFTA–03325Y Sky Harbor CSC, Adjustment Assistance. of boots. New information shows that Henderson, Nevada 89012 [FR Doc. 00–7119 Filed 3–21–00; 8:45 am] NAFTA–03325Z Amarillo Finishing Facility, some workers separated from BILLING CODE 4510±30±M Amarillo, Texas 79107. employment at Tony Lama Boot Company had their wages reported Signed in Washington, DC this 1st day of under a separate unemployment February 2000. DEPARTMENT OF LABOR insurance (UI) tax account for Justin Grant D. Beale, Employment and Training Boot Company, Justin Management Program Manager, Division of Trade Administration Company. Adjustment Assistance. Based on these findings, the [FR Doc. 00–7117 Filed 3–21–00; 8:45 am] [NAFTA±3624] Department is amending the BILLING CODE 4510±30±M certification to properly reflect this Ritvik Holdings, Inc., Lakeville, MA; matter. Notice of Termination of Investigation The intent of the Department’s DEPARTMENT OF LABOR Pursuant to Section 221 of the Trade certification is to include all workers of Act of 1974, an investigation was Tony Lama Boot Company who were Employment and Training initiated on December 16, 1999, in adversely affected by imports from Administration response to a worker petition which was Mexico. [NAFTAÐ02447] filed on behalf of workers at Ritvik The amended notice applicable to Holdings, Inc., Lakeville, Massachusetts. NAFTA–02821 is hereby issued as Nocona Boot Company, Justin Boot The Corporation for Business, Work, follows: Company/Justin Management and Learning (CBWL Trade Unit) of All workers of Tony Lama Boot Company, Company, Nocona, TX; Amended Boston, Massachusetts has determined Justin Boot Company, Justin Management Certification Regarding Eligibility To that the subject firm is a Canadian Company, El Paso, Texas who became totally Apply for NAFTA-Transitional corporation, located in Canada and or partially separated from employment on or Adjustment Assistance doing business in Canada, and therefor after December 28, 1997 through March 11, its workers are not eligible for NAFTA 201 are eligible to apply for NAFTA–TAA In accordance with Section 250(A), under Section 250 of the Trade Act of 1974. Subchapter D, Chapter 2, Title II, of the Transitional Adjustment Assistance under the Trade Act of 1974. Signed at Washington, D.C. This 14th day Trade Act of 1974 (19 U.S.C. 2273), the of March, 2000. Department of Labor issued a Consequently further investigation in Grant D. Beale, Certification for NAFTA Transitional this case would serve no purpose, and Adjustment Assistance on June 26, the investigation has been terminated. Program Manager, Division of Trade Adjustment Assistance. 1998, applicable to workers of Nocona Signed in Washington, D.C. this 14th day Boot Company, Nocona, Texas. The of March, 2000. [FR Doc. 00–7118 Filed 3–21–00; 8:45 am] notice was published in the Federal Grant D. Beale, BILLING CODE 4510±30±M Register on July 31, 1998 (63 FR 40936). Program Manager, Division of Trade At the request of the State agency, the Adjustment Assistance. DEPARTMENT OF LABOR Department reviewed the certification [FR Doc. 00–7122 Filed 3–21–00; 8:45 am] for workers of the subject firm. The BILLING CODE 4510±30±M Pension and Welfare Benefits workers are engaged in the production Administration of western boots. Findings show that some workers separated from DEPARTMENT OF LABOR [Application No. D±10720, et al.] employment Nocona Boot Company had their wages reported under a separate Employment and Training Proposed Exemptions: Standard & unemployment insurance (UI) tax Administration Poor's (S&P), Standard and Poor's account for Justin Boot Company/Justin [NAFTA±02821] Investment Advisory Service, LLC Management Company. (SPIAS) The intent of the Department’s Tony Lama Boot Company, Justin certification is to include all workers of Boot Company, Justin Management AGENCY: Pension and Welfare Benefits Nocona Boot Company who were Company, El Paso, TX; Amended Administration, Labor. adversely affected by increased imports Certification Regarding Eligibility To ACTION: Notice of proposed exemptions. from Mexico. Apply for NAFTA-Transitional Accordingly, the Department is Adjustment Assistance SUMMARY: This document contains amending the certification to properly notices of pendency before the reflect this matter. In accordance with Section 250(A), Department of Labor (the Department) of The amended notice applicable to Subchapter D, Chapter 2, title II, of the proposed exemptions from certain of the NAFTA–02447 is hereby issued as Trade Act of 1974 (19 U.S.C. 2273), the prohibited transaction restrictions of the follows: Department of Labor issued a Employee Retirement Income Security

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Act of 1974 (the Act) and/or the Internal requested to the Secretary of Labor. expiration of the contract will pay its Revenue Code of 1986 (the Code). Therefore, these notices of proposed pro-rata share of the fees that it would exemption are issued solely by the otherwise owe for the Service under the Written Comments and Hearing Department. contract and, if applicable, any direct Requests The applications contain costs actually incurred by SPIAS which All interested persons are invited to representations with regard to the would have been recovered from the submit written comments or request for proposed exemptions which are Plan by SPIAS but for the termination a hearing on the pending exemptions, summarized below. Interested persons of the contract, including any direct unless otherwise stated in the Notice of are referred to the applications on file setup expenses not previously Proposed Exemption, within 45 days with the Department for a complete recovered. Thereafter, the termination from the date of publication of this statement of the facts and form shall be provided no less than Federal Register Notice. Comments and representations. annually. requests for a hearing should state: (1) Standard & Poor’s (S&P), Standard and (4) At least 45 days prior to the The name, address, and telephone Poor’s Investment Advisory Services, LLC implementation of any material change number of the person making the (SPIAS), Located in New York, New York to the Service or increase in fees or comment or request; and (2) the nature [Exemption Application No.: D–10720] expenses charged for the Service, of the person’s interest in the exemption notification of the change and an and the manner in which the person Proposed Exemption explanation of the nature and the would be adversely affected by the The Department is considering amount of the change in the Service or exemption. A request for a hearing must granting an exemption under the increase in fees or expenses. also state the issues to be addressed and authority of section 408(a) of the Act (5) A copy of the proposed and final include a general description of the and section 4975(c)(2) of the Code and exemption, if granted, as published in evidence to be presented at the hearing. in accordance with the procedures set the Federal Register. ADDRESSES: All written comments and forth in 29 CFR Part 2570, Subpart B (55 (6) An annual report of Plan activity request for a hearing (at least three FR 32836, 32847, August 10, 1990). If which summarizes the performance of copies) should be sent to the Pension the exemption is granted, the the Service and asset allocation and Welfare Benefits Administration, restrictions of sections 406(a) and 406(b) recommendations and provides a Office of Exemption Determinations, of the Act and the sanctions resulting breakdown of all fees and expenses paid Room N–5649, U.S. Department of from the application of section 4975 of by the Plan or participants for the year. Labor, 200 Constitution Avenue, NW, the Code, by reason of section Such reports shall be provided no more Washington, D.C. 20210. Attention: 4975(c)(1)(A) through (F) of the Code, than 45 days after the period to which Application No.ll, stated in each shall not apply to the provision of asset it relates. Upon the independent Notice of Proposed Exemption. The allocation services (the Service) by fiduciary’s or Plan sponsor’s request, applications for exemption and the SPIAS to plan participants and the such report may be provided more comments received will be available for receipt of fees by SPIAS from Service frequently. public inspection in the Public Providers in connection with the C. SPIAS will provide each Plan Documents Room of the Pension and provision of such asset allocation participant with the following: Welfare Benefits Administration, U.S. services, provided that the following (1) Written notice that the Service is Department of Labor, Room N–5638, conditions are met. available and provided by SPIAS, an 200 Constitution Avenue, NW, entity independent of the Service Washington, DC 20210. I. General Conditions Provider and the Plan sponsor. (2) Prior to using the Service, full Notice to Interested Persons A. The retention of SPIAS to provide the Service will be expressly authorized written disclosures that will include Notice of the proposed exemptions in writing by an independent fiduciary information about SPIAS and a will be provided to all interested of each Plan. description of the Service. persons in the manner agreed upon by B. SPIAS shall provide the (3) Access to SPIAS’s website or the applicant and the Department independent fiduciary of each Plan with paper-based communications which within 15 days of the date of publication the following, in writing: will clearly indicate that the Plan in the Federal Register. Such notice (1) Prior to authorization, a complete participant is receiving the Service from shall include a copy of the notice of description of the Service and SPIAS, and that SPIAS is independent proposed exemption as published in the disclosures of all fees and expenses of the Service Provider. Federal Register and shall inform associated with the Service. (4) A risk tolerance questionnaire interested persons of their right to (2) Any other reasonably available which must be completed prior to comment and to request a hearing information regarding the Service that utilization of the Service. (where appropriate). the independent fiduciary requests. D. Any investment advice given to a SUPPLEMENTARY INFORMATION: The (3) A contract for the provision of the Plan participant by SPIAS under the proposed exemptions were requested in Service which defines the relationship Service will be based solely on the applications filed pursuant to section between SPIAS, the Service Providers responses provided by the Plan 408(a) of the Act and/or section and the Plan sponsor, and the participants through the Service’s 4975(c)(2) of the Code, and in obligations thereunder. Such contract interactive computer program or accordance with procedures set forth in shall be accompanied by a termination through a paper or telephone interview 29 CFR Part 2570, Subpart B (55 FR form with instructions on the use of the and will be based on the application of 32836, 32847, August 10, 1990). form. The termination form must an objective methodology developed by Effective December 31, 1978, section expressly state that a Plan may S&P Financial Information Service (S&P 102 of Reorganization Plan No. 4 of terminate its participation in the Service FIS) and the S&P Investment 1978, 5 U.S.C. App. 1 (1996), transferred without penalty at any time. However, Committee. the authority of the Secretary of the a Plan which terminates its E. Any investment advice given to a Treasury to issue exemptions of the type participation in the Service before the Plan participant will be implemented

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All asset allocations are reviewed such Plan participant or beneficiary. section 408(b)(2) of the Act. and approved by the S&P Investment (2) None of the persons described in G. The only fees which are payable to Policy Committee (IPC) before they are paragraph (1)(b)–(d) of this paragraph SPIAS in connection with the provision made available to the Plan. (P) shall be authorized to examine trade of the Service include, subject to L. No Service Provider will at any secrets of SPIAS, or commercial or negotiation, one or more of the time own any interest, by vote or value financial information which is following: in SPIAS, and neither SPIAS nor any privileged or confidential. (1) An annual flat fee based on a fixed affiliate will own any interest, by vote dollar amount per Plan participant for or value in a Service Provider. II. Definitions the Service. This fee may be paid by the M. The annual revenues derived by Plan, Plan sponsor, Plan participant or SPIAS from any one Service Provider A. The term ‘‘Service’’ means the the Service Provider. shall not constitute more than 5% of the asset allocation service provided by (2) A technology licensing fee payable annual revenues of S&P FIS. SPIAS to Plans which is accessed by the Service Provider in the first year N. S&P will guarantee the payment of through computer software and other that the Service is provided to a Plan. any liabilities of SPIAS that may arise written communications in order to The fee will be a fixed dollar amount by reason of a breach of a fiduciary duty provide personalized recommendations based on the number of Plan described in section 404 of the Act or a to Plan participants regarding the participants and beneficiaries contained violation of the prohibited transaction allocation of their investments among on the Service Provider’s record-keeping provisions in section 406 of the Act and the options offered under their Plan. system. Each time the number of Plan 4975 of the Code. B. The term ‘‘Service Provider’’ means participants and beneficiaries on the O. SPIAS will maintain for a period an entity that has been in the financial Service Provider’s record-keeping of six years, the records necessary to services business for at least three years, system increases by 10%, an additional enable the persons described in and during such period, has not been fixed dollar amount based on the paragraph (P) of this section to found liable or guilty by a court of law, increase in Plan participants and determine whether the conditions of the or has not been a party to a settlement beneficiaries will be assessed and exemption are met, including records of agreement with the IRS or the charged to the Service Provider for the the recommendations made to Plan Department related to any matter new participants and beneficiaries (the participants and beneficiaries and their concerning an employee benefit plan, Revised Technology Fee). investment choices, except that— and which is described in one of the (3) For subsequent years, SPIAS will (1) A prohibited transaction will not following categories: charge the Service Provider an annual be considered to have occurred if, due (1) A bank, savings and loan technology maintenance fee equal to to circumstances beyond the control of association, insurance company or 20% of the technology licensing fee SPIAS, the records are lost or destroyed registered investment adviser which charged to the Service Provider in the prior to the end of the six year period. meets the definition of a ‘‘qualified first year plus 20% of the Revised (2) No party in interest, other than professional asset manager’’ (QPAM) set Technology Fee. SPIAS shall be subject to the civil forth in section V(a) of Prohibited (4) SPIAS will charge the Plan or Plan penalty that may be assessed under Transaction Exemption 84–14 (49 Fed. sponsor an Internet customization fee section 502(i) of the Act, or the taxes Reg. 9494 (Mar. 13, 1984), as corrected where a Plan sponsor contracts directly imposed by section 4975(a) and (b) of at 50 Fed. Reg. 41430 (Oct. 10, 1985) with SPIAS for the provision of the the Code if records are not maintained and in addition, has, as of the last day Service. This flat fee will be based on or not available for examination as of its most recent fiscal year, total client the time spent by SPIAS personnel on required by this paragraph and assets under management and control in its customization of the Service for the paragraph P(1) below. an amount not less than $250 million; particular Plan. P. (1) Except as provided in or (5) For those Plan sponsors electing to subparagraph (2) of this paragraph and (2) A broker dealer registered under receive a Plan analysis report, an annual notwithstanding any provisions of the Securities Exchange Act of 1934, flat fee based on a fixed dollar amount subsections (a)(2) and (b) of Section 504 which has, as of the last day of its most per Plan investment analysis report. of the Act, the records referred to recent fiscal year, $1 million in This fee will be paid by the Plan paragraph (O) of this section are shareholders’ or partners’ equity, and sponsor or Service Provider. unconditionally available at their total client assets under management H. No portion of any fee or other customary location for examination and control in an amount not less than consideration payable by the Plans or during normal business hours by— $250 million. the Plan sponsor to S&P or SPIAS in (a) Any duly authorized employee or connection with the Service will be representative of the Department of C. The term ‘‘independent fiduciary’’ received or shared with a Service Labor, the Internal Revenue Service, or means a Plan fiduciary which is Provider. the Securities and Exchange independent of SPIAS and its affiliates I. Neither the fees charged nor the Commission; and independent of the Service Provider compensation received by SPIAS will be (b) Any fiduciary of a participating and its affiliates. affected by the investment elections or Plan or any duly authorized D. The term ‘‘affiliate’’ includes: the decisions made by the Plan representative of such fiduciary; (1) Any person directly or indirectly participants and beneficiaries regarding (c) Any contributing employer to any through one or more intermediaries, investment of the assets in their participating Plan, any duly authorized controlling, controlled by, or under accounts. representative of such employer or an common control with the person;

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(2) Any officer, director, employee, consulting services; and (5) management contract will be renewable annually and relative, or partner in any such person of investment companies. The services will include: (a) A provision under and that SPIAS operates include: S&P’s which the Plan shall have 45 days (3) Any corporation or partnership of Personal Wealth and S&P’s Bank notice prior to implementation of any which such person is an officer, director Investment Center. SPIAS has also been material change to the Service or any fee partner or employee. retained by the independent distributor or expense increases in connection with E. The term ‘‘control’’ means the of the product known as ‘‘WEBS’’ to the provision of the Service by SPIAS; power to exercise a controlling provide investment and economic and (b) a provision which states that a influence over the management or research describing prevailing Plan may terminate its participation in policies of a person other than an international economic and currency the Service at any time without penalty. individual. related trends and their impact on However, a Plan which terminates the Summary of Facts and Representations investments in several countries. Service before the expiration of the SPIAS’s income is included with S&P contract will be responsible for paying 1. McGraw-Hill Companies (McGraw- FIS for financial reporting purposes. In its pro-rata share of the fees otherwise Hill) is a New York Stock Exchange 1998, S&P FIS contributed owed under the contract as of the date registered company with a market approximately $600 million to McGraw- of termination, and, if applicable, any capitalization of approximately $11 Hill’s total $3.7 billion in revenues. direct costs actually incurred by SPIAS billion. Standard & Poors (S&P), a Most employees of SPIAS are also which would have been recovered from division of the McGraw-Hill Companies employed by S&P FIS business units. To the Plan by SPIAS but for the has provided the public with the extent that SPIAS’s employees termination of the contract, including investment information and guidance derive a portion of their compensation any direct setup expenses not for more than 130 years. Investors rely based on the financial performance of a previously recovered. In addition, on Standard & Poor’s Marketscope, business unit, the compensation is SPIAS shall provide such fiduciary with Stock Reports, Stock Guide, Industry based on the overall performance of S&P a copy of the proposed and the final Surveys and other services for FIS and or the relevant S&P FIS exemption, if granted, as published in independent and accurate information. business unit. the Federal Register. S&P is comprised of S&P Financial 5. The Applicant represents that the 6. SPIAS will provide the Service Information Services (S&P FIS) and Service will be beneficial to Plan either directly to Plan participants S&P’s Ratings Services. In 1998, S&P participants because the Service will through an agreement with the Plan Ratings Services and S&P FIS had, in integrate retirement planning sponsor or through an agreement with the aggregate, revenues of recommendations and fund allocation the Service Providers sponsoring the approximately $1.1 billion. recommendations, including current investment vehicles offered to Plan 2. S&P Ratings Services provides Plan savings, other retirement savings, participants. 2 Where the Service is timely, objective credit analysis and personal retirement income goals, contracted for directly with the Plan information, and has been rating tolerance for risk, time horizon to sponsor, SPIAS anticipates that these conventional-term debt and general retirement, and the fund choices Plan sponsors will be predominately obligation corporate and municipal specifically available in a participant’s Fortune 500 companies, and SPIAS will bonds since 1916. S&P Ratings Services Plan. customize the Service for each Plan. In serves more than 60 countries through The Applicant represents that the many instances, SPIAS will need to a global office network staffed by local Service entails the provision of coordinate with the Plan’s record-keeper analysts from the world’s major capital personalized asset allocation advice to or another service provider in offering markets. Plan participants (see paragraph 7). the Service to a Plan’s participants. 3. S&P FIS provides financial data, Before a Plan’s independent fiduciary information and analysis on various may authorize the Plan’s participation 2 The provision of investment advisory services to domestic and foreign financial markets in the Service, SPIAS must provide the plans would be exempt from the prohibitions of to individual investors, brokerage firms, fiduciary with a complete description of section 406(a) of ERISA if the conditions of section 408(b)(2) are met. Section 2550.408b–2(a) of the investment advisors, money managers the Service, written disclosures of all Department’s regulations provides that section and other investment professionals. S&P fees and expenses associated with the 408(b)(2) of the Act exempts from the prohibitions FIS is also responsible for maintaining Service, and a written contract for the of section 406(a), payment by a Plan to a party in market indices such as the S&P 500 and provision of the Service which defines interest, including a fiduciary for * * * any service (or combination of services) if (1) such * * * provides various other products and the relationship between SPIAS, the service is necessary for the establishment or services to the investment community. Service Provider and the Plan sponsor operation of the Plan; (2) such * * * service is 4. McGraw-Hill established Standard and the obligations thereunder.1 Such furnished under a contract or arrangement which is & Poors Investment Advisory Services, reasonable; and (3) no more than reasonable compensation is paid for such * * * service. The 1 In this regard, the Department notes that the LLC (SPIAS), a wholly-owned regulation also provides that section 408(b)(2) does subsidiary in 1995. SPIAS was created fiduciary responsibility provisions of the Act apply to the decision of a Plan’s independent fiduciary to not contain an exemption from acts described in as part of S&P FIS’s expansion into the authorize the Plan’s participation in the Service. section 406(b) even if such act occurs in connection provision of personalized investment Section 404 of the Act requires, among other things, with a provision of services that is exempt under that a fiduciary of a plan must act prudently, solely section 408(b)(2). Section 2550.408b–2(e)(1) further advice and related investment advisory provides that a fiduciary does not engage in an act activities, and is a registered investment in the interest of the plan’s participants and beneficiaries, and for the exclusive purpose of described in section 406(b)(1) of the Act if the adviser under the Investment Advisers providing benefits to participants and beneficiaries. fiduciary does not use any of the authority, control Act of 1940. SPIAS furnishes a variety Accordingly, the Plan’s independent fiduciary must or responsibility which makes such person a of services which can be broadly act prudently when deciding to participate in the fiduciary to cause the Plan to pay additional fees Service, and in considering the fees associated with for a service furnished by such fiduciary or to pay characterized as: (1) Internet-based the Service. The Department expects the Plan’s a fee for a service furnished by a person in which personal advisory services; (2) advisory independent fiduciary, prior to authorizing the the fiduciary has an interest which may affect the services aimed at enabling market Plan’s participation in the Service, to understand exercise of such fiduciary’s best judgement as a professionals to provide services to fully the operation of the Service, and the fiduciary. In general, whether a violation of section compensation paid thereunder, following 406(b) occurs during the operation of an investment retail clients; (3) asset allocation disclosure by SPIAS of all relevant information advisory program is an inherently factual matter. advisory services; (4) advisory pertaining to the Service. See Advisory Opinion 84–04 (January 4, 1984).

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Such entities will be independent of questionnaire and investment advice is participant’s investor profile SPIAS. All fees for the Service will be housed. In certain situations, this data classification which is based on his paid by the Plan sponsor or the Plan to may be housed on servers owned and responses to the questionnaire. SPIAS. operated by the Service Provider. The 8. The Applicant represents that its In the second situation, SPIAS will Applicant represents that SPIAS will role in performing the Service on behalf provide the Service to Plan participants always retain sole control over the of a Plan, includes gathering pursuant to a contract that the Plan content of the Service and the advice information about the investment sponsor enters into with a Service contained therein. SPIAS will regularly options offered in a particular Plan, and Provider. In these instances, the fees for monitor the contents of the Service and developing a recommended portfolio for the Service will be based on a flat dollar the advice contained therein to ensure each investor type. The Applicant states amount per participant which will be that it remains the product of the that the analysis is based on modern paid to SPIAS by the Service Provider, objective methodology developed by portfolio theory and related work in the Plan, Plan sponsor or Plan S&P FIS and the S&P Investment economics and finance. S&P and SPIAS participants. In addition, SPIAS will Committee (discussed below). It will be use the concept of efficient portfolios in enter into a written agreement with the apparent to the Plan participant that developing asset allocation Plan sponsor defining the relationship SPIAS is the sole-provider of such recommendations. This concept is based of the Plan sponsor, SPIAS and the advice. on the premise that the only way to Service Provider. For those Plan participants using the achieve higher returns is to accept more 7. The Applicant states that, once a Internet, the completed questionnaire is risk and the only way to reduce risk is Plan fiduciary has authorized its Plan’s scored by computer. For those Plan to accept lower potential returns. SPIAS participation in the Service, Plan participants using the paper based or states that in any set of investments, participants will receive notice that the telephone based questionnaires, the there is always a group of efficient Service is available and provided by scoring is done by the Plan participants portfolios, and an investor who holds an SPIAS, an entity which is independent using materials and instructions inefficient portfolio can improve his or of the Service Provider. This notice will provided by SPIAS. Based on the score, her situation by moving to an efficient also state that when using the Service, the Plan participant is categorized into one. a Plan participant is receiving services one of six investment recommendations. SPIAS states that some analysts use separate and apart from those provided Each recommendation contains a market indexes rather than specific by the Service Provider. Prior to description of the investor profile investment options because there is utilizing the Service, Plan participants associated with such recommendation historical data available for most widely will receive full disclosures about which a Plan participant can review to used market indexes. While a long SPIAS and the Service. see if he or she feels that he or she has historic record is always welcome, Plan participants will access the been correctly classified. SPIAS believes that it is usually more Service through the Internet, by written The advice provided to a Plan important to know how a specific materials or by telephone interview. participant through the Service may investment performed over the last 3, 5 Each Plan participant will receive a risk only be implemented if it is expressly or 10 years rather than how the market tolerance questionnaire which must be authorized in writing by the Plan index performed. Accordingly, SPIAS completed prior to utilization of the participant. Plan participants are develops its recommendations using the Service. A Plan participant will answer advised that the investment advice is specific investment options wherever a questionnaire which consists of ten to valid for one year and that they need to possible because Plan participants will fifteen questions with three or four repeat the questionnaire process in be investing in these funds, not in an multiple choice answers per question. future years in order to receive updated index or other measure. These questions enable a Plan recommendations. In this regard, Plan 9. In order to evaluate a specific participant to quantify his or her time participants are informed that if they investment option, SPIAS requires that horizon and risk tolerance. This experience major life changes, they may a minimum of three years of monthly questionnaire has been developed by need to repeat the questionnaire process total return data be available. If this data S&P over the last five years based on more often than once a year. In is not available, SPIAS will work with actual use in 401(k) plans and similar connection with the Plan sponsor’s the Plan sponsor to identify alternative investment programs. For those Plan annual renewal of the Service, Plan data to assist SPIAS in its analysis. participants who elect to receive their participants are strongly encouraged by However, if there is no reasonable advice in paper form, the questionnaire SPIAS to complete a new questionnaire. applicable data, SPIAS will not include will be provided via the human SPIAS has built in an annual reminder the investment option in its resources department of the plan that will be sent to all Plan participants recommendations. SPIAS may, sponsor. If the plan sponsor elects to use concerning the need for them to update however, include discussions and a telephone voice response unit, Plan their Plan investment allocations. Plan analysis of the investment option and its participants will receive their participants are also notified if SPIAS’ characteristics in separate supplemental questionnaire over the phone. The recommendations change during the materials provided to Plan participants paper-based and telephone versions of year, and notified of the possible need and the Plan sponsor as part of the the questionnaire will be scored by the to update their Plan investment Service. Plan participant by categorizing his/her allocations. S&P and SPIAS will use the following answers (as discussed below). The Applicant states that the advice standards to evaluate the investment If a Plan participant elects to receive provided to Plan participants will be options offered by the Plans which his/her advice through the Internet, the based on the application of an objective might use the Service: Plan participant will first access a methodology, developed by S&P FIS (A) Evaluation at the Plan Level: website provided by the Service and the S&P Investment Committee, in (1) Sufficient Number of Funds: If a Provider or the Plan sponsor. There will accordance with generally accepted Plan has more than five investment be an electronic link from the Plan investment theories. SPIAS will apply options that meet the requirements for sponsor’s or Service Provider’s website this methodology to the investment investment options described below, the to SPIAS’s website where the options offered by a plan and to the Plan satisfies this requirement. If there

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If a Plan SPIAS. If the investment option is an As part of its annual review, SPIAS will offers employer stock as an investment ‘‘index fund,’’ SPIAS may accept less initiate discussions with the Plan option, S&P and SPIAS will not performance data provided that sponsor about replacing or adding an consider this option in applying this sufficient information on fees is investment option if the circumstances test, nor in applying the other Plan level available to use the return data on the warrant. If a Plan sponsor chooses not tests described in 2 and 3 below. index to develop pro forma data on the to drop an investment option or add (2) Diversity of Funds: SPIAS’s fund. If the index is less than three years options, SPIAS will not include the minimum building block for asset class old, the index data cannot be used. poorly performing investment option in coverage will be cash/bonds/stocks. (2) A prospectus or written its asset allocation advice or may This means that the minimal mix investment policy statement must be decline to continue providing the should include a money market fund, an available to S&P and SPIAS. Service to the Plan. investment grade bond fund and a (3) An investment fund’s total net 10. The Applicant represents that diversified equity fund. A stable value assets must be greater than $25 million S&P’s experience and expertise will be fund or a GIC fund may be substituted for all share classes of the fund an integral part of the Service, and S&P for one of the fixed income funds. If combined. If the investment option is a will stand behind the investment advice these are present, S&P will permit a private fund offered by a money provided by SPIAS through the Service, range of allocations where the lowest management firm, the firm must have at and will guarantee the payment of any volatility allocation is equivalent to least $25 million in assets under liability of SPIAS that may arise by investing 90% of the funds in the management. Further, the firm must be reason of a breach by SPIAS of a money market fund and where the at least three years old. fiduciary duty described in section 404 highest volatility allocation is (4) If a Plan includes synthetic funds, of the Act or a violation of the equivalent to investing 90% of the funds such as a so-called ‘‘funds of funds,’’ prohibited transaction provisions of in equities. If this range cannot be that do not have the requisite section 406 of the Act or section 4975 achieved, S&P and SPIAS will advise performance history, S&P and SPIAS of the Code. The content of the advice the Plan sponsor that adjustments would apply its standard criteria as contained in the Service is produced by should be made to widen the range of described above with respect to each S&P FIS’s equity analytical department, available allocations. fund component. Each fund component and as described below, reviewed by the (3) Limits on Timing and Investment would have to satisfy the criteria in S&P Investment Policy Committee (IPC), Transfers: The only limits on a Plan order for S&P and SPIAS to provide (see representation number 11). The participant’s ability to transfer funds advice with respect to such synthetic equity analytical department and the among investment options should be fund. IPC operate independently of SPIAS and those necessary to protect all Plan (5) If the Plan includes employer produce investment recommendations participants from excessive Plan stock, the stock may be included in the independent of any business expenses. In particular, Plan recommended allocations, subject to the relationships between S&P and its participants must be able to move funds policy on investing in employer stock clients. 11. All asset allocation from one investment option to another approved by the IPC. recommendations are reviewed by the at least four times a year on no more All data is entered into a computer IPC. The IPC is a senior committee than ten business days notice. If this is program developed by SPIAS that responsible for oversight on all not possible, S&P and SPIAS will estimates the efficient frontier and investment recommendations provided decline to provide the Service to the calculates various statistics that describe Plan. Second, there should be no through all of S&P’s products and alternative asset allocations. Based on restrictions on transferring funds from services. Membership on the IPC the results of this computer-based an investment option in one asset class includes the Senior Vice President for analysis, SPIAS will develop a series of to an investment option in another asset the S&P Investment Advisory Services at least six recommendations covering a class. If this is not permitted, S&P and unit (who is also the President of range of risks.3 In developing these SPIAS will advise the Plan sponsor that SPIAS), the Director of Equity Research, allocations, the general guidelines that these rules should be reviewed, and will the Chief Economist, the Senior Sector SPIAS uses include the following: decline to provide the Service under Strategist, the Chief Technical Analyst, Higher risk funds, such as equity sector such circumstances. the Editor of S&P’s The Outlook and (B) Evaluation At the Fund Level: S&P funds, international funds or small cap senior analysts from the Portfolio and SPIAS will review each fund in stock funds are usually limited to the Services and Quantitative Services terms of the investment’s return history, two or three riskiest portfolios. departments of S&P. The IPC meets prospectus and size as described below. Employer stock may only be included in weekly to discuss current financial (1) SPIAS will require three years of the riskiest or two riskiest portfolios, market conditions and the economy. monthly total return history. If the and may not have an allocation greater Asset allocation plans are reviewed at investment option is a private fund with than 20% in any portfolio. SPIAS will the regular weekly meeting. Only after quarterly data, then five years of history not include employer stock if S&P’s the analysis is completed and the will be required. All fund performances separately published recommendation recommendations have been reviewed will be calculated according to industry by the IPC, or a subcommittee thereof, 3 Each Plan participant who completes the risk- standard procedures prescribed by the tolerance questionnaire will be categorized, based will the recommendations be National Association of Securities on his/her score, into one of these six considered as final and delivered to the Dealers and the Securities and Exchange recommendations as discussed in paragraph 7. Plan.

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Once the IPC completes its analysis concerning an employee benefit plan, Service and all fees and expenses and review, the recommendations are brought by the IRS or the Department, associated with the Service, a written delivered to the Plan, and the Plan- or a party to a settlement agreement contract for the provision of the Service, specific asset allocation analysis is with the IRS or the Department on any a copy of the proposed and final considered valid for one year. After a matter concerning an employee benefit exemption, if granted, and a summary of year, SPIAS will review and re-do the plan. annual Plan activity and expense analysis and provide the Plan sponsor 13. The fees which are payable to reports. with revised recommendations. If the SPIAS in connection with providing the (c) SPIAS will furnish the Plan Plan sponsor does not continue its Service, subject to negotiation, are participants with the following: notice relationship with SPIAS, the limited to one or more of the following that the Service is provided by SPIAS, recommendations will be withdrawn fees. A technology licensing fee will be an entity that is independent from the and will be unavailable to Plan charged to the Service Provider. This fee Service Provider and the Plan sponsor; participants. In those instances where is a one-time fee charged in the first year and full disclosure about the Service Plan sponsors want the analysis the Service is provided to a Plan based and SPIAS; and a risk tolerance reviewed more frequently than once per on the number of Plan participants questionnaire. year, SPIAS and the Plan sponsor will contained on a Service Provider’s (d) Any investment advice given to negotiate a review schedule. record-keeping system. Each time the Plan participants will be based on the 12. The Applicant represents that number of Plan participants and Plan participants’ responses to the potential Service Providers will include beneficiaries on the Service Provider’s questionnaire and any investment banks and trust companies, mutual fund record-keeping system increases by advice will only be implemented at the companies, brokerage firms and 10%, an additional amount based on a express direction of the Plan insurance companies. They will be flat dollar per Plan participant will be participant. required to meet minimum standards assessed and charged to the Service (e) The total fees paid to SPIAS and prior to participating in the provision of Provider for the new participants (the a Service Provider by each Plan the Service. To qualify as a Service Revised Technology Fee). For participant participating in the Service Provider, the entity must either be: (a) subsequent years, SPIAS will charge a does not exceed reasonable A commercial bank or trust company, Service Provider a technology compensation within the meaning of savings and loan association, insurance maintenance fee equaling 20% of the section 408(b)(2) of the Act. company, or registered investment first year’s technology licensing fee plus (f) No portion of any fee or other adviser which meets the definition of a 20% of the Revised Technology Fee. consideration paid to SPIAS or S&P in ‘‘qualified professional asset manager’’ Where a Plan sponsor contracts connection with the Service will be (QPAM) as set forth in Part V(a) of directly with SPIAS to customize the shared or received by a Service Prohibited Transaction Exemption 84– Service to its particular Plan, SPIAS will Provider. 14 and has, as of the last day of its most charge an Internet customization fee to (g) Neither the fees charged nor the recent fiscal year, total client assets the Plan or the Service Provider. This compensation received by SPIAS will be under management and control in an flat fee is based on the time spent by affected by the investment elections of amount of not less than $250 million; or SPIAS personnel on its customization of Plan participants. (b) a broker-dealer regulated under the the Service to a particular Plan. In (h) Participation in the Service will Securities Exchange Act of 1934 which addition, SPIAS will charge an annual not cause the Plan to pay any additional had, as of the last day of its most recent flat fee based on a fixed dollar amount fees or commissions with respect to fiscal year, $1 million in shareholders’ per Plan participant which may be paid acquisition or disposition of or partners’ equity, and total client by the Plan, Plan sponsor, the Plan investments offered under the Plan. assets under management and control in participants or the Service Provider. (i) All asset allocations are reviewed Finally, SPIAS will also offer a Plan an amount of not less than $250 million. and approved by the IPC before they are investment analysis report to Plan In addition, the Applicant will delivered to the Plan. sponsors. This report is separate from evaluate each candidate and consider: (j) No Service Provider will own any the investment analysis advice provided (1) The availability of multiple interest in SPIAS, and neither SPIAS to Plan participants and is optional. investment options across a number of nor any affiliate will own any interest in SPIAS will analyze the Plan and its asset classes; (2) whether there are a Service Provider. investment options comparing the rates (k) The annual revenues derived by adequate service capabilities and service of return earned by the Plan’s SPIAS from any one Service Provider performance standards; with an ongoing investment options relative to other shall not be more than 5% of the annual adherence to those standards; (3) available funds. For those Plan sponsors revenues of S&P FIS. whether providing a bundled product 4 who elect to receive a Plan investment (l) S&P will guarantee the payment of for defined contribution Plans is not the analysis by SPIAS, SPIAS will charge a any liability of SPIAS that may arise by only financial service business in which Plan investment analysis fee based on a reason of a breach of a fiduciary duty the entity is involved; and (4) whether flat dollar amount per year. This fee described in section 404 of the Act or a the entity, in SPIAS’s view, has a high may be paid by the Plan, Plan sponsor violation of the prohibited transaction level of professionalism and or the Service Provider. provisions in section 406 of the Act or accountability. 14. In summary, it is represented that section 4975 of the Code. Further, the entity must have been in the proposed transaction will satisfy the the financial services business for three Notice to Interested Persons statutory criteria for an exemption years, and during such period, must not under section 408(a) of the Act because: The Applicant represents that because have been found liable or guilty by a (a) Participation in the Service will be potentially interested Plan participants court of law in any litigation, expressly authorized in writing by an and beneficiaries cannot be identified at independent fiduciary. this time, the only practical means of 4 Bundled products provide employers with record-keeping, legal, administrative, trust, (b) SPIAS will provide the notifying such Plan participants and educational, investment, etc., service with respect independent fiduciary of each Plan beneficiaries of this proposed to establishing and maintaining a plan. with, written disclosures describing the exemption is by publication in the

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Federal Register. Therefore, comments approximately $45,000 of costs relating to the 6. Mr. Adolph A. Ramirez (Mr. Ramirez), and requests for a hearing must be construction of the Classroom Building. The an independent real estate appraiser in San received by the Department not later Union has maintained ownership of the Antonio, Texas, has appraised the Adjacent than April 21, 2000. Properties and has paid all property taxes Lot and the Shop Building as having a fair associated therewith. The Plan has been market value of $63,000, as of October 20, FOR FURTHER INFORMATION CONTACT: responsible for maintaining the Classroom 1998. Mr. Ramirez’s appraisal relied Allison Padams Lavigne, U.S. Building, including the landscaping, primarily on the market approach to value Department of Labor, (202) 219–8971. plumbing and security. the Adjacent Lot and the Shop Building, with (This is not a toll free number.) 3. The Properties are part of a larger parcel an analysis of recent sales of similar (the Property), which has been owned by the properties. Texas Iron Workers and Employers Union since 1966. In addition to the Mr. Humphrey represents that Courtland Apprenticeship Training and Journeyman Classroom and the Shop Buildings, the has reviewed all of the terms and conditions Upgrading Fund (the Plan), Located in San Property contains the Union headquarters of the proposed purchase of the Shop Antonio, Texas building at the front of the Property and five Building and the Adjacent Lot by the Plan, [Application No. D–10777] empty lots at the rear. has considered the history of the 4. The Union has decided to relocate its arrangements made between the Union and Proposed Exemption headquarters to a larger building with more the Plan, and the appraisal of the Properties The Department is considering granting an office space and sell the subject Properties. completed by Mr. Ramirez. Mr. Humphrey exemption under the authority of section However, the Plan’s Trustees do not wish to states that Mr. Ramirez’s appraisal has 408(a) of the Act and in accordance with the relocate the San Antonio training operations considered all of the factors necessary to procedures set forth in 29 CFR Part 2570, provided for under the terms of the Plan. accurately determine the fair market value of Subpart B (55 FR 32836, 32847, August 10, Therefore, the Plan would like to purchase the Shop Building and the Adjacent Lot. Mr. 1990). If the exemption is granted, the the Buildings for training purposes and the Humphrey has determined, as of May 7, restrictions of sections 406(a), 406(b)(1) and Adjacent Lot for additional parking. This 1999, that the purchase price of $63,000 for (b)(2) of the Act shall not apply to the transaction will allow the Plan to continue its the Adjacent Lot and the Shop Building is purchase of a classroom/office building (the apprenticeship and training programs at their reasonable. Furthermore, Courtland believes Classroom Building) and a shop building (the current location. The applicants have that the Classroom Building’s value should Shop Building; together, the Buildings) and requested an exemption to permit only the not be included in the sales price for an adjacent lot (the Adjacent Lot) by the Plan sale of the Adjacent Lot and the Shop determining the appropriate consideration to from Local Union No. 66 of the International Building by the Union to the Plan.5 In this be paid by the Plan since the understanding Association of Bridge, Structural, Ornamental regard, the transaction will also formally of the parties was that the Classroom and Reinforcing Iron Workers (the Union), for recognize that the Plan is and has been the Building was already effectively owned by $63,000, provided that: (a) The purchase is a formal owner of the Classroom Building the Plan (see Representation 2, above). one-time transaction for cash, and no since it was constructed in 1973. The 7. The Plan has retained Mr. Thomas W. commissions are paid by the Plan with applicants represent that the Plan is the Hatfield (Mr. Hatfield), a Certified Public respect to the transaction; (b) the Plan pays equitable owner of the Classroom Building Accountant (CPA) in North Richland Hills, a price for the Buildings and the Adjacent Lot because it incurred the costs of constructing Texas, to act as an independent fiduciary (collectively, the Properties) that is no more and maintaining the Classroom Building as with respect to the proposed transaction. Mr. than the fair market value of the Properties described in Representation 2, above. Hatfield has served as an auditor and adviser at the time of the transaction, as determined 5. The Plan retained Courtland Partners, to the Plan since its inception. Mr. Hatfield by a qualified, independent appraiser; (c) the Ltd. (Courtland) of Cleveland, Ohio to review represents that he does not perform any Plan’s independent fiduciary has determined the subject transaction. With respect to accounting or other work for the Union and that the transaction is appropriate for the Courtland’s qualifications to review the is not related to, or affiliated with, any Plan and in the best interests of the Plan and subject transaction, Courtland represents that person who is a party in interest with respect its participants and beneficiaries; and (d) the it is a registered investment adviser under the to the Plan. Mr. Hatfield states that he has Plan’s independent fiduciary monitors the Investment Advisers Act of 1940 and been a CPA since 1978 and has concentrated purchase of the Properties by the Plan and currently manages over $100 million of real on audits of not-for-profit organizations takes whatever action is necessary to estate investments on behalf of its pension during his career. Mr. Hatfield states that he safeguard the interests of the Plan and its fund clients. Additionally, Courtland has will obtain, if necessary, expert advice from participants and beneficiaries. retainer relationships with pension fund an experienced ERISA counsel as to what is clients with real estate investments required to properly execute the duties of an Summary of Facts and Representations exceeding well over $1 billion. Mr. Michael independent fiduciary for the Plan. Mr. 1. The Plan is a multi-employer J. Humphrey (Mr. Humphrey) is the principal Hatfield acknowledges and accepts his apprenticeship plan with approximately 300 officer at Courtland responsible for the duties, responsibilities and liabilities as a participants and beneficiaries. It is a state- review of the subject transaction. Mr. fiduciary under the Act. wide training program for training apprentice Humphrey represents that he has personally After consideration of the proposed iron workers and upgrading the skills of evaluated well over $400 million of transaction, Mr. Hatfield has determined that experienced iron workers. The Plan has three acquisitions and dispositions as an adviser/ the proposed transaction would be Union trustees and three management fiduciary on behalf of pension fund clients. appropriate for the Plan and in the best trustees. As of March 31, 1999, the Plan had Mr. Humphrey further represents that interests of the Plan’s participants and total assets with an estimated fair market Courtland had no prior relationship or beneficiaries. As the Plan’s independent value of $1,197,307. arrangement with either the Union or the fiduciary, Mr. Hatfield will monitor the 2. The Properties consist of a land parcel Plan before being retained to perform its parties’ compliance with the terms and of approximately 21,750 square feet, located review function for the Plan with respect to conditions of the proposed transaction. Mr. at 4318 Clark Avenue, San Antonio, Texas, the subject transaction. Hatfield represents that he will take whatever containing the Buildings—the Classroom action is necessary to safeguard the interests Building and the Shop Building. The Shop 5 The applicants previously sought relief for the of the Plan and its participants and Building is a one-story, steel-frame structure transaction which is the subject of this proposed beneficiaries. In this regard, Mr. Hatfield will on a concrete slab containing 2,420 square exemption, but that request was denied by the ensure that the sales price paid by the Plan feet. The Shop Building was built in 1971. Department because, among other reasons, the Plan for the Shop Building and the Adjacent Lot The Classroom Building is also a one-story, had not been represented by an independent will in no way reflect any additional steel-frame structure on a concrete slab fiduciary at the time the sale transaction took place. consideration for the Classroom Building. In The applicants represent that they have paid the containing 4,004 square feet. It contains four civil sanction for such transaction under section addition, Mr. Hatfield will ensure that the classrooms, two offices, a storage room, a 502(i) of the Act as agreed upon with the current appraisal of the Shop Building and reception area and bathrooms, and was Department, reversed the transaction, and have now the Adjacent Lot is updated at the time of the completed in 1972–1973. The Plan incurred re-applied for the relief proposed herein. transaction and that the Plan pays no more

VerDate 202000 16:47 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00069 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15368 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices than the fair market value of such Properties unimproved property (the Property) by 4. The Property was appraised on at that time. the IRA to Taylor M. Cole, the IRA March 25, 1999 (the Appraisal). The 8. Mr. Hatfield represents that the Plan’s participant and a disqualified person Appraisal was prepared by James H. acquisition of the Shop Building and the with respect to the IRA; 6 provided that Adjacent Lot for $63,000 in cash will not Woods, RM (Mr. Woods), who is an adversely affect the Plan’s ability to meet all the following conditions are met: independent Virginia state licensed real of its current expenses after the proposed (a) the sale is a one-time cash estate appraiser. Mr. Woods is with Blue transaction. Thus, Mr. Hatfield states that the transaction; Ridge Appraisal Company L.L.C.., transaction will not adversely affect the (b) the IRA receives the current fair which has offices in Staunton, Virginia Plan’s liquidity needs. market value for Property, as established and Winchester, Virginia. Mr. Woods Mr. Hatfield states further that the at the time of the sale by an relied primarily on the market Properties are suitable facilities for the Plan independent qualified appraiser; and (c) approach, with an analysis of recent to continue carrying out its apprenticeship the IRA pays no commissions or other sales of similar properties in the and training programs. Accordingly, Mr. expenses associated with the sale. Hatfield concludes that the purchase of the geographic area. Mr. Woods determined Properties by the Plan would be a prudent Summary of Facts and Representations that the Property had a fair market value transaction, and in the best interest of the of approximately $212,350, as of March 1. The IRA is an individual retirement Plan, since the Plan needs to continue to use 25, 1999. account, as described in section 408(a) this site as a training facility. Mr. Woods updated the Appraisal on 9. In summary, the applicants represent of the Code, which was established by that the proposed transaction satisfies the Taylor M. Cole (Mr. Cole) on June 27, February 22, 2000 (the Update). In the criteria of section 408(a) of the Act because: 1998. As of January, 2000, the IRA had Update, Mr. Woods considered more (a) The sale is a one-time transaction for cash, approximately $261,165 in total assets. recent sales of similar properties located and no commissions will be paid by the Plan The Tredegar Trust Company, located in near or adjacent to the Property as well with respect to the sale; (b) the fair market Richmond, Virginia, is the custodian of as other circumstances relating to the value of the Properties being acquired by the proposed sale of the Property to Mr. Plan represent approximately 5% of the the IRA. 2. On July 27, 1998, the IRA Cole. Specifically, because the Property Plan’s total assets; (c) the fair market value is adjacent to other property owned by of the Adjacent Lot and the Shop Building purchased the Property from Richard have been determined by Mr. Ramirez, a and Ruth Mansfield, who were Mr. Cole, Mr. Woods considered qualified, independent appraiser, and such unrelated third parties, for $200,000 in whether the adjacency factor merits a appraisal will be updated at the time of the cash. The Property represents over 80% premium above fair market value in a transaction to ensure that the Plan pays no of the IRA’s total assets. The Property is sale of the Property to Mr. Cole. Mr. more than the fair market value for the adjacent to Mr. Cole’s personal Woods states that the Property has no Properties; (d) Courtland, an independent residence. It is represented that Mr. Cole road frontage, no access easement or expert, has reviewed the terms of the right of way, and can be accessed only proposed transaction and the most recent made the decision to purchase the 7 by crossing over other property. Based appraisal of the Properties, and has Property as a investment for the IRA. determined that such terms and appraisal are 3. The Property is an approximately on the Property’s location, size and reasonable; (e) Mr. Hatfield, the Plan’s 176 acre parcel of unimproved land, other factors, Mr. Woods concludes that independent fiduciary for purposes of the located at 1352 Marble Valley Road, combining the Property with property proposed transaction, has reviewed the terms Deerfield, Virginia. The applicant already owned by Mr. Cole will have no and conditions of the proposed transaction represents that since the acquisition of effect on the Property’s fair market and has determined that the transaction the Property by the IRA, the Property value. Therefore, Mr. Woods states that would be appropriate for the Plan and in the has not been leased to or used by the fair market value of the Property best interests of the Plan and its participants remains at approximately $212,350, as and beneficiaries; and (f) Mr. Hatfield will anyone, including any disqualified monitor the transaction, as the Plan’s persons, as defined under section of February 22, 2000. independent fiduciary, and will take 4975(e)(2) of the Code. In addition, the 5. The applicant proposes that Mr. whatever action is necessary to protect the Property has not generated any income Cole purchase the Property from the IRA interests of the Plan and its participants and for the IRA since its acquisition.8 in a one-time cash transaction. The beneficiaries. applicant represents that the proposed FOR FURTHER INFORMATION CONTACT: Gary 6 Pursuant to CFR 2510.3–2(d), there is no transaction would be in the best interest H. Lefkowitz of the Department, jurisdiction with respect to the IRA under Title I of and protective of the IRA because the the Act. However, there is jurisdiction under Title telephone (202) 219–8881. (This is not II of the Act pursuant to section 4975 of the Code. IRA will be able to dispose of the a toll-free number.) 7 The Department notes that section 4975(c)(1) (D) Property at its fair market value and will and (E) of the Code prohibits the use by or for the not pay any commissions or expenses Taylor M. Cole IRA Rollover (the IRA) benefit of a disqualified person of the assets of a associated with the sale. In this regard, Located in Deerfield, VA plan and prohibits a fiduciary from dealing with the assets of a plan in his own interest or for his own Mr. Cole will pay the IRA an amount in [Application No. D–10859] account. Accordingly, to the extent there were cash equal to the current fair market violations of section 4975(c)(1) (D) and (E) of the value at the time of the transaction, Proposed Exemption Code with respect to the decision to purchase the based on a further update of the The Department is considering Property for the IRA, the Department notes that this proposed exemption is providing no relief for such Appraisal. The sale of the Property will granting an exemption under the transaction. increase the liquidity of the IRA’s authority of section 4975(c)(2) of the 8 The Department notes that the Internal Revenue portfolio, will enable the trustees to Code and in accordance with the Service has taken the position that a lack of diversify the assets of the IRA, and will procedures set forth in 29 C.F.R. Part diversification of investments in a qualified plan enable the IRA to sell an illiquid non- may raise questions in regard to the exclusive 2570, Subpart B (55 FR 32836, 32847, benefit rule under section 401(a) of the Code. See, income producing asset. August 10, 1990.) If the exemption is e.g., Rev. Rul. 73–532, 1973–2 C.B. 128. The 6. In summary, the applicant granted, the sanctions resulting from the Department further notes that section 408(a) of the represents that the proposed transaction application of section 4975 of the Code, Code, which describes tax qualifications provisions for IRAs, mandates that an IRA trust be created for by reason of section 4975(c)(1)(A) the exclusive benefit of an individual and his or her regarding whether any violations of the Code have through (E) of the Code, shall not apply beneficiaries. However, the Department is taken place with respect to the acquisition and to the proposed sale of certain expressing no opinion in this proposed exemption holding of the Property by the IRA.

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00070 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15369 satisfies the statutory criteria of section value as of the date of the transaction as corrected. Accordingly, Form 5330 4975(c)(2) of the Code because: determined by a qualified, independent excise tax returns were filed by the (a) the sale will be a one-time cash appraiser; Trustees and the excise tax was remitted transaction; (c) The Sale will be a one-time to the IRS. (b) the IRA will receive the current transaction for cash; and Furthermore, the Department fair market value for the Property, as (d) The Plan will pay no fees or conducted its own investigation of the established at the time of the sale by an commissions in connection with the prohibited transactions. In this regard, independent qualified appraiser; Sale. on November 24, 1992, Foodcraft (c) the IRA will pay no commissions Summary of Facts and Representations reimbursed the Plan $45,000 for five or other expenses associated with the years of adjusted rent and $4,500 in sale; and 1. Foodcraft, Inc. (Foodcraft), a interest. By letter dated April 19, 1993, (d) the sale will provide the IRA with California corporation, is the sponsor of the Department concluded that the more liquidity, will enable the IRA to the Plan which is a defined benefit plan prohibited transactions have been diversify its assets, and will allow the located in Los Angeles, California. The corrected and the funds restored to the IRA to reinvest the proceeds of the sale Plan has forty seven (47) participants, Plan. A subsequent audit by the IRS was in other investments that potentially and approximately $3,582,286 in total conducted in 1997. In that audit, the IRS could yield greater returns. assets as of January 1, 1998. The trustees concluded that the Trustees complied of the Plan are Ernest Lieblich and Caryl Notice to Interested Persons with the exemption.11 Lieblich (collectively, the Trustees). 6. The Property was appraised on Because Mr. Cole is the sole 2. The Property, located at 1625 April 5, 1999 by Ronald L. Macksoud participant of the IRA, it has been Riverside Drive, consists of lots 184 & (Mr. Macksoud) for Babcock Abelmann determined that there is no need to 206 and those portions of lots 185, 186, & Associates, an appraisal company distribute the notice of proposed 204 & 205 of tract 5963 in Los Angeles, independent of the Plan and the exemption to interested persons. California. Trustees. Mr. Macksoud, a California Comments and requests for a hearing are 3. The Property was acquired by the certified real estate appraiser, used the due thirty (30) days from the date of Plan from the Trustees for $165,000 on direct sales comparison approach to publication of this notice in the Federal February 29, 1984. On November 3, evaluate the fair market value of the Register. 1982, an appraisal of the Property was Property. Based on this approach, Mr. FOR FURTHER INFORMATION CONTACT: performed by an independent appraiser, Macksoud represents that the fair Gail A. Anderson, which determined Ekaterina A. Uzlyan of the Department market value of the Property, as of April that the fair market value of the at (202) 219–8883. (This is not a toll-free 5, 1999, was $315,000. number.) Property, exclusive of improvements, was $303,220. The acquisition of the 7. The Trustees propose to purchase Foodcraft, Inc. Defined Benefit Plan Property was executed pursuant to an the Property for a cash price of (the Plan), Located in Los Angeles, exemption granted by the Department, $315,000. It is represented that the Sale California Prohibited Transaction Exemption (PTE) is administratively feasible in that it will be a one-time transaction for cash [Exemption Application No. D–10864] 83–159 (48 FR 44948, September 30, 1983). in which the Plan will pay no fees or Proposed Exemption 4. The Property has generated rental commissions. It is also represented that The Department is considering income (the Rental Income) for the Plan the Sale is in the best interest of the Plan granting an exemption under the as a result of leasing said Property to the since it allows the Plan to disgorge an authority of section 408(a) of the Act Trustees, who in turn, subleased it to illiquid asset to be replaced by and section 4975(c)(2) of the Code and Foodcraft from November 8, 1983 until conventional investments, e.g. money in accordance with the procedures set November 8, 2013.9 In this regard, the instruments and securities. This would forth in 29 CFR Part 2570, Subpart B (55 Plan has received Rental Income improve the Plan’s liquidity and ability FR 32826, 32847, August 10, 1990). If totaling $496,521. The applicants to meet its obligation for payment of the exemption is granted, the represent that the Plan has not incurred benefits. In addition, the Plan will no restrictions of sections 406(a) and any expenses as a result of the Plan’s longer be involved in the enforcement of 406(b)(1) and (b)(2) of the Act and the ownership of the Property. its leasehold interest under the lease, sanctions resulting from the application 5. The applicants represent that the which sets forth the rights of the parties of section 4975 of the Code, by reason Plan was audited by the Internal for the next fourteen years. of section 4975(c)(1)(A) through (E) of Revenue Service (IRS) in 1992. The 8. In summary, the Trustees represent the Code, shall not apply to the cash audit disclosed the Trustees’ failure to that the proposed transaction meets the sale (the Sale) of certain improved real obtain periodic appraisals of the statutory criteria of section 408(a) of the property (the Property) by the Plan to Property and requisite rent adjustments Act because: the trustees of the Plan, Ernest Lieblich as mandated by PTE 83–159.10 The IRS (a) The terms and conditions of the and Caryl Lieblich (collectively, the noted that prohibited transactions Sale are at least as favorable to the Plan Trustees), parties in interest and occurred and that they have been as those obtainable in an arm’s length disqualified persons with respect to the transaction with an unrelated party; Plan, provided that the following 9 PTE 83–159 also provided exemptive relief for (b) The Trustees will purchase the conditions are met: the subsequent lease of the Property by the Plan to Property from the Plan for the greater of (a) All terms and conditions of the the Trustees. $315,000 or the Property’s fair market 10 Specifically, in the Proposal to PTE 83–159, 48 value as of the date of the transaction as Sale are no less favorable to the Plan FR 35740 (August 5, 1983), line item ‘‘3.’’ of the than those which the Plan could obtain ‘‘Summary of Facts and Representations,’’ provides in an arm’s length transaction with an that, ‘‘[t]he rental rent will be adjusted periodically, 11 In this regard, the Department is not offering unrelated party; but at a minimum of every three years, as any opinion as to the continued availability of PTE determined by an independent appraiser, to the 83–159 for the period beginning 1992, when the (b) The Trustees will purchase the greater of 10% of the fair market value of the Trustees’ failed to obtain an appraisal of the Property from the Plan for the greater of property, or the fair market rental value of the Property to determine the fair market rental value, $315,000 or the Property’s fair market property.’’ (48 FR at 35741). to the present.

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00071 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15370 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices determined by a qualified, independent Signed at Washington, DC, this 17th day of ACTION: Notice of availability of appraiser; March, 2000. proposed records schedules; request for (c) The proposed transaction is a one- Ivan Strasfeld, comments. time transaction for cash; and Director of Exemption Determinations, Pension and Welfare Benefits Administration, SUMMARY: The National Archives and (d) The Plan will pay no fees or Department of Labor. Records Administration (NARA) commissions associated with the [FR Doc. 00–7113 Filed 3–21–00; 8:45 am] publishes notice at least once monthly proposed Sale. BILLING CODE 4510±29±P of certain Federal agency requests for records disposition authority (records FOR FURTHER INFORMATION CONTACT: J. schedules). Once approved by NARA, Martin Jara, U.S. Department of Labor, NATIONAL AERONAUTICS AND records schedules provide mandatory telephone (202) 219–8883. (This is not instructions on what happens to records SPACE ADMINISTRATION a toll-free number.) when no longer needed for current General Information [Notice (00±027)] Government business. They authorize the preservation of records of The attention of interested persons is NASA Advisory Council (NAC), Task continuing value in the National directed to the following: Force on International Space Station Archives of the United States and the (1) The fact that a transaction is the Operational Readiness; Meeting destruction, after a specified period, of subject of an exemption under section AGENCY: National Aeronautics and records lacking administrative, legal, 408(a) of the Act and/or section Space Administration. research, or other value. Notice is published for records schedules in 4975(c)(2) of the Code does not relieve ACTION: Notice of meeting. a fiduciary or other party in interest or which agencies propose to destroy disqualified person from certain other SUMMARY: In accordance with the records not previously authorized for provisions of the Act and/or the Code, Federal Advisory Committee Act, Pub. disposal or reduce the retention period including any prohibited transaction L. 92–463, as amended, the National of records already authorized for provisions to which the exemption does Aeronautics and Space Administration disposal. NARA invites public not apply and the general fiduciary announces an open meeting of the NAC comments on such records schedules, as responsibility provisions of section 404 Task Force on International Space required by 44 U.S.C. 3303a(a). of the Act, which, among other things, Station Operational Readiness (IOR). DATES: Requests for copies must be require a fiduciary to discharge his DATES: Wednesday, April 5, 2000, 12 received in writing on or before May 8, duties respecting the plan solely in the p.m.–1 p.m. Eastern Standard Time. 2000. Once the appraisal of the records interest of the participants and ADDRESSES: NASA Headquarters, 300 E is completed, NARA will send a copy of beneficiaries of the plan and in a Street, SW, Room 7W31, Washington, the schedule. NARA staff usually prudent fashion in accordance with DC 20546. prepare appraisal memorandums that contain additional information section 404(a)(1)(b) of the Act; nor does FOR FURTHER INFORMATION CONTACT: Mr. concerning the records covered by a it affect the requirement of section Philip Cleary, Code IH, National proposed schedule. These, too, may be 401(a) of the Code that the plan must Aeronautics and Space Administration, requested and will be provided once the operate for the exclusive benefit of the Washington, DC 20546–0001, 202/358– appraisal is completed. Requesters will employees of the employer maintaining 4461. the plan and their beneficiaries; be given 30 days to submit comments. SUPPLEMENTARY INFORMATION: This ADDRESSES: To request a copy of any (2) Before an exemption may be meeting will be open to the public up records schedule identified in this granted under section 408(a) of the Act to the seating capacity of the room. The notice, write to the Life Cycle and/or section 4975(c)(2) of the Code, agenda for the meeting is as follows: Management Division (NWML), the Department must find that the —Review the readiness of the Shuttle exemption is administratively feasible, National Archives and Records (STS–101) Mission (ISS assembly Administration (NARA), 8601 Adelphi in the interests of the plan and of its flight 2A.2A). participants and beneficiaries, and Road, College Park, MD 20740–6001. It is imperative that the meeting be Requests also may be transmitted by protective of the rights of participants held on this date to accommodate the and beneficiaries of the plan; FAX to 301–713–6852 or by e-mail to scheduling priorities of the key [email protected]. Requesters (3) The proposed exemptions, if participants. Visitors will be requested must cite the control number, which granted, will be supplemental to, and to sign a visitors register. appears in parentheses after the name of not in derogation of, any other Dated: March 15, 2000. the agency which submitted the provisions of the Act and/or the Code, Mathew M. Crouch, schedule, and must provide a mailing including statutory or administrative address. Those who desire appraisal exemptions and transitional rules. Advisory Committee Management Officer, National Aeronautics and Space reports should so indicate in their Furthermore, the fact that a transaction Administration. request. is subject to an administrative or [FR Doc. 00–7056 Filed 3–21–00; 8:45 am] statutory exemption is not dispositive of FOR FURTHER INFORMATION CONTACT: whether the transaction is in fact a BILLING CODE 7510±01±M Marie Allen, Director, Life Cycle prohibited transaction; and (4) The Management Division (NWML), proposed exemptions, if granted, will be National Archives and Records subject to the express condition that the NATIONAL ARCHIVES AND RECORDS Administration, 8601 Adelphi Road, material facts and representations ADMINISTRATION College Park, MD 20740–6001. contained in each application are true Telephone: (301)713–7110. E-mail: Records Schedules; Availability and [email protected]. and complete, and that each application Request for Comments accurately describes all material terms SUPPLEMENTARY INFORMATION: Each year of the transaction which is the subject AGENCY: National Archives and Records Federal agencies create billions of of the exemption. Administration (NARA). records on paper, film, magnetic tape,

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00072 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15371 and other media. To control this 2. Department of Defense, Defense and word processing. Agency directives, accumulation, agency records managers Logistics Agency (N1–361–98–3, 5 operating manuals, and other prepare schedules proposing retention items, 4 temporary items). Records procedural issuances are proposed for periods for records and submit these relating to organization and functions permanent retention. schedules for NARA’s approval, using evaluations, including Department of 6. Department of Housing and Urban the Standard Form (SF) 115, Request for Defense Inspector General evaluation Development, Office of Federal Housing Records Disposition Authority. These and audit records, General Accounting Enterprise Oversight (N1–543–00–2, 10 schedules provide for the timely transfer Office reports, and other evaluation items, 7 temporary items). Records of into the National Archives of records. Also included are electronic the Office of General Counsel. Included historically valuable records and copies of documents created using are such records as an electronic authorize the disposal of all other electronic mail and word processing. tracking system used to check the status records after the agency no longer needs Recordkeeping copies of master sets of of ongoing projects and cases, legal them to conduct its business. Some evaluation policy development and opinions and subject files relating to schedules are comprehensive and cover implementation records are proposed routine or inconsequential matters, and all the records of an agency or one of its for permanent retention. electronic copies of documents created major subdivisions. Most schedules, 3. Department of Energy, Pittsburgh using electronic mail and word however, cover records of only one Naval Reactors Office (N1–434–99–3, 18 processing. Recordkeeping copies of office or program or a few series of items, 18 temporary items). Paper, significant legal opinions, subject files records. Many of these update electronic, and microform records pertaining to substantive matters, and previously approved schedules, and relating to naval nuclear reactor public rulemaking files are proposed for some include records proposed as research and the shipment of nuclear permanent retention. permanent. reactor materiel. Included are reports, 7. Department of Housing and Urban No Federal records are authorized for correspondence, test records, bills of Development, Office of Federal Housing destruction without the approval of the lading, escort logs, and radiological Enterprise Oversight (N1–543–00–3, 2 Archivist of the United States. This surveys. Also included are electronic items, 2 temporary items). Assessment approval is granted only after a copies of records created using calculation files relating to semi-annual thorough consideration of their electronic mail and word processing. assessments of government-sponsored administrative use by the agency of Records relating to significant research enterprises for funds appropriated to the origin, the rights of the Government and and development projects were agency from Congress. Included are of private persons directly affected by previously approved for permanent electronic copies of documents created the Government’s activities, and retention. using electronic mail and word whether or not they have historical or 4. Department of Housing and Urban processing. other value. Development, Agency-wide (N1–207– 8. Department of Housing and Urban Besides identifying the Federal 99–1, 9 items, 3 temporary items). Audit Development, Office of Federal Housing agencies and any subdivisions case files, including correspondence, Enterprise Oversight (N1–543–00–4, 7 requesting disposition authority, this memoranda, work papers, and items, 5 temporary items). Records of public notice lists the organizational electronic copies of records created the Office of Policy Analysis and unit(s) accumulating the records or using electronic mail and word Research relating to the compensation indicates agency-wide applicability in processing. Significant audit files will received by government-supported the case of schedules that cover records be evaluated for permanent retention on enterprise executives and to requests for that may be accumulated throughout an a case by case basis. Records proposed information concerning agency Notices agency. This notice provides the control for permanent retention date from the of Proposed Rulemaking. Also included number assigned to each schedule, the period 1954–1977 and include files that are electronic copies of documents total number of schedule items, and the relate to such matters as projects in created using electronic mail and word number of temporary items (the records small towns, equal housing opportunity processing. Recordkeeping copies of proposed for destruction). It also programs, new community programs, subject files and quarterly reports to the includes a brief description of the and metropolitan and suburban Department of Housing and Urban temporary records. The records development. Development are proposed for schedule itself contains a full 5. Department of Housing and Urban permanent retention. description of the records at the file unit Development, Office of Federal Housing 9. Department of Justice, Federal level as well as their disposition. If Enterprise Oversight (N1–543–00–1, 23 Bureau of Prisons (N1–129–00–2, 4 NARA staff has prepared an appraisal items, 22 temporary items). Records items, 4 temporary items). Special memorandum for the schedule, it too, accumulated by the Office of Investigative Supervisor program includes information about the records. Information Technology. Included are records. Included are files on inmates Further information about the such records as electronic records requiring close observation, memoranda disposition process is available on systems used to maintain information documenting incidental staff contact request. concerning agency files in all media, with released inmates, photographs of information security program files, inmates, and electronic copies of Schedules Pending chronological files of correspondence documents created using electronic mail 1. Department of Defense, Office of with the Federal National Mortgage and word processing. the Inspector General (N1–509–00–6, 15 Association, financial submissions in 10. Department of Justice, Federal items, 15 temporary items). paper and electronic formats from Bureau of Prisons (N1–129–00–6, 9 Correspondence files relating to government-sponsored enterprises, files items, 9 temporary items). Case administration, planning and relating to the operation of agency local management records that include such management, auditing, investigations, area networks, and an electronic system files as inmate monitoring logs, paper and inspections. Also included are containing data on assets and liabilities and electronic pay records, telephone electronic copies of documents created of government-sponsored enterprises. system records, listings of inmates using word processing and electronic Also included are electronic copies of housed separately from the general mail. records created using electronic mail population, staff meeting minutes, and

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00073 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15372 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices victim and witness logs. Also included 16. Department of the Treasury, Office CATS and the supporting are electronic copies of documents of the Inspector General (N1–56–00–2, documentation for the system are created using electronic mail and word 20 items, 16 temporary items). proposed for permanent retention. processing. Investigative and audit case files, legal 22. Federal Communications 11. Department of Justice, Federal opinion background files, litigation case Commission, Compliance and Bureau of Prisons (N1–129–00–9, 5 files, Office of Counsel subject files, Information Bureau (N1–173–98–7, 3 items, 5 temporary items). Records Inspector General subject files, and items, 3 temporary items). Records relating to health services, including tracking systems for case files. Also relating to public inquiries received by documentation of staff exposure to included are electronic copies of the agency’s telephone call center and blood-borne pathogens, information documents created using electronic mail the responses given, including statistical regarding continuing staff medical and word processing. Recordkeeping reports. education, and data tracking the cost of copies of legal opinions and significant 23. Federal Communications medical care provided both inside and investigative and audit case files are Commission, Offices of the Chairman outside of the correctional facility. Also proposed for permanent retention. and Commissioners (N1–173–98–8, 11 included are electronic copies of 17. Department of the Treasury, Office items, 7 temporary items). Routine documents created using electronic mail of the Comptroller of the Currency (N1– correspondence files including and word processing. 101–97–2, 8 items, 6 temporary items). invitations and reference materials, staff 12. Department of Justice, Federal Electronic systems relating to bank calendars, travel schedules, working Bureau of Prisons (N1–129–00–10, 3 supervision activities. Included are files, biographies, photographs, and items, 3 temporary items). Records inputs, outputs, master files, and system speeches. Substantive correspondence relating to employee development documentation for the Corporate and subject files of the Chairman and consisting of files documenting Activities Information System, the Fair Commissioners and their calendars are instructors’ teaching qualifications and Housing Loan Data System, and the proposed for permanent retention. memoranda of understanding relating to Shared National Credit System. The 24. National Archives and Records cooperative agreements with other Institution Database, a centralized Administration, Office of the Inspector Federal agencies and local or state electronic information system relating to General (N1–64–00–4, 5 items, 5 governmental bodies. Also included are national banks, and the related system temporary items). Audit case files and electronic copies of documents created documentation are proposed for investigative case files relating to agency using electronic mail and word permanent retention. programs, operations, procedures, processing. 18. Department of the Treasury, 13. Department of Justice, Federal Bureau of the Public Debt (N1–53–00– external audits of contractors and Bureau of Prisons (N1–129–00–11, 13 1, 5 items, 5 temporary items). Records grantees, and employee and Hotline items, 13 temporary items). Records relating to personnel matters, including complaints. Included are audit reports, relating to food service programs. on-the-spot awards, personnel listings, correspondence, memoranda, Included are such records as menus, Combined Federal Campaign investigative reports, notes, nutrition reports, staff meeting minutes, authorizations, and applications for attachments, working papers, and survey reports, training reports, work outstanding scholar programs. Also electronic copies of documents created orders, requisitions, inspection forms, included are electronic copies of using electronic mail and word and meal receipts. Also included are documents created using word processing. Significant investigative electronic copies of documents created processing and electronic mail. case files will be evaluated for using electronic mail and word 19. Department of the Treasury, permanent retention on a case by case processing. Bureau of the Public Debt (N1–53–00– basis. 14. Department of Justice, 2, 1 item, 1 temporary item). Employee 25. Tennessee Valley Authority, Immigration and Naturalization Service exit clearance forms that pertain to staff Offices of the Chairman and Board of (N1–85–99–3, 5 items, 1 temporary separating from the agency. Directors (N1–142–99–2, 4 items, 2 item). Draft decisions from 1954 20. Department of the Treasury, temporary items). Paper copies of released for public review prior to their Bureau of the Public Debt (N1–53–00– records of the Chairman and Directors adoption that do not reflect final 3, 4 items, 3 temporary items). Records for which optical images have been decisions and do not include public of the Office of the Commissioner created. Information that has been comments. Proposed for permanent relating to savings bonds, including converted to optical images is proposed retention are such records as policy/ correspondence, circulars, internal for permanent retention and will be subject correspondence files, 1957– memorandums, and specimen security transferred to the National Archives in 1974, correspondence pertaining to receipts. Also included are electronic a format that meets the requirements for agency policy, 1929–1944, and files copies of documents created using archival records in effect at the time of relating to Hungarian refugee programs, electronic mail and word processing. transfer. 1956–1957. Recordkeeping copies of significant 26. Tennessee Valley Authority, 15. Department of the Treasury, Office program files, including official Office of the Inspector General (N1– of the Assistant Secretary for issuances, press releases, and legal 142–99–5, 9 items, 7 temporary items). Enforcement (N1–56–00–1, 2 items, 2 opinions, are proposed for permanent Records generated during audits of temporary items). Electronic copies of retention. agency operations and investigations of records created using word processing 21. Environmental Protection Agency, alleged violations of regulations and and electronic mail that are associated Pesticides Program (N1–412–00–3, 3 laws and of fraud, waste, and abuse are with intelligence reports that relate to items, 1 temporary item). Software proposed for disposal. Also included are the agency’s Financial Crimes associated with the Compliance Activity electronic copies of documents created Enforcement Network. This schedule Tracking System (CATS). This using electronic mail and word also increases the retention period for electronic system contains data processing. Recordkeeping files recordkeeping copies of these files, concerning state inspections of pertaining to significant investigations which were previously approved for businesses that produce, sell, or use and final reports of significant audits are disposal. pesticides. The master data file for proposed for permanent retention.

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Dated: March 15, 2000. maintained pursuant to 10 CFR 110 U.S. Department of State, Washington, Michael J. Kurtz, enables the NRC to authorize only DC 20520. Assistant Archivist for Record Services— imports and exports which are not In its review of the applications for Washington, DC. inimical to U.S. common defense and licenses to export deuterium oxide [FR Doc. 00–7057 Filed 3–21–00; 8:45 am] security and which meet applicable (heavy water) as defined in 10 CFR part BILLING CODE 7515±01±P statutory, regulatory, and policy 110 and noticed herein, the Commission requirements. does not evaluate the health, safety or A copy of the supporting statement environmental effects in the recipient NUCLEAR REGULATORY may be viewed free of charge at the NRC nation of the material to be exported. COMMISSION Public Document Room, 2120 L Street The information concerning the NW, (lower level), Washington, DC. application follows. Documents Containing Reporting or OMB clearance requests are available at Recordkeeping Requirements: Office the NRC worldwide web site (http:// NRC EXPORT LICENSE APPLICATION of Management and Budget (OMB) www.nrc.gov/NRC/PUBLIC/OMB/ Review index.html). The document will be Name of appli- available on the NRC home page site for cant date of Description of Country of AGENCY: Nuclear Regulatory 60 days after the signature date of this application material to be date received exported destination Commission (NRC). notice. application No. ACTION: Notice of the OMB review of Comments and questions should be information collection and solicitation directed to the OMB reviewer listed Poco Graphite, Nuclear grade Various. of public comment. below by April 21, 2000. Inc., 12/03/ graphite, Erik Godwin, Office of Information and 99; 01/18/00; 680,385 kilo- SUMMARY: The NRC has recently Regulatory Affairs (3150–0036), XMAT0400. grams for submitted to OMB for review the NEOB–10202, Office of Management commercial, following proposal for the collection of non-nuclear and Budget,Washington, D.C. 20503. end use. information under the provisions of the Comments can also be submitted by Paperwork Reduction Act of 1995 (44 telephone at (202) 395–3087. U.S.C. Chapter 35). The NRC Clearance Officer is Brenda Dated this 16th day of March 2000 at 1. Type of submission, new, revision, Jo. Shelton, 301–415–7233. Rockville, Maryland. or extension: Extension. For the Nuclear Regulatory Commission. Dated at Rockville, Maryland, this 15th day 2. The title of the information of March, 2000. Ronald D. Hauber, collection: 10 CFR part 110—Rules and For the Nuclear Regulatory Commission. Deputy Director, Office of International Regulations for the Export and Import of Programs. Brenda Jo. Shelton, Nuclear Equipment and Material. [FR Doc. 00–7098 Filed 3–21–00; 8:45 am] NRC Clearance Officer, Office of the Chief 3. The form number, if applicable: BILLING CODE 7590±01±P 3150–0036. Information Officer 4. How often the collection is [FR Doc. 00–7099 Filed 3–21–00; 8:45 am] required: On occasion. BILLING CODE 7590±01±P NUCLEAR REGULATORY 5. Who is required or asked to report: COMMISSION Any person in the U.S. who wishes to NUCLEAR REGULATORY export or import nuclear material and [Docket Nos. 50±260, 50±296 ] equipment subject to the requirements COMMISSION Tennessee Valley Authority; (Browns of 10 CFR 110 or to export incidental Applications for Licenses to Export Ferry Nuclear Plant Units 2 and 3; radioactive material that is a Nuclear Material contaminant of shipments of more than Exemption 100 kilograms of non-waste material Pursuant to 10 CFR 110.70 (b)(3) I using existing NRC general licenses. ‘‘Public notice of receipt of an 6. An estimate of the number of application’’, please take notice that the The Tennessee Valley Authority (TVA responses: 100. Nuclear Regulatory Commission has or the licensee) is the holder of Facility 7. The estimated number of annual received the following application for Operating License No. DPR–52 for respondents: 125. an export license. Copies of the operation of the Browns Ferry Nuclear 8. An estimate of the total hours application are available electronically Plant Unit 2 (BFN–2) and DPR–68 for needed annually to complete the through ADAMS and can be accessed Unit 3 (BFN–3). The licenses provide, requirement or request: reporting, 130 through the Public Electronic Reading among other things, that the licensee is hours (1.3 hours per response); Room (PERR) link at the NRC orders of the U.S. Nuclear Regulatory respondent). The total burden is 280 Homepage. Commission (Commission or NRC) now hours. A request for a hearing or petition for or hereafter in effect. 9. An indication of whether Section leave to intervene may be filed within BFN–2 and BFN–3 are boiling-water 3507(d), Pub. L. 104–13 applies: Not 30 days after publication of this notice reactors located in Limestone County, applicable. in the Federal Register. Any request for Alabama. 10. Abstract: 10 CFR 110 provides hearing or petition for leave to intervene application, reporting, and shall be served by the requestor or II recordkeeping requirements for exports petitioner upon the applicant, the Office Title 10 of the Code of Federal and imports of nuclear material and of the General Counsel, U.S. Nuclear Regulations (10 CFR), Section 50.54(o), equipment subject to the requirements Regulatory Commission, Washington DC requires that primary reactor of a specific license or a general license 20555; the Secretary, U.S. Nuclear containments for water-cooled power and exports of incidental radioactive Regulatory Commission, Washington, reactors be subject to the requirements material. The information collected and DC 20555; and the Executive Secretary, of Appendix J to 10 CFR Part 50.

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Appendix J specifies the leakage test maximum allowable combined MSIV risk to the public health and safety, and requirements, schedules, and leakage to 150 scfm, which is less than that there are special circumstances acceptance criteria for tests of the leak the analytical limit of 168 scfm. present, as specified in 10 CFR tight integrity of the primary reactor Therefore, the staff finds the proposed 50.12(a)(2). An exemption is hereby containment and systems and exemptions from Appendix J to separate granted from the requirements of components which penetrate the MSIV leakage from other containment Sections III.A and III.B of Option B of containment. Option B, Section III.A leakage to be acceptable. Appendix J to 10 CFR part 50. The requires that the overall integrated leak III exemption allows exclusion of MSIV rate must not exceed the allowable leakage from the overall integrated leak leakage (La) with margin, as specified in Pursuant to 10 CFR 50.12, the rate test measurement and from the sum the Technical Specifications (TS). The Commission may, upon application by of Type B and C test measurements used overall integrated leak rate, as specified any interested person or upon its own to determine compliance with TS in the 10 CFR Part 50, Appendix J initiative, grant exemptions from the surveillance requirements for definitions, includes the contribution requirements of 10 CFR Part 50 when (1) containment integrity. from main steam isolation valve (MSIV) The exemptions are authorized by law, Pursuant to 10 CFR 51.32, the leakage. By letter dated September 28, will not present an undue risk to public Commission has determined that the 1999, as supplemented by letter dated health and safety, and are consistent granting of this exemption will have no February 4, 2000, the licensee has with the common defense and security, significant impact on the quality of the requested exemption from Option B, and (2) When special circumstances are human environment (65 FR 10844). Section III.A, requirements to permit present. Special circumstances are This exemption is effective upon exclusion of MSIV leakage from the present whenever, according to 10 CFR issuance and will be implemented prior overall integrated leak rate test part 50.12(a)(2)(ii), ‘‘Application of the to startup of Cycle 12 for Browns Ferry measurement. regulation in the particular Unit 2 and prior to startup of Cycle 10 Option B, Section III.B of 10 CFR Part circumstances would not serve the for Browns Ferry Unit 3. 50, Appendix J requires that the sum of underlying purpose of the rule or is not the leakage rates of all Type B and Type necessary to achieve the underlying Dated at Rockville, Maryland this 14th day of March 2000. C local leak rate tests be less than the purpose of the rule * * *’’ performance criterion (La) with margin, The licensee’s exemption request was For the Nuclear Regulatory Commission. as specified in the TS. The licensee also submitted in conjunction with a TS John A. Zwolinski, requests exemption from this amendment application to increase the Director Division of Licensing Project requirement, to permit exclusion of the allowable leak rate for MSIVs. (The Management, Office of Nuclear Reactor MSIV contribution to the sum of the proposed amendment will be issued Regulation. Type B and Type C tests. concurrently with this exemption.) The [FR Doc. 00–7100 Filed 3–21–00; 8:45 am] The MSIV leakage effluent has a exemption and amendments together BILLING CODE 7590±01±P different pathway to the environment. It would implement the recommendations is not directed into the secondary of Topical Report NEDC–31858, ‘‘BWR containment and filtered through the Report for Increasing MSIV Leakage NUCLEAR REGULATORY standby gas treatment system as is other Rate Limits and Elimination of Leakage COMMSSION containment leakage. Instead, the MSIV Control Systems.’’ The topical report Public Meeting on 10 CFR Part 70; leakage is directed through the main was evaluated by the staff and accepted Standard Review Plan steam drain piping into the condenser in a safety evaluation dated March 3, and is released to the environment as an 1999. The special circumstances AGENCY: Nuclear Regulatory unfiltered ground level effluent. The associated with MSIV leakage testing are Commission (NRC). licensee analyzed the MSIV leakage fully described in the topical report. ACTION: Notice of Meeting. pathway for the increased leakage (from These circumstances relate to the 46 scfh to 168 scfh), and the monetary costs and personnel radiation SUMMARY: NRC will host a public containment leakage pathway separately exposure involved with maintaining meeting in Rockville, Maryland. The in a dose consequences analysis. The MSIV leakage limits more restrictive meeting will provide an opportunity for calculated radiological consequences of than necessary to meet offsite dose discussion of stakeholder comments on the combined leakages were found to be criteria and control room habitability the revised Standard Review Plan (SRP) within the criteria of 10 CFR part 100 criteria. chapters that were made available and GDC–19. The staff reviewed the The underlying purpose of the rule during March and April 2000. The licensee’s analyses and found them which implements Appendix J (i.e., 10 revised chapters can be reviewed on the acceptable as described in a safety CFR 50.54(o)) is to assure that internet at the following website: http:/ analysis accompanying amendments to containment leak tight integrity is /techconf.llnl.gov/cgi-bin/library/ be issued concurrently with this maintained (a) As tight as reasonably =*&library= exemption. By separating the MSIV achievable and (b) Sufficiently tight so PURPOSE: This meeting will provide an leakage acceptance criteria from the as to limit effluent release to values opportunity to discuss any comments overall integrated leak rate test criteria, bounded by the analyses of radiological on the staff’s recently revised SRP and from the Type B and C leakage sum consequences of design basis accidents. chapters. limitation, the BFN–2 and BFN–3 The staff has determined that the intent containment leakage testing program of the rule is not compromised by the DATES: The meeting is scheduled for will be made more consistent with the proposed action. Tuesday through Wednesday, April 18 limiting assumptions used in the and 19, 2000, from 9 A.M. to 4 P.M. The associated accident consequences IV meeting is open to the public. analyses. The amendments associated Accordingly, the Commission has ADDRESSES: NRC’s Auditorium at Two with this exemption will revise determined that, pursuant to 10 CFR White Flint North, 11545 Rockville Technical Specification Surveillance part 50.12, an exemption is authorized Pike, Rockville, Maryland. Visitor Requirement 3.6.1.3.10 to limit the by law and will not present an undue parking around the NRC building is

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00076 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15375 limited; however, the meeting site is proposed amendment would not (1) proceeding must file a written request located adjacent to the White Flint involve a significant increase in the for a hearing and a petition for leave to Station on the Metro Red Line. probability or consequences of an intervene. Requests for a hearing and a FOR FURTHER INFORMATION CONTACT: accident previously evaluated; or (2) petition for leave to intervene shall be Theodore S. Sherr, Office of Nuclear create the possibility of a new or filed in accordance with the Material Safety and Safeguards, U.S. different kind of accident from any Commission’s ‘‘Rules of Practice for Nuclear Regulatory Commission, accident previously evaluated; or (3) Domestic Licensing Proceedings’’ in 10 Washington, DC 20555, telephone: (301) involve a significant reduction in a CFR part 2. Interested persons should 415–7190, e-mail tss@nrc.gov. margin of safety. The basis for this consult a current copy of 10 CFR 2.714 proposed determination for each which is available at the Commission’s Dated at Rockville, Maryland this 16th day amendment request is shown below. Public Document Room, the Gelman of March, 2000. The Commission is seeking public Building, 2120 L Street, NW., For the Nuclear Regulatory Commission. comments on this proposed Washington, DC, and electronically Theodore S. Sherr, determination. Any comments received from the ADAMS Public Library Chief, Licensing and International Safeguards within 30 days after the date of component on the NRC Web site, http:/ Branch, Division of Fuel Cycle Safety and publication of this notice will be /www.nrc.gov (the Electronic Reading Safeguards, NMSS. considered in making any final Room). If a request for a hearing or [FR Doc. 00–7102 Filed 3–21–00; 8:45 am] determination. petition for leave to intervene is filed by BILLING CODE 7590±01±P Normally, the Commission will not the above date, the Commission or an issue the amendment until the Atomic Safety and Licensing Board, expiration of the 30-day notice period. designated by the Commission or by the NUCLEAR REGULATORY However, should circumstances change Chairman of the Atomic Safety and COMMISSION during the notice period such that Licensing Board Panel, will rule on the failure to act in a timely way would request and/or petition; and the Biweekly Notice; Applications and result, for example, in derating or Secretary or the designated Atomic Amendments to Facility Operating shutdown of the facility, the Safety and Licensing Board will issue a Licenses Involving No Significant Commission may issue the license notice of a hearing or an appropriate Hazards Considerations amendment before the expiration of the order. I. Background 30-day notice period, provided that its As required by 10 CFR 2.714, a final determination is that the petition for leave to intervene shall set Pursuant to Public Law 97–415, the amendment involves no significant forth with particularity the interest of U.S. Nuclear Regulatory Commission hazards consideration. The final the petitioner in the proceeding, and (the Commission or NRC staff) is determination will consider all public how that interest may be affected by the publishing this regular biweekly notice. and State comments received before results of the proceeding. The petition Public Law 97–415 revised section 189 action is taken. Should the Commission should specifically explain the reasons of the Atomic Energy Act of 1954, as take this action, it will publish in the why intervention should be permitted amended (the Act), to require the Federal Register a notice of issuance with particular reference to the Commission to publish notice of any and provide for opportunity for a following factors: (1) The nature of the amendments issued, or proposed to be hearing after issuance. The Commission petitioner’s right under the Act to be issued, under a new provision of section expects that the need to take this action made a party to the proceeding; (2) the 189 of the Act. This provision grants the will occur very infrequently. nature and extent of the petitioner’s Commission the authority to issue and Written comments may be submitted property, financial, or other interest in make immediately effective any by mail to the Chief, Rules Review and the proceeding; and (3) the possible amendment to an operating license Directives Branch, Division of Freedom effect of any order which may be upon a determination by the of Information and Publications entered in the proceeding on the Commission that such amendment Services, Office of Administration, U.S. petitioner’s interest. The petition should involves no significant hazards Nuclear Regulatory Commission, also identify the specific aspect(s) of the consideration, notwithstanding the Washington, DC 20555–0001, and subject matter of the proceeding as to pendency before the Commission of a should cite the publication date and which petitioner wishes to intervene. request for a hearing from any person. page number of this Federal Register Any person who has filed a petition for This biweekly notice includes all notice. Written comments may also be leave to intervene or who has been notices of amendments issued, or delivered to Room 6D22, Two White admitted as a party may amend the proposed to be issued from February 26, Flint North, 11545 Rockville Pike, petition without requesting leave of the 2000, through March 10, 2000. The last Rockville, Maryland from 7:30 a.m. to Board up to 15 days prior to the first biweekly notice was published on 4:15 p.m. Federal workdays. Copies of prehearing conference scheduled in the March 8, 2000 (65 FR 12286). written comments received may be proceeding, but such an amended examined at the NRC Public Document Notice of Consideration of Issuance of petition must satisfy the specificity Room, the Gelman Building, 2120 L Amendments to Facility Operating requirements described above. Street, NW., Washington, DC. The filing Not later than 15 days prior to the first Licenses, Proposed No Significant of requests for a hearing and petitions prehearing conference scheduled in the Hazards Consideration Determination, for leave to intervene is discussed proceeding, a petitioner shall file a and Opportunity for a Hearing below. supplement to the petition to intervene The Commission has made a By April 21, 2000, the licensee may which must include a list of the proposed determination that the file a request for a hearing with respect contentions which are sought to be following amendment requests involve to issuance of the amendment to the litigated in the matter. Each contention no significant hazards consideration. subject facility operating license and must consist of a specific statement of Under the Commission’s regulations in any person whose interest may be the issue of law or fact to be raised or 10 CFR 50.92, this means that operation affected by this proceeding and who controverted. In addition, the petitioner of the facility in accordance with the wishes to participate as a party in the shall provide a brief explanation of the

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The petitioner must also granted based upon a balancing of evaluated. provide references to those specific factors specified in 10 CFR Does the change involve a significant sources and documents of which the 2.714(a)(1)(i)–(v) and 2.714(d). reduction in the margin of safety? petitioner is aware and on which the For further details with respect to this No assumptions are changed for any petitioner intends to rely to establish action, see the application for analysis as a result of this amendment. No those facts or expert opinion. Petitioner amendment which is available for system, structure, or component is changed must provide sufficient information to public inspection at the Commission’s by this amendment. This amendment does show that a genuine dispute exists with Public Document Room, the Gelman not change the results of accident and the applicant on a material issue of law Building, 2120 L Street, NW., transient analyses previously evaluated. or fact. Contentions shall be limited to Therefore, the proposed amendment does Washington, DC, and electronically not involve a significant reduction in the matters within the scope of the from the ADAMS Public Library margin of safety. amendment under consideration. The component on the NRC Web site, http:/ contention must be one which, if /www.nrc.gov (the Electronic Reading The NRC staff has reviewed the proven, would entitle the petitioner to Room). licensee’s analysis and, based on this relief. A petitioner who fails to file such review, it appears that the three a supplement which satisfies these Commonwealth Edison Company, standards of 10 CFR 50.92(c) are requirements with respect to at least one Docket No. 50–237, Dresden Nuclear satisfied. Therefore, the NRC staff contention will not be permitted to Power Station, Unit 2, Grundy County, proposes to determine that the participate as a party. Illinois requested amendment involves no Those permitted to intervene become Date of amendment request: April 30, significant hazards consideration. parties to the proceeding, subject to any 1999. Attorney for licensee: Ms. Pamela B. limitations in the order granting leave to Description of amendment request: Stroebel, Senior Vice President and intervene, and have the opportunity to The proposed amendment would revise General Counsel, Commonwealth participate fully in the conduct of the the expiration date of the operating Edison Company, P.O. Box 767, hearing, including the opportunity to license to allow 40 years of operation Chicago, Illinois 60690–0767. present evidence and cross-examine from the original date of issuance. NRC Section Chief: Anthony J. witnesses. Basis for proposed no significant Mendiola. If a hearing is requested, the hazards consideration determination: Commonwealth Edison Company, Commission will make a final As required by 10 CFR 50.91(a), the Docket Nos. 50–237 and 50–249, determination on the issue of no licensee has provided its analysis of the Dresden Nuclear Power Station, Units 2 significant hazards consideration. The issue of no significant hazards and 3, Grundy County, Illinois final determination will serve to decide consideration, which is presented when the hearing is held. below: Date of amendment request: February If the final determination is that the 21, 2000. Does the change involve a significant Description of amendment request: amendment request involves no increase in the probability of occurrence or significant hazards consideration, the consequences of an accident previously The proposed amendments would Commission may issue the amendment evaluated? change the condensate storage tank and make it immediately effective, The programs to detect incipient failures or (CST) low level setpoint to prevent notwithstanding the request for a degraded performance such as Inservice entrainment of air in the high pressure hearing. Any hearing held would take Inspection, Inservice Testing, and coolant injection (HPCI) pump suction place after issuance of the amendment. Environmental Qualification programs, for line when taking suction from the CST. If the final determination is that the example, remain in place and unchanged. The amendments would also revise the The thermal cycles and reactor vessel surveillance requirements for the CST amendment request involves a toughness are within the 40-year design significant hazards consideration, any margin and will remain within those margins level instruments. hearing held would take place before for the total operating period proposed by the Basis for proposed no significant the issuance of any amendment. amendment. No equipment is added, hazards consideration determination: A request for a hearing or a petition modified, or removed as a result of this As required by 10 CFR 50.91(a), the for leave to intervene must be filed with amendment. Therefore there is no increase in licensee has provided its analysis of the the Secretary of the Commission, U.S. the probability of an occurrence. No changes issue of no significant hazards Nuclear Regulatory Commission, are made to the assumptions on which the consideration, which is presented Washington, DC 20555–0001, Attention: UFSAR accident and transient analyses are below: based. Therefore, there is no reason for an Docketing and Services Branch, or may increase in the consequences of any of the Does the change involve a significant be delivered to the Commission’s Public analyzed conditions which could lead to an increase in the probability or consequences Document Room, the Gelman Building, increase in Onsite or Offsite dose of an accident previously evaluated? 2120 L Street, NW., Washington, DC, by consequences. The Condensate Storage Tank (CST) water the above date. A copy of the petition Therefore, this proposed amendment does level and the installation of new pressure should also be sent to the Office of the not involve a significant increase in the type switches are not precursors to accidents General Counsel, U.S. Nuclear probability of occurrence of consequences of or transients described in the Updated Final Safety Analysis Report (UFSAR). The Regulatory Commission, Washington, an accident previously evaluated. Does the change create [the] possibility of proposed changes will maintain the DC 20555–0001, and to the attorney for a new or different kind of accident from any operability of the High Pressure Coolant the licensee. previously evaluated? Injection (HPCI) system, thus the HPCI Nontimely filings of petitions for No systems, structures, or components are system will continue to function as designed. leave to intervene, amended petitions, changed by this amendment. No procedures Any failure of the new switches will still supplemental petitions and/or requests that operate, maintain, or surveil them are cause realignment of the HPCI suction from

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00078 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15377 the CST to the Torus as currently designed. Description of amendment request: ensure that 99.9% of the fuel rods avoid Therefore, the proposed changes in water The proposed amendments would boiling transition. level and the installation of a new type increase the Technical Specification The MCPR Safety Limit is changing for switch will not result in a significant increase safety limit for the Minimum Critical LaSalle County Station, Unit 2 to support in the probability or consequences of an Cycle 8 operation at uprated power accident previously evaluated. Power Ratio from 1.08 for two loop conditions. Changing the MCPR Safety Limit Does the change create the possibility of a operation and 1.09 for single loop does not introduce any physical changes to new or different kind of accident from any operation to 1.11 and 1.12 respectively. the plant, alter the processes used to operate accident previously evaluated? The revised safety limits will the plant, or change allowable modes of For a system to create the possibility of a conservatively bound the current operation. Therefore, no new or different new and different accident, the proposed LaSalle Unit 2 operating cycle for an kind of accident is created that is different changes would have to require the system to anticipated 5 percent power uprate. from any accident previously evaluated. operate in a mode or configuration that is Basis for proposed no significant 3. Do the proposed changes involve a different from the original design. The hazards consideration determination: significant reduction in a margin of safety? installation of the new switches does not As required by 10 CFR 50.91(a), the The MCPR Safety Limit provides a margin alter the current logic configuration. The new of safety by ensuring that less than 0.1% of switches will continue to function and licensee has provided its analysis of the the fuel rods are predicted to be in boiling initiate a transfer from the CSTs to the Torus issue of no significant hazards transition. The proposed changes increase as the suction source as originally designed. consideration, which is presented the two loop operation MCPR Safety Limit The proposed changes to the Technical below: from 1.08 to 1.11 and the single loop Specifications (TS) will ensure that the HPCI 1. Do the proposed changes involve a operation MCPR Safety Limit from 1.09 to suction transfer will occur before any air is significant increase in the probability or 1.12. A larger value for the MCPR Safety entrained into the pump suction line. This is consequences of an accident previously Limit is conservative and bounding for the accomplished by ensuring that the water evaluated? current LaSalle County Station, Unit 2 Cycle level in the CSTs does not reach the vortex The proposed changes increase the two 8 core at the current licensed power level, limit before the transfer of the HPCI pump loop operation Minimum Critical Power because compliance with a MCPR Safety suction from the CSTs to the Torus is Ratio (MCPR) Safety Limit from 1.08 to 1.11 Limit equal to or greater than what is complete. No new functional failure modes and the single loop operation MCPR Safety calculated will ensure that less than 0.1% of will be introduced upon implementation of Limit from 1.09 to 1.12. MCPR Safety Limits the fuel rods experience boiling transition. the proposed changes. Therefore, the have been established consistent with NRC- Additionally, the proposed changes are being possibility of a new or different kind of approved methods to ensure that fuel submitted prior to completion of the detailed accident has not been created. performance is acceptable. These changes do calculations for Cycle 8 power uprate. Does the change involve a significant not affect the operability of plant systems, However, based on preliminary calculations, reduction in a margin of safety? nor do they compromise any fuel these revised limits are anticipated to bound The proposed changes to the CST Level- performance limits. Therefore, the Unit 2 Cycle 8 operation at uprated Low trip setpoint and installation of the new probability of an accident will not be conditions. pressure switches provide assurance that air changed based on these proposed changes. Therefore, the margin of safety will entrainment and vortexing will be prevented The MCPR Safety Limit is set such that no during HPCI operation. By maintaining an not be reduced. fuel damage is calculated to occur if the limit The NRC staff has reviewed the increased volume in the CSTs, the is not violated. A larger value for the MCPR probability of a HPCI system malfunction due Safety Limit is conservative and bounding for licensee’s analysis and, based on this to air entrainment or vortexing is decreased. the current LaSalle County Station, Unit 2, review, it appears that the three The installation of the new pressure type Cycle 8 core at the current licensed power standards of 10 CFR 50.92(c) are switches does not change the current logic level, because compliance with an MCPR satisfied. Therefore, the NRC staff configuration. The new switches will be Safety Limit equal to or greater than the proposes to determine that the calibrated at a frequency to ensure that the calculated value will ensure that less than requested amendments involve no probability of unacceptable instrument drift 0.1% of the fuel rods experience boiling significant hazards consideration. is maintained at an acceptable level. transition. The MCPR Safety Limit does not Attorney for licensee: Ms. Pamela B. Therefore, the proposed change does not impact the source term or pathways assumed Stroebel, Senior Vice President and involve a significant reduction in the margin in accidents previously evaluated. Therefore, of safety. these proposed changes do not increase the General Counsel, Commonwealth consequences of an accident previously Edison Company, P.O. Box 767, The NRC staff has reviewed the evaluated. Chicago, Illinois 60690–0767. licensee’s analysis and, based on this Additionally, operational MCPR limits will NRC Section Chief: Anthony J. review, it appears that the three be applied that will ensure the MCPR Safety Mendiola. standards of 10 CFR 50.92(c) are Limit is not violated during all modes of satisfied. Therefore, the NRC staff operation and anticipated operational Duke Energy Corporation, Docket Nos. proposes to determine that the occurrences in accordance with the Core 50–369 and 50–370, McGuire Nuclear requested amendments involve no Operating Limits Report (COLR), which will Station, Units 1 and 2, Mecklenburg significant hazards consideration. be implemented prior to operation at uprated County, North Carolina power. The MCPR Safety Limit ensures that Attorney for licensee: Ms. Pamela B. less than 0.1% of the fuel rods in the core Date of amendment request: Stroebel, Senior Vice President and are expected to experience boiling transition. November 23, 1999. General Counsel, Commonwealth Therefore, the probability or consequences of Description of amendment request: Edison Company, P.O. Box 767, an accident will not increase. The proposed amendments would Chicago, Illinois 60690–0767. 2. Do the proposed changes create the revise Technical Specification 5.5.11— NRC Section Chief: Anthony J. possibility of a new or different kind of Ventilation Filter Testing Program, Mendiola. accident from any accident previously which provides the test requirements for evaluated? charcoal filters, to assure compliance Commonwealth Edison Company, Creation of the possibility of a new or with the requirements of American Docket Nos. 50–373 and 50–374, LaSalle different kind of accident would require the Society for Testing and Materials County Station, Units 1 and 2, LaSalle creation of one or more new precursors of (ASTM) D3803–1989. County, Illinois that accident. Changing the MCPR Safety Limit does not alter or add any new Basis for proposed no significant Date of amendment request: February equipment or change modes of operation. hazards consideration determination: 28, 2000. The MCPR Safety Limit is established to As required by 10 CFR 50.91(a), the

VerDate 202000 14:11 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00079 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm01 PsN: 22MRN1 15378 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices licensee has provided its analysis of the South Church Street, Charlotte, North generated. Consequently, plant accident issue of no significant hazards Carolina 28201–1006. analyses will not be affected by these consideration, which is presented NRC Section Chief: Richard L. Emch, changes. below: Jr. 3. Does this change involve a significant reduction in a margin of safety? 1. Does the change involve a significant Duke Energy Corporation, Docket Nos. No. The proposed changes are consistent increase in the probability or consequences 50–369 and 50–370, McGuire Nuclear with the current licensing basis for the of an accident previously evaluated? Station, Units 1 and 2, Mecklenburg McGuire Nuclear Station, the setpoint No. The proposed changes will ensure that County, North Carolina methodologies used to develop the Trip the Technical Specification 5.5.11, Section c, Setpoints, the McGuire Safety Analyses, and required testing of charcoal filters in McGuire Date of amendment request: January current station calibration procedures and ventilation systems designed to meet the 6, 2000. practices. Margin of safety is related to the guidance provided in Regulatory Guide 1.52, Description of amendment request: confidence in the ability of the fission Revision 2, are performed as per ASTM The proposed amendments would product barriers to perform their design D3803–1989. This will ensure that these revise Technical Specifications (TS) functions during and following accident filters are capable of performing their design 3.3.1—Reactor Trip System (RTS) conditions. These barriers include the fuel function to maintain offsite and control room cladding, the reactor coolant system, and the operator doses within the limits of 10 CFR Instrumentation, TS 3.3.2—Engineered Safety Feature Actuation System containment system. The performance of 100, Subpart A and 10 CFR 50, Appendix A, these barriers will not be degraded by the GDC [General Design Criteria] 19, following (ESFAS) Instrumentation, TS 3.3.5— proposed changes. Consequently, plant safety a LOCA [Loss-of-Coolant Accident] or a Loss of Power Diesel Generator Start analyses will not be affected by these postulated fuel handling accident. (LOP) Instrumentation, and TS 3.3.6— changes. Consequently, the proposed changes only Containment Purge and Exhaust deal with the performance of these systems Isolation (VP) Instrumentation. The The NRC staff has reviewed the during an accident and have no impact on proposed revisions will facilitate licensee’s analysis and, based on this accident probabilities. In addition, since the treatment of the applicable RTS, ESFAS, review, it appears that the three proposed changes help ensure the capability standards of 10 CFR 50.92(c) are of the subject ventilation systems to perform LOP, and VP Instrumentation TS Trip Setpoints as nominal values. In satisfied. Therefore, the NRC staff their design function, there will be no proposes to determine that the reduction in the ability of these systems to addition, proposed changes to the minimize the consequences of a previously applicable TS Bases further define the amendment request involves no evaluated accident. TS Trip Setpoints as nominal values. significant hazards consideration. 2. Does the change create the possibility of Basis for proposed no significant Attorney for licensee: Ms. Lisa F. a new or different kind of accident from any hazards consideration determination: Vaughn, Duke Energy Corporation, 422 accident previously evaluated? South Church Street, Charlotte, North No. The proposed changes only help As required by 10 CFR 50.91(a), the licensee has provided its analysis of the Carolina 28201–1006. ensure the performance of the subject NRC Section Chief: Richard L. Emch, ventilation systems during an accident and issue of no significant hazards have no impact on accident possibilities. No consideration, which is presented Jr. changes are being made to actual plant below: Entergy Operations, Inc., Docket No. 50– hardware or the way in which the plant is 1. Does the change involve a significant 313, Arkansas Nuclear One, Unit No. 1, being operated. Therefore, no new accident increase in the probability or consequences Pope County, Arkansas causal mechanisms will be generated. of an accident previously evaluated? Consequently, plant accident analyses will No. The proposed changes are consistent Date of amendment request: not be affected by these changes. with the current licensing basis for the November 23, 1999, as supplemented by 3. Does this change involve a significant McGuire Nuclear Station, the setpoint letter dated February 24, 2000 reduction in a margin of safety? methodologies used to develop the Trip Description of amendment request: No. Margin of safety is related to the Setpoints, the McGuire Safety Analyses, and confidence in the ability of the fission The proposed amendment would current station calibration procedures and product barriers to perform their design incorporate the use of American Society practices. The Reactor Trip System and functions during and following accident for Testing and Materials (ASTM) Engineered Safety Features Actuation System D3803–1989, ‘‘Standard Test Method for conditions. These barriers include the fuel are not accident initiating systems; they are cladding, the reactor coolant system, and the accident mitigating systems. Therefore, these Nuclear-Grade Activated Carbon,’’ into containment system. The performance of proposed changes will have no impact on the Technical Specifications (TSs). these barriers will not be degraded by the any accident probabilities. Accident Entergy Operations, Inc. (the licensee) is proposed changes. In addition, the proposed consequences will not be affected, as no submitting this proposed amendment as changes to the maximum methyl iodide changes are being made to the plant which a complete response to Nuclear requirements to accommodate planned will involve a reduction in reliability of these Regulatory Commission (NRC) Generic changes in filter efficiencies will not result in systems. Consequently, any previous any degradation in the capability of the Letter (GL) 99–02, ‘‘Laboratory Testing evaluations associated with accidents will of Nuclear-Grade Activated Charcoal.’’ affected charcoal filters to perform their not be affected by these changes. design function. As a result of the above, 2. Does the change create the possibility of The February 24, 2000, supplement plant safety analyses will not be affected by a new or different kind of accident from any proposes additional changes to the TSs the changes proposed in this LAR [License accident previously evaluated? to ensure that ventilation system Amendment Request]. No. The proposed changes are consistent velocity requirements are established in The NRC staff has reviewed the with the current licensing basis for the accordance with the standards of ASTM licensee’s analysis and, based on this McGuire Nuclear Station, the setpoint D3803–1989. This application was review, it appears that the three methodologies used to develop the Trip previously noticed in the Federal standards of 10 CFR 50.92(c) are Setpoints, the McGuire Safety Analyses, and Register on March 8, 2000 (65 FR current station calibration procedures and 12291). satisfied. Therefore, the NRC staff practices. No changes are being made to proposes to determine that the actual plant hardware which will result in Basis for proposed no significant amendment request involves no any new accident causal mechanisms. Also, hazards consideration determination: significant hazards consideration. no changes are being made to the way in As required by 10 CFR 50.91(a), the Attorney for licensee: Ms. Lisa F. which the plant is being operated. Therefore, licensee has provided its analysis of the Vaughn, Duke Energy Corporation, 422 no new accident causal mechanisms will be issue of no significant hazards

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Deleting portions of applicable ANO–1 proposes to determine that the The proposed changes, therefore, are not [Arkansas Nuclear One, Unit 1] TSs that amendment request involves no relevant to creating new or different kinds of reference system design velocity criteria for significant hazards consideration. accidents than those previously evaluated. activated charcoal medium testing requires Attorney for licensee: Nicholas S. The proposed actions are in addition to those no physical change to plant design. NRC GL Reynolds, Esquire, Winston and Strawn, currently required by the ANO–2 TSs. 99–02, in support of the ASTM D3803–1989 1400 L Street, NW., Washington, DC Therefore, this change does not create the standard, requires licensees to utilize possibility or a new or different kind of 20005–3502. accident from any previously evaluated. charcoal testing methods that will ensure the NRC Section Chief: Robert A. Gramm. current license basis, as it relates to General Criterion 3—Does Not Involve a Significant Design Criterion (GDC) 19, is maintained. Entergy Operations, Inc., Docket No. 50– Reduction in the Margin of Safety The existing criterion within the affected 368, Arkansas Nuclear One, Unit No. 2, The inclusion of additional actions within ANO–1 TSs is less restrictive than that of Pope County, Arkansas the ANO–2 TSs associated with the control ASTM D3803–1989 standard and, therefore, room emergency ventilation and air is being proposed for deletion. The testing of Date of amendment request: January 27, 2000. conditioning systems during the handling of charcoal mediums has no impact on the irradiated fuel act to ensure the operability of probability of an accident occuring. However, Description of amendment request: the remaining system, eliminate the reliance the charcoal mediums do act to reduce The proposed amendment would revise on automatic actuation where applicable, and radioiodines released to the environment the Arkansas Nuclear One, Unit 2 ensure that any active failure will be readily during and following an accident. Testing the (ANO–2) technical specifications (TS) detected. The proposed changes, therefore, charcoal mediums to a more restrictive by providing actions associated with act to maintain the margin of safety by standard, however, does not increase the inoperable control room emergency ensuring the operability of redundant consequences of an accident since such ventilation or cooling systems during equipment that is required to protect control testing ensures the current analyses remain movement of irradiated fuel during room personnel in the event of a fuel handling accident. The proposed actions are valid. shutdown modes of operation, when Therefore, the proposed changes do not in addition to those currently required by the involve a signficant increase in the allowed outage times associated with ANO–2 TSs and, therefore, are more probability or consequences of any accident these systems are not met. restrictive. previously evaluated. Basis for proposed no significant Therefore, this change does not involve a hazards consideration determination: significant reduction in the margin of safety. Criterion 2—Does Not Create the Possibility of a New or Different Kind of Accident from As required by 10 CFR 50.91(a), the The NRC staff has reviewed the any Previously Evaluated licensee has provided its analysis of the licensee’s analysis and, based on this issue of no significant hazards As stated previously, the proposed changes review, it appears that the three consideration, which is presented to the ANO–1 TSs do not result in any standards of 10 CFR 50.92(c) are physical change to plant design, nor does the below: satisfied. Therefore, the NRC staff testing of charcoal mediums act to create a Criterion 1—Does Not Involve a Significant proposes to determine that the new or different accident than that Increase in the Probability or Consequences amendment request involves no previously analyzed. The existing criterion of an Accident Previously Evaluated significant hazards consideration. within the affected ANO–1 TSs is less The inclusion of additional actions within Local Public Document Room restrictive than that of ASTM D3803–1989 the ANO–2 TSs associated with the control location: Tomlinson Library, Arkansas standard and, therefore, is being proposed for room emergency ventilation and air Tech University, Russellville, Arkansas deletion. Testing criteria governing the conditioning systems during the handling of 72801. operability of charcoal mediums is not irradiated fuel does not require any physical Attorney for licensee: Nicholas S. considered an accident initiator of new, modification to plant components or systems. Reynolds, Esquire, Winston and Strawn, different, or previously analyzed accidents. Implementing the proposed actions act to The charcoal mediums act solely to reduce ensure the operability of the remaining 1400 L Street, NW., Washington, DC radioiodines released to the environment system, eliminate the reliance on automatic 20005–3502. during and following accident scenarios. actuation where applicable, and ensure that NRC Section Chief: Robert A. Gramm. Therefore, the proposed changes do not any active failure will be readily detected. Entergy Operations, Inc., Docket No. 50– create the possiblity of a new or different The proposed changes, therefore, act to 368, Arkansas Nuclear One, Unit No. 2, kind of accident from any previously ensure [that] the consequences of a fuel evaluated. handling accident are mitigated and have no Pope County, Arkansas Criterion 3—Does Not Involve a Significant impact on the probability [of] a fuel handling Date of amendment request: February Reduction in the Margin of Safety accident occurring. The proposed actions are 24, 2000. in addition to those currently required by the Description of amendment request: Testing of charcoal mediums to more ANO–2 TSs and, therefore, are more restrictive criteria acts to better ensure that The proposed amendment would revise restrictive. Technical Specification (TS) 4.4.11 on these mediums will perform their design Therefore, the proposed changes do not function during and following accidents that involve a significant increase in the reactor coolant system vent flow result in a release of radioiodines. No probability or consequences of any accident verification, TS 4.6.1.1.a on reduction in the margin to safety can be previously evaluated. containment penetration closure construed based on the new testing criteria. verification (non-automatic), and TS The charcoal mediums will continue to Criterion 2—Does Not Create the Possibility of a New or Different Kind of Accident from 4.6.3.1.2 on containment isolation valve remove radioiodines as originally designed actuation verification. These TS and approved by the NRC during and any Previously Evaluated following accidents involving radioactive The inclusion of additional actions within surveillances require testing to be release. the ANO–2 TSs associated with the control performed during Modes 5 and/or 6. Therefore, the proposed changes do not room emergency ventilation and air The proposed change will eliminate involve a significant reduction in the margin conditioning systems during the handling of unnecessary mode restrictions on these of safety. irradiated fuel does not require any physical surveillance requirements.

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Basis for proposed no significant activities in the absence of the irradiated fuel that contains sufficient fission hazards consideration determination: aforementioned mode restrictions proposed products to require operability of accident As required by 10 CFR 50.91(a), the for deletion. Therefore, the proposed changes mitigation systems to meet the accident licensee has provided its analysis of the are considered to be administrative in nature analysis assumptions. The alternative source and do not significantly affect the plant or term changes affect the definitions and the issue of no significant hazards personnel safety. The margin to safety specifications for the Control Room Fresh Air consideration, which is presented remains unchanged since the licensee System, MSIV [main steam isolation valve] below: currently is required to properly plan and leakage surveillance, Standby Gas Treatment Criterion 1—Does Not Involve a Significant execute surveillance tests, even within System surveillance, and revises a license Increase in the Probability or Consequences specific modes of operation. Other activities condition to increase the allowable control of an Accident Previously Evaluated presently ongoing during the currently room inleakage. The specifications affected Current regulation requires the licensee to specified operational modes could result in by the relaxation of the shutdown controls responsibly plan, schedule, and perform an unexpected or unforseen transient or include those for the Control Room HVAC testing of station equipment. Furthermore, condition if surveillance testing is not [heating, ventilation, and air conditioning] the philosophies of the RSTS [Revised properly planned and executed given the system, and the electrical AC [alternating Standard Technical Specifications] do not other activities in progress and current plant current] Sources, DC [direct current] Sources restrict surveillance performance to specific conditions. Since the responsibility of the and Distribution Systems during shutdown. modes of operation or other plant conditions. licensee in these matters remains unchanged The Commission has provided standards Deletion of the mode restrictions will not by the proposed changes, no significant for determining whether a no significant relinquish licensee responsibility from reduction in the margin to safety is evident. hazards consideration exists as stated in prudent planning, scheduling, and Therefore, the proposed changes do not 10CFR50.92(c). A proposed amendment to an performance of testing activities and may involve a significant reduction in the margin operating license involves a no significant provide the licensee lower-risk periods of of safety. hazards consideration if operation of the opportunity for test performance. Because of facility in accordance with the proposed this, the proposed changes are considered to The NRC staff has reviewed the amendment would not: (1) involve a be administrative in nature and do not licensee’s analysis and, based on this significant increase in the probability or significantly affect the plant or personnel review, it appears that the three consequences of an accident previously safety. Modes in which surveillances are standards of 10 CFR 50.92(c) are evaluated; or (2) create the possibility of a performed are not analyzed in association satisfied. Therefore, the NRC staff new or different kind of accident from any with accident probability or the proposes to determine that the accident previously evaluated; or (3) involve consequences of an accident. The proposed amendment request involves no a significant reduction in a margin of safety. Entergy Operations, Inc. has evaluated the changes reduce unnecessary restrictions on significant hazards consideration. the licensee and provide consistency with no significant hazards considerations in its the philosophies of the RSTS. Attorney for licensee: Nicholas S. request for a license amendment. In Therefore, the proposed changes do not Reynolds, Esquire, Winston and Strawn, accordance with 10CFR50.91(a), Entergy involve a significant increase in the 1400 L Street, NW., Washington, DC Operations, Inc. is providing the analysis of probability or consequences of any accident 20005–3502. the proposed amendment against the three previously evaluated. NRC Section Chief: Robert A. Gramm. standards in 10CFR50.92(c). A description of Criterion 2—Does Not Create the Possibility the no significant hazards considerations Entergy Operations, Inc., System Energy determination follows: of a New or Different Kind of Accident from Resources, Inc., South Mississippi any Previously Evaluated 1. The proposed changes do not Electric Power Association, and Entergy significantly increase the probability or The licensee will continue to be Mississippi, Inc., Docket No. 50–416, consequences of an accident previously accountable for proper and prudent planning, evaluated. scheduling, and performance of surveillance Grand Gulf Nuclear Station, Unit 1, Claiborne County, Mississippi The alternative source term does not affect activities in the absence of the the design or operation of the facility; rather, aforementioned mode restrictions proposed Date of amendment request: January once the occurrence of an accident has been for deletion. Therefore, the proposed changes 21, 2000. postulated the new source term is an input are considered to be administrative in nature Description of amendment request: to evaluate the consequences. The and do not significantly affect the plant or Entergy Operations, Inc. requests implementation of the alternative source personnel safety. The probability of a new or term has been evaluated in revisions to the different kind of accident being created revision of the Grand Gulf Nuclear Station licensing basis and Technical analyses of the limiting design basis remains unchanged since the licensee accidents at Grand Gulf Nuclear Station. currently is required to properly plan and Specifications to utilize the alternative Based on the results of these analyses, it has execute surveillance tests, even within accident source term described in been demonstrated that, even with the specific modes of operation. Other activities NUREG–1465. requested Technical Specification and presently ongoing during the currently Basis for proposed no significant Operating License changes, the dose specified operational modes could result in hazards consideration determination: consequences of these limiting events are an unexpected or unforseen transient or within the regulatory guidance currently condition if surveillance testing is not As required by 10 CFR 50.91(a), the proposed by the NRC [Nuclear Regulatory properly planned and executed given the licensee has provided its analysis of the Commission] for use with the alternative other activities in progress and current plant issue of no significant hazards source term. This guidance is presented in conditions. Since the responsibility of the consideration, which is presented NUREG–1465, in the draft rulemaking for licensee in these matters remains unchanged below: by the proposed changes, the possibility of a 10CFR50.67, and in the associated draft new or different kind of accident being This proposed amendment to the Grand Regulatory Guide DG–1081. created also remains unchanged. Gulf Nuclear Station (GGNS) Technical A new term to describe irradiated fuel is Therefore, the proposed changes do not Specifications (TS) revises those used to establish operational conditions create the possibility of a new or different specifications affected by the implementation where specific activities represent situations kind of accident from any previously of the alternative source term concepts in where significant radioactive releases can be evaluated. accordance with NUREG–1465. In addition, postulated. These operational conditions are based on the alternative source term, changes consistent with the design basis analysis. Criterion 3—Does Not Involve a Significant are proposed to selected specifications Because the equipment affected by the Reduction in the Margin of Safety associated with handling irradiated fuel in revised operational conditions is not The licensee will continue to be the primary or secondary containment and considered an initiator to any previously accountable for proper and prudent planning, CORE ALTERATIONS. Specifically, the analyzed accident, inoperability of the scheduling, and performance of surveillance proposal uses a new term to describe equipment cannot increase the probability of

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The 15.7.4 and General Design Criteria [GDC] 19. event scenarios. The dose consequences of following evaluation is provided for the three As noted above, with the alternative source these limiting events are within the categories of the significant hazards term implementation, the acceptance criteria acceptance criteria also found in the latest consideration standards: are also being revised. The results of the regulatory guidance. This guidance is 1. Does the change involve a significant revised Fuel Handling Accident demonstrate presented in NUREG–1465, in the approved increase in the probability or consequences that the dose consequences are within the rulemaking for 10CFR50.67, and in the of an accident previously evaluated? currently proposed NRC regulatory guidance. associated draft Regulatory Guide DG–1081. This change would require additional fuel This guidance is presented in NUREG–1465, The proposed changes continue to ensure oil to be stored in each of the Division 1, 2, in the draft rulemaking for 10CFR50.67, and that the doses at the exclusion area and low and 3 Diesel Generator Fuel Oil Storage in the associated draft Regulatory Guide DG– population zone boundaries as well as Tanks. The amount of diesel fuel required to 1081. control room, are within the corresponding be kept in the storage tanks, which has been Therefore, the proposed changes do not regulatory limit. In a similar way, the results determined by Calculation MC–Q1P75– significantly increase the probability or of the existing analyses demonstrated that the 90190 Revision 2 and Calculation MC– consequences of any previously evaluated dose consequences were within the Q1P81–90188 Revision 2, is well within the accident. applicable NRC-specified regulatory limit. maximum capacity of the Diesel Generator 2. The proposed changes would not create Specifically, the margin of safety for these Fuel Oil Storage Tanks. As stated in UFSAR the possibility of a new or different kind of accidents is considered to be that provided [Updated Final Safety Analysis Report] accident from any previous[ly] analyzed. by meeting the applicable regulatory limit, Section 9.5.4.3 (Safety Evaluation for the The alternative source term does not affect which, for most events, is conservatively set diesel fuel storage subsystem) ‘* * * the tank the design, functional performance, or below the 10CFR100 limit. With respect to level will be above the ‘‘seven-day capacity’’ operation of the facility or of any equipment the control room personnel doses, the margin required level and will be kept as near the within the facility. Similarly, it does not of safety is the difference between the top as practical.’’ Other fuel oil storage affect the design or operation of any 10CFR100 limits and the regulatory limit subsystem components, such as the transfer equipment or systems involved in the defined by 10CFR50, Appendix A, Criterion pumps, are similarly designed, as a mitigation of any accidents. The proposed 19 (GDC 19). minimum, for the storage tanks being filled changes to the Technical Specifications and Therefore, because the proposed changes to maximum capacity. The Diesel Generator the Operating License, while they revise continue to result in dose consequences Fuel Oil Storage Tanks continue to meet the certain performance requirements, do not within the applicable regulatory limits, they original design requirements as described in involve any physical modifications to the are considered to not result in a significant the UFSAR. The proposed change will plant. Therefore, the proposed changes reduction in a margin of safety. provide adequate fuel for diesel generator associated with the alternative source term Based on the above evaluation, operation operation at the Technical Specification do not create the possibility of a new or in accordance with the proposed amendment surveillance testing capacity for Division 1 different kind of accident from any involves no significant hazards and 2 Diesel Generators, 5740 KW, and the previous[ly] analyzed. considerations. nameplate rating for Division 3 Diesel The new term to describe irradiated fuel is Generator, 3300 KW, rather than the lower used to establish operational conditions The NRC staff has reviewed the post-LOCA [loss-of-coolant accident] load where specific activities represent situations licensee’s analysis and, based on this profiles previously assumed. Therefore, where significant radioactive releases can be review, it appears that the three increasing the quantity of fuel oil required to postulated. These operational conditions are standards of 10 CFR 50.92(c) are be maintained, will not increase the consistent with the design basis analyses. satisfied. Therefore, the NRC staff probability of the diesel generators becoming The relaxation of selected shut down controls proposes to determine that the an initiator for any previously evaluated has been modeled in revised analyses. The accident. Furthermore, since the proposed proposed changes do not introduce any new amendment request involves no change increases the fuel oil inventory it modes of plant operation and do not involve significant hazards consideration. should enhance the ability of the diesel physical modifications to the plant. Attorney for licensee: Nicholas S. generators to respond to an accident and as Therefore, the proposed changes related to Reynolds, Esquire, Winston and Strawn, such the change does not increase the shutdown controls based on the alternative 1400 L Street, NW., 12th Floor, Washington, consequences of any previously analyzed source term do not create the possibility of DC 20005–3502. accident. a new or different kind of accident from any NRC Section Chief: Robert A. Gramm. 2. Does the change create the possibility of previous[ly] analyzed. a new or different kind of accident from any Therefore, the proposed changes do not Entergy Operations, Inc., System Energy accident previously evaluated? create the possibility of a new or different Resources, Inc., South Mississippi Electric The Diesel Generator Fuel Oil subsystem kind of accident from any accident Power Association, and Entergy Mississippi, design and operation will not change except previously analyzed. Inc., Docket No. 50–416, Grand Gulf Nuclear for the incorporation of increased fuel oil 3. The proposed changes do not involve a Station, Unit 1, Claiborne County, inventory requirements. This proposed significant reduction in a margin of safety. Mississippi increase remains within the maximum The changes above are basically associated Date of amendment request: January 24, capacity of the Diesel Generator Fuel Oil with the implementation of a new licensing 2000. Storage Tanks. Existing analyses and basis for Grand Gulf Nuclear Station. Description of amendment request: Entergy evaluations, concerning the fuel oil storage Approval of the basis change from the Operations, Inc. requests revisions to the tanks, are not adversely impacted by this original source term in accordance with TID– Grand Gulf Nuclear Station Technical increase in the required fuel oil inventory. 14844 to the new alternative source term of Specifications which specify the minimum Other fuel oil storage subsystem components, NUREG–1465 is requested by this submittal. useable fuel oil inventories to be maintained such as the transfer pumps, are similarly The results of the accident analyses revised in the Division 1, 2, and 3 Diesel Generator designed, as a minimum, for the storage tanks in support of this submittal, and considering Fuel Oil Storage Tanks. being filled to maximum capacity. The the requested Technical Specification and Basis for proposed no significant hazards subsystem continues to meet the original Operating License changes, are subject to consideration determination: As required by design requirements. The proposed increased revised acceptance criteria. These analyses 10 CFR 50.91(a), the licensee has provided its fuel oil inventory cannot adversely affect any have been performed using conservative analysis of the issue of no significant hazards other equipment. Therefore, since the methodologies as outlined in the currently consideration, which is presented below: proposed change only increases the fuel oil

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Does this change involve a significant reviewed the proposed change and has The proposed change will have no adverse reduction in a margin of safety? concluded that it does not involve a effect on plant operation or equipment Existing Technical Specification 3.8.3 significant hazards consideration (SHC). The important to safety. The plant response to the bases state the Diesel Generator Fuel Oil basis for this conclusion is that the three design basis accidents will not change and Storage Tank minimum level is sufficient to criteria of 10 CFR 50.92(c) are not the accident mitigation equipment will operate the respective Diesel Generator for compromised. The proposed change does not continue to function as assumed in the seven days while supplying maximum post- involve a SHC because the change would not: design basis accident analysis. Therefore, LOCA demands. The proposed change 1. Involve a significant increase in the there will be no significant reduction in a increases the quantity of fuel oil required to probability or consequences of an accident margin of safety. be maintained in each of the Division 1, 2, previously evaluated. The proposed change does not alter the and 3 Diesel Generator Fuel Oil Storage The proposed change will allow plant design, function, or operation of the Tanks. The proposed change will provide operation to continue for an additional 12 equipment involved. The impact of the adequate fuel for diesel generator operation hours with the temperature of the UHS up to proposed change has been analyzed, and it ° at the Technical Specification surveillance 2 F above the Technical Specification limit has been determined it does not involve a ° testing capacity for Division 1 and 2 Diesel of 75 F. This increase in UHS temperature significant increase in the probability or Generators, 5740 KW, and the nameplate will not affect the normal operation of the consequences of an accident previously rating for Division 3 Diesel Generator, 3300 plant to the extent which would make any evaluated, does not create the possibility of KW, rather than the lower post-LOCA load accident more likely to occur. In addition, a new or different kind of accident from any profiles previously assumed. The amount of there exists adequate margin in the safety accident previously evaluated, and does not diesel fuel required to be kept in the storage systems and heat exchangers to assure the involve a significant reduction in a margin of tanks, which has been determined by safety functions are met at the higher safety. Therefore, NNECO has concluded the Calculation MC–Q1P75–90190 Revision 2 temperature. An evaluation has confirmed proposed change does not involve a SHC. that safe shutdown will be achieved and and Calculation MC–Q1P81–90188 Revision The NRC staff has reviewed the 2, is well within the maximum capacity of maintained for a loss of coolant accident the Diesel Generator Fuel Oil Storage Tanks. (LOCA) with a loss of normal power (LNP) licensee’s analysis and, based on this Therefore, since the proposed change and a single active failure with an UHS water review, it appears that the three ° increases the fuel oil inventory it should temperature as high as 77 F. standards of 10 CFR 50.92(c) are enhance the ability of the diesel generators to The proposed change will have no adverse satisfied. Therefore, the NRC staff respond to an accident and as such the effect on plant operation, or the availability proposes to determine that the change does not decrease any margin of or operation of any accident mitigation amendment request involves no safety previously assumed. equipment. The plant response to the design significant hazards consideration. basis accidents will not change. In addition, The NRC staff has reviewed the the proposed change can not cause an Attorney for licensee: Lillian M. licensee’s analysis and, based on this accident. Therefore, there will be no Cuoco, Esq., Senior Nuclear Counsel, review, it appears that the three significant increase in the probability or Northeast Utilities Service Company, standards of 10 CFR 50.92(c) are consequences of an accident previously P.O. Box 270, Hartford, Connecticut. satisfied. Therefore, the NRC staff evaluated. NRC Section Chief: James W. Clifford. 2. Create the possibility of a new or proposes to determine that the PECO Energy Company, Docket Nos. amendment request involves no different kind of accident from any accident previously evaluated. 50–352 and 50–353, Limerick significant hazards consideration. Generating Station, Units 1 and 2, Attorney for licensee: Nicholas S. The proposed change will allow plant operation to continue for an additional 12 Montgomery County, Pennsylvania Reynolds, Esquire, Winston and Strawn, hours with the temperature of the UHS up to Date of amendment request: May 26, 1400 L Street, NW., 12th Floor, 2°F above the Technical Specification limit Washington, DC 20005–3502. of 75°F. This will not alter the plant 1999. NRC Section Chief: Robert A. Gramm. configuration (no new or different type of Description of amendment request: equipment will be installed) or require any The proposed amendments would Northeast Nuclear Energy Company, et new or unusual operator actions. The relocate Technical Specification (TS) al., Docket No. 50–336, Millstone proposed change will not alter the way any Surveillance Requirement 4.1.3.5.b, Nuclear Power Station, Unit No. 2, New structure, system or component functions regarding the performance of channel London County, Connecticut and will not significantly alter the manner in functional test and channel calibration Date of amendment request: January which the plant is operated. There will be no of certain control rod scram 27, 2000. adverse effect on plant operation or accident accumulator instrumentation, to the Description of amendment request: mitigation equipment. The proposed change Updated Final Safety Analysis Report does not introduce any new failure modes. The proposed amendment would allow Also, the response of the plant and the and would revise TS 3.1.3.5 to allow an operation of the facility for a period of operators following these accidents is alternate method for verifying whether a up to 12 hours with the temperature of unaffected by the change. In addition, the control rod drive pump is operating. the ultimate heat sink (UHS) between 75 UHS is not an accident initiator. Therefore, Basis for proposed no significant and 77°F, provided water temperature is the proposed change will not create the hazards consideration determination: verified below 77°F at least once per possibility of a new or different kind of As required by 10 CFR 50.91(a), the hour. Currently the temperature limit is accident from any previously analyzed. licensee has provided its analysis of the 75°F and is verified at least once per 6 3. Involve a significant reduction in a issue of no significant hazards hours when the temperature is above margin of safety. consideration, which is presented ° ° The proposed change will allow plant 70 F, or once per 24 hours below 70 F. operation to continue for an additional 12 below: Basis for proposed no significant hours with the temperature of the UHS up to 1. The proposed Technical Specifications hazards consideration determination: 2°F above the Technical Specification limit (TS) changes do not involve a significant As required by 10 CFR 50.91(a), the of 75°F. An evaluation has been performed increase in the probability or consequences licensee has provided its analysis of the which demonstrates that the safety systems of an accident previously evaluated.

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The first proposed change relocates control 2. The proposed TS changes do not create Attorney for licensee: J. W. Durham, rod drive (CRD) instrumentation the possibility of a new or different kind of Sr., Esquire, Sr. V.P. and General requirements from the TS to the UFSAR and accident from any accident previously Counsel, PECO Energy Company, 2301 plant procedures. The second proposed evaluated. Market Street, Philadelphia, PA 19101. change adds an alternate method for Neither the mechanism for initiating nor NRC Section Chief: James W. Clifford. verifying operation of a control rod drive for carrying out a scram is modified by either pump in the TS action statement. of these proposed changes. These proposed Power Authority of the State of New Regarding the first proposed change, changes do not: York, Docket No. 50–333, James A. operability of the accumulators is determined (1) Create a means by which the scram FitzPatrick Nuclear Power Plant, by verifying that the pressure in each function could be impeded or prevented. Oswego County, New York accumulator is greater than or equal to 955 (2) Involve a physical plant alteration or psig. TS 4.1.3.5.a requires weekly verification change the methods governing normal plant Date of amendment request: February of accumulator pressure. The local pressure operation. 3, 2000. indicator for each accumulator is the normal (3) Impose or eliminate any requirements Description of amendment request: means of satisfying this surveillance. This or change the controls for maintaining the The proposed amendment would proposed change does not affect or alter the requirements. change the Technical Specifications requirements associated with this There are no other malfunctions that need instrumentation. If the local pressure (TSs) by revising the reactor water level to be considered since failure of a significant setpoint for the Anticipated Transient indicator is not functioning or pressure is number of control rods to scram is analyzed less than 955 psig, the accumulator will still in Section 15.8 of the UFSAR. This is the Without Scram Recirculation Pump Trip be declared inoperable. bounding analysis for multiple control rod (ATWS–RPT) function and the Alternate Operability of the accumulator pressure or malfunctions or severe degradation of control Rod Injection (ARI) functions (Table water level alarm and indication function rod scram performance. This event is 3.2–7). provided by the Reactor Manual Control mitigated by safety systems not directly Basis for proposed no significant System (RMCS) is not critical to the ability related to the CRD system including the hazards consideration determination: to insert control rods because: scram accumulators. As required by 10 CFR 50.91(a), the (1) The rods can be inserted with normal Therefore, these proposed changes do not licensee has provided its analysis of the charging water pressure if the accumulator is create the possibility of a new or different inoperable; issue of no significant hazards kind of accident from any accident consideration, which is presented (2) A controlled shutdown or scram would previously evaluated. occur before the accumulator would lose its 3. The proposed TS changes do not involve below: full capability to insert the control rod, if it a significant reduction in a margin of safety. Operation of the FitzPatrick plant in is found that no control rod drive pumps are The first proposed change relocates CRD accordance with the proposed amendment operating according to existing procedural instrumentation requirements from TS to the would not involve a significant hazards and TS controls placed on the plant; and UFSAR and plant procedures. The proposed consideration as defined in 10 CFR 50.92, (3) The subject instruments’ alarm and change will not reduce a margin of safety, since it would not: indication function are part of routine because it has no impact on any safety 1. Involve a significant increase in the operational monitoring and are not analysis. * * * [Therefore, the proposed probability or consequences of an accident considered in the plant safety analysis. change does not involve a significant previously evaluated. [Therefore, the removal of the accumulator reduction in a margin of safety.] The proposed TS change deals only with pressure or level indication does not impact The second proposed change adds an an instrumentation setpoint which initiates the consequences or probability of an alternate method for verifying operation of a the ATWS–RPT/ARI function. The system is accident previously evaluated. The control rod drive pump in the TS action intended to provide a mitigation function operational monitoring of the accumulator statement. This proposed change does not during a postulated ATWS event and does alarms and indication system affords reduce a margin of safety because the not provide any other plant control function. operating personnel the status of system proposed change does not: However, if the ATWS–RPT/ARI system were condition and the opportunity to initiate (1) Affect the maximum allowable control to fail, the result would be a trip of the appropriate actions if deemed necessary.] rod scram times, recirculation pumps, or reactor scram, both The second proposed change simply adds (2) Change the maximum allowable of which are currently evaluated. The design an alternate method for verifying operation of number or minimum separation of inoperable of the system includes a one-out-of-two-twice a control rod drive pump. This check control rods, or logic, which ensures that a single failure in provides an equivalent method of verifying (3) Modify any of the instrument setpoints the system cannot cause or inhibit the that inoperable control rod accumulators or functions. ATWS–RPT/ARI function. Therefore, the were not caused by a control rod drive pump The proposed change will either maintain probability of an inadvertent recirculation trip. In addition: the present margin of safety or increase it, by pump trip or inadvertent reactor scram is not (1) The assumed control rod reactivity reducing the need for unnecessary challenges changed from the event as currently insertion rate is not changed; to the Reactor Protection System (RPS) and described in the JAFNPP UFSAR [James A. (2) The maximum number of inoperable resulting plant shutdown, while still FitzPatrick Nuclear Power Plant Updated accumulators and control rods is not maintaining the capability to complete a Final Safety Analysis Report]. changed; reactor scram. FitzPatrick specific analyses were (3) The TS actions to be taken in the event Therefore, these proposed TS changes do performed by General Electric Company with that a control rod drive pump is not not involve a significant reduction in a NRC approved methods for postulated ATWS operating remain unchanged; and margin of safety. events (Reference 1 [‘‘James A. FitzPatrick (4) The instrumentation for accumulator Nuclear Power Plant Anticipated Transient leakage a pressure detection will continue to The NRC staff has reviewed the Without Scram Analysis, for Recirculation be maintained and calibrated. licensee’s analysis and, based on this Pump Trip Setpoint Changes,’’ General A RMCS failure does not change the failure review, it appears that the three Electric Company, NEDC–32616P, July 18, modes or the reliability of the control rod standards of 10 CFR 50.92(c) are 1996, Previously Docketed with NRC]). The function as described and evaluated in the satisfied. Therefore, the NRC staff specific events evaluated include the Main UFSAR. The CRD system will continue to be proposes to determine that the Steamline Isolation Valve closure event, available to safely shutdown the plant as amendment request involves no Inadvertent Opening of a Relief Valve, and described and evaluated in the UFSAR. the Loss of Feedwater. For these events, the Therefore, these proposed changes do not significant hazards consideration. following acceptance criteria were involve a significant increase in the Local Public Document Room established: probability or consequences of an accident location: Pottstown Public Library, 500 Peak Reactor Pressure (maximum 1 SRV previously evaluated. High Street, Pottstown, PA 19464. out of service)—< 1500 psig

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Peak Suppression Pool Temperature—< for any reduction in the margin of safety basis accident initiators. The operation of 190°F established in the JAFNPP UFSAR for the mechanical vacuum pump at power levels ≤ Fuel Remains Cooled—Coolant Level > primary fission product barriers. 5% will not increase the probability of TAF [Top of Active Fuel] The NRC staff has reviewed the occurrence of a main condenser air removal The analyses demonstrate that all criteria system leak or failure of the line leading to were adequately met with the proposed TS licensee’s analysis and, based on this the steam jet air ejector (SJAE) near the main change implemented, further ensuring no review, it appears that the three condenser. Additionally, the design and increase in the consequences of the standards of 10 CFR 50.92(c) are operation of the condenser off-gas system is postulated events. satisfied. Therefore, the NRC staff not impacted. Moreover, MVP operation will The basis for changing the ARI initiation proposes to determine that the not increase the probability of occurrence of setpoint on reactor level to be consistent with amendment request involves no a CRDA or any other design basis accident. that proposed for the ATWS RPT is significant hazards consideration. Consequently, this proposal does not documented in Reference 2 [JAF–ICD–NBI– Attorney for licensee: Mr. David E. increase the probability of an accident ;03998, Rev. 0—Alternate Rod Insertion Blabey, 1633 Broadway, New York, New previously evaluated. Setpoint (an internal FitzPatrick interface The engineering calculation performed to document)]. The ARI initiation point is not York 10019. assess the impact of the use of the MVPs specified in the Technical Specification. NRC Section Chief: Marsha demonstrated that the radiological 2. Create the possibility of a new or Gamberoni, Acting. consequences of a CRDA coincident with different kind of accident from any accident Public Service Electric & Gas Company, MVP operation increase but remain well previously evaluated. within the 10CFR100 guidelines and meet The proposed TS change deals only with Docket No. 50–354, Hope Creek SRP [Standard Review Plan] Section 15.4.9, a reactor water level instrumentation Generating Station, Salem County, New Appendix A, acceptance criteria. setpoint, which initiates the ATWS–RPT/ARI Jersey Additionally, the calculation demonstrated function. The existing level transmitters and Date of amendment request: February that the radiological consequences of a CRDA wiring will be used, and new analog trip 24, 2000. coincident with MVP operation are within units will be incorporated which are Description of amendment request: the GDC [General Design Criterion] 19 identical to existing low-low reactor water The proposed amendment would guidelines for control room personnel and level trip units currently shared with HPCI plant operators and remain bounded by the [High Pressure Coolant Injection] and RCIC approve a revision to the Hope Creek loss of coolant accident analysis for on-site [Reactor Core Isolation Cooling] initiation. Generating Station Updated Final Safety personnel. Therefore, although the proposal These new analog trip units are of a different Analysis Report (UFSAR) to reflect the does increase the consequences of a CRDA, design (General Electric) than those used in use of the Mechanical Vacuum Pumps the proposal does not significantly increase the Reactor Protection System (Rosemount) (MVPs) to evacuate the condenser the consequences of an accident previously and therefore, the diversity requirement of 10 during plant startup at power levels less evaluated. CFR 50.62 (c)(3) remain[s] satisfied. This than or equal to 5%. These revisions are 2. The proposed change does not create the allows the HPCI and RCIC setpoints to required to make the UFSAR accident possibility of a new or different kind of remain the same while only lowering the analyses associated with a Control Rod accident from any accident previously ATWS–RPT/ARI setpoint. The sensing, logic evaluated. and actuation of the ATWS–RPT/ARI design Drop Accident (CRDA) consistent with The proposal involves crediting manual is not modified. This includes the use of the actual plant operation. Public Service action to trip the MVPs; however, PSE&G has existing one-out-of-two-twice logic, which Electric and Gas Company (PSE&G) has evaluated this operator action against the ensures that a single failure in the circuit will performed an engineering calculation criteria in NRC Information Notice 97–78 and not cause or inhibit the ATWS–RPT/ARI that demonstrates that there is an has concluded that adequate controls are in function. There are no new signals required increase in the radiological place to ensure that the subject manual as input, and the trip function is consequences of a CRDA coincident action is taken. In addition, the proposal does accomplished with the existing RPT breakers with MVP operation. Nuclear not change monitor setpoints, affect and existing scram pilot air header solenoid Regulatory Commission (NRC) approval equipment qualification, or otherwise create valves. The system does not provide input to an accident initiator not previously any other plant function. The plant will not of the proposed UFSAR changes is considered. Consequently, this proposal does operate in any new mode nor are there any required, in accordance with Title 10 of not create the possibility of an accident of a new operational requirements as a result of the Code of Federal Regulations (10 different type from any previously evaluated. the proposed change. Therefore, it is not CFR) Section 50.59, since these changes 3. The proposed change does not involve considered possible for the ATWS–RPT/ARI involve an unreviewed safety question. a significant reduction in a margin of safety. system to fail in any new or different way Basis for proposed no significant The Condenser Air Removal System has no from those events currently evaluated in the hazards consideration determination: safety-related function. Failure of the system JAFNPP UFSAR. As required by 10 CFR 50.91(a), the does not jeopardize the function of any 3. Involve a significant reduction in a licensee has provided its analysis of the safety-related system or component or margin of safety. issue of no significant hazards prevent a safe shutdown of the plant. The ATWS–RPT/ARI function protects the The radiological activity evaluated in this fuel, reactor and containment from failure consideration, which is presented proposal does not result in scenarios that during a postulated ATWS event. The fuel below: could impact 10 CFR 50 Appendix I, 10 CFR cladding barrier is protected via adequate 1. The proposed changes do not involve a 20, or 40 CFR 190 release criteria. Post-scram cooling, provided by ensuring that the core significant increase in the probability or shutdown or startup condition MVP remains covered throughout the entire event. consequences of an accident previously operation in accordance with plant operating The reactor coolant system boundary is evaluated. procedures will not degrade the original protected by ensuring compliance with the The Condenser Air Removal System has no design for the Condenser Air Removal ASME [American Society of Mechanical safety-related function and its failure does System. Engineers] emergency class pressure limit of not jeopardize the function of any safety- An engineering calculation was prepared 120% of design pressure. The containment is related system or component or prevent a that demonstrated that the radiological protected by ensuring the suppression pool safe shutdown of the plant. Neither the consequences of a CRDA coincident with temperature limits are met. MVPs, nor other components associated with MVP operation remain well within the 10 FitzPatrick specific ATWS analyses were the Condenser Air Removal, Gaseous CFR 100 guidelines and that the performed by postulating events that Radwaste Off-Gas, Process Radiation consequences meet SRP Section 15.4.9, challenge each of these limits (Reference 1). Monitoring, or Turbine Building HVAC Appendix A, acceptance criteria. With the proposed TS change considered, [Heating, Ventilation, and Air Conditioning] Additionally, the engineering calculation each of these limits were met without a need systems or the South Plant Vent are design demonstrated that the radiological

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The proposed LPPT personnel. refueling, rather than performance of rod program option relies entirely on Since no design bases are degraded, the worth measurements of all eight CEA groups conventional boration and dilution rod worth Technical Specifications operating limits, each refueling. Thus, the LPPT option will measurement test methods which have been that provide sufficient operating range such result in a reduction in the number of plant industry standards. The methodology used to that the acceptance limits are not exceeded manipulations required for LPPT. Inverse measure IBW, if performed, does not during plant operations and analyzed Boron Worth (IBW) is not required in the introduce any new evolutions during LPPT transients, are not [ ] affected. Since the proposed LPPT program option, but it may be and cannot create a new or different type of acceptance limits are not exceeded, determined during the performance of a accident. implementation of this proposal does not boration or dilution, which is already a part Therefore, the proposed LPPT program reduce the margin of safety as described in of the present LPPT program. The option does not create the possibility of a the basis for any Technical Specifications. manipulations which will be performed are new or different kind of accident from any a subset of the evolutions which are accident previously evaluated. The NRC staff has reviewed the performed in the existing test sequence. (3) Does this amendment request involve a licensee’s analysis and, based on this Therefore, the LPPT testing option does not significant reduction in a margin of safety? review, it appears that the three carry any increased risk of any accident No. The proposed LPPT program option standards of 10 CFR 50.92(c) are evaluated in Chapter 15 of the Updated Final fully achieves objectives of the reload test Safety Analysis Report (UFSAR). Since the program by validating fuel fabrication, core satisfied. Therefore, the NRC staff reassembly, CEA worths, mechanical proposes to determine that the number and duration of manipulations are reduced, there would actually be a small integrity and reliability, performance of amendment request involves no reduction in accident potential. physics design codes and consistency with significant hazards consideration. The proposed test program option will not design and safety analysis expectations with Attorney for licensee: Jeffrie J. Keenan, compromise the technical objectives of the the same effectiveness as is achieved in the Esquire, Nuclear Business Unit—N21, LPPT program. Fuel fabrication, core and current program. As a result, all assumptions reactor internals reassembly, CEA worths, made in support of UFSAR Chapter 15 Safety P.O. Box 236, Hancocks Bridge, NJ Analyses regarding CEA performance remain 08038. NRC Section Chief: James W. mechanical integrity and reliability, performance of core physics design codes valid. Clifford. The effectiveness of the SONGS 2 & 3 and consistency with design and safety Reload Test program, including LPPT and Southern California Edison Company, et analysis expectations will remain validated Power Ascension Testing, has been evaluated with the same effectiveness as is achieved in al., Docket Nos. 50–361 and 50–362, and shown to be uncompromised by the the current program. In addition, the reduced San Onofre Nuclear Generating Station, proposed LPPT option. Specific testing Units 2 and 3, San Diego County, duration of operation in the LPPT Special requirements imposed by the Nuclear California Test Exception of the Technical Regulatory Commission are captured in Specifications has a positive impact on Technical Specification Surveillance Date of amendment requests: nuclear safety. Requirements. The proposed LPPT program February 23, 2000 (PCN 508). Therefore, the proposed LPPT program option is fully compliant with existing Description of amendment requests: option does not involve a significant increase Technical Specification Surveillance in the probability of an accident previously Requirements and validates the core physics The amendment application is a request evaluated. to allow an option regarding the models regarding core performance, The proposed test program option will reactivity control and proper core reassembly methodology for measuring the eliminate CEA exchange measurements and to an extent equivalent to that of the present reactivity worth of control element determine CEA worth by dilution/boration program. assembly (CEA) groups for San Onofre measurements. Measurement of CEA worth The proposed LPPT program option is also Nuclear Generating Station (SONGS) by the dilution/boration methods achieves consistent with the recently modified ANSI/ Units 2 and 3 during low-power physics typically higher quality results than the CEA ANS 19.6.1–1997 standard for Pressurized testing following a refueling. The Exchange method. Water Reactor reload testing, with the proposed option involves measuring the The proposed LPPT program option does exception of the requirement and not include the requirement to measure worth of approximately three-fourths of methodology to determine IBW. The ANSI/ inverse boron worth. However, a measured ANS standard was developed with the full-length CEA groups each initial critical boron concentration and participation from industry and NRC refueling cycle rather than the present measured CEA group worths that match representatives and represents an expert methodology, which measures the predicted values within acceptance criteria panel assessment of what is appropriate for worth of all full-length CEA groups each are sufficient to verify adequate core physics an LPPT program. A measured initial critical refueling cycle. Measured CEA groups modeling without a separate IBW boron concentration and measured CEA would be rotated such that each full- measurement. group worths that match predicted values length group would be measured at least Since the proposed test sequence option within acceptance criteria are sufficient to verify adequate core physics modeling, and every other refueling. The licensee has continues to ensure that core operation and reactivity control are consistent with design infer that the IBW value is within standard determined this change to involve an expectations, the proposed LPPT option will acceptance critieria, without a separate IBW unreviewed safety question. not involve a significant increase in the measurement. Basis for proposed no significant consequences of an accident previously Therefore, the proposed LPPT program hazards consideration determination: evaluated. option does not involve a significant As required by 10 CFR 50.91(a), the Therefore, the proposed LPPT program reduction in a margin of safety. licensee has provided its analysis of the option does not involve a significant increase The NRC staff has reviewed the issue of no significant hazards in the probability or consequences of an licensee’s analysis and, based on this consideration, which is presented accident previously evaluated. review, it appears that the three (2) Does the amendment request create the below: possibility of a new or different kind of standards of 10 CFR 50.92(c) are (1) Does the proposed amendment involve accident from any accident previously satisfied. Therefore, the NRC staff a significant increase in the probability or evaluated? proposes to determine that the consequences of an accident previously No. The proposed LPPT program option amendment requests involve no evaluated? does not create any plant condition or significant hazards consideration.

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Attorney for licensee: Douglas K. relays will not be significantly affected by the significant hazard as defined by the criteria Porter, Esquire, Southern California decreased surveillance frequency. set forth in 10 CFR 50.92 is shown in the Edison Company, 2244 Walnut Grove Therefore, the proposed changes do not following discussions addressed to each Avenue, Rosemead, California 91770. involve a significant reduction in a margin of criterion: safety. (1) Does the change involve a significant NRC Section Chief: Stephen Dembek. increase in the probability or consequences The NRC staff has reviewed the of an accident previously evaluated? Southern Nuclear Operating Company, licensee’s analysis and, based on this Inc., et al., Docket Nos. 50–424 and 50– During the limiting design-basis steam- review, it appears that the three line-break (SLB) event, South Texas Project 425, Vogtle Electric Generating Plant, standards of 10 CFR 50.92(c) are (STP) Unit 2 steam generator tube burst Units 1 and 2, Burke County, Georgia satisfied. Therefore, the NRC staff criteria are inherently satisfied for marginally Date of amendment request: August proposes to determine that the degraded (primarily axially-oriented ODSCC amendment request involves no [outer diameter stress corrosion cracking]) 24, 1999, as supplemented on December tube spans at certain tube support plate (TSP) 29, 1999. significant hazards consideration. Attorney for licensee: Mr. Arthur H. intersections. Description of amendment request: Steam generator tubes pass through holes The proposed amendments would Domby, Troutman Sanders, drilled in the TSP. The inside diameter (ID) revise the Technical Specifications (TS) NationsBank Plaza, Suite 5200, 600 of the drilled holes closely approximates the 3.3.2 ‘‘Engineered Safety Feature Peachtree Street, NE., Atlanta, Georgia outside diameter (OD) of the tubes. Actuation System (ESFAS) 30308–2216. Generally, the TSP precludes those tube Instrumentation’’ to relax the slave relay NRC Section Chief: Richard L. Emch, spans within the drilled holes from Jr. deforming beyond the diameters of the test frequency from quarterly to a drilled holes, thus, precluding tube burst in refueling frequency. STP Nuclear Operating Company, the restrained regions. However, design basis Basis for proposed no significant Docket No. 50–499, South Texas Project, SLB events may vertically displace a TSP, hazards consideration determination: Unit 2, Matagorda County, Texas removing its support from the tube spans As required by 10 CFR 50.91(a), the passing through it. For TSP C through M, Date of amendment request: February licensee has provided its analysis of the maximum displacement during a postulated 21, 2000. SLB event is less than 0.15 inch. Because issue of no significant hazards Description of amendment request: consideration, which is presented TSP C through M remain essentially STP Nuclear Operating Company stationary during all conditions, tube spans below: proposes to amend the South Texas included within the drilled holes are 1. Does the change involve a significant Project (STP), Unit 2 technical restrained during the limiting SLB event. increase in the probability or consequences specifications (TS) so that steam Thus, the tube burst margin for intersections of an accident previously evaluated? generator tube eddy-current inspection of tube hot-legs and TSP C through M is The results of WCAP–13878 demonstrate indications of less than or equal to 3.0 independent of voltage related growth rates that slave relays are highly reliable. WCAP– and the proposed 3-volt ARC [alternate repair 13878 also provides guidance to assure that volts can be left in service if found at criteria] is compliant with RG [Regulatory slave relays remain highly reliable. The aging intersections of tube hot-leg tube- Guide] 1.121 [Bases for Plugging Degraded assessment concludes that the age/ support-plates C through M (3.0-volt PWR Steam Generator Tubes] criteria. temperature-related degradation of all ND alternate repair criteria). The new Given a TSP displacement of < 0.15 inch, relays, and NE relays produced after 1992, is alternate repair criteria would apply tube hot-leg spans enclosed within TSP C sufficiently slow such that a refueling only until the Unit 2 Model E steam through M have a negligible tube burst ¥ frequency surveillance interval will not generators are replaced during the probability of less than 10 10 for a single significantly increase the probability of slave outage currently scheduled to tube. This is eight orders of magnitude less ¥2 relay failures. Finally, the evaluation of the commence in fall of 2002. STP Nuclear than the 10 probability-of-burst criterion auxiliary relays actuated during slave relay specified by GL [Generic Letter] 95–05 testing has concluded that based on the tests Operating Company also proposes to [Voltage-Based Repair Criteria for of the auxiliary relays performed during amend the STP, Unit 2 TS to make an Westinghouse Steam Generator Tubes other equipment testing, reasonable editorial correction to Note 1 and Note Affected by Outside Diameter Stress assurance is provided that failures will be 2, on page 3/4–16a to align the notes Corrosion Cracking] and represents negligible identified if the associated slave relays are with the preceding paragraph. STP axial tube burst probabilities for tube hot-leg tested on a refueling frequency. Nuclear Operating Company also spans intersecting TSP C through M. Thus, Therefore, the proposed changes do not provided, for information only, changes repair limits to preclude burst are not needed involve a significant increase in the to the Bases for TS 3/4.4.5 to provide and tube repair limits may be based primarily probability or consequences of an accident the structural margins and on limiting leakage to acceptable levels previously evaluated. during accident conditions. 2. Does the change create the possibility of Westinghouse topical report references Cracks that include cellular corrosion may a new or different kind of accident from any used as the bases for the use of the 3.0- yield to axial loads, resulting in tensile accident previously evaluated? volt alternate repair criteria. tearing of the tube at that location. A tensile The proposed changes do not alter the Basis for proposed no significant load requirement to prevent this establishes performance of the ESFAS mitigation hazards consideration determination: a structural limit for the tube expansion systems assumed in the plant safety analysis. As required by 10 CFR 50.91(a), the based plugging criterion. In order to establish Changing the interval for periodically licensee has provided its analysis of the a lower bound for the structural limit, tensile verifying ESFAS slave relays (assuring issue of no significant hazards tests were used to measure the force required equipment operability) will not create any consideration, which is presented to separate a tube that exhibits cellular new accident initiators or scenarios. corrosion. Additionally, pulled tubes with Therefore, the proposed changes do not below: cellular and/or inter-granular attack (IGA) create the possibility of a new or different In accordance with the criteria set forth in tube wall degradation were evaluated and the kind of accident from any accident 10 CFR 50.92, the STP Nuclear Operating tensile strength of the tube conservatively previously evaluated for VEGP. Company (STPNOC) has evaluated these calculated from the remaining non-corroded 3. Does the change involve a significant proposed Technical Specification changes cross-section of the tube. This calculation reduction in a margin of safety? and determined they do not represent a assumes that the degraded portions The proposed changes do not affect the significant hazards consideration. contribute nothing to the axial load carrying total ESFAS response assumed in the safety Conformance of the proposed amendment to ability of the tube. Data from these tests analysis since the reliability of the slave the standards for a determination of no shows that circumferential cracks exhibiting

VerDate 202000 18:02 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00088 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15387 bobbin-coil-probe-indication-voltages greater AE–000228, Response to NRC Request for confirmed to allow no more than the than 35 volts require tube-pressure- Additional Information related to STP Unit 2 acceptable primary-to-secondary leakage rate differentials well above the operating limit of Amendment No. 83]). STPNOC TS impose a during all plant conditions and not adversely 3-times-normal differential pressure in order normal leak rate limit of 150 gpd (0.1 gpm) affect radiological dose consequences. For to produce circumferential ruptures (i.e., per steam generator to minimize the potential the limiting SLB event, STPNOC will axial separation at the plane of the crack). for excessive leakage during all plant calculate leak rates as free-span leakage for This proposal specifies a structural limit of conditions. The 150 gpd limit provides 17 volts (safety factor of 2) to ensure added margin to accommodate contingent ODSCC indications at tube and TSP conservative results for repairs at leakage should a stress corrosion crack grow intersections. The calculations will use GL intersections of tubes with TSP C through M. at a greater than expected rate or extend 95–05 leak rate methods with an additional GL 95–05 states that licensees must outside the TSP. Leakage trending consistent component for potentially overpressurized perform SLB leak rate and tube burst with EPRI Report TR–04788, ‘‘PWR Primary- indications [discussed in detail in the Safety probability analyses before returning to to-Secondary Leak Guidelines’’ has been Evaluation section of the licensee’s February power from outages during which they established for South Texas Project Unit 2. 21, 2000, application under the heading Since steam generator tube integrity will perform steam generator inspections. ‘‘SLB Leak Rate and Tube Burst Probability meet GL 95–05 requirements and be Licensees must include the results in a report Considerations’’]. to the NRC within 90 days after restart. If an confirmed through in-service inspection and Inspections conducted in accordance with analysis reveals that leak-rate or burst- primary-to-secondary leakage monitoring, the probability exceeds limits, the licensee must proposed license amendment does not create RG 1.83, Rev. 1 [In Service Inspection of report it to the NRC and assess the safety the possibility of a new or different kind of Pressurized Water Reactor Steam Generator significance of this finding. Model E steam accident from any accident previously Tubes], using 3-volt ARC for intersections of generator SLB leak rates are calculated for evaluated. tube hot-legs with TSP C through M, and indications found at intersections of tube hot- (3) Does this change involve a significant using 1-volt ARC at remaining hot-leg and legs and TSP. Both SLB leak rate and tube reduction in a margin of safety? cold-leg intersections will be supplemented RG 1.121 describes a method for meeting burst probability are calculated for tube hot- by: GDC 14, 15, 31, and 32 by reducing the leg intersections with FDB [flow distribution (1) enhanced eddy current inspection baffles], hot-leg intersections with TSP N probability or consequences of steam- generator tube-rupture through application of procedures to achieve consistency in voltage through R, and indications found at normalization, intersections of tube cold-legs with any TSP. criteria for removing degraded tubes from (2) eddy current inspection of 100% of It has been established that the design basis service. These criteria set limits of main SLB outside of containment and degradation for steam generator tubing tubes found, using inspection of a 20% tube through in-service inspection. Analyses show upstream of the MSIV [main steam isolation sample, to have ODSCC at intersections with that tube integrity will remain consistent valves] produces the limiting radiological TSP, and with the criteria of Regulatory Guide 1.121 consequence from any tube leakage that may (3) a required RPC [rotating pancake coil] after implementation of the proposed 3-volt be postulated to exist at the initiation of an inspection of the larger indications to ARC. Even under the worst case ODSCC accident. With use of 3-volt ARC, STPNOC occurrence at TSP elevations, 3-volt ARC will confirm that the principal degradation [STP Nuclear Operating Company] will not cause or significantly increase [the] mechanism continues to be ODSCC. calculate the maximum primary-to-secondary probability of a steam-generator tube-rupture Plugging steam generator tubes reduces leakage for the last day of the coming steam event. RCS flow margin. As previously noted, generator service-cycle and use this value to In addressing combined LOCA [loss-of- increasing repair limits for indications found calculate the radiological consequence of the coolant accident] + SSE [safe-shutdown at TSP intersections will reduce the number limiting SLB event. This methodology will earthquake] effects on steam generator of tubes that must be plugged. Thus, 3-volt ensure that site boundary doses for this components as required by GDC 2, analysis accident remain within an acceptable ARC will conserve RCS flow margin, has shown that tube collapse may occur in preserving operational and safety benefits fraction of the 10 CFR 100 guidelines and certain regions of the steam generators of that would otherwise be reduced by that doses to the control room operators some plants. This collapse is caused by TSP remain within GDC 19 [10 CFR Part 50, plastic deformation in the region of the TSP unnecessary plugging. Appendix A, General Design Criterion] wedge supports. Plastic deformation occurs Therefore, the proposed license limits. when TSP experience large lateral loads amendment does not result in a significant Based on the above, STPNOC concludes concentrated at wedge support points on the increase in dose consequences represented in that operation of South Texas Project Unit 2 periphery of a TSP undergoing combined the current licensing basis, and does not in accordance with the proposed license loading effects of a LOCA rarefaction wave involve a significant reduction in margin of amendment does not involve a significant and SSE. Deformation impinges on TSP safety. increase in the probability or consequences apertures through which tubes pass, of an accident previously evaluated. deflecting tube walls inward. The resulting The NRC staff has reviewed the (2) Does the change create the possibility pressure differential across deformed tube licensee’s analysis and, based on this of a new or different kind of accident from walls may cause some tubes to collapse. review, it appears that the standards of any accident previously evaluated? There are two issues associated with steam 10 CFR 50.92(c) are satisfied. The staff Use of the proposed steam generator tube generator tube collapse. First, collapse of 3-volt ARC does not significantly change steam generator tubing reduces RCS [reactor also reviewed the proposed editorial circumstances or conclusions assumed by the coolant system] flow. RCS flow reduction change for no significant hazards plant design basis. Application of the 3-volt increases resistance to heat flow from the consideration. The proposed editorial ARC does not significantly increase the core during a LOCA, increasing Peak Clad correction does not affect the design or probability of either single or multiple tube Temperature (PCT). Second, partial through- operation of the facility and satisfies the ruptures. Steam generator tube integrity wall tube-cracks could become full through- three standards of 10 CFR 50.92(c). remains adequate for all plant operating wall tube-cracks during tube deformation or Therefore, the NRC staff proposes to conditions. collapse. Tubes in regions affected by this determine that the request for STPNOC has confirmed that the allowed phenomenon are usually excluded from post-accident primary-to-secondary leakage evaluation under 3-volt ARC. STP Model E amendments involves no significant rate for SLB events results in the limiting steam generator design does not produce this hazards consideration. offsite and control room doses for South plastic deformation, thus is not subject to Attorney for licensee: Jack R. Texas Project Unit 2. A projected SLB leak tube collapse. No STP Unit 2 tubes are Newman, Esq., Morgan, Lewis & rate of 15.4 gpm is calculated to produce excluded, for this reason, from application of Bockius, 1800 M Street, NW., doses 90% of the currently licensed South the proposed 3-volt ARC. Washington, DC 20036–5869. Texas Project Unit 2 dose limits (Reference End of Cycle (EOC) distribution of crack 2 [STPNOC letter dated July 15, 1998, NOC– indications at affected TSP elevations will be NRC Section Chief: Robert A. Gramm.

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Virginia Electric and Power Company, change in a method of system operation. The stringent requirements for establishing the Docket Nos. 50–280 and 50–281, Surry adoption of the 1989 edition of ASTM D3803 capability of new and used activated carbon Power Station, Units No. 1 and No. 2, for methyl iodide testing conforms with to remove methyl iodide from air and gas Surry County, Virginia approved guidance for testing of nuclear- streams. The results of this test provide a grade activated charcoal. This provides more conservative estimate of the Date of amendment request: assurance that testing of ventilation systems performance of nuclear-graded activated November 29, 1999. is being performed with a suitable standard carbon used in nuclear power plant HVAC Description of amendment request: to ensure that charcoal adsorbers are capable [heating, ventilation, and air conditioning] The proposed changes will modify the of performing their required safety function systems for the removal of methyl iodide. Technical Specifications (TS) in Section and that the regulatory requirements Testing of the charcoal adsorbers’ efficiency 3.23 for the Main Control Room and regarding onsite and offsite dose for removing elemental iodine is performed consequences continue to be satisfied. The in accordance with the 1979 version of Emergency Switchgear Room changes do not create an unreviewed safety ASTM D3803 since the 1989 version does not Ventilation and Air Conditioning question. address elemental iodine removal Systems; TS Surveillance Requirement (a) The proposed changes modify efficiencies. The laboratory test acceptance Sections 4.20, Basis 4.20.A.7, and surveillance testing requirements and do not criteria contain a safety factor to ensure that 4.20.B.4 for the Control Room Air affect plant systems or operation and the efficiency assumed in the accident Filtration System; and TS Surveillance therefore do not increase the probability or analysis is still valid at the end of the Requirement Sections 4.12.A.6, the consequences of an accident previously operating cycle. 4.12.A.7, 4.12.A.8, 4.12.B.7, and 4.12 evaluated. The proposed surveillance The NRC staff has reviewed the Basis for the Auxiliary Ventilation requirements adopt ASTM D3803–1989, with licensee’s analysis and, based on this Exhaust Filter Trains. The proposed qualification, as the laboratory method for review, it appears that the three testing samples of the charcoal adsorber for changes will revise the above methyl iodide removal efficiency in response standards of 50.92(c) are satisfied. Surveillance Requirements for the to NRC’s Generic Letter 99–02. This method Therefore, the NRC staff proposes to laboratory testing of the carbon samples of testing charcoal adsorbers has been determine that the amendment request for methyl iodide removal efficiency to approved by the NRC as an acceptable involves no significant hazards be consistent with American Society for method for determining methyl iodide consideration. Testing and Materials (ASTM) Standard removal efficiency. Since the charcoal Attorney for licensee: Mr. Donald P. D3803–1989, ‘‘Standard Test Method for adsorbers are used to mitigate the Irwin, Esq., Hunton and Williams, Nuclear-Graded Activated Carbon,’’ consequences of an accident, the more Riverfront Plaza, East Tower, 951 E. with qualification, as the laboratory accurate the test, the better assurance we Byrd Street, Richmond, Virginia 23219. have that we remain within our accident testing standard for both new and used NRC Section Chief: Richard L. Emch, analysis assumptions. Testing of the charcoal Jr. charcoal adsorbent used in the adsorbers’ efficiency for removing elemental ventilation system. iodine is performed in accordance with the Previously Published Notices of Basis for proposed no significant 1979 version of ASTM D3803 since the 1989 Consideration of Issuance of hazards consideration determination: In version does not address elemental iodine Amendments to Facility Operating 10 CFR 50.92, three criteria are provided removal efficiencies. The laboratory test Licenses, Proposed No Significant to determine whether a proposed acceptance criteria contain a safety factor to Hazards Consideration Determination, ensure that the efficiency assumed in the license amendment involves a and Opportunity for a Hearing significant hazards consideration. No accident analysis is still valid at the end of significant hazards consideration is the operating cycle. There is no change in the The following notices were previously method of plant operation or system design. involved if operation of the facility with published as separate individual (b) The proposed changes modify notices. The notice content was the the proposed amendment would not: (1) surveillance testing requirements and do not Involve a significant increase in the same as above. They were published as impact plant systems or operations and individual notices either because time probability or consequences of an therefore do not create the possibility of an accident previously evaluated; or (2) accident or malfunction of a different type did not allow the Commission to wait Create the possibility of a new or than evaluated previously. The proposed for this biweekly notice or because the different kind of accident from any surveillance requirements adopt ASTM action involved exigent circumstances. accident previously evaluated; or (3) D3803–1989, with qualification, as the They are repeated here because the Involve a significant reduction in a laboratory method for testing samples of the biweekly notice lists all amendments charcoal adsorber for methyl iodide removal margin of safety. As required by 10 CFR issued or proposed to be issued efficiency. This change is in response to involving no significant hazards 50.91(a), the licensee has provided its NRC’s request in Generic Letter 99–02. analysis of the issue of no significant consideration. Testing of the charcoal adsorbers’ efficiency For details, see the individual notice hazards consideration, which is for removing elemental iodine is performed in the Federal Register on the day and presented below: in accordance with the 1979 version of ASTM D3803 since the 1989 version does not page cited. This notice does not extend Virginia Electric and Power Company has the notice period of the original notice. reviewed the requirements of 10 CFR 50.92 address elemental iodine removal as they relate to the proposed changes for efficiencies. There is no change in the Consumers Energy Company, Docket Surry Units 1 and 2 and determined that a method of plant operation or system design. No. 50–255, Palisades Plant, Van Buren There are no new or different accident significant hazards consideration is not County, Michigan involved. The proposed Technical scenarios, transient precursors, nor failure Specification changes adopt the nuclear- mechanisms that will be introduced. Date of amendment request: February grade charcoal testing requirements of ASTM (c) The proposed changes modify 18, 2000. D3803–1989, with qualification, for methyl surveillance test requirements and do not Brief description of amendment iodide removal efficiency and the impact plant systems or operations and request: The amendment changes requirements of ASTM D3803–1979, with therefore do not significantly reduce the current Technical Specification (TS) margin of safety. The revised surveillance qualification, for elemental iodine removal 4.9a.2 and improved TS 3.7.5 and its efficiency. The method of testing nuclear- requirements adopt ASTM D3803–1989, with grade activated charcoal does not affect the qualification, as the laboratory method for associated bases to remove requirements design or operation of the plant. The changes testing samples of the charcoal adsorber for associated with the backup steam also do not involve any physical methyl iodide removal efficiency. The 1989 supply to turbine-driven auxiliary modification to the plant or result in a edition of this standard imposes very feedwater pump P–8B.

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Date of publication of individual The Commission has made appropriate AmerGen Energy Co., LLC, Docket No. notice in Federal Register: March 1, 2000 findings as required by the Act and the 50–289, Three Mile Island Nuclear (65 FR 11089) Commission’s rules and regulations in Station, Unit 1, Dauphin County, Expiration date of individual notice: 10 CFR Chapter I, which are set forth in Pennsylvania Comment period expired March 14, the license amendment. Date of application for amendment: 2000; Notice period expires March 31, Notice of Consideration of Issuance of June 4, 1999, as supplemented 2000. Amendment to Facility Operating December 13, 1999. Tennessee Valley Authority, Docket No. License, Proposed No Significant Brief description of amendment: The 50–390 Watts Bar Nuclear Plant, Unit 1, Hazards Consideration Determination, amendment modified the limiting Rhea County, Tennessee and Opportunity for A Hearing in conditions for operation in the connection with these actions was Date of application for amendments: Technical Specifications (TSs) under published in the Federal Register as which a reduction in the number of February 25, 2000. indicated. Brief description of amendments: The means of decay heat removal (DHR) Unless otherwise indicated, the capability may occur by deleting two of amendment revises Technical Commission has determined that these Specification Table 3.3.2–1, these conditions. The amendment also amendments satisfy the criteria for makes related Bases changes and ‘‘Engineered Safety Feature Actuation categorical exclusion in accordance System Instrumentation’’ to provide a clarifies the DHR requirements for with 10 CFR 51.22. Therefore, pursuant redundancy. one-time exception, until the next time to 10 CFR 51.22(b), no environmental the turbine is removed from service, Date of issuance: February 28, 2000. impact statement or environmental Effective date: As of the date of from the requirement to perform assessment need be prepared for these response time testing for the solenoid issuance to be implemented within 30 amendments. If the Commission has days. valve 1–FSV–47–027. prepared an environmental assessment Date of publication of individual Amendment No.: 220. under the special circumstances Facility Operating License No. DPR–50. notice in the Federal Register: March 2, provision in 10 CFR 51.12(b) and has 2000. This amendment revised the Technical made a determination based on that Specifications. Expiration date of individual notice: assessment, it is so indicated. March 16, 2000. Date of initial notice in Federal For further details with respect to the Register: June 30, 1999 (64 FR 35207). Union Electric Company, Docket No. action see (1) the applications for The December 13, 1999, letter withdrew 50–483, Callaway Plant, Unit 1, amendment, (2) the amendment, and (3) a Bases change of the June 4, 1999, Callaway County, Missouri the Commission’s related letter, Safety application and did not change the Date of application for amendment: Evaluation and/or Environmental initial proposed no significant hazards January 14, 2000, as supplemented by Assessment as indicated. All of these consideration determination or expand letter dated February 17, 2000 (ULNRC– items are available for public inspection the amendment beyond the scope of the 04172 and –04187). at the Commission’s Public Document initial notice. Brief description of amendment Room, the Gelman Building, 2120 L The Commission’s related evaluation request: The amendment would revise Street, NW., Washington, DC, and of the amendment is contained in a several sections of the improved electronically from the ADAMS Public Safety Evaluation dated February 28, Technical Specification (ITSs) to correct Library component on the NRC Web 2000. 14 editorial errors made in either (1) the site, http://www.nrc.gov (the Electronic No significant hazards consideration application dated May 15, 1997, (and Reading Room). comments received: No. supplementary letters) for the ITSs, or AmerGen Energy Company, LLC, Docket AmerGen Energy Company, LLC, Docket (2) the certified copy of the ITSs that No. 50–461, Clinton Power Station, Unit No. 50–289, Three Mile Island Nuclear was submitted in the licensee’s letters of 1, DeWitt County, Illinois Station, Unit 1 (TMI–1), Dauphin May 27 and 28, 1999. The ITSs were County, Pennsylvania issued as Amendment No. 133 by the Date of application for amendment: staff in its letter of May 28, 1999, and March 1, 1999. Date of application for amendment: will be implemented by the licensee to Brief description of amendment: The May 26, 1999. replace the current TSs by April 30, amendment approves changes to the Brief description of amendment: The 2000. Updated Safety Analysis Report amendment authorized changes to Date of publication of individual concerning design requirements for Chapters 5 and 14 of the Updated Final notice in Federal Register: February 25, physical protection from tornado Safety Analysis Report (UFSAR). The 2000 (65 FR 10118). missiles. changes reflect the use of an Electric Expiration date of individual notice: Date of issuance: February 29, 2000. Power Research Institute-developed March 27, 2000. Effective date: February 29, 2000. Conservative Deterministic Failure Amendment No.: 124. Margin methodology for seismic Notice of Issuance of Amendments to Facility Operating License No. NPF–62: analysis of the portions of the nonsafety- Facility Operating Licenses The amendment allows a change to the related auxiliary steam line piping During the period since publication of Updated Safety Analyis Report located in the Auxiliary, Control, and the last biweekly notice, the concerning tornado missile protection. Fuel Handling buildings at TMI–1. Commission has issued the following Date of initial notice in Federal Date of issuance: March 10, 2000. amendments. The Commission has Register: April 21, 1999 (64 FR 19558). Effective date: As of the date of determined for each of these The Commission’s related evaluation issuance and shall be implemented amendments that the application of the amendment is contained in a within 30 days. complies with the standards and Safety Evaluation dated February 29, Amendment No.: 221. requirements of the Atomic Energy Act 2000. Facility Operating License No. DPR–50. of 1954, as amended (the Act), and the No significant hazards consideration Amendment authorizes changes to the Commission’s rules and regulations. comments received: No. UFSAR.

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Date of initial notice in Federal Facility Operating License No. DPR– Date of initial notice in Federal Register: June 30, 1999 (64 FR 35207). 71: Amendment revises the Technical Register: June 16, 1999 (64 FR 32280). The Commission’s related evaluation of Specifications. The October 21 and December 15, 1999, the amendment is contained in a Safety Date of initial notice in Federal supplements did not change the initial Evaluation dated March 10, 2000. Register: November 3, 1999 (64 FR proposed no significant hazards No significant hazards consideration 59797). consideration determination. comments received: No. The Commission’s related evaluation The Commission’s related evaluation of the amendment is contained in a of the amendments is contained in a Arizona Public Service Company, et al., Safety Evaluation dated March 1, 2000. Safety Evaluation dated March 1, 2000. Docket Nos. STN 50–528, STN 50–529, No significant hazards consideration No significant hazards consideration and STN 50–530, Palo Verde Nuclear comments received: No. comments received: No. Generating Station, Units Nos. 1, 2, and 3, Maricopa County, Arizona Carolina Power & Light Company, et al., Commonwealth Edison Company, Docket No. 50–325, Brunswick Steam Date of application for amendments: Docket Nos. 50–254 and 50–265, Quad Electric Plant, Unit 1, Brunswick Cities Nuclear Power Station, Units 1 June 8, 1999, as supplemented July 20 County, North Carolina and November 24, 1999. and 2, Rock Island County, Illinois Brief description of amendments: The Date of amendment request: Date of application for amendments: amendments revise the Technical November 17, 1999. October 12, 1999. Specifications to increase the storage Brief description of amendment: The Brief description of amendments: The capacity of spent fuel in the fuel storage amendment changes the Technical amendments revised Technical pools by allowing credit for soluble Specifications (TS) in response to the Specification (TS) 2.2, ‘‘Limiting Safety boron and decay time in the safety licensee’s submittal dated September System Settings,’’ and TS 3/4.1.A, analysis, and to increase the maximum 28, 1999. The amendment revises TS ‘‘Reactor Protection System,’’ to remove radially averaged fuel enrichment from 2.1.1.2, ‘‘Reactor Core Safety Limits,’’ by an anticipatory reactor scram signal, the 4.3 weight percent to 4.8 weight changing the Minimum Critical Power turbine electro-hydraulic control (EHC) percent. Ratio. low oil pressure trip, from the reactor Date of issuance: March 2, 2000. Date of issuance: March 1, 2000. protection system trip function Effective date: March 2, 2000. Effective date: March 1, 2000. requirements. Amendment No.: 208. Amendment Nos.: Unit 1–125, Unit Date of issuance: January 28, 2000. Facility Operating License No. DPR– 2–125, Unit 3–125. Effective date: Immediately, to be 71: Amendment revises the Technical Facility Operating License Nos. NPF– implemented within 30 days. Specifications. 41, NPF–51, and NPF–74: The Date of initial notice in Federal Amendment Nos.: 193 & 189. amendments revised the Technical Register: December 15, 1999 (64 FR Facility Operating License Nos. DPR– Specifications. 70080). 29 and DPR–30: The amendments Date of initial notice in Federal The Commission’s related evaluation revised the Technical Specifications. Register: September 20, 1999 (64 FR of the amendment is contained in a Date of initial notice in Federal 50835). The July 20 and November 24, Safety Evaluation dated March 1, 2000. Register: December 1, 1999 (64 FR 1999, letters provided additional No significant hazards consideration 67331). clarifying information that was within comments received: No. The Commission’s related evaluation the scope of the original application and of the amendments is contained in a Federal Register notice and did not Commonwealth Edison Company, Safety Evaluation dated January 28, change the staff’s initial proposed no Docket Nos. STN 50–454 and STN 50– 2000. significant hazards consideration 455, Byron Station, Unit Nos. 1 and 2, No significant hazards consideration determination. The Commission’s Ogle County, Illinois; Docket Nos. STN comments received: No. related evaluation of the amendment is 50–456 and STN 50–457, Braidwood contained in a Safety Evaluation dated Station, Unit Nos. 1 and 2, Will County, Commonwealth Edison Company, March 2, 2000. Illinois Docket Nos. 50–254 and 50–265, Quad Cities Nuclear Power Station, Units 1 No significant hazards consideration Date of application for amendments: and 2, Rock Island County, Illinois comments received: No. March 23, 1999, as supplemented on October 21, 1999, and December 15, Date of application for amendments: Carolina Power & Light Company, et al., November 16, 1999. Docket No. 325, Brunswick Steam 1999. Brief description of amendments: The Electric Plant, Unit 1, Brunswick Brief description of amendments: The amendments change Technical County, North Carolina amendments approved the installation of new Boral high density spent fuel Specification Table 4.1.A–1, ‘‘Reactor Date of amendment request: storage racks at Byron and Braidwood Protection System Instrumentation September 28, 1999. stations. The amendments also Surveillance Requirements,’’ to modify Brief description of amendment: The approved an increase in the spent fuel the surveillance requirements for amendment changes the Technical pool storage capacity from 2,870 Functional Unit 3, ‘‘Reactor Vessel Specifications (TS) in response to your assemblies to 2,984 assemblies at each Steam Dome Pressure—High,’’ to reflect submittal dated September 28, 1999. station. replacement of the pressure switches The amendment revises TS 2.1.1.2, Date of issuance: March 1, 2000. with analog trip units. ‘‘Reactor Core Safety Limits,’’ and TS Effective date: Immediately, to be Date of issuance: January 28, 2000. 5.6.5, ‘‘Core Operating Limits Report,’’ implemented within 30 days. Effective date: Immediately, to be by removing safety limit restrictions Amendment Nos.: 112 and 105. implemented before startup from which are no longer applicable. Facility Operating License Nos. NPF– Refueling Outage 16 for Unit 1 and Date of issuance: March 1, 2000. 37, NPF–66, NPF–72 and NPF–77: The before startup from Refueling Outage 15 Effective date: March 1, 2000. amendments revised the Technical for Unit 2. Amendment No.: 207. Specifications. Amendment Nos.: 194 & 190.

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Facility Operating License Nos. DPR– Amendment No.: 207. Date of issuance: March 2, 2000. 29 and DPR–30: The amendments Facility Operating License No. DPR– Effective date: As of the date of revised the Technical Specifications. 26: Amendment revised the Technical issuance and shall be implemented Date of initial notice in Federal Specifications. within 30 days from the date of Register: December 15, 1999 (64 FR Date of initial notice in Federal issuance. 70082). Register: April 7, 1999 (64 FR 17023). The Commission’s related evaluation The Commission’s related evaluation Amendment Nos.: Unit 1—191; Unit of the amendments is contained in a of the amendment is contained in a 2—172. Safety Evaluation dated January 28, Safety Evaluation dated February 29, Facility Operating License Nos. NPF– 2000. 2000. 9 and NPF–17: Amendments revised the No significant hazards consideration No significant hazards consideration Technical Specifications. comments received: No. comments received: No. Date of initial notice in Federal Consolidated Edison Company of New Duke Energy Corporation, et al., Docket Register: August 11, 1999 (64 FR 43772). York, Docket No. 50–247, Indian Point Nos. 50–413 and 50–414, Catawba The November 24, 1999, Nuclear Generating Unit No. 2, Nuclear Station, Units 1 and 2, York supplemental letter did not expand the Westchester County, New York County, South Carolina scope of the application initially noticed Date of application for amendment: Date of application for amendments: or change the proposed no significant June 2, 1999, as supplemented August June 24, 1999, as supplemented by letter hazards consideration determination. 25, 1999. dated November 24, 1999. The Commission’s related evaluation Brief description of amendment: The Brief description of amendments: The of the amendments is contained in a amendment allows for the relocation of amendments revised the Technical Safety Evaluation dated March 2, 2000. the Quality Assurance related Specifications by revising the minimum administrative controls to the Quality No significant hazards consideration reactor coolant system (RCS) flow rate comments received: No. Assurance Program Description in limit, the reactor coolant average accordance with NRC Administrative temperature, and the pressurizer Energy Northwest, Docket No. 50–397, Letter 95–06, ‘‘Relocation of Technical pressure limits, and by restricting WNP–2, Benton County, Washington Specification Administrative Controls operation to a RCS flow deficit of no Related to Quality Assurance.’’ Date of application for amendment: more than one percent. October 13, 1999. Date of issuance: February 25, 2000. Date of issuance: March 1, 2000. Effective date: As of the date of Effective date: As of the date of Brief description of amendment: The issuance to be implemented within 30 issuance and shall be implemented amendment removes footnote (d) from days. within 30 days from the date of Function 5, ‘‘RHR [residual heat Amendment No.: 206. issuance. removal] SDC [shut down cooling] Facility Operating License No. DPR– System Isolation’’ of Technical 26: Amendment revised the Technical Amendment Nos.: Unit 1—184; Unit 2—176. Specification (TS) Table 3.3.6.1–1, Specifications. ‘‘Primary Containment Isolation Federal Facility Operating License Nos. NPF– Date of initial notice in Instrumentation.’’ Footnote (d) states, Register: November 3, 1999 (64 FR 35 and NPF–52: Amendments revised the Technical Specifications. ‘‘Only the inboard trip system is 59799). required in Modes 1, 2, and 3, as The August 25, 1999, letter provided Date of initial notice in Federal applicable, when the outboard valve clarifying information that did not Register: August 11, 1999 (64 FR 43770). control is transferred to the alternate change the initial proposed no The November 24,1999, letter remote shutdown panel and the significant hazards consideration. provided clarifying information that did The Commission’s related evaluation not change the scope of the June 24, outboard valve is closed.’’ The outboard of the amendment is contained in a 1999, application and the initial suction trip system valve, RHR–V–8, is Safety Evaluation dated February 25, proposed no significant hazards no longer transferred to the alternate 2000. consideration determination. remote shutdown panel and is now No significant hazards consideration The Commission’s related evaluation required during Modes 1, 2 and 3. comments received: No. of the amendments is contained in a Therefore, footnote (d) is no longer Safety Evaluation dated March 1, 2000. needed. Footnote (e) is relettered as Consolidated Edison Company of New No significant hazards consideration footnote (d) for consistency. York, Docket No. 50–247, Indian Point comments received: No Date of issuance: March 9, 2000. Nuclear Generating Unit No. 2, Westchester County, New York Duke Energy Corporation, Docket Nos. Effective date: March 9, 2000, to be 50–369 and 50–370, McGuire Nuclear implemented within 30 days of Date of application for amendment: Station, Units 1 and 2, Mecklenburg issuance. February 29, 2000. County, North Carolina Brief description of amendment: The Amendment No.: 161. amendment revises Technical Date of application for amendments: Facility Operating License No. NPF– Specification (TS) 3.7.D.1 to correct an June 24, 1999, as supplemented by letter 21: The amendment revised the editorial error, TS 6.2.2 to change the dated November 24, 1999. Technical Specifications. Brief description of amendments: The senior reactor operator license Date of initial notice in Federal amendments revise the minimum requirement for the Operations Register: December 15, 1999 (64 FR reactor coolant system (RCS) flow rate Manager, and TS 6.3.1 to modify the 70082). qualification requirement for the limit, reduce the reactor coolant average Operations Manager. temperature and pressurizer pressure The Commission’s related evaluation Date of issuance: February 29, 2000. limits, restrict operation to a RCS flow of the amendment is contained in a Effective date: As of the date of deficit of no more than one percent, and Safety Evaluation dated March 9, 2000. issuance to be implemented within 30 change the low RCS flow reactor trip No significant hazards consideration days. setpoint. comments received: No.

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Entergy Gulf States, Inc., and Entergy at Arkansas Nuclear One, Unit 2 (ANO– FirstEnergy Nuclear Operating Operations, Inc., Docket No. 50–458, 2). This change will reduce the limiting Company, et al., Docket No. 50–412, River Bend Station, Unit 1, West condition for operation for the Beaver Valley Power Station, Unit No. 2, Feliciana Parish, Louisiana maximum quantity of stored Shippingport, Pennsylvania Date of amendment request: radioactivity per tank from 300,000 Date of application for amendments: December 16, 1999. curies of noble gases as Xenon–133 (Xe– March 16, 1999. Brief description of amendment: The 133) equivalent to 78,782 curies of noble Brief description of amendments: This amendment authorizes the licensee to gases as Xe–133 equivalent at ANO–1, amendment revised TS 3/4.7.1.3 and revise fuel handling accident (FHA) and 82,400 curies of noble gases as Xe– associated Bases for the Primary Plant dose calculations for three scenarios 133 equivalent at ANO–2. Demineralized Water (PPDW) system to described in the River Bend Station, Date of issuance: February 18, 2000. clarify that the minimum specified Effective date: As of the date of Unit 1, Updated Safety Analysis Report. volume of water in the PPDW Storage issuance and shall be implemented The first is an FHA in the fuel building, Tank is a usable volume. Additionally, within 30 days from the date of assumed to occur 24 hours post- the minimum usable volume of water in issuance. shutdown. A second FHA analysis was the PPDW Storage Tank is increased, Amendment Nos.: ANO–1—204; prepared to support Amendment 35 to and a clarifying footnote that the ANO–2—211. RBS Technical Specifications (TS) Facility Operating License Nos. DPR– specified value is an analysis value is which assumed an FHA occurs in the 51 and NPF–6: Amendments revised the added. Finally, several editorial and primary containment 80 hours post- Technical Specifications. administrative changes, such as revision shutdown during local leakage rate Date of initial notice in Federal of action statement wording, addition of testing (LLRT). A third analysis was Register: January 12, 2000 (65 FR 1921). license number to TS page, and addition prepared in support of Amendment 85 The Commission’s related evaluation of clarifying information to the TS Bases to the River Bend Station Technical of the amendments is contained in a regarding analysis assumptions are Specifications which assumed the Safety Evaluation dated February 18, made. containment is open at 11 days. These 2000. Date of issuance: February 28, 2000. analyses are being updated to account No significant hazards consideration Effective date: As of the date of for several changes that were comments received: No. issuance and shall be implemented determined by the licensee to involve an within 60 days. unreviewed safety question in Entergy Operations, Inc., Docket No. 50– Amendment Nos.: 106. accordance with Title 10 of the Code of 382, Waterford Steam Electric Station, Facility Operating License No. NPF– Federal Regulations, Section Unit 3, St. Charles Parish, Louisiana 73: Amendment revised the Technical 50.59(a)(2)(i). Date of amendment request: July 29, Specifications. Date of issuance: March 2, 2000. 1998, as supplemented by letters dated Date of initial notice in Federal Effective date: The license July 29, October 28, and November 11, Register: April 21, 1999, (64 FR 19556). amendment is effective as of its date of 1999 The Commission’s related evaluation issuance and shall be implemented in Brief description of amendment: The of the amendments is contained in a the next periodic update to the USAR in amendment replaces the existing Safety Evaluation dated February 28, accordance with 10 CFR 50.71(e). reference to the Asea Brown Boveri- 2000. Implementation of the amendment is Combustion Engineering, Inc. small No significant hazards consideration the incorporation into the USAR update, break loss-of-coolant accident comments received: No. the changes to the description of the emergency core cooling system FirstEnergy Nuclear Operating facility as described in the licensee’s performance evaluation model with the Company, et al., Docket Nos. 50–334 application dated December 16, 1999, revised model described in the topical and 50–412, Beaver Valley Power and evaluated in the staff’s Safety report CENPD–137, Supplement 2, P–A, Station, Unit Nos. 1 and 2, Evaluation attached to this amendment. April 1998. Shippingport, Pennsylvania Amendment No.: 110. Date of issuance: March 7, 2000. Facility Operating License No. NPF– Effective date: As of the date of Date of application for amendments: 47: The amendment authorized changes issuance and shall be implemented May 27, 1999. to the Updated Safety Analysis Report. within 60 days from the date of Brief description of amendments: The Date of initial notice in Federal issuance. amendments relocate the seismic Register: January 26, 2000 (65 FR 4272). Amendment No.: 158. monitoring instrumentation The Commission’s related evaluation Facility Operating License No. NPF– requirements contained in Technical of the amendment is contained in a 38: The amendment revised the Specification (TS) 3/4.3.3.3 to the Safety Evaluation dated March 2, 2000. Technical Specifications. Licensing Requirements Manual (LRM) No significant hazards consideration Date of initial notice in Federal based on the guidance provided in comments received: No. Register: December 15, 1999 (64 FR Generic Letter 95–10, ‘‘Relocation of 70085). Selected Technical Specifications Entergy Operations, Inc., Docket Nos. The July 29, October 28, and Requirements Related to 50–313 and 50–368, Arkansas Nuclear November 11, 1999, letters provided Instrumentation.’’ The Bases section for One, Units 1 and 2, Pope County, additional information that did not Specification 3/4.3.3.3 is also relocated Arkansas change the scope of the initial proposed to the LRM. The appropriate Index Date of amendment request: no significant hazards consideration pages, Table Index page (Unit No. 1 September 17, 1999. determination. only), TS pages and Bases pages are Brief description of amendments: The The Commission’s related evaluation revised to reflect the removal of the amendments modify TS 3.25.2, of the amendment is contained in a seismic monitoring instrumentation ‘‘Radioactive Gas Storage Tanks,’’ at Safety Evaluation dated March 7, 2000. specification from the TSs. An Arkansas Nuclear One, Unit 1 (ANO–1) No significant hazards consideration additional TS page is added to reflect and TS 3/4.11.2, ‘‘Gas Storage Tanks,’’ comments received: No. that TS Number 3/4.3.3.4 is not used.

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This additional page also denotes the Brief description of amendment: This the last revision to the Physical Security number of the following page. Finally, amendment revises the Technical Plan. Also, the phrase ‘‘Turkey Point the Bases section is modified to denote Specifications to expand the present Plant, Units 3 and 4 Security Plan’’ was that TS Number 3/4.3.3.4 is not used. spent fuel storage capability by 289 revised to ‘‘Turkey Point Physical Date of issuance: February 28, 2000. storage locations by allowing the use of Security Plan.’’ Effective date: As of date of issuance spent fuel racks in the cask pit area Date of issuance: February 28, 2000. and shall be implemented within 60 adjacent to the spent fuel pool. Effective date: February 28, 2000. days. Date of issuance: February 29, 2000. Amendment Nos.: 204 and 198. Amendment Nos.: 228 and 107. Effective date: February 29, 2000. Facility Operating License Nos. DPR– Facility Operating License Nos. DPR– Amendment No.: 237. 31 and DPR–41: Amendments revised 66 and NPF–73: Amendments revised Facility Operating License No. NPF–3: the Operating Licenses. the Technical Specifications. Amendment revised the Technical Date of initial notice in Federal Date of initial notice in Federal Specifications. Register: December 29, 1999 (64 FR Register: June 30, 1999 (64 FR 35203). Date of initial notice in Federal 73092). The Commission’s related evaluation Register: July 8, 1999 (64 FR 36933). The Commssion’s related evaluation of the amendments is contained in a The supplemental information of the amendments is contained in a Safety Evaluation dated February 28, contained clarifying information and Safety Evaluation dated February 28, 2000. did not change the initial no significant 2000. No significant hazards consideration No significant hazards consideration hazards consideration determination comments received: No. comments received: No. and did not expand the scope of the FirstEnergy Nuclear Operating original Federal Register notice. Florida Power Corporation, et al., The Commission’s related evaluation Company, et al., Docket Nos. 50–334 Docket No. 50–302, Crystal River Unit of the amendment is contained in a and 50–412, Beaver Valley Power No. 3 Nuclear Generating Plant, Citrus Safety Evaluation dated February 29, Station, Unit Nos. 1 and 2, County, Florida 2000. Shippingport, Pennsylvania Date of application for amendment: No significant hazards consideration October 12, 1999. Date of application for amendments: comments received: No. Brief description of amendment: The May 27, 1999. amendment revises the Technical Brief description of amendments: The Florida Power and Light Company, et Specifications, Appendix B, amendments (1) revised the frequency al., Docket No. 50–389, St. Lucie Plant, ‘‘Environmental Protection Plan (Non- for performing the CHANNEL Unit No. 2, St. Lucie County, Florida Radiological)’’ to incorporate the FUNCTIONAL TEST of the manual Date of application for amendment: reasonable and prudent measures, and initiation functional units specified in August 18, 1999. the terms and conditions, of the the Beaver Valley Power Station, Unit Brief description of amendment: This Incidental Take Statement in the Nos. 1 and 2, Engineered Safety amendment decreases the surveillance Biological Opinion issued by the Features Actuation System (ESFAS) frequency, listed in the updated Final National Marine Fisheries Service. Instrumentation Technical Safety Analysis Report (UFSAR), for Date of issuance: February 29, 2000. Specifications (TSs) from monthly, with cycling steam valves in the turbine Effective date: February 29, 2000. an accompanying footnote which allows overspeed protection system from Amendment No.: 190. the manual initiation to be tested on a monthly to quarterly. Facility Operating License No. DPR– refueling interval, to each refueling Date of Issuance: February 28, 2000. 31: Amendment revised the Technical interval; (2) revise footnotes associated Effective Date: As of the date of its Specifications. with TS ESFAS tables; (3) revise issuance, to be incorporated into the Date of initial notice in Federal associated TS Bases. UFSAR at the time of its next update. Register: December 15, 1999 (64 FR Date of issuance: February 28, 2000. Amendment No.: 108. 70090). Effective date: As of date of issuance Facility Operating License No. NPF– The Commission’s related evaluation and shall be implemented within 60 16: Amendment revised the UFSAR. of the amendment is contained in a days. Date of initial notice in Federal Safety Evaluation dated February 29, Amendment Nos.: 229 and 108. Register: September 22, 1999 (64 FR 2000. Facility Operating License Nos. DPR– 51345). No significant hazards consideration 66 and NPF–73: Amendments revised The Commission’s related evaluation comments received: No. the Technical Specifications. of the amendment is contained in a Date of initial notice in Federal Safety Evaluation dated February 28, Indiana Michigan Power Company, Register: June 30, 1999 (64 FR 35205). 2000. Docket Nos. 50–315 and 50–316, Donald The Commission’s related evaluation No significant hazards consideration C. Cook Nuclear Plant, Units 1 and 2, of the amendments is contained in a comments received: No. Berrien County, Michigan Safety Evaluation dated February 28, Date of application for amendments: Florida Power and Light Company, 2000. December 22, 1999. Docket Nos. 50–250 and 50–251, Turkey No significant hazards consideration Brief description of amendments: The Point Plant, Units 3 and 4, Dade County, comments received: No. amendments delete Technical Florida Specification 5.4.2, ‘‘Reactor Coolant FirstEnergy Nuclear Operating Date of application for amendments: System Volume,’’ regarding the reactor Company, Docket No. 50–346, Davis- December 1, 1999, as supplemented coolant system (RCS) volume Besse Nuclear Power Station, Unit 1, December 15, 1999. information. Information concerning the Ottawa County, Ohio Breif description of amendments: The RCS volume is included in the D. C. Date of application for amendment: amendments revised License Condition Cook Updated Final Safety Analyses May 21, 1999, as supplemented by 3.L for Turkey Point, Units 3 and 4, Report (UFSAR), and any changes to the submittals dated December 1, 1999, and Operating Licenses DPR–31 and DPR–41 information are controlled in January 28, 2000. to reflect the December 1, 1999, date of accordance with 10 CFR 50.59.

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Date of issuance: March 1, 2000. Niagara Mohawk Power Corporation, Northeast Nuclear Energy Company, et Effective date: As of the date of Docket No. 50–220, Nine Mile Point al., Docket No. 50–245, Millstone issuance and shall be implemented Nuclear Station, Unit 1, Oswego County, Nuclear Power Station, Unit No. 1, New within 30 days. New York London County, Connecticut Amendment Nos.: 241 and 222. Date of application for amendment: Date of application for amendments: August 26, 1999, as supplemented April 19, 1999, as supplemented August Facility Operating License Nos. DPR– December 17, 1999. 25, October 14, November 3, December 58 and DPR–74: Amendments revised Brief description of amendment: The 20, 1999, and February 29, 2000. the Technical Specifications. amendment changes Technical Brief description of amendments: The Date of initial notice in Federal Specification 3.2.3, ‘‘Coolant amendment replaces the current Register: January 13, 2000 (65 FR 2199). Chemistry,’’ to support the Technical Specifications for fuel storage The Commssion’s related evaluation implementation of noble metal chemical pool water lever, crane operability, and of the amendments is contained in a addition. crane travel with a spent fuel cask with Date of issuance: March 8, 2000. Safety Evaluation dated March 1, 2000. new Technical Specifications to reflect Effective date: As of the date of the permanently defueled status of the No significant hazards consideration issuance to be implemented before the plant. comments received: No. licensee first performs the noble metal Date of Issuance: March 7, 2000. Nebraska Public Power District, Docket chemical addition. Effective date: As of the date of Amendment No.: 169. issuance and shall be implemented No. 50–298, Cooper Nuclear Station, Facility Operating License No. NPF– within 90 days from the date of Nemaha County, Nebraska 69: Amendment revises the Technical issuance. Date of amendment request: October Specifications. Amendment No.: 107. 6, 1999, as supplemented February 9, Date of initial notice in Federal Facility Operating License No. DPR– 2000. Register: September 22, 1999 (64 FR 21: The amendment revised the 51347). Technical Specifications. Brief description of amendment: The The licensee’s supplemental letter Date of initial notice in Federal amendment addresses the following dated December 17, 1999, did not Register: June 30, 1999, (64 FR 35208). changes to the Technical Specifications: change the Commission’s finding of no The August 25, October 14, November (1) provisions for implementation of 10 significant hazards consideration. 3, December 20, 1999, and February 29, CFR Part 50, Appendix J, Option B, The Commssion’s related evaluation 2000, letters provided clarifying (Technical Specification Task Force of the amendment is contained in a information that did not change the (TSTF) Change 52, Revision 2) (2) Safety Evaluation dated March 8, 2000. scope of the original application and extension of the required surveillance No significant hazards consideration proposed no hazards consideration interval for the containment air lock comments received: No. determination. interlock mechanism from 18 to 24 The Commission’s related evaluation Niagara Mohawk Power Corporation, months (TSTF Change 17, Revision 1), of the amendment is contained in a Docket No. 50–410, Nine Mile Point (3) clarification of the valve types Safety Evaluation dated March 7, 2000. Nuclear Station, Unit 2, Oswego County, requiring isolation time testing (TSTF No significant hazards consideration New York Change 46, Revision 1), and (4) comments received: No. provisions for use of administrative Date of application for amendment: Northeast Nuclear Energy Company, et means for verification of isolation October 25, 1999, as supplemented on al., Docket Nos. 50–336 and 50–423, devices that are locked, sealed or February 2 and 7, 2000. Brief description of amendment: The Millstone Nuclear Power Station, Unit otherwise secured (TSTF Change 269, Nos. 2 and 3, New London County, Revision 2). amended Technical Specifications permit use of the already-installed Connecticut Date of issuance: March 3, 2000. Oscillation Power Range Monitor Date of application for amendment: Effective date: March 3, 2000, to be system. November 23, 1999. implemented within 30 days. Date of issuance: March 2, 2000. Brief description of amendment: The Amendment No.: 180. Effective date: As of the date of amendment changes Technical issuance to be implemented before Specification (TS) 4.0.5, ‘‘Limiting Facility Operating License No. DPR– activation of the Oscillation Power Conditions for Operation and 46: Amendment revised the Technical Range Monitor System, but no later than Surveillance Requirements’’ by adding a Specifications. August 31, 2000. biennial or 2-year surveillance interval Date of initial notice in Federal Amendment No.: 92. and incorporating a required frequency Register: December 29, 1999 (64 FR Facility Operating License No. NPF– for performing inservice testing 73092). The February 9, 2000, 69: Amendment revises the Technical activities of once per 731 days. supplement provided clarifying Specifications. Date of issuance: March 8, 2000. information that was within the scope of Date of initial notice in Federal Effective date: As of the date of the October 6, 1999, application and the Register: December 1, 1999 (64 FR issuance, and shall be implemented staff’s original Federal Register notice 67336). within 60 days. and did not change the staff’s initial The February 2 and 7, 2000, letters Amendment Nos.: 241 and 178. proposed no significant hazards provided clarifying information that did Facility Operating License Nos. DPR– consideration determination. not change the initial proposed no 65 and NPF–49: Amendment revised the significant hazards consideration. Technical Specifications. The Commssion’s related evaluation The Commission’s related evaluation Date of initial notice in Federal of the amendment is contained in a of the amendment is contained in a Register: January 26, 2000 (65 FR 4286). Safety Evaluation dated March 3, 2000. Safety Evaluation dated March 2, 2000. The Commission’s related evaluation No significant hazards consideration No significant hazards consideration of the amendment is contained in a comments received: No. comments received: No. Safety Evaluation dated March 8, 2000.

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No significant hazards consideration Public Service Electric & Gas Company, not change the staff’s initial proposed comments received: No. Docket No. 50–354, Hope Creek no significant hazards consideration Generating Station, Salem County, New determination. Northern States Power Company, Jersey The Commission’s related evaluation Docket Nos. 50–282 and 50–306, Prairie of the amendments is contained in a Island Nuclear Generating Plant, Units Date of application for amendment: Safety Evaluation dated February 29, 1 and 2, Goodhue County, Minnesota August 26, 1999. Brief description of amendment: This 2000. Date of application for amendments: No significant hazards consideration amendment raises the condensate March 2, 1998, supplemented on comments received: No. January 21, 2000. storage tank (CST) low level setpoint Brief description of amendments: The and the corresponding allowable value Southern California Edison Company, et amendments change the second in Technical Specification Tables 3.3.3– al., Docket Nos. 50–361 and 50–362, paragraph of Technical Specification 2 and 3.3.5–2. The subject setpoint is San Onofre Nuclear Generating Station, 3.8.D, ‘‘Spent Fuel Pool Special associated with the automatic transfer of Units 2 and 3, San Diego County, Ventilation System,’’ to clarify the High Pressure Coolant Injection California restrictions on movement of loads in the (HPCI) and Reactor Core Isolation Date of application for amendments: spent fuel pool enclosure with one train Cooling (RCIC) pump suctions from the April 11, 1996 (PCN 460), as of spent fuel pool special ventilation CST to the suppression pool in the supplemented April 6, 1998, and March system inoperable. event of low CST level. These changes 22 and July 29, 1999. Date of issuance: February 17, 2000. are being made to address concerns Brief description of amendments: The Effective date: As of the date of regarding potential vortexing in the amendments revise Technical issuance and shall be implemented HPCI and RCIC suction flowpaths. Specification 3.6.3, ‘‘Containment within 30 days. Date of issuance: March 6, 2000. Isolation Valves,’’ to specify that the Amendment Nos.: 147 and 138. Effective date: As of the date of completion time for required action for Facility Operating License Nos. DPR– issuance, and shall be implemented certain containment isolation valves be 42 and DPR–60: Amendments revised within 60 days. in accordance with the applicable the Technical Specifications. Amendment No.: 124. limiting condition for operation Date of initial notice in Federal Facility Operating License No. NPF– pertaining to the engineered safety Register: May 20, 1998 (63 FR 27763). 57: This amendment revised the The Commission’s related evaluation features system in which they are Technical Specifications. installed. of the amendments is contained in a Date of initial notice in Federal Safety Evaluation dated February 17, Date of issuance: March 9, 2000. Register: September 22, 1999 (64 FR Effective date: March 9, 2000, to be 2000. 51348). implemented within 30 days of No significant hazards consideration The Commission’s related evaluation comments received: No. issuance. of the amendment is contained in a Amendment Nos.: Unit 2–165; Unit Northern States Power Company, Safety Evaluation dated March 6, 2000. 3–156. Docket Nos. 50–282 and 50–306, Prairie No significant hazards consideration Facility Operating License Nos. NPF– Island Nuclear Generating Plant, Units comments received: No. 10 and NPF–15: The amendments 1 and 2, Goodhue County, Minnesota Public Service Electric & Gas Company, revised the Technical Specifications. Date of application for amendments: Docket Nos. 50–272 and 50–311, Salem Date of initial notice in Federal November 6, 1996, supplemented April Nuclear Generating Station, Unit Nos. 1 Register: January 19, 2000 (65 FR 2993), 10 and October 1, 1997, and March 4, and 2, Salem County, New Jersey as corrected January 26, 2000 (65 FR 1998. 4265). Date of application for amendments: The Commission’s related evaluation Brief description of amendments: The July 29, 1999, as supplemented amendments revise Technical of the amendments is contained in a November 30, 1999. Safety Evaluation dated March 9, 2000. Specification Section 5.0, ‘‘DESIGN Brief description of amendments: The FEATURES,’’ by relocating certain No significant hazards consideration amendments revise Technical comments received: No. portions of the design features Specifications Surveillance information to the Updated Safety Requirement 4.6.1.1 to clarify when Southern California Edison Company, et Analysis Report, consistent with verification of primary containment al., Docket Nos. 50–361 and 50–362, NUREG–1431, ‘‘Standard Technical integrity may be performed by San Onofre Nuclear Generating Station, Specifications, Westinghouse Plants,’’ administrative means and to change the Units 2 and 3, San Diego County, Revision 1. surveillance interval for verification of California Date of issuance: February 29, 2000. Effective date: As of the date of manual valves and blind flanges inside Date of application for amendments: issuance and shall be implemented of containment. December 13, 1999, as supplemented within 30 days. Date of issuance: February 29, 2000. February 24, 2000 (PCN–507). Amendment Nos.: 148 and 139. Effective date: As of the date of Brief description of amendments: The Facility Operating License Nos. DPR– issuance, and shall be implemented amendments revise the license 42 and DPR–60: Amendments revised within 60 days. expiration dates for San Onofre Unit 2 the Technical Specifications. Amendment Nos.: 227 and 208. to February 16, 2022, and for San Date of initial notice in Federal Facility Operating License Nos. DPR– Onofre Unit 3 to November 15, 2022, Register: January 29, 1997 (62 FR 4338). 70 and DPR–75: The amendments thus extending the units’ periods of The Commission’s related evaluation revised the Technical Specifications. operation to the full 40-year design- of the amendments is contained in a Date of initial notice in Federal basis lifetime. Safety Evaluation dated February 29, Register: September 22, 1999 (64 FR Date of issuance: March 9, 2000. 2000. 51349). Effective date: March 9, 2000, to be No significant hazards consideration The November 30, 1999, letter implemented within 30 days of comments received: No. provided clarifying information that did issuance.

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Amendment Nos.: Unit 2—166; Unit Specifications (TS) to delete the Brief description of amendment: The 3—157. necessity for time response testing amendment revises the main steam Facility Operating License Nos. NPF– various instrument transmitters based safety valve Technical Specification 10 and NPF–15: The amendments on historical records indicating (TS) Section 3.7.1 to provide a new revised the Operating Licenses. satisfactory time responses in the past. requirement to reduce the power range Date of initial notice in Federal Date of issuance: February 29, 2000. neutron flux-high reactor trip setpoints Register: December 29, 1999 (64 FR Effective date: February 29, 2000. when two or more main steam safety 73098). Amendment Nos.: Unit 1—251; Unit valves (MSSVs) per steam generator are The Commission’s related evaluation 2—242. inoperable. of the amendments is contained in a Facility Operating License Nos. DPR– Date of issuance: March 7, 2000. Safety Evaluation dated March 9, 2000. 77 and DPR–79: Amendments revise the Effective date: March 7, 2000. No significant hazards consideration TS. Amendment No.: 19. comments received: No Date of initial notice in Federal Facility Operating License No. NPF– STP Nuclear Operating Company, Register: October 6, 1999 (64 FR 54381). 90: Amendment revises the TSs. Docket Nos. 50–498 and 50–499, South The supplemental letter of January 13, Date of initial notice in Federal Texas Project, Units 1 and 2, Matagorda 2000, did not expand the scope of the Register: August 11, 1999 (64 FR 43781). County, Texas initial amendment request or change the The letter dated December 17, 1999 NRC staff’s initial proposed no provided clarifying information that did Date of amendment request: significant hazards consideration not change the initial proposed no September 30, 1998, as supplemented determination. significant hazards consideration May 14 and October 21, 1999. The Commission’s related evaluation determination. Brief description of amendments: The of the amendment is contained in a The Commission’s related evaluation amendments revise the South Texas Safety Evaluation dated February 29, of the amendment is contained in a Project, Units 1 and 2, offsite dose 2000. Safety Evaluation dated March 7, 2000. licensing bases to account for (1) No significant hazards consideration No significant hazards consideration operation of the existing steam comments received: No comments received: No generators at reduced feedwater inlet temperatures and (2) operation with the Tennessee Valley Authority, Docket TXU Electric, Docket Nos. 50–445 and new replacement steam generators, also Nos. 50–327 and 50–328, Sequoyah 50–446, Comanche Peak Steam Electric at a reduced feedwater temperature. The Nuclear Plant, Units 1 and 2, Hamilton Station, Unit Nos. 1 and 2, Somervell changes revised calculated offsite doses County, Tennessee County, Texas for four existing Updated Final Safety Date of application for amendments: Date of amendment request: February Analysis Report (UFSAR) Chapter 15 October 14, 1999 as supplemented 11, 1999, as supplemented by letters accidents and added a discussion in February 23 and March 2, 2000. dated September 3 and December 20, Chapter 15 of the radiological analysis Brief description of amendments: 1999. for the voltage-based criteria for steam Revise Section 4.4 of the Technical Brief description of amendments: The generator tubes. Specification (TS) surveillance testing amendments change the Technical Date of issuance: March 2, 2000. Effective date: March 2, 2000, to be requirements and their associated Bases Specifications to authorize an increase implemented within 30 days. to incorporate an alternate repair criteria in the allowable spent fuel storage Amendment Nos.: Unit 1—124; Unit for axial primary water stress corrosion capacity and the crediting of soluble 2—112 cracking at dented tube support plate boron, in the spent fuel pool, for spent Facility Operating License Nos. NPF– intersections. fuel reactivity control. 76 and NPF–80: Amendments authorize Date of issuance: March 8, 2000. Date of issuance: February 24, 2000. revisions to the UFSAR. Effective date: March 8, 2000. Effective date: As of the date of Date of initial notice in Federal Amendment Nos.: Unit 1—252; Unit issuance and shall be implemented Register: November 18, 1998 (63 FR 2—243. within 30 days from the date of 64124). Facility Operating License Nos. DPR– issuance. The May 14 and October 21, 1999, 77 and DPR–79: Amendments revise the Amendment Nos.: 74. supplemental letters provided clarifying TS. Facility Operating License Nos. NPF– information that was within the scope of Date of initial notice in Federal 87 and NPF–89: The amendments the original Federal Register notice and Register: December 29, 1999 (64 FR revised the Technical Specifications. did not change the staff’s initial 73100). The supplemental letters dated Date of initial notice in Federal proposed no significant hazards February 23, and March 2, 2000, did not Register: May 12, 1999 (64 FR 25522). consideration determination. expand the scope of the original The Commission’s related evaluation The Commission’s related evaluation amendment request or change the initial of the amendments is contained in a of the amendments is contained in a proposed no significant hazards Safety Evaluation dated February 24, Safety Evaluation dated March 2, 2000. consideration determination. 2000. No significant hazards consideration The Commission’s related evaluation No significant hazards consideration comments received: No. of the amendment is contained in a comments received: No. Safety Evaluation dated March 8, 2000. Vermont Yankee Nuclear Power Tennessee Valley Authority, Docket No significant hazards consideration Corporation, Docket No. 50–271, Nos. 50–327 and 50–328, Sequoyah comments received: No. Nuclear Plant, Units 1 and 2, Hamilton Vermont Yankee Nuclear Power Station, County, Tennessee Tennessee Valley Authority, Docket No. Vernon, Vermont 50–390 Watts Bar Nuclear Plant, Unit 1, Date of application for amendments: Date of application for amendment: Rhea County, Tennessee August 30, 1999, as supplemented January 20, 2000. January 13, 2000. Date of application for amendment: Brief description of amendment: The Brief description of amendments: The June 25, 1999, as supplemented amendment redefines the functional amendments revise the Technical December 17, 1999. testing criteria for the noble gas activity

VerDate 202000 19:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00098 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15397 monitor instrumentation in the Virginia Electric and Power Company, et Amendment No.: 132. Augmented Off-Gas system. al., Docket Nos. 50–338 and 50–339, Facility Operating License No. NPF– Date of Issuance: March 6, 2000. North Anna Power Station, Units No. 1 42. The amendment revised the Effective date: As of its date of and No. 2, Louisa County, Virginia Technical Specifications. Date of initial notice in Federal issuance, and shall be implemented Date of application for amendments: Register: January 26, 2000 (65 FR 4292). within 30 days. May 6, 1999, as supplemented June 22 Amendment No.: 184. The Commission’s related evaluation and December 16, 1999. of the amendment is contained in a Facility Operating License No. DPR– Brief description of amendments: The 28: Amendment revised the Technical Safety Evaluation dated March 1, 2000. amendments revise the Technical No significant hazards consideration Specifications. Specifications Sections 3.3.1.1; comments received: No. Date of initial notice in Federal 4.3.1.1.1; 4.3.1.1.2; 4.3.1.1.3; 3.3.2.1; Register: February 2, 2000 (65 FR 4999). 4.3.2.1.1; 4.3.2.1.2; 4.3.2.1.3; 3/4.3.1; 3/ Dated at Rockville, Maryland, this 15th day The Commission’s related evaluation 4.3.2 and 6.8.4.9 and Tables 3.3–1; 4.3– of March 2000. For the Nuclear Regulatory Commission. of this amendment is contained in a 1; 3.3–3 and 4.3–2 for Unit 1, and Safety Evaluation dated March 6, 2000. Sections 3.3.1.1; 4.3.1.1.1; 4.3.1.1.2; John A. Zwolinski, No significant hazards consideration 4.3.1.1.3; 3.3.2.1; 4.3.2.1.1; 4.3.2.1.2; Director, Division of Licensing Project comments received: No. Management, Office of Nuclear Reactor 4.3.2.1.3; 3/4.3.1; 3/4.3.2 and 6.8.4.9 and Regulation. Tables 3.3–1; 4.3–1; 3.3–3 and 4.3–2 for Vermont Yankee Nuclear Power [FR Doc. 00–6913 Filed 3–21–00; 8:45 am] Unit 2, to revise the surveillance Corporation, Docket No. 50–271, BILLING CODE 7590±01±P Vermont Yankee Nuclear Power Station, frequency for the Reactor Trip System Vernon, Vermont (RTS) and the Engineered Safety Features Actuation System (ESFAS) NUCLEAR REGULATORY Date of application for amendment: analog instrumentation channels. In COMMISSION February 11, 2000. addition, the allowed outage time and Brief description of amendment: The action times for the RTS and ESFAS Draft Regulatory Guide; Issuance, amendment deletes the requirement to analog instrumentation and the Availability exercise the main steam isolation valves actuation logic are being modified. (MSIVs) twice weekly by partial closure Date of issuance: March 9, 2000 The Nuclear Regulatory Commission and subsequent re-opening. Testing of Effective date: As of the date of has issued for public comment a draft of the MSIVs to demonstrate their safety issuance and shall be implemented a new guide in its Regulatory Guide function will continue to be performed within 90 days from the date of Series. This series has been developed on a quarterly basis in accordance with issuance. to describe and make available to the the Vermont Yankee Inservice Testing Amendment Nos.: 221 and 202. public such information as methods program, Technical Specifications (TSs), Facility Operating License Nos. NPF– acceptable to the NRC staff for and applicable provisions of Section XI 4 and NPF–7. Amendments revised the implementing specific parts of the of the ASME Boiler and Pressure Vessel Technical Specifications. NRC’s regulations, techniques used by Code. The TS change is issued as a Date of initial notice in Federal the staff in evaluating specific problems follow-up amendment to NOED 00–06– Register: June 16, 1999 (64 FR 32291). or postulated accidents, and data 01, which was orally granted on The letters of June 22 and December 16, needed by the staff in its review of February 10, 2000. 1999, contained clarifying information applications for permits and licenses. Date of Issuance: March 9, 2000 only, and did not change the initial no The draft guide, temporarily identified by its task number, DG–1075 Effective date: As of the date of significant hazards consideration (which should be mentioned in all issuance, and shall be implemented determination. correspondence concerning this draft prior to March 25, 2000. The Commission’s related evaluation guide), is titled ‘‘Emergency Planning Amendment No.: 185 of the amendments is contained in a and Preparedness for Nuclear Power Facility Operating License No. DPR– Safety Evaluation dated March 9, 2000. No significant hazards consideration Reactors.’’ This guide is being 28: Amendment revised the Technical comments received: No. developed to propose guidance on Specifications. methods acceptable to the NRC staff for Wolf Creek Nuclear Operating Public comments requested as to complying with the NRC’s regulations Corporation, Docket No. 50–482, Wolf proposed no significant hazards for emergency response plans and considerations: Yes (65 FR 8749) Creek Generating Station, Coffey preparedness at nuclear power reactors. February 22, 2000. That notice provided County, Kansas This draft guide has not received an opportunity to submit comments on Date of amendment request: complete staff approval and does not the Commission’s proposed no December 15, 1999. represent an official NRC staff position. significant hazards consideration Brief description of amendment: The Comments may be accompanied by determination. No comments have been amendment modified the improved relevant information or supporting data. received. The notice also provided for technical specifications (ITS) that were Written comments may be submitted to an opportunity to request a hearing by issued in Amendment No. 123 on March the Rules and Directives Branch, Office March 23, 2000, but indicated that if the 31, 1999, and implemented on of Administration, U.S. Nuclear Commission makes a final no significant December 18, 1999. The changes expand Regulatory Commission, Washington, hazards consideration determination the region of acceptable reactor coolant DC 20555. Copies of comments received any such hearing would take place after pump (RCP) seal injection flow to each may be examined at the NRC Public issuance of the amendment. RCP in Figure 3.5.5–1 and provides 10 Document Room, 2120 L Street NW., The Commission’s related evaluation editorial changes to the ITS. Washington, DC. Comments will be of the amendment is contained in a Date of issuance: March 1, 2000. most helpful if received by May 22, Safety Evaluation dated March 9, 2000. Effective date: March 1, 2000, to be 2000. No significant hazards consideration implemented within 60 days of the date You may also provide comments via comments received: No of issuance. the NRC’s interactive rulemaking

VerDate 202000 19:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00099 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15398 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices website through the NRC home page (‘‘Act’’),1 and Rule 19b–4 thereunder,2 procedures, the Exchange conducts an (http://www.nrc.gov). This site provides notice is hereby given that on March 2, auction every six months during which the availability to upload comments as 2000, the Chicago Board Options members and non-members who have files (any format), if your web browser Exchange, Inc. (‘‘CBOE’’ or ‘‘Exchange’’) qualified for membership may submit supports that function. For information filed with the Securities and Exchange bids equal to the monthly rent that the about the interactive rulemaking Commission (‘‘SEC’’ or ‘‘Commission’’) bidder is willing to pay for a month-to- website, contact Ms. Carol Gallagher, the proposed rule change as described month Permit lease. Upon the close of (301) 415–5905; e-mail [email protected]. in Items I and II below, which Items the bidding period, Permits in the lease For information about the draft guide have been prepared by the Exchange. pool are awarded to the highest bidders and the related documents, contact Mr. The Commission is publishing this in a number equal to the total number R.L. Sullivan at (301) 415–1123; e-mail notice to solicit comments on the of Permits in the lease pool at that time.4 [email protected]. proposed rule change interested persons Last year, certain amendments to Although a time limit is given for and to grant accelerated approval to the these procedures were filed with and comments on this draft guide, proposed rule change. approved by the Commission.5 The most important of these amendments comments and suggestions in I. Self-Regulatory Organization’s established a procedure for Permit connection with items for inclusion in Statement of the Terms of Substance of bidding that is known as a ‘‘Dutch guides currently being developed or the Proposed Rule Change improvements in all published guides auction.’’ Under the Dutch auction are encouraged at any time. The Exchange is proposing to amend procedure, each successful bidder pays Regulatory guides are available for the procedure through which it auctions the price of the lowest successful bid. inspection at the Commission’s Public Option Trading Permits (‘‘Permits’’) Following each Dutch auction, the Document Room, 2120 L Street NW., from the Permit lease pool. The text of Exchange continues to accept bids, with Washington, DC. Requests for single the proposed rule change is available at a minimum bid established at the price copies of draft or final guides (which the Office of the Secretary, CBOE, and set in the most recent Dutch auction. may be reproduced) or for placement on at the Commission. Permit lease payments received by the an automatic distribution list for single II. Self-Regulatory Organization’s Exchange are distributed to certain copies of future draft guides in specific Statement of the Purpose of, and previous holders of NYSE option divisions should be made in writing to Statutory Basis for, the Proposed Rule trading rights, as provided in Rule the U.S. Nuclear Regulatory Change 3.27(a)(3). The Exchange adopted the Commission, Washington, DC 20555, Dutch auction to promote fairer and In its filing with the Commission, the more equitable lease payments by Attention: Reproduction and Exchange included statements having everyone in the auction pay the Distribution Services Section; or by fax concerning the purpose of and basis for same price. to (301) 415–2289, or by e-mail to the proposed rule change and discussed . The first Dutch auction under these any comments it received on the new procedures was held on September Telephone requests cannot be proposed rule change. The text of these accommodated. Regulatory guides are 29, 1999. The auction was publicized statements may be examined at the through various means, and the not copyrighted, and Commission places specified in Items II below. The approval is not required to reproduce submitted bids ranged from $50 to Exchange has prepared summaries, set $5,000 per month, with all but six of the them. forth in Sections A, B, and C below, of bids being for at least $1,300 per month. (5 U.S.C. 552(a)). the most significant aspects of such However, due to an unexpectedly low statements. For the Nuclear Regulatory Commission. number of bidders (only 28 bids were Dated at Rockville, Maryland, this 14th day A. Self-Regulatory Organization’s received for the 28 available Permits), of March 2000. Statement of the Purpose of, and the $50 per month bid was successful. Charles E. Ader, Statutory Basis for, the Proposed Rule Under the existing Dutch auction rules, Director, Program Management, Policy, Change this resulted in a $50 monthly lease rate Development & Analysis Staff, Office of for all 28 successful bidders. This 1. Purpose Nuclear Regulatory Research. undervalued the trading rights conferred [FR Doc. 00–7101 Filed 3–21–00; 8:45 am] Holders of Option Trading Permits by the Permits, based upon the fact that BILLING CODE 7590±01±P have specified limited trading rights set the median of the bids received last forth in CBOE Rule 3.27. Section (a)(3) September 29 was $2,750, and the of Rule 3.27 provides for the creation of average of all the bids was $2,525. SECURITIES AND EXCHANGE a Permit lease pool to be administered To address this situation, the COMMISSION by the Exchange. The procedures for the Exchange proposes to amend the Permit administration of this lease pool were Dutch auction process by establishing a [Release No. 34±42527; File No. SR±CBOE± previously filed with and approved by minimum bid level in all Dutch 00±05] the Commission.3 Under these auctions at $1,000. The Exchange believes that this level is below the fair Self-Regulatory Organizations; Notice 1 15 U.S.C. 78s(b)(1). value of the Permits, as reflected by the of Filing and Order Granting 2 17 CFR 240.19b–4. median and average of the bids just Accelerated Approval of Proposed 3 The procedures for the administration of the Rule Change by the Chicago Board Permit lease pool were filed with the Commission in SR–CBOE–97–14. This filing provided for the amended the manner in which the CBOE assesses Options Exchange, Inc. Relating to issuance of Permits in connection with the transfer the fee that is charged when a person submits a bid Option Trading Permit Auction of the options business of the New York Stock to receive a Permit. See Securities Exchange Act Procedures Exchange, Inc. (‘‘NYSE’’) to CBOE and defined the Release No. 39179 (October 1, 1997), 62 FR 52602 rights and obligations associated with Permits. See (October 8, 1997). March 14, 2000. Securities Exchange Act Release No. 38541 (April 4 Id. 23, 1997), 62 FR 23516 (April 30, 1997). The CBOE 5 See Securities Exchange Act Release No. 41912 Pursuant to Section 19(b)(1) of the later amended the procedures for administering the (September 24, 1999), 64 FR 53757 (October 4, Securities Exchange Act of 1934 Permit lease pool in SR–CBOE–97–47, which 1999).

VerDate 202000 17:38 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00100 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices 15399 noted, and that this minimum bid IV. Commission’s Findings and Other publication of the notice of filing thereof amount is needed to ensure that the Granting Accelerated Approval of in the Federal Register. price determined by the Dutch auction Proposed Rule Change It is therefore ordered, pursuant to is fair and equitable. 10 The Commission finds that the Section 19(b)(2) of the Act, that the 2. Statutory Basis proposed rule change is consistent with proposed rule change (SR–CBOE–00– the requirements of the Act and the 05) is hereby approved on an The Exchange believes that the rules and regulations thereunder accelerated basis. revised Dutch auction procedure for the applicable to a national securities For the Commission, by the Division of Permit lease pool will more effectively exchange, and in particular, with the Market Regulations, pursuant to delegated ensure that the amounts paid for requirements of Section 6(b)(4),7 authority.11 Permits by each successful bidder are because the proposed rule change Margaret H. McFarland, fair and equitable. As such, the provides for the equitable allocation of Deputy Secretary. Exchange believes that the proposed reasonable dues, fees, and other charges. [FR Doc. 00–7068 Filed 3–21–00; 8:45 am] rule change is consistent with Section CBOE Rule 3.27 provides for a Permit BILLING CODE 8010±01±M 6(b)(4) 6 of the Act in that is it designed lease pool to distribute Permits to provide for the equitable allocation of originating from the transfer of the reasonable dues, fees, and other charges options business of the NYSE to CBOE. SECURITIES AND EXCHANGE among its members and issuers and Lease payments on the Permits are paid COMMISSION other persons using its facilities. to persons identified by the NYSE. Under the existing Dutch auction rules, [Release No. 34±42533; File No. SR±MSRB± B. Self-Regulatory Organization’s there is no limit on the monthly bid for 00±04] Statement on Burden on Competition a Permit. Consequently, a low bid can, and did, succeed as the lease amount for The Exchange does not believe that Self-Regulatory Organizations; Notice all Permits, even if the average of the the proposed rule will impose any of Filing and Immediate Effectiveness bids is significantly higher (indicating a of Proposed Rule Change by the inappropriate burden on competition. higher market value for the Permits). Municipal Securities Rulemaking The proposed rule change establishes a C. Self-Regulatory Organization’s Board Relating to Interpretation of Statement on Comments on the minimum bid level of $1,000 for the Permits. The Commission finds that Rule G±37 on Political Contributions Proposed Rule Change Received From and Prohibitions on Municipal Members, Participants or Others establishing this minimum bid is a reasonable and appropriate measure to Securities Business No written comments were either attempt to prevent undervaluing the March 15, 2000. solicited or received. trading rights conferred by the Permits. CBOE has requested that the On March 2, 2000, the Municipal III. Solicitation of Comments Commission find good cause for Securities Rulemaking Board (‘‘Board’’ or ‘‘MSRB’’) filed with the Securities Interested persons are invited to approving the proposed rule change and Exchange Commission submit written data, views, and prior to the thirtieth day after the date (‘‘Commission’’ or ‘‘SEC’’) a proposed arguments concerning the foregoing, of publication of notice in the Federal rule change, pursuant to Section including whether the proposed rule Register. Specifically, the Exchange 19(b)(1) of the Securities Exchange Act change is consistent with the Act. requests that the Commission accelerate of 1934 (‘‘Act’’),1 and Rule 19b–4 Persons making written submissions the operative date of the proposed rule thereunder.2 The proposed rule change should file six copies thereof with the change so the Exchange can employ the revised Dutch auction procedures in the is described in Items, I, II, and III below, Secretary, Securities and Exchange next scheduled auction, that of March which Items have been prepared by the Commission, 450 Fifth Street, N.W., 15, 2000. The Exchange believes that Board. The purpose of the proposed rule Washington, DC 20549–0609. Copies of accelerating approval of the proposed change is to provide interpretive the submissions, all subsequent rule change will enable the Exchange to guidance concerning Rule G–37, on amendments, all written statements implement a procedure that more fairly political contributions and prohibitions with respect to the proposed rule and equitably allocates the cost of the on municipal securities business. The change that are filed with the lease pool Permits for the benefit of the Board has designated this proposed rule Commission, and all written 8 lease payment recipient. The change as constituting a stated policy, communications relating to the Commission believes that permitting the practice, or interpretation with respect proposed rule change between the Exchange to use the revised procedures to the meaning, administration, or Commission and any person, other than in the next Dutch auction would ensure enforcement of an existing rule of the those that may be withheld from the that the Permits were not significantly Board under Section 19(b)(3)(A) of the public in accordance with the undervalued at another auction. Act,3 which renders the proposed rule provisions of 5 U.S.C. 552, will be Accordingly, the Commission finds change effective upon receipt of this available for inspection and copying at good cause, consistent with Sections filing by the Commission. The the Commission’s Public Reference 6(b)(5) and 19(b)(2) of the Act,9 to Commission is publishing this notice to Room. Copies of such filing will also be approve the proposed rule change prior solicit comments on the proposed rule available for inspection and copying at to the thirtieth day after the date of change from interested persons. the principal office of the Exchange. All 7 submissions should refer to File No. 15 U.S.C. 78f(b)(4). 10 15 U.S.C. 78s(b)(2). 8 Telephone conversation between Chris Hill, SR–CBOE–00–05 and should be 11 17 CFR 200.30–3(a)(12). Attorney, CBOE, and Heather Traeger, Attorney, 1 submitted by April 12, 2000. Division of Market Regulations, SEC, on March 7, 15 U.S.C. 78s(b)(1). 2000. 2 17 CFR 240.19b–4. 6 15 U.S.C. 78f(b)(4). 9 15 U.S.C. 78f(b)(5) and 78s(b)(2). 3 15 U.S.C. 78s(b)(3)(A).

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I. Self-Regulatory Organization’s rule change. The texts of these facilitating transactions in municipal Statement of the Terms of Substance of statements may be examined at the securities, to remove impediments to the Proposed Rule Change places specified in Item IV below. The and perfect the mechanism of a free and The Board has filed a proposed rule Board has prepared summaries, set forth open market in municipal securities, change consisting of a notice of in Section A, B, and C below, of the and, in general, to protect investors and interpretation, in question-and-answer most significant aspects of such the public interest. statements. format, concerning Rule G–37 (hereafter B. Self-Regulatory Organization’s referred to as ‘‘the proposed rule A. Self-Regulatory Organization’s Statement on Burden on Competition change’’). The proposed rule change is Statement of the Purpose of, and The Board does not believe that the as follows in italic: Statutory Basis for, the Proposed Rule proposed rule change will impose any SCOPE OF WAIVER PROVISION IN Change burden on competition not necessary or RULE G–37(i) 1. Purpose appropriate in furtherance of the Q: If an enforcement agency grants an On April 7, 1994, the Commission proposes of the Act since it applies exemption from a ban on municipal approved Board Rule G–37, on political equally to all brokers, dealers and securities business pursuant to Rule G– contributions and prohibitions on municipal securities dealers. 37(i), may this exemption be applied municipal securities business.4 Since C. Self-Regulatory Organization’s retroactively so that any municipal that time, the Board has received Statement on Comments on the securities business engaged in after the numerous inquiries concerning the Proposed Rule Change Received from ban had gone into effect but prior to the application of the rule. In order to assist Members, Participants, or Others date on which the exemption was the municipal securities industry and, Written comments were neither granted would not be viewed as a Rule in particular, brokers, dealers, and solicited nor received. G–37 violation? municipal securities dealers in A: Rule G–37(i) allows the understanding and complying with the III. Date of Effectiveness of the enforcement agencies to exempt a provisions of the rule, the Board Proposed Rule Change and Timing for dealer from a ban on municipal published nine prior notices of Commission Action securities business. It is the Board’s view interpretation which set forth, in The Board has designated this that such an exemption is only effective question-and-answer format, general proposed rule change as constituting a as of the date of the exemption. Rule G– guidance on Rule G–37.5 In prior filings stated policy, practice, or interpretation 37(i) does not contain a provision with the Commission, the Board stated with respect to the meaning, allowing for the retroactive application that it will continue to monitor the administration, or enforcement of an of the exemption. Thus, a dealer would application of Rule G–37 and, from time existing Board rule under Section violate Rule G–37 if, prior to the date of to time, will publish additional notices 19(b)(3)(A) of the Act,8 which renders the exemption, the dealer engaged in of interpretations, as necessary.6 the proposed rule change effective upon municipal securities business with an Recently, the Board was asked about the receipt of this filing by the Commission. issuer while subject to a ban with this scope of the waiver provision in Rule issuer because of a political G–37(i). Accordingly, the Board is IV. Solicitation of Comments contribution. As with any violation of a publishing this tenth set of questions Interested persons are invited to Board rule, the enforcement agencies and answers. submit written data, views, and have discretion in determining the type arguments concerning the foregoing, 2. Basis and extent of enforcement action including whether the proposed rule appropriate for such violation, in light The Board believes that the proposed change is consistent with the Act. of the specific facts and circumstances. rule change is consistent with Section persons making written submissions If an enforcement agency has granted an 15B(b)(2)(C) of the Act,7 which requires, should file six copies thereof with the exemption to a dealer from the ban on in pertinent part, that the Board’s rules Secretary, Securities and Exchange municipal securities business, the facts shall: Commission, 450 Fifth Street, N.W., and circumstances considered by such be designed to prevent fraudulent and Washington, D.C. 20549–0609. Copies of agency in granting the exemption could manipulative acts and practices, to the submission, all subsequent appropriately also be considered promote just and equitable principles of amendments, all written statements (together with any other relevant facts trade, to foster cooperation and with respect to the proposed rule and circumstances) in determining coordination with persons engaged in change that are filed with the what, if any, enforcement action should regulating, clearing, settling, processing Commission, and all written be taken against such dealer if it had information with respect to, and communications relating to the engaged in municipal securities proposed rule change between the business after the ban on such business 4 Securities Exchange Act Release No. 33868, 59 Commission and any person, other than FR 17621 (April 13, 1994). The rule applies to became effective but prior to the date on contributions made on and after April 25, 1994. those that may be withheld from the which the exemption was granted. 5 See MSRB Reports, Vol. 14, No. 3 (June 1994) public in accordance with the * * * * * at 11–16; Vol. 14, No. 4 (Aug. 1994) at 27–31; Vol. provisions of 5 U.S.C. 552, will be 14, No. 5 (Dec. 1994) at 8; Vol. 15, No. 1 (April available for inspection and copying in II. Self-Regulatory Organization’s 1995) at 21; Vol. 15, No. 2 (July 1995) at 3–4; Vol. the Commission’s Public Reference Statement of the Purpose of, and 16, No. 1 (Jan. 1996) at 31; Vol. 16, No. 3 (Sept. 1996) at 35–36; Vol. 17, No. 3 (Oct. 1997) at 11– Room. Copies of the filing will also be Statutory Basis for, the Proposed Rule 12; and Vol. 18, No. 2 (Aug. 1998) at 11–12. See available for inspection and copying at Change also MSRB Rule Book (January 1, 2000) at 195–204. the Board’s principal offices. All In its filing with the Commission, the 6 See Securities Exchange Act Release No. 34161 submissions should refer to File No. (June 6, 1994, 59 FR 30379 (June 13, 1994) (File No. Board included statements concerning SR–MSRB–94–6) and Securities Exchange Act SR–MSRB–00–04 and should be the purpose of and basis for the Release No. 34603 (August 25, 1994), 59 FR 45049 submitted by April 12, 2000. proposed rule change and discussed any (August 31, 1994) (File No. SR–MSRB–94–15). comments it received on the proposed 7 15 U.S.C. 78o–4(b)(2)(C). 8 15 U.S.C. 78s(b)(3)(A).

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For the Commission, by the Division of This order approves the proposed rule be firm for the price and size of those Market Regulation, pursuant to delegated change. quotations, and participate in CAES on authority.9 the same terms as other ITS/CAES II. Description Margaret H. McFarland, Market Makers.8 This selection would Deputy Secretary. Nasdaq operates a trading system also impose the additional compliance [FR Doc. 00–7034 Filed 3–21–00; 8:45 am] known as the Computer Assisted duties traditionally required of market BILLING CODE 8010±01±M Execution System (‘‘CAES’’), which makers participating in ITS/CAES, allows NASD member firms to direct including, for example, the rules orders in Consolidated Quotation concerning pre-opening application, SECURITIES AND EXCHANGE System (‘‘CQS’’) securities (‘‘i.e., listed trade through, locked and crossed COMMISSION securities) to market makers for markets, and block transactions.9 ECNs execution. Through CAES, NASD order- [Release No. 34±42536; File No. SR±NASD± and ATSs would assume the added 99±75] entry firms and market makers can responsibility for implementing all participate in the ‘‘third market’’ 6 by technological and programming Self-Regulatory Organizations; entering market and limit orders in modifications to their internal systems National Association of Securities exchange-listed securities to be to demonstrate compliance with these Dealers, Inc.; Order Granting Approval executed against other market makers requirements. to Proposed Rule Change Relating to quoting in those securities. CAES also In registering as ITS/CAES Market ECN and ATS Participation in the ITS/ serves as the NASD’s interface with the Makers, ECNs and ATSs will be CAES System Intermarket Trading System (‘‘ITS’’), required to operate on terms that are the which links the national securities same as traditional CAES Market March 16, 2000. exchanges.7 Makers. In particular, within the ITS/ I. Introduction Traditional market makers actively CAES market, there will be an absolute make markets in a large number of New prohibition against quote access fees. On December 27, 1999, the National York Stock Exchange and American Nasdaq believes that, because of the Association of Securities Dealers, Inc. Stock Exchange listed stocks in the third CAES interface with ITS, the (‘‘NASD’’ or ‘‘Association’’), through its market. While many NASD member implementation on quote access fees wholly owned subsidiary, The Nasdaq firms act as third market makers today, would be infeasible within CAES and Stock Market, Inc. (‘‘Nasdaq’’), Nasdaq believes that certain would not be consistent with the terms submitted to the Securities and enhancements to CAES could provide of the ITS Plan. Exchange Commission (‘‘Commission’’), additional benefits to all NASD In addition, as discussed above, the pursuant to Section 19(b)(1) of the members. The enhancements would NASD intends to modify the operation Securities Exchange Act of 1934 allow CAES Market Makers to compete of CAES to accommodate ECN and ATS (‘‘Exchange Act’’ or ‘‘Act’’) 1 and Rule more effectively with all markets by participation. In the current CAES 19b–4 thereunder,2 a proposed rule providing the best possible executions environment, all orders are executed change to permit Electronic for investors, thereby improving the against market makers through an Communication Networks (‘‘ECNs’’) and national market system. automatic executive process. The Alternative Trading Systems (‘‘ATSs’’) 3 Accordingly, Nasdaq proposes to system delivers a report of a completed to register as market makers in listed allow ECNs and ATSs to choose to be execution at the market maker’s quoted securities using Nasdaq quotation and ITS/CAES Market Makers by amending price and size when another CAES trading facilities. NASD Rules 5210(e), 5220 and 6320, to market maker or exchange chooses to The proposed rule change was include ECNs and ATSs within the access that market maker’s quote. published for comment in the Federal definition of ‘‘ITS/CAES Market Maker’’ Because ECNs and ATSs are reluctant to Register on February 1, 2000.4 One and ‘‘CQS Market Maker,’’ and to participate within the current automatic comment was received on the proposal.5 require the execution of an ECN and execution environment, Nasdaq is ATS addendum to the ITS/CAES Market working on modifications to CAES to 9 17 CFR 200.30–3(a)(12). Maker application agreement. These 1 facilitate order delivery interaction for 15 U.S.C. 78s(b)(1). changes would allow ECNs and ATSs to 2 17 CFR 240.19b–4. any ITS/CAES Market Maker that 3 The term ECN is defined, with certain compete on an equal basis with other chooses to operate in an order delivery exceptions, as any electronic system that widely market makers, yet also require ECNs mode (with an automated response to disseminates to third parties orders entered into the and ATSs to assume the additional the delivered orders). The change would ECN by an exchange market maker or OTC market obligations and restrictions imposed maker, and permits such orders to be executed make it clear that all ITS/CAES Market against in whole or in part. See Exchange Act Rule upon ITS/CAES Market Makers by the Makers could receive the delivery of an 11Ac1–1(a)(8). The term ATS is defined more ITS Plan and NASD rules. An ECN or order (as opposed to an execution broadly as any organization, association, person, ATS that chooses to exercise this option report), and immediately accept or group of persons, or system: (1) That constitutes, of registration, consequently, would be maintains, or provides a market place or facilities decline that delivery by automated for bringing together purchasers and sellers of required to post two-sided quotations, securities or for otherwise performing with respect 8 With respect to the two-sided quotation to securities the functions commonly performed by Herrington & Sutcliffe, LLP, on behalf of MarketXT, obligation, ECN and ATS ITS/CAES Market Makers a stock exchange within the meaning of Exchange dated March 3, 2000 (‘‘MarketXT Letter’’). will be permitted to auto-quote in 100 share lots Act Rule 3b–16; and (2) that does not: (i) Set rules 6 The third market refers to over-the-counter away from the national best bid and offer (‘‘NBBO’’) governing the conduct of subscribers other than the trading of exchange-listed securities. to the extent that a particular ECN or ATS does not conduct of such subscribers’ trading on such 7 ITS is a communications network designed to have a customer order to represent. If an ECN or organization, association, person, group of persons, facilitate intermarket trading in exchange-listed ATS ITS/CAES Market Maker quotation is accessed or system; or (ii) discipline subscribers other than securities by linking the NASD and the national because such quotation becomes the NBBO or is by exclusion from trading. See Regulation ATS, Sec. securities exchanges. Operation of ITS is governed subject to another rule requiring its execution, the 242.300(a). Essentially, an ECN is a type of ATS. by a national market system plan known as the ECN or ATS ITS/CAES Market Maker will be 4 See Securities Exchange Act Release No. 42353 ‘‘Plan for the Purpose of Creating and Operating an required to assume a proprietary position in that (January 20, 2000), 65 FR 4857. Intermarket Communications Linkage Pursuant to security. 5 See letter to Jonathan G. Katz, Secretary, Section 11A(a)(3)(B) of the Securities Exchange Act 9 NASD Rules 5240, 5262, 5263, and 5264, Commission, from Sam Scott Miller, Orrick, of 1934’’ (‘‘ITS Plan’’). respectively.

VerDate 202000 17:38 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00103 Fmt 4703 Sfmt 4703 E:\FR\FM\22MRN1.SGM pfrm08 PsN: 22MRN1 15402 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Notices means.10 A decline would be with respect to quotations and securities. While these benefits have permissible only if it were consistent transactions in securities; (4) the accrued to Nasdaq securities, ECNs have with the Commission’s and the NASD’s practicability of brokers executing not traded in great measures in firm quote rules. investors’ orders in the best market; and securities listed on traditional Nasdaq contends that this (5) an opportunity for investors’ orders exchanges. modification will allow market makers to be executed without the participation Linking ECNs and ATSs to ITS by to operate effectively and rapidly in fast of a dealer. Section 11A(a)(1)(D) states permitting them to register as ITS/CAES moving markets. In comparing the that the linking of all markets for Market Makers will improve investors’ proposed CAES order delivery system qualified securities through ability to obtain best execution of their with the ITS configuration, Nasdaq communications and data processing orders in listed stocks. Furthermore, the anticipates that CAES order delivery facilities will foster efficiency, enhance Commission believes that ECN and ATS market makers will be capable of competition, increase the information participation in CAES should have a responding to CAES and ITS orders in available to brokers, dealers and positive impact upon the third market, approximately 2–5 seconds.11 investors, facilitate the offsetting of as well as trading in listed securities investor’s orders, and contribute the overall, by adding new competitive III. Discussion best execution of such orders. Section quoting vehicles, thereby contributing to The Commission finds that the 11A(a)(2) directs the Commission to a more dynamic and competitive proposed rule change is consistent with facilitate the establishment of a national market. the requirements of the Act and the market system for qualified securities. The Commission believes it is rules and regulations thereunder Overall, the Commission believes that appropriate to require ECNs and ATSs applicable to the Association, and, in the proposed rule promotes the that register as ITS/CAES Market particular, with the requirements of objectives of these sections of the Makers to fulfill the same intermarket Section 15A(b)(6).12 Section 15A(b)(6) Exchange Act by encouraging obligations as are required of traditional requires that the rules of a registered participation in the national market market makers. The Commission national securities association be system for listed securities and expects the NASD to ensure that ECN designed to prevent fraudulent and providing fair access for all NASD and ATS ITS/CAES Market Makers (as manipulative acts and practices, to members, ultimately benefiting well as non-ECN and non-ATS ITS/ promote just and equitable principles of investors and the public interest. CAES Market Makers) carry our trade, to foster cooperation and Because ITS remains the primary link necessary technical and programming coordination with persons engaged in between the registered exchanges and modifications to their internal systems regulating, clearing, settling, processing Nasdaq for listed securities, ECN and to demonstrate an ability to comply information with respect to, and ATS access to ITS is an important with these obligations. facilitating transactions in securities, to Commission goal. Specifically, the ECNs and ATSs that register as ITS/ remove impediments to and perfect the Commission seeks to make information CAES Market Makers will be required to post and maintain two-sided quotations, mechanism of a free and open market non prices, volume, and quotes for as well as be firm for the price and size and a national market system, and, in securities in all markets available to all of those quotations, as required in the general, to protect investors and the investors, so that buyers and sellers of ITS Plan. In addition, ECN and ATS public interest; and the rules are not securities, wherever located, can make ITS/CAES Market Makers will be designed to permit unfair informed investment decisions and not permitted to autoquote in 100 share lots discrimination between customers, pay more than the lowest price at which away from the NBBO when they do not issuers, brokers, or dealers. someone is willing to sell, and not sell have a customer order to represent. The In addition, the Commission believes for less than the highest price a buyer Commission finds it consistent with the that the proposed rule change is is prepared to offer. The Commission Exchange Act to require ECNs and ATSs consistent with the provisions of notes, however, that information alone is not enough. There must be an avenue that participate in ITS/CAES to display Sections 11A(a)(1)(C), 11A(a)(1)(D), and two-sided quotes at all times and to be 11A(a)(2) of the Exchange Act. Section for accessing markets disseminating market information. Integrating ECNs firm for their displayed quotes, 11A(a)(1)(C) provides that it is in the including those quotes that do not public interest and appropriate for the and ATSs into ITS provides access from other ITS/CAES Market Makers and represent customers orders. In the protection of investors and the Commission’s view, it is reasonable to maintenance of fair and orderly markets other markets to the quotes displayed by 13 permit an ECN or ATS ITS/CAES to assure: (1) Economically efficient the ECNs and ATSs. The number of ECNs and ATSs has Market Maker to autoquote in 100 share execution of securities transactions; (2) lots away from the NBBO when it does fair competition among brokers and increased significantly over the past several years, as has their share of the not have a customer order to represent dealers; (3) the availability to brokers, because ECNs and ATSs typically do dealers and investors of information market in Nasdaq securities. This increased competition has benefited the not take proprietary positions. An ECN or ATS ITS/CAES Market Maker, 10 If order delivery is selected, the ITS/CAES marketplace in many ways—among Market Maker (ECN or non-ECN) would be required other things, it has encouraged the however, will be required to be firm for to demonstrate to Nasdaq its ability to conform to existing exchanges to improve their its displayed quote, in accordance with system specifications, which would mandate an services, and has given institutional Commission and NASD firm quote rules automated and immediate acceptance or rejection, for any orders that seek to trade with consistent with Commission and NASD firm quote investors additional venues in which to obligations. trade. In addition, ECNs have helped to that quote. ECNs and ATSs could 11 The ITS Plan does not have any requirement contribute to narrower spreads to the reduce the likelihood of an execution at related to response times. In fact, in ITS, when one benefit of investors, including retail that quote by quoting away from the participant forwards a commitment to another, the investors, who have enjoyed significant best market price. Although ECNs and commitment has a life of one minute or two ATSs do not generally assume minutes. The obligation to respond to an ITS cost savings when trading Nasdaq commitment comes from the Commission Firm proprietary positions in the securities Quote Rule. 17 CFR 240.11Ac1–1. 13 ECNs also are accessible through becoming a they trade, the Commission believes it is 12 15 U.S.C. 780–3(b)(6). subscriber to the system, and by telephone. appropriate to require them to comply

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Conclusion be required to follow the NASD’s rules, done through CAES, as well as those as well as the terms of the ITS Plan, done through the ITS/CAES interface, It is therefore ordered, pursuant to concerning the pre-opening application, are executed efficiently. The ability of Section 19(b)(2) of the Act,18 that the trade throughs, locked and crossed an ITS/CAES Market Maker to select the proposed rule change (SR–NASD–99– markets, and block transactions.14 These mode of operation in which it receives 75) is approved. market integrity provisions provide for orders of ITS commitments addresses For the Commission, by the Division of continuity of transaction among the the ECNs’ concerns over exposure to Market Regulation, pursuant to delegated various market centers. double executions.16 Specifically, authority.19 The Commission also believes it is allowing an ITS/CAES Market Maker to Margaret H. McFarland, appropriate to prohibit ECNs and ATSs operate in order delivery mode will Deputy Secretary. that choose to register as ITS/CAES permit it to suspend acceptance of [FR Doc. 00–7067 Filed 3–21–00; 8:45 am] orders when it is in the process of Market Makers from charging quote BILLING CODE 8010±01±M access fees for trades effected through updating its quote, providing such CAES. Market Makers are prohibited action is in compliance with the Commission’s and NASD’s firm quote under NASD rules from charging access DEPARTMENT OF STATE fees when trading through CAES. rules. Moreover, trades in ITS between Finally, the Commission believes that [Public Notice 3260] markets are not subject to market fees, the proposed rule change is not even though these markets charge fees inconsistent with the terms of the ITS Culturally Significant Objects Imported to their members for executing trades on Plan. Specifically, under the proposed for Exhibition Determinations: that market.15 rule change, ITS/CAES Market Makers ``Michelangelo to Picasso: Master The Commission also believes it is not will continue to be required to provide Drawings From the Collection of the inconsistent with the Exchange Act to automated responses to all ITS Albertina, Vienna'' allow the CAES functionality to operate commitments sent by other exchange participants to the third market. The DEPARTMENT: United States Department in order delivery mode, as opposed to of State. automatic execution mode, in accessing Commission notes that, although the ACTION: Notice. an ITS/CAES Market Maker’s quote. proposed rule change may affect the operation of the ITS pre-opening ECNs, which, to date, have functioned SUMMARY: Notice is hereby given of the application,17 no amendment to the ITS only within order delivery systems (e.g., following determinations: Pursuant to Plan is technically required. SelectNet for Nasdaq securities), have the authority vested in me by the Act of Specifically, the ITS Plan defines ‘‘ITS/ been reluctant to participate in CAES October 19, 1965 [79 Stat. 985, 22 U.S.C. CAES Market Maker’’ as an ‘‘NASD due to the automatic execution feature. 2459], the Foreign Affairs Reform and member that is registered as a market The proposed rule change will allow all Restructuring Act of 1998 [112 Stat. maker with the NASD * * * with ITS/CAES Market Makers, including 2681 et seq.], Delegation of Authority respect to one or more specified ITS/ ECNs and ATSs that choose to register No. 234 of October 1, 1999 [64 FR CAES securities.’’ Thus, the NASD’s as such, to operate in CAES in either 56014], and Delegation of Authority No. proposed definition of ‘‘ITS/CAES order delivery mode or automatic 236 of October 19, 1999, as amended by Market Maker’’ does not conflict with or Delegation of Authority No. 236–1 of 14 A trade through occurs when a transaction is November 9, 1999, I hereby determine effected at a price below the best prevailing bid, or 16 Double execution could occur if an ECN above the best prevailing offer. The NASD’s rules displays a customer order to buy and an order to that the objects to be included in the and the ITS Plan require price protection among the sell comes in through ITS, while another order to exhibit, ‘‘Michelangelo to Picasso: various markets by ensuring that the best national sell comes into the ECN at the same time. Master Drawings from the Collection of bids and offers are provided opportunities to trade Automatic execution would force the ECN to honor the Albertina, Vienna,’’ imported from with other markets effecting trades outside the best both sell orders. national quote. The NASD’s rules and the ITS Plan 17 Generally, under ITS rules, an exchange abroad for the temporary exhibition also contain a block trade policy that provides specialist is required to accept those pre-opening without profit within the United States, special rights to any market displaying the best responses sent to the exchange by market makers are of cultural significance. These national bid or offer when block-size transactions from other participant markets prior to the opening objects are imported pursuant to a loan are occurring in another market. of their markets for trading in the security. If, 15 The Commission received one comment letter however, one or more market makers from other agreement with the foreign lender. I also from an ECN regarding the proposed rule change. participant markets have already opened trading in determine that the temporary exhibition See MarketXT Letter. MarketXT believes that ECNs a security, the exchange specialist is not required or display of the exhibit objects at the should be permitted to charge fees in the ITS/CAES to (but may in his discretion) accept pre-opening Frick Collection, New York, NY, from market because Nasdaq has proposed a rule change responses from the other participant market for the that would permit market makers to charge an purpose of including them in the opening on or about April 17, 2000, to on or access fee for agency quotes in the Nasdaq market. transaction. Because a pre-opening response from about June 18, 2000, is in the national See Securities Exchange Act Release No. 41343 the ITS/CAES market is sent in aggregate form—that interest. Public Notice of these (April 28, 1999), 64 FR 24430 (May 6, 1999) (File is, pre-opening third market buy and sell interest determinations is ordered to be No. SR–NASD–99–16). ECN fees have been from all third market makers—is sent as one permitted in the Nasdaq market since ECNs were response, it is possible that an ECN and ATS ITS/ published in the Federal Register. first linked to that market in 1997. The Commission CAES Market Maker trading a security before the FOR FURTHER INFORMATION CONTACT: For has stated that it is considering options to reduce opening will trigger the exception to the further information, including a list of or eliminate ECN fees in the Nasdaq market. The requirement that the exchange specialist accept a exhibit objects, contact Paul W. Commission does not believe that investors’ pre-opening response from the third market. The interests are best served by permitting ECN fees in same procedure applies of re-openings following the ITS market, where fees are not permitted among trading halts. See Exhibit A of the ITS Plan, ‘‘Pre- 18 15 U.S.C. 78s(b)(2). existing participants. Opening Application rule,’’ Sec. (b)(iii)(B). 19 17 CFR 200.30–3(a)(12).

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Manning, Attorney-Adviser, Office of Washington, DC. 20591; telephone (202) 25th annual Pomona Valley Air Fair at the Legal Adviser, 202/619–5997, and 267–3132. Cable Airport, Upland, California, on the address is Room 700, United States FOR FURTHER INFORMATION CONTACT: January 8 and 9, 2000, for compensation Department of State, 301 4th Street, SW, Cherie Jack (202) 267–7271 or Vanessa or hire, without complying with certain Washington, DC 20547–0001. Wilkins (202) 267–8029 Office of anti-drug and alcohol misuse prevention Dated: March 15, 2000. Rulemaking (ARM–1), Federal Aviation requirements of part 135. William B. Bader, Administration, 800 Independence Grant, 01/05/2000, Exemption No. 7094 Assistant Secretary for Educational and Avenue, SW, Washington, DC 20591. This notice is published pursuant to Docket No.: 29795. Cultural Affairs, United States Department Petitioner: Western North Carolina paragraphs (c), (e), and (g) of § 11.27 of of State. Pilots Association, Inc. Part 11 of the Federal Aviation [FR Doc. 00–7105 Filed 3–21–00; 8:45 am] Section of the FAR Affected: 14 CFR Regulations (14 CFR Part 11). BILLING CODE 4710±28±P 135.251, 135.255, 135.353, and Issued in Washington, DC., on March 16, appendixes I and J to part 121. 2000. Description of Relief Sought/ DEPARTMENT OF TRANSPORTATION Donald P. Byrne, Disposition: To permit the WNCPA to Assistant Chief Counsel for Regulations. conduct local sightseeing flights at the Federal Aviation Administration Asheville Regional Airport for fall Dispositions of Petitions [Summary Notice No. PE±2000±10] scenic rides on October 23 and 24, 1999, Docket No.: 26183. for compensation or hire, without Petitions for Exemption; Summary of Petitioner: Air Transport Association complying with certain anti-drug and Petitions Received; Dispositions of of America. alcohol misuse prevention requirements Petitions Issued Section of the FAR Affected: 14 CFR of part 135. appendix H to part 121. AGENCY: Federal Aviation Description of Relief Sought/ Grant, 10/22/1999, Exemption No. 7049 Administration (FAA), DOT. Disposition: To permit member airlines Docket No.: 29846. ACTION: Notice of petitions for of the ATA and other similarly situated Petitioner: Air Cargo Carriers, Inc. exemption received and of dispositions part 121 certificate holders to continue Section of the FAR Affected: 14 CFR of prior petitions. to use Level C simulators for pilot-in- 135.143(c)(2). command initial and upgrade training Description of Relief Sought/ SUMMARY: Pursuant to FAA’s rulemaking and checking. Disposition: To permit Air Cargo to provisions governing the application, operate certain aircraft under part 135 processing, and disposition of petitions Grant, 01/31/2000, Exemption No. without a TSO–C112 (Mode S) for exemption (14 CFR Part 11), this 54000 transponder installed in each aircraft. notice contains a summary of certain Docket No.: 27202. Grant, 01/11/2000, Exemption No. 7124 petitions seeking relief from specified Petitioner: Skydive Arizona, Inc. requirements of the Federal Aviation Section of the FAR Affected: 14 CFR Docket No.: 29879. Petitioner: Santoku Aviation Electric, Regulations (14 CFR Chapter I), 105.43(a). Inc. dispositions of certain petitions Description of Relief Sought/ Section of the FAR Affected: 14 CFR previously received, and corrections. Disposition: To permit SAI to allow 145.47(b). The purpose of this notice is to improve nonstudent foreign nationals to the public’s awareness of, and Description of Relief Sought/ participate in SAI-sponsored parachute Disposition: To permit SAE to substitute participation in, this aspect of FAA’s jumping events without complying with regulatory activities. Neither publication the calibration standards of the National the parachute equipment and packing Research Laboratory of Metrology and of this notice nor the inclusion or requirements of § 105.43(a). omission of information in the summary the Electrotechnical Laboratory, Japan’s is intended to affect the legal status of Grant, 01/21/2000, Exemption No. 7106 national standards organizations, for the calibration standards of the U.S. any petition or its final disposition. Docket No.: 29076. National Institute of Standards and DATES: Comments on petitions received Petitioner: RR Investments, Inc., d.b.a. Technology, formerly the National must identify the petition docket Million Air Dallas. Bureau of Standards, to test its number involved and must be received Section of the FAR Affected: 14 CFR inspection and test equipment. on or before April 11, 2000. 135.143(c)(2). ADDRESSES: Send comments on any Description of Relief Sought/ Grant, 01/14/2000, Exemption No. 7105 petition in triplicate to: Federal Disposition: To permit Million Air [FR Doc. 00–7043 Filed 3–21–00; 8:45 am] Aviation Administration, Office of the Dallas to operate certain aircraft under BILLING CODE 4910±13±M Chief Counsel, Attn: Rule Docket (AGC– part 135 without a TSO–C112 (Mode S) 200), Petition Docket No. llll, 800 transponder installed on each aircraft. Independence Avenue, SW., Grant, 01/28/2000 Exemption No. DEPARTMENT OF TRANSPORTATION Washington, DC. 20591. 6718A Comments may also be sent to Research and Special Programs electronically to the following internet Docket No.: 29776. Administration address: [email protected]. Petitioner: Pomona Valley Pilots The petition, any comments received, Association. [Docket No. RSPA±98±4470] and a copy of any final disposition are Section of the FAR Affected: 14 CFR Pipeline Safety: Meetings of Pipeline filed in the assigned regulatory docket 135.251, 135.255, 135.353, and Safety Advisory Committees and are available for examination in the appendixes I and J to part 121. Rules Docket (AGC–200), Room 915G, Description of Relief Sought/ AGENCY: Office of Pipeline Safety, FAA Headquarters Building (FOB 10A), Disposition: To permit the PVPA to Research and Special Programs 800 Independence Avenue, SW., conduct local sightseeing flights for the Administration, DOT.

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ACTION: Notice of Advisory Committee 4. Gas Pipeline Safety Standards DEPARTMENT OF TRANSPORTATION meetings. 5. Risk Management: Local Distribution Company Initiative Surface Transportation Board SUMMARY: Pursuant to section 10(a)(2) of the Federal Advisory Committee Act On May 3, 2000, at 1 p.m., the TPSSC [Section 5a Application No. 1 (Sub±No. 10)] (Pub. L. 92–463, 5 U.S.C. App. 1) notice will be joined by members of the is hereby given of the following THLPSSC for a joint session. The preliminary agenda includes: Household Goods Carriers Bureau meetings of the Technical Pipeline CommitteeÐAgreement Safety Standards Committee (TPSSC) 1. RSPA Updates and Welcome from and the Technical Hazardous Liquid Administrator AGENCY: Surface Transportation Board. Pipeline Safety Standards Committee 2. Pipeline Safety Program (THLPSSC). The TPSSC and the Reauthorization ACTION: Extension of time to file THLPSSC are statutorily mandated 3. Budget/Appropriations comments and replies; correction of advisory committees that assist RSPA’s 4. Community Right-to-Know prior notice. Office of Pipeline Safety in its 4. Producer-operated Outer Continental consideration of proposed safety Shelf Pipelines (Vote) SUMMARY: The Surface Transportation regulations, risk assessments, and safety 5. Pipeline Integrity Management in Board (Board) is (1) extending the time policies for natural gas and hazardous High Consequence Areas to file comments and replies in this liquid pipelines. Each committee has an 6. National Pipeline Mapping System proceeding and (2) announcing a authorized membership of 15 persons, (NPMS) correction to its prior notice published five each from government, industry, in the Federal Register. and the public. The committees meet in The joint session continues on May 4, May and November of each year. Each 2000, at 9 a.m. in room 2230: DATES: Comments are now due by April Committee meeting, as well as a joint 7. Periodic Updates to Pipeline Safety 24, 2000; replies are now due by May session of the two Committees, is held Regulations (Vote) 8, 2000. at the Department of Transportation, 8. Status Report on Path Forward and ADDRESSES: Send an original and 10 Nassif Building, 400 Seventh Street, Dig Safely Initiatives SW, Washington, DC 20590. The May 3– copies of comments and replies, 9. NTSB Recommendations referring to ‘‘Section 5a Application No. 4, 2000, meetings will be held in room 10. OPS Response Plan Update 2230. 1 (Sub-No. 10)’’ to: Surface On May 4, 2000, at 12:30 p.m., the ADDRESSES: Comments on these Transportation Board, Office of the THLPSSC will meet in room 2230 of the meetings should be sent to the Dockets Secretary, Case Control Unit, 1925 K Nassif Building. The preliminary agenda Facility, U.S. Department of Street, N.W., Washington, DC 20423. includes: Transportation, Plaza 401, 400 Seventh FOR FURTHER INFORMATION CONTACT: 1. Pipeline Integrity Management in Street, SW, Washington, DC 20590– Joseph H. Dettmar, (202) 565–1600. High Consequence Areas (Vote) 0001. Alternatively, comments may be [TDD for the hearing impaired: 1–800– 2. Corrosion Control on Hazardous e-mailed to 877–8339.] [email protected]. All Liquid Pipelines (Vote) comments must reference Docket No. 3. Unusually Sensitive Areas (USA) SUPPLEMENTARY INFORMATION: On RSPA–98–4470. The Dockets Facility is Project (Vote) February 11, 2000 at 65 FR 7098–99, we located on the plaza level of the Nassif 4. Spill Data Presentation published a notice in the Federal Building in Room 401, 400 Seventh 5. Pressure Testing of Older Pipelines in Register requesting comments and Street, SW, Washington, DC. The Terminal replies from interested parties in this Dockets Facility is open from 10 a.m. to 6. Oil Pollution Act Developments proceeding. Copies of the version of this 5 p.m., Monday through Friday, except All three meetings will be open to the notice served on the same date are on Federal holidays. public. Members of the public will have available on the Board’s website at Information on Services for Individuals an opportunity to make short statements ‘‘WWW.STB.DOT.GOV.’’ By petition With Disabilities on the topics under discussion. Anyone received via FAX on March 10, 2000, the Household Goods Carriers’ Bureau For information on facilities or wishing to make an oral statement must Committee requests an extension of time services for individuals with disabilities notify Jenny Donohue, Room 7128, to file comments to April 24, 2000. By or to request special assistance at the Department of Transportation, Nassif meeting, contact Jenny Donohue at (202) Building, 400 Seventh Street, SW, this notice, we are granting this request, 366–4046. Washington, DC 20590, telephone (202) for all participants, and are 366–4046, not later than April 21, 2000, simultaneously extending the deadline FOR FURTHER INFORMATION CONTACT: on the topic of the statement and the Mary Jo Cooney, OPS, (202) 366-4774 or for filing replies to May 8, 2000. time requested for presentation. The Richard Huriaux, OPS, (202) 366–4565, Our prior notice mistakenly inverted presiding officer at each meeting may regarding the subject matter of this the dates for filing comments and deny any request to present an oral notice. replies. In view of the extension that we statement and may limit the time of any are granting herein, the dates in our SUPPLEMENTARY INFORMATION: On May 3, presentation. 2000, at 9 a.m., the Technical Pipeline prior notice are obsolete. Authority: 49 U.S.C. 60102, 60115. Safety Standards Committee (the natural Decided: March 16, 2000. Issued in Washington, DC on March 16, gas advisory committee) will meet in By the Board. 2000. room 2230 of the Nassif Building. The Vernon A. Williams, preliminary agenda includes: Richard B. Felder, Secretary. 1. Update on Plastic Pipe Research Associate Administrator for Pipeline Safety. 2. Proposal for ‘‘Class 0’’ Class Location [FR Doc. 00–7061 Filed 3–21–00; 8:45 am] [FR Doc. 00–7088 Filed 3–21–00; 8:45 am] 3. Gas Gathering Line Definition BILLING CODE 4910±60±P BILLING CODE 4915±00±P

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TWENTY-FIRST CENTURY States. Notice is hereby given of the The Commissioners are: Chairman WORKFORCE COMMISSION second Public Information Hearing of Lawrence Perlman, Ceridian the Twenty-First Century Workforce Corporation, Minneapolis, MN; Vice Notice of Public Information Hearing Commission. Chair, Katherine K. Clark, Landmark The Workforce Investment Act (Pub. Systems Corporation, Reston, VA; Susan AGENCY: Twenty-First Century L. 105–220), signed into law on August Workforce Commission. Auld, Capitol Strategies, Ltd., 7, 1998, established the Twenty-First Montpelier, VT; Morton Bahr, ACTION: Notice of public information Century Workforce Commission. The Communication Workers of America, hearing. Commission is charged with carrying Washington, DC; Patricia Gallup, PC SUMMARY: This notice is to announce a out a study of the information Communications, Inc., Merrimack, NH; public information hearing on technology workforce in the U.S., Dr. Bobby Garvin, Mississippi Delta Wednesday, March 29, 2000. Members including the examination of the Community College, Moorhead, MS; of the public are invited to attend the following issues: Susan M. Green (ex officio), U.S. hearing. Several witnesses have been 1. What skills are currently required to Department of Labor, Washington, DC; invited by the Commissioners to testify enter the information technology workforce? Randel Johnson, U.S. Chamber of and to address the questions identified What technical skills will be demanded in Commerce, Washington, DC; Roger by the agenda set forth below. the near future? Knutsen, National Council for Higher The purpose of the hearing is for 2. How can the United States expand its Education, Auburn, WA; Patricia number of skilled information technology Commissioners to learn how Northern McNeil (ex officio), U.S. Department of workers? Education, Washington, DC; The Virginia companies, educational 3. How do information technology institutions, community organizations, education programs in the United States Honorable Mark Morial, Mayor, City of and governments are working together compare with other countries in effectively New Orleans, LA; Thomas Murrin, so more of its residents gain the skills training information technology workers? Duquesne University, Pittsburgh, PA; and knowledge necessary to be part of [The Commission study should place Leo Reynolds, Electronic Systems, Inc., the Information Technology (IT) particular emphasis upon contrasting Sioux Falls, SD; The Honorable Frank workforce. secondary, non-and-post-baccalaureate Riggs, National Homebuilders Institute, degree education programs available within Washington, DC; The Honorable Frank DATES: The Public Information Hearing the U.S. and foreign countries.] Roberts, Mayor, City of Lancaster, will be held on Wednesday, March 29, The Workforce Investment Act directs California; Kenneth Saxe, Stambaugh- 2000, from 9:00 am to approximately the Commission to issue Ness, York, PA; David L. Steward, 4:00 p.m. Registration is from 9:00 am recommendations to the President and World Wide Technology, Inc., St. Louis, to 10:00 am. The dates, locations and Congress within six months. The MO; Hans K. Meeder, Executive times for subsequent meetings will be Commission first met on November 16, Director, Washington, DC. announced in advance in the Federal 1999, and will issue its Register. PUBLIC PARTICIPATION: Members of the recommendations by May 16, 2000. public are invited to attend this hearing. ADDRESSES: George Mason University, AGENDA: At the Fairfax, Virginia hearing, Several witnesses have been invited to Fairfax Campus is located at 4400 the Commission working group testify by the Commissioners to address University Drive, Fairfax, VA 22030. conducting the hearing will emphasize the questions identified on the Agenda. Main Phone: (703) 993–1000. The the following issues: (1) How will In addition, members of the public hearing will be held at the Egan information technology advances wishing to present oral statements to the Research building. For information, call continue to change Northern Virginia’s Twenty-First Century Workforce (617) 373–2000. (TTY) (617) 373–3768. economy in coming years, and what Commission should forward their Web-based directions can be found at: skills will individuals need to requests to Mr. Hans Meeder, Executive http://coyote.gmu.edu/map/. All participate in the IT workforce? (2) How Director, as soon as possible and at least interested parties are invited to attend are Northern Virginia companies, four days before the meeting. Requests this Information Hearing. Seating may educational institutions, community should be made by email, fax machine, be limited and will be available on a organizations, state and local or telephone, as shown above. first-come, first-serve basis. governments partnering to provide Time permitting, the Commissioners FOR FURTHER INFORMATION CONTACT: Mr. educational and training opportunities will attempt to accommodate requests Hans Meeder, Executive Director, for individuals who want to enter the IT for oral presentations. Each member of Twenty-First Century Workforce workforce? (3) What particular barriers the public who is selected to testify will Commission, 1201 New York Avenue, face Northern Virginia in building and be allotted a three minute period to NW, Suite 700, Washington, DC 20005. strengthening the IT workforce, and present their oral remarks. Members of (Telephone (202–289–2939. TTY (202) how are under-represented populations the public must limit oral statements to 289–2977) These are not toll-free being reached for participation in the IT three minutes, but extended written numbers. Email: [email protected]. workforce? statements may be submitted for the SUPPLEMENTARY INFORMATION: COMMISSION MEMBERSHIP: The Workforce record. Members of the public may also Establishment of the Twenty-First Investment Act mandates that 15 voting submit written statements for Century Workforce Commission was members be appointed by the President, distribution to the Commissioners and mandated by Subtitle C of Title III of the Majority Leader of the Senate, and inclusion in the public record without Workforce Investment Act, Sec. 331 of Speaker of the House (5 members each), presenting oral statements. Such written Pub. L. 105–220, 112 Stat. 1087–1091, including 3 educators, 3 state and local statements should be sent to Mr. Hans (29 U.S.C. 2701 note), signed into law government representatives, 8 business Meeder, as shown above, or may be on August 7, 1998. The 15 voting representatives and 1 labor submitted at the hearing site. member Twenty-First Century representative. The Act also mandates The Commission has established a Workforce Commission is charged with that the President appoint 2 ex-officio web site, www.workforce21.org. Any studying all aspects of the information members, one each from the written comments regarding documents technology workforce in the United Departments of Labor and Education. published on this web site should be

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Part II

Department of Health and Human Services Office of Refugee Resettlement

45 CFR Parts 400 and 401 Refugee Resettlement Program: Requirements for Refugee Cash Assistance; and Refugee Medical Assistance; Final Rule

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DEPARTMENT OF HEALTH AND job search, and employment, and RCA program, not to exceed 24 months HUMAN SERVICES refugee social services published after the date of publication of the final February 3, 1989 (54 FR 5463); and rule. Office of Refugee Resettlement requirements for employability services, 6. The section on monitoring has been job search, employment, refugee withdrawn. 45 CFR Part 400 and Part 401 medical assistance (RMA), refugee 7. The requirements in the current regulation that prohibit States from RIN 0970±AB83 social services, targeted assistance services, and Federal funding for considering any resources remaining in Refugee Resettlement Program; administrative costs, published June 28, the applicant’s country of origin or from Requirements for Refugee Cash 1995 (60 FR 33584). considering a sponsor’s income and resources when determining eligibility Assistance; and Refugee Medical Discussion of Major Changes Assistance for RCA have been restored. In addition, The changes made in this final we have added a requirement that AGENCY: Office of Refugee Resettlement, regulation, as compared with the prohibits States from considering any Administration for Children and proposed rule published on January 8, cash grant provided to a refugee under Families (ACF), HHS. 1999, are as follows: the Department of State or Department ACTION: Final rule. 1. The proposal to require States to of Justice Reception and Placement (R & enter into a public/private partnership P) programs when determining SUMMARY: This rule amends current with local resettlement agencies has eligibility for RCA. These requirements requirements governing refugee cash been revised. States will have the will apply to both the public/private assistance and refugee medical flexibility to establish a public/private RCA program as well as publicly- assistance and provides States the refugee cash assistance (RCA) program administered RCA programs. option to establish the refugee cash with local resettlement agencies, operate 8. The proposed requirement for assistance program as a public/private a publicly-administered RCA program requesting an exception to the public/ partnership between States and local modeled after a State’s Temporary private RCA program has been resettlement agencies or to continue the Assistance for Needy Families (TANF) withdrawn. A State that chooses to refugee cash assistance program as a program, or establish an alternative operate a publicly-administered RCA publicly-administered program. approach under the existing Wilson/ program modeled after its TANF A proposed rule was published in the Fish program, which is authorized by program must submit an amendment to Federal Register on January 8, 1999 (64 section 412(e)(7) of the Immigration and its State Plan to the Office of Refugee FR 1159). Some changes have been Nationality Act (INA) (8 U.S.C. Resettlement for approval no later than made and clarifications provided in this 1522(e)(7)). 6 months after the date of publication of final regulation after consideration of 2. Under § 400.57, States that elect to the final rule, describing the elements of the written comments received. establish a public/private RCA program its TANF program that will be used in are only required to include counties EFFECTIVE DATE: Effective April 21, 2000, its RCA program. and national voluntary agencies that except the amendments to 45 CFR 9. Under § 400.100(a), whether a resettle refugees in that State in the 400.100 through 400.104 which are refugee has been denied, or terminated planning and consultation process. The effective June 20, 2000. from, refugee cash assistance may no requirement for public comments has longer be used as a criterion for FOR FURTHER INFORMATION CONTACT: been withdrawn. determining that an applicant is Gayle Smith, (202) 205–3590. 3. Under § 400.60, States and local ineligible for RMA. SUPPLEMENTARY INFORMATION: resettlement agencies that operate a 10. Section 400.101 has been Background public/private RCA program may amended to extend to all States the combine RCA payments with option to establish an RMA financial The Refugee Act of 1980 amended the employment incentives that exceed the eligibility standard at up to 200% of the Immigration and Nationality Act (INA) monthly payment ceiling as long as the national poverty level. to create a domestic refugee resettlement total combined payments to a refugee do 11. Section 400.102 has been program to provide assistance and not exceed the Federal monthly ceiling amended by requiring that any cash services to refugees resettling in the multiplied by the allowable number of assistance payments that a refugee United States. With the enactment of months of RCA eligibility. receives may not be considered in this legislation, the Office of Refugee 4. Under § 400.61, States will be able determining eligibility for RMA. Resettlement (ORR) issued a series of to contract with or award grants to any 12. Section 400.104 has been regulations, at 45 CFR part 400, to service provider for the provision of amended by making the transfer from establish comprehensive requirements services to participants in the public/ Medicaid to RMA mandatory for for a State-administered Refugee private RCA program. States will not be refugees who lose Medicaid eligibility Resettlement Program (RRP), beginning required to only contract with or award due to early employment. with the publication on September 9, grants to local resettlement agencies to 13. Under § 400.152(b), citizenship 1980 (45 FR 59318) of a regulation provide these services. and naturalization services are exempt governing State plan and reporting 5. States must notify ORR within 6 from the 60-month limitation on requirements. Subsequent regulations months of the date of publication of the services. covered cash and medical assistance final rule as to whether they intend to 14. Section 400.55 has been amended (CMA) and Federal funding, published establish a public/private RCA program. to clarify that translations of written March 12, 1982 (47 FR 10841); grants to The due date for submission of a public/ policies, notices, and determinations in States, child welfare services (including private RCA plan, however, has been refugee languages must be provided to services to unaccompanied minors), and extended to no later than 12 months recipients in both public/private RCA Federal funding for State expenditures, after the date of publication of the final programs and publicly-administered published January 30, 1986 (51 FR rule. States are to include in the RCA RCA programs. We have amended this 3904); cash and medical assistance, plan a proposed date for requirement in accordance with the requirements for employability services, implementation of the public/private Department of Justice’s regulations

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This section refugees after their arrival in the U.S. upon former AFDC rules to provide cash now requires that agency policies, However, unlike U.S. welfare programs assistance for only 8 months to a small notices of eligibility and of adverse which assist the needy, the Refugee Act population of refugees. action, and determinations must be does not require that an income With these two considerations in provided to refugees in English and in standard be met in order to receive this mind, ORR conducted eight appropriate languages where a special refugee cash assistance, only consultations around the country and significant number or proportion of the that refugees register for and participate two teleconferences to discuss whether recipient population needs information in programs to help them find and how States, voluntary agencies, in a particular language. For refugee employment. Congress provided the service providers, and refugee language groups that constitute a small Office of Refugee Resettlement (ORR) organizations would like to see the number or proportion of the refugee the latitude to structure the refugee regulations changed. These recipient population, these provisions program in accordance with the refugee consultations were attended by 35 State require States, or local resettlement situation at that time. Refugee Coordinators, ten national agencies in the case of a public/private After passage of the Refugee Act of voluntary agencies, more than one RCA program, to use an alternative 1980, ORR chose to establish direct ties hundred local voluntary agency method such as a verbal translation in to the State-administered Aid to affiliates, representatives from State and a refugee’s native language, to ensure Families with Dependent Children local TANF agencies, local service that the content of the written policy or (AFDC) program in order to ensure that providers, refugee mutual assistance notice is effectively communicated. cash assistance was available to newly- agencies, unions, and national advocacy 15. The proposed amendment to arrived refugees not categorically groups. The consultations were useful 400.13(d) which would have allowed eligible for that program. ORR in helping us to identify certain issues certain case management costs to be established the refugee cash assistance and to gauge whether there was a charged to CMA has been withdrawn. program and required States to use the general willingness and a suitable AFDC need and payment standards for climate across the country in which to Description of the Regulation the provision of RCA. The AFDC change the program. This rule provides States with options welfare system provided a nationally We have concluded, based upon the in designing a refugee cash assistance accessible structure which ensured that consultations, that it is an opportune (RCA) program for those refugees not cash assistance was available to all time to provide States the flexibility to eligible for Temporary Assistance for refugees in a timely and equitable separate the link between the RCA Needy Families (TANF) or manner. ORR also established the program and the welfare/TANF system Supplemental Security Income (SSI), refugee medical assistance program for the following reasons: (1) The changes the procedure for determining modeled on the Medicaid program. current period of time for provision of the financial eligibility of refugees for At that time, ORR received sufficient cash assistance is shorter, requiring a receipt of refugee medical assistance appropriations to allow States to simple, more integrated and direct (RMA), and amends other policies. provide needy refugees with refugee approach to resettlement; and (2) the During the period following World cash assistance and refugee medical RCA population, comprised almost War II until the passage of the Refugee assistance during a refugee’s first 36 entirely of singles and couples without Act of 1980, a variety of programs were months in the U.S. In addition, some children or with adult children, is a funded by Congress and/or the private portion of the refugee population smaller, more distinct population to sector to assist newly arriving refugee received assistance under the serve. groups. In authorizing and funding mainstream AFDC and Medicaid The Refugee Act acknowledged the these programs for refugees, Congress programs. ORR also reimbursed the roles of both States and private continually demonstrated its State share of AFDC and Medicaid costs voluntary agencies in resettlement and recognition that special programs were during a refugee’s first 36 months. authorized the Director of ORR ‘‘to needed to help refugees restart their In the intervening years, due to provide assistance, reimbursement to lives in the U.S. declining appropriations, ORR reduced States, and grants to, and contracts with, It is important to note that the period of availability of RCA and public or private nonprofit agencies for resettlement in the U.S. is the last stage RMA to refugees. At the present time, 100 per centum of the cash assistance of a much larger, world-wide ORR reimburses States for 100 percent and medical assistance provided to any humanitarian effort to aid victims of of their RCA and RMA costs during a refugee * * *.’’ This language provided oppression and war. The U.S. refugee’s first eight months. Refugees ORR with statutory flexibility to deliver participates and exercises its leadership eligible for the TANF and Medicaid assistance through public or private in this effort by contributing to programs receive assistance under those means. We believe that the public/ international relief and protection programs; the costs of providing TANF private program described in this efforts, and also by offering resettlement and Medicaid to refugee recipients are regulation more closely follows what to some refugees who have no other not included in the refugee Congress intended in passing the durable solution and who qualify for appropriation. Refugee Act. The addition of a public/ admission to the U.S. These refugees With the passage of welfare reform private program also provides States arrive from diverse backgrounds and legislation in 1996, two things have increased flexibility by offering another parts of the world. However, what they occurred which caused ORR to review option for administering the RCA all have in common, in addition to the current system for providing RCA: program. having had to seek refuge, is that they (1) More refugee families have qualified In addition to the public/private arrive with virtually no worldly for assistance through the TANF program, this rule also provides States possessions. program than had previously qualified the option to establish the refugee cash With the passage of the Refugee Act, under the AFDC program, resulting in a assistance program as a publicly- Congress further underscored its belief smaller RCA program; and (2) States administered RCA program modeled that refugees need special assistance by have expressed concerns about the after their TANF program in regard to authorizing an on-going program for administrative difficulties of determination of eligibility, treatment of

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States that or award grants to local resettlement and resettlement agencies will have the conclude that neither a public/private agencies to administer the provision of flexibility to establish the income- RCA program nor a publicly- cash assistance or to administer both the eligibility standard for RCA that they administered RCA program would be provision of cash assistance and believe would best enable most newly the best way to serve refugees in their services needed to help RCA recipients arriving refugees to qualify for RCA and State may pursue a third option—an become employed and self-sufficient which would encourage early alternative program funded under the within the RCA eligibility period. The employment. standing Wilson/Fish announcement. RMA program will continue to be States and the agencies responsible The Wilson/Fish program provides administered by the States and will not for providing services to recipients in States and public and private non-profit be included in the public/private the public/private RCA program will be agencies the opportunity to develop partnership program. In addition, responsible for moving refugees to innovative approaches to providing cash assistance and services to refugees economic and social self-sufficiency assistance, social services, and case eligible for TANF will not be affected by within the RCA eligibility period by management as an alternative to the the public/private RCA program. placing them in full-time employment. regular State-administered refugee We believe that giving States an This rule will allow States under program. option of operating a combined § 400.207 to claim reasonable and The final rule contains a number of assistance and services program, necessary administrative costs incurred provisions to ensure that refugee rights administered outside the welfare by resettlement agencies in the and protections are safeguarded in the system, makes programmatic sense for administration of the public/private RCA program. While we have no the RCA population. Placing RCA program. interest in having resettlement agencies responsibility for cash assistance and We expect States that opt to establish adopt the full range of rules and services with the resettlement agencies a public/private RCA program, when regulations of a government will result in a continuity of assistance developing their annual social services bureaucracy, it is essential to have to RCA-eligible refugees from initial plan, to cover the costs of services in the adequate client protections in place to resettlement to self-sufficiency. new RCA program within their regular ensure due process and equitable Currently, resettlement agencies are social services budget. We also expect treatment. responsible, under contract with the States to link the new RCA program We have added three changes to the Department of State (DOS), for with the existing State refugee social refugee medical assistance program to providing refugees with initial housing, services system in order to enhance the enable certain groups of refugees food, clothes, and shelter for the first 30 coordination of services. We recognize currently without medical coverage, days after arrival in the U.S. However, that there may be additional service such as newly arrived refugees who in order to receive cash assistance, costs to fully implement the service become employed within the first few refugees must apply to the local welfare component of the new RCA program weeks of arrival, to be eligible for RMA. office where they become engaged in a while maintaining the State’s regular First, States will be required to service delivery system which, in many refugee social services program for non- determine RMA eligibility on the basis States, may not include their local RCA refugees who have been in the U.S. of a refugee applicant’s income and resettlement agency. for less than 5 years. For this reason, resources on the date of application, We believe a public/private RCA subject to the availability of funds, ORR rather than averaging income over the program will more firmly unite the two plans to make available to States a application processing period. Second, key players—States and resettlement portion of the non-formula funds that States will be given the option of using agencies—into a partnership that will are reserved for the Director’s a higher financial eligibility standard of best utilize their respective strengths. discretionary use each year. These non- up to 200% of the national poverty level States will maintain the important role formula funds would be used during the for determination of RMA eligibility. of administering the program and initial start-up years to enable States to Third, refugees residing in the U.S. less providing financial management and establish a viable public/private RCA than 8 months, who lose their eligibility policy oversight, while the resettlement program without compromising their for Medicaid because of earnings from agencies will have an enhanced role in existing social services program. employment, will be transferred to RMA the longer-term resettlement of refugees States that elect to establish a public/ without an eligibility determination. We they place in the State. Under the private RCA program will be required to believe these changes in RMA eligibility public/private RCA program, States and engage in a planning and consultation are important to ensure that most newly voluntary agencies will have the process with the national voluntary and arriving refugees, many of whom arrive flexibility to design programs to deliver local resettlement agencies and with with medical problems resulting from refugee cash assistance in a manner that other agencies, such as mutual war-related trauma, have medical more fully integrates and supports assistance associations (MAAs), that coverage during their first 8 months in resettlement. In order to accommodate serve refugees in the State to design the the U.S. resettlement in communities across the public/private RCA program. From that Consistent with the preceding actions, U.S. with different cost-of-living process, States and resettlement 45 CFR 400.2, 400.5, 400.11, 400.13, conditions, ORR is establishing payment agencies will develop a public/private 400.23, 400.27, 400.43, 400.44, Subpart ceilings which may be provided to RCA plan for submission to ORR no E, 400.70, 400.71, 400.72, 400.75, refugees. Within these ceilings, a State later than 12 months after publication of 400.76, 400.77, 400.78, 400.79, 400.80, and the resettlement agencies in that the final rule. 400.81, 400.82, 400.83, 400.93, 400.94, State will have the opportunity to While a public/private RCA program 400.100, 400.101, 400.102, 400.103, develop a resettlement plan which is ORR’s preferred approach, we fully 400.104, 400.107, 400.152, 400.154,

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400.155, 400.203, 400.207, 400.208, Subpart D—Immigration Status and Section 400.51 (Definitions) is 400.209, 400.210, 400.211, 400.301, and Identification of Refugees removed. 401.12 are being amended or removed. Section 400.43 is amended by Section 400.52 (Recovery of Some of these changes are technical in removing the following obsolete alien overpayments and correction of nature and are not discussed in the statuses for purposes of the refugee underpayments) is redesignated as preamble. program: ‘‘Admitted as a conditional § 400.49 and amended by removing entrant under section 203(a)(7) of the references to AFDC requirements. Subpart A—Introduction Section 400.55 (Opportunity to apply Act’’ and ‘‘Admitted with an for cash assistance) is redesignated as Section 400.2 is amended by immigration status that entitled the § 400.50 and amended by removing replacing all references to the AFDC individual to refugee assistance prior to (b)(1), which references AFDC program with references to the TANF enactment of the Refugee Act of 1980, requirements, by amending (b)(2), and program, by adding a definition of an as specified by the Director’’ and by by removing (b)(3), (b)(4), and (c), which RCA Plan, designee, economic self- adding Cuban and Haitian entrants in require States to contact sponsoring sufficiency, and a family unit, and by accordance with requirements in Part resettlement agencies regarding adding separate definitions of a national 401; and Amerasian immigrants to this financial assistance and offers of voluntary agency and a local section. resettlement agency. Section 400.44 is amended by employment to refugees. Paragraph clarifying that applicants for asylum are (b)(4) and (c) have been moved to Subpart B—Grants to States for Refugee § 400.68. Paragraph (d) has been Resettlement not eligible for assistance under the refugee program unless otherwise removed and moved to § 400.54. This section is amended by adding a Section 400.5 is amended by provided by Federal law, as is the case reinserting paragraph (i) which was with Cuban and Haitian asylum requirement that an eligibility inadvertently removed when 45 CFR applicants under section 501 of the determination must be made as Part 400 was last codified in 1995. Refugee Education Assistance Act of promptly as possible within no more Section 400.13 is amended by adding 1980. than 30 days from the date of a new paragraph (e) which would allow application and that applicants must be States to charge administrative costs Subpart E—Refugee Cash Assistance informed of their rights and incurred by local resettlement agencies The sections of Subpart E that pertain responsibilities. in the administration of the public/ specifically to AFDC requirements have Section 400.56 (Determination of private RCA program (i.e., been retained and modified under a new eligibility under other programs) is administrative costs of providing cash § 400.45. For example, we have dropped redesignated as § 400.51 and is amended assistance) to the CMA grant. the prohibition against applying a $30 by removing paragraphs (a)(1) and (a)(2) Administrative costs of managing the and l⁄3 earned income disregard; any and redesignating paragraph (a)(3) as (a). services component of the RCA program reception and placement cash received Section 400.57 (Emergency cash must continue to be charged to the by a refugee may not be considered in assistance to refugees) is redesignated as social services grant. determining income eligibility; and the § 400.52. Administrative costs of providing State agency may use the date of Section 400.53 (General eligibility cash assistance may include: (1) The application as the date RCA begins. requirements) replaces § 400.60 and salary costs of staff responsible for These requirements must be followed by establishes the following eligibility eligibility determinations and other States until they have implemented a requirements for the RCA program. To administrative functions associated with new public/private RCA program or a be eligible for the RCA program, a the provision of cash payments; and (2) publicly-administered RCA program refugee must: (1) Be a new arrival who the portion of the local resettlement modeled after TANF. These has resided in the U.S. less than the agency Director’s time spent on requirements also apply to those States RCA eligibility period determined by managing the cash assistance that obtain an approved waiver from the ORR Director in accordance with component. ORR to continue an AFDC-type RCA § 400.211; (2) be ineligible for TANF and SSI; (3) have the proper Subpart C—General Administration program. Subpart E is revised by providing immigration status and documentation Section 400.23 (Hearings) is amended States the flexibility to establish a new for eligibility for benefits under the by clarifying that the public assistance public/private partnership program in refugee program; (4) not be a full-time hearing regulation at 45 CFR 205.10(a) which States would contract with or student in an institution of higher applies to assistance and services award grants to local resettlement education; and (5) meet the income provided to refugees unless otherwise agencies to provide transitional cash eligibility standard established by the specified in ORR regulations. assistance and services to RCA-eligible State. Section 400.27 (Safeguarding and refugees as described below, or to Section 400.54 (Eligibility sharing of information) is amended by operate a publicly-administered RCA redeterminations in States with adding language to paragraph (b) to program modeled after the TANF residency requirements) has been enable States that have established a program. removed and a new § 400.54 (Notice and public/private RCA program to obtain hearings) has been added. This section client information from local General describes timely and adequate notice resettlement agencies without a signed The following general sections apply and certain hearing requirements consent from clients, and by removing to both the public/private RCA program necessary in the administration of paragraph (c) which references an AFDC and publicly-administered RCA public/private and publicly- regulation. It should be noted that programs, including RCA programs administered RCA programs (See the § 400.58 requires that a State’s public/ currently modeled after AFDC unless comment and response sections to private RCA plan contain a description otherwise noted in § 400.45. §§ 400.82 and 400.83 for further of the procedures to be used to Section 400.50 (Basis and scope) is discussion). safeguard the disclosure of information retained without changes and Section 400.55 (Availability of agency regarding refugee clients. redesignated as § 400.48. policies) requires a State or the

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15414 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations agency(s) responsible for the provision private model may not be a reasonable assumes responsibility for managing the of RCA to make available to refugees the approach. For example, in a State with cash assistance component of the written policies of the public/private a major urban area that receives 75% of program for all the resettlement RCA program, including all notices and the State’s newly arriving refugees, the agencies; or (3) a model where the State all agency policies regarding eligibility State and resettlement agencies may acts as the fiscal agent, cutting benefit standards, the duration and amount of wish to operate a public/private RCA checks and managing cash flow, while cash assistance payments, the program in the urban area only, while the local resettlement agency requirements for participation in choosing to operate a publicly- determines eligibility, calculates the services, the penalties for non- administered RCA program through the payment amount, and provides cooperation, and client rights and State welfare agency in the balance of payments to refugees. responsibilities to ensure that refugees the State where the geographic States and resettlement agencies that understand what they are eligible for, dispersion of refugees may hinder choose to implement the public/private what is expected of them, and what resettlement agency delivery of benefits. RCA program will have 24 months from protections are available to them. The ORR will not consider a plan where the date of publication of the final rule State or the agency(s) responsible for the the State proposes having both a public/ to implement the new program. provision of RCA must ensure that private RCA program and a publicly- Section 400.57 (Planning and agency policy materials and notices, administered RCA program in the same consultation) requires a State that including notices required in §§ 400.54, location. Such an arrangement would wishes to establish a public/private RCA 400.82, and 400.83 are made available to not be programmatically wise because it program to engage in a planning and refugee clients in English and in would cause confusion for refugees and consultation process with local appropriate languages where a would create unnecessary duplication. resettlement agencies to develop a significant number or proportion of the We recognize that some local public/private RCA plan, the content of recipient population needs information resettlement agencies sponsor refugees which is described in § 400.58. Primary in a particular language. in States other than where they have an participants in the planning process office, e.g., in States bordering and in must include representatives of the Public/Private Partnership RCA Program close proximity to their local office such State and each local agency that Section 400.56 (Structure) provides as occurs in Kansas/Missouri and in the resettles refugees in the State. In States the option of entering into a District of Columbia/Maryland/Virginia addition, representatives of refugee partnership with local resettlement metropolitan area. ORR intends, where mutual assistance associations (MAAs), agencies for the provision of cash possible, that these resettlement counties, local community services assistance through a public/private RCA agencies also be involved in the agencies, national voluntary agencies, program. This section provides States planning of the public/private RCA plan representatives of each refugee ethnic the flexibility to enter into a public/ of the bordering State. However, if that group, and other agencies that serve private partnership by administering the is not feasible (some States, for example, refugees must be given the opportunity RCA program through contracts or may not be able to enter into contracts to participate in the discussion during grants with the local resettlement or grants outside of the State), ORR the development period. We believe that agencies that resettle refugees in the expects States, in conjunction with the full participation by MAAs and other State. We define local resettlement local resettlement agencies, to make community agencies throughout the agencies in § 400.2 as local affiliate appropriate provisions for eligible planning process is essential to the agencies which provide initial reception refugees resettled by agencies not development of a workable public/ and placement services to refugees located within State boundaries. private RCA program. To facilitate this under a cooperative agreement with the Examples of appropriate provisions may participation, it is permissible for States Department of State. include the establishment of an office by to charge to their CMA grant reasonable We believe that giving the local the sponsoring resettlement agency in travel and per diem costs for MAAs and resettlement agencies that are the State where they are placing other agencies, as needed, to enable responsible for the initial placement of refugees or co-locating staff with a these agencies to more easily participate refugees the additional responsibility of resettlement agency that already has a in the consultation process. providing cash assistance to those presence in the State. This section requires local refugees will result in more effective We recognize that some States may resettlement agencies to keep their and better quality resettlement. At the not have the staff or administrative respective national voluntary same time, we fully recognize the policy support to contract with and manage resettlement agencies fully informed of and administrative oversight capacity numerous local agency contracts or the details of the public/private RCA that States are able to contribute to the grants. We also recognize that some program as the program is developed. resettlement process. This public/ local resettlement agencies may not Local resettlement agencies will be private structure is a way to more firmly have the administrative and fiscal responsible for obtaining a letter of unite the two sectors into a partnership capacity to manage a cash assistance agreement from their national agency to help refugees. program. Therefore, under the public/ stating that the national agency supports We expect States to implement a private RCA plan, States and local the public/private RCA plan and will public/private RCA program statewide. resettlement agencies may consider continue to place refugees in the State It is intended that all resettlement different types of arrangements such as: under the new public/private program. agencies placing refugees in a State will (1) An agency-contained model where Section 400.58 (Development of a participate in the public/private RCA the local resettlement agency performs public/private RCA plan) establishes the program to the extent possible. all fiscal and eligibility functions requirements for the development of a However, if it is not feasible to including the determination of public/private RCA plan which operate a statewide public/private RCA eligibility, authorization of the RCA describes how the State and local program, States may propose a payment amount, the cutting of the resettlement agencies will administer geographically split program for the checks, and the provision of payments and deliver RCA to eligible refugees. delivery of RCA. We recognize that in to refugees; (2) a lead agency approach The plan must describe the agreed-upon some places the statewide public/ in which one resettlement agency public/private RCA system including:

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(1) The proposed income standards for changes in policy and submitted to ORR revised payment ceilings through a RCA eligibility; (2) proposed payment in accordance with § 400.8. notice in the Federal Register. levels to be used to provide cash Section 400.59 (Eligibility for the We expect that most refugees eligible assistance to eligible refugees; (3) public/private RCA program) establishes for RCA will be one-person or two- assurance that the payment levels that to be eligible for the public/private person family units, singles and established are not lower than the State RCA program, a refugee must meet the childless couples. We expect that most TANF amount; (4) a detailed description income eligibility standard jointly refugee families with dependent of how benefit payments will be established by the State and local children will be eligible for TANF and, structured, including the employment resettlement agencies in the State. This therefore, will not need to access the incentives and/or income disregards to section also states that any resources RCA program. be used, if any, as well as methods of remaining in the applicant’s country of Payments to refugees may not be payment; (5) a description of how all origin or a sponsor’s income and lower than the State TANF payment for refugees residing in the State will have resources may not be considered in the same sized family unit. States, reasonable access to cash assistance and determining income eligibility. Any therefore, that have TANF payment services; (6) a description of the cash grant received by the applicant levels that are higher than the ceilings procedures to be used to ensure under the Department of State or indicated above, must provide payment appropriate protections and due process Department of Justice Reception and levels under the new public/private for refugees, such as notice of adverse Placement programs also may not be RCA program that are comparable to the action and the right to mediation, a pre- considered in determining income State TANF payment levels. ORR will termination hearing, and an appeal to an eligibility since such a grant is intended reimburse States at the higher TANF independent entity; (7) a description of to cover the initial costs of resettlement, payment levels in such instances. We encourage States and local proposed exemptions from participation not ongoing living expenses. resettlement agencies to use the in employability services; (8) a In establishing an income eligibility flexibility provided in the payment description of the employment and self- standard for the public/private RCA sufficiency services that will be ceilings to include income disregards or program, States and resettlement other incentives such as employment provided to RCA recipients; (9) agencies may wish to set a standard, for bonuses, that will encourage early procedures for providing RCA to eligible example, at 150% of the poverty level, employment and self-sufficiency. This secondary migrants who move to the that will allow refugees who are flexibility would allow States and local State, including secondary migrants employed part-time in a low wage job to resettlement agencies to provide who were sponsored by a resettlement also be eligible for some level of cash continued cash support while moving agency that does not have a presence in assistance. States may wish to consider refugees into early employment. States the receiving State; (10) if applicable, such a need standard in order to provide and local resettlement agencies may provisions for providing assistance to a more solid economic foundation for design whatever combination of refugees resettling in the State who are refugees during their first 8 months in assistance payments and incentives they sponsored by a resettlement agency in a the U.S. to better ensure continued self- believe would be effective, as long as bordering State which does not have an sufficiency. the total combined payments to a office in the State of resettlement; (11) Section 400.60 (Cash payment levels) refugee do not exceed the monthly a description of the procedures to be establishes allowable cash payment ceiling multiplied by the allowable used to safeguard the disclosure of levels under the public/private RCA number of months of RCA eligibility. information on refugee clients; (12) program. This section requires monthly States and local resettlement agencies letters of agreement from the national cash assistance payments to be made to that plan to exceed the monthly voluntary resettlement agencies eligible refugees using a payment level payment ceilings in order to provide indicating support for the public/private that does not exceed the following employment incentives must budget RCA program and that refugee payment ceilings, except in cases where their resources carefully to ensure that placements in the State will continue the State TANF payment level is higher sufficient RCA funds are available to under the public/private RCA program; or a State wishes to provide early cover a refugee’s cash assistance needs (13) a breakdown of the proposed employment incentives as described in the latter months of a refugee’s program and administrative costs of below. eligibility period, if needed. both the cash assistance and service We encourage States and local components of the public/private RCA Monthly resettlement agencies to look at different program, including per capita caps on Size of family unit payment ceiling approaches and to be creative in administrative costs only if a State designing a program that will help proposes to use such caps; and (14) a 1 person ...... $335 refugees to establish a good economic proposed implementation date for the 2 persons ...... 450 foundation during the 8-month RCA public/private RCA program. 3 persons ...... 570 period. We encourage States and local The plan must be signed by the 4 persons ...... 685 resettlement agencies to design an RCA Governor or his or her designee and program that takes into account that must be submitted to the ORR Director These ceiling payment levels are refugees arrive in the U.S. with little or for review and approval no later than 12 based on 50% of the 1998 HHS Poverty no financial resources and that 8 months after the date of publication of Guidelines for each family size, divided months of cash assistance provides a the final rule. A State must, however, by 12 months, except as noted below. limited period of time to gain a degree notify the ORR Director of its intent to For family units greater than 4 of financial stability. establish a public/private RCA program persons, the payment ceiling may be One approach might be to permit the no later than 6 months after the date of increased by $70 for each additional total of earned income and cash publication of the final rule. person. assistance of refugees who become RCA plan amendments must be If the ORR Director determines that employed full-time to exceed the cash developed in consultation with the local the payment ceilings need to be assistance only payments made to resettlement agencies to reflect any adjusted for inflation, ORR will issue refugees who are not employed. Another

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00007 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15416 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations approach, currently being used in one Section 400.62 (Coverage of secondary appropriated funds, to support the State, provides an incentive to migrants, asylees, and Cuban/Haitian national voluntary agencies in these employed refugees through monthly entrants) provides that the State and training activities during a transition reimbursements for work-related local resettlement agencies must ensure period ending two years after expenses such as tools, uniforms, work- that there is a system in place which is publication of the final rule. related transportation expenses, medical accessible to eligible secondary migrant Publicly-Administered RCA Programs insurance co-payments, or the cost of refugees, asylees, and Cuban/Haitian additional work-related training. The entrants who want to apply for Section 400.65 (Continuation of a State has found this to be an effective assistance. In developing these publicly-administered RCA program) incentive for early employment. procedures, consideration must be given provides a State that does not elect to Section 400.61 (Services in the to how to ensure coverage of eligible establish a public/private RCA program public/private RCA program) establishes secondary migrants and other eligible the option of operating its RCA program that services provided to recipients of applicants who were sponsored by a consistent with its TANF program. A refugee cash assistance in the public/ resettlement agency which does not State that chooses to operate a TANF- private program may be provided by the have a presence in the State or who type RCA program must submit an local resettlement agencies that were not sponsored by any agency. amendment to its State Plan no later administer the public/private RCA Section 400.63 (Preparation of local than 6 months after publication of the program or by other refugee service resettlement agencies) requires national final rule, describing the elements of its agencies. It will be important not only voluntary agencies to be responsible, in TANF program that will be used in its to place refugees in employment at concert with the States, in preparing RCA program. wages that will enable self-support, but local resettlement agencies for their new Section 400.66 (Eligibility and to ensure that refugees receive the skills, responsibilities under the public/private payment levels in a publicly- such as English language acquisition RCA program during a period of administered RCA program) establishes and basic living skills, needed to live transition. In light of the ongoing that in administering an RCA program successfully in this country. We plan to relationship of the national voluntary modeled after TANF, the State agency work with States and resettlement agencies with their local affiliates under must operate its refugee cash assistance agencies to develop appropriate social the Department of State cooperative program consistent with the provisions self-sufficiency and English acquisition agreements for initial Reception and of its TANF program in regard to: (1) outcome measures. Placement services, we believe the The determination of initial and on- This section also establishes that in national agencies should share in the going eligibility (treatment of income public/private RCA programs where responsibility with the States for and resources, budgeting methods, need local resettlement agencies are ensuring that their affiliate agencies standard); (2) the determination of responsible for administering both cash have the capacity and structure to benefit amounts (payment levels based assistance and services, States and local effectively handle the cash assistance on size of the assistance unit, income resettlement agencies must maintain and service needs of refugees over an 8- disregards); (3) proration of shelter, ongoing coordination with refugee month period. utilities, and similar needs; and (4) any mutual assistance associations and other The States and national voluntary other State TANF rules relating to ethnic representatives that represent or agencies will develop a plan for: (1) financial eligibility and payments. serve the ethnic populations that are Determining the training needed to This section retains the requirements being resettled in the U.S. to ensure that enable local resettlement agencies to that a State agency may not consider the services provided under the public/ achieve a smooth transition into their any resources remaining in the private RCA program: (1) Are expanded role; and (2) providing the applicant’s country of origin or a appropriate to the linguistic and training in a uniform way to ensure that sponsor’s income and resources in cultural needs of the incoming all local resettlement agencies in the determining income eligibility. This populations; and (2) are coordinated State will implement the new program section contains an additional with the longer-term resettlement in a consistent manner. Part of this requirement that a State agency may not services frequently provided by ethnic training should involve helping the consider any cash grant provided to the community organizations after the 8- local resettlement agencies to change applicant under the Department of State month RCA period. how they view their role—from a short- or Department of Justice Reception and In public/private RCA programs term initial resettlement role to a longer- Placement programs in determining where the agencies responsible for term commitment to the economic self- income eligibility. This section also providing services to RCA recipients are sufficiency and social integration of the permits States to use the date of not the same agencies that administer refugees they resettle. The national application as the date refugee cash the cash assistance program, States voluntary agencies should also be assistance begins, instead of the date must: (1) Establish procedures to ensure instrumental in helping the local used in the States’ TANF program. close coordination between the local resettlement agencies to establish a Section 400.67 (Non-applicable TANF resettlement agencies that provide cash smooth linkage between Reception and requirements) establishes that a State assistance and the agencies that provide Placement services and services under that chooses to model its RCA program services to RCA recipients; and (2) set the RCA program and in facilitating the after its TANF program may not apply up a system of accountability that development of consortia among certain TANF requirements to refugee identifies the responsibilities of each affiliates. States may also wish to call cash assistance applicants or recipients participating agency and holds these upon the national voluntary agencies to as follows: Instead of TANF work agencies accountable for the results of assist in providing remedial assistance requirements, States must apply the the program components for which they and training to poorly performing requirements in § 400.75 which requires are responsible. affiliate agencies before contract or grant RCA recipients, as a condition of receipt Allowable services under the public/ sanctions are applied. of assistance, to participate in private program are limited to those ORR intends to use a portion of its employment services within 30 days of services described under §§ 400.154 and non-formula social services funding, receipt of aid, and Subpart I of 45 CFR 400.155. subject to the availability of Part 400 with respect to the provision of

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15417 services for RCA recipients. The only to a publicly-administered RCA Subpart G—Refugee Medical Assistance requirements and expectations for program. This subpart is amended in several employment and participation in Section 400.76 (Exemptions) is places to clarify that refugee medical revised by removing the list of employment services in the refugee assistance is only available to refugees individuals who may be exempt from program are no less serious than the who are ineligible for Medicaid or participation in employment services. requirements in the TANF program. The SCHIP, regardless of how the State has States agencies may determine what requirements in the refugee program are administratively implemented its SCHIP specific exemptions, if any, are simply different from TANF program. Without these clarifying appropriate for recipients of a time- requirements in that the types of amendments, the regulations as limited RCA program in their State. activities allowed in the refugee currently drafted would only require program are designed for the needs of Given the short duration of the RCA States to determine SCHIP eligibility newly-arrived refugees who typically program, however, and the need for prior to RMA eligibility if the State has arrive with little or no English language refugees to become self-sufficient within administratively implemented SCHIP as skills. Thus, in the refugee program, this limited time frame, we would an expansion of benefits under the refugees participate extensively in expect States to require most RCA State’s Medicaid Plan under title XIX of English language training, assisted job recipients to participate in employment the Social Security Act. As currently search, and other employment-related services, with few exceptions. written, the RMA regulations do not activities that are designed to help Section 400.78 (Service requirements require States to make SCHIP eligibility limited-English speaking refugees to for employed recipients of refugee cash determinations prior to RMA eligibility become self-sufficient within 8 months. assistance), which requires an RCA Section 400.68 (Notification of recipient who is employed less than 30 determinations for refugee children, if resettlement agencies) requires States: hours a week to participate in part-time the State has chosen to implement its (a) To notify the local agency that was employment services, as a condition of SCHIP program as a separate State responsible for the initial resettlement continued receipt of refugee cash SCHIP Program pursuant to title XXI of of a refugee whenever the refugee assistance, is removed and reserved. We the SSA. applies for refugee cash assistance leave it to States and local resettlement Section 400.93 (Opportunity to apply under a publicly-administered RCA agencies to determine how best to for medical assistance) is amended to program; and (b) to contact the design a program that moves refugees to clarify that the notice indicating that applicant’s sponsor or resettlement full-time employment in a reasonable assistance has been authorized, denied agency to inquire whether the applicant period of time. or terminated must clearly distinguish has voluntarily quit employment or has Section 400.80 (Job search between RMA, Medicaid and SCHIP. refused to accept an offer of requirements), which requires job Section 400.94 (Determination of employment within 30 consecutive days search where appropriate, is removed eligibility for Medicaid) is amended to immediately prior to the date of and reserved. Again, we leave it to the clarify that refugee medical assistance is application, in accordance with judgement of States and local only available to refugees who are § 400.77. resettlement agencies to decide the ineligible for Medicaid or SCHIP. Section 400.69 (Alternative RCA types of employment services that are Section 400.100(a) (General eligibility programs) provides States, that the most effective in placing refugees in requirements) is amended by removing determine that neither a public/private jobs. the prohibition against the provision of RCA program nor a publicly- Section 400.81(a) (Criteria for RMA to refugees who have been denied, administered program modeled after its appropriate employability services and or terminated from, refugee cash TANF program is the best approach for employment) is amended by replacing assistance. their State, the option to establish an the reference to AFDC with a reference Sections 400.100(a)(1) and (d) alternative approach under the Wilson/ to TANF. (General eligibility requirements) are Fish program, authorized by section Section 400.81(b) is amended by amended by clarifying that refugee 412(e)(7) of the INA. Applications for limiting professional refresher training medical assistance is only available to the Wilson/Fish program may be and other recertification services only to refugees who are ineligible for Medicaid submitted under the standing Wilson/ individuals who are working. or SCHIP. Fish grant announcement published in Section 400.82 (Failure or refusal to Section 400.101 (Financial eligibility the Federal Register on April 22, 1999 accept employability services or standards) is amended by giving all (64 FR 19793). employment) is revised to specify States the option of increasing the requirements for timely and adequate financial eligibility standard for RMA Subpart F—Requirements for notice of intended termination under eligibility determination to up to 200% Employability Services and Employment both a public/private RCA program and of the national poverty level by family Section 400.70 (Basis and scope) is a publicly-administered RCA program. size. Our intent in allowing States this amended to clarify that Subpart F Section 400.83 (Conciliation and fair new option is to ensure that States have applies to applicants and recipients of hearings) is revised by establishing the flexibility to broaden financial both a public/private RCA program and requirements for mediation and fair eligibility for refugee medical a publicly-administered RCA program. hearings in the public/private RCA assistance, while receiving 100% Section 400.72 (Arrangements for program and requiring that States Federal reimbursement of costs, in order employability services) is amended to specify the public agency mediation/ to extend coverage to certain groups of clarify that the requirements in conciliation and fair hearings new arrivals who are currently not paragraphs (a) and (b) of this section procedures to be used in cases where a covered under RMA. Refugees currently apply equally to States that operate a State operates a publicly-administered without medical coverage who would be public/private RCA program through RCA program. Under this requirement, affected by this provision include: (1) contracts or grants with local hearings must meet the due process Refugees who are ineligible for resettlement agencies and to States that standards set forth in the U.S. Supreme transitional Medicaid because they were operate a publicly-administered RCA Court decision in Goldberg v. Kelly, 397 not considered eligible to receive AFDC program, while paragraph (c) applies U.S. 254 (1970). assistance in at least 3 of the last 6

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00009 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15418 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations months due to hours of or income from earnings from employment) is amended Section 400.210 (Time limits for employment; and (2) refugee spouses to require refugees residing in the U.S. obligating and expending funds and for who arrive in the U.S. a number of less than 8 months, who lose their filing State claims) is amended by months after their spouse who preceded eligibility for Medicaid because of revising § 400.210(b)(2) to extend the them, and are not eligible for RMA earnings from employment, to be due date for a State’s final financial because their employed spouse’s transferred to refugee medical assistance report of expenditures of social services income renders them ineligible for without an RMA eligibility and targeted assistance formula grants to RMA. determination. This amendment will no later than 90 days after the end of the Section 400.101(b) is amended with allow refugees who lose Medicaid two-year expenditure period. This respect to States without a medically eligibility because they obtain early section clarifies that States must expend needy program by clarifying that employment to maintain medical their social services and targeted references to AFDC refer to the AFDC coverage under RMA during the assistance funds no later than two years payment standards and methodologies remainder of their first 8 months in the after the end of the Federal fiscal year in effect as of July 16, 1996, including U.S. The purpose of this amendment is in which the Department awarded the any modifications elected by the State to encourage early economic self- grant. Thus, under this revision, States under Section 1931(b)(2) of the Social sufficiency by ensuring that refugees must have expended social services and Security Act (SSA). This is in keeping receive continued medical assistance targeted assistance funds awarded to with the amendments made by section while employed and by ensuring that them in FY 1999, for example, by no 114 of the Personal Responsibility and refugees are not discouraged from early later than September 30, 2001, and a Work Opportunity Reconciliation Act of employment by the potential loss of State’s final financial report must be 1996 (PRWORA) to Section 1931 of the medical coverage. received no later than December 31, SSA. 2001. If, at that time, a State’s final Section 400.102 (Consideration of Subpart I—Refugee Social Services financial report has not been received, income and resources) is revised to Section 400.152(b) (Limitations on the Department will deobligate any clarify that determination of eligibility eligibility for services) is amended by unexpended funds, including any for refugee medical assistance (RMA) adding citizenship and naturalization unliquidated obligations, on the basis of must be based on the applicant’s income services to the services that are exempt a State’s last submitted financial report. and resources on the date of application, from the 60-month limitation. This revision is in response to rather than on a refugee’s income requests from several States needing a Sections 400.154 (Employability averaged prospectively over the RMA full 2-year period to expend social services) is amended by adding application processing period. services and targeted assistance funds assistance in obtaining employment The purpose of this revision is to from the end of the Federal fiscal year authorization documents (EADs) as an ensure that refugees who enter in which the funds are awarded. employment within the first few weeks allowable employability service under Section 211(a) (Methodology to be after arrival in the U.S. are not the social services and targeted used to determine time-eligibility of penalized for accepting early assistance formula programs. This refugees) is amended to clarify that after employment by denial of refugee provision will allow States to use making a determination of the RCA/ medical assistance. Refugees arrive in service funds to cover the cost of refugee RMA eligibility period as soon as the U.S. with no income, and generally provider staff time to help asylees or possible after funds are appropriated for apply for refugee medical assistance refugees obtain EADs. Social services the refugee program, the Director will very soon after arrival. With this and targeted assistance funds, however, make redeterminations at subsequent revision, a newly arrived refugee who may not be used to pay for the cost of points during the year only if a applies for refugee medical assistance EADs. reduction in the eligibility period soon after arrival and becomes Section 400.155 (Other services) is appears indicated. amended by adding citizenship and employed within the first 30 days in the Subpart K—Waivers and Withdrawals U.S. subsequent to filing the RMA naturalization services as allowable application, would not lose RMA services under the social services and Section 400.301 (Withdrawal from the eligibility. targeted assistance formula programs. refugee program) is amended by Section 400.102 is also amended to Citizenship and naturalization services removing the words ‘‘only under prohibit the consideration of any cash may include such services as English extraordinary circumstances and’’ in assistance payments received by a language training and civics instruction § 400.301(b). This would allow the ORR refugee in determining a refugee’s to prepare refugees for citizenship, Director greater discretion to approve eligibility for RMA. application assistance for adjustment to cases in which a State wishes to retain Section 400.102 is amended to legal permanent resident status and responsibility for only part of the remove references to the AFDC program citizenship status, assistance to disabled refugee program if it is in the best which no longer apply due to changes refugees in obtaining disability waivers interest of the Government, without in Medicaid eligibility determinations from English and civics requirements requiring extraordinary circumstances. contained in PRWORA as described for naturalization, and the provision of For example, when a State with a small above. interpreter services for the citizenship refugee population wishes to drop out of Section 400.103 (Coverage of refugees interview, as needed. the refugee program, but is willing to who spend down to State financial Subpart J—Federal Funding retain responsibility for administering eligibility standards) is amended to just the RMA program, it would be in clarify that all States must allow Section 400.207 (Federal funding for the best interest of the Government to applicants of RMA who do not meet the administrative costs) is amended by approve such an arrangement without financial eligibility standards elected in clarifying that a State may claim other constraints. § 400.101 to spend down to the elected reasonable and necessary administrative Section 400.301(c) is amended by standard. costs incurred by local resettlement clarifying that a replacement designee Section 400.104 (Continued coverage agencies in the administration of a must adhere to the regulations regarding of recipients who receive increased public/private RCA program. the targeted assistance formula program

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15419 under Subpart L if the State wishing to the basis of whether each refugee meets should discuss with their State during drop out of the refugee program the hours of work per week standard. the public/private RCA consultation. authorizes the replacement designee Response: The final rule includes the Federal rules would not apply since appointed by the ORR Director to act as technical changes to the definition of local resettlement agencies participating the State’s agent in applying for and TANF that were recommended by the in the public/private RCA program receiving targeted assistance funds. commenters. We have included a would not be our direct grantees. definition of family unit as requested. Discussion of Comments Received Section 400.13 We define a family unit as an individual We received one hundred and thirty- adult, married individuals without Comment: One commenter felt that six letters of comments in response to children, or parents, or custodial the new rule will impose new the notice of proposed rulemaking relatives, with minor children who are limitations on RCA which will not published in the Federal Register on not eligible for TANF. With respect to allow States to claim most case January 8, 1999. The commenters the question of whether two unmarried management costs. The commenter included State and local governments, adults living together are considered to expressed concern that the proposed national and local voluntary agencies, be one or two family units, we regard limitations may be a precursor to future refugee mutual assistance organizations, such a living arrangement to constitute funding restrictions particularly refugee service providers, advocacy two family units. We have also included regarding the administrative portion of organizations, national unions, national a definition of economic self-sufficiency the RCA allocation. The same government organizations, and national which we have defined as earning a commenter felt that the proposed case public policy organizations. We took total family income at a level that management rule would increase the these comments into consideration in enables a family unit to support itself burden on service providers to track the development of the final rule. We without receipt of a cash assistance each client by public assistance have summarized and responded to the grant. Regarding the elimination of category. Two commenters requested comments below. Some of the hours worked per week as a measure of clarification on what types of case comments addressed existing provisions self-sufficiency, we view hours worked management services are chargeable to of the regulations that were not per week as a useful measure of CMA. One of the commenters asked included in the NPRM for change. employment, not self-sufficiency, which whether administrative costs related to While we have reviewed these should not be eliminated. We require employment-related case management comments as well, we have included a States and other major grantees to report are chargeable to CMA. Another discussion of comments only on those client outcomes that include self- commenter requested confirmation that provisions outside of the NPRM that we sufficiency (sufficient earnings to case management services related to have decided to change as a result of the terminate cash assistance), which is the comments. ESL, VESL, skills training, and on-the- ultimate measure, and full-time and job training may be charged to CMA. Comments on Subpart A—Introduction part-time employment, which are Two commenters stated that activities interim measures leading to self- such as job referral, job readiness Section 400.2 sufficiency. These measures are instruction, assisted job search, job Comment: Three commenters important in tracking refugee progress development and placement, and post- recommended defining TANF assistance towards economic self-sufficiency. placement services appear to be case as TANF cash assistance since there are Comments on Subpart B—Grants to management functions under the other types of assistance which States States for Refugee Resettlement proposed rule. One commenter asked may provide with TANF funds. One whether 100% of staff time is billable to commenter recommended that the Section 400.8 the CMA grant in cases where staff have definition of TANF should include a Comment: One commenter asked for multiple functions. reference to title IV–A of the Social clarification on the relationship between Another commenter wondered what Security Act. the State Plan and amendments to the services funds are to be used for and One commenter recommended that public/private RCA plan. whether administrative funds for service the final rule define the term ‘‘family Response: The public/private RCA activities are to be added to services unit’’ to ensure consistency of plan, once it is reviewed and approved costs. One commenter suggested interpretation for cash assistance by ORR, becomes part of the larger State eliminating the requirement that payment cases. The issue of whether Plan that is required in § 400.4 and administrative costs related to the adult children are considered part of replaces the existing RCA section of the provision of social services must be their parents’ ‘‘family unit’’ or as State Plan. An amendment to the charged to the social services grant. The separate family units or whether two public/private RCA plan should be commenter felt that this requirement unmarried adults living together are treated as an amendment to the State forces States to allocate social services considered to be one or two family units Plan. funds to resettlement agencies that needs clarification. otherwise might not have received One commenter suggested adding a Section 400.11 funding through a competitive social definition of economic self-sufficiency Comment: One commenter felt this service grant process. to § 400.2. The commenter section should be amended to include a One commenter requested the recommended defining economic self- new subsection that provides for cash extension of case management as a sufficiency on the basis of total advances to resettlement agencies, chargeable expense to CMA to allow for household income in relation to a through either the States or directly 90 days of post-placement follow-up to percentage of the Federal poverty from ORR. ensure real self-sufficiency. Another standard. The commenter felt that the Response: A State’s contracting and commenter felt that there is a disparity measure of hours of work per week grant-making rules govern whether cash between ORR’s requirement to provide should be eliminated as a measure of advances may be provided to State employment services to refugee TANF self-sufficiency and that agency contractors and grantees. This is an recipients and the lack of funding for performance should not be evaluated on issue that local resettlement agencies case management of these services since

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15420 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations only case management costs targeted to Stamp/Medical Assistance recipient but Section 400.27 RCA recipients may be chargeable as will not be a TANF recipient. One Comment: One commenter CMA administrative costs. The commenter questioned whether it was recommended adding the words ‘‘or by commenter complained that this places feasible for local resettlement agencies a voluntary resettlement agency to a a State in a position where it may only to use the same hearing procedures as State’’ in § 400.27(b) to enable a State provide case management as an are used in the TANF program. Another that has established a public/private employability service to TANF commenter felt that replicating the local RCA program to monitor the provision recipients as an unfunded option. district fair hearing process for one or of cash assistance provided by a local One commenter requested that ORR more local contractors would not be resettlement agency without individual provide parameters for the allocation of cost-effective and would not make client signed consent. administrative costs and recommended administrative sense. The commenter Response: We have amended this that private agencies should have the felt that the State would have to insist section to incorporate the commenter’s same percentage of administrative that RCA hearing procedures be suggestion. overhead allowed in their contracts as consistent with TANF and general States. Comments on Subpart D—Immigration assistance hearing procedures and that Response: We have decided to Status and Identification of Refugees small contractors would not have the withdraw the provision which would Section 400.43 have allowed certain case management resources to implement such a hearing Comment: One commenter costs for RCA eligible recipients to be process. The commenter felt that the complained that the NPRM does not charged to CMA. The comments suggest proposed rule may already contain the remedy the inequitable treatment of to us that there exists a broad range of flexibility to allow for private agencies asylees. Current policy provides 8 understanding regarding case to use the public process. months of RCA/RMA eligibility to management which could result in costs Response: In keeping with asylees from their date of arrival in the charged inappropriately to CMA and/or commenters’ suggestions, we have U.S., the same as refugees. However, an inappropriate increase in revised this section by removing since it may take up to 6 months or administrative costs charged for tracking reference to the RMA program since more for an asylum applicant to be and allocating of those costs. Based on § 400.93(b) requires the RMA hearing granted asylum, the actual period of the comments, we were uncertain process to conform with the State’s RCA/RMA eligibility that is available for whether this provision would have Medicaid program, and we have revised asylees is usually 2 months or less. The resulted in sufficient benefit to refugees § 400.54(b) to require a State to specify commenter recommended amending the to justify the change. Therefore, we in its State plan what hearing process it regulations to allow asylees RCA/RMA believe that further review and intends to use in a publicly- eligibility for 8 months from the date discussion is needed before case administered RCA program. In regard to that asylum is granted as opposed to 8 management costs can be charged to whether it is feasible for local months from the date of arrival. Another CMA. Thus, the provision at 45 CFR resettlement agencies operating a commenter pointed out that the current 400.13(d), which prohibits the charging public/private RCA program to refer regulation and the proposed rule do not of case management service costs to the hearing requests to the State hearing describe how and when asylees may CMA grant, remains unchanged. process used in the TANF program or access Federal benefits and Regarding the commenter’s concern some other public agency hearing recommended that the final rule address about the administrative cost provision process, yes it is feasible as long as the this serious omission. at § 400.13(e), it is our view that State agrees to such an arrangement. Response: ORR’s policy on asylee whether private agencies should have There is no restriction in this rule that eligibility for refugee program the same percentage of administrative assistance, issued in a policy notice in overhead allowed in their contracts as prohibits States from designing public/ private RCA programs that utilize public 1982, defines the time-eligibility of an States is an issue that is up to the States asylee as beginning with the first month to negotiate with their contractors in the agency hearing procedures such as the TANF hearing procedure. in which an asylee has entered the refugee program. United States, in accordance with We have revised this section to make Comments on Subpart C—General sections 412(d)(2)(A) and 412(e)(1) of clear that the public assistance hearing Administration the Immigration and Nationality Act. procedures at 45 CFR 205.10(a) continue Thus asylees, like refugees, are eligible Section 400.23 to apply to all assistance and services for RCA and RMA during their first 8 Comment: Two commenters felt that provided under the refugee program, months in the U.S. and are eligible for the RMA hearing process used should unless otherwise specified by social services during their first 5 years be the same as the process used in the regulations in this part. For example, in in the U.S. We recognize that as a result State’s Medicaid program. One of the the determination of eligibility for RMA of the time it takes for an asylum commenters recommended that § 400.23 in accordance with § 400.93(b), the State applicant to be granted asylum, an should conform with § 400.93(b) in must use the Medicaid fair hearing asylee often has few months of existing regulations which requires that procedures. In providing RCA, the final eligibility remaining for RCA and RMA. RMA hearings be the same as those rule at § 400.54(b) specifies that States We will examine this issue further to required for Medicaid. One commenter must describe the public agency hearing determine from a policy and operational recommended that each State should be procedures they intend to use in the perspective whether the existing policy allowed to specify in its State plan what RCA program. All RCA hearings must may be modified. hearing process it intends to use in an comport with the constitutional Comments on Subpart E—Refugee Cash excepted RCA program. A State may requirements of Goldberg v. Kelly, 397 and Medical Assistance prefer to use the Food Stamp/Medical U.S. 254 (1970). See the Comment and Assistance fair hearing procedures in Response section at § 400.83 for further Section 400.50 (§ 400.51 in the NPRM) order to simplify procedures since an discussion of the hearing requirements Comment: One commenter RCA recipient is likely to be a Food for adverse RCA determinations. recommended that the definitions of

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00012 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15421 filing unit and household in § 400.51 of that the regulation implicitly requires eligibility determinations. We have existing regulations be retained and that that all eligible persons will receive amended this provision to indicate that States be required to define the RCA until they are no longer eligible. such referrals must be made promptly. members of the filing unit in their State. See, e.g., § 400.60(a). In designing a public/private RCA Another commenter pointed out that program, it is the responsibility of States Section 400.51 (§ 400.52 in the NPRM) by removing references to AFDC to develop a procedure that ensures that requirements in this section, the Comment: Four commenters refugees are properly referred to other proposed rule omits key client recommended adding a provision to this benefit programs, in accordance with protections which should not be section that would allow refugee § 400.50(c) (§ 400.51(b) in the NPRM). omitted, such as requirements that families to receive RCA until eligibility We believe that States, in consultation applications must be processed for TANF is determined. One of the with local agencies, will adequately promptly, that applicants must be commenters also recommended address how to ensure that refugees are informed of their rights and requiring States to reimburse local able to access other public benefit responsibilities, and that once an resettlement agencies for the amount of programs for which they may be individual has been found eligible, he or RCA provided during the period of eligible. The ORR Matching Grant she remains eligible until determined TANF eligibility determination. The Program has been operated for many ineligible. The commenter also same commenter recommended that years by voluntary agencies and referral recommended that the regulations local resettlement agencies should be to other programs has not been an issue should retain the requirement that required to ensure that potentially for refugees. benefits be provided to all eligible eligible refugees are assisted in applying We support the co-location of State persons. The commenter stated that this in a timely manner for TANF and SSI. and private eligibility staff and Another commenter asked for section should specify that notice to an encourage States to consider this clarification on the process to be used RCA applicant that cash assistance has arrangement in their public/private RCA to determine TANF eligibility through been authorized or denied must include program. Some of our programs, the State public assistance offices prior an explanation of the reasons for the particularly the Wilson/Fish alternative to accessing RCA. Another commenter decisions and of the right to request a programs, have very effectively co- requested clarification on whether hearing to appeal the decision. The located public eligibility workers at refugees may be determined ineligible commenter felt that this is an essential refugee provider agencies to ensure that for TANF without necessarily being element of due process and must be refugee eligibility for other cash processed through the States’ public addressed. assistance programs and other benefits Another commenter recommended assistance offices. is determined in a timely manner. that if an RCA recipient is notified of Four commenters expressed concern termination because of time- that refugees under the public/private In regard to tracking the percentage of ineligibility, the local resettlement RCA program will be less likely to refugees that are referred to and receive agency must be required to ensure that access other support and benefit RMA and Medicaid as an outcome the recipient is assisted in applying to programs. Three commenters measure, we already have a system for the appropriate State agency for other recommended adding a provision that tracking the number of refugees who cash assistance programs and that the would require local resettlement access RMA. States are required to State must be required to determine agencies to refer refugees to Medicaid, report the number of RMA recipients to eligibility for TANF and general RMA, or Food Stamps so that RCA ORR on a quarterly basis. Since assistance. applicants would be informed of their Medicaid is not under the jurisdiction of Response: Since we have included a rights to other government benefits and the refugee program and we no longer definition of ‘‘family unit’’ in § 400.2, services. Two commenters suggested reimburse States for refugee Medicaid we do not see the need to retain the that ORR address the benefits of co- costs, we do not require States to report terms ‘‘filing unit’’ or ‘‘household’’. location of State and private eligibility on refugee Medicaid use. ORR’s annual We have amended this section to staff. One commenter felt that one of the national refugee telephone survey, include the requirement that eligibility outcome measures that must be used for however, provides data on the must be determined as promptly as the public/private RCA program is the percentage of refugees in the household possible within no more than 30 days percentage of refugees that are referred survey who report receiving Medicaid. from the date of application and that to and receive RMA and Medicaid. The annual survey includes telephone applicants must be informed of their Response: While we allow refugees to interviews with a large sample of rights and responsibilities. In regard to receive RCA until eligibility for SSI is refugee households that have been in the comment that a notice to an RCA determined because the time frame the U.S. 5 years or less. applicant indicating authorization or between application and receipt of the Section 400.52 (§ 400.53 in the NPRM) denial of cash assistance must include first SSI payment is frequently long, we an explanation of the reasons for the do not see a compelling reason to allow Comment: One commenter expressed decisions and of the right to request a the same coverage for refugee families concern that, in the absence of any other hearing to appeal the decision, we have who are waiting for TANF eligibility to prompt processing requirement, this added a new § 400.54(a) which includes be determined. We have not received provision seems to suggest that a State this information. It should be noted that reports of refugee TANF applicants or agency only is required to process these notices must be translated into having to wait a significantly longer applications as quickly as possible if appropriate languages as required by period of time for eligibility there is a determination of urgent need. § 400.55. Section 400.54(a) includes a determination than RCA applicants. The commenter felt that a general requirement that a State or its designee, Regarding eligibility determination for requirement for processing all such as local resettlement agencies, other cash assistance programs, § 400.50 applications promptly should be added. must review the case of an RCA (§ 400.51 in the NPRM) includes a Response: We have added language recipient who is terminated because of requirement that States and their regarding prompt eligibility time-ineligibility to determine possible designee agencies must refer refugees or determinations to § 400.50 (§ 400.51 in eligibility for TANF or GA. We believe other cash assistance programs for the NPRM).

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Section 400.53 (§ 400.54 in the NPRM) state that the statutory authority for to their services. Section 601 of title VI Comment: Three commenters noted States to impose residency requirements of the Civil Rights Act of 1964, 42 U.S.C. that the proposed rule would eliminate does not preclude TANF eligibility for 2000d et seq. states that ‘‘[n]o person in the existing eligibility exception for full- arriving refugees. the United States shall, on the ground Response: While it may not have been time students in the current regulations of race, color or national origin, be Congress’ intent to apply residency which allows RCA eligibility for full- excluded from participation in, be requirements to newly arrived refugees time students in higher education if denied the benefits of, or be subjected from overseas, there were a few States such enrollment is approved by the to discrimination under any program or that, under State law, were applying the State, or its designee, as part of an activity receiving Federal financial State’s TANF residency requirement to assistance.’’ Language barriers individual employability plan for a newly arrived refugees, thereby denying refugee. The commenters stated that experienced by persons with limited TANF eligibility to these refugees and English proficiency can result in RCA recipients with professional skills placing them on RCA for the 8-month can benefit from full-time enrollment in exclusions, delays or denials that may RCA eligibility period. With the recent constitute discrimination on the basis of higher education to obtain certification Supreme Court ruling in Saenz v. Roe, to practice their profession in the U.S. national origin, in violation of title VI. 119 S. Ct. 1518 (May 17, 1999), which Department of Justice (DOJ) regulations The commenters recommended makes the application of residency restoration of this eligibility exception. at 28 CFR 42.405(d)(1) address the requirements to any TANF applicant circumstances in which agencies that Another commenter expressed who moves into a State concern that by restricting eligibility for administer Federal financial assistance unconstitutional, States must change must make available language RCA to refugees who are ineligible for their laws and practices. Given this TANF, SSI, OAA, AB, and APTD, all assistance, in written form, to persons ruling, we are removing this with limited English proficiency. Based newly arrived refugees will not be able requirement. to benefit from the refugee-specific on this DOJ provision, we are requiring transitional assistance to be provided Section 400.55 (§ 400.63 in the NPRM) States or the agency(s) responsible for the provision of RCA, to ensure that through the new public/private RCA Comments: Three commenters reasonable steps are taken to provide program. The commenter recommended objected that the proposed requirement written information in appropriate deleting this subsection. to provide agency policy materials to languages where a significant number or Response: Section 412(e)(2)(B) of the refugees in both English and their native proportion of the population eligible to INA prohibits refugees who are full-time language would be a significant burden be served needs information in a students in institutions of higher that would be cost prohibitive. One particular language. Although this education from receiving cash commenter suggested that States be assistance. The refugee program given an option to provide a notice in principle has never been expressly emphasizes early employment by English and provide a verbal translation stated in ORR regulations, it is a requiring refugees to become employed of the notice to refugees. Another restatement of current obligations under and self-sufficient within 8 months. We commenter recommended amending title VI and would apply in the RCA do think it’s consistent with ORR’s this provision to indicate that local program, regardless of whether the RCA program goal for an RCA recipient to contracts should demonstrate program is a public/private program or become employed and then enroll in a reasonable and practical methods to a program that mirrors the TANF professional refresher training or assist clients to understand agency program. Therefore we are moving this recertification program at refugee policies in their own languages. In provision from the public/private RCA program expense as allowed under contrast, one commenter recommended section of the regulations to the general § 400.81. that the required list of written policies RCA section and redesignating the It is not possible to include TANF- in this section should be more section as § 400.55. eligible and SSI-eligible newly arrived comprehensive to include good cause It is essential that States and/or local refugees in the public/private RCA criteria, procedures for an appeal of an resettlement agencies ensure that every program because the costs would far adverse determination, including appeal RCA recipient understands any and all exceed ORR’s level of appropriated procedures outside of the resettlement policies that will have an effect on a funding. agency. The commenter went on to recipient’s cash assistance payment. recommend that the resettlement This requirement includes all notices to Section 400.55 in the NPRM agencies should provide written notice refugees regarding eligibility, payment Comment: Two commenters noted in the refugee’s native language of the adjustments, or terminations. Regarding that the proposed rule concerning availability of the more detailed written refugee language groups that constitute eligibility redeterminations in States policies. Two commenters a small number or proportion of the with TANF residency requirements recommended that the final rule clarify RCA recipient population served, the inaccurately assumes that these that the local resettlement agencies are State or the agency(s) responsible for the residency requirements may the entities that should provide written provision of RCA is not required to legitimately be applied to refugees. One translated policies and procedures to provide written information in the commenter pointed out that Congress, individual refugees, not the State. Two native language of the refugee ethnic in enacting the welfare reform law, did commenters indicated that local group. However, States and/or local not intend for the durational residency resettlement agencies would need to be resettlement agencies must use an requirements to apply to newly arrived given administrative funds to pay for a alternative method to effectively refugees from overseas, only to lot of translators to translate agency communicate agency policies to a interstate migrants. The purpose was to policies and procedures into refugee limited English-speaking recipient such prevent secondary migration across languages. as the use of a verbal translation in the States and was not intended to preclude Response: By law, entities receiving refugee’s native language, to ensure that newly arrived refugees from accessing federal financial assistance have an the content of the agency’s policies is TANF benefits. One commenter obligation to ensure that limited-English effectively communicated to each recommended amending this section to speaking people have meaningful access refugee. We do not have a particular

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00014 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15423 position on whether local resettlement agency’s administrative and accounting local resettlement agencies have the agencies or the State should produce the staff and would detract from the capacity to administer and deliver cash written translated policies for recipients agency’s primary focus of preparing assistance and services before the in the public/private RCA program. This clients for early employment. Two program is initiated. Another issue should be worked out in the commenters were concerned that the commenter expressed concern that by development of the public/private RCA establishment of the new program limiting who the State may contract plan. The preparation of written RCA would result in trading a known system with, ORR’s proposed rule represents a policies in refugee languages and the for an unknown and untried system. step back from the flexibility provided use of interpreter/translators to explain Two commenters had concerns about to States through welfare reform. The agency RCA policy may be charged as the additional burden on local commenter felt that ORR regulations an administrative cost to a State’s CMA resettlement agencies that developing a should allow flexibility that is equal to, grant. new program for a small portion of or greater than, the flexibility allowed in clients will create, while another TANF regulations. One commenter Section 400.56(a) commenter expressed concern about the expressed concern that the new RCA Comment: Twenty-nine commenters additional burden the new program will program will require States to contract wrote in support of the public/private place on States. with agencies limited in experience in RCA program, 10 commenters stated One commenter expressed the providing income maintenance. they could not fully endorse the new opinion that the public/private program Six commenters recommended that program as proposed, and 70 as outlined in the NPRM is not practical opportunity be given to refugee mutual commenters opposed the new program. if a State has a minimal number of assistance associations and other Of the commenters who supported the refugees receiving RCA and/or those community-based organizations, in program, 8 commenters supported the refugees are geographically dispersed addition to local resettlement agencies, separation of RCA from the TANF across the State making implementation to administer the RCA program. Two of program, while 17 commenters of a public/private partnership these commenters felt that the NPRM endorsed the flexibility that the new inefficient and costly. reflected unfairness to MAAs. Two program would allow. Four commenters Nineteen commenters made the point commenters recommended amending expressed support for strengthening a that the proposed RCA program would this section to allow the greatest public/private partnership, while two only benefit a small portion of the flexibility in program design by commenters felt that the new program refugee arrival population and allowing public/private RCA would firmly unite States and recommended that the public/private partnerships with ‘‘local resettlement resettlement agencies into a partnership program should be offered to all newly agencies or other private non-profit that will best utilize their respective arriving refugees, particularly TANF- partners providing refugee-specific strengths. Of those commenters who eligible refugee families, if possible. services.’’ indicated they could not fully endorse Five commenters expressed concern Thirty-two commenters expressed the new program, two commenters about the inequity of refugees under the concern that the new RCA program will stated that unless important new RCA program being treated better increase administrative costs and components regarding resettlement than refugee families with minor questioned the cost-effectiveness of the agency capacity, flexibility, and legal children under TANF. Three proposed program. Of these, 12 protections from liability are put into commenters recommended that ORR commenters were particularly place, they had serious doubts about the pursue alternatives to TANF for families concerned about the level of new program’s likelihood of success. Of with minor children. One of the administrative costs needed to the commenters who opposed the commenters proposed shifting funds implement the new program, in light of establishment of the public/private RCA from TANF funding to create a unified the relatively small number of refugees program, 49 commenters felt that the refugee resettlement program that to be served. Five commenters felt that existing program has already includes TANF-type refugee families. contracting with local resettlement demonstrated a high rate of success in Since the proposed rule specified that a agencies to administer RCA would cost achieving self-sufficiency and family that becomes ineligible for considerably more than the existing questioned the need to change the Medicaid may be transferred to RMA, State system. Three commenters existing program. Seven commenters one commenter asked why the ORR predicted that there would be no felt that the new program would not be regulations could not also specify that savings in State agency costs that could in the best interests of refugees and families with minor children, who be used to offset resettlement agency would not benefit refugees. terminate TANF because they are costs because there would be no Five commenters felt that the unable to meet the conditions of reduction in State agency staffing or administration of RCA by private eligibility, may be transferred to RCA. State responsibilities such as RMA agencies should be an option, not a Eight commenters objected to administration, confirmation of TANF mandate. One commenter recommended restricting participation in the public/ ineligibility, and notification of letting States develop their own private RCA program only to local ineligibility to refugee clients and program design instead of mandating a resettlement agencies. One commenter resettlement agencies. One commenter certain approach. suggested that it would be more expressed concern about the risks in Three commenters expressed concern judicious, before mandating a specific managing the funding level for the new that the addition of cash assistance type of agency, if ORR tested the RCA program if local resettlement administration to the responsibilities of capabilities of local resettlement agencies overspend RCA or have other local resettlement agencies would not agencies in handling the public/private difficulties in meeting a budget. necessarily result in greater self- program through a pilot. A second Four commenters expressed the sufficiency outcomes for clients who commenter felt that it was inconceivable opinion that increased levels of only have 8 months of assistance. One to propose that States contract out administrative costs will not result in commenter expressed concern that the several hundreds of million dollars improved employment outcomes. Two distribution of cash assistance would annually in Federal funds without a commenters expressed concern that place an increased burden on the required procedure to consider whether replicating existing systems for the

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15424 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations provision of cash assistance with each the date for implementation should not 400.59, 400.60, 400.61, 400.62, and agency will duplicate bureaucracy and be extended. One commenter 400.63. multiply costs beyond reason. One recommended that more than 6 months In regard to the comments on commenter complained that the private within that one-year time frame be expanding the public/private RCA eligibility determination and case devoted to planning and consultation program to include TANF-eligible management functions would duplicate and less time for implementation, if families, while it would be ideal to responsibilities remaining with the State necessary. place all newly arriving refugees in a agency and would substantially increase Response: We have given these special resettlement program for an costs. Another commenter stated that comments, as well as the comments that initial period, it is not financially ORR should not force a more costly appear in response to other sections of feasible to do so within the refugee program on States. the proposed rule, a great deal of program’s appropriation level. The One commenter felt that although the thought and have concluded, given the program’s appropriation level has not new program will result in additional wide variance of views on the public/ been sufficient to reimburse States for costs initially, the new program, over private RCA program, that it would be the costs of refugee AFDC recipient time, will not cost more than the current in the best interests of refugees and the costs since FY 1991. Regarding the program. refugee program to offer the public/ recommendation to shift TANF funds to Five commenters raised questions private RCA program as an option, not create a unified refugee program that about funding for the administrative as a requirement, to States. We found includes TANF-type refugees, given the costs of the new RCA program. Of these, particularly compelling the argument block grant nature of TANF funding, one commenter asked how a State is to from many commenters that the any decision to use TANF funds in the know how much is available for program in its current form has been refugee program in ways that are administrative costs. Another very successful in helping refugees to consistent with a TANF purpose would commenter asked if discretionary grant achieve self-sufficiency and should not rest with States. funds will be made available to States be changed. Equally compelling were With respect to limiting participation in the public/private RCA program only to cover private agency administrative the concerns expressed by a number of costs. Another commenter asked if to local resettlement agencies, we have local resettlement agencies about the additional funding would be added to designated the same agencies that are increased administrative burden of social service formula allocations to responsible for the initial resettlement managing a cash assistance program and States to fund RCA administration. One of refugees under the R & P program to adhering to client protection and due commenter asked ORR to clarify its maintain a continuity of assistance for process requirements, as well as intent to cover administrative costs in newly arriving refugees. Many of these concerns about having legal protection the out years of the program, after initial agencies have an experienced record of from liability. Also persuasive were start-up. The commenter felt that the providing cash assistance to refugees commenters’ concerns that the NPRM was unclear about a State’s through the Matching Grant program increased costs of administering the responsibility for administrative costs. and, to a lesser extent, through the Twelve commenters expressed new program might not improve results Wilson/Fish alternative program. Those concern that an increase in for refugees. refugee community-based organizations, administrative costs to operate the new The totality of comments gave us the including mutual assistance RCA program could force a reduction in view that the public/private RCA associations, who have a subcontract the RCA eligibility period. program would be eagerly pursued in with a national voluntary agency to Twelve commenters felt that the due some States as the right approach for the provide R & P services and meet the date for implementation of the new circumstances in those States, while in definition of a local resettlement agency public/private RCA program of one year other States, such an approach would at § 400.2 may participate in the public after publication of the final rule is not necessarily result in the best private refugee cash assistance program. unrealistic. The commenters indicated program for newly arriving refugees These agencies would have had similar that many States may need more than 6 and, therefore, would not be welcomed experience in administering cash months after an RCA plan has been in those States. assistance and would offer the submitted to implement the plan to Although we have not changed our continuity of assistance we are seeking. allow adequate time to negotiate belief that this is an opportune time to In regard to comments about funding, contracts with participating agencies remove the refugee program from the discretionary funds will not be made and to develop written policy. One public welfare system and move it available to States to cover private commenter stated that it would take a towards a greater public/private agency administrative costs. As year to simply amend administrative partnership, we have no interest in described in § 400.13(e), a State may rules to accommodate the new program. forcing a public/private approach upon charge local resettlement agencies’ Two commenters recommended an 18- reluctant participants. Instead our administrative costs related to providing month deadline with at least 12 of those principal goal is to provide greater cash assistance to a State’s CMA (cash, months devoted to implementation. One flexibility to the program and its medical, and administrative) grant. With commenter suggested having the participants. Therefore, as this final rule regard to how a State knows how much implementation date coincide with the describes, instead of requiring States to is available for administrative costs, beginning of a fiscal year even if this establish a public/private RCA program, States are not given a set amount or extends the deadline beyond one year. we have decided to offer States the ceiling for administrative costs. In Three commenters recommended option of choosing this approach if they accordance with § 400.207, States may requiring States to include a proposed believe such an approach will work in submit claims for reasonable and implementation date in their public/ their State. States that choose to pursue necessary identifiable administrative private RCA plans, rather than setting a this option in concert with local costs to ORR, using ORR’s cost national due date. Three commenters resettlement agencies in their State must allocation guidelines. Since the refugee supported an implementation date of follow the regulations that specifically program began, States have been October 1, 2000, or one year after the apply to the public/private RCA reimbursed 100% for their publication of the final rule and felt that program in §§ 400.56, 400.57, 400.58, administrative claims.

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The administrative costs of managing area, they must be able to proceed even greater cost-effectiveness. While we the services component of the public/ if a minor agency is not willing or able strongly encourage States that are private RCA program, regardless of the to join the consortium. planning to establish a public/private type of agency, must be charged to a Four commenters were concerned that RCA program to consider including all State’s formula social services grant. In States may, in the interest of local resettlement agencies that are response to another comment, ORR administrative expediency, strive for interested in participating in the new intends to make discretionary funds uniformity in local program design and program, we also believe that States available during the initial years of start- unintentionally undermine private must take financial and administrative up to help States pay for services to sector diversity by excluding the smaller considerations into account, as well as refugees in the public/private RCA church-based agencies. Six commenters the capability of each agency, when program, particularly if a State’s expressed concern that States will making contracting decisions. Regarding program design plans for a different choose a lead agency or limit the whether a State and the local group of agencies to provide services to number of resettlement agencies to resettlement agencies handling the public/private RCA recipients than the contract with in order to limit the majority of resettlement in an area may State’s regular social service providers. administrative burden of administering proceed with a public/private program A State may use a portion of these multiple contracts. These commenters when a smaller agency is not willing or additional social service funds for social recommended the inclusion of able to participate, this is a decision service administrative costs, but not for safeguards to prevent any interested which the State may make. While we RCA administrative costs. resettlement agency from being require consultation with all local Regarding the coverage of excluded from full participation in the resettlement agencies as well as other administrative costs for the public/ public/private RCA program. refugee providers in the planning of the private program after the initial start-up One commenter recommended adding public/private RCA program, final years, States may continue to charge the language to the final rule that would decision-making is in the purview of the public/private program’s RCA exempt States from Federal competitive State. However, all eligible refugees administrative costs to CMA, while the procurement requirements when a lead must have RCA available to them. We public/private program’s social service agency is agreed upon through the expect that where a local resettlement administrative costs may be paid for planning process. Another commenter agency cannot or does not wish to with a State’s formula social services suggested expanding the language to participate and the State and other local funds, just as the social service allow States to contract with or make resettlement agencies decide to administrative costs of a State’s regular grants to local resettlement agencies implement a public/private RCA social service program are paid for with since the ability in some States to make program, that appropriate provisions for formula social services funds, in a grant to a non-profit is easier than referral and access to RCA will be made accordance with § 400.206. With regard contracting with a non-profit. for the refugees who are resettled by the to concerns about a reduction in the Fourteen commenters expressed non-participating agency. The Director RCA eligibility period as a result of an concern about cash flow problems that of ORR may also elect to implement the increase in costs to operate the public/ many local resettlement agencies would placement authority provided by the private RCA program, ORR’s first experience if they are under contract to Refugee Act, should it appear necessary. priority is to maintain the current RCA administer the new RCA program We have amended the language in eligibility period. without cash advances. Several of the this section to allow States to make Regarding the deadline for commenters pointed out that States grants, as well as contracts, to local implementation of a public/private RCA generally use cost reimbursement resettlement agencies as one commenter program, we agree with the suggestion contracts and do not provide cash recommended. In regard to exemption to allow States to include a proposed advances. The lack of cash up front from Federal competitive procurement implementation date in their public/ would pose a serious operating problem requirements, the regulations at 45 CFR private RCA plans, and have added such for most resettlement agencies. Eight Part 74 that require open and free a provision to the public/private RCA commenters requested that ORR include competition would not be applicable to plan at § 400.58(a)(14). A State’s a provision in the final rule that would the public/private RCA program since proposed implementation date, provide advance funding to local our regulations require States that however, may not be any later than 24 resettlement agencies either through the choose to establish a public/private RCA months after the date of publication of States or directly from ORR. One program to enter into contracts or grants the final rule. commenter pointed out that it will be with local resettlement agencies or a essential for ORR to permit the lead resettlement agency. Section 400.56(b) obligation of CMA to pay for the With the exception of a portion of the Comment: Four commenters issuance of cash assistance checks to first quarter of each fiscal year, ORR expressed the need to have the refugees in the early months of each currently provides advance CMA flexibility to arrange consortia of fiscal year until the first quarter CMA funding to States through quarterly providers in order to provide cash award is made to States. CMA allocations at the beginning of assistance and services to refugee clients One commenter asked whether the each quarter to cover anticipated costs of agencies too small to enter into direct final rule will require local resettlement in that quarter. We cannot provide contracts. These commenters pointed agencies to notify the State of refugees advance funding directly to local out that without achieving economies of who have become recipients of RCA, in resettlement agencies that participate in scale through collaboration, States will order to reduce the risk of State offices the public/private RCA program because not be able to enter into contracts at a enrolling these refugees in some other they are not our direct grantees; they are reasonable administrative cost. The cash assistance program such as General the State’s grantees or contractors. commenters also felt that if a State and Assistance or SSI. Therefore, whether cash advances may the resettlement agencies handling the Response: We have no objections to be provided to local resettlement majority of resettlement in an area are States arranging consortia of providers agencies is a State contracting or grant able to arrive at a consensus which to provide cash assistance and services matter to resolve. Regarding obligation provides services to all refugees in the to RCA recipients in order to achieve of CMA funds in the early months of the

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The President’s FY 2000 the State or by deciding that a public/ Response: Section 412(e)(1) of the budget request to Congress included private RCA program may not be INA (8 U.S.C. 1522(e)(1)) expressly multi-year spending authority for the appropriate for the State if the refugee authorizes private non-profit agencies to refugee program to allow funds population is small and is dispersed provide cash and medical assistance to appropriated in FY 1998 and FY 1999 throughout the State. If a State is newly arrived refugees. Public sector to be available through FY 2001. concerned about inequities between employees therefore are not required by Congress granted ORR this spending incentives that a refugee receives law to make RCA eligibility authority in its FY 2000 appropriation through the State’s public/private RCA determinations. Furthermore, ORR has which will allow funds to pay for RCA program and what a refugee receives implemented 13 projects under the costs in the early months of the new through a TANF-type RCA program Wilson/Fish authority where the fiscal year. elsewhere in the State, the State has the eligibility determination function has Regarding whether local resettlement latitude to minimize inequities through been successfully performed by private agencies will be required to notify States its program design of the public/private sector agencies. We have, however, of refugees who have become recipients program. States, after consultations, do changed the language by replacing the of RCA, States will have to require local have the discretion to choose the areas word ‘‘must’’ with the word ‘‘may’’ in resettlement agencies to provide them of their State where they wish to the sentence: ‘‘Local resettlement with timely information on RCA implement a public/private program agencies may be responsible for recipients since States are required to and whether they still wish to establish determining eligibility, and authorizing report RCA recipient numbers to ORR a public/private program. and providing payments to eligible on a quarterly basis. We assume that refugees.’’ We have made this change to each State that enters into a public/ Section 400.56(d) provide as much flexibility to States as private RCA program will require in Comment: Six commenters expressed possible in deciding which of the fiscal their contracts that local resettlement the view that the eligibility and eligibility functions of the RCA agencies must provide them with determination function is an essential program the State wishes to assign to information on who is receiving RCA. function of government that must be the local resettlement agencies and States will need this information to performed by public sector employees which of these functions the State monitor time-eligibility and duplication in order to ensure fair, unbiased and wishes to retain. of assistance as well as to carry out their impartial eligibility determinations. Regarding the appropriateness of responsibilities under § 400.49. We do Two commenters argued that the giving private organizations decision- not believe this issue needs to be determination of eligibility by public making authority over Federally-funded addressed further in our regulations. sector employees avoids conflicts of programs for which States are interest such as potential cost or responsible, we are aware of no legal Section 400.56(c) contract savings that may affect barrier to the kind of public/private Comment: Five commenters decision-making by private agencies. partnership that is described in this expressed concern that local Two commenters stated that the regulation. Although the regulations call resettlement agencies will not have the proposed rule inappropriately for joint planning between States and capacity to provide adequate statewide empowers private organizations with local resettlement agencies to design coverage and protection to new arrivals. decision-making and policy-setting and implement a public/private RCA These commenters predicted that the authority for Federal funding for which program, clearly, final decision-making geographic dispersion of refugees in States are ultimately responsible. authority in regard to the public/private their States would result in refugees Another commenter recommended that program’s policies rests solely with the who reside in remote pockets of a State ORR amend this provision from ‘‘must State as our direct grantee. having difficulty accessing assistance be responsible for determining Regarding protections from liability, and services. Another commenter was eligibility * * *’’ to ‘‘may be we cannot provide local resettlement concerned that if an area of the State responsible for determining eligibility agencies with protection from liability. chooses to opt out of the new RCA * * *’’ to allow more flexibility for an No agency, public or private, is free of program, this situation could be alternative division of tasks between the liability. Clients have a right to take inequitable for refugees since the resettlement agencies and the States. legal action if they feel they have been flexibility and incentives provided to One commenter recommended that treated unfairly or discriminated refugees in the parts of the State where States and local resettlement agencies against. In regard to the question about the public/private RCA program is should have the flexibility to allow repayment of unallowable expenses to operating may not exist in the sections eligibility determination by either party. ORR under the public/private RCA of the State where a publicly- Eleven commenters expressed program, since States are ORR’s administered RCA program is operating. concerns about liability. The grantees, States, as the recipients of the One commenter felt that a State must commenters pointed out that local funds, would be responsible for have complete discretion to choose resettlement agencies administering repaying the Federal government for those areas of the State in which a cash assistance could be sued by a improper expenditures. Local public/private program may be refugee who disagrees with a decision. resettlement agencies, as subrecipients, implemented and should not be bound Even if an agency is proven to be right, would be accountable to the State, not by a need to reach agreement on this the cost of staff time and legal fees to ORR. issue with a small local resettlement would be very high. These commenters agency. requested that the final rule include a Section 400.56(e) Response: Concerns about reaching provision to indemnify local agencies in Comment: One commenter expressed refugees who reside in remote pockets disputes. One commenter asked for the opinion that the prohibition against

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One commenter suggested population ethnic breakdown to State cannot compel local resettlement that States should look at the last 3 determine the degree of representation agencies to participate in a private RCA years of refugee arrivals in their of each ethnic group at the program, a State would have to maintain respective States to determine the consultations. the current RCA program in areas where appropriate proportion of In regard to participation by counties, only some local resettlement agencies representatives from each refugee group we agree and have amended this section chose to participate in the new program. that should be included in the decision- to include counties. The participation of Response: We see no justifiable making. Two commenters noted that counties is particularly crucial in States rationale for operating both a public/ counties are not included in the such as California where the refugee private RCA program and a publicly- planning process and should be. The program is a county-administered administered RCA program in the same commenters expressed concern that the program. geographic location. This would not be new RCA program will be administered As we indicated in our response to programmatically wise; it would be without the leadership and experience comments relating to § 400.56(d), we duplicative, expensive, and confusing. of the California counties. Two agree that final decision-making on In cases where not all local resettlement commenters suggested that the final rule policies for the public/private RCA agencies are interested in participating should contain language that reflects program is the ultimate responsibility of in the public/private program, the State ORR’s commitment to making the RCA the State as our grantee. However, we has the latitude to decide to establish a plan a joint effort on the part of States see nothing in this section that is public/private RCA program in which and local resettlement agencies. The inappropriate. all RCA-eligible refugees are served only commenters felt that States should Section 400.57(b) by those local resettlement agencies that negotiate the new RCA program with are interested in participating in the local resettlement agencies first, as Comment: Two commenters program. There would be no need to primary participants, before consulting questioned the need for a public operate a publicly-administered RCA with others. comment period, with one commenter program in the same locale just because Two commenters cautioned that suggesting that this provision appeared some of the local resettlement agencies setting eligibility policies for the public/ unnecessary, redundant, and of little do not want to participate in the public/ private RCA program should not be a usefulness. This commenter also private program. The deciding factors, negotiation or joint decision-making suggested that a longer planning period in our view, would be the number of process with private agencies. One would be necessary in part because of resettlement agencies that are not commenter pointed out that a this requirement. Two other interested in participating and the government agency can be required to commenters recommended that a proportion of new arrivals to the area consult with private agencies on the description of the public comment that these agencies have resettled. If policies, but should not be required to process be included in the State’s these agencies represent the majority of have the resettlement agencies public/private RCA plan, including a new arrivals resettled in the area, this participate in the final decision-making. list of participants and a summary of would argue against establishing a One commenter recommended that the comments received. public/private program. final rule should make clear that the Response: We have reconsidered our final decision on the policy elements of proposed requirement for public Section 400.57(a) the public/private RCA plan is the sole comment on the public/private RCA Comment: Nine commenters responsibility of the State agency. plan and have decided that this expressed the view that national Response: We agree that national requirement is not essential enough to voluntary agencies must be included in voluntary agencies should be involved justify the additional time and burden the planning, development, and in the planning and development of a that implementation of this requirement oversight of the public/private public/private RCA program. We have would place on States. We have, partnership. One of the commenters amended § 400.57(a) accordingly to therefore, removed this requirement. We further stated that the involvement of include national voluntary agencies in believe the comments of agencies and the national agencies should entail the planning and consultation process. individuals involved in refugee establishing national standards to guide With regard to limiting participation resettlement will provide the necessary program design, assisting affiliates in in the planning and consultation input that States will need to develop a developing program models and process only to MAAs and other public/private RCA program. However, performance measurements, and organizations that represent current and States still have the option of soliciting encouraging and facilitating anticipated refugee groups, we do not public comment. consultations. Two commenters agree with this limitation. We believe suggested that the planning and MAAs and other agencies that serve Section 400.57(c) (§ 400.57(b) in the consultation process, in addition to the refugees, but are not representatives of Final Rule) local resettlement agencies, should these refugees in the sense of being of Comment: Five commenters include only MAAs and community the same ethnic group, are important expressed concern about this provision service agencies that represent current organizations to include in the planning that would require a local resettlement and anticipated refugee groups. Two and consultation process because of agency to inform its national voluntary commenters wrote in support of the their experience as refugee service agency of the proposed public/private importance of MAA participation in the providers and because they are likely to RCA program and obtain a written planning and consultation process. be affected by the establishment of a agreement that the national voluntary One commenter felt that it is public/private RCA program. We agree agency would continue to place refugees important to ensure that recent arrivals that States should make sure that each in the State under the public/private

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RCA program. Four commenters felt that continue to a State that does not decide rather than a detailed description. The the role of the national voluntary to establish a public/private RCA commenter pointed out that a detailed agencies in the public/private program program. We do not see the necessity of plan would have to be changed annually should be clarified. Two commenters such a requirement; voluntary agencies since ethnic groups, community needs, recommended that documentation be have been resettling refugees in States and available resources vary annually. included that the national agencies with publicly-administered RCA In contrast, another commenter felt that endorse the plan. One commenter said programs for years. The structure of the the proposed plan does not require that agreement by the national agencies RCA program is only one factor to be sufficient detail of the program policies to continue resettling refugees in the considered in placement decisions in and procedures to be established in a State is an important provision. conjunction with other factors such as State’s public/private RCA program. However, this commenter wondered if it family reunification, available Two commenters opposed requiring an is allowable for a national voluntary employment opportunities, and suitable RCA plan that is separate from the State agency and a State to agree that the local resettlement conditions. Plan that States are required to submit affiliate agency will not be participating to ORR under § 400.4. One commenter Section 400.58 in an RCA contract but will be resettling recommended amending § 400.58(a)(4) refugees. The same commenter asked if Comment: One commenter asked if to read: ‘‘including a description of a national voluntary agency would be States only have a one-time opportunity employment incentives and/or income prohibited from continuing to resettle in to participate in the public/private RCA disregards to be used, if any, as well as an area if the national voluntary agency program and if States that opt to do the methods of payment, i.e., direct cash, and State could not agree on an RCA new RCA program have the latitude to vendor payments, etc.’’ contract. The commenter also later choose to opt out of the public/ Three commenters objected to the questioned whether letters had to be private program. words ‘‘easy access’’ in § 400.58(a)(5) as received from every national voluntary Response: States are not limited to a too vague. Two of the commenters felt agency, even if only a few place refugees one-time opportunity to participate in that ORR should set minimum access in the State. One commenter suggested the public/private RCA program, nor are requirements that the public/private that the letters of agreement from States prohibited from opting out of a RCA program must meet. One national voluntary agencies should public/private program at a later date. commenter recommended at a include an assurance that refugee States are expected to make their initial minimum that the final rule require that placements in the State will continue decision within 6 months and to refugees have access during normal when the planning process determines implement whatever RCA option they business hours and not be required to that a public/private RCA program is choose—a public/private RCA program, travel more than two hours round trip not feasible and an excepted RCA a publicly-administered TANF-type to access any benefits or services. program or Wilson/Fish program is RCA program, or a Wilson/Fish Another commenter was concerned that selected. alternative—no later than 24 months the use of a vague term such as ‘‘easy Response: We agree that national after the date of publication of the final access’’ could produce a standard for voluntary agencies should have the rule. If, in the future, a State that access to benefits that will result in opportunity to register their support or implemented a publicly-administered litigation. One commenter endorsement of a State’s proposed RCA program decides it wishes to recommended revising this provision to public/private RCA plan. We have, switch to a public/private RCA program, require RCA benefits administered therefore, amended this provision to the State may do so by following the under the public/private RCA program require that letters from national requirements in §§ 400.57 and 400.58 to be provided in as timely manner as voluntary agencies should indicate that and submitting a public/private RCA under the current system. the national agency supports the plan plan as an amendment to the State Plan Four commenters felt that the plan and intends to continue resettling for ORR review and approval. Similarly, requirements regarding client refugees in the area. Letters from only if a State that originally implemented a protections and due process should be those national agencies resettling public/private RCA program decides it strengthened. One of the commenters refugees in the area need to be solicited. would be better to change to a publicly- felt that the due process requirement in It is permissible for a State and a administered RCA program, the State the plan is insufficient and that a national voluntary agency (and the local may do so by submitting a State Plan detailed description of the procedures affiliate) to agree that the local affiliate amendment to ORR for approval. that the public/private RCA program agency will not be participating in a will follow should be required. The Section 400.58(a) public/private RCA contract or grant but commenter recommended that the final will continue to resettle refugees in the Comment: Ten commenters expressed rule should require that all services and State. Similarly, a national voluntary concern regarding the degree of program notice be provided in the refugee’s agency would not be prohibited from and budget information required in the native language and that the RCA plan continuing to resettle refugees in a State public/private RCA plan. Five describe how this requirement will be if the national voluntary agency (and commenters felt that the level of detail met. Three commenters felt that the local affiliate) and the State cannot agree regarding budgets and other program RCA plan should include a listing of on an RCA contract or grant, provided details required is unrealistic and good cause criteria for non-compliance that arrangements are included in the inappropriate to include in the RCA with work activities. Another State plan to ensure that refugees plan since it will likely change commenter recommended that certain resettled by the non-participating regularly. One of the commenters due process elements should be agency will be referred to the suggested it would be more appropriate required in the RCA plan: that refugees participating agency or agencies for to include detailed budget information cannot be subject to any eligibility services and assistance. in the annual budget estimate that States criteria that are not set forth in the We do not agree with the suggestion are required submit to ORR under an public/private plan; that applications be that letters of agreement from national existing provision in § 400.11(b)(1). processed promptly; that an applicant voluntary agencies should include an One commenter felt that a general be informed of rights and assurance that refugee placements will service description should be required responsibilities, and that an individual

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One date of application and to inform problem to the attention of the State and commenter recommended that ORR be applicants of their rights and obtain intervention, whether through an flexible with due dates to allow responsibilities. Such requirements do ombudsman or State Refugee planners sufficient time to handle not need to be addressed in the RCA Coordinator. Two commenters unexpected contingencies and to make plan; they need to be described in the expressed concern that the client changes to the plan during its public/private program’s procedural and protection and due process development. policy manuals. We believe the other requirements of the RCA plan will Response: We believe it is essential recommendations regarding client require local agencies to fully replicate for the public/private RCA plan to protections are excessive or are the welfare system, particularly in include the details this section requires. unnecessary because they are regard to sanctions and appeals, fraud Each of the items in the plan is adequately addressed in other sections control, case composition, important to address and thoroughly of the regulations. employability standards, and medical consider in order to successfully Regarding concerns that the client exams relating to employability. implement the new program. Given that protection and due process Another commenter asked what a shift to an RCA program administered requirements for the public/private RCA requirements of the public system by private agencies represents a major program will turn local resettlement would not be required of the private change in the refugee program, we need agencies into mini-welfare systems, the system. to see the details of the proposed reality is that private agencies that Five commenters specifically objected program in order to make a responsible administer the RCA program are subject to the language in § 400.58(a)(13) which decision regarding approval. Regarding to the due process requirements requires a breakdown of costs budget, we require a breakdown of contained in the U.S. Supreme Court ‘‘including per capita caps on proposed program and administrative decision in Goldberg v. Kelly the same administrative costs.’’ The commenters costs in order to assess the cost as public agencies. In States that elect to recommended deleting the reference to effectiveness of various program establish a public/private RCA program, per capita caps on administrative costs, designs. It is essential that States it will be important for local stating that per capita or percentage provide the required budget breakdown resettlement agencies that are concerned caps on administrative costs would as part of the public/private RCA plan. about taking on due process make it difficult to maintain small However, in subsequent years, after the responsibilities to work with their State programs, would limit case management new program is implemented, it makes in delineating the due process capacity, and would limit a local sense, per one commenter’s suggestion, responsibilities that the State may be agency’s capacity to participate in the to include budget information on the willing to retain, such as the hearing public/private RCA program. One public/private RCA program in a State’s process, and those responsibilities that commenter asked ORR to cite the annual budget estimate to ORR. the private agencies may have to authority for requiring a cap on In regard to the requirement that the exercise, such as notifying applicants or administrative costs. budget breakdown include per capita recipients in a timely fashion that Three commenters suggested adding caps on administrative costs, we want to benefits have been denied or terminated new elements to the RCA plan. The clarify that we do not intend to impose and explaining the reasons for the commenters recommended adding a caps or ceilings on administrative costs, action and how the decision can be § 400.58(a)(14) that would require a nor are we authorized to do so in our appealed. description of the public comments statute. The intent of the language on Regarding the words ‘‘easy access’’, process used, including a listing of the administrative caps is simply to require, we have decided that a more participants and a summary of in a case where a State decides to set an appropriate term to use is ‘‘reasonable comments received in the RCA plan. administrative cap in its contracts or access’’ and have amended this One commenter recommended adding a grants with local resettlement agencies provision accordingly. Rather than § 400.58(a)(15) that would require a in an effort to contain costs, that the prescribing what reasonable access description of the performance State include this information in its means, we prefer to allow States to standards and measures upon which the budget breakdown. We have amended define reasonable access in keeping new program will be monitored. the language in this provision to clarify with circumstances in their particular Two commenters expressed concern that information on administrative caps State. States may define reasonable that the proposed public/private RCA should be included only when a State access in terms of the length of time it plan requirements add substantially to proposes to use a cap on administrative takes a recipient to reach the local existing reporting requirements. One of costs. resettlement agency, such as the the commenters felt that the In response to a commenter’s example provided by the commenter, or requirement for a detailed budget suggestion, we have added language to in terms of the distance between the specific to the public/private program § 400.58(a)(4) that requires information location where a recipient resides and without eliminating any other plans and on methods of payment, in addition to the location of the agency. reports already required, adds to the employment incentives. We have In response to comments about the administrative burden and to the cost. decided, however, not to add any new due date for submission of the public/ Twenty-four commenters felt that a 6- elements to the RCA plan, other than private RCA plan, we have changed the month period to develop a public/ the inclusion at § 400.58(a)(14) of a due date for the plan to no later than 12 private RCA plan is too short, while one proposed implementation date. months after the date of publication of commenter felt that 6 months was an In regard to comments that client the final rule. A State that chooses to adequate time frame. Two commenters protections and due process establish a public/private RCA program, recommended allowing 9 to 12 months requirements should be strengthened in however, must notify the ORR Director

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00021 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15430 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations of its choice no later than 6 months after considering a sponsor’s income and Two commenters suggested that ORR the final rule is published. As stated in resources when determining eligibility advise States to consider the possible response to the prior comment, States for RCA. impact of increased benefit levels on that initially decide to implement a Response: We have amended this eligibility for RMA and consider the use public/private RCA program must do so section, as well as § 400.66, in keeping of indirect payments or non-cash within 24 months of the date of with the commenters’ suggestion. payments to avoid adverse effects. publication of the final rule. Response: In order to ensure that ORR Section 400.60(a) has adequate funding from Section 400.58(d) Comment: Six commenters felt that appropriations to meet cash assistance Comment: Two commenters objected the payment ceilings were inadequate. costs, it is necessary to balance the to ORR prior approval of the public/ Another commenter concurred, but desire for higher payment ceilings, or no private RCA plan. One of the stated that the payment ceilings should payment ceilings, against the need to commenters recommended deleting the be increased to the extent that the accurately forecast costs. A payment prior approval requirement and the 45 appropriation permits without reducing ceiling serves as a budget forecasting days for the plan to be approved. the eligibility period. Another tool used by ORR to estimate cash Response: We believe that ORR commenter suggested that the final rule assistance payments. ORR has set the review and approval of the public/ should include payment ceilings that payment ceilings at a level that private RCA plan is essential, as is our are based on the most recent Federal represents what ORR estimates it can review and approval of all elements of poverty level depending on when the provide to meet each refugee’s basic the State Plan. final rule is published. Another needs from appropriated funds without Section 400.58(e) commenter wants an assurance in the lowering the RCA eligibility period, final rule that refugees will not be tied based on the most recent data available Comment: One commenter regarding the number of RCA refugee recommended deleting this provision to State standards for TANF, which the commenter describes as inadequate. arrivals. In fact, the ORR payment that requires that any amendments to ceilings are higher than many State the public/private RCA plan be Another commenter did not support the establishment of a national payment TANF payment levels. The payment developed in consultation with local ceilings are based on the 1998 HHS resettlement agencies and submitted to ceiling. Instead, this commenter suggested that States and local Poverty Guidelines. As stated in the ORR. Another commenter felt the NPRM, if the Director determines that proposed amendment process was too resettlement agencies make cash payments to refugees at a level they the payment ceilings need to be cumbersome and recommended that adjusted for inflation, ORR will issue only a major change in providers and agree is best suited to achieving early self-sufficiency and to enriching the revised payment ceilings through a eligibility and benefit amounts should notice in the Federal Register. quality of life. One commenter felt that require a plan amendment. One In States where the public/private it would be better to use funds to extend commenter recommended amending RCA payment ceilings are higher than a this provision to require that any the RMA eligibility period instead of State’s TANF payment level, if a State amendments to the RCA plan must be increasing RCA benefit levels. is concerned about maintaining developed in consultation with the Seven commenters expressed concern uniformity in the payment levels of both national voluntary agencies, as well as that public/private RCA payment rates programs for the sake of equity, States local resettlement agencies. One could be higher in a given State than the have the flexibility to set the public/ commenter recommended that any TANF payments, creating an inequity private RCA payment equal with the amendment to the public/private RCA for participants in the two programs. TANF payment or to use the difference plan should include consultation Two of the commenters felt that between the TANF payment level and beyond the local resettlement agencies, consistency across programs, especially the higher public/private RCA payment to include MAAs, refugee service if the State operated a public/private level for purposes such as one-time organizations, and the public. program for RCA recipients in major direct cash incentives for early Response: We have not made any resettlement areas and a State excepted employment and self-sufficiency, or changes to this provision. We believe program in the balance of the State, is non-direct cash purposes such as rent or each of the items listed in § 400.58(a) is important to maintain. The commenters a loan to cover the cost of tools as one sufficiently major to require that recommended adding language to this commenter recommended. We see no amendments to these items be section that would allow States to need to amend this section to allow this submitted to ORR for review and reserve the difference between the type of flexibility; the flexibility already approval, since changes to these items TANF payment level and the higher exists in the proposed rule. will have an effect on RCA recipients. RCA payment level for non-direct cash With respect to the possible impact of In regard to suggestions that purposes such as first and last month’s increased benefit levels on RMA consultations on plan amendments rent, a Job Access loan to cover tools, eligibility, we have removed the should include a broader range of etc. possibility of adverse effects on RMA agencies, including national voluntary One commenter stated that ORR is eligibility by adding a requirement agencies, MAAs, and the general public, erroneously assuming that few families under § 400.102 that any cash assistance we believe such a requirement would be with minor children are relying on RCA payments received by a refugee may not excessive and unnecessary. because they are eligible for TANF in be considered in a determination of most States. The commenter believed RMA eligibility, including RCA or any Section 400.59 that significant numbers of families will cash grants received by a refugee under Comment: Three commenters need to rely on RCA rather than TANF the Matching Grant program and the recommended adding language that since in nearly half the States, two- Department of State or Department of would prohibit States and local parent families are not eligible for TANF Justice Reception and Placement resettlement agencies from considering unless they meet certain requirements programs. any resources remaining in the regarding work history or current Regarding one commenter’s belief that applicant’s country of origin or from unemployment. significant numbers of refugee families

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00022 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15431 with dependent children will need to and work incentive bonus before the design. These are not issues that ORR rely on RCA, ORR’s RCA participation earnings are received if this amount intends to regulate. data do not support the commenter’s plus the cash payment exceeds the In regard to States where the focus is assertion. To the contrary, we have monthly ceiling. The same commenter on placing refugees into early experienced a steady and significant also stated that the NPRM seems to employment to limit the need to access national decline in the RCA preclude one-time payments for work- cash assistance, such States, in order to participation rate since the inception of related expenses such as tools or maintain this focus, could choose to State TANF programs, particularly in uniforms in states where the RCA design their public/private RCA States where refugee families with monthly payment is near the ceiling program as a cash assistance diversion dependent children were historically level. program where newly arriving refugees served in the RCA program because they One commenter asked whether cash would be given a one-time payment for did not meet the AFDC work history payments may continue to be given after not accessing RCA. It is important to requirements for two-parent families. a refugee becomes employed. The emphasize that with this final rule, We have seen a major shift of refugee commenter also wondered whether each States will have a great deal of families with children from the RCA local resettlement agency would be free flexibility to design a public/private program to the TANF program. to give different employment RCA program as they choose. Section 400.60(b) incentives/bonuses as is done in the Section 400.61 Matching Grant program or whether all Comment: Twelve commenters Comment: Two commenters resettlement agencies would have to objected to limiting the contracting of concluded that the NPRM seems to limit give identical assistance. reimbursements to States to no more services under the public/private RCA One commenter stated that the NPRM than the ORR payment ceiling so that program to local resettlement agencies, seems to make it beneficial to clients to States with a TANF rate higher than the thereby excluding many experienced access cash assistance before job RCA ceiling would have to absorb the MAAs and community-based placement which may delay the goal of difference between the two payment organizations from providing services to self-sufficiency and increase rates with no ORR reimbursement. public/private RCA recipients. These dependence on cash assistance. This Another commenter asked whether commenters expressed particular may pose a problem in States where the refugees will receive less than 8 months concern that refugee providers that have goal is to place refugees in jobs right of payments in States where the TANF been the primary employment service payment level is higher than the RCA away before accessing cash assistance. providers in a number of States, and ceiling. The commenter suggested providing have a successful record of moving Response: We do not intend to limit incentives to those States and local refugees to self-sufficiency, would now reimbursements to States to the public/ resettlement agencies that obtain be excluded from receiving service private RCA payment ceiling in immediate job placements for refugees. contracts under the public/private situations where RCA is paid at a higher Response: We have revised this program, resulting in a loss of expertise TANF payment rate. In States where the section to allow States and their public/ offered by these organizations. One TANF payment is higher than the RCA private RCA agencies the flexibility to commenter made the point that the payment rate, we will reimburse States exceed the monthly payment ceiling in proposed rule would duplicate or for RCA costs at the higher TANF order to provide incentives to encourage replace services that are already payment rate. In States where the TANF early employment as long as the total successfully operating. Five commenters payment level is higher than the RCA payment to a refugee does not exceed were concerned that local resettlement ceiling, a refugee’s RCA eligibility the ORR monthly ceiling times the total agencies in many States may not have period will not be affected by the higher number of months in the RCA eligibility the experience or capability to offer payment rates. period. We will allow this flexibility in effective employment services to the monthly payment ceiling with one refugees. One of the commenters Section 400.60(c) stipulation: States and local worried that those resettlement agencies Comment: Eight commenters resettlement agencies must ensure that that are inexperienced in providing recommended allowing States to offer RCA funds for any refugee are not used employment services will require a long bonuses or other incentives that exceed up before the end of the 8-month period period of time to achieve the level of the monthly ceiling as long as the total in a way that would jeopardize a refugee expertise held by existing service combined payment to refugees does not who might need cash assistance in the providers, thereby creating a gap in exceed the monthly ceiling times the latter part of the 8-month eligibility services. Another commenter felt that total number of months in the eligibility period. In other words, we do not want the final rule should require local period. The commenters felt this type of to see a total of 8 months of RCA funds resettlement agencies to maintain flexibility would allow States and local given to a refugee early in the eligibility subcontracts with existing qualified resettlement agencies to design a period such that there are no RCA funds service providers. One commenter program that rewards early left for that refugee should he/she need raised the point that some States now employment. Two commenters wanted assistance in the latter months of the 8- provide services directly, a role that to use varying levels of cash assistance month eligibility period. ORR is proposing to give to local and other incentives throughout the 8- Cash payments may continue to be resettlement agencies. month period instead of providing equal provided after a refugee becomes Three commenters felt that the monthly payments in the belief that this employed as long as a State’s public/ exclusion of MAAs violates the type of approach would most effectively private RCA program design permits principle of equal opportunity by encourage early employment. Another cash payments after employment. discriminating against MAAs. One commenter expressed concern that the Whether each local resettlement agency commenter observed that the proposed ceiling limits the flexibility to support will be able to provide different exclusion of MAAs and community- work by providing stipends or employment incentives instead of a based organizations appears to run incentives up front since the NPRM uniform incentive again will depend on counter to ORR’s emphasis on would not allow a work expense stipend a State’s public/private RCA program empowering communities because it

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00023 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15432 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations disempowers the very community-based redundant and unnecessary, given the while we would encourage States that organizations that were founded by existing Government Performance and choose to establish a public/private RCA refugee communities. Results Act (GPRA) measures that ORR program to contract or award grants for Three commenters stated that the already requires of States and Matching services, whenever programmatically proposed program is in conflict with Grant agencies, as well as the wise, with the same agencies that California law (AB 3245) which places Department of State’s Reception and administer the cash assistance program, responsibility for refugee employment Placement standards and local TANF we have decided not to mandate States service programs with the counties. standards. If separate standards must be to do so. We will leave it to the States Nine commenters recommended that established for the new public/private to select the service agencies that can the services contracted to local program, the commenters argued for most effectively help refugees in the resettlement agencies under the public/ designing the measures at the local public/private RCA program become private program should be limited only level, not the national level. employed and self-sufficient. to those employment services While one commenter indicated In public/private RCA programs in designated in the State Plan. Twelve support for designing outcome measures which local resettlement agencies are commenters felt that services such as that assess more than employment responsible for both the provision of ESL, health screening, mental health outcomes, the commenter cautioned cash assistance and services, the locus services, and vocational training are that measures such as language of accountability will rest with these more efficiently contracted by the State outcomes require more sophisticated agencies for the achievement of for the total refugee population and means of assessment. The commenter resettlement and self-sufficiency should not be fragmented through local recommended that ORR needs to outcomes, as well as for the provision of resettlement agency administration for consider for the final rule the outcome proper and timely cash payments to the public/private RCA recipient expectations that are most appropriate refugees. In the case of public/private population. within the limits of an 8-month RCA programs where States choose to One commenter observed that program. One commenter took issue contract or award grants for services separate service programs for RCA with the language that ORR is looking with different agencies than the local clients are unworkable and if mandated, to the resettlement agencies ‘‘to ensure resettlement agencies that are will greatly increase costs. that refugees receive the skills, such as administering the cash assistance Five commenters felt that post-RCA English language acquisition * * *.’’ program, States will be required to: (1) services should not be restricted to The commenter noted that no one can Establish procedures to ensure close ethnic community providers and that ensure this and felt that it doesn’t make coordination between the local the current array of eligible providers sense to add this as an outcome because resettlement agencies providing cash should be maintained. Three it doesn’t involve any measurable result, assistance and the agencies providing commenters asked whether refugees other than a process outcome. services to RCA recipients; and (2) set who become self-sufficient and no Three commenters felt that the up a system of accountability that longer receive cash assistance will difference in performance measures identifies the responsibilities of the continue to be eligible to receive social followed by the Department of State and different participating agencies and services. Two commenters asked ORR should be made into a uniform set holds these agencies accountable for the whether service dollars would have to of measures where both agencies are results of the program components they go through the lead agency and then be using the same measures and the same are responsible for. subcontracted out to other resettlement time frames for looking at outcomes. In regard to commenters’ agencies in cases where a lead agency is Response: While philosophically we recommendations that the services that used to administer the public/private believe in the wisdom of having the public/private RCA agencies provide program. One commenter asked whether same agencies that are responsible for should be limited to employment a local resettlement agency could the placement of refugees in a State to services, our position is that the range provide social services if the agency is also be accountable for what happens to of services that agencies, be they local not providing cash assistance. Another these refugees in regard to economic resettlement agencies, MAAs, or other commenter wanted clarification on and social self-sufficiency, we are agencies, are contracted to provide whether an RCA client returns to the persuaded by the comments that in under the public/private program is a local resettlement agency for services if terms of the provision of services, it State decision. The only stipulations are the client becomes employed before 8 would not make sense to require States that the services must be among the months of services are up and then to contract or award grants for services allowable services listed in §§ 400.154 becomes unemployed, thereby needing only with local resettlement agencies and 400.155 and the service agencies more services. under the public/private RCA program. must be held accountable for Ten commenters had comments about In States where local resettlement employment and self-sufficiency program outcomes in the new program. agencies are the major providers of outcomes. We agree that services such Four commenters felt that the final rule employment services, it would make as ESL, health screening, mental health needs to provide more specific guidance eminent sense for a public/private RCA services, and vocational training do not on what the outcome measures and program to contract with the have to be provided by the public/ criteria will be for evaluating the resettlement agencies for both the private RCA service agencies and may success of the new program. One provision of cash assistance and be more effectively provided by other commenter cautioned that the public/ services. But we recognize that in States agencies. private program may result in higher job where MAAs and other community- With respect to the provision of post- placement costs because service based organizations have been the RCA services, we did not intend to providers that have had experience in primary providers of employment imply that post-RCA services may only providing job placements at low cost services, it would not be in refugees’ be provided by ethnic community will, in some cases, be replaced by less best interests to divert RCA refugees providers. Services provided to refugees experienced providers. Three away from the established refugee social after their 8-month participation in the commenters viewed the establishment service network to agencies that may be public/private RCA program may be of another set of outcome measures as new to employment services. Therefore, provided by any provider that a State

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Three commenters were resettlement agencies must maintain concerned that the funding to support Section 400.62 ongoing coordination with MAAs and national voluntary agency participation other ethnic representatives to ensure Comment: One commenter asked how was not clearly identified in the NPRM. that services provided under the public/ local resettlement agencies will be given One of these commenters stated that the private program are coordinated with their fair share of secondary migrant funding mechanism to support the longer-term resettlement services that cases that are resettled through national national voluntary agencies’ role should are frequently provided by ethnic voluntary agencies that do not have be embodied in the regulations and not community organizations after the 8- affiliates in the local area. The left to the availability of discretionary month RCA period. This statement was commenter wondered if ORR intends funds. Three commenters suggested that not meant to suggest that MAAs and each resettlement agency to be assigned more clarity is needed on which other ethnic organizations are the only all secondary migrants who were training responsibilities rest with States providers of post-RCA services. resettled through their national office. and which with the national voluntary In cases where a lead agency is used Another commenter wondered how the agencies. One commenter felt that this to administer the public/private program will be equitably managed by provision was too vague and suggested program, whether service funds must go the State if secondary migrants resettle that national agencies should be through the lead agency to other in areas without representation by local required to provide certification that the resettlement agencies through resettlement agencies. One commenter training of all relevant staff has been subcontracts is up to States to decide as suggested that in the case of secondary conducted prior to the start of the part of their program design. ORR is not migrants who are not affiliated with a project. One commenter, a local requiring a particular approach when a local resettlement agency, it might make resettlement agency, felt that the role of lead agency is used. In response to sense to allow a refugee service provider the national voluntary agencies should another comment, a local resettlement that has contact with the secondary be limited to training and technical agency could provide social services migrant to be responsible for eligibility assistance and only when it is requested even if the agency is not providing cash determinations and the provision of at the local level. Two commenters assistance. A client in the public/private cash assistance and services under the suggested that the States were in a better RCA program who loses a job before the public/private RCA program. Another position to train local agencies. end of the 8-month period and needs commenter requested ORR guidance on Response: Since national voluntary additional services should return to the the impact of secondary migration on agencies have had a long-term oversight same service agency that was providing outcome measures, particularly relationship with their affiliate agencies the client with services before he or she secondary migrants who arrive late in in regard to both the R & P program and got the job. the 8-month eligibility period. the Matching Grant program, we believe With respect to comments on program Response: The arrangement used to it is appropriate and useful for national outcomes, we do not believe that serve secondary migrants will be voluntary agencies to share in the detailed guidance on program outcomes determined by States. In States that plan responsibility of preparing local for the public/private RCA program to establish a public/private RCA resettlement agencies for their new role should be regulated. We intend to issue program, commenters should take up in implementing the public/private RCA guidance on outcome measures for the their concerns about the assignment and program. In States that choose the public/private program at a later date handling of secondary migrants with public/private RCA option, we would through a State Letter just as we have their State during the planning and expect the State and the relevant done in regard to outcome measures for consultation process. national voluntary agencies to work out the social services and targeted the details of the training together and Section 400.63 (§ 400.64 in the NPRM) assistance programs, under the delineate precisely which training Government Performance and Results Comment: Fourteen commenters responsibilities will be carried out by Act. The commenters’ concerns about provided comments on this provision. the State and which responsibilities will the potential redundancy of establishing Seven commenters opposed the use of be carried out by the national agencies. another set of outcome measures in national voluntary agencies in training We do not feel that the details of the addition to what States are already local resettlement agencies for the new training should be prescribed in required to report under GPRA is a RCA program either because they regulation. States that elect to establish point well-taken. We will make every questioned how a national organization a public/private RCA program are likely effort to dovetail outcome requirements could meaningfully provide training to to develop different program designs to minimize redundancy and reporting local affiliates on a plan jointly that will vary in terms of local burden as we consider, in collaboration developed by States and local agencies resettlement agency responsibilities, with States, outcome measures for the or because they felt the use of requiring customized training, not a new public/private RCA program. discretionary social services funds for national, regulated delineation of Regarding measures of English language this purpose could not be justified, training responsibilities between States acquisition and basic living skills, we given the need to address long-term and national voluntary agencies. do not intend to include process social adjustment issues with these Regarding funding to support national outcomes, such as classroom funds. voluntary agency participation in enrollment, in our consideration of Four commenters felt that national training, we do not believe that it is appropriate measures for skill voluntary agencies could play a useful appropriate or necessary to regulate the acquisition. role in providing technical assistance funding mechanism to be used to pay Regarding commenters’ requests that and monitoring to local affiliates. One of for national voluntary agency the Department of State and ORR use a the commenters, a State, suggested that participation in the public/private uniform set of measures and time the national agencies could be helpful program. We believe the use of non- frames, we are working with our DOS in assisting local affiliates to develop formula discretionary funds will be the colleagues to reduce differences in the the capacity to manage cash transfer best way to support national voluntary outcome measures that each agency uses systems and in advising States on their agency participation.

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Section 400.65 in the NPRM order to choose the excepted program. would either have to make the public/ Comment: Three commenters thought One commenter indicated that requiring private program identical to TANF, or that monitoring needs to begin States to show that they have made a have refugees in different parts of the immediately after implementation. One ‘‘good faith effort to reach an State receiving different benefits. Seven commenters recommended commenter thought that use of agreement’’ as a condition of receiving expanding the alternatives in States that discretionary funds for monitoring is approval from ORR for an excepted RCA determine that neither a public/private unacceptable and that funding to program is inappropriate. One RCA program nor an excepted program support this activity must be integral to commenter recommended that the requirements and criteria for an are the best approach for their State. the program and part of the final rule. exception be deleted and this section be Four commenters recommended One commenter felt that the monitoring amended to allow a State to choose the including a voluntary agency model as by ORR, the State, and the national proposed program structure that meets an option under this provision, while agencies as proposed in the NPRM is the needs of refugees in the State. The three commenters specifically not reasonable and that monitoring by commenter also recommended adding recommended the Matching Grant just one entity would be sufficient. language that gives the Governor of a program as a viable alternative that Another commenter thought that local State the latitude to elect to operate its should be added under this provision. agencies and States can develop their public RCA program consistent with the One commenter recommended adding a own responses to training and State’s TANF program, without ORR model of direct contracting between monitoring needs. Two commenters review. This flexibility would allow ORR and national voluntary agencies as suggested that the final rule should have States to operate the RCA program in a an alternative. Two commenters specific performance measures by manner that is least divisive for the recommended that currently funded which the new program will be States. comprehensive alternative projects evaluated. One of the commenters felt Thirteen commenters recommended would be acceptable alternatives under that the regulations require compliance making it harder for States to opt out of this subsection. monitoring, but do not require States to a public/private RCA program. Seven Response: In keeping with our take any action against agencies based commenters recommended requiring decision to allow States the flexibility to upon findings. Another commenter said Governors to obtain concurrence from choose among different options for the that the regulations should empower the resettlement agencies in States that RCA program, we have removed the state agencies to terminate a private decline to participate in the public/ proposed section and replaced it with a agency’s ability and right to participate private program. Two commenters provision that allows States the option in a public/private partnership at any recommended that ORR require a full of modeling their RCA program after time for mismanagement. Two explanation and accompanying their State TANF program. States will be commenters supported joint monitoring documentation before granting an required to submit an amendment to but thought that arrangements, exception. Two commenters their State Plan describing the elements particularly dates, times, and content recommended requiring public hearings of their TANF program that will be used need to be negotiable and planned as part of the exception process. One in their RCA program pursuant to the cooperatively in advance. commenter recommended adding procedure described in § 400.8 no later Response: We have decided to remove additional criteria for seeking an than 6 months after the publication of this section. Now that the public/private excepted program to make it harder for the final rule. A publicly-administered RCA program will be optional, it does States to opt for the status quo. Two TANF-type RCA program must be not make sense to regulate a particular commenters questioned what guarantees implemented no later than 24 months monitoring approach for the public/ are there that States will act in good after the date of the publication of the private program. If a number of States faith in negotiating with voluntary final rules. Those States that wish to choose the public/private option and are agencies. Two commenters maintain their current AFDC-type RCA interested in a joint monitoring recommended that the Governor of a program, instead of changing to a approach that involves the national State must make a good faith effort TANF-type RCA program, may submit a voluntary agencies, we will explore through meetings with local request for a waiver to the ORR Director ways to support that collaboration. resettlement agencies and other under § 400.300. The ORR regulations Regarding the suggestion that the final organizations, prior to making a that govern an AFDC-type RCA program rule should contain language that decision to request an exception. have been retained for this purpose empowers States to terminate a local Two commenters suggested that under § 400.45. resettlement agency’s participation in States should have the option to In regard to the comments that argued the public/private program for continue operating the RCA program for making it harder for States to opt out mismanagement, States already have using old AFDC rules rather than the of a public/private RCA program, we do this authority through State grant and State’s TANF rules. One of the not believe that such a course of action contract rules. commenters stated that his State did not would benefit the refugee program and see it as a burden to maintain a separate would only serve to foster an adversarial Section 400.65 (§ 400.66 in the NPRM) system based on former AFDC rules. climate between States and local Comment: Eight commenters stated One commenter recommended that in resettlement agencies. In addition, it is that States should not have to go the case of a State that has an excepted unrealistic and inappropriate to require through a cumbersome waiver process program as well as a public/private a Governor to obtain concurrence from to opt to continue a public sector RCA program operating in the State, the State resettlement agencies to opt out of a program. Two of these commenters felt should be allowed the option to use the public/private RCA program. A that the public sector program should be same payment levels, eligibility Governor does not have to obtain the requirement, with the public/private standard, etc. in the RCA excepted concurrence from service agencies RCA program being the exception. program as in the State’s public/private before making a decision on a program. Three commenters objected in particular program, instead of being required to We have no objections to the to having to go through an elaborate, mirror TANF. The commenter pointed recommendation that States that choose time-consuming consultation process in out that without this flexibility, States to operate both a public/private RCA

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15435 program and a TANF-type RCA program and allowable work activities, creates Section 400.81 in their State should be allowed the confusion by only referring to certain Comment: One commenter pointed option of using the same payment levels aspects of the TANF work requirements, out that § 400.81(c)(2) in existing and eligibility standards in the TANF- thereby implying that other aspects of regulations should be removed since it type RCA program as in the public/ the TANF work requirements would conflicts with proposed revisions to private RCA program. If, for some apply to the State-excepted RCA § 400.81(b) which limits full-time reason, a State wishes to, and is able to, program. The parenthetical reference to professional recertification services to set up such an arrangement, we have no hours and allowable activities should individuals who are working. Another problems with such an approach. either be deleted or comprehensively commenter argued that the proposed Regarding comments on alternative expanded. rule to restrict full-time professional RCA options, neither the Matching Response: We agree with the recertification training to refugees who Grant program nor another direct commenter and have deleted the words contracting arrangement between ORR are employed should be withdrawn. The ‘‘hours of participation and allowable commenter felt that it should be up to and national voluntary agencies would work activities.’’ be an appropriate alternative for the each State’s RCA program to decide State-administered RCA program Comments on Subpart F—Requirements whether such training may be available because these models involve direct for Employability Services and to a refugee who is not employed. grants from ORR rather than contracts or Employment Response: Our thanks to the commenter for pointing out the problem grants administered by States. Any Section 400.75(a) alternative that a State chooses would with § 400.81(c)(2). We have removed have to allow State management of the Comment: One commenter this subsection. We continue to hold to alternative. However, outside the recommended adding a new item (7) to our view that full-time professional context of this regulation, the Wilson/ this subsection that would require recertification training is an appropriate Fish authority at § 412(e)(7)of the INA refugee RCA recipients who are also use of our funds for employed refugees, allows non-profit agencies to be direct Food Stamp recipients, if they live in a but not unemployed refugees. We do not grantees of ORR. geographic area where there are no believe that this type of full-time refugee service providers, to participate training, which generally is not short- Section 400.66 (§ 400.67 in the NPRM) in the Food Stamp Employment and term in duration, is appropriate for Comment: One commenter Training (FSET) program as a condition unemployed refugees in a program that recommended that States operating an of receipt of RCA. emphasizes early employment and has a short period of cash assistance. excepted RCA program should be Response: If an RCA recipient lives in allowed to make the beginning date for an area where there are no refugee Section 400.82 RCA cash assistance payments to be the providers, the recipient may participate date of application even if cash Comment: Five commenters in the FSET program or any other expressed concern that the proposed assistance payments are started later employment and training program to under the State’s TANF program. The rule does not adequately ensure the satisfy the requirement at § 400.75(a)(1) constitutional due process rights of RCA commenter felt that the short RCA that an RCA recipient must participate eligibility period justifies avoiding any applicants and recipients. One in employment services within 30 days commenter cautioned that ORR cannot delays in payment. One commenter felt of receipt of RCA. that the final rule should make clear give resettlement agencies flexibility to that adherence to other TANF rules is Section 400.76 decide what due process must be only required with respect to financial provided. The commenter further Comment: Two commenters indicated eligibility and clearly state that the full cautioned that providing inadequate their support for removal of Federal range of non-financial eligibility guidance on due process issues would requirements for exemptions from policies and procedures under TANF do handicap local resettlement agencies employability services, while one not apply to RCA. from understanding what is expected of commenter felt that the regulations Response: After considering the them under the law and would increase should retain certain exemptions such commenter’s suggestion, we have the likelihood of violating the as persons over 65 who are amended this section to allow States constitutional rights of refugees. incapacitated or are needed in the home that have elected to operate a publicly- One commenter felt that it is essential to care for an incapacitated family administered RCA program to use the that the regulations govern all adverse member. The commenter also felt that date of application as the beginning date actions and hearings for both the public/ the regulations should exempt victims for RCA payments, in lieu of the TANF private RCA program and the excepted of domestic violence from work beginning date for cash assistance RCA program. The commenter noted activities under certain circumstances. payments, if they so choose. We agree that the language in this section Two commenters recommended that the that States should have the flexibility to regarding the public/private RCA final rule should permit States to add choose the earlier start date for cash program appears to apply to all adverse additional exemptions from the work assistance payments in light of the short actions and hearings, while the language requirements. eligibility period for RCA recipients. regarding the excepted RCA program We have amended § 400.66(a)(4) Response: We are leaving it up to the seems to limit adequate notice and an (§ 400.67(e) in the NPRM) by adding the States to determine the exemptions they opportunity for a hearing to work- word ‘‘financial’’ before the word believe are necessary for the RCA related sanctions. In addition, there is ‘‘eligibility.’’ program. States are as capable, if not no requirement that notice must be in more capable, of making decisions on the refugee’s native language or that Section 400.67 (§ 400.68 in the NPRM) exemptions as we are. We trust the good cause criteria be provided in Comment: One commenter indicated States to make intelligent decisions on writing in the excepted RCA program. that the language in the proposed when and under what circumstances to The commenter also noted that the regulation, that identifies TANF work exempt victims of domestic violence proposed rule requires that local requirements as hours of participation and elderly persons. resettlement agencies provide timely

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15436 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations and adequate notice of any the cost and burden of providing written opinion that local resettlement agencies determination but does not define these notice in a refugee’s language, as we do not have the structure to administer terms. The commenter pointed out that said earlier in response to similar an appeals process. The commenter felt the Supreme Court decision in Goldberg comments on § 400.55 (§ 400.63 in the that the entire appeals process should v. Kelly contains considerable detail on NPRM), agencies that administer remain in the public agency where an what constitutional due process requires Federal financial assistance are required adjudicatory structure and necessary with regard to timely and adequate under title VI of the Civil Rights Act of safeguards exist to protect client rights. notice. These details should be included 1964 to provide written information in Two commenters recommended that in the final rule to prevent local appropriate languages where a hearings be conducted by an impartial resettlement agencies from significant number or proportion of the official outside of the local resettlement inadvertently implementing inadequate eligible population requires the agency. One of the commenters standards, thereby risking litigation. information in a particular language in specified that the independent outside Another commenter felt that while order to fully understand the content of entity must be a State or local hearing safeguards are necessary to protect the information. In regard to refugee authority. Three commenters felt that clients, it would be highly language groups that constitute a small the final arbiter of disputes should be counterproductive if standards were proportion of the recipient population the State. One commenter limited to the complex standards of the served, agencies must use an alternative recommended that States be given the public assistance system. The method, such as verbal translation into option of choosing to have all hearings, regulations should allow the the refugee’s language, to effectively including the initial hearing, conducted development of standards more communicate the content of the notice outside of the local resettlement agency. appropriate to private service providers. of adverse action to the recipient. Two commenters felt that the final rule Two commenters were concerned that It is important to clarify that the due should explicitly indicate that the final the requirement to provide written process standards that agencies must hearing by an independent outside notice in a refugee’s native language follow are not standards derived from entity must be conducted prior to would be extremely costly and the public assistance program, as one termination of benefits. The final rule burdensome. One of the commenters commenter suggested; they are should specify that aid must be paid suggested giving States the option of standards prescribed by constitutional pending this independent hearing. providing notice in English with a law. Regarding whether a sanction One commenter recommended that verbal translation of the notice. implies loss of service as well as loss of States be required to specify the hearing One commenter asked whether a cash assistance, ORR’s definition is that process to be used in their State Plan. sanction implies loss of service as well sanction implies loss of cash assistance The commenter felt that States should as loss of cash assistance. One only. Reversals of sanctions in the case have the option to elect the Food Stamp commenter suggested requiring States to of administrative error, without administrative hearing process rather specify in their State Plan what sanction question, are not only allowed, but are than the TANF process since RCA process it will use. The commenter felt required. recipients are also likely to be Food that States should be allowed to choose Stamp recipients and the same action Section 400.83 either the Food Stamp Employment and would result in a sanction in both Training (FSET) or TANF sanction Comment: One commenter felt that programs. process because an RCA recipient is the NPRM does not adequately ensure One commenter was concerned that a more likely to be an FSET recipient than compliance with due process principles non-centralized fair hearing system may a TANF recipient. Three commenters because the proposed rule includes only increase the possibility of non-uniform indicated that it would be essential to selected due process requirements treatment of refugees in the appeals allow reversals of sanctions in the case instead of fully incorporating the due process. Six commenters expressed of administrative error or changes in a process provisions of the existing ORR concern that local resettlement agencies client’s circumstances that warrant a regulations which cite 45 CFR 205.10(a) will be required to fully replicate the reversal of decision. of the AFDC regulations. welfare system functions to meet client Response: This section of the NPRM Two commenters were concerned that protection requirements. Three described actions that private agencies the proposed rule does not specify any commenters urged ORR to allow some administering the public/private RCA time frames for completion of the flexibility in the design of due process program must take to meet due process mediation and hearing process and protections and suggested that the requirements and did not provide the recommended language specifying time Matching Grant program be looked at as same level of detail with respect to a periods and automatic referral of a model. publicly-administered program because adverse determinations to an Response: We have created a new we believe that State TANF programs independent State entity. Both § 400.54 that provides more detail about must follow the due process commenters felt this was particularly the appeals process resulting from any requirements established by the crucial because of the short duration of adverse action in the RCA program, Supreme Court in Goldberg v. Kelly, 397 the RCA eligibility period. The including sanctions. While we recognize U.S. 254 (1970). However, we have, timeliness of the process should be that local resettlement agencies may nonetheless, added a new § 400.54 that responsive to the refugee’s need for a find it burdensome to put into place governs all notices and hearings in both quick resolution. required due process procedures, the the public/private and publicly- One commenter asked whether an due process requirements set forth in administered RCA programs. Section independent mediator on contract with the U.S. Supreme Court decision in 400.54 defines ‘‘timely’’ and a local resettlement agency would be an Goldberg v. Kelly must, by law, be met. ‘‘adequate’’. We have also made clear in acceptable approach and if so, where Publicly-administered RCA programs § 400.55 of the final rule that written would funding come from to pay for may use the TANF hearing procedures, notice in refugee languages applies to such a mediator. One commenter Food Stamp hearing procedures, or any publicly-administered RCA programs as opposed contracting out the other public agency hearing procedures well as the public/private RCA program. adjudication of appeals to any private in accordance with § 400.54(b)(2) as In regard to commenters’ concerns about entity. The commenter expressed the long as they meet the due process

VerDate 202000 17:33 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm03 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15437 standards in Goldberg v. Kelly and as case of a public/private RCA program the regulations should be changed to long as the sanction requirements under where a pre-existing State-administered provide all States with as much § 400.82(c)(2), which are required by hearing process is not used. flexibility as possible to use a higher statute, are followed. In keeping with financial eligibility standard. Comments on Subpart G—Refugee the commenter’s suggestion, States are One commenter recommended that if Medical Assistance required under § 400.54(b)(2) to indicate the final rule continues the requirement in their State Plan the hearing process Section 400.100 that States without a medically needy program must use their section 1931 to be used. In developing a public/ Comment: Two commenters suggested methodologies in their RMA program, private RCA program, States and local that § 400.100(a)(4) be deleted or resettlement agencies may decide, as the final rule should be revised to at revisited because mandatory several commenters suggested, that the least allow a State to use the termination of medical benefits for best arrangement would be for all methodologies that a State currently has clients sanctioned under either the hearing requests to be referred to a in place in their Section 1931 category, public/private or public RCA program State-administered hearing process, rather than require States to use the July should not occur. One of the such as the TANF hearing process or 16, 1996, methodologies. commenters noted that the refugee some other public agency hearing One commenter recommended program statute does not authorize or process. States and local resettlement eliminating § 400.101(b) so that obsolete mandate denial of eligibility for RMA if agencies may decide, however, not to AFDC need standards do not have to be a refugee has lost RCA eligibility due to use a pre-existing State-administered applied to RMA. The commenter felt process. We wish to note that the courts a sanction. Another commenter pointed that this subsection is repetitive with have never stated that due process and, out that States have the option to the following section. in particular, fair hearings, must be terminate medical benefits for clients Response: After considering the provided by a governmental agency. In receiving TANF who are sanctioned. comments, we have revised this section fact, the Supreme Court affirmed a prior One of the commenters recommended to extend the 200% of the Federal Medicare Part B process which required that, at a minimum, States should be poverty level eligibility standard option final, non-reviewable decisions to be given the option as to whether to have to RMA programs in all States. We have made by hearing officers appointed by a policy that denies RMA to refugees in also amended § 400.101(b) to allow a private insurance companies. See RCA sanction status and/or be allowed State to use the section 1931 Schweiker v McClure, 456 U.S. 188 to align their RCA/RMA sanction policy methodologies that a State currently has (1982). with their TANF/Medicaid sanction in place. policy. Although the AFDC rules did not Section 400.102 permit aid to be paid to the claimant One commenter felt the use of the pending an administrative appeal of an term ‘‘filing unit’’ is technically more Comment: Four commenters adverse evidentiary decision, we agree correct and consistent with Medicaid supported RMA eligibility being with the recommendation that a eligibility requirements and should be determined on the basis of income on refugee’s RCA benefits should not be maintained. the date of application. Two terminated until after a final Response: We agree with the commenters recommended that the final administrative action has been taken. commenters that § 400.100(a)(4) which rule indicate that cash assistance We have included this requirement in limits eligibility for RMA to refugees provided through the public/private the final rule at § 400.54(b)(4). Of who have not been denied or terminated partnership should not be determined as course, if the agency action is upheld, from RCA should be removed. We have either income or asset for purposes of the assistance must be repaid. done so. We have been advised that the RMA eligibility. The commenters hoped In response to the comment on more correct term to use, in keeping that this revision would eliminate the mediation, it would be an acceptable with Medicaid terminology, is need for spend-down which is a approach for a local resettlement agency ‘‘assistance unit’’. We have changed the hardship on newly arrived refugees and to contract with an independent term accordingly. is hard to administer. One commenter felt that ORR should use the term mediator, if the State agrees to this Section 400.101 approach. This type of service is ‘‘methodologies’’ wherever the word administrative in nature and could be Comment: Four commenters strongly ‘‘standards’’ is currently used in this claimed against the State’s CMA grant. supported the provision for increased section to be consistent with the The comments regarding the need for flexibility for RMA eligibility terminology used in the Medicaid time frames is well-taken. We have determinations. Several commenters statute. added specific time frames for expressed concern that the ability to set Response: In considering the completion of the mediation and higher financial eligibility standards comments, we have decided to add a hearing process in the public/private only seemed to apply to States with requirement that cash assistance RCA program as follows: In accordance medically needy programs under payments may not be considered in with § 400.83(a)(1), mediation must Medicaid and does not apply to refugees determining eligibility for RMA. This begin no later than 10 days following in States without medically needy would apply to cash assistance the date of failure or refusal to programs. The commenters payments made under the publicly- participate, and may continue for a recommended coverage as well in States administered RCA program, the period not to exceed 30 days. This is the without a medically needy program in Department of State’s Reception and same time frame we required for order to allow more refugees to remain Placement program, the Matching Grant conciliation in prior ORR regulations. eligible if they have earnings and to program, a Wilson/Fish alternative Regarding a time frame for completion allow more late arriving spouses to be project, and the public/private RCA of the hearing process, we have decided eligible. One commenter said that there program. This change will ensure that in § 400.54(b)(1)(iii) to require that final is no apparent legal or policy reason to cash assistance payment levels such as and definitive administrative action restrict either the Section 1931 financial those in the public/private RCA must be taken within 60 days from the eligibility option or the 200% of the program will not jeopardize RMA date of a request for a hearing in the Federal poverty level option, therefore eligibility.

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We have added the word term ‘‘referral and interpreter services’’ adjustment to legal permanent resident ‘‘methodologies’’ to this section. should be defined, questioning whether status and the cost of assisting disabled translation services are included in refugees to obtain N–648 disability Section 400.103 interpreter services and whether waivers from English and civics Comment: One commenter indicated information can be provided, or only requirements for naturalization. Agency that some States do not have spend referral. This commenter asked whether assistance to help asylees to obtain down programs and, instead, use their emergency services and community employment authorization documents own state-funded medical assistance education of the elderly, youth gang (EADs) is not a citizenship service. programs. The commenter intervention, resolving intergenerational However, we see it as an employability recommended deleting this section or conflict and similar services are to be service and have added assistance to amending it to allow States to use a provided only to refugees who have obtain EADs as an allowable service substitute methodology appropriate for been in the U.S. less than 5 years. This under § 400.154. Assistance to obtain their State. Another commenter commenter recommends that more EADs, as an allowable service for which recommended changing this provision expensive employability related services ORR funds may be used, must be to allow refugees with medical expenses and ESL be provided for the under 5- limited to the agency staff time used to to spend down to the financial year population while the occasional assist an asylee or refugee to obtain an eligibility standards that are used in the emergency and other community EAD and does not include paying the State’s RMA program. services be provided without regard to fee for EADs. Response: We have clarified this time in country. section so it is clear now that States Response: We agree with the Comments on Subpart J—Federal with a medically needy program and commenters that citizenship/ Funding States without a medically needy naturalization services should be Section 400.207 program must allow RMA applicants to available to refugees who have been in the U.S. more than 5 years as well as Comment: One commenter said that spend down to the requisite financial the regulation does not address how eligibility standard used in their State. refugees who have in the country less than 5 years. We have amended administrative costs will be determined, The provision has been amended to especially for States with very low require States to allow applicants for § 400.152 accordingly. We define referral and interpreter services to refugee numbers. One commenter asked RMA who do not meet the financial whether a State could limit voluntary eligibility standards used by the State to include translation services as well as the provision of information about agency administrative costs. Two spend down to such a standard using an commenters asked for clarification as to appropriate method for deducting services to which a refugee will be referred. We also consider referral and what constitutes reasonable cost and incurred medical expenses. The State who makes that determination. One can use the methods set forth in 42 CFR interpreter services to include assistance to refugees to apply for the referred commenter asked whether there is a 435.831(d) or a reasonable substitute guaranty that all CMA administrative methodology. service or benefit and following up to ensure that refugees receive the service. costs will be reimbursed by ORR. Section 400.104 Services such as emergency services, Response: It is up to a State to determine its administrative costs for Comment: Six commenters wrote in community education of the elderly, the public/private RCA program; ORR support of the provision to allow youth gang intervention, conflict does not determine a State’s refugees who lose eligibility for resolution, and other community administrative cost needs. In answer to Medicaid due to early employment to be services may not be provided to refugees the second comment, a State may limit transferred to RMA. Two commenters in the U.S. over 5 years unless these the administrative costs of participating recommended that this provision be services are funded by ORR non-formula resettlement agencies. Regarding revised to make the transfer from social services or non-formula targeted reimbursement of CMA administrative Medicaid to RMA without an eligibility assistance funds. costs, we will reimburse 100% of a determination mandatory. One Section 400.155 State’s reasonable and necessary commenter suggested that the provision Comment: Thirty-four commenters identifiable administrative costs, be revised to ensure that a refugee who expressed support for the inclusion of including the administrative costs of the is receiving Medicaid and has been citizenship services as an allowable public/private RCA program, to the residing in the U.S. less than the time service under the social services and extent available appropriated funds eligibility for RMA, is transferred to targeted assistance formula programs. allow. To date, since the inception of RMA without an eligibility One commenter suggested that ORR the refugee program in 1980, ORR has redetermination ‘‘for the duration of the consider allowing voluntary agencies to been able to reimburse States each year 8-month eligibility period.’’ be reimbursed for the costs of assisting for 100% of their administrative costs Response: We have amended this refugees to obtain employment with available appropriated funds. provision by making the transfer from authorization documents. This In regard to what constitutes Medicaid to RMA without an eligibility commenter also suggested that ORR reasonable cost and who makes that determination mandatory. allow the cost of assisting refugees to determination, we refer commenters to Comments on Subpart I—Refugee Social apply for adjustment of status to legal ORR’s cost allocation guidelines which Services permanent resident. Another were issued to States in 1985 and commenter suggested that ORR clarify continue in effect. See Transmittal No. Section 400.152 that funds can be used to assist disabled 85–137 (June 18, 1985). These Comment: Twenty commenters refugees in obtaining N–648 disability guidelines describe the kinds of suggested that ORR add citizenship/ waivers from English and civics administrative costs that States may naturalization services to the list of requirements for naturalization. claim and the allocation of these allowable services for refugees who Response: To clarify, we do consider different types of administrative costs to have been in the U.S. more than 60 citizenship services to include the cost different ORR funding sources. These months. Two commenters said that the of assisting refugees to apply for guidelines, however, do not prescribe a

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Beyond that, we have program, not the administrative ACF office responsible for issuing used statutory carry-forward language component of the new program. These refugee program cost allocation contained in recent appropriation laws funds will not be used to cover the guidelines, and States, which are to provide surplus CMA funds to States program’s administrative costs, except responsible for setting the cost of for social services or to help cover the for the administrative costs of providing different administrative activities, are resettlement costs of emergency arrivals social services. After the initial years of both responsible for making the such as the Kurds in FY 1997, and more start-up, the service component of the determination as to what constitutes recently, the Kosovars. new program will be covered by a reasonable administrative costs in the State’s formula social services funds, Other Comments refugee program. while the program’s administrative costs Comment: Nineteen commenters will continue to be claimed against Section 400.210 expressed concern that it would not be CMA funds. Regarding the concern that Comment: Nine commenters in the best interests of refugees to the use of non-formula social service expressed support for the proposed reduce available funding levels for funds to supplement State formula change to extend the due date for a formula and discretionary refugee social social services could result in curtailing State’s final financial report for social services to pay for high administrative some discretionary projects now in services and targeted assistance formula costs to run the new program. One place, ORR’s non-formula social service grants. Two of these commenters commenter adamantly opposed the use funding has been sufficient over the indicated that 90 days for closeout may of social service funds to cover years to cover continuation projects as not be long enough, with one administrative costs in the new well as new funding uses. We do not commenter suggesting 120 days for program. Another commenter noted that agree with the assertion that refugee closeout. One commenter stated that even States that choose not to operate a social services funds have steadily ORR’s prohibition against obligating public/private program would be hurt to declined on a per capita basis over the cash and medical assistance beyond the the extent that the increased costs for past 12 years. To the contrary, refugee current fiscal year presents a procedural start-up, training, and monitoring in the formula social services funds have problem for the public/private new RCA program in participating increased somewhat over the 12-year partnership, which will have to operate States would result in the availability of period, while non-formula social on a contractual basis. less non-formula social service funding services have increased dramatically Response: The due date for a State’s for other States. over recent years. Since FY 1995, final financial report for social services Four commenters expressed the refugee arrivals have declined, thereby and targeted assistance formula grants opinion that refugees will be penalized increasing the per capita amount for will remain at no later than 90 days after after the initial years of start-up because services. the end of the two-year expenditure the increased administrative costs Comment: Sixteen commenters period. We do not believe a longer needed to run the new program will expressed concern about how the close-out period is warranted. have to be paid with social services establishment of the new public/private funding or a reduction in the RCA Section 400.211 RCA program would affect the eligibility period. Two commenters continued operation of the Matching Comment: One commenter asked expressed concern that ultimately the Grant program and wondered how the what ORR will do when there is excess cost of administration for the new two programs would be synchronized. money, given the proposed change to program will be at the expense of The commenters were concerned that § 400.211. The commenter suggested essential refugee services. Two the use of the Matching Grant program that excess funds be passed on to States commenters stated that ORR non- would be diminished. for their uncovered costs and unfunded formula funds should be used to assist Response: We do not intend to reduce mandates of resettling refugees. long-term refugee TANF recipients to the use of the Matching Grant program. Response: The purpose of the become self-sufficient, not to pay for The Matching Grant program is an proposed change to this section is to start-up costs. Another commenter important alternative program for avoid a situation where ORR would be stated that the use of discretionary moving refugees to early self-sufficiency required by its regulation to increase the social services funds to supplement and we remain committed to the RCA/RMA eligibility period mid-way formula funds may result in curtailing program. As State plans for establishing through the fiscal year because a some discretionary projects that are in a public/private RCA program emerge, redetermination is made at that time place, which will compromise services we will work with the Matching Grant that indicates sufficient funds are now and doubly so at the end of the agencies to determine in what ways the available to raise the RCA/RMA grace period. One commenter would Matching Grant program should be eligibility period for the remainder of welcome additional social services modified, if at all, to ensure that the the fiscal year. Raising the eligibility funds in lieu of the program changes. public/private program in a State and a period to 9 months for the balance of the Another commenter stated that the costs Matching Grant program in the same fiscal year and then reducing it back to of the new program would further erode State are working in concert to avoid the current 8-month eligibility period at refugee social services, which have duplication. the beginning of the next fiscal year, due steadily declined on a per capita basis Comment: Four commenters felt that to insufficient funds to sustain the over the past 12 years. the final rule should provide adequate higher eligibility period, would not be Response: The administrative costs of transition rules between the old and in the best interests of either refugee the new public/private RCA program new RCA programs. Two commenters recipients or the States that have to will be covered by CMA funds, not stated that ORR should fund an overlap

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00031 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15440 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations period to ensure that refugees in the old public/private RCA program would be system potentially hindering refugee program experience no interruption of coordinated with the Department of utilization of other programs. benefits. State Reception and Placement (R&P) Response: The refugee service system Response: We would anticipate that program. Two commenters felt that in most States is a separate network of States which decide to establish a States would need to recognize the resettlement and employment services public/private RCA program would plan requirements for employment under the that are not co-located in a one-stop to have an overlap period where R&P program so that local resettlement shop system. The establishment of a refugees currently on RCA would agencies would be able to maintain their new public/private RCA program would continue in the old RCA program until ability to place free cases in the State. not alter this arrangement. Because of their eligibility expires, while refugees Another commenter asked whether the the unique nature of the refugee who arrive in the State after a certain provision for free case employment will resettlement program, Congress did not date would enter the new public/private be maintained. One commenter said that intend for refugee program services to program. We intend to reimburse States RCA handled by the local resettlement be merged into a one-stop shop system for the RCA costs in both programs agencies would enable more refugees to with employment and training services during the overlap period. receive RCA, thereby providing a more for the general population. To the extent Comment: Two commenters made the viable bridge between reception and that services are offered at a one-stop point that employment services under placement support and earned income. shop that are appropriate to the needs the new RCA program should be One commenter asked how existing of refugees, we encourage refugee coordinated with Food Stamp agreements between the voluntary providers to help refugees to access employment and training activities agencies and the State Department those services. (E&T), noting that able-bodied refugee would be changed and asked about the Comment: One commenter Food Stamp recipients must meet Food role of the State Department in the recommended an immediate effective Stamp employment and training public private partnership. One date for the RMA changes and the participation requirements in order to commenter asked whether services to inclusion of citizenship services as an receive more than 3 months of Food refugees resettled by a voluntary agency allowable service. Stamps. One of the commenters asked if in an adjoining state are to take the Response: The general effective date the final rule would give the States the place of State Department reception and in this rule is 30 days from the date of authority to pass on to private agencies placement services. One commenter publication of the final rule, as required any financial penalties that result from noted that § 400.51 appears to allow by the Administrative Procedure Act, 5 the agencies’ RCA/Food Stamp RCA during the first 30 days, which is U.S.C. § 553(d). However, we recognize recipients not participating in the contrary to DOS reception and that States vary in the amount of time required E&T services. placement provisions. required to revise RMA policy Response: We received guidance from Response: We agree that the instructions and implement the changes the Food Stamp Program on November relationship between the State in RMA and that some States may not 11, 1997, which clarified that refugee Department’s R&sP program and the be able to implement these changes employability services approved, public/private RCA program is within the 30-day time frame. Therefore, funded, or operated by ORR are important. We will work in partnership while we expect States to implement the federally recognized training programs with the State Department to ensure that RMA changes as quickly as possible, we for the purposes of Food Stamp the two programs work well together to will allow States that need extra time to eligibility. Therefore, refugees achieve the goal of seamless and implement the RMA provisions no later participating at least half-time in coordinated services for RCA recipients. than 90 days after the date of programs approved or funded by ORR We intend to address the issues raised publication of the final rule. The 90-day are exempt from Food Stamp work by the commenters in discussions with effective date for the RMA provisions is requirements and time limits. We the Department of State, States, and the indicated in the Effective Date section of transmitted this information to States, voluntary agencies soon after this rule. national voluntary agencies, ORR publication of the final rule. discretionary grantees, and other Regarding the comment about RCA Regulatory Impact Analyses eligibility during a refugee’s first 30 interested parties through ORR State A. Executive Order 12866 Letter 97–28 on December 5, 1997. The days in the U.S., ORR regulations have exemption from Food Stamp never precluded a refugee from Executive Order 12866 requires that employment and training participation accessing RCA during his/her first 30 regulations be drafted to ensure that would apply to RCA recipients days in the U.S. If a refugee who is they are consistent with the priorities participating in the public/private RCA receiving assistance and services under and principles set forth in the Executive program. the DOS Reception and Placement Order. The Department has determined Comment: One commenter said that program wishes to apply for RCA, under that this final rule is consistent with the final regulation should address the § 400.50(a), a State agency must provide these priorities and principles. This need for changes to voluntary agency that refugee the opportunity to apply for final rule implements statutory placement policy and require both RCA and determine the eligibility of authority based on broad consultation consultation with States as to their that applicant, the same as any other and coordination. capacity and the resettlement of free applicant. The Executive Order encourages cases in areas not already highly Comment: Three commenters stated agencies, as appropriate, to provide the impacted. that the new public/private RCA public with meaningful participation in Response: We are engaged in ongoing program appears to be in conflict with the regulatory process. As described discussions with the Department of the national move to co-locate elsewhere in the preamble, ORR State (DOS) and the national voluntary employment and training services in a conducted eight consultations around agencies on placement policy, including coordinated one-stop system. One the country and two teleconferences to the issues raised by the commenter. commenter felt that the proposed discuss whether and how States, Comment: Several commenters program would remove refugees and voluntary agencies, service providers, expressed concern about how the refugee services from the one-stop and refugee organizations would like to

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00032 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15441 see the regulations changed. These funded program, this rule is intended to program. Thus, a regulatory flexibility meetings were attended by close to 500 reflect our recognition that resettlement analysis is not required. participants representing the broad takes place at the local level and works C. Paperwork Reduction Act of 1995 resettlement network. We also consulted best when all parties work together. In with representatives of States, the final rule, we have tried to support The following sections contain Washington-based interest groups, the different, but equally important, information collection, third party refugee mutual assistance associations, contributions that the public and private reporting, or recordkeeping and national voluntary agencies in sectors are able to bring to the refugee requirements that are subject to review follow-up sessions in Washington, D.C. resettlement process. We hope that the and approval by the Office of to discuss what we learned from the final rule will serve to foster better and Management and Budget (OMB) under initial round of consultations and to stronger partnerships at all levels, the Paperwork Reduction Act of 1995 obtain feedback on our possible including those among local (44 U.S.C. 3507(d)): §§ 400.50(b), regulatory changes. We received resettlement agencies and service 400.54, 400.55, 400.57(b), 400.58, additional feedback after group providers, which will result in good 400.65, and 400.68(b). The representatives consulted more broadly resettlement. Administration for Children and within their networks following the last We estimate that the regulatory Families has submitted a copy of these round of meetings. The input we changes in the final rule could result in sections to the Office of Management received is reflected in these regulations increased costs of approximately $8 and Budget (OMB) for its review. Section 400.54(a) requires that States to a considerable degree. million annually due to added or their designees provide notice to These rules represent a renewed, administrative costs of local applicants or recipients to indicate that more flexible stage in the refugee resettlement agencies in States that elect program State/Federal partnership. assistance has been authorized, denied, to establish a public/private program, $8 or terminated and the program under Rather than requiring that one national million annually for expanded refugee program fit all local situations, ORR has which that determination was made. eligibility for refugee medical Section 400.54(b) requires States to provided States the option to establish assistance, and $1 million for RCA a public/private RCA program with specify in their State Plans the hearing payment ceilings. We believe that the procedures to be followed in the RCA local resettlement agencies or continue number of States that will choose the a publicly-administered RCA program program and requires that the written public/private program option, notice of any hearing determination modeled after their TANF program. If a however, may be limited. State chooses to establish a public/ adequately explains the basis for the private RCA program, the State has the This rule is considered significant and decision and any further appeal rights. flexibility to determine that the public/ has been reviewed by OMB. Section 400.55 requires that States or private RCA partnership would work B. Regulatory Flexibility Analysis their designee agency(s) make available well in only one community, and to refugees the written policies and all propose to implement a geographically The Regulatory Flexibility Act (5 notices in English and in appropriate split model. U.S.C. Ch. 6) requires the Federal languages where a significant number or Under the public/private RCA government to anticipate and reduce the proportion of the recipient population program, we have also given States and impact of rules and paperwork requires information in a particular local resettlement agencies broad requirements on small businesses and language, in accordance with flexibility to design a program which other small entities. Small entities are Department of Justice regulations at 28 they believe will best serve refugees in defined in the Act to include small CFR 42.405(d)(1) regarding compliance their community. Rather than businesses, small non-profit with title VI of the Civil Rights Act of prescribing certain elements, we have organizations, and small governmental 1964. Section 400.57(b) requires that given States and resettlement agencies entities. This rule will affect 46 each local voluntary agency resettling in the flexibility to determine: The income participating States and the District of a State inform its national resettlement standard for receipt of RCA in their Columbia, and local resettlement agency of the proposed public/private State; the benefit level within a broad agencies that agree to assume RCA program and obtain a letter of range of benefit levels; whether responsibility for providing cash agreement from the national agency. employment incentives should be assistance and services to newly arrived Section 400.58 requires that States provided, and if so, how those refugees in States that elect to establish submit a public/private RCA plan for incentives should be provided; the the new public/private RCA program. ORR review and approval before the services to be provided; and the Local resettlement agencies are non- State implements the plan. Section procedures States and local resettlement profit private organizations that are 400.65 requires States that elect to agencies will put in place to ensure due responsible for the initial resettlement operate a publicly-administered RCA process and protections for refugees. of refugees in the U.S. under program to submit an amendment to States are also given the option to set a cooperative agreements with the their State Plan describing the elements higher need standard for refugee Department of State. Participation of of their TANF program that will be used medical assistance. And within the these local agencies in the public/ in their RCA program. proposed public/private RCA plan private RCA program to be established The information in these plans is structure, there are several by this regulation will be strictly needed to carry out ORR’s oversight administrative models which may be voluntary. In addition, local responsibilities under section 412 of the considered by States and local resettlement agencies that choose to Immigration and Nationality Act. resettlement agencies. assume responsibility for the new RCA Additionally, certain information is One of our key goals in drafting the program will be fully funded with typically necessary to respond to regulations was to recognize, encourage, Federal refugee program funds. These Congressional and other inquiries about and enhance the partnerships that rules will only have an impact on those the program. Congress intended with the passage of small entities (local resettlement The effect of these information the Refugee Act. Although we have agencies) that voluntarily elect to collection, reporting, or third-party drafted regulations for a federally- participate in the public/private RCA notification requirements will be

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00033 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 15442 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations limited to the 46 States and the District further requires that it select the least authorizes the Secretary of HHS to issue of Columbia that participate in the costly, most cost-effective or least regulations needed to carry out the refugee program, and 2–3 non-profit burdensome alternative that achieves program. agencies that administer the program in the objectives of the rule and is (Catalogue of Federal Domestic Programs: States that no longer participate in the consistent with the statutory 93.566, Refugee and Entrant Assistance— refugee program. We anticipate that a requirements. In addition, section 203 State-Administered Programs) limited number of States will elect to requires a plan for informing and operate a public/private RCA program; advising any small government that may List of Subjects those States that choose not to operate be significantly or uniquely impacted by 45 CFR Part 400 such a program will not have to submit the proposed rule. a public/private RCA plan. Those States We have determined that this final Grant programs-Social programs, that choose to implement a public/ rule will not impose a mandate that will Health care, Public assistance programs, private RCA program will have to result in the expenditure by State, local, Refugees, Reporting and recordkeeping submit a public/private RCA plan only and Tribal governments, in the requirements. once. Additional submissions will only aggregate, or by the private sector, of 45 CFR Part 401 be necessary if the plan is modified in more than $100 million in any one year. the future. The average burden per Accordingly, we have not prepared a Cuba, Grant programs-Social response for the preparation of an RCA budgetary impact statement, specifically programs, Haiti, Health care, Public plan is estimated to be 24 hours. The addressed the regulatory alternatives assistance programs, Refugees. total maximum annual reporting and considered, or prepared a plan for Dated: October 14, 1999. recordkeeping burden that will result informing and advising any significantly Olivia A. Golden, from this collection of information is an or uniquely impacted small government. Assistant Secretary for Children and Families. estimated 1,176 hours if all States elect to implement a public/private RCA E. Family Well-Being Impact Approved: November 22, 1999. program. States that wish to operate a As required by Section 654 of the Donna E. Shalala, publicly-administered RCA program Treasury and General Government Secretary, Department of Health and Human will have to submit an amendment to Appropriations Act of 1999, we have Services. their State Plan once. The average assessed the impact of this final rule on For reasons set forth in the preamble, burden per response for the preparation family well-being. The final rule 45 CFR Parts 400 and 401 are amended of a State Plan amendment is estimated implements new provisions for RCA as follows: to be 3 hours. The total maximum and RMA, programs which serve annual reporting and recordkeeping primarily single refugees, childless PART 400ÐREFUGEE burden that will result from this couples, or couples with adult children. RESETTLEMENT PROGRAM collection of information is an estimated We believe that the provisions 1. The authority citation for part 400 147 hours if all States elect to operate contained in this rule promote better, continues to read as follows: a publicly-administered RCA program. more timely support for refugees. We Other requirements, such as the State expect this to strengthen families as Authority: Section 412(a)(9), Immigration plan (§ 400.5), are not changed. States they will receive a better economic start and Nationality Act (8 U.S.C. 1522(a)(9)). receiving refugee program funds have a in the U.S. and move toward self- 2. Section 400.2 is amended as plan on file at ORR. We estimate the sufficiency in a more supportive follows: a.–b. Removing the word ‘‘AFDC’’ number of hours required to amend the environment. plan to be a maximum of 1 hour wherever it appears in this section and annually. The total maximum annual F. Executive Order 13132 adding in its place the word ‘‘TANF’’; reporting and recordkeeping burden that Executive Order 13132 on Federalism c. Removing the word ‘‘to’’ after the will result from this collection of applies to policies that have federalism word ‘‘refer’’ in the definition of case information is estimated to be no more implications, defined as ‘‘regulations, management services; than 47 hours if all States amend their legislative comments or proposed d. Removing the definitions of AFDC plan in a given year. We estimate the legislation, and other policy statements and Voluntary resettlement agency; and e. Adding in alphabetical order average burden for other sections as or actions that have substantial direct definitions of Designee, Economic self- follows: § 400.54 will be 1,200 hours effects on the States, on the relationship sufficiency, Family unit, Local annually; § 400.57(c) will be 200 hours between the national government and resettlement agency, National voluntary the first year; § 400.55 will be 1,000 the States, or on the distribution of agency, RCA Plan and TANF to read as hours the first year and 300 hours power and responsibilities among the follows: annually thereafter. various levels of government.’’ This rule D. Unfunded Mandates Reform Act of does not have federalism implications § 400.2 Definitions 1995 as defined in the Executive Order. The * * * * * impact of this rule is not substantial as Section 202 of the Unfunded Designee, when referring to the State defined in the Executive Order. Rather, agency’s designee, means an agency Mandates Reform Act of 1995 (2 U.S.C. this rule provides States increased 1532) requires that a covered agency designated by the State agency for the options for administering refugee purpose of carrying out the prepare a budgetary impact statement resettlement programs. before promulgating a rule that includes requirements of this part. any Federal mandate that may result in G. Congressional Review of Rulemaking * * * * * the expenditure by State, local, and This rule is not a ‘‘major’’ rule as Economic self-sufficiency means Tribal governments, in the aggregate, or defined in chapter 8 of 5 U.S.C. earning a total family income at a level by the private sector, of $100 million or that enables a family unit to support more in any one year. Statutory Authority itself without receipt of a cash If a covered agency must prepare a Section 412(a)(9) of the Immigration assistance grant. budgetary impact statement, section 205 and Nationality Act, 8 U.S.C. 1522(a)(9), * * * * *

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Family unit means an individual revising in paragraph (b)(1) the word provided by Federal law’’ after the word adult, married individuals without ‘‘then’’ to read ‘‘than’’. ‘‘Act’’ at the end of the sentence. children, or parents, or custodial 13.–14. Section 400.13 is amended by 21. Subpart E is revised to read as relatives, with minor children who are adding a new paragraph (e) that reads as follows: not eligible for TANF, who live in the follows: Subpart EÐRefugee Cash Assistance same household. Sec. * * * * * § 400.13 Cost allocation. * * * * * 400.45 Requirements for the operation of an Local resettlement agency means a AFDC-type RCA program. local affiliate or subcontractor of a (e) Administrative costs incurred by 400.48 Basis and scope. national voluntary agency that has local resettlement agencies in the 400. 49 Recovery of overpayments and entered into a grant, contract, or administration of the public/private correction of underpayments. cooperative agreement with the United RCA program (i.e., administrative costs 400.50 Opportunity to apply for cash States Department of State or other of providing cash assistance) may be assistance. appropriate Federal agency to provide charged to the CMA grant. 400.51 Determination of eligibility under for the reception and initial placement Administrative costs of managing the other programs. 400.52 Emergency cash assistance to of refugees in the United States. services component of the RCA program must be charged to the social services refugees. * * * * * 400.53 General eligibility requirements. National voluntary agency means one grant. 400.54 Notice and Hearings. of the national resettlement agencies or § 400.23 [Amended] 400.55 Availability of agency policies. a State or local government that has Public/Private RCA Program entered into a grant, contract, or 15. Section 400.23 is amended in 400.56 Structure. cooperative agreement with the United paragraph (a) by adding the words ‘‘unless otherwise specified in this part’’ 400.57 Planning and consultation process. States Department of State or other 400.58 Content and submission of public/ appropriate Federal agency to provide after the word ‘‘programs’’, and in paragraph (b) by adding the words ‘‘or private RCA plan. for the reception and initial placement 400.59 Eligibility for the public/private of refugees in the United States. its designee’’ after the word ‘‘State’’. RCA program. * * * * * § 400.27 [Amended] 400.60 Payment levels. RCA Plan means a written description 400.61 Services to public/private RCA 16.–17. Section 400.27 is amended in recipients. of the public/private RCA program paragraph (b) by removing the words 400.62 Treatment of eligible secondary administered by local resettlement ‘‘voluntary resettlement agency, as migrants, asylees, and Cuban/Haitian agencies under contract or grant with a defined in § 400.2’’ and adding in their entrants. State. place the words ‘‘local resettlement 400.63 Preparation of local resettlement * * * * * agency or by a local resettlement agency agencies. TANF means temporary assistnace for to a State’’, and by removing paragraph Publicly-Administered RCA Programs needy families under title IV–A of the (c). 400.65 Continuation of a public- Social Security Act. 18.–19. Section 400.43 is amended by administered RCA program. * * * * * removing paragraphs (a) (2) and (5) and 400.66 Eligibility and payment levels in a 3.–10. Section 400.5 is amended in by redesignating paragraphs (a)(3) and publicly-administered RCA program. (4) as paragraphs (a)(2) and (3) 400.67 Non-applicable TANF requirements. paragraph (h) by removing the words 400.68 Notification to local resettlement ‘‘local affiliates of voluntary respectively; and by adding new agency. resettlement agencies’’ and adding in paragraphs (a)(4) and (5) that read as 400.69 Alternative RCA programs. their place the words ‘‘local follows: resettlement agencies’’, and by adding Subpart EÐRefugee Cash Assistance § 400.43 Requirements for documentation paragraph (i) to read as follows: of refugee status. § 400.45 Requirements for the operation of § 400.5 Content of the plan. (a) * * * an AFDC-type RCA program. * * * * * (4) Cuban and Haitian entrants, in This section applies to a State’s RCA (i) Provide that the State will: accordance with requirements in 45 program that follows the State’s rules (1) Comply with the provisions of title CFR part 401; under the Aid to Families with IV, Chapter 2, of the Act and official (5) Certain Amerasians from Vietnam Dependent Children (AFDC) program issuances of the Director; who are admitted to the U.S. as under title IV–A of the Social Security (2) Meet the requirements in this part; immigrants pursuant to section 584 of Act, prior to amendment by Public Law (3) Comply with all other applicable the Foreign Operations, Export 104–33. A State must continue to apply Federal statutes and regulations in effect Financing, and Related Programs these rules to its RCA program until it during the time that it is receiving grant Appropriations Act, 1988 (as contained implements a new RCA program under funding; and in section 101(e) of Public Law 100–202 § 400.56 or § 400.65. A State that (4) Amend the plan as needed to and amended by the 9th proviso under receives an approved waiver under comply with standards, goals, and Migration and Refugee Assistance in § 400.300 to continue an AFDC-type priorities established by the Director. title II of the Foreign Operations, Export RCA program must follow the rules in Financing, and Related Programs this section. § 400.11 [Amended] Appropriations Acts, 1989 (Public Law (a) Recovery of overpayments and 11.–12. Section 400.11 is amended in 100–461 as amended)); or correction of underpayments —The paragraph (a)(1) by removing the words * * * * * State agency must comply with ‘‘aid to families with dependent regulations at § 233.20(a)(13) of this title children (AFDC)’’ and adding in their § 400.44 [Amended] governing recovery of overpayments and place the words ‘‘temporary assistance 20. Section 400.44 is amended by correction of underpayments in the for needy families (TANF)’’, and by adding the words ‘‘unless otherwise AFDC program.

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(b) Opportunity to apply for cash cash assistance, the State agency must § 400.51 Determination of eligibility under assistance. (1) A State must provide any also apply the following AFDC other programs. individual wishing to do so, an regulations in this title: (a) TANF. For refugees determined opportunity to apply for cash assistance 233.31 Budgeting methods for ineligible for cash assistance under the and must determine the eligibility of AFDC. TANF program, the State or its designee each applicant. 233.32 Payment and budget months must determine eligibility for refugee (2) In determining eligibility for cash (AFDC). cash assistance in accordance with assistance, the State must— §§ 400.53 and 400.59 in the case of the (i) Comply with the regulations at part 233.33 Determining eligibility public/private RCA program or 206 of this title governing applications, prospectively for all payment months §§ 400.53 and 400.66 in the case of a determinations of eligibility, and (AFDC). publicly-administered RCA program. furnishing assistance under public 233.34 Computing the assistance (b) Cash assistance to the aged, blind, assistance programs, as applicable to the payment in the initial one or two and disabled. (1) SSI. (i) The State AFDC program; months (AFDC). agency or its designee must refer (ii) Determine eligibility for other cash 233.35 Computing the assistance refugees who are 65 years of age or assistance programs in accordance with payment under retrospective budgeting older, or who are blind or disabled, § 400.51; and after the initial one or two months promptly to the Social Security (iii) Comply with regulations at (AFDC). Administration to apply for cash § 400.54(a)(3) and 400.68. 233.36 Monthly reporting (AFDC)— assistance under the SSI program. (c) Emergency cash assistance to which shall apply to recipients of (ii) If the State agency or its designee refugees—A State must comply with the refugee cash assistance who have been determines that a refugee who is 65 regulations at § 400.52. in the United States more than 6 years of age or older, or blind or (d) General eligibility requirements— months. disabled, is eligible for refugee cash A State must comply with the 233.37 How monthly reports are assistance, it must furnish such regulations at § 400.53. assistance until eligibility for cash (e) Consideration of income and treated and what notices are required (AFDC). assistance under the SSI program is resources. In considering the income determined, provided the conditions of and resources of applicants for and 235.110 Fraud. eligibility for refugee cash assistance recipients of refugee cash assistance, the General continue to be met. State agency must: (2) OAA, AB, APTD, or AABD. In (1) Apply the regulations at § 400.48 Basis and scope. Guam, Puerto Rico, and the Virgin § 233.20(a)(3) through (2) of this title for This subpart sets forth requirements Islands — considering income and resources of concerning grants to States under (i) Eligibility for cash assistance under AFDC applicants; and the OAA, AB, APTD, or AABD program (2) Apply the regulations at section 412(e) of the Act for refugee cash assistance (RCA). Sections 400.48 must be determined for refugees who § 400.66(b) through (d). are 65 years or older, or who are blind (f) Need standards and payment through 400.55 apply to both public/ or disabled; and levels. (1) In determining need for private RCA programs and publicly- administered RCA programs. (ii) If a refugee who is 65 years of age refugee cash assistance, a State agency or older, or blind or disabled, is must use the State’s AFDC need § 400.49 Recovery of overpayments and determined to be eligible for refugee standards established under correction of underpayments. cash assistance, such assistance must be § 233.20(a)(1) and (2) of this title. furnished until eligibility for cash (2) In determining the amount of the The State agency or its designee assistance under the OAA, AB, APTD, refugee cash assistance payment to an agency(s) must maintain a procedure to or AABD program is determined, eligible refugee who meets the standards ensure recovery of overpayments and provided the conditions of eligibility for in paragraph (f)(1) of this section and correction of underpayments in the RCA refugee cash assistance continue to be applying the consideration of income program. met. and resources in paragraph (e) of this § 400.50 Opportunity to apply for cash section and in § 400.66(b) through (d), a assistance. § 400.52 Emergency cash assistance to State must pay 100 percent of the refugees. (a) A State or its designee agency(s) payment level which would be must provide any individual wishing to If the State agency or its designee appropriate for an eligible filing unit of do so, an opportunity to apply for cash determines that a refugee has an urgent the same size under the AFDC program. assistance and must determine the need for cash assistance, it should (3) The State agency may use the date eligibility of each applicant as promptly process the application for cash of application as the date refugee cash as possible within no more than 30 days assistance as quickly as possible and assistance begins in order to provide from the date of application. issue the initial payment to the refugee payments quickly to newly arrived on an emergency basis. refugees. (b) A State or its designee agency(s) (g) Proration of shelter, utilities, and must inform applicants about the § 400.53 General eligibility requirements. similar needs—If a State prorated eligibility requirements and the rights (a) Eligibility for refugee cash allowances for shelter, utilities, and and responsibilities of applicants and assistance is limited to those who— similar needs in its AFDC program recipients under the program. (1) Are new arrivals who have resided under § 233.20(a)(5) of this title, it must (c) In determining eligibility for cash in the U.S. less than the RCA eligibility prorate such allowances in the same assistance, the State or its designee period determined by the ORR Director manner in its refugee assistance agency(s) must promptly refer elderly or in accordance with § 400.211; programs. disabled refugees and refugees with (2) Are ineligible for TANF, SSI, (h) Other AFDC requirements dependent children to other cash OAA, AB, APTD, and AABD programs; applicable to refugee cash assistance— assistance programs to apply for (3) Meet immigration status and In administering the program of refugee assistance in accordance with § 400.51. identification requirements in subpart D

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00036 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15445 of this part or are the dependent to a State-administered hearing process. assistance payments, the requirements children of, and part of the same family If the plan does not specify the use of for participation in services, the unit as, individuals who meet the a State-administered hearing process, penalties for non-cooperation, and requirements in subpart D, subject to the then the procedures to be followed must client rights and responsibilities to limitation in § 400.208 with respect to include: ensure that refugees understand what nonrefugee children; and (i) The State or local resettlement they are eligible for, what is expected of (4) Are not full-time students in agency(s) responsible for the provision them, and what protections are available institutions of higher education, as of RCA must provide an applicant for or to them. The State, or the agency(s) defined by the Director. recipient of refugee cash assistance an responsible for the provision of RCA, (b) A refugee may be eligible for opportunity for an oral hearing to must ensure that agency policy refugee cash assistance under this contest adverse determinations. materials and all notices required in subpart during a period to be Hearings must be conducted by an §§ 400.54, 400.82, and 400.83, are made determined by the Director in impartial official or designee of the State available in written form in English and accordance with § 400.211. or local resettlement agency who has in appropriate languages where a not been involved directly in the initial § 400.54 Notice and hearings. significant number or proportion of the determination of the action in question. recipient population needs information (a) Timely and adequate notice. (1) A (ii) The State must ensure that in a particular language. In regard to written notice must be sent or provided procedures are established to provide refugee language groups that constitute to a recipient at least 10 days before the refugees a right of final appeal for an in- a small number or proportion of the date upon which refugee cash assistance person hearing provided by an recipient population, the State, or the will be reduced, suspended, or impartial, independent entity outside of agency(s) responsible for the provision terminated. the local resettlement agency. (2) In providing notice to an applicant (iii) Final administrative action must of RCA, at a minimum, must use an or recipient to indicate that assistance be taken within 60 days from the date alternative method, such as verbal has been authorized, denied, reduced, of a request for a hearing. translation in the refugee’s native suspended, or terminated, the written (2) Publicly-administered RCA language, to ensure that the content of notice must clearly state the action that programs. The State must specify in the the agency’s policies is effectively will be taken, the reasons for the action, State Plan referenced in § 400.4 the communicated to each refugee. and the right to request a hearing. public agency hearing procedures it Public/Private RCA Program (3) In providing notice to an applicant intends to use in the RCA program. or recipient to indicate that assistance (3) In both a public/private RCA § 400.56 Structure. has been authorized, denied, reduced, program and a publicly-administered suspended, or terminated, the State or RCA program, the written notice of any (a) States may choose to enter into a its designee agency(s) must specify the hearing determination must adequately partnership agreement with local program(s) to which the notice applies, explain the basis for the decision and resettlement agencies for the operation clearly distinguishing between RCA and the refugee’s right to request any further of a public/private RCA program. other assistance programs. For example, administrative or judicial review. Sections 400.56 through 400.63 apply to in the case of a publicly-administered (4) In both a public/private RCA the public/private RCA program. program, if a refugee applies for program and a publicly-administered (b) The public/private RCA program assistance and is determined ineligible RCA program, a refugee’s benefits may must be administered by the State for TANF but eligible for refugee cash not be terminated prior to completion of through contracts or grants with local assistance, the notice to the applicant final administrative action, but are resettlement agencies or a lead must specify clearly the determinations subject to recovery by the agency if the resettlement agency that provides initial with respect both to TANF and to action is sustained. resettlement services under the terms of refugee cash assistance. When a (5) In both a public/private RCA the Department of State Cooperative recipient of refugee cash assistance is program and a publicly-administered Agreement for Reception and notified of termination because of RCA program, a hearing need not be Placement. reaching the time limit on such granted when Federal law requires assistance, the State or its designee must automatic grant adjustments for classes (c) The public/private RCA program review the case file to determine of recipients unless the reason for an must be statewide, unless the State possible eligibility for TANF or GA due individual appeal is an incorrect grant determines that it is not in the best to changed circumstances and the notice computation. interests of refugees to provide a public/ to the recipient must indicate the result (6) In both a public/private RCA private RCA program in a particular area of that determination as well as the program and a publicly-administered of the State. termination of RCA. RCA program, a hearing need not be (d) Local resettlement agencies may (b) Hearings. All applicants for and granted when assistance is terminated be responsible for determining recipients of refugee cash assistance because the eligibility time period eligibility, and authorizing and must be provided an opportunity for a imposed by law has been reached, providing payments to eligible refugees. hearing to contest adverse unless there is a disputed issue of fact (e) States and local resettlement determinations. States must ensure that that is unresolved by the process in agencies may not propose to operate a hearings meet the due process standards § 400.23. public/private RCA program and a in Goldberg v. Kelly, 397 U.S. 254 (1970). § 400.55 Availability of agency policies. publicly-administered RCA program in (1) Public/private RCA programs. The A State, or the agency(s) responsible the same geographic location. State must specify in the public/private for the provision of RCA, must make (f) States must ensure the provision of RCA plan the hearing procedures to be available to refugees the written policies RCA assistance to eligible refugees in used in the RCA program. The plan may of the RCA program, including agency the State who are sponsored by local specify that the local resettlement policies regarding eligibility standards, resettlement agencies in bordering agency(s) will refer all hearing requests the duration and amount of cash states, where applicable.

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§ 400.57 Planning and consultation and the right to mediation, a pre- of ORR will follow the procedures in process. termination hearing, and an appeal to an § 400.8 for approval of amendments to A State that wishes to establish a independent entity; public/private RCA plans. public/private RCA program must (7) A description of proposed engage in a planning and consultation exemptions from participation in § 400.59 Eligibility for the public/private RCA program. process with the local agencies that employability services; resettle refugees in the State to develop (8) A description of the employment (a) Eligibility for refugee cash a public/private RCA plan in and self-sufficiency services to be assistance under the public/private accordance with the requirements under provided to RCA recipients by— program is limited to those who meet § 400.58. (i) Local resettlement agencies under the income eligibility standard (a) Primary participants in the contract or grant, and/or established by the State after planning process must include (ii) Other refugee services providers; consultation with local resettlement representatives of the State and each (9) Procedures for providing RCA to agencies in the State. local agency that resettles refugees in eligible secondary migrants who move (b) Any resources remaining in the the State. During the planning process, to the State, including secondary applicant’s country of origin may not be the State must fully consult with migrants who were sponsored by a local considered in determining income representatives of counties, refugee resettlement agency that does not have eligibility. mutual assistance associations (MAAs), a presence in the receiving State; (c) A sponsor’s income and resources local community services agencies, (10) If applicable, provisions for may not be considered to be accessible national voluntary agencies that resettle providing assistance to refugees to a refugee solely because the person is refugees in the State, representatives of resettling in the State who are serving as a sponsor. each refugee ethnic group, and other sponsored by a local resettlement (d) Any cash grant received by a agencies that serve refugees. agency in a bordering State which does refugee under the Department of State or (b) Each local resettlement agency that not have an office in the State of Department of Justice Reception and resettles refugees in the State must resettlement; Placement programs may not be inform its national resettlement agency (11) A description of the procedures considered in determining income of the proposed public/private RCA to be used to safeguard the disclosure of eligibility. information regarding refugee clients; program and must obtain a letter of § 400.60 Payment levels. agreement from the national agency that (12) Letters of agreement from the (a) Under the public/private RCA indicates that the national agency national voluntary resettlement agencies program, States and the local supports the public/private RCA plan that indicate support for the proposed resettlement agencies contracted or and will continue to place refugees in public/private RCA program and awarded grants to administer the RCA the State under the public/private RCA indicate that refugee placements in the program must make monthly cash program. State will continue under the public/ private RCA program; assistance payments to eligible refugees § 400.58 Content and submission of (13) A breakdown of the proposed that do not exceed the following public/private RCA plan. program and administrative costs of payment ceilings, according to the (a) States and local resettlement both the cash assistance and service number of persons in the family unit, agencies must develop a public/private components of the public/private RCA except as noted in paragraphs (b) and (c) RCA plan which describes how the program, including any per capita caps of this section. For family units greater State and local resettlement agencies on administrative costs only if a State than 4 persons, the payment ceiling may will administer and provide refugee proposes to use such caps; and be increased by $70 for each additional cash assistance to eligible refugees. The (14) The proposed implementation person. plan must describe the agreed-upon date for the State’s public/private RCA public/private RCA program including: program; Monthly (b) In cases where the State, after Size of family unit payment (1) The proposed income standard to ceiling be used to determine RCA eligibility; consultation with the local resettlement (2) The proposed payment levels to be agencies in the State, determines that a 1 person ...... $335 used to provide cash assistance to public/private RCA program is not 2 persons ...... 450 eligible refugees; feasible statewide and proposes to 3 persons ...... 570 (3) Assurance that the payment levels implement a public/private RCA 4 persons ...... 685 established are not lower than the program in only a portion of the State comparable State TANF amounts; and to operate a publicly-administered (b) States and local resettlement (4) A detailed description of how RCA program in the balance of the State, agencies may not make payments to benefit payments will be structured, the State’s RCA plan must include the refugees that are lower than the State’s including a description of employment information required in § 400.65(b). TANF payment for the same sized incentives and/or income disregards to (c) The plan must be signed by the family unit. In States that have TANF be used, if any, as well as methods of Governor or his or her designee. payment levels that are higher than the payment to be used, such as direct cash (d) The Director of ORR will follow ceilings established in this section, or vendor payments; the procedures in § 400.8 for the States and local resettlement agencies (5) A description of how all RCA approval of public/private RCA plans. must provide payment levels under the eligible refugees residing in the State An approved public/private RCA plan public/private RCA program that are will have reasonable access to cash will be incorporated into the refugee comparable to the State’s TANF assistance and services; program State Plan. payment levels. (6) A description of the procedures to (e) Any amendments to the public/ (c) Income disregards and other be used to ensure appropriate private RCA plan must be developed in incentives. (1) States and local protections and due process for consultation with the local resettlement resettlement agencies may design an refugees, such as the correction of agencies and must be submitted to ORR assistance program that combines RCA underpayments, notice of adverse action in accordance with § 400.8. The Director payments with income disregards or

VerDate 202000 14:27 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00038 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR2.SGM pfrm01 PsN: 22MRR2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15447 other incentives such as employment (2) Set up a system of accountability (2) The determination of benefit bonuses, or graduated payments in that identifies the responsibilities of amounts (payment levels based on size order to encourage early employment each participating agency and holds of the assistance unit, income and self-sufficiency, as long as the total these agencies accountable for the disregards); combined payments to a refugee do not results of the program components for (3) Proration of shelter, utilities, and exceed the ORR monthly ceilings which they are responsible. similar needs; and established in this section multiplied by (4) Any other State TANF rules § 400.62 Treatment of eligible secondary the allowable number of months of RCA migrants, asylees, and Cuban/Haitian relating to financial eligibility and eligibility. entrants. payments. (2) States that elect to exceed monthly The State and local resettlement (b) The State agency may not consider payment ceilings in order to provide agencies must establish procedures to any resources remaining in the employment incentives must budget ensure that eligible secondary migrant applicant’s country of origin in their resources to ensure that sufficient refugees, asylees, and Cuban/Haitian determining income eligibility. RCA funds are available to cover a entrants have access to public/private (c) The State agency may not consider refugee’s cash assistance needs in the RCA assistance if they wish to apply. In a sponsor’s income and resources to be latter months of a refugee’s eligibility developing these procedures, accessible to a refugee solely because period, if needed. consideration must be given to ensuring the person is serving as a sponsor. (d) If the Director determines that the coverage of eligible secondary migrants (d) The State agency may not consider payment ceilings need to be adjusted for and other eligible applicants who were any cash grant received by the applicant inflation, the Director will publish a sponsored by a resettlement agency under the Department of State or document in the Federal Register which does not have a presence in the Department of Justice Reception and announcing the new payment ceilings. State or who were not sponsored by any Placement programs. agency. (e) The State agency may use the date § 400.61 Services to public/private RCA of application as the date refugee cash recipients. § 400.63 Preparation of local resettlement assistance begins in order to provide (a) Services provided to recipients of agencies. payments quickly to newly arrived refugee cash assistance in the public/ The State and the national voluntary refugees. private RCA program may be provided agencies whose affiliate agencies will be by the local resettlement agencies that responsible for implementing the § 400.67 Non-applicable TANF administer the public/private RCA public/private RCA program: requirements. program or by other refugee service (a) Must determine the training States that choose to operate an RCA agencies. needed to enable local resettlement program modeled after TANF may not (b) Allowable services under the agencies to achieve a smooth apply certain TANF requirements to public/private program are limited to implementation of the RCA program; refugee cash assistance applicants or those services described in §§ 400.154 and recipients as follows: TANF work and 400.155 and are to be funded in (b) Must provide the training in a requirements may not apply to RCA accordance with § 400.206. uniform way to ensure that all local applicants or recipients, and States must (c) In public/private programs in resettlement agencies in the State will meet the requirements in subpart I of which local resettlement agencies are implement the public/private RCA this part with respect to the provision of responsible for administering both cash program in a consistent manner. services for RCA recipients. assistance and services, States and local Publicly-Administered RCA Programs § 400.68 Notification to local resettlement resettlement agencies must coordinate agency. on a regular basis with refugee mutual § 400.65 Continuation of a publicly- administered RCA program. (a) The State must notify promptly the assistance associations and other ethnic local resettlement agency which representatives that represent or serve Sections 400.65 through 400.69 apply to publicly-administered RCA programs. provided for the initial resettlement of the ethnic populations that are being a refugee whenever the refugee applies resettled in the U.S. to ensure that the If a State chooses to operate a publicly- administered RCA program: for refugee cash assistance under a services provided under the public/ publicly-administered RCA program. private RCA program: (a) The State may operate its refugee cash assistance program consistent with (b) The State must contact the (1) Are appropriate to the linguistic applicant’s sponsor or the local and cultural needs of the incoming its TANF program. (b) The State must submit an resettlement agency concerning offers of populations; and employment and inquire whether the (2) Are coordinated with the longer- amendment to its State Plan, describing the elements of its TANF program that applicant has voluntarily quit term resettlement services frequently employment or has refused to accept an provided by ethnic community will be used in its refugee cash assistance program. offer of employment within 30 organizations after the end of the time- consecutive days immediately prior to limited RCA eligibility period. § 400.66 Eligibility and payment levels in a the date of application, in accordance (d) In public/private programs in publicly-administered RCA program. with § 400.77(a). which the agencies responsible for (a) In administering a publicly- providing services to RCA recipients are administered refugee cash assistance § 400.69 Alternative RCA programs. not the same agencies that administer program, the State agency must operate A State that determines that a public/ the cash assistance program, the State its refugee cash assistance program private RCA program or a publicly- must: consistent with the provisions of its administered program modeled after its (1) Establish procedures to ensure TANF program in regard to: TANF program is not the best approach close coordination between the local (1) The determination of initial and for the State may choose instead to resettlement agencies that provide cash on-going eligibility (treatment of income establish an alternative approach under assistance and the agencies that provide and resources, budgeting methods, need the Wilson/Fish program, authorized by services to RCA recipients; and standard); section 412(e)(7) of the INA.

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§ 400.70 [Amended] b. By adding in paragraph (b) the must give timely and adequate notice, in 22. Section 400.70 is amended by word ‘‘local’’ before the words accordance with adverse action adding the words ‘‘under both the ‘‘resettlement agency’’; and procedures required at § 400.54. c. By adding the word ‘‘and’’ at the public/private RCA program and the (2) The State, or the agency(s) end of the paragraph (c)(1) and by publicly-administered RCA program’’ responsible for the provision of RCA, removing the semicolon and the word after the word ‘‘assistance’’ and before must provide written procedures in ‘‘and’’ at the end of paragraph (c)(2) and the word ‘‘concerning’’. English and in appropriate languages, in adding in their place a period. accordance with requirements in § 400.71 [Amended] § 400.55, for the determination of good § 400.80 [Removed] cause, the sanctioning of refugees who 23. Section 400.71 is amended by 31.–33. Section 400.80 and the do not comply with the requirements of removing the definition of the term undesignated centerhead immediately the program, and for the filing of Designee. preceding it are removed. appeals by refugees. 24. Section 400.72 is amended by 34. Section 400.81 is amended as (3) In addition to the requirements in adding introductory text to read as follows: § 400.54, the written notice must follows: a. By removing the word ‘‘AFDC’’ and include— adding in its place the word ‘‘TANF’’ in § 400.72 Arrangements for employability (i) An explanation of the reason for services. paragraphs (a) introductory text and the action and the proposed adverse (a)(4); consequences; and Paragraphs (a) and (b) of this section b. By adding a sentence at the end of (ii) Notice of the recipient’s right to apply equally to States that operate a paragraph (b) that reads: ‘‘This training mediation and a hearing under § 400.83. public/private RCA program and to may only be made available to (4) A written notice in English and a States that operate a publicly- individuals who are employed.’’; and written translated notice, or a verbal administered RCA program. Paragraph c. By revising paragraph (c) to read as translation of the notice, in accordance (c) applies only to publicly- follows: with the requirements in § 400.55, must administered RCA programs. § 400.81 Criteria for appropriate be sent or provided to a refugee at least * * * * * employability services and employment. 10 days before the date upon which the § 400.75 [Amended] * * * * * action is to become effective. * * * * * 25. Section 400.75 is amended by (c) A job offered, if determined 40. Section 400.83 is revised to read adding in paragraph (a)(6)(i) the word appropriate under the requirements of as follows: ‘‘local’’ before the words ‘‘resettlement this subpart, is required to be accepted agency’’, and by adding in paragraph (b) by the refugee without regard to § 400.83 Mediation and fair hearings. whether such job would interrupt a the words ‘‘or its designee’’ after the (a) Mediation. (1) Public/private RCA words ‘‘State agency’’. program of services planned or in progress unless the refugee is currently program. The State must ensure that a 26.–27. Section 400.76 is revised to participating in a program in progress of mediation period prior to imposition of read as follows: on-the-job training (as described in sanctions is provided to refugees by § 400.154(c)) or vocational training (as local resettlement agencies under the § 400.76 Criteria for exemption from public/private RCA program. Mediation registration for employment services, described in § 400.154(e)) which meets participation in employability service the requirements of this part and which shall begin as soon as possible, but no programs, and acceptance of appropriate is being carried out as part of an later than 10 days following the date of offers of employment. approved employability plan. failure or refusal to participate, and may continue for a period not to exceed 30 34.–38. Section 400.82 is amended by States and local resettlement agencies days. Either the State (or local redesignating paragraph (b)(3) as (c) and operating a public/private RCA resettlement agency(s) responsible for by redesignating paragraphs (b)(3)(i) and program, as well as States operating a the provision of RCA) or the recipient (ii) as (c)(1) and (2) respectively, and by publicly-administered RCA program, may terminate this period sooner when revising paragraphs (a) and (b) to read may determine what specific either believes that the dispute cannot as follows: exemptions, if any, are appropriate for be resolved by mediation. recipients of a time-limited RCA § 400.82 Failure or refusal to accept (2) Publicly-administered RCA program in their State. employability services or employment. programs. Under a publicly- § 400.77 [Amended] (a) Termination of assistance. When, administered RCA program, the State without good cause, an employable non- must use the same procedures for 28. Section 400.77(a) is amended by exempt recipient of refugee cash mediation/conciliation as those used in removing the words ‘‘§ 400.82(b)(3)(ii)’’ assistance under the public/private RCA its TANF program, if available. and adding in their place the words program or under a publicly- (b) Hearings. The State or local ‘‘§ 400.82(c)(2).’’ administered RCA program has failed or resettlement agency(s) responsible for § 400.78 [Removed] refused to meet the requirements of the provision of RCA must provide an § 400.75(a) or has voluntarily quit a job, applicant for, or recipient of, refugee 29. Section 400.78 is removed. the State, or the agency(s) responsible cash assistance an opportunity for a § 400.79 [Amended] for the provision of RCA, must hearing, using the same procedures and terminate assistance in accordance with standards set forth in § 400.54, to 30. Section 400.79 is amended as paragraphs (b) and (c) of this section. contest a determination concerning follows: (b) Notice of intended termination— employability, or failure or refusal to a. By removing in paragraph (a) the (1) In cases of proposed action to carry out job search or to accept an word ‘‘filing’’ and adding in its place reduce, suspend, or terminate appropriate offer of employability the word ‘‘family’’ before the word assistance, the State or the agency(s) services or employment, resulting in ‘‘unit’’; responsible for the provision of RCA, denial or termination of assistance.

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§ 400.93 [Amended] (2) A financial eligibility standard (b) If a refugee, who is receiving 41. Section 400.93(d) is amended to established at up to 200% of the Medicaid and has been residing in the add the words ‘‘or the State Children’s national poverty level. U.S. less than the time-eligibility period Health Insurance Program (SCHIP)’’ 50. Section 400.102 is revised to read for refugee medical assistance, becomes after the word ‘‘Medicaid’’ each time it as follows: ineligible for Medicaid because of appears. earnings from employment, the refugee § 400.102 Consideration of income and must be transferred to refugee medical resources. § 400.94 [Amended] assistance without an RMA eligibility (a) Except as specified in paragraphs 42. Section 400.94 is amended: determination. (b), (c), and (d) of this section, in a. By adding in paragraph (a) the (c) Under paragraphs (a) and (b) of considering financial eligibility of words ‘‘and SCHIP’’ before the word this section, a refugee shall continue to applicants for refugee medical ‘‘eligibility’’ and by removing the words receive refugee medical assistance until ‘‘State plan’’ and adding in their place assistance, the State agency must— (1) In States with medically needy he/she reaches the end of his or her the words ‘‘and SCHIP State plans’’; programs, use the standards governing time-eligibility period for refugee b. By adding in paragraph (c) the determination of income eligibility in 42 medical assistance, in accordance with words ‘‘and SCHIP’’ after the word CFR 435.831, and as reflected in the § 400.100(b). ‘‘Medicaid’’; by removing the word State’s approved title XIX State (d) In cases where a refugee is covered ‘‘program’’ and adding in its place the Medicaid plan. by employer-provided health insurance, word ‘‘programs’’; and by removing the (2) In States without medically needy any payment of RMA for that individual word ‘‘plan’’ and adding in its place the programs, use the standards and must be reduced by the amount of the word ‘‘plans’’; and methodologies governing consideration third party payment. c. By adding in paragraph (d) the of income and resources of AFDC words ‘‘or SCHIP’’ after the word applicants in effect as of July 16, 1996, § 400.107 [Amended] ‘‘Medicaid’’ and by deleting the word including any modifications elected by 53. Section 400.107(b) is amended by ‘‘plan’’ and adding in its place the word the State under section 1931(b)(2) of the ‘‘plans’’. removing the word ‘‘assessment’’ and Social Security Act. adding in its place the word § 400.100 [Amended] (b) The State may not consider in- ‘‘screening’’. kind services and shelter provided to an 43–45. Section 400.100 is amended: applicant by a sponsor or local § 400.152 [Amended] a. By adding in paragraph (a)(i) the resettlement agency in determining 54. Section 400.152(b) is amended by words ‘‘or SCHIP’’ after the word eligibility for and receipt of refugee adding the words ‘‘citizenship and ‘‘Medicaid’’; medical assistance. b. By removing in paragraph (a)(2) the (c) The State may not consider any naturalization preparation services and’’ word ‘‘filing’’ and adding in its place cash assistance payments provided to an after the words ‘‘except for’’ and by the word ‘‘assistance’’ before the word applicant in determining eligibility for placing a period after the words ‘‘60 ‘‘unit’’; and receipt of refugee medical months’’ and removing the rest of the c. By removing paragraph (a)(4) and assistance. sentence. redesignating paragraphs (a)(5) and (d) The State must base eligibility for 55. Section 400.154 is amended by (a)(6) as (a)(4) and (a)(5) respectively; refugee medical assistance on the removing in paragraph (j) the word and applicant’s income and resources on the ‘‘AFDC’’ and adding in its place the d. By adding in paragraph (d) the date of application. The State agency word ‘‘TANF’’ and by adding a new words ‘‘or SCHIP’’ after the word may not use the practice of averaging paragraph (k) to read as follows: ‘‘Medicaid’’. income prospectively over the 46–49. Section 400.101 is amended by application processing period in § 400.154 Employability services. revising paragraphs (a) and (b) to read determining income eligibility for * * * * * as follows: refugee medical assistance. (k) Assistance in obtaining § 400.101 Financial eligibility standards. 51. Section 400.103 is revised to read Employment Authorization Documents as follows: (EADs). * * * * * (a) In States with medically needy § 400.103 Coverage of refugees who § 400.155 [Amended] programs under 42 CFR part 435, spend down to State financial eligibility subpart D: standards. 56–57. Section 400.155 is amended by (1) The State’s medically needy States must allow applicants for RMA adding a new paragraph (i) that reads as financial eligibility standards who do not meet the financial eligibility follows: established under 42 CFR part 435, standards elected in § 400.101 to spend § 400.155 Other services. subpart I, and as reflected in the State’s down to such standard using an * * * * * approved title XIX State Medicaid plan; appropriate method for deducting or incurred medical expenses. (i) Citizenship and naturalization preparation services, including English (2) A financial eligibility standard 52. Section 400.104 is revised to read language training and civics instruction established at up to 200% of the as follows: national poverty level; and to prepare refugees for citizenship, (b) In States without a medically § 400.104 Continued coverage of application assistance for adjustment to needy program: recipients who receive increased earnings legal permanent resident status and (1) The State’s AFDC payment from employment. citizenship status, assistance to disabled standards and methodologies in effect as (a) If a refugee who is receiving refugees in obtaining disability waivers of July 16, 1996, including any refugee medical assistance receives from English and civics requirements modifications elected by the State under earnings from employment, the earnings for naturalization, and the provision of section 1931(b)(2) of the Social Security shall not affect the refugee’s continued interpreter services for the citizenship Act; or medical assistance eligibility. interview.

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§ 400.203 [Amended] § 400.210 Time limits for obligating and a. By removing in paragraph (b) the expending funds and for filing State claims. words ‘‘only under extraordinary 58. Section 400.203(a)(1) is amended * * * * * circumstances and’’ after the word by removing the word ‘‘AFDC’’ and (b) * * * ‘‘granted’’; adding in its place the word ‘‘TANF’’. (2) A State must expend its social service and targeted assistance grants no b. By adding in paragraph (c) the § 400.207 [Amended] later than two years after the end of the following sentence after the words FFY in which the Department awards ‘‘subpart L’’: ‘‘Replacement designees 59. Section 400.207 is amended by must also adhere to the Subpart L adding a sentence after the word the grant. A State’s final financial report on expenditures of social services and regulations regarding formula allocation ‘‘Families’’ that reads: ‘‘Such costs may grants for targeted assistance, if the State include reasonable and necessary targeted assistance grants must be received no later than 90 days after the authorized the replacement designee administrative costs incurred by local end of the two-year expenditure period. appointed by the Director to act as its resettlement agencies in providing At that time, if a State’s final financial agent in applying for and receiving assistance and services under a public/ expenditure report has not been targeted assistance funds’’; and private RCA program.’’ and by removing received, the Department will deobligate c. By removing in paragraph (c) the the word ‘‘Such’’ in the last sentence any unexpended funds, including any words ‘‘400.55(b)(2), 400.56(a)(1), and adding in its place the word unliquidated obligations, based on a 400.56(a)(2), 400.56(b)(2)(i)’’ and adding ‘‘Administrative’’. State’s last submitted financial report. in their place the words ‘‘400.51 (b)(2)(i) § 400.208 [Amended] § 400.211 [Amended] and 400.58(c)’’. 60. Section 400.208 is amended by 63. Section 400.211(a) is amended: PART 401ÐCUBAN/HAITIAN ENTRANT removing the word ‘‘filing’’ whenever it a. By removing in paragraph (a) PROGRAM appears and adding in its place the introductory text the word ‘‘necessary’’ and adding in its place the words ‘‘a word ‘‘family’’ before the word ‘‘unit’’. 1. The authority citation for Part 401 reduction in the eligibility period is continues to read as follows: § 400.209 [Amended] indicated’’ after the word ‘‘if’’; b. By removing in paragraph (a)(2) the Authority: Section 501(a), Pub. L. 96–422, 61. Section 400.209 is amended by word ‘‘member’’ and adding in its place 94 Stat. 1810 (8 U.S.C. 1522 note); Executive removing the word ‘‘filing’’ wherever it the word ‘‘number’’ after the word Order 12341 (January 21, 1982). appears and by adding in its place the ‘‘annual’’; word ‘‘family’’ before the word ‘‘unit’’ c. By removing in paragraph (a)(3) the § 401.12 [Amended] and by removing the word ‘‘AFDC’’ in word ‘‘AFDC’’ wherever it appears; and d. By removing in paragraph (b) the 2. Section 401.12(a) is amended by paragraph (a) and adding in its place the removing the word ‘‘§ 400.62’’ and word ‘‘TANF’’. word ‘‘impleting’’ and adding in its place the word ‘‘implementing’’. adding in its place the words ‘‘subparts 62. Section 400.210 is amended by E and G of part 400 of this title’’. revising paragraph (b)(2) to read as § 400.301 [Amended] [FR Doc. 00–6848 Filed 3–21–00; 8:45 am] follows: 64.–67. Section 400.301 is amended: BILLING CODE 4184±01±U

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Part III

Department of Housing and Urban Development 24 CFR Parts 401 and 402 Multifamily Housing Mortgage and Housing Assistance Restructuring Program (Mark-to-Market); Final Rule

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DEPARTMENT OF HOUSING AND Federal rental assistance, including manage, administer, and oversee the URBAN DEVELOPMENT project-based assistance from HUD, for Mark-to-Market Program through a certain multifamily rental projects. The decentralized structure of Participating 24 CFR Parts 401 and 402 projects involved are projects with: (1) Administrative Entities (PAEs). OMHAR [Docket No. FR±4298±F±07] HUD-insured or HUD-held mortgages; has established the framework of the and (2) contracts for project-based rental Program through an interim rule, this RIN 2502±AH09 assistance from HUD, primarily through final rule, and an Operating Procedures the section 8 program, for which the Guide, and is managing the program by Multifamily Housing Mortgage and average rents for assisted units exceed selecting and monitoring Participating Housing Assistance Restructuring the rent of comparable properties. The Administrative Entities (PAEs). In Program (Mark-to-Market) program objectives will be recognition of limited HUD resources, AGENCY: Office of Multifamily Housing accomplished by (1) reducing project MAHRA gives PAEs the role of Assistance Restructuring, HUD. rents to no more than comparable negotiating with the owners of market rents (with certain exceptions individual projects and developing the ACTION: Final rule. discussed below), (2) restructuring the Mortgage Restructuring and Rental SUMMARY: This final rule implements HUD-insured or HUD-held financing so Sufficiency Plans (Restructuring Plans) the Mark-to-Market Program through that the monthly payments on the first that will establish the future which section 8 rents for multifamily mortgage can be paid from the reduced responsibilities of the owner, the PAE projects with HUD-insured or HUD-held rental levels, (3) performing any needed and HUD for projects that are marked- mortgages will be reduced. Currently, rehabilitation of the project, and (4) to-market. MAHRA also contains the Program is operating under the ensuring competent management of the substantive differences from the authority of an interim rule that took project. The restructured project will be previous demonstrations. For example, effect on October 11, 1998. The purpose subject to long-term use and it includes projects with HUD-held of the Program is to preserve low- affordability restrictions. mortgages in addition to HUD-insured MAHRA is intended to provide a income rental housing affordability mortgages and requires a second long-term solution to the rapidly mortgage with deferred payment from while reducing the long-term costs of growing cost to the Federal Government net cash flow after accounting for all Federal rental assistance, including of assisting affordable rental housing. project expenses. project-based assistance, and Over 900,000 housing units in The preamble to the interim rule minimizing the adverse effect on the approximately 10,000 multifamily outlined implementation steps taken FHA insurance funds. A separate final projects have been financed with FHA- through September 11, 1998. Since then, rule will be published for those sections insured mortgages and supported by the Senate confirmed President of the interim rule that govern renewal project-based section 8 housing Clinton’s appointment of Ira G. of section 8 project-based assistance assistance payment (HAP) contracts. In Peppercorn as the Director of OMHAR. contracts for projects outside of the many cases, these HAP contracts OMHAR is currently hiring staff, and Mark-to-Market Program. currently provide for rents for assisted has established its Headquarters at 1280 EFFECTIVE DATE: April 21, 2000. units that substantially exceed the rents Maryland Avenue SW, Suite 4000, FOR FURTHER INFORMATION CONTACT: Dan for comparable unassisted units in the Washington D.C. 20024. OMHAR Sullivan, Public Policy Analyst, Office local market. Starting in Fiscal Year Regional Offices have been established of Multifamily Assistance Restructuring, 1996, those contracts began to expire, in New York, Chicago, and San Department of Housing and Urban and Congress and the Administration Francisco. A Regional Office co-located Development, 1280 Maryland Ave., began providing 1-year extensions of in OMHAR Headquarters has full Suite 4000, Washington DC 20024, 202– expiring contracts. While annual HAP responsibility for the Southeast. 708–0001. (This is not a toll-free contract extensions for these projects Before publication of this final rule, number.) For hearing-and speech- maintained an important affordable HUD was required to conduct at least impaired persons, this number may be housing resource, they came at great three public forums at which accessed via TTY by calling the Federal expense. Every year more contracts organizations representing various Information Relay Service at 1–800– expired, compounding the cost of groups may express views concerning 877–8339. annual extensions. HUD’s proposed disposition of To begin to address this growing recommendations from those groups SUPPLEMENTARY INFORMATION: problem, Congress authorized (specifically, the recommendations for I. Background demonstration programs beginning with certain provisions of MAHRA that were II. Comments Received on Part 401 section 210 of the Departments of implemented in §§ 401.200, 401.201, III. Changes Made to Part 401 in Final Rule Veterans Affairs and Housing and Urban and 401.420 of the interim rule.) The IV. Findings and Certifications Development, and Independent Department conducted these forums in I. Background Agencies Appropriations Act, 1996 (see New York, Chicago, and San Francisco HUD notices regarding the on October 1, 1998. Forum participants A. Mark-to-Market demonstrations published at 61 FR representing a variety of interests made HUD issued an interim rule on 34664 (July 2, 1996), 61 FR 28757 (July presentations that expanded and September 11, 1998 (63 FR 48926) to 25, 1996), 62 FR 3566, (January 23, clarified written comments on both the implement subtitles A and D of MAHRA 1997) and 63 FR 36130, (July 1, 1998)). matters covered in the section identified (the Multifamily Assisted Housing MAHRA builds on the demonstration above, and other topics related to the Reform and Affordability Act of 1997, programs with similar objectives and Department’s implementation of the title V of Pub. L. 105–65 (approved many similar provisions, but also some Mark-to-Market Program. The vast October 27, 1997), 42 U.S.C. 1437f note. significant differences. majority of the issues discussed at the MAHRA authorized a new Mark-to- Organizationally, MAHRA established forums have been raised in one or more Market Program designed to preserve within HUD a new Office of Multifamily written public comments and will be low-income rental housing affordability Housing Assistance Restructuring addressed in the context of the written while reducing the long-term costs of (OMHAR) to develop and actively submissions. Thus, the issues raised at

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00002 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15453 the public forums will not be http://www.hud.gov/omhar. OMHAR 276 are included in this final rule and independently addressed in the and the Office of Housing conducted a discussed in Section III of this preamble to this final rule. Written distance learning seesion on September preamble. public comments in response to the 21, 1999. In addition to the training Pub. L. 106–74 also changed the Interim Rule were due October 26, 1998. already conducted, OMHAR will be underlying statutory authorization for In addition to the public forums, conducting distance learning and on- some provisions in the interim rule. The OMHAR convened a focus group on site training for PAEs, HUD Field most extensive changes affect provisions November 18, 1998, in Washington D.C. Offices, and other interested parties in in part 402 and will be dealt with in This meeting was helpful to OMHAR in the upcoming months. separate rulemaking. Statutory changes hearing discussion and debate between The Mark-to-Market Program related to part 401 are included in this commenters concerning several Operating Procedures Guide has been final rule, as discussed in part III of this controversial policy issues contained in completed and made available to the preamble, to the extent possible in a the regulations. public. OMHAR will make additional final rule. HUD issued a Request for information on the Mark-to-Market In deciding what statutory changes Qualifications (RFQ) for eligible entities Program available on its Webpage. can and should be reflected in this final interested in being Participating Among other information, OMHAR has rule, HUD considered its general Administrative Entities, 63 FR 44102, provided a list of addresses of OMHAR rulemaking procedures in 24 CFR part August 17, 1998. A bidders conference Regional Offices with jurisdiction over 10, the provisions of section 502 and was held August 27, 1998, and the Program, a list of PAEs that have section 503 of Pub. L. 106–74, and the submissions were due September 16, been selected, the list of assets assigned provisions of section 522 of MAHRA. 1998. OMHAR identified 52 Public to PAEs, and a list of Intermediary Section 503 makes the new changes to Entity applicants and 11 Non-Public Technical Assistance Grant (ITAG) and section 524 of MAHRA effective applicants as meeting the PAE technical Outreach and Training Grant (OTAG) immediately upon enactment (October qualifications. All Public Entity providers and contact persons for 20, 1999) and states that the authority to applicants were informed by January 19, technical assistance grants related to issue regulations (e.g., in section 502) 1999, and all Non-Public applicants Mark-to-Market Program restructuring. may not be construed to affect the were informed by July 2, 1999. OMHAR effectiveness or applicability of B. Renewing Section 8 Project-Based provided an initial technical assistance provisions such as section 524. The Assistance Without Mark-to-Market briefing for potential PAEs on January newly-effective section 524(g) of Restructuring 12, and 13, 1999. OMHAR has MAHRA applies the amended section conducted an orientation session for Section 524 of MAHRA and part 402 524 to all contract expirations or each PAE after its Portfolio of the interim rule authorize renewal of terminations on October 1, 1999 or Restructuring Agreement (PRA) was expiring section 8 project-based afterwards. Thus, HUD must promptly signed. Each PAE also participated in assistance contracts for projects without take appropriate action that recognizes one of five 2-day technical assistance Restructuring Plans under the Mark-to- that some of the matters covered in sessions addressing underwriting issues. Market Program, including projects that interim part 402 have changed. OMHAR will conduct additional are not eligible for Plans and eligible Section 502, however, requires that training for PAEs in the upcoming projects for which the owners request any implementing regulations that the months. OMHAR is continuing to contract renewals without Plans. At this Secretary determines ‘‘may or will affect negotiate PRAs with the public PAEs final rule stage, we are separating parts tenants of federally assisted housing’’ that have not yet executed a PRA. 401 and 402. Minor changes are made may be issued only after notice and OMHAR expects each asset submitted in this final rule to §§ 402.1, 402.4, and comment rulemaking. Ordinarily, HUD by an owner for restructuring to be 402.6. The rest of interim part 402 has the discretion under 24 CFR part 10 allocated to a PAE by the end of 1999. continues in effect until other changes to issue substantive changes to MAHRA authorizes $10 million per to part 402 are published later as a regulations for effect, without notice year of technical assistance funding to separate final rule. and comment rulemaking (i.e., through tenant and non-profit groups, and an interim or final rule), if HUD C. Changes in Legislation public entities. These funds will be used determines that a public comment to build tenant capacity to participate After MAHRA became law, Congress period before effectiveness is meaningfully in the Mark-to-Market enacted the Departments of Veterans unnecessary, impracticable, or contrary program by organizing and training Affairs and Housing and Urban to the public interest. Section 502 limits (OTAG grants), and to provide technical Development, and Independent this discretion. assistance to tenants of specific Mark to Agencies Appropriations Act, 1999 Finally, section 522 of MAHRA Market properties (ITAG grants). The (Pub. L. 105–276, approved October 21, (enacted in 1997), which directed HUD initial funding for FY 1999 was awarded 1998) and the Departments of Veterans to implement section 524 of MAHRA by through the Department’s SuperNOFA Affairs and Housing and Urban interim and then final rule, was not process, and grant agreements were Development, and Independent expressly amended. HUD is already executed in January 1999. OMHAR Agencies Appropriations Act 2000 (Pub. overdue in issuing the final rule conducted training for the ITAG and L. 106–74, approved October 20, 1999). required by that section. But HUD OTAG grantees on November 30, The first law amended the underlying cannot now proceed to replace the December 1, and 2, 1998. statutory authorization for some interim rule with a final rule without A general brochure explaining the provisions in the interim rule. HUD recognizing the intervening changes to basic program features is being prepared issued two corrections to the interim section 524 that are now in effect but are and will be distributed to tenant groups rule, on October 15, 1998 (63 FR 55333) inconsistent with various provisions of and other interested stakeholders. Once and December 28, 1998 (63 FR 71372). the interim rule. published, copies may be obtained by The second correction included one There is no clear guidance in the calling the Multifamily Housing change to part 402 to incorporate a statutes on how to reconcile the later Clearinghouse at 1–800–685–8470, or provision of Pub. L. 105–276. Other instructions on rulemaking procedure in downloaded from OMHAR’s Webpage at changes needed to reflect Pub. L. 105– section 502—which apply not only to

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MAHRA changes, but to many unrelated The interim rule was signed by 3. Conflicts of interest (§ 401.310). programs such as the section 202 and Secretary Andrew Cuomo in the absence a. General. section 811 assisted housing programs— of an OMHAR Director. OMHAR has b. Contested matters. 4. Environmental review responsibilities with earlier instructions on rulemaking now begun operations, and OMHAR (§ 401.314). procedure that apply to specific Director Ira Peppercorn has statutory provisions of MAHRA. In this final rule, authority to sign this final rule because E. § 401.402, Cooperation with owner and HUD has reconciled those sections by it is limited to part 401 and projects qualified mortgagee in Restructuring Plan applying the following five principles: eligible for the Mark-to-Market program. development. 1. HUD should continue to honor As required by section 573(b) of F. §§ 401.405–.406, Restructuring Congressional intent for rapid final MAHRA, this rule is issued with the Commitment. implementation of the Mark-to-Market approval of Secretary Cuomo. G. § 401.408, Affordability and use Program, in accordance with section 522 II. Comments Received on Part 401 restrictions required. of MAHRA, by publishing part 401 in 1. Use restrictions and partially-assisted final form as soon as feasible. We received 61 comments that are projects. 2. Provisions in the interim part 401 included in the docket file for the 2. Use Agreements should last ‘‘exactly’’ 30 that conflict with later amendments to interim rule. We disregarded five years—not ‘‘at least’’ 30 years. MAHRA should not be published in comments as not pertinent to the 3. If no section 8 funds are available, owners final form without making conforming interim rule. The discussion in this should be required to charge restructured section of this preamble summarizes the rents or below-market LIHTC rents. changes, to avoid confusion and facial 4. There should be no below-market rents. conflict with current statutory other comments and HUD’s responses to them, except that a comment that 5. Enforceability of Use Agreements and provisions. notice. 3. Conforming changes that simply pertained solely to part 402 of the 6. Pre-existing Use Agreements should be reproduce or paraphrase new statutory interim rule, and HUD’s response, will preserved. language do not ‘‘affect’’ tenants within appear when part 402 is published as a 7. Use Agreement should be subordinate to the meaning of section 502, since any separate final rule. In this section, we conventional loan. effect derives from the statute rather have grouped the sections of interim 8. Renewal contract terms must remain materially the same. HUD’s rulemaking. Thus, section 502 part 401 into major areas of related does not require a new proposed rule for subject matter, as shown in the outline H. §§ 401.410–.412, Determining and such changes. set forth below. Discussion is generally adjusting rents under restructuring with 4. Conforming changes that simply in the order in which the areas are first project-based assistance. reproduce or paraphrase new statutory covered in interim part 401. We have 1. Difficulties in determining comparable language also do not have substantive not listed the sections that received no market rents. effect on tenants, owners or others that public comments. 2. ‘‘Blended’’ rents considering unassisted but restricted units. would require prior notice and A. §§ 401.2, 401.99 and 401.100, General 3. Objections to ‘‘NOI project’’ and ‘‘positive comment rulemaking under 24 CFR part provisions and eligibility. social asset’’ requirements for exception 10. Such procedure is properly regarded 1. Definitions (§ 401.2). rents. as both unnecessary and contrary to the a. Eligible project. 4. Exception rents should be alternative to public interest. b. Eligible project costs. FMR. 5. Any changes to the interim rule c. Priority purchaser. 5. Limitation of exception rents to 120 that are made in response to new d. Tenant organization. percent of FMR. 2. Actions needed to request a renewal of 6. Need to define ‘‘community’’. statutory language but that make project-based assistance (§ 401.99). 7. Other factors to be included in expenses. substantive additions to the statutory 3. Projects eligible for a Restructuring Plan 8. Determination of OCAF. provisions should be made only through (§ 401.100). a. General. a separate notice and comment a. 236/202 projects. b. Excluding debt service. rulemaking procedure commencing b. Preservation projects. 9. Negative OCAF. 10. Appeals of OCAF. with a proposed rule—in accord with 24 B. §§ 401.101 and 401.403, Rejection of CFR part 10 and (to the extent the project or owner. I. §§ 401.420–.421, Project-based assistance substantive additions may affect 1. Designation as ‘‘bad’’ project. or tenant-based assistance. tenants) section 502. Thus, no such 2. Designation as ‘‘bad’’ owner. 1. What vacancies should be considered in changes should be included in this final 3. Treatment of civil rights violations. determining the presence of a tight rule. 4. Project transfers to ‘‘good’’ owners. market? 2. Effect of sale to cooperative. C. §§ 401.200, 401.200 and 401.304, PAE D. Other Background Information 3. Limit conversion approvals to public body selection and compensation. This final part 401 is based on HUD’s PAEs. consideration of: (1) Public comments 1. Civil rights violations. 4. Requirement for semi-annual reporting in 2. PAE compensation. received on the September 11, 1998, § 401.421(d). a. Incentives. 5. How should the final rule handle/present interim rule; (2) discussions at the b. Timing of HUD payments. factors to be considered in the Rental public forums; (3) the initial c. Same fee schedule for public and private Assistance Assessment Plan? development of working relationships PAEs. 6. Must all units be assisted under a with PAEs; and (4) certain provisions in d. Environmental review responsibilities. Restructuring Plan? Pub. L. 105–276 and Pub. L. 106–74 as D. §§ 401.303, 401.309, 401.310, and 401.314, J. § 401.450–.453, Physical condition of mentioned above. HUD has also refined Other provisions of PRA. project. certain policies due to further 1. Indemnification of non-public PAEs consideration when preparing and 1. Use of FNMA PNA Guidelines should not (§ 401.303). be eliminated. revising the Mark-to-Market Program 2. PRA term and termination provisions 2. The final rule should make clear that third Operating Procedures Guide (called the (§ 401.309). party expenses for physical condition ‘‘Operating Procedures Guide’’ in this a. Term should be longer than 1 year. evaluation are eligible expenses. preamble.) b. PRA terminations. 3. Lead hazards.

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4. Reserve account deposit. P. §§ 401.550–.554, Implementation of the rule) to determine whether the contract 5. Concern about cost-effectiveness Restructuring Plan after closing. should be renewed under § 402.4. determination in § 401.451(c). 1. Inspections. Finally, because part 401 is limited to 6. PAE certification. 2. PAE matters. projects eligible for a Restructuring 7. Property standards for rehabilitation. 3. Role of lender. Plan, this section of the interim rule 8. HQS should not apply to non-assisted 4. Servicing of second mortgage. market rent units. refers the owner to § 402.5 if the project 5. Section 8 contract administration. is not eligible for restructuring but the 6. Enforcement. K. §§ 401.460–.471, Mortgage restructuring owner wants project-based assistance and payment of claims. Q. § 401.595, Contract provisions. renewed. 1. How should net operating income R. § 401.601 of interim rule and § 402.4(a)(2) Section 401.100 of the interim rule available to pay the first mortgage be of final rule, Consideration of an owner’s (merged with the definition of ‘‘eligible determined? request to renew an expiring contract without project’’ in the final rule) incorporates a. Expenses. a Restructuring Plan. the statutory requirements in section b. Sizing the first mortgage. 512(2) of MAHRA for an eligible project 2. First mortgage terms and conditions. 1. Determination/verification of rent comparability. by providing that project rent exceeds 3. Refinancing. the rent of comparable properties, as 4. Second mortgage terms and conditions. 2. Determining adequacy of DSC at market a. Interest rate. comparable rents. required by section 512(2)(A), if the b. Other terms and conditions. S. § 401.602, Tenant protection if an expiring gross potential rent revenue (i.e., at 100 5. Forgiveness/modification of second contract is not renewed. percent occupancy) for the project-based mortgage. assisted units in the project at current 1. Is tenant-based assistance mandatory? gross rents exceeds the gross potential 6. Return to owner. 2. Notice issues. 7. Third mortgage. a. 6-month notice of non-renewal. rent for those units (at 100 percent 8. Claims. b. When is notice required? occupancy) using comparable market L. §§ 401.472–.473, Funding of rehabilitation. 3. Rent levels for tenant-based assistance. rents. 4. Timing of tenant-based assistance. 1. Opposition to 20 percent owner Summary of Comments contribution requirement. T. § 401.606, Tenant-based assistance 1. Definitions (§ 401.2). 2. Opposition to limit on funding from provisions for displaced tenants. a. Eligible project. Two commenters governmental resources. U. §§ 401.645 and 401.651, Owner dispute of felt that the definition of ‘‘eligible 3. Other comments regarding 20 percent rejection and administrative appeals. requirement. project’’ in the interim rule would 4. Comments regarding use of project 1. Tenant appeals. require restructuring for projects whose accounts for rehabilitation. 2. PAE appeals of rejections under § 401.405. aggregate rents might not exceed 5. Section 236(s) rehabilitation grants. 3. Time for owner to dispute approved plan. comparable market rents, contrary to 6. Funding of rehabilitation through claim 4. Owner appeals. Congressional intent, because rent levels amount. V. § 401.600, Will a contract be extended if for non-assisted units would not be M. § 401.480, Sale or transfer of project. it would expire while an owner’s request for considered in preservation projects or a Restructuring Plan is pending? similar projects with unassisted below- 1. HUD should be responsible for sale of market units and above-market section 8 projects. W. Miscellaneous comments. 2. Preference for priority purchasers. units. 3. Priority purchasers and competitive sales. A. Sections 401.2, 401.99 and 401.100, HUD response: Preservation projects General Provisions and Eligibility are discussed in the response under N. §§ 401.481-.484, Other requirements of Section II.A.3.b. They are no longer Restructuring Plan. Summary of Sections eligible for the Mark-to-Market Program. 1. Subsidy layering limitations on HUD funds Section 401.2 identifies the terms that b. Eligible project costs. One (§ 401.481). are defined in MAHRA and used in the commenter felt that eligible project costs 2. Leasing units to voucher holders rule, and defines additional terms that should include the costs to owners of (§ 401.483). are used in the rule. Section 401.99 3. Property management standards hiring advisors such as accountants, (§ 401.484). explains three procedures to be appraisers, attorneys, real estate a. General comments on changes needed. followed by owners who request specialists, or tax advisors. The b. Suggestions for language changes. renewals of section 8 project-based commenter argued that many owners 4. Management fees. assistance contracts. First, an owner of are confused and uninformed about the an eligible project who requests a O. §§ 401.500–.501, Participation by tenants, details and impact of MAHRA and that community and local government. Restructuring Plan must, at least 3 they have limited funds to seek advice. months before the project-based HUD response: Such transaction costs 1. General. assistance contract expires, certify to can be included in the mortgage 2. Involve others in Rental Assistance Assessment Plan. HUD that, to the best of the owner’s restructuring to the extent reasonable 3. Intermediaries administering technical knowledge, project rents exceed and necessary and supportable within a assistance grants should receive notice. comparable market rents and neither the refinancing first mortgage (though not in 4. Notices in other languages. owner nor any affiliate is suspended or a modification of the existing first 5. Notice to all tenants and posted in project. debarred (or that the owner proposes a mortgage). If the refinancing mortgage is 6. Right to organize. voluntary sale of the project). Second, insured by FHA, normal FHA criteria 7. Tenant role in PAE selection. an owner of an eligible project who does would be applied. Generally, OMHAR 8. Rent levels. not request a Restructuring Plan must will recognize 50 percent of such costs 9. Use Agreement changes. submit to HUD the certification to the extent they are customary, 10. Monitoring and compliance activities. 11. Transfer of properties and tenant described above in the same time frame, reasonably necessary, and to the extent participation. with the additional items that will they are otherwise acceptable under the 12. Tenant involvement for projects not permit the PAE to consider the request terms of the new restructured first restructured. in accordance with § 401.601 of the mortgage. The owner’s share of such 13. Access to information. interim rule (§ 402.4(a)(2) in this final costs could only be recognized as

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00005 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 15456 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations project operating expenses to the extent Procedures Guide or subsequent HUD response: Section 531(b) of Pub. there was sufficient cash flow in the guidance. L. 106–74 amended MAHRA to make fiscal year during which the 2. Actions needed to request a preservation projects with plans of restructuring took place and then only renewal of project-based assistance action ineligible for the Mark-to-Market with written approval from the HUD (§ 401.99). program. This statutory change Multifamily Hub or Program Center. One commenter pointed out that automatically excludes these projects c. Priority purchaser. Three ordinarily a project has 60 days to from the ‘‘eligible projects’’ definition in commenters were concerned about the complete the annual financial statement the interim rule. No change in rule definition of ‘‘priority purchaser’’. One and that requiring the statement during language is needed to make the final felt that the definition should include this period may cause difficulties for rule comply with the statutory change. non-tenant based nonprofit owners. The commenter suggested that, organizations and non-community B. Sections 401.101 and 401.403, in such instances, the preceding year’s Rejection of Owner or Project based nonprofit organizations because financial statement should be many of these groups possessed acceptable. The same commenter Summary of Sections considerable experience with low- suggested that the reference in These sections implement section income housing and would be § 401.99(c) to § 402.5 should be 516(a) of MAHRA, which permits HUD important resources in preserving low- expanded to include § 402.4 because a to elect to not consider a restructuring income housing. Two commenters project can have its contract extended plan or a request for contract renewal on suggested that the final rule clarify that under § 402.4 if the owner desires. One the basis of certain actions or omissions a tenant organization or tenant-endorsed commenter said that notice of intent to by an owner or purchaser of the project community-based nonprofit or public restructure should be given to or an affiliate, or if the PAE determines agency can, as a controlling general mortgagees. partner in a limited partnership formed that the poor condition of the project HUD response: The most recently cannot be remedied in a cost-effective to raise tax credit equity, retain its required financial statement must be priority purchaser status through the manner. Under § 401.101, HUD and provided. If the renewal request and PAEs will not consider the request of an partnership, as well as the related expiration is within the 60 day period ability to qualify for second mortgage owner of an eligible project for a following the end of the project’s fiscal Restructuring Plan if the owner or an forgiveness. year, the previous year’s statement will HUD response: HUD agrees that a affiliate is debarred or suspended by be accepted. We have added the limited partnership with a sole general HUD unless a sale or transfer of the suggested reference to § 402.5. A project partner that is a tenant organization or property is proposed in accordance with owner must give notice to mortgagees of tenant-endorsed community-based non- § 401.480. The final rule makes a change intent to restructure. This is stated in profit organization or public body may to § 401.101 regarding affiliates, be viewed as a priority purchaser for the interim rule’s preamble discussion consistent with the § 401.403 change purposes of § 401.461(b)(5) (possible of § 401.99, and is clearly required in discussed below. forgiveness or modification of HUD-held the Operating Procedures Guide. We Under § 401.403 of the interim rule, second mortgage upon sale of project to consider such notice part of the owner the PAE is responsible for a further priority purchaser) and § 401.480 cooperation required by § 401.402. more complete and ongoing assessment (preference for sale to priority purchaser 3. Projects eligible for a Restructuring of owner and project eligibility while a when current owner found ineligible for Plan (§ 401.100). Restructuring Plan is developed. The restructuring). HUD does not agree with a. 236/202 projects. One commenter PAE must inform OMHAR if: (1) The the suggestion that priority purchasers requested clarification of whether the owner or an affiliate is debarred or should include national non-profit class of ‘‘236/202’’ projects are eligible suspended; (2) the owner or an affiliate organizations without a local under MAHRA. (These projects were has engaged in material adverse community base. There are national originally processed under the section financial or managerial actions or groups that can bring experience, but 202 program but converted to the omissions as described in section 516(a) they should either partner with a local section 236 program after its creation in of MAHRA, which may include actions group, or else need to compete with 1968.) that have resulted in imposition of a other potential purchasers after the HUD response: Section 236/202 Limited Denial of Participation (LDP) or period reserved for marketing projects are eligible in the same manner a proposed debarment under 24 CFR exclusively to priority purchasers, as other section 236 projects. part 25, or outstanding violations of which will initially be set at 4 months. b. Preservation projects. One civil rights laws; or (3) the PAE The applicable statutory provisions commenter argued that MAHRA should determines that the project does not (sections 516(e) and 517(a)(5) of be interpreted to exclude from eligibility meet the physical condition standards MAHRA) clearly show a Congressional preservation projects with plans of in § 401.453 and cannot be rehabilitated desire for community-basing in this action (under ELIHPA or LIHPRHA). to meet such standards in a cost- context. The commenter pointed out difficulties effective manner. Under the interim d. Tenant organization. One in reconciling MAHRA’s requirements rule, HUD may reject an owner’s request commenter suggested that the definition for restructuring with promises made to for a Restructuring Plan for any of these of ‘‘tenant organization’’ in the final rule owners in ELIHPA/LIHPRHA plans of reasons. In the final rule, debarment or should clarify the details of the election action, such as the short term use suspension of an owner are automatic of tenant organization officers to avoid agreements and the unrestricted return grounds for rejection under § 401.403 future disputes as to whether an to owner approved by HUD under unless an acceptable sale is proposed. organization is a tenant organization ELIHPA. (Other comments related to We revised the rule to give HUD entitled to recognition. preservation projects are mentioned in discretion whether to accept or reject an HUD response: This level of detail is the summaries in Sections II.A.1.a., owner request for restructuring if an inappropriate and unnecessary for a II.H.2., II.H.7., and II.K.1 of this affiliate of the owner is suspended or rule. HUD will address organizational preamble, and the response below debarred. When rejection is details as needed in the Operating applies to those comments as well). discretionary, HUD may advise the PAE

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00006 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15457 to continue processing (under part 401) Plan, including the point at which an PAE have no outstanding violations of or decide to continue processing itself apparent outstanding civil rights civil rights laws. This commenter (under part 402). violation will constitute a bar to further recommended that potential PAEs consideration of a Restructuring Plan for should not be disqualified unless the Summary of Comments the owner. The Operating Procedures civil rights violations are material and 1. Designation as ‘‘bad’’ project. Guide provides further information on the result of a final adjudication. In One commenter suggested that the the civil rights legal authorities that will addition, this commenter felt that rejection of a ‘‘bad project’’ because of be considered when making a violations that have been substantially poor condition that cannot be remedied determination of owner eligibility. cured should not become grounds for in cost-effective manner needs to be 4. Project transfers to ‘‘good’’ owners. disqualification. guided by an objective standard of cost- Four commenters thought that the HUD response: Please see HUD’s effectiveness (the commenter suggested rule was deficient in its treatment of response under Section II.B.3. on a a standard). project transfers after ‘‘bad owner’’ similar point. HUD response: HUD does not agree determinations. One labelled the 2. PAE compensation. with this commenter that an objective interim rule’s provisions providing for a. Incentives. One commenter felt that elaboration on the cost-effectiveness rejection of certain owners a ‘‘misguided it was important to have full and early requirement is feasible for inclusion in policy of forced voucherization’’ and public disclosure of incentives to PAEs the final rule. The specific facts and wanted the final rule to reiterate that in order to ensure public confidence in circumstances must be considered by contract termination is a last resort and the fairness and objectivity of the the PAE and OMHAR. The appeal that transfer to a priority purchaser is restructuring process. Three process provided in subpart F is preferable to conversion. Two others commenters felt that PAE incentives available if there is a dispute. cited a statement by Senator Bond should reflect the statutory intent that 2. Designation as ‘‘bad’’ owner. regarding the need for alternative economic and non-economic objectives HUD should not reject an owner for solutions for projects when an owner is be balanced. One of these commenters a suspension/debarment if the owner’s disqualified. suggested incentives similar to those appeal is not yet adjudicated, argued HUD response: The commenters who two commenters. One of these thought that the rule was deficient did offered PAEs in the Portfolio commenters also objected to basing a not suggest specific improvements to Reengineering demonstration programs. ‘‘bad owner’’ rejection on a limited the rule. The determination to deny a HUD response: The specific details of denial of participation (LDP) or restructuring or to not renew the PAE compensation will be included in proposed debarment alone because such project-based assistance will be made on the PRA. They are not appropriate for actions might not be ‘‘material’’ within a case-by-case basis. The PAE and HUD inclusion in regulations since the meaning of section 516(a) of will consider the impact on tenants, the compensation will be subject to revision MAHRA). The commenter suggested potential to transfer the project to from time to time. The details of the that a PAE should examine the facts priority purchasers, and other remedies. PAE compensation package will be fully behind a LDP/proposed debarment and The PAE will invite tenant and local disclosed when the ongoing reach its own conclusion regarding community participation and solicit negotiations with the remaining PAEs materiality. comments in accordance with without PRAs are concluded. The HUD response: The rule is consistent §§ 401.500 and .501 of the final rule. compensation for private PAEs is with these comments. ‘‘Bad owner’’ determined through a competitive C. Sections 401.200, 401.201 and determinations are made on the basis of bidding process. The incentive section 401.304, PAE Selection and of the compensation package has been ‘‘material adverse financial or Compensation managerial actions or omissions’’ set up to balance the preservation and identified in section 516(a)(2) of Summary of Sections cost savings goals of the Mark-to-Market MAHRA. In the final rule, the Program. The compensation package of Section 512(10) of MAHRA, the demonstration program is being Department has decided that an actual referenced in § 401.200, permits a carefully considered as OMHAR suspension or debarment will always be public agency, a nonprofit organization, finalizes the PAE compensation package material for purposes of eligibility for a or a for-profit entity, to be a PAE. Under for the permanent program. Restructuring Plan. HUD and PAEs are § 401.200, the PAE may not have any b. Timing of HUD payments. One required to make a determination of outstanding violations of civil rights commenter urged HUD to provide PAEs materiality before rejecting an owner if laws, determined in accordance with with a significant portion of their fees a debarment or suspension decision has criteria in use by HUD. Section 401.201 not already been made by HUD. explains that HUD will select PAEs in early in the restructuring process. 3. Treatment of civil rights violations. accordance with the statutory selection HUD response: We do not agree that Two commenters wanted civil rights criteria and additional selection criteria this would be necessary or appropriate. violations to be considered in a ‘‘bad established by HUD. The selection Funds for fees and reimbursable owner’’ determination only if they have method will be determined by HUD and expenses will be released commensurate been finally adjudicated and have not may be through a request for with completion of work. been substantially cured. One of these qualifications (RFQ). Section 401.304 c. Same fee schedule for public and commenters commented on a need to provides that the PRA will contain private PAEs. One commenter was clarify which violations are provisions on compensation to the PAE concerned about differing fee schedules disqualifying civil rights violations. regarding a base fee and reimbursement for public and private PAEs. This HUD response: Civil rights violations of expenses, and may provide for commenter felt that a differing fee will be addressed by OMHAR after incentive fees. schedule might lead HUD to choose consultation with HUD’s Office of Fair private PAEs in order to save money, Housing and Equal Opportunity. The Summary of Comments thus contradicting the Congressional Operating Procedures Guide details the 1. Civil Rights violations. mandate to utilize public agencies decision-making process regarding One commenter had due process whenever possible to protect the public owner eligibility for a Restructuring concerns with requiring that a potential interest.

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HUD response: The statute, the Summary of Comments additional year. Except in the regulations, and HUD’s implementation 1. Indemnification of non-public PAEs presumably unusual cases where a PRA of the program have all been consistent (§ 401.303). was terminated and the assets with expressed Congressional intent One commenter felt that HUD should reassigned to another PAE or to OMHAR that public entities have a priority in indemnify non-public PAEs. The itself, the PAE will continue to process OMHAR’s selection process for a PAE commenter argued that while section the particular projects agreed upon by within a geographic jurisdiction. 513(a)(2)(G) of MAHRA specifically HUD and the PAE. A 1-year contract d. Environmental review expenses. requires HUD to indemnify public term is appropriate both in order to Two commenters noted that the interim PAEs, section 517(b)(5) gives HUD revise provisions as necessary based on rule indicated that the PAE may be broad authority to provide experience, and as an administrative expected to assist HUD in complying indemnification to non-public PAEs as convenience for the Department. with HUD’s environmental review well. This commenter asserted that the OMHAR’s intent is to renew PRAs with responsibilities by completing certain same policy reasons that justify PAEs unless there are performance or capacity problems or there is mutual forms or checklists. Both commenters indemnification of public PAEs argued agreement not to continue. suggested that HUD should clarify that in favor of indemnifying non-public b. PRA terminations. One commenter any outside expense incurred by PAEs PAEs. Finally, the commenter thought in completing these forms should be felt that the rule appeared to allow that HUD should make clear in the final termination with or without cause, and considered a reimbursable expense. regulation that a PAE may indemnify a HUD response: Such expenses will be that terminations without cause would non-public team partner, if it so cause PAEs to adopt a short-term reimbursable subject to the terms of the chooses. PRA. perspective detrimental to restructuring. HUD response: HUD will indemnify This commenter suggested only D. Sections 401.303, 401.309, 401.310 only public entity PAEs. Although PAEs allowing termination for cause and and 401.314, Other Provisions of PRA may choose to indemnify teaming providing appropriate due process partners, such indemnification will not Summary of Sections protection. Another commenter agreed be a reimbursable expense and PAEs that termination should only be for Section 401.303 implements section may not pass on this cost to OMHAR or cause and ‘‘only in extraordinary 513(a)(2)(G) of MAHRA, which requires HUD. There is no prohibition in circumstances’’. One commenter was HUD to provide a PAE indemnity MAHRA against PAEs indemnifying concerned that HUD could terminate a against lawsuits and penalties for action teaming partners or subcontractors and, PRA at any time for cause but that a taken by a PAE pursuant to the PRA accordingly, this will not be addressed PAE could not, and that rights to (except for willful misconduct or in the final rule. termination for cause should be mutual negligence) if the PAE is a State housing 2. PRA term and termination because Congress intended HUD and finance agency or a local housing provisions (§ 401.309). PAEs to be partners. agency. Under § 401.309, the PRA will a. Terms should be longer than 1 year. HUD response: The PRA includes a have a term of 1 year, to be renewed for One commenter pointed out that bilateral right to termination for successive terms of 1 year with the preparing an application to become a convenience and is therefore in keeping mutual agreement of both parties. A PAE takes considerable time and effort, with the partnership goal. Were PRA will be subject to termination by and that learning and becoming expert OMHAR to exercise this right the PAE HUD at any time. at fulfilling the requirements of the PRA would be paid, at a minimum, for Section 401.310 addresses conflicts of requires significant additional effort. services rendered to the point of the interest for a PAE and related persons The commenter felt that 1 year would termination. We do not believe that the defined in the section as ‘‘restricted not provide an adequate opportunity for termination for convenience provision persons’’. A conflict of interest exists HUD to determine the PAE’s capacity. of the rule will reasonably affect the when a PAE or restricted person either: Another commenter felt that the short PAE’s perspective on the PRA or (1) Has personal, business, or financial term would interfere with owner ability restructuring work. interests or relationships that would to develop long-term relationships with 3. Conflicts of interest (§ 401.310). lead a reasonable and knowledgeable a PAE. The commenter suggested that a. General. A number of commenters person to question the integrity or the terms should be indefinite after the expressed concerns about the conflict of impartiality of those acting for the PAE; first year. A third commenter had two interest rules. One commenter felt that or (2) in a lawsuit, is an adverse party concerns about the PAE renewal HUD should be able to waive a conflict either to HUD or to the owner of a process: that yearly PRA renewals involving a potential PAE who is taking project under the PAE’s PRA. In general, would lead to another burdensome and an adverse position to an owner, if the HUD will avoid dealing with a PAE unnecessary PAE selection process, and owner consents, because it is the owner with a conflict of interest. that HUD might use the annual review who is at risk of being damaged. One Section 401.314 states that HUD is process to replace HFAs with non- commenter felt that the conflicts of legally required to retain any public entities because the one-time interest rule was overbroad. This environmental review responsibilities priority for public entities would not commenter argued that HFAs often under 24 CFR part 50, and that any apply after the initial selection. The work with the same principals in required environmental review will commenter argued that Congress did not different roles and that an HFA should occur before HUD executes a intend for HUD to use public agencies not be penalized for having legitimate Restructuring Commitment (see as PAEs only for the first year, and business contacts that do not interfere § 401.405). Without delegating any discouraged HUD from trying to with their objectivity as a PAE. This decision-making authority to the PAE, circumvent Congress’ intent by creating commenter suggested that HUD narrow OMHAR has included in the PRA a a new PAE selection process in the later the scope of the conflict of interest provision for PAE completion of forms years of the program. provisions so that they apply only to and/or checklists to assist HUD in HUD response: If 1 year is not specific properties undergoing complying with its requirements under adequate to determine a PAE’s capacity, restructuring. This commenter also felt environmental regulations. HUD will extend the contract for an that the conflict of interest provisions

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00008 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15459 would make it difficult for a PAE to HUD response: Current law does not F. Sections 401.405–.406, Restructuring provide an owner with other available permit HUD to delegate environmental Commitment resources, such as Low Income Housing review responsibilities to a lender. Summary of Sections Tax Credits, HOME funds, and risk- sharing loans, which is unnecessary E. Section 401.402, Cooperation with These sections provide for HUD to because HFAs utilize strict, objective Owner and Qualified Mortgagee in approve a Restructuring Plan as allocation plans for these resources. Restructuring Plan Development submitted by a PAE, require changes as HUD response: The conflict of interest Summary of Section a condition for approval, or reject the provisions are drafted to protect Plan. HUD will inform the PAE of the OMHAR and the public interest while This section provides guidance for reasons for rejection and the subpart F allowing flexibility to accommodate implementation of the requirement in dispute and appeal procedure will varying factual situations. In order to section 514(a)(2) of MAHRA for apply. The PAE will deliver to the prevent unfairness in particular cases cooperation among the PAE, project owner, for execution, a proposed and to allow PAEs to provide owners owner and mortgage servicer. The Restructuring Commitment as the final with other available resources, all owner must actively work with the PAE element of a HUD-approved waiver requests will be considered and other necessary third parties, Restructuring Plan. carefully. As deemed appropriate on a including the mortgage servicer, to Summary of Comments case-by-case basis, OMHAR will seek develop a Restructuring Plan. If the Two commenters said that HUD information from outside sources when owner fails to cooperate to the should be required to approve/ considering conflict of interest satisfaction of the PAE, and HUD agrees, determinations and waiver requests. disapprove a proposed Restructuring the PAE will not continue with Commitment within a specified period b. Contested matters. Two development of a Restructuring Plan. commenters felt that any lawsuit in after PAE submission; one of them which a PAE and an owner were Summary of Comments suggested 10 days. adversaries should automatically be HUD response: OMHAR anticipates a considered a conflict of interest and the One commenter asked HUD to clarify standard processing time of 15 days for PAE should automatically be that an owner who is viewed as review of conforming transactions. disqualified from exercising any insufficiently ‘‘cooperative’’ in helping a Conforming transactions are those in responsibilities under the regulations PAE develop a restructuring plan that which there is limited financial impact with regard to that owner. One of these differs from the approach suggested by or risk to the Federal Government. commenters also felt that the final rule the owner will not become ineligible Specific criteria will be defined in the should allow owners and other under § 402.7 for section 8 contract Operating Procedures Guide and the interested parties to seek HUD review of renewal without restructuring. Another PRA. The standard processing time for potential conflicts of interest, in commenter said that HUD should make review of non-conforming transactions addition to the PAE. One commenter it easier for servicers to ‘‘cooperate’’ is anticipated to be 30 days. asked whether and why a disqualifying with respect to first mortgages that are G. Section 401.408, Affordability and conflict of interest would apply, not too small (before or after a partial claim) Use Restrictions Required only to a party to a lawsuit or contested to attract servicers. This commenter matter, but also to any legal counsel mentioned such matters as difficulty in Summary of Section representing such a party. This getting the consent of securitizers Section 401.408 of the interim rule commenter also felt that the final rule (including Ginnie Mae) or whole-loan implements section 514(e)(6) of should more fully define the scope of investors, a need for an increased FHA MAHRA, which requires the the terms ‘‘administrative proceeding or servicing fee, reducing the costs of Restructuring Plan to provide for other contested matter’’ and ‘‘adverse to servicing (specifically, not requiring a affordability and use restrictions on the HUD.’’ mortgagee inspection if the PAE project for a term of at least 30 years, HUD response: Any lawsuit in which inspects), allowing financing costs to consistent with the long-term physical a PAE and an owner are adversaries will include reasonable administrative fees, and financial viability and character of be considered a conflict of interest. It considering an additional escrow the project as affordable housing. During will trigger scrutiny and will necessitate account for servicing fees, and a period when at least 20 percent of the a waiver prior to the PAE beginning or considering rebate of part of FHA units in a project receive project-based continuing work on a Restructuring premium such as the section 221(g)(4) assistance, this section provides that the Plan. OMHAR will carefully investigate put for Interest Enhancement Payment. affordability restrictions applicable to conflict of interest allegations or such assistance will apply in lieu of disclosures that are raised by any HUD Response: We will address the other restrictions required to be in the source. The Operating Procedures Guide comment on eligibiity under § 402.7 recorded Use Agreement. Otherwise, the and OMHAR’s Internet Website provide when part 402 is published in final Use Agreement will require more information on the specifics of form. Inability of a mortgagee or servicer conformance to the rent and tenant OMHAR’s conflict of interest to obtain investor consent to modify, or income profile used in the Low Income requirements, including affected parties their determination that the size of the Housing Tax Credit Program (LIHTC) for and definitions of terms. restructured loan was not financially any project that is restructured (i.e., 4. Environmental review feasible to originate and/or service, is either rents set for 20 percent of the responsibilities (§ 401.314). not considered a lack of cooperation for units at 30 percent of 50 percent of One commenter felt that, if the purposes of § 401.402. As noted in median income or for 40 percent of the restructured first mortgage is refinanced section III of this preamble under units at 30 percent of 60 percent of with a conventional loan, then HUD § 401.550, the final rule clarifies that median income.) The Use Agreement should delegate all required HUD will accept an inspection by a PAE will specify which interested parties, in environmental reviews to the in lieu of an inspection by the addition to HUD and the PAE, will have conventional lender. mortgagee or servicer. rights of enforcement.

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Summary of Comments will be limited to rents at the lesser of not seem to demand. Another 1. Use restrictions and partially- market or below-market LIHTC rents in commenter felt that third parties should assisted projects. the event that section 8 funds are not not be allowed to challenge matters that Two commenters expressed concern available in the future. Since market both the PAE and the owner agree upon, that § 401.408 makes use restrictions conditions will more likely improve or or without prior written permission applicable to an entire project even worsen rather than stay static, the from the PAE. This commenter also felt when that project is only partially- market rents the units will command at that the rule should make clear that the assisted. Both commenters suggested that time will probably not be the owner should receive notice of any that use restriction agreements should restructured rents. enforcement actions as well as a apply only to formerly-assisted units 4. There should be no below-market reasonable opportunity to cure any within a partially-assisted project. One level rents. problems. One commenter felt that the commenter thought that a failure to One commenter felt that the rule right of parties to enforce a Use make this exception would cause contemplated establishing below-market Agreement should be tightly controlled. owners of partially-assisted projects to rents when fewer than 20 percent of the One commenter felt that HUD should opt out of the section 8 program, which units in a project receive project-based identify the specific remedies provided in turn would decrease the stock of assistance. This commenter was each party that may enforce a Use affordable housing. concerned about adverse tax Agreement. This commenter also felt HUD response: HUD does not share consequences and strongly that HUD should, at a minimum, the concerns of these commenters. Use recommended that no project be indicate that all enforcement actions restrictions run with the land because required to reduce its rents below must be initiated by HUD/PAE and that the entire project benefits from a debt market level. Another commenter felt HUD/PAE will have sole responsibility restructuring. To the extent owners can the final rule should indicate that for determining what steps an owner opt out from further project-based owners will not be required to accept must take to cure any violations. assistance, they do not need the project-based or tenant-based assistance HUD response: Section 401.408(i) of restructuring (and would not be subject if the final rule does not allow for the final rule makes it clear that Use to the Use Agreement). payment to the owner of market rents. Agreements will include the parties 2. Use Agreements should last This commenter also argued that, listed in that paragraph as third party ‘‘exactly’’ 30 years—not ‘‘at least’’ 30 because LIHTC restrictions are not beneficiaries. Further, a Use Agreement years. imposed by MAHRA, imposing such must require the party bringing Four commenters were concerned restrictions could cause owners to evict enforcement action to give the owner about the requirement that the Use tenants with higher incomes or hold notice and a reasonable opportunity to Agreement be in effect for ‘‘at least’’ 30 units vacant for unreasonable time cure any violations. The PAE or HUD years. These commenters recommended periods. The commenter suggested less will typically be the entity bringing that the final rule require the Use restrictive affordability requirements. If enforcement action, but this provision Agreement to be in effect for ‘‘exactly’’ LIHTC requirements are maintained, has been specifically crafted to allow 30 years because the interim rule this commenter felt that owners should other parties to bring action. This will language might allow PAEs to specify have the choice of affordability mix ensure that other interested parties such terms greater than 30 years options. as tenants are able to protect their indiscriminately. One commenter HUD response: When fewer than 20 interests in cases where a project is not thought all Use Agreements should last percent of the units in a project receive covered by a PRA, or where HUD or the for 30 years except where unusual project-based assistance, the Use PAE is unable or unwilling to take conditions specified in the Operating Agreement will have the practical effect action. In the rare case where HUD Procedures Guide are present and the of requiring the lesser of market rents perceives clear abuse by a third party PAE decides that a longer term is (as a result of the operation of the local that is not exercising enforcement rights consistent with statutory intent. rental market) or the LIHTC rents (as in good faith, HUD may exercise its Another commenter felt that a PAE’s specified in the Use Agreement). right to modify a Use Agreement to discretion to use terms longer than 30 Further, the owner has the option of require the third party to obtain prior years should be tightly overseen by selecting the tax credit standard (20 HUD approval for any enforcement HUD. percent of the units with rents action concerning the Use Agreement. HUD response: MAHRA requires a affordable at 50 percent of median 6. Pre-existing Use Agreements should Use Agreement term of at least 30 years. income, or 40 percent of the units with be preserved. The decision to require a longer term rents affordable at 60 percent of median Two commenters suggested that a should be left to the PAE as the party income) which yields the highest net Mark-to-Market Use Agreement should most familiar with particular operating income. For the inventory of be subject to any pre-existing Use circumstances that may make longer projects with above-market section 8 Agreements, which should be restriction periods appropriate. rents, the LIHTC rents are often greater preserved. One of these commenters felt 3. If no section 8 funds are available, than market rents. In cases where the that the final rule should make clear owners should be required to charge LIHTC rents are less than market rents, that the restructuring process should not restructured rents or below-market the impact on the supportable secured be used to lessen any previous LIHTC rents. debt (and thus the tax consequences of affordability restrictions. Two commenters felt that owners the restructuring) will typically be HUD response: Restructuring under should be required to charge the lesser nominal. A less restrictive affordability the Mark-to-Market Program will not of restructured rents or Low Income requirement is not appropriate. automatically relieve a project of any Housing Tax Credit (LIHTC) rents 5. Enforceability of Use Agreements existing Use Agreements and (which may be below-market) in the and notice. affordability restrictions. If an owner event that section 8 funds are not Two commenters felt that tenants and considers that existing agreements and available in the future. tenant organizers should always be affordability restrictions are based on HUD response: The owners of given the right to enforce Use section 8 terms and policies no longer properties subject to Use Agreements Agreements, which the interim rule did authorized by Congress, or will interfere

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00010 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15461 with achieving the objectives of a extend an expiring contract, subject to meet the following test (which we will proposed Restructuring Plan, the owner the availability of amounts provided in call the ‘‘positive social assets’’ test in should bring this concern to the PAE’s advance in appropriations Acts. In the following discussion): attention so that the PAE can consider addition, Pub. L. 106–74 amended [The projects] must be determined by the proposing appropriate changes for section 524 of MAHRA (which applies PAE to be positive social assets in the HUD’s approval. to contract renewals after a community whose operating expense levels 7. Use Agreement should be Restructuring Plan is in place) to make and lack of debt service capacity are not a subordinate to conventional loan. renewals mandatory upon owner function of bad management. They should be One commenter felt that if the request, also subject to appropriations. unique, appropriately situated, and restructured first loan is refinanced with MAHRA does not expressly require that affordable housing, with no other comparable a conventional loan, then the Use the offer be in accord with the contract housing alternatives available in the submarket. Agreement should be subordinate to this renewal terms provided in the approved loan (i.e. the Use Agreement should not Restructuring Plan and implies that the Exception rents are based on the survive foreclosure). This commenter level of appropriations may not always factors listed in section 514(g)(3) of argued that most conventional lenders permit such an offer to be made. There MAHRA. They include debt service will refuse to refinance mortgages is no guarantee of, and the Department (allowed in the interim rule only on the subject to Use Agreements if the does not have the authority to obligate, second mortgage under § 401.461 or to agreements survive foreclosure. section 8 funds unless Congress support a rehabilitation loan included HUD response: Section 514(e)(6) of appropriates the funds. Section 515(a) in the Restructuring Plan), project MAHRA requires a Use Agreement to protects the owner by only requiring the operating expenses, a PAE-determined apply for at least 30 years and any owner to accept the renewal offer if the allowance for a reasonable rate of return subordination that could lead to offer in ‘‘in accordance with the terms to the owner, contributions to adequate termination of the Use Agreement upon and conditions specified in’’ the reserves, and other necessary project foreclosure of a conventional loan Restructuring Plan. If the section 8 operating expenses as determined by the would conflict with this MAHRA contract terms are offered under terms PAE. requirement. less favorable than those which would Section 401.412 concerns adjustment 8. Renewal contract terms must result by application of the OCAF as of restructured rents by an operating remain materially the same. provided in the Restructuring Plan (to cost adjustment factor (OCAF) as Five commenters said that renewals of required by section 514(e)(2) of project-based contracts should be the extent, if any, permitted by MAHRA section 524), the owner will not be MAHRA. A Restructuring Plan will required to contain terms that are provide for adjustments using OCAF materially similar to the initial post- required to accept the renewal offer, but the project will remain subject to the under this section, but this section will restructuring contract. Two commenters not prevent HUD from offering renewal argued that unless this is done, general Use Agreement for the remainder of its term. with rent levels higher than those partners will have difficulty resulting from OCAF adjustments, if recommending the restructuring H. Sections 401.410–.412, Determining legally authorized. transaction to limited partner investors. and Adjusting Rents Under One commenter suggested that the final Restructuring With Project-Based Summary of Comments rule make it ‘‘crystal clear that HUD Assistance 1. Difficulties in determining cannot decrease the benefits to the Summary of Sections comparable market rents. owner upon subsequent renewal offers.’’ One commenter noted that there are Another commenter felt that Use Section 401.410 provides guidance to unlikely to be comparable unassisted Agreements should contain conditions the PAE for determining comparable projects in low-income areas. Another for automatic expiration of the market rents, as well as for an owner noted that, for projects with special agreement should there be changes to making a preliminary determination of needs populations (elderly, disabled), the agreement that are detrimental to the eligibility under § 401.99(a)(1). comparisons must take special features original terms and conditions of the Comparable market rents are rents and services into account. restructuring plan. One commenter felt charged for ‘‘comparable properties’’ as HUD response: HUD agrees that that an owner’s obligation to renew defined in section 512(1) of MAHRA. determining comparable market rents section 8 assistance should terminate if The determination of whether rents in a will be problematic in some cases. HUD/PAE fails to renew for any year. project are comparable to market rents Section 401.410 (both the final rule text The same commenter felt that under the considers only the rents for units in the and the interim rule preamble final rule there should be no project that receive project-based explanation) address this issue with a circumstances, other than unavailability assistance. methodology consistent with express of funds or HQS violations by the Section 401.411 provides for budget- Congressional intent that assisted owner, under which HUD/PAE may based ‘‘exception rents’’ (not to exceed projects not be used for rent refuse to renew project-based section 8 120 percent of Fair Market Rent without comparables. assistance. Another commenter felt that a HUD waiver), instead of comparable 2. ‘‘Blended’’ rents considering HUD should guarantee that section 8 market rents, if the PAE determines that unassisted but restricted units. funds would be available in the future the housing needs of the tenants and the Three commenters wanted the final as long as necessary to assure community cannot be adequately rule to clarify the treatment of projects affordability. This commenter felt that addressed through a Restructuring Plan for which unassisted units with long- imposing use restrictions would be that provides for comparable market term affordability restrictions (such as meaningless without a guarantee of rents, and if the project would be a in ELIHPA/LIHPRHA preservation section 8 funds for the project. negative Net Operating Income (NOI) projects) considered together with HUD response: Under section 515(a) project at comparable market rents. The assisted units with above-market rents of MAHRA, either the Secretary or a preamble to the interim rule—but not would result in a ‘‘blended’’ average PAE acting under a contract with the the rule itself—stated that in order to rent not exceeding market comparable Secretary is required to offer to renew or receive exception rents, projects must rents. The commenters argued that such

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00011 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 15462 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations projects should qualify as projects with broad spectrum of interest groups, and restructuring due to the poor condition rents not exceeding market comparable convened a focus group on November of the project. In order to receive rents and, therefore, should be eligible 18, 1998, in part to discuss the matter. exception rents, the PAE must make a for contract renewal as exception We are concerned that there appears to determination that the housing needs of projects under § 402.5(a)(2). This could have been widespread confusion the tenants and the community cannot enable the projects to achieve sufficient regarding HUD’s intent in including the otherwise be adequately addressed. In net operating income to achieve owner ‘‘positive social assets’’ test in the making this determination, the PAE returns anticipated in preservation interim rule preamble. By including the should ensure there are inadequate program Plans of Action. language in the preamble, and not in the comparable housing alternatives HUD response: HUD will only rule itself, HUD tried to provide available in the sub-market, so that the consider units assisted under the additional help to the PAEs that must outcome without project restructuring at expiring section 8 contract in apply the actual statutory test for exception rents would be displacement determining whether the aggregate rents exception rents (which also appears in of those tenants who would experience are higher or lower than market. the rule itself): that ‘‘the housing needs difficulty in finding comparable Preservation projects with approved of the tenants and the community housing, such as the elderly, persons plans of action under ELIHPA or cannot be adequately addressed’’ with disabilities, and large families. LIHPHRA are no longer eligible for the through comparable market rents. In We agree that rural and inner city Mark-to-Market program. Please see the other words, if housing needs can be projects in certain jurisdictions will be related response under Section II.A.3.b. adequately addressed through a more likely to need above-market of this preamble. Restructuring Plan with comparable exception rents, due to typically low 3. Objections to ‘‘negative NOI market rents, the PAE may not consider market rents relative to operating project’’ and ‘‘positive social asset’’ exception rents. expenses. The rule makes provision for requirements for exception rents. But equally important, exception PAEs to request a waiver (based on Many commenters objected to either rents also cannot be approved if a special need) of the limitations on the § 401.411 concerning when to use Restructuring Plan with exception rents number of units that can receive such exception rents, or to preamble would not adequately address tenant rents. Restricting exception rents to discussion supplementing that section and community housing needs. The projects with negative NOI, or regarding negative NOI projects and the statute demands more than simply a rehabilitation needs in excess of that ‘‘positive social assets’’ test. One negative test regarding use of which can be supported by new commenter objected to the limitation of comparable market rents: the PAE must financing at market rents, is consistent exception rents to negative NOI projects, be convinced that (rent issues aside) the with MAHRA. stating that Congress included exception project is worthy of restructuring in lieu The final rule provides for exception rents for cases such as rural projects and of some other approach to meeting rents adequate to pay debt service on inner cities or special populations tenant and community needs. As we the second mortgage and the other items needing budget-based rents and that attempted to suggest in the interim rule detailed in section 514(g)(3) of MAHRA. requiring no debt service would make preamble, this necessarily requires that Because of a recent amendment to the ‘‘rate of return’’ factor in section a project have certain positive attributes MAHRA in Pub. L. 106–74 that 514(g)(3) of MAHRA a ‘‘nullity’’. One that justify continued approval of rents authorizes full payment of claims, there commenter stated that exception rents that exceed the market. Since many is no longer any need for a Restructuring must have a second mortgage debt commenters viewed the interim rule Plan to provide for any nominal service component adequate to support preamble as an attempt to graft onto restructured first mortgages. Also, see ‘‘reasonable likelihood of repayment’’ MAHRA new considerations that were Section II.K.6. of this preamble for a requirement to avoid adverse tax foreign to the statutory provisions, we separate discussion of how return to consequences to the project owner, consider it advisable not to repeat the owner is considered in determining while another suggested that all ‘‘positive social assets’’ test as stated in exception rents. The Operating LIHPRHA projects with Plans of Action that preamble. PAEs must, however, be Procedures Guide specifies that the should be treated as exception rent aware of the need for meeting all aspects rents should be set to estimate the projects, even without negative NOI, if of the statutory objective that we have owner return that would be realized if the statutory test is met. discussed above. there were a positive but nominal NOI, Eleven commenters objected to the In particular, PAEs must recognize and to make payments on the new positive social asset test in its entirety that exception rents should never be second mortgage. The second mortgage on grounds that it is unnecessary and approved if the project would otherwise will be sized based on the amount that not provided for in MAHRA. Two of be rejected for restructuring under can reasonably be expected to be these commenters also objected section 516 of MAHRA because of amortized by 75 percent of the specifically to the statement that serious ownership or physical condition anticipated net cash flow (i.e., three exception rents should not derive from problems that cannot be remedied. A times the owner’s estimated return). A bad management. Another commenter PAE’s recommendation of exception third mortgage may be required to the who objected to the positive social asset rents for a project presumes that, at a extent the claim paid by HUD under test said that, if it were to be included, minimum, the project and owner have § 401.471 exceeds the amount of the there must be clear guidance and been determined and confirmed eligible second mortgage. objective standards in the Operating for restructuring as required by 4. Exception rents should be Procedures Guide on how it would be § 401.403. Thus, exception rents should alternative to FMR. applied. Another objected to routine not be approved for projects that are One commenter said that the rule application of the test but felt it could determined by the PAE to have an should let a PAE choose exception rents be appropriate for a determination about irreversible detrimental impact in the under § 401.411 instead of using 90 waiving the 120 percent limit. community, for reasons such as percent of fair market rents (FMRs), HUD response: HUD gave particular unacceptable management practices that which the rule identifies as a last resort consideration to this issue in light of the adversely impact the community, or are under § 401.411(d). The commenter felt volume of comments received from a deemed ineligible for a mortgage that FMRs are often not useful.

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HUD response: To the extent the PAE the rule. They remarked that it should HUD response: We have removed the is unable to develop a comparable rent not be too large to pick up local reference to negative OCAF in response using the methodology outlined in fluctuations in taxes, utilities, etc. to section 531(a) of Pub. L. 106–74. § 401.410, 90 percent FMR may be used HUD response: A HUD analysis of 10. Appeals of OCAF. (as a last resort) as a proxy for operating cost data for FHA-insured One commenter wanted an owner comparable rent as provided by statute. projects showed that their expenses right to appeal OCAF determinations. Exception rents for projects undergoing could be grouped into nine categories— HUD response: OCAF is not Mark-to-Market restructuring are limited wages, employee benefits, property determined on a case-by-case basis and by statute to cases where the taxes, insurance, supplies and adjustment of OCAF through appeal for comparable rent (or 90 percent FMR) is equipment, fuel oil, electricity, natural a particular project is not appropriate. inadequate to meet expenses with no gas, water and sewer. States are the However, the commenter probably was debt service or where the supportable lowest level of geographical aggregation interested in the ability to appeal the debt is insufficient to fund short term at which there are enough projects to rent adjustment that resulted from use rehabilitation needs. permit statistical analysis. Operating of OCAF. OCAF is used for rent 5. Limitation of exception rents to 120 expense-related data on a more adjustments for projects with and percent of FMR. localized basis are not available on a without Restructuring Plans, but HUD A commenter characterized this 120 current or consistent basis. HUD’s retains the discretion to use a budget- percent limit as ‘‘arbitrary’’ and said OCAF calculations use data series based rent adjustment instead at the that ‘‘waivers may become the rule’’. prepared by the U.S. Bureau of Labor request of the owner. The statutory HUD response: This limit is specified Statistics, the Bureau of the Census, and reference to using OCAF in Restructuring Plans, and the by section 514(g)(2)(A) of MAHRA. the Department of Energy. Owners may corresponding regulatory provision in 6. Need to define ‘‘community’’. apply for a budget-based rent review in § 401.412, does not preclude HUD from One commenter focused on the the presumably unusual case that approving a larger budget-based definition of the ‘‘community’’ impacted application of the OCAF does not increase when appropriate even though by a failure to allow exception rents, address unexpected project specific a project is under a Restructuring Plan. and urged HUD to consider supply of fluctuations. We expect, however, that affordable housing in an entire An owner may request a budget-based such fluctuations and other temporary rent adjustment if the owner can jurisdiction, not just a neighborhood. constraints on net operating income will HUD response: HUD will rely on the demonstrate that available operating be covered by excess debt service PAE’s judgment to make this revenues are insufficient to maintain a coverage. determination. project. The published OCAF factors are 7. Other factors to be included in b. Excluding debt service. Two based on independently produced expenses. commenters objected to excluding debt estimates of changes in major costs Commenters had suggestions for service from the expenses to be adjusted items, and should prove adequate in expenses to consider when determining by OCAF. One said the exclusion will most projects. If rent adjustments the budget-based exception rents. In make projects increasingly vulnerable to through use of OCAF are inadequate, addition to the comments noted above periods of low occupancy and less however, budget-based review provides regarding mortgage debt and return to likely to support a second mortgage, the most relevant basis for reviewing the owners, two commenters stated that the requiring some other means to boost adequacy of overall project funding. return to an owner anticipated in a rents; another said the exclusion will decrease attractiveness of the project to I. Sections 401.420–.421, Project-Based LIHPRHA Plan of Action should be Assistance or Tenant-Based Assistance? factored into exception rents, and one investors who want increase over time commenter suggested expenses should in debt service coverage. Summary of Sections HUD response: Congress’ use of the include health and social services for These sections implement section term ‘‘Operating Cost Adjustment elderly/handicapped projects. 515(c) of MAHRA, which: (1) Provides Factor’’ (OCAF), which has historically HUD response: Project operating for mandatory renewal of project-based been applied only to operating expenses may include social services assistance in a Restructuring Plan for (such as for elderly/handicapped service expenses, rather than the term ‘‘Annual projects in tight rental markets and coordinators, or other Departmental Adjustment Factor’’ (AAF) suggests that elderly or cooperative housing projects; initiatives such as Neighborhood Congress expected the Department to and (2) requires the PAE to develop a Networks) to the extent they have been not apply the increase to the entire rent. Rental Assistance Assessment Plan for approved by the Department, and/or Debt service payments remain constant, any other project to determine whether have been determined by the PAE to be so it is not appropriate to apply an assistance should be renewed as project- efficiently managed and unique and inflation factor to the debt service. The based assistance or whether some or all necessary for the project’s continued debt service component of the effective of the assisted units should be operation as an affordable housing gross income is the only portion that converted to tenant-based assistance. resource. LIHPRHA projects with will not be inflated by the OCAF; the The Plan is developed by assessing the approved plans of action are no longer Reserve for Replacement deposits and impact on eight specific areas described eligible for the Mark-to-Market Program. the portion of the debt service coverage in section 515(c)(2)(B) of MAHRA. 8. Determination of OCAF. estimates for owner return will increase Section 515(c)(2)(C) of MAHRA requires a. General. Three commenters said and presumably remain constant with periodic reporting by the PAE to HUD that HUD should base OCAF on inflation. on certain matters concerning the form inflation indicators published outside of 9. Negative OCAF. of assistance; this requirement is also HUD; while another commenter Three other commenters objected to included in the rule. ‘‘applauded’’ HUD for restricting the reduction of rents by using negative increases to documented operating cost OCAF. Two of them questioned the Summary of Comments increases. Two others noticed that the legality of rent reductions in light of 1. What vacancies should be geographical area considered when section 8(c)(2) of the United States considered in determining the presence determining OCAF is left undefined in Housing Act of 1937. of a tight market?

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Six commenters objected to a PAE assistance and projects that retain items detailed in section 515(c)(2)(B) of considering all kinds of vacant units project-based assistance despite the MAHRA. Consistent with the when determining the presence of a general support by the tenants to Conference Report for MAHRA, the PAE tight market. These commenters felt that convert to tenant-based assistance. should apply its knowledge of the local a PAE should consider only vacancies Under § 401.200 of the final rule, non- market conditions, and consider the in comparable units in standard public PAEs will be required to form a various factors, with no one factor condition (neither luxury nor partnership relationship with HUD if no weighted more heavily than others substandard) with rents not exceeding other public entity is involved. (Note except to the extent appropriate on a the payment standard for tenant-based that the final rule omits the requirement project-by-project basis. We agree with assistance. Four commenters objected to in interim rule § 401.200 that the the commenters that there may be a considering vacant units in the entire partnership relationship meet all legal benefit from full presentation of the market only and indicated that a PAE requirements for a partnership.) statutory items to be considered in a should determine whether the vacancy 4. Requirement for semi-annual Rental Assistance Assessment Plan, and rate in the sub-market or neighborhood reporting in § 401.421(d). we have made this change in the final is at or below six percent. Another One commenter objected to what the rule. (See Section II.W.5. of this commenter said that in determining commenter saw as a requirement for preamble for a general discussion of whether a project was predominantly ‘‘continuous’’ reporting rather than including statutory language in the final elderly, individual phases should be ‘‘one-time’’. Another asked how much rule.) considered if the project was developed data gathering/tracking of tenants is 6. Must all units be assisted under a in phases. required by the PAE, and at what cost? Restructuring Plan? HUD response: Consistent with HUD response: The reporting One commenter said the interim rule Congressional intent, as indicated in the requirement is for semi-annual reports was ambiguous on whether a Conference Report accompanying and is not continuous. The amount of Restructuring Plan must commit an MAHRA, the tight market ‘‘safe harbor’’ data gathered by the PAE from the owner to putting 100 percent of the for project-based assistance will be tenants will be detailed in the Operating units in a project under project-based or applied to metropolitan areas with Procedures Guide. Reimbursement of tenant-based assistance, and suggested vacancy rates less than or equal to 6 costs for gathering such information that 20 percent of the units could be percent. HUD agrees that comparable from tenants will be addressed in the reserved for unassisted ‘‘market rate’’ units in the relevant affordable housing PRA. tenants. sub-market should be considered by the 5. How should the final rule handle/ HUD response: Tenants residing in all PAE in the context of the Rental present factors to be considered in the previously-assisted units will have the Assistance Assessment Plan developed Rental Assistance Assessment Plan? opportunity to receive either tenant- Four commenters wanted HUD to under § 401.421. The PAE has flexibility based or project-based assistance. clarify the weighting of the statutory in this decision on a project-by-project Unassisted market rate tenants may be factors and to give more guidance to the basis, and is expected to apply its served to the extent a project converts knowledge of the local market and use PAEs. Three commenters said that all statutory factors should be set forth in to tenant-based assistance and tenants its judgment in recommending the type move out, subject to (1) the Use of rental assistance. full in the final rule, instead of only stating the factor regarding cost Agreement requirements that the 2. Effect of sale to cooperative. minimum number of units be reserved One commenter inquired whether comparison. Two commenters felt that the rule should state a presumption in to meet low income housing tax credit project-based assistance was mandated rent and income requirements and (2) if a sale of the project to a cooperative favor of project-based assistance in order to recognize the cost to tenants of the prohibition in § 401.556 of the final is planned. rule (§ 401.483 of the interim rule) HUD response: Yes, project-based conversion. One commenter indicated that the factor regarding ability of against refusal to lease units to assistance is mandated if the project is prospective tenants solely on the basis sold to a ‘‘nonprofit cooperative tenants to find housing in the local market should focus on the ability to of their status as section 8 voucher ownership housing corporation or holders. nonprofit cooperative housing trust’’ use tenant-based assistance effectively (pursuant to section 515(c)(1)(C) of in the neighborhood. One commenter J. Sections 401.450–401.453, Physical MAHRA, referenced in § 401.420(a)). felt that HUD should specify the criteria Condition of Project 3. Limit conversion approvals to that will be applied to determine Summary of Sections public body PAEs. whether a project will receive project or A commenter suggested that only tenant-based assistance. One commenter The Restructuring Plan must provide PAEs that are public bodies should be suggested that conversion to tenant- for rehabilitation of the project able to approve Restructuring Plans based assistance should be approved necessary to achieve the property with conversion to tenant-based only if rehabilitation needs are so standards set forth in § 401.452. (In this assistance. extreme that restructuring is not preamble and in the final rule itself, the HUD response: All PAEs are feasible. term ‘‘rehabilitation’’ is being used in a permitted to develop Restructuring HUD response: The statute and broad sense—comparable to the broad Plans with conversion, if conversion is regulations are both neutral with regard use of the term in section 531 of consistent with the final rule. OMHAR to the type of assistance to be provided, MAHRA—that includes nonrecurring will be required to approve all assuming the project does not meet the maintenance (repairs) and payment into Restructuring Plans, including the type criteria of section 515(c)(1) of MAHRA. project replacement reserves.) The first of rental assistance, regardless of the The interim rule’s specific mention of step is an owner evaluation of the category of PAE. Particular attention the comparative cost of project-based physical condition and rehabilitation will be paid during review of project versus tenant-based assistance as one of needs of the project (including specific transaction, and through the the required considerations was not an consideration of appropriate measures reporting requirements of § 401.421(d), indication that this criterion should be to ensure accessibility). The PAE is then to projects converting to tenant-based weighed more heavily than the other responsible for an independent

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PAE must consider rejecting a request of an owner’s assessment of the physical Numerous commenters were for a Restructuring Plan if the PAE condition of the property will result in concerned about the cost-effectiveness cannot determine that proceeding with delays or disputes. The information determination required by § 401.451(c). restructuring involving rehabilitation is specified in Section 401.450 must be Six commenters were concerned that more cost-effective in terms of Federal presented in a form acceptable to the the cost-effectiveness determination was resources than rejecting the request and PAE. The owner may update and submit not consistent with statutory intent. providing tenant-based assistance for previously-prepared physical Three of these commenters asserted that displaced tenants. Any such inspections. The PAE is required to it was Congress’ intent that all consideration must be made in light of independently evaluate the condition of properties that met statutory criteria and the need to minimize displacement of the property. The Operating Procedures whose owners were willing to tenants and to ensure that there are Guide contains more specific restructure should be restructured, and alternative housing options available in information. expressed concern that the interim rule the community. 2. The final rule should make clear placed cost-effectiveness above all other As provided in section 517(b)(7)(A) of that third-party expenses for physical considerations. At least five commenters MAHRA and § 401.452, the standard for condition evaluation are eligible project said that § 401.451(c) should be rehabilitation to be performed upon expenses. removed from the rule. approval of restructuring is a non- Two commenters suggested that the One commenter felt that the standards luxury standard adequate for the rental final rule should make clear that third- and methodologies used to disqualify a market intended at the original approval party expenses for the owner’s physical project based on cost-effectiveness of the project-based assistance. The condition evaluation are eligible project should be published for public physical needs identified should be expenses. One of these commenters comment. Another commenter felt that those necessary for the project to retain pointed out that a customary fee for a the rule was ambiguous and that, its original market position as an physical condition evaluation is in the without clearly articulated standards in affordable project in decent, safe and $5,000 range. the Operating Procedures Guide, PAEs sanitary condition (including those HUD response: Third party expenses would be faced with a difficult decision improvements the project requires to for physical condition assessments are regarding what represented cost- achieve any rentals in the non- eligible project expenses if cash flow is effective use of Federal resources. subsidized market), resulting in a sufficient to support such an expense. If Another commenter stated that the cost- marketable project that competes on cash flow is not sufficient, the expense effectiveness determination needed to rent rather than on amenities and that is not an eligible project expense and be guided by an objective standard. One meets accessibility requirements. Over will not accrue or carry over. commenter suggested that the PAE the long term, the owner must maintain 3. Lead hazards. should be given other factors to consider the project in a decent, safe, and One commenter felt that the final rule before concluding that a project was sanitary condition based on the housing should explicitly require a lead hazards cost prohibitive, and that there should quality standards identified in § 401.558 analysis as part of the physical be a clear presumption in favor of of the final rule (§ 401.453(a) of the conditions evaluation. preserving the housing stock and interim rule). For a project receiving HUD response: Inspection for lead- maintaining the project-based rental project-based assistance, the applicable based paint will be part of both the assistance. Another commenter felt that standards will be HUD’s Uniform owner’s evaluation and the PAE’s PCA. ‘‘non-economic objectives should take Physical Condition Standards. This requirement is set out more fully precedence’’ as long as a project met Otherwise, local codes will serve as the in the Operating Procedures Guide. If tenant and community housing needs. standards as long as local codes are as such paint is found in a family project Another commenter felt that the rule strict as HUD standards and do not in a peeling condition on chewable must make clear that the impact on severely restrict housing choice in the surfaces, it must be remedied. If found, tenants and the community is an view of the PAE. In addition, any unit but not posing immediate risk, the integral part of the cost-effectiveness in which the tenant receives tenant- owner will be required to submit a determination and not ‘‘some minor, based assistance must comply with the ‘‘Maintenance Plan’’ to prepare for any peripheral consideration.’’ housing quality standards of the section future risks/remediation. Effective HUD response: HUD discussed 8 tenant-based programs. September 15, 2000, all projects with implementation of the ‘‘cost- section 8 project-based assistance will effectiveness’’ test with a broad variety Summary of Comments be subject to HUD’s revised lead-based of interest groups at the focus group 1. Use of FNMA PNA guidelines paint regulations published on meeting on November 18, 1998. While should not be eliminated. September 15, 1999 (64 FR 50140). PAEs are required to ensure that all One commenter strongly believed that 4. Reserve account deposit. repair items are cost-effective, the the elimination of an assessment One commenter felt that owners determination required by this section is presentation format for the owner under should be permitted to assume that their intended to ensure particular scrutiny § 401.450 would lead to unnecessary section 8 contract will be renewed for by the PAE of those projects that have and costly disputes in processing 20 years when calculating the amount of significant rehabilitation needs so that transactions. This commenter’s deposit to the reserve account. other less costly approaches (either in experience in the demonstration HUD response: No assumptions the scope of work or by recommending program led the commenter to conclude should, or need to, be made regarding rejection of the Restructuring Plan) are that failure to prescribe an assessment the continued availability of section 8 considered. We expect the PAE to

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00015 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 15466 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations exercise judgment in balancing the disqualification. This commenter One commenter argued that section 8 competing economic and social suggested that rehabilitation standards units (both project-based and tenant- objectives in every case rather than should be based on actual need based assistance) are already covered by relying on an ‘‘objective’’ standard set determined with tenant assistance. One physical condition standards by virtue by HUD. commenter suggested that the final rule of HAP contracts so that the only effect 6. PAE certification. reference the physical condition of § 401.453 of the interim rule would One commenter felt that it would not standards prescribed in § 401.453 of the be to make the standards applicable to be possible for a PAE to certify the interim rule if a project’s Restructuring non-assisted market rent units. This accuracy and completeness of an Plan is to provide for continued project- commenter suggested that the final rule owner’s evaluation of a project’s based assistance. The commenter should provide that HQS will be physical condition. The commenter was recommended that rehabilitation for applicable to assisted units in concerned that requiring a PAE to these projects should be sufficient to restructured properties through the certify the owner’s evaluation would meet the Uniform Physical Conditions terms of assistance contracts and that put the PAE in an untenable position Standards in 24 CFR § 5.703. One the local housing code should be the because physical condition assessment commenter felt that a lender who applicable standard for non-assisted is often complex and ‘‘ultimately not refinanced the first mortgage a units. empirical.’’ The commenter suggested conventional loan should be able to HUD response: Section 514(e)(5) of that the PAE merely ‘‘confirm that the require whatever rehabilitation the MAHRA does not permit non-assisted owner’s plan reasonably reflects their lender considers appropriate. In units to be excluded from the physical own findings and they believe the needs addition, this commenter felt that HUD condition standards. This is a are addressed cost-effectively.’’ should indicate whether rehabilitation reasonable result because the entire HUD response: The rule and MAHRA is supposed to address issues raised in project benefits from a mortgage both require a PAE to certify an owner’s the PCA or satisfy the physical restructuring. In keeping with 24 CFR evaluation of project physical condition. conditions standards in § 401.453 of the The PAE should give the owner the interim rule. parts 5.703 and related changes in other opportunity to revise the owner’s HUD response: The final rule requires regulations, this rule recognizes that the evaluation after consultation regarding restoration suitable for the market for separate section 8 HQS has been any disputed work items or costs. which the project was originally eliminated for projects with project- Alternatively, the PAE must recommend approved. Thus, materially diminished based assistance. rejecting the Restructuring Plan. physical standards would not be K. Sections 401.460–401.471, Mortgage OMHAR will be responsive to PAE acceptable as part of a Restructuring Restructuring and Payment of Claims questions concerning rehabilitation Plan. The PAE’s inspector must ensure standards; however, it is a PAE’s that the project meets the applicable Summary of Sections responsibility to bring its professional physical condition standards, but judgment to bear as it evaluates the immediate threats to health and safety Section 401.460 explains the owner’s proposal, the PAE’s are not eligible work items that may be standards for restructuring with a independent third party report, and deferred until completion of the modified or refinanced first mortgage. tenant and local community input when Restructuring Plan. Rather, they must be The first mortgage will be a fully developing the Restructuring Plan. corrected immediately and, since the amortizing, level payment mortgage 7. Property standards for existence of these matters violates the with a principal amount sustainable at rehabilitation. Regulatory Agreement, the PAE must rent levels that do not exceed the lower One commenter felt that ‘‘lowering evaluate the project’s eligibility in of section 8 rents allowed under the the bar to modest competition’’ by accordance with § 401.403(b)(2)(ii). The Mark-to-Market Program or rents effectively accepting diminished repair work items should address the permitted under the Use Agreement physical conditions would have a issues raised in the PCA. The under § 401.408. The PAE should take negative impact on quality-of-life and rehabilitation standard requires a into account any need for financing public relations because eligible project that can compete in the needed rehabilitation when sizing the projects—while not luxurious—may marketplace. To the extent the market first mortgage and determining the compare favorably to other conventional requires a particular amenity, it should appropriate amount of mortgage properties in the area. Another be added to enable the project to insurance payment by HUD. The commenter suggested that this ‘‘non- compete on the basis of rent. We expect monthly payment for the first mortgage luxury’’ standard be removed from the the PAE to exercise professional under the Mark-to-Market Program will final rule because it is not effective judgment and to apply their knowledge not exceed the current first mortgage guidance (amenities affect rent and vice of local conditions in determining if the payment. Interest rates and other terms versa and what is an amenity in one lack of an amenity would render a must be competitive in the market, with market is a marketing necessity in property unmarketable. The PAE is any fees and costs above normal another) and the standard would be required to independently evaluate the processing fees to be paid by the owner cited to discourage rehabilitation to a physical condition of the project, from non-project sources. Due to the level that might attract a mixed-income including evaluating the accessiblity of significant potential for conflicts of occupancy. Another commenter felt that the project to persons with disabilities, interest if the PAE provides the first the standard might not be consistent and to solicit tenant and local mortgage financing, HUD will apply an with the legislative goal of assuring that community comments. The PAE can exceptionally high level of review projects be able to function in the recommend that OMHAR approve whenever this is proposed as part of the marketplace without assistance. lender rehabilitation requirements so Restructuring Plan, with special HUD One commenter felt that calling for long as they are consistent with the approval needed for any PAE risk- the ‘‘least costly rehabilitation plan’’ requirements of the Restructuring Plan. sharing under 24 CFR part 266 for a may cause owners to purposefully 8. Physical condition standards refinanced first mortgage. HUD will underestimate their physical condition should not apply to non-assisted market approve risk-sharing when appropriate assessments in order to avoid rent units. in accordance with Pub. L. 106–74.

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Section 401.461 provides standards acceptable so long as the financing is fees, etc., for conventional loans on the for the new HUD-held second mortgage competitive. See the discussion of conventional market. which is needed whenever the insured return to owner at Section II.K.6. HUD response: or HUD-held mortgage debt is written Preservation projects are no longer • The interest rate and other terms of down through payment of a section eligible for the Mark-to-Market Program. any refinancing are expected to be 541(b) mortgage insurance payment by b. Sizing the first mortgage. We competitive. • HUD. The second mortgage is limited to received other comments relating to Processing costs must be reasonable an amount that the PAE reasonably sizing the first mortgage. Two and customary as determined by the expects to be repaid by the owner, and commenters objected to sizing on the PAE (and the lender of any new may not exceed the difference between basis of LIHTC rent levels if lower than financing); examples include title and the first mortgage before restructuring closing costs, and loan origination fees. comparable market rents. Two others • and the modified or refinanced first wanted HUD to state a debt service It is unlikely that OMHAR will mortgage after restructuring. HUD may coverage ratio (DSC) in the rule: One approve above-market terms for any require a HUD-held third mortgage if the suggested 1.20, the other suggested at financing. To the extent the existing amount of a partial claim under least 1.25 for conventional loans. lender is unable to provide competitive § 401.471 exceeds the principal amount Another said the DSC should be terms, the owner should pursue of the second mortgage. The second adequate to permit sale of the mortgage alternative financing sources. • The Operating Procedures Guide mortgage will bear simple interest of at at or very near ‘‘par’’. A commenter said requires documentation that the terms least 1 percent, but no more than the that a restructuring plan for a project are competitive within a reasonable applicable Federal rate determined by with an existing insured second should the Department of the Treasury. The range. write the second mortgage off • Balloon payments are not term will be concurrent with the term of completely before any restructuring of the modified or refinanced first acceptable. The modified or refinanced the insured first mortgage. first mortgage must be fully amortizing mortgage or, if the existing first HUD response: To the extent the mortgage is completely paid off, the through level monthly payment). The LIHTC rents are lower than comparable PAE may consider shorter amortization term will be set by HUD. The mortgage market rents, the first mortgage should will become due and payable as periods if warranted by the condition of be sized accordingly. While the section the property and availability of provided in § 401.461(b)(3). At least 75 8 assistance remains in place, all extra percent of the project’s net cash flow financing. net cash flow will be applied to 3. Refinancing. after payment of first mortgage debt payment of the second mortgage so that service and operating expenses must be One commenter said that the existing the owner does not benefit unduly from lender must be given a reasonable used to pay principal and interest on the this sizing of the first mortgage based on second mortgage. The rest of the cash opportunity to refinance before another LIHTC rents. The owner or PAE could lender is involved. Two other flow may be paid to an owner who (with lender approval) request a waiver meets certain property management and commenters urged HUD to support the to allow a compensating decrease in the use of the section 223(a)(7) program; physical condition standards. HUD will debt service coverage ratio in such consider modification or forgiveness of suggestions included allowing OMHAR cases. A specific DSC is not appropriate rather than FHA to handle processing the second mortgage if: (1) The project for the final rule; guidelines are has been sold or transferred to a priority and providing priority or incentives for contained in the Mark-to-Market section 223(a)(7) refinancing to finance purchaser under § 401.480; and (2) HUD Program Operating Procedures Guide. determines that modification or rehabilitation. Two commenters object Generally we would expect a DSC of 1.2 forgiveness is necessary for to requiring special HUD approval for but a higher ratio may be appropriate for recapitalization to preserve the project PAE risk-sharing as unnecessary and smaller loans or to facilitate as affordable housing. leading to delays. Finally, a commenter conventional financing. said that a small (under $300 thousand) Summary of Comments 2. First mortgage terms and first mortgage, even if supportable by 1. How should net operating income conditions. rents, would be difficult to obtain on available to pay the first mortgage be We received the following competitive terms so that a refinancing determined? miscellaneous comments on first of a small first mortgage should not be a. Expenses. Commenters offered mortgage terms and conditions: required to take out the lender who will ideas about the expenses to be paid from • The interest rate and DSC should be not accept a partial payment of claim. operating income before determining adequate to permit sale at or very near HUD response: The final rule requires ‘‘net’’ operating income for this section. ‘‘par’’. the owner to contact the mortgagee prior One commenter listed a number of • ‘‘Normal processing costs’’ needs to to seeking other sources of funding for lender-required costs that should be be clarified (with examples of costs that the Restructuring Plan. This issue is allowed in the case of conventional should be included). addressed in more depth in the refinancing. Three commenters felt that • The PAE should be able to continue Operating Procedures Guide and other a reasonable rate of return to the owner with existing above-market terms if the guidance from OMHAR. The issues needed to be considered; one of them lender requires this as a condition of raised by the suggestion supporting the said it should not be below the return accepting a partial claim or if the PAE use of the section 223(a)(7) program already allowed. Three commenters said thinks this is the best approach. involves delegations of authority within that the owner compensation provided • A PAE certification of HUD and will be addressed in the under a plan of action for preservation ‘‘competitive’’ terms should be Operating Procedures Guide. We are projects needed to be considered. conclusive, or a mortgagee certification neutral as to the source of new financing HUD response: Reasonable expenses should be conclusive absent bad faith or so long as the terms are competitive, to meet requirements of the lender manifest error. except to the extent that section 219 of (whether the first mortgage is FHA- • HUD should allow balloon loans as Pub. L. 106–74 requires HUD to use insured, HFA-originated with risk- conventional loans and base risk-sharing. Questions involving PAE sharing, or conventional debt) will be competitiveness of rates, processing risk-sharing raise conflict of interest

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We anticipate the • There are adequate safeguards in (particularly those with large decreases market will set the terms of new the final rule to guard against unfair in rents) will have tighter operating financing, in part dependent on the size acceleration of a second mortgage. budgets and thus will require larger debt of the loan, and acknowledge that a Safeguards include a requirement of service coverage ratios to compensate. good faith effort by the owner to obtain materiality for violations (now included Section 517(a)(3) of MAHRA restricts new financing on reasonable terms may expressly), and notice and an the owner’s return to a maximum of 25 not succeed. A PAE then may consider opportunity to cure prior to acceleration percent of Net Cash Flow. There is no a Restructuring Plan with full payment of a second mortgage. Additionally, the statutory provision for additional return by HUD of a section 541(b) claim and rule provides an administrative dispute to an owner, even for exception rent an increased second mortgage. However, and appeal procedure for any projects or other projects that may it is not acceptable to allow above- acceleration decision (unless previously had an approved rate of market rents to support the existing debt acceleration is based on payment or return that would permit larger due to a perceived difficulty in termination of the first mortgage, or payments to the owner. Section refinancing. unauthorized sale and assumption, as 514(g)(3)(D) of MAHRA provides for an provided in MAHRA). allowance for a reasonable rate of return 4. Second mortgage terms and • conditions. Alteration of the second mortgage to the owner when determining the a. Interest rate. We received the term would require an amendment of level of exception rents, but we do not following suggestions regarding interest the statute. HUD has no basis for consider this an allowance for an on the second mortgage: seeking such an amendment at this additional owner return beyond that • Clarify in the Operating Procedures time. permitted for non-exception rent • The Operating Procedures Guide Guide that the interest rate should be projects. The setting of rents above will provide a standard form for second low enough so that an owner is clearly market will provide for the return mortgages. The terms of the second likely to repay; the interest rate should permitted by section 517(a)(3) mortgage are largely set by MAHRA and be 1 percent unless HUD requests (assuming the owner’s operation of the are detailed in the final rule and the otherwise (or 0 percent if the aggregate project is efficient so that Net Cash Flow Operating Procedures Guide. The loan amount exceeds 100 percent of meets or exceeds the underwriting second mortgage is different in nature value). estimate.) from the first mortgage and will not be • Permit a 0 percent rate since it is While the typical return permitted by identical to the first mortgage. a Restructuring Plan will not be less not ruled out by the Revenue Ruling. 5. Forgiveness/modification of second than 25 percent of the Net Cash Flow, • Set standard at 0 percent except mortgage. the PAE will retain discretion to when that would lead to payoff of the Two commenters said that negotiate the amount on a case-by-case HUD-held second and third mortgage in forgiveness/modification should be basis. Further, to the extent the potential less than 10 years. available for a priority purchaser for LIHTC rents in the absence of HUD response: For interrelated legal whether or not the property has been project-based assistance constrains net and policy reasons, we have elected to disqualified for restructuring under operating income for underwriting retain the 1 percent minimum interest existing ownership. One commenter purposes, the project will effectively be rate. Our interpretation of section argued that forgiveness should also be oversubsidized during the time project- 517(a)(2) of MAHRA is that some allowed for a limited partnership based section 8 assistance is provided. interest is required to be charged on the purchaser controlled by priority The portion of Net Cash Flow to pay the second mortgage. The minimum rate purchaser. second mortgage must be increased that we have selected is nominal and HUD response: Section 401.461(b)(5) accordingly. HUD or the PAE will should not cause undue burden on the of the final rule allows modification or require the project meet management mortgagor. Additionally, the factual forgiveness of the second mortgage if and physical condition standards as a premise of IRS Revenue Ruling 98–34 certain conditions are met. This condition of distribution of the owner’s includes a statement that the new availability of modification or portion of the net cash flow. Tenants second mortgage ‘‘provides for interest’’. forgiveness is not dependent on the (and other interested parties) can b. Other second mortgage terms and existing owners being disqualified from address their concerns to HUD or the conditions. We received the following restructuring. See Section II.A.1.c. of PAE. miscellaneous comments on second this preamble for a discussion of a 7. Third mortgage. mortgage terms and conditions: limited partnership controlled by a Four commenters opposed the • Set the term ‘‘concurrent’’ rather public body. possibility of a HUD-held third than ‘‘concomitant’’ with the term of the 6. Return to owner. mortgage as provided in the interim first. One commenter opposed allowing the rule. One said it would lead to • Acceleration for violation of HUD PAE to set the owner’s share of net cash ‘‘overleveraging’’ a project; two others requirement should be only for material flow below 25 percent, arguing that a said a third mortgage should be limited violation of a material HUD lower share will discourage owners to an amount reasonably likely to be requirement, and should be allowed from restructuring. Another commenter repaid that was excluded from the only after written notice to owner of the said that an owner right to 25 percent second only because of statutory violation. may be incentive for owners to neglect limitations on the aggregate of the first • HUD should ask for a statutory upkeep of project (i.e., in order to and second mortgages. Another change allowing for longer terms. reduce expenses and boost net cash commenter suggested using budget- • Use a standard form. flow) and that tenants should be based exception rents whenever a third • HUD should specify conditions to involved in determining if a project mortgage would otherwise be needed. be in second mortgage, consistent with meets the property management Another commenter asked when a HUD- first mortgage. standards as a precondition to paying held third mortgage would be HUD response: the owner share. forgivable.

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HUD response: A third mortgage, not continue the existing first mortgage exemption permitted by statute for when necessary, would not even at a nominal level. We have no housing cooperatives, nonprofit owners ‘‘overleverage’’ a project. First, it would legal authority, or program interest, in cannot be exempted from the owner require no payments on principal or becoming involved in a lender’s contribution requirement without a interest until the second mortgage is relationships with Ginnie Mae security statutory change. Eighty percent of the satisfied. Second, a third mortgage holders. Moreover, the commenter’s rehabilitation costs will come from would accrue only nominal interest and concern about ‘‘compelled’’ partial sources other than owner contributions, this interest will not compound. Third, claim payments is unfounded. Under and the interim rule preamble and the final rule allows a PAE to negotiate the final rule, OMHAR or FHA will not Operating Procedures Guide both allow a reduction of the maximum third compel a lender to accept a partial claim the owner to include any available mortgage amount that would otherwise payment. If the lender is not able to funds from other government sources to be required initially under a obtain approvals from investors, such as meet their contribution requirements, Restructuring Plan, within limits set by Ginnie Mae security holders, needed to except as discussed in the following HUD, in order to recognize the imputed accept a partial claim payment, the topic. tax consequences to the owner of the owner must refinance the first mortgage 2. Opposition to limit on funding from restructuring. The Operating Procedures with a lender willing to make a new governmental resources. Guide will initially allow the PAE to loan that will pay off the first mortgage One commenter opposed a limitation negotiate a reduction of the initial amount in excess of the partial claim on funding from nongovernmental mortgage amount by up to 30 percent. payment. sources while another said that any Finally, the final rule permits HUD to such limitation needed to be in the rule. forgive or modify the third mortgage on L. Sections 401.472–.473, Funding of Five commenters said that all nonprofit the same conditions as apply to a Rehabilitation owners should be exempt from the second mortgage under § 401.461(b)(5). Summary of Sections limitation, while two others said the Exception rents are designed to address PAE should be able to waive it for specific housing needs of tenants and Section 517(b)(7) of MAHRA and nonprofit owners. Two commenters communities and may not be used § 401.472 identify some potential asked HUD to clarify that equity raised solely to prevent a section 541(b) claim. sources for funding needed for by syndicating Low-Income Housing Accordingly, we have rejected the rehabilitation of the project. The interim Tax Credits (LIHTC) is a non- suggestion to use budget-based rule includes the requirement of section governmental source of funding. exception rents whenever a third 517(b)(7)(B) of MAHRA that an owner HUD response: The preamble to the mortgage is required. contribute from non-project funds at interim rule contained two points of 8. Claims. least 20 percent of the total cost of elaboration on the 20 percent owner One commenter said the rule should rehabilitation. The preamble to the contribution requirement that appears include in the partial claim amount interim rule stated that a reasonable in MAHRA and in the interim rule. The accrued interest on the mortgage proportion of the owner’s contribution preamble stated that a ‘‘reasonable amount to be prepaid by the claim at the must come from non-governmental proportion’’ must come from non- note rate up to the date of prepayment. resources, which we estimate would be governmental sources, and estimated Another commenter concluded that a minimum of 3 percent of the total cost that this proportion would be set at a payment only of a partial rather than a of rehabilitation. One of the potential minimum of 3 percent. We continue to full claim would mean that exception Governmental sources of rehabilitation believe that it is reasonable to expect rents would never be allowed under funding is the grants authorized by each owner to contribute towards the § 401.411(b) because that provision section 236(s) of the National Housing cost of rehabilitation from the owner’s makes no allowance for payment of any Act. Section 401.473 addresses the use own resources, because the owner will first mortgage debt remaining after a of these grants in connection with benefit from the resulting increase in claim payment. A commenter said that restructuring. project value. We recognize that owners HUD should clarify in the final rule that of restructured projects may have severe Summary of Comments a servicer incurs no obligation to Ginnie limitations on the ability to make Mae security holders for accepting a 1. Opposition to 20 percent owner additional investment in the project, but ‘‘compelled’’ partial payment from contribution requirement. in cases where other public funds are HUD, and HUD should indemnify the Three commenters wanted HUD to available, owners will cover only a lender. exempt nonprofit owners from the small part of the costs from their own HUD response: When HUD pays an requirement for a contribution of 20 resources. The commenters did not insurance claim for a mortgage that is in percent of rehabilitation expenses. One provide convincing evidence that these default, the claim includes an amount commenter observed generally that preamble requirements would prevent for the unpaid interest that would have owners of all types are unlikely to PAEs from developing Restructuring been included in the defaulted contribute 20 percent. Four others Plans with all necessary and cost- payments. There is no similar need to opposed the requirement without an effective rehabilitation—whether for for- compensate the mortgagee through a incentive to make the contribution. profit or non-profit owners. Because of section 541(b) claim, which is made These commenters suggested treating the substantive impact of our decision only for a mortgage that is not in the contribution as a self-amortizing to require owners to use their own default. The commenter is correct that market-rate loan to the project that resources toward partial HUD will restrict debt service paid from would be repayable as project expense, implementation of the statutory exception rents to payments on the or providing some type of priority requirement for an owner contribution, second mortgage for negative Net return or some set rate of return. we have decided that the matter Operating Income projects or to HUD response: The owner properly belongs in the text of the final payments on a new rehabilitation loan, contribution is required by section rule itself. The precise level of required but exception rents will be needed only 517(b)(7) of MAHRA and the return to non-governmental resources, however, for projects which also require a full the owner is constrained by section will continue to be set in the Operating payment of claim and which, thus, will 517(a)(3) of MAHRA. Other than the Procedures Guide.

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PAEs will have limited ability to Agreement. It will modify the terms of pay rehabilitation costs directly from request waivers of this regulatory an old or new FHA Regulatory the FHA insurance fund instead of requirement in exceptional cases (e.g. to Agreement, reference the Restructuring through a larger partial claim/smaller facilitate the transfer of a troubled Plan documents as controlling the first mortgage. project to a priority purchaser), but no owner’s distribution, and specifically HUD response: The first commenter waiver is possible for the statutory 20 delete the requirement of a residual has correctly interpreted HUD’s intent percent requirement. As stated above, receipts account as long as the second in § 401.472(a)(2). Unlike the MAHRA permits housing cooperatives or third mortgages are in place. In a non- demonstration program, the Mark-to- to be exempted from the owner FHA refinancing the existing Regulatory Market Program does not include HUD contribution requirement. Broadening Agreement is canceled. authority to directly fund rehabilitation this exemption option would require a Section 517(b)(6) of MAHRA through a payment from the FHA statutory change. Equity contributions authorizes use of project accounts in insurance fund as suggested. from the syndication of LIHTC will be connection with restructuring but does considered a non-governmental source not preclude a PAE (as part of a M. Section 401.480 Sale or Transfer of of funding for rehabilitation funding Restructuring Plan involving Project purposes, but will trigger a thorough conventional financing) from Summary of Section technical review of the Restructuring recommending the use of existing Plan. project account balances to fund the This section covers the sale or transfer 3. Other comments regarding 20 initial deposit to a new reserve for of a project undergoing restructuring at percent requirement. replacement account or to fund tax and the owner’s initiative (i.e., a voluntary One commenter wanted HUD to insurance escrows. sale) or following a determination that clarify that non-Federal government 5. Section 236(s) rehabilitation grants. the current owner is ineligible for funding such as State/local grants or Three commenters said that HUD restructuring (i.e., an involuntary sale). loans will be counted in the 20 percent should target rehabilitation grants to A PAE will develop a Restructuring owner contribution. Three commenters new priority purchasers as well as Plan with an involuntary sale only if, asked about borrowed funds as part of existing nonprofit owners for projects within 30 days of notice of rejection, the the contribution; one of them undergoing restructuring; two of them owner notifies HUD or the PAE of the specifically mentioned insured section also said that section 236(s) grants owner’s intent to transfer the property. 223(a)(7) or 223(f) refinancing loans should be available on a preferential The owner must also provide a notice to secured by the project and another basis to nonprofit owners or below- potential purchasers that describes the mentioned conventional refinancing of market projects renewing under part 402 project and the procedure for submitting the project. One commenter wanted the without restructuring. Two commenters purchaser offers; the notice is subject to rule to specify conditions for a PAE pointed out that treating section 236(s) review and approval by HUD or the requirement for a contribution of more grants in a rule only for projects PAE. The owner must distribute and than 20 percent. undergoing restructuring (i.e., part 401) publish an approved notice as required HUD response: FHA-insured loans (or puts exception projects seeking grant by HUD. This section gives a preference conventional secured debt that is not money at a disadvantage; one of them to certain ‘‘priority purchaser’’ groups, subordinate to the § 401.461 second and asked that HUD add a new section to defined as tenant organizations, tenant- third mortgages) are considered project part 402 on section 236(s) grants. endorsed community-based nonprofit resources and may not be used to fund Finally, one commenter asked whether organizations, and tenant-endorsed the owner’s contribution. The PAE has section 236(s) grants can be structured public agency purchasers. The owner discretion to negotiate a larger owner as loans to avoid adverse tax must inform the PAE of any intention to contribution. State/local grants or loans consequences to owners. accept a purchase offer. An eligible can be used to meet most of the owner’s HUD response: As noted in the owner desiring to sell or transfer a contribution. OMHAR has provided preamble to the interim rule, HUD is project through a voluntary sale should further guidance in its Operating pursuing a separate rulemaking provide notice as part of its initial Procedures Guide concerning the source procedure regarding use of the section request for a Restructuring Plan or at of funds that an owner may utilize 236(s) grant authority outside of the any later time when it is still feasible to toward rehabilitation financing. Mark-to-Market program. To the extent develop a Restructuring Plan involving 4. Comments regarding use of project a Mark-to-Market restructuring sale or transfer, but the owner is not accounts for rehabilitation. generates Interest Reduction Payment otherwise subject to the requirements of One commenter cautioned against (IRP) recaptures, those funds will be this section. All project sales are subject violating an owner’s contract right used to assist with rehabilitation to PAE approval and HUD approval of under the regulatory agreement to financing for the restructured property, the Restructuring Plan. distribution of surplus cash. Another or for other properties through commenter suggested that the lender for procedures to be defined in the separate Summary of Comments a conventional refinanced first mortgage rulemaking. should be able to use funds in project 6. Funding of rehabilitation through 1. HUD should be responsible for sale accounts to establish escrows and claim amount. of projects. reserves required by the lender’s usual A commenter suggested that HUD’s Three commenters felt that, in order underwriting standards. intent behind § 401.472(a)(2) regarding to better protect the interests of tenants, HUD response: Section 517(a)(3) of facilitating rehabilitation through the HUD should maintain overall MAHRA changes the distribution of claim amount was to permit the claim responsibility for the sale of projects. surplus cash. The first and second to be large enough to reduce the first HUD response: OMHAR will maintain mortgages for a project restructured mortgage debt so the project rents could overall responsibility for all aspects of under the Mark-to-Market Program will support a refinanced first mortgage that the Mark-to-Market program, including reflect the statutory change. As part of paid off remaining debt and financed approval of the sale of projects. We will a closing, owners will be required to rehabilitation. Another commenter carefully review PAE recommendations execute a Modification of Regulatory suggested that it would be simpler to and input from tenant and local

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The final rule refers solely to absolute priority instead of the approve non-priority purchasers and vouchers to carry out clear preference provided in MAHRA. The that the PAE should be able to waive the Congressional intent, but the term commenter further argued that, in the requirement for tenant approval if ‘‘vouchers’’ is defined to include any case of voluntary sales unrelated to approval is unreasonably withheld. tenant-based assistance under the disqualification, MAHRA does not HUD response: Priority purchasers definition in MAHRA, which is also the support even a preference for priority will have a preference only in the event section 8 definition.) purchasers and the owner should have of an involuntary sale or transfer of a Section 401.484 of the interim rule sole discretion to choose the project project, and then only for a limited (§ 401.560 of the final rule) implements purchaser. Three commenters period of time. This preference should part of section 518 of MAHRA, which questioned the rationale for granting a have a minimal impact on an owner’s requires a PAE to establish management preference to priority purchasers ability to demand competitive offers standards for a project pursuant to HUD because tenant and community-based because the Operating Procedures Guide guidelines and consistent with industry groups are not necessarily better at requires that priority (and all) purchaser standards. maintaining a project as decent, safe, offers be reviewed carefully by both the Summary of Comments and affordable housing than other PAE and OMHAR. The Operating nonprofit or for-profit groups. Procedures Guide also requires that the 1. Subsidy layering limitations on According to the commenters, qualified PAE must attempt to mitigate losses to HUD funds. One commenter was ‘‘pleased’’ that nonprofit or for-profit groups could the Government while not placing sole HUD allows PAEs with delegated include organizations that would not priority on purchase price. In the event authority for subsidy layering to serve meet the definition of priority purchaser the PAE believes tenant approval is that function under MAHRA. Another because of a city-wide mandate or a being unreasonably withheld, OMHAR commenter questioned the interim tenant-endorsed non-profit housing should be consulted on a case-by-case rule’s reference to limiting assistance to group with a demonstrated track record. basis. HUD response: In the event of an that needed to continue housing involuntary sale or transfer of a project, N. Sections 401.481–.484, Other ‘‘tenants with an income mix the Operating Procedures Guide will Requirements of Restructuring Plan comparable to the income mix of the permit offers to be accepted only from project’’ before restructuring. The Summary of Sections priority purchasers during a reasonable commenter asked how this could be period (to be determined by HUD, Section 401.481 explains the subsidy reconciled with a possible need to currently 4 months) after notice of sale layering certification that a PAE must reconfigure project (e.g., convert or transfer. After that period there are no make under section 514(e)(7) of efficiencies to 1-bedroom units). restrictions on sale or transfer of the MAHRA. The purpose of the subsidy HUD response: We do not intend to project. The rule also states that layering certification procedure is to limit the ability of owners to reconfigure voluntary sales or transfers do not have ensure that any HUD assistance projects and we thank this commenter any priority purchaser requirements. provided to the owner of a project under for pointing out this potential The preference for priority purchasers the Restructuring Plan is no more than misunderstanding. We have amended in the event of involuntary sale or is necessary to permit the project to language in § 401.481 to address this transfer is based on the requirements of continue to house a tenant mix that is issue. MAHRA and HUD’s goal of maintaining comparable in income to the tenant 2. Leasing units to voucher holders. safe and affordable housing for low income mix of the project before the Among commenters favorable to this income individuals and families. Restructuring Plan is implemented— section, one generally supported it, Priority purchaser offers will be subject after taking into account other Federal, another wanted the 100 percent to substantive review by both the PAE State, or local governmental assistance requirement to be in a recorded and OMHAR. Offers will be rejected if of any kind such as grants, loans, instrument as well as in the not in the best interest of the guarantees, or tax credits or other tax Restructuring Plan, and the third community and HUD. MAHRA requires benefits. HUD may rely on the PAE’s wanted HUD to require an owner to priority purchasers to have a local certification if HUD has already ‘‘seek and accept’’ tenant-based community or tenant base. Otherwise- approved the PAE to do subsidy assistance for units without project- capable non-profits can partner with layering certifications for other based assistance. Two commenters such groups to obtain this preference. purposes. opposed the section, stating that it is 3. Priority purchasers and competitive Section 514(e)(9) of MAHRA prohibits unreasonable to require 100 percent of sales. refusal to lease a ‘‘reasonable number’’ units to have tenant-based assistance Four commenters were concerned of units to section 8 voucher holders and that HUD should encourage mixed- about the effect of the preference for because of their status as voucher income projects. One of them priority purchasers on an owner’s holders. Under § 401.483 of the interim specifically objected to requiring an ability to demand competitive offers. rule (§ 401.556 of the final rule), the owner to accept tenant-based assistance Two commenters suggested that the Restructuring Plan will not permit an that does not permit the owner to realize final rule should clarify how long an owner to reject any prospective tenants market rents. One commenter said that owner must hold a property exclusively solely because of their status as voucher the rule needs to specify the term during for sale to priority purchasers and what holders. (Note that title V of which this section applies. Three actions an owner must take to Departments of Veterans Affairs and commenters suggested that owners demonstrate a good faith effort to sell to Housing and Urban Development, and should not be under an obligation to

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HUD response: We agree with the • Under §§ 401.500 and 401.501, a PAE comment that the non-discrimination Delete an unclear reference in (b)(2) must solicit and document the provision of § 401.483 of the interim to routine cleaning—which the rule (§ 401.556 of the final rule) should commenter said duplicates provisions of consideration of tenant and local be included in the recorded Use the physical condition standards. community comments. These sections Agreement and we have amended • Add a provision that a management (and the related new §§ 401.502 and § 401.408 accordingly. The final rule agreement should permit the PAE to 401.503 in the final rule) describe the minimum procedures for ensuring that does not require an owner to renew terminate the manager for cause. contracts with non-compliant lease third parties affected by the HUD response: In our opinion, the holders and HUD will not require restructuring of a project through the owners to ‘‘seek and accept’’ tenants commenter’s suggested language Mark-to-Market Program are kept with tenant-based assistance. The final regarding tenant relations is less, not informed and provided the opportunity rule merely prohibits the owner from more, objective. Adding ‘‘consistent to provide comments at crucial stages of discriminating solely on the basis of the with industry standards’’ to paragraph the process, including required notices tenant’s (or potential tenant’s) status as (b) is redundant since it is already and public meetings at which the PAE the holder of a section 8 voucher. The specified in paragraph (a). The language will hear presentations and receive rule does not require the owner to rent regarding ‘‘preventative maintenance, comments on the desired contents of a to tenants who are unable to pay the repair or replacement’’ is necessarily Restructuring Plan and a Rental rent or are otherwise not in compliance more specific than just requiring Assistance Assessment Plan (if one is with the terms of a lease. maintenance of the long term physical required), and on any proposed transfer 3. Property management standards. integrity of the property. The of the project. a. Need uniform standards. One requirement for routine cleaning, while commenter urged HUD to establish admittedly duplicative, is appropriate Summary of Comments uniform standards that reflect expected for an explicit statement in this context. In the following summary we have outcomes. HUD does not at this time contemplate HUD response: The final rule reflects included all comments relating to the statutory requirement that the PAE delegating the authority to require new participation by tenants in the establish management standards management; the Regulatory restructuring, implementation and consistent with industry standards and Agreement/Management Certification contract renewal process, even if the with minimum general requirements contains a provision permitting HUD to comments were specifically directed to from HUD (section 518 of MAHRA). require the owner terminate the a subject covered in a different section More specific guidance on reporting and management agreement. of part 401 or part 402. compliance is in the Operating c. Management fees. 1. General. Procedures Guide. Projects with FHA Two commenters wanted HUD to mortgage insurance or a HUD-held A significant percentage of ensure a management fee system that mortgage after restructuring will be commenters (approximately 26 provides adequate compensation and required to comply with the Regulatory commenters) were dissatisfied with the Agreement and all relevant HUD removes the link to (possibly falling) level of tenant, community, and local Handbooks and Directives (including rent levels or that carries forth current government participation guaranteed by the HUD Real Estate Assessment method with higher percentage of rent §§ 401.500 and 401.501 of the interim Center’s procedures), except to the to reflect drop in restructured rents. rule. These commenters all felt that extent specifically modified by the Another commenter asked HUD to tenants, and the community and local Restructuring Plan, the Operating clarify that allowable management fees government, needed to be given the Procedures Guide, the final rule, or will not be reduced as a result of opportunity for broad participation in MAHRA. restructuring. the entire restructuring process. b. Suggestions for language changes. HUD response: Underwriting Almost all of the commenters argued Two commenters urged HUD to make standards for management fees (and that broad tenant and community the requirement for a manager to other operating expenses) are detailed in participation was vital for the success of maintain good relations with tenants the Operating Procedures Guide. While the Mark-to-Market Program. A few more objective (e.g., it should relate to management fees may well be reduced commenters also argued that the interim tenants’ opportunity to comment and as a result of restructuring, the fee rule failed to follow both the letter and respect for tenants’ rights, not the level should be adequate to competently the intent of MAHRA by not providing of tenant satisfaction with manager). manage the property as an affordable tenants with the ability to offer ‘‘timely One of these commenters also said that and meaningful’’ input at the various a reference in the preamble to less than housing resource. To the extent the fee stages of the restructuring process. Some ‘‘satisfactory’’ HUD review should apply has been based on a percentage of the commenters specifically cited section only if a PAE agrees with HUD findings gross rent and will be inadequate after 514(f)(2)(c) of MAHRA as requiring that and the findings are not cured in reducing the rents as a result of tenants be consulted on the completed reasonable period after notice. The same restructuring, the percentage yield will rental assistance assessment plan. commenter suggested the following be recalculated based on an adjusted specific language changes: comparable market fee and adjusted The following table summarizes the • Add to paragraph (b) an express with the OCAF. general suggestions made by requirement for HUD’s guidelines to be commenters (a number of more specific consistent with industry standards. subject areas are discussed later):

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Number of Suggestion commenters

Tenants should participate fully in PAE selection ...... 6 Tenants should participate in decisions to find an owner ineligible for restructuring or section 8 renewals ...... 2 Tenants/community should have right to have access to relevant documents and information, before they are final, in order to be able to give meaningful input to documents and the overall process. For example, right to access to draft appraisals, physical condition analyses, rental assistance assessment plans, capital needs assessments, management reviews, comparable market rent analyses, proposed restructuring plan, data used in making any decisions about the need for project versus tenant-based assistance, cost-effectiveness of rehabilitations, or disqualification of the owner, and other information necessary for meaning- ful tenant input ...... 10 Funds should be provided either to PAE or tenant groups to support tenant participation activities ...... 4 Tenants/community should be given notice of and allowed to participate fully in all aspects of restructuring process. For example, in developing and/or reviewing rehabilitation analysis restructuring plan, cost-effectiveness determination under § 401.451(c), any proposed transfer of property, eligibility/disqualification decisions, restructuring/renewal decisions, development of PRA, negotiation of Restructuring Plans, conversions to tenant-based assistance, formulation of rehabilitation and management as- sessments, Restructuring Commitments ...... 18 Tenant participation and notice in monitoring of PAE's actions under PRA, and further participation of tenants in future implemen- tation and enforcement of the Restructuring Plan, is needed ...... 7 Many more meetings should be required and public comments accepted throughout entire restructuring process ...... 6

HUD response: HUD recognizes the brief narrative explanation of the Assistance Assessment Plan. HUD does importance of providing opportunities disposition of all tenant and local not interpret section 515(f)(2)(C) as for full and informed involvement in all community comments. requiring an additional opportunity for aspects of project restructuring. Such This revised procedure will not only tenant comment after that plan is opportunities, however, must be ensure appropriate early input into the completed, but will provide such provided in a manner that permits development of the Restructuring Plan, opportunity as part of the second efficient and timely development of a but also will provide a safeguard against consultation meeting to be held upon Restructuring Plan that responds not inadequate consideration or completion of the draft Restructuring only to tenant needs but also to wider misunderstanding of tenant and Plan as described above. community and local government community concerns by the PAE, 3. Intermediaries administering needs, the needs of project owners, and without unduly hampering timely and technical assistance grants should the social and financial goals of the efficient completion of the Restructuring receive notice. Federal Government reflected in Plan. Persons given the opportunity to One commenter suggested that MAHRA. HUD considers the tenant comment on a proposed Restructuring Intermediaries administering technical participation opportunities provided in Plan will not have appeal rights under assistance grants for the Mark-to-Market the interim rule as consistent with the subpart F. HUD emphasizes that the Program should be recognized as express minimum demands of MAHRA, tenant and community participation ‘‘affected parties’’ for the purpose of but we agree with the commenters that procedures mandated by the final rule receiving notices. This commenter felt the final rule should require more in are minimum procedures that may be that this information was required for order to implement the spirit of the supplemented by a PAE to the extent Intermediaries to perform their statute. While it is important to consistent with the objectives of functions in a timely and efficient streamline the restructuring process and MAHRA and the local circumstances. manner. to allow the PAEs flexibility to respond Other changes intended to strengthen HUD response: HUD agrees that this to local conditions, we share the HUD’s collaborative efforts with tenants requirement is appropriate. 4. Notices in other languages. commenters’ concerns that the interim and local communities are detailed in One commenter suggested that notices rule was not prescriptive enough to the following sections. be provided in other languages. guarantee that the tenants and local 2. Involve others in Rental Assistance HUD response: HUD will publish community groups would be provided Assessment Plan. general information brochures in Two commenters said that the PAE adequate opportunity for meaningful various languages. While the PAE and needed to consult with tenants, the participation in every case. the owner should make every effort to In the interests of providing even locality, the PHA and the owner before provide notices (or translation services) greater opportunities, we have developing this plan, and specifically to reach non-English speaking tenants concluded that a second consultation with regard to the tenants’ ability to use and local community groups, it is meeting should be mandated as an tenant-based assistance. Five impractical to require this by regulation. opportunity for tenants and local commenters said that tenants should 5. Notice to all tenants and posted in community groups to review and have a right to comment on the plan project. comment on the PAE’s proposed after it was developed, with some A number of commenters felt that all Restructuring Plan (including plans for commenters arguing that this is required notices should be delivered to each future section 8 assistance) before the by section 515(f)(2)(C) of MAHRA. One tenant and tenant organization, as well PAE submits the Restructuring Plan to commenter suggested that any as posted in each project. OMHAR. As a minimum, the PAE will conversion to tenant-based assistance HUD response: HUD agrees with this be required to conduct two (rather than should require the approval of 2⁄3 of the comment. just one) public meetings. Section tenants. 6. Right to organize. 401.500(c) and (d) now require public HUD response: The initial Tenants should be able to organize in access to the draft Restructuring Plan consultation meeting required by the projects that have been restructured and a second meeting no later than 10 interim rule provides the opportunity through the Mark-to-Market Program. days prior to submission to OMHAR. requested by commenters for input prior HUD response: As explained in The PAE must document and provide a to the development of the Rental HUD’s corrective rule published on

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December 28, 1998 at 63 FR 71373, not sufficient in monitoring and These efforts will be coordinated with section 599 of Pub. L. 105–276 amended compliance activities. One commenter HUD’s Enforcement Center and other section 202 of the Housing and felt that the final rule should give offices within HUD. We agree with the Community Amendments of 1978, tenants and the community the right to commenter that it is vital for the PAE to concerning tenant participation in enforce the Restructuring Plan to determine if a transfer is appropriate certain multifamily housing projects, to achieve compliance. Another (whether voluntary, or involuntary in apply that section to all projects with commenter felt that tenants and other the case of rejected owners) early in the project-based assistance or enhanced affected third parties should be given process. (‘‘sticky’’) vouchers under the Mark-to- notice of all monitoring and compliance 12. Tenant involvement for projects Market Program. Tenant participation visits. not restructured. under section 202 (including the right to HUD response: Tenants and other Eight commenters wanted the final organize) is the subject of 24 CFR part groups are specifically listed as third rule to provide for tenant involvement 245. We issued a separate proposed rule party beneficiaries of the Use Agreement in contract renewal decisions, including to amend part 245 to reflect section 599 in § 401.408(i) of the final rule. determinations of owner ineligibility, and to make other changes (64 FR Appropriate notice of monitoring and for projects not undergoing restructuring 32781, June 17, 1999). A final rule is compliance inspections will be under the Mark-to-Market Program. being developed. provided. HUD response: Some of these 7. Tenant role in PAE selection. 11. Transfer of properties and tenant comments concerned projects that were Three commenters were concerned participation. eligible for restructuring but with that tenants were not given any role in Three commenters emphasized that owners that requested a contract selecting PAEs. Two commenters also the final rule should require more renewal without restructuring. As felt that tenants should have a role in tenant participation in the transfer regards those projects, HUD agrees with the negotiation and renewal of PAE process. One of these commenters felt this comment and has provided a new agreements. One commenter pointed out that the final rule should require that notice requirement and opportunity for that since PAEs would be making the PAE work with tenant and comment in the new § 401.502. HUD’s decisions about the future of tenants’ community groups and local response regarding ineligible projects homes, it would be vital for tenants to governments to facilitate the transfer of will be published with the final part have a say in their selection. properties to priority purchasers. 402. HUD response: We encourage tenants Another commenter was concerned that 13. Access to information. to work with the PAEs. Experience the requirement for an ineligible owner Ten commenters thought that tenants working with the tenants has been a to respond to a notice of rejection and/or the community should have a threshold criterion in selecting the within 30 days with a notice of intent right of access to relevant documents PAEs. OMHAR will take appropriate to sell would lead to HUD foreclosures and information, before restructuring is action if justified complaints against a when owners fail to respond within 30 final, in order to be able to give meaningful input to documents and the PAE are received from tenants. days. In light of the adverse impact of 8. Rent levels. foreclosure on tenants, the commenter overall process. Documents/information One commenter said that PAEs will wanted a final rule that requires mentioned included draft appraisals, not be able to adequately review an community and tenant participation and physical condition analyses, rental owner’s initial market rent places primary responsibility on the assistance assessment plans, capital determination, so that HUD must let regulatory agencies to develop a proper needs assessments, management tenants/community advocates review solution using all available enforcement reviews, comparable market rent and comment. Three commenters tools. Another commenter felt that analyses, proposed restructuring plan, argued that tenants should have the HUD/PAEs should be obligated early in data used in making any decisions about right to comment on or appeal proposed the disqualification process to explore the need for project versus tenant-based rent increases or petition for decreases transfer options with owners, tenants, assistance, cost-effectiveness of to match cost decreases. and potential priority purchasers rehabilitations, or disqualification of the HUD response: The PAEs’ market because reliance on end-stage notices by owner, and other information necessary knowledge and ability to manage the largely unmotivated owners would be for meaningful tenant input. independent third party review neither adequate nor timely. HUD response: Effective participation appraisal function were threshold HUD response: The final rule requires by tenants and the community depends criteria in selecting the PAEs. The PAE extensive tenant participation in the on access to basic project information. is, however, required to solicit tenant involuntary sale or transfer process This is recognized in MAHRA section and local community comment on this when the sale or transfer is to a priority 514(f)(1), which requires HUD to and other issues in the context of purchaser. The potential priority establish an opportunity for developing the Restructuring Plan. purchaser must show evidence of tenant participation that must include While tenants and other interested support and tenant endorsement prior to ‘‘appropriate access to relevant parties may comment on rent approval of the sale or transfer. If an information about restructuring adjustments, they will not have an owner is determined to be ineligible, activities’’. Many commenters felt that appeal right. HUD will make all efforts to prevent the interim rule was not adequately 9. Use Agreement changes. foreclosure and to facilitate sale or specific in emphasizing the right to such A commenter felt that tenants and transfer of the project to an eligible access. The interim rule generally tenant organizations should be notified owner. To the extent an owner is not requires the PAE to solicit tenant and of any changes to the Use Agreement. responsive within the 30-day notice local community comments at an early HUD response: HUD agrees with this period, HUD’s Office of Housing will stage. By expressly designating the PAE comment. make the determination of whether to as the key player under the interim rule, 10. Monitoring and compliance terminate the section 8 contract or to HUD expected that the PAE would make activities. renew at market rents. In all cases the available in an appropriate manner the A number of commenters were impact on the tenants and local types of information that would make concerned that tenant participation was community will be carefully considered. such a solicitation meaningful. The

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The possible formal procedure was available to servicing the second mortgage including responsibilities are discussed in Subpart receive informed input from tenants and the determination of the amount of the D. These matters, and appropriate the community. net cash flow receivable by the owner. compensation, will be addressed in the In response to a broadly-felt desire for HUD may designate the PAE as servicer PRA and the Operating Procedures an explicit statement in the final rule with consent of the PAE. Section Guide. OMHAR is currently drafting a regarding access to information, the 401.554 requires HUD to offer to any PRA amendment to recognize the long- final rule includes both a general PAE qualified to be the section 8 term compliance monitoring functions. statement of the PAE’s responsibilities contract administrator the opportunity 3. Role of lender. in this regard and a specific listing of to serve as contract administrator. The One commenter felt that if the first certain types of information that a PAE term ‘‘qualified’’ is intended to indicate mortgage is refinanced with a otherwise might be reluctant to disclose that a contract administrator must meet conventional loan, then the publicly because of potential owner both statutory requirements of the conventional lender should have assertions of proprietary or United States Housing Act of 1937 (e.g., primary project monitoring and confidentiality rights to such be a public housing agency) and any inspection authority. information. By clearly listing such additional requirements of HUD HUD response: Consistent with information in a rule, HUD will make established under the applicable section section 519 of MAHRA, the PAE (or clearer HUD’s understanding that 8 program by the responsible HUD HUD if the project is no longer covered compliance with the statutory mandate officials. As contract administrator, the by a PRA with a public PAE) is for tenant and community participation PAE must offer to renew section 8 responsible under the final rule for long- necessarily means that an owner contracts in accordance with the term monitoring and compliance with requesting restructuring must give up Restructuring Plan as provided in the Restructuring Plan and Use some rights to confidentiality that section 515(a) of MAHRA. Agreement. This does not prevent the would ordinarily prevail. lender—whether the first mortgage is We are not listing in the final rule all Summary of Comments modified or refinanced with FHA- information items for which a PAE is 1. Inspections. insured or conventional financing— expected to, or may find it appropriate Two commenters were concerned from undertaking other monitoring or to, provide public access. For example, about inspections required under inspections that it considers business information of a type routinely § 401.550(b). One commenter pointed appropriate, at its own expense. 4. Servicing of second mortgage. submitted to HUD that would be out that properties subject to FHA- released in response to a proper Two commenters were concerned insured mortgages would be subject to about the servicing of second mortgages. information request under the Freedom two inspections, contrary to the HUD of Information Act is not listed. We are One of these commenters felt that the 2020 goal of requiring one inspection Mark-to-Market program would operate not listing items that are a matter of per property per year. Both commenters public record. We will not expect a PAE more efficiently if a servicer of a first were concerned about the cost of the mortgage were given the opportunity to to make public information obtained required inspection and the possibility from an owner that is clearly service the second mortgage. The other that the loan servicing fee would not commenter argued that because Mark- confidential, or propriety business cover the servicing lender’s costs. One information of a type that HUD would to-Market second mortgages will be cash suggested eliminating the mortgagee flow mortgages, an important criteria for normally decline to make available, in inspection requirement for small loans; the absence of a specific rule requiring servicing them will be financial the other suggested requiring the PAE to statement analysis. The commenter disclosure. OMHAR is considering a submit inspection results to the separate proposed rulemaking recommended that HUD test interest for servicing lender in lieu of a mortgagee a national solicitation for contractors procedure that will cover in more detail inspection. the issue of public access to owner- who could provide the necessary HUD response: HUD agrees that expertise in analyzing financial provided information in the context of duplicate inspections are not desirable Restructuring Plan development, and statements. and they are not required under the HUD response: HUD agrees that the OMHAR welcomes all ideas on that final rule. All inspection requirements servicer of the second mortgage must subject. for restructured projects will be have skill in financial statement P. Sections 401.550–.554, consistent with the HUD Real Estate analysis. As noted in § 401.552 of the Implementation of the Restructuring Assessment Center (REAC) protocols. final rule, HUD or its designee (which Plan After Closing 2. PAE matters. could include either the PAE or another One commenter recommended that contracted entity) will service the Summary of Sections PAEs receive additional compensation second mortgages. Section 401.550 implements section for conducting loan servicing, 5. Section 8 contract administration. 519 of MAHRA by providing for compliance monitoring, and section 8 A commenter urged HUD not to periodic PAE monitoring (including on- contract administration. This attempt to undermine Congress’ intent site inspections) and by generally commenter also recommended that that qualified HFAs, serving as PAEs, be requiring PAEs to ensure that owners HUD clarify all the long-term utilized as contract administrators for comply with approved Restructuring responsibilities of the PAE in the properties that complete restructuring. Plans, including execution and Operating Procedures Guide and the The commenter was concerned about recording of a Use Agreement. As long final rule. Another commenter the interim rule adding additional as there is a PAE for the project that is suggested that HUD/PAE should requirements for contract administrators

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This applies only comparability. ‘‘Qualified’’ is used in the sense of both to the initial renewal under part 401. One commenter wanted the final rule technically eligibile under the 1937 Act, Subsequent renewals will be governed to clarify that verification of rent and capable as determined by the by part 402. Some matters (e.g., setting comparison is a responsibility of a PAE responsible HUD official. HUD, or a initial rent levels for project-based and not HUD but another said public body PAE designated as contract assistance and adjusting them) are fully verification must be by HUD and not the administrator, must offer to renew covered in part 401 and other section 8 PAE (arguing that a PAE has a bias to section 8 contracts, subject to the regulations directly pertaining to these restructure). Another commenter availability of appropriations. matters will not be applied to part 401 wanted market comparable rents for 6. Enforcement. renewals. For some other matters, other projects with current rents above market A commenter asked: What will be the sections of part 401 indicate the to be determined by an appraiser on enforcement mechanism to enforce applicability of usual section 8 both an ‘‘as-is’’ and ‘‘as-repaired’’ basis, compliance with management requirements—e.g., § 401.558 indicates with ‘‘as-is’’ basis to be used when standards? when the physical conditions standards reserves are determined to be HUD response: Under section in 24 CFR 5.703 (which usually apply inadequate for repairs. HUD response: HUD’s Office of 519(a)(1)(A) of MAHRA, a PAE has to section 8 projects pursuant to Housing will retain responsibility for responsibility for enforcement of the sections such as 24 CFR 880.201 and renewal of below-market contracts. management standards (as well as other 881.201) will apply to Mark-to-Market OMHAR will delegate the rent MAHRA requirements). HUD will not properties. In general, section 8 comparability review for above-market shun an enforcement role, however, but regulations on matters that are not in projects to PAEs, but will retain will be actively involved in ensuring conflict with, or otherwise addressed responsibility for the final decision. The full compliance with program by, part 401 will be made applicable in compensation structure and assignment requirements. HUD and/or the PAE will contracts renewed under that part. of these projects to PAEs for contact apply a variety of enforcement tools in However, HUD considers it necessary to administration regardless of whether or cooperation with HUD’s Enforcement reserve to the contract drafting and not the projects are restructured will Center, when appropriate on a case-by- revision process the final detailed remove the basis for any perceived bias case basis. Notes, mortgages, Regulatory decisions on the applicability of section on the part of the PAE. The rents for Agreements, Use Agreements and 8 requirements. these projects will be analyzed on an section 8 HAP contracts will all provide R. Section 401.601 of Interim Rule and ‘‘as is’’ basis, unless the repairs will be legally binding requirements upon § 402.4(a)(2) of Final Rule, accomplished through full restructuring which HUD or (to some extent) a PAE Consideration of an Owner’s Request To with a rehabilitation escrow fully can bring enforcement action. Specific Renew an Expiring Contract Without a funded at closing, or as otherwise circumstances such as status of the Restructuring Plan specified in the Operating Procedures property’s financing, type and level of Guide. section 8 assistance and past PAE Summary of Section 2. Determining adequacy of DSC at experiences with enforcement under This section provides a procedure for comparable market rents. Mark-to-Market and other programs will considering an eligible owner’s request According to one commenter, this dictate the appropriate enforcement for renewal of an expiring contract section should only provide for mechanism. Additionally, in every case, without requesting a Restructuring Plan. verification of the owner’s the recorded Use Agreement will Rents would be reduced to comparable determination of market rents with no provide recourse for the various market rents. HUD or the PAE will underwriting (which would encourage beneficiaries. determine whether renewal under owner opt-outs from project-based Q. Section 401.595, Contract Provisions § 402.4 at comparable market rents assistance contracts.) Two other would be sufficient to maintain an commenters, however, asked for an Summary of Section adequate debt service coverage ratio on independent HUD/PAE assessment of This section provides that the the first mortgage and necessary project capital and project operating needs. provisions of 24 CFR chapter VIII (i.e., reserves. If so, the contract renewal will Another commenter questioned the other section 8 program requirements) be processed under § 402.4. If not, a statutory basis for reviewing the will apply to contracts renewed under Restructuring Plan must be developed adequacy of debt service coverage at part 401 only to the extent, if any, by a PAE before further consideration of comparable market rents. provided in the section 8 contract. the owner’s request. HUD response: OMHAR will make a In the final rule, this section is moved determination (on the basis of the PAE’s Summary of Comments without substantive change to review) that renewal with rents reduced One commenter wanted an § 402.4(a)(2), so that part 402 will to market rents with no debt explanation of the section which the contain all requirements for contract restructuring will not jeopardize the commenter thought was unclear. The renewals under the authority of section long term financial and physical commenter asked whether the rule 524 of MAHRA. When the complete part integrity of the property. Debt service referred only to regulations not required 402 is published in final form, HUD will coverage (at reduced rents with by section 8 itself, and whether HUD make any further changes to expected operating expenses), the intended the contract to substitute for § 402.4(a)(2) that are needed to reflect adequacy of the reserves for regulations governing management and HUD’s final resolution of the comments replacement, and the physical condition

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00026 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15477 of the property will be analyzed prior to One commenter asked HUD to make Act, 1999) that owners of projects the Secretary’s discretionary renewal clear in the rule that HUD expects eligible for Mark-to-Market restructuring pursuant to section 524(a). appropriations for tenant-based must also give a 120 day notice of their assistance to protect displaced. intent to opt out. S. Section 401.602, Tenant Protection if HUD response: Owners are required 3. Rent levels for tenant-based an Expiring Contract Is Not Renewed to provide adequate notice to tenants assistance. Summary of Section and HUD if they intend to discontinue One commenter questioned the lack the provision of project-based of guidance on rent levels for enhanced An owner of an eligible project is not assistance, so that tenant-based vouchers for opt-outs. Two commenters required to request renewal of an assistance will be available for the said the rule should guarantee that the expiring contract, but the owner must tenants when the project-based vouchers provided through a give advance notice of non-renewal as assistance expires. As recently amended Restructuring Plan are ‘‘enhanced’’ or required by statute. (The underlying by section 535 of Pub. L. 106–74, ‘‘sticky’’, and another commenter statutory provisions have changed since section 8(o)(8)(A) of the United States wanted the final rule to clarify whether the interim rule took effect, as discussed Housing Act of 1937 requires the such vouchers are enhanced. Two in Section I.B. of this preamble.) In owner’s notice to state that ‘‘in the event commenters also wanted vouchers to be determining the application of the of termination [of project-based enhanced whenever an owner is notice provisions of section 514(d) of assistance] the Department of Housing rejected for renewal and where an MAHRA and section 8(c)(9) of the 1937 and Urban Development will provide owner opts out. One commenter cited Act, as they existed when the interim tenant-based assistance to all eligible section 405(a) of the Balanced Budget rule took effect, § 401.602 of the interim residents, enabling them to choose the Downpayment Act, I and language in rule distinguished between an owner of place they wish to rent, which is likely appropriations Act as authority for an eligible project who requested to include the dwelling unit in which permitting rents under some tenant- restructuring (considered subject to they currently reside.’’ based assistance that exceed the levels section 514(d) notice requirement) and 2. Notice issues. of ‘‘enhanced’’ vouchers under section an owner of an eligible project who did a. 6-month notice of non-renewal. 515(c)(4), and relocation costs. not request restructuring or who was Some comments on notice to tenants HUD response: Section 538 of Pub. L. rejected by HUD or the PAE (considered addressed the interim rule provisions 106–74 now provides uniform guidance subject to the section 8(c)(9) notice providing for 6-month notice in some for enhanced vouchers. It is reflected in requirement.) The interim rule also cases and 12-month notice in others, this final rule. provided that an owner of an eligible based on HUD’s interpretation of 4. Timing of tenant-based assistance. project who does not give the proper statutory provisions in effect when the Two commenters said that tenant- interim rule was published. Subsequent notice must continue to permit tenants based assistance should be available legislation has changed the 6-month to stay in their units without increasing sufficiently early prior to termination/ notice provision to a 12-month notice. the tenant portion of the rent for a expiration so that tenants can relocate or specified period beginning on the earlier HUD response: HUD has made changes in the final rule corresponding have assistance in place in time; one of the date proper notice was given or suggested 4 months. Another the date the contract expires. to statutory changes and therefore comments on the 6-month notice commenter wanted HUD to provide a Section 401.602 of the interim rule provision are no longer germane. short-term extension of project-based also required HUD to make tenant-based b. When is notice required? Three assistance to provide necessary time for assistance available to tenants in two commenters said that a failure to renew tenants to prepare when an owner is circumstances: (1) To all tenants because HUD found the owner ineligible rejected only a short time before the residing in units assisted under the for contract renewal should not require project-based assistance expires. expiring contract if the owner of an a notice to tenants. Similarly, one HUD response: These comments are eligible project chooses not to extend or commenter felt notice was not required generally consistent with existing HUD renew project-based assistance (as if an owner refuses to accept a policy to provide adequate time for provided in section 514(d) of MAHRA) restructuring plan approved by HUD. tenants to find alternative housing. and (2) to all tenants residing in a Two others wanted tenant notice in all T. Section 401.606, Tenant-Based project who are low-income families or opt-out or non-renewal situations, Assistance Provisions for Displaced are receiving tenant-based assistance at including owner ineligibility and Tenants the time HUD or the PAE reject an conversion to tenant-based assistance owner of an eligible project for under a restructuring plan. One Summary of Section restructuring (as provided in section commenter felt that any notice Section 401.606 complies with 516(d) of MAHRA). Section 401.606 of requirement in connection with an section 515(c) of MAHRA by providing the interim rule required tenant-based ‘‘interim’’ contract renewal at existing that, if the Restructuring Plan provides assistance to be offered to each assisted rents under section 514(c) pending for tenant-based assistance, assistance family residing in a project at the time restructuring should be satisfied by under 24 CFR part 982 will be offered it is restructured with a conversion to notice given when the contract is to each eligible family assisted under tenant-based assistance. The interim approved. the section 8 project-based assistance rule did not address the availability of HUD response: One-year notice is contract on the date of expiration. tenant-based assistance in other now required by statute regardless of the situations of non-renewal of project- reason for termination of the contract. Summary of Comments based assistance. Additionally, new § 401.602(a)(1)(ii) of One commenter said the rule should Summary of Comments the final rule reflects the new statutory provide that ‘‘reasonable rent’’ for requirement (section 549(c) of section 515(c)(4) vouchers is the 1. Is tenant-based assistance Departments of Veterans Affairs and restructured rent in the Restructuring discretionary or mandatory if project- Housing and Urban Development, and Plan which must be pegged to actual based assistance is not renewed? Independent Agencies Appropriations market rents, and that the payment

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00027 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 15478 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations standard for the vouchers must continue and to the program in general, the interim rule was ‘‘sorely’’ lacking in due to be the ‘‘reasonable rent’’ for all statute does not contemplate tenant process and said that it was renewals of tenant-based assistance as access to the dispute and appeals unreasonable to limit review of adverse long as the tenant stays in the project. procedures. decisions to an informal review, given Three other commenters said that since 2. PAE appeals of rejections under the possible severe economic section 515(c)(4) of MAHRA is merely § 401.405. consequences of such decisions. The referenced in the interim rule, § 401.606 One commenter suggested that PAEs commenter suggested using HUD’s should expressly state that the should have the right to object to HUD’s established procedures for dealing with ‘‘reasonable rent’’ shall be at comparable rejection of a restructuring plan, given administrative appeals. The other market rents (instead of merely not that PAEs have statutory responsibility commenter suggested requiring that the exceeding market, as stated in the for developing the plan. In addition, the official conducting the appeal should be statute). commenter suggested that because knowledgeable about the Mark-to- HUD response: Section 538 of Pub. L. objection and appeal by a PAE is not Market program. This commenter also 106–74 revised the vouchers provisions encompassed by section 516(b) of suggested that the official conducting of MAHRA to provide for enhanced MAHRA, HUD is without authority to the appeal should not be involved in vouchers on the same terms as extend a final determination on the any adverse action with the affected enhanced vouchers authorized by other PAE’s objection that is exempt from owner, in order to avoid a conflict of statutes. The final rule reflects this judicial review under MAHRA section interest. statutory change. 516(c). HUD response: The appeals procedure HUD response: There is no statutory strikes a balance between the need for U. Sections 401.645 and 401.651 requirement to provide the PRA with a expeditious resolution of cases and the Owner Dispute of Rejection and specific administrative dispute and need to provide substantial notice and Administrative Appeals appeal right independent of the owner, opportunity to be heard. The procedures Summary of Sections nor is the PAE likely to have any detailed in the final rule provide standing to pursue a judicial challenge adequate protection for owners. The Section 401.645 provides the owner (for which the final rule’s dispute and an opportunity to dispute if any of the final rule requires notice and an appeals right serves as a substitute in opportunity to be heard, and an appeal following occur: (1) A request for a the case of an owner). HUD feels that Restructuring Plan is rejected; (2) a right in the event of an unfavorable the legal interests that should be decision. All cases will be handled request for a section 8 contract renewal protected by guaranteed access to a is rejected; (3) a PAE cannot continue carefully by knowledgeable and specific administrative dispute/appeal responsible OMHAR officials. with a Restructuring Plan because of procedure are those of the project owner lack of owner cooperation under who may end up in mortgage default if V. Section 401.600, Will a Section 8 § 401.402; or (4) HUD rejects a proposed the mortgage is not restructured and Contract Be Extended if It Would Expire Restructuring Commitment submitted future section 8 project-based assistance While an Owner’s Request for a by a PAE. HUD or the PAE will notify is decreased or denied. This is in Restructuring Plan Is Pending? the owner of the reasons for a rejection keeping with MAHRA. Summary of Section and provide a 30-day period to submit HUD will, of course, be open to written objections or cure the problem. further discussion with a PAE if a PAE Under § 401.600, an owner who has If an objection is submitted, HUD or the is convinced that rejection of a requested development of a PAE will send the owner a final particular proposed Restructuring Plan Restructuring Plan may receive a section decision affirming, modifying, or is not in the best interests of the project 8 contract extension at current rents for reversing the initial rejection with or the public, and that the Plan cannot the shortest reasonable period needed reasons for the decision. This final be modified to respond to HUD’s for the PAE to complete a Restructuring decision may be appealed within 10 objections. The Operating Procedures Plan for the project. Any extension of days through the procedures in Guide provides a 10-day PAE comment the contract beyond 1 year pending § 401.651, which permit an owner to period for this purpose, but HUD closing on the Restructuring Plan would make a presentation (written, oral, and/ reserves the right to modify or dispense be at comparable market rents or or through a representative) at a with this procedure in the future exception rents. conference with an official of HUD who without rulemaking. Summary of Comments was not involved in making the decision 3. Time for owner to dispute approved under appeal. The HUD or PAE official plan. One commenter said that a delay in who issued the decision under appeal One commenter said that an owner restructuring due to reasons outside the may also participate. needs more than 10 days to decide how control of an owner should not lead to rent reduction. Another warned about Summary of Comments to respond to an approved Restructuring Plan under § 401.405, and suggested 30 the need to be sensitive to tenant 1. Tenant appeals. days. displacement difficulties, saying that Three commenters felt that the HUD response: Owners will receive a HUD should extend or renew a contract dispute and appeals procedures should draft of the Restructuring Plan at least during any administrative appeal period be extended to tenants. 10 days before the Plan is given to HUD for a determination of ineligibility and HUD response: Tenant input into for review and will have the Plan to for long enough for vouchers to be administrative procedures will be review throughout HUD’s review issued. welcomed whenever appropriate. period. Accordingly, the additional 10- HUD response: Delays in the Information that may give rise to the day period for owners to review the restructuring process (unless clearly the administrative proceedings referenced Plan after HUD approval provides ample result of a lack of cooperation by the above will always be welcomed from all time for thorough owner review. owner) will not lead to a rent reduction interested parties. While tenant and 4. Owner appeals. prior to 12 months. Regardless of the local community input is critical to the One commenter felt that the cause of delay, the rents will in every success of specific Restructuring Plans administrative appeals procedure in the case be reduced after 12 months, though

VerDate 202000 14:30 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00028 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm01 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15479 the project will remain eligible to mentioned § 401.420, while three 401.2 What Special Definitions Apply continue with the restructuring. mentioned § 401.421(b)). to This Part? (OMHAR will consider a waiver if HUD response: As part of our • In the definition of eligible project, assignment of a project to a PAE was continuing effort to streamline rules, we added material from § 401.100 of the delayed through no fault of the owner.) HUD’s general approach to drafting interim rule, which was titled ‘‘Which We note that the restructuring process rules now concentrates on the projects are eligible for a Restructuring will begin at least 90 days prior to the additional policy guidance needed to Plan under this part?’’ This avoids original expiration and we urge owners fill the gaps in matters expressly duplication, and recognizes that the concerned about this issue to exercise covered by statutory language, while term ‘‘eligible project’’ is used in parts their option of entering the program minimizing repetition of statutory 401 and 402 in a manner that is early. HUD is sensitive to tenant language that is already clear and that intended to include the provisions that displacement issues and will provide is not amplified in a rule. In response were in § 401.100 of the interim rule. tenant vouchers in a timely manner. to these concerns of commenters, Section 401.100 is removed in the final W. Miscellaneous Comments on Part however, we carefully reviewed the rule. We also added that an eligible 401 places where the interim rule referenced project must have a first mortgage that statutory language to reconsider The following miscellaneous has not been restructured under part whether there would any benefit of 401 or under a demonstration program comments on part 401 were made by at added clarity or readability that would least one commenter: to reflect our understanding of statutory outweigh the disadvantage of more intent. 1. When do contract rents need to be language added to an already long and Some projects under demonstration adjusted under a Restructuring Plan complex rule. As a result of this review, programs received restructuring of rents when an owner applies in advance of we have added more of the statutory to budget-based levels without debt the contact expiration date? language in §§ 401.411(b), 401.420(a) HUD response: The contract rents restructuring. Under HUD’s and 401.421(b). would be adjusted upon restructuring. interpretation of MAHRA as originlly 2. Can Mark-to-Market restructuring 6. Lenders should be compensated for enacted, all such projects were eligible use a structure from the Portfolio restructuring expenses and time and for Mark-to-Market restructuring, while Reengineering demonstration programs should be considered compensable third projects with debt restructured under under which short-term tax-exempt parties under section 517(b)(5) of the demonstration programs were bonds were amortized through ‘‘excess’’ MAHRA. exeption projects. Section 531(b) of Pub. section 8 rents prior to expiration of HUD response: Lenders may charge L. 106–74 amended MAHRA to exclude existing contract? the owners reasonable fees for agreeing from eligible projects all demonstration HUD response: This will be addressed to modify existing first mortgages. projects for which HUD ‘‘determines in a revision to the Operating Reasonable and customary loan that rent restructuring is inappropriate’’. Procedures Guide. The structure is origination fees may be recognized to No change to the rule language is likely to be acceptable for cases in the extent they are supported in the needed to accomplish this result, since which the expiration date is after the amount of a new refinancing loan (as the language as drafted automatically termination date of the Mark-to-Market opposed to a modificiation of the picks up the relevant statutory change. Program. existing first mortgage). (The same is true of preservation 3. Any ‘‘guidance’’ that may lead to 7. The Paperwork Reduction Act projects described in section 531(b)). ineligibility if not followed should be in burden-hour estimates are low. Similarly, section 531(c) of the new law the rule—and to the extent matters are HUD response: We have reconsidered has the effect under current rule not included in the rule, HUD must these estimates and have revised them language of automatically including acknowledge that guidance is non- accordingly. We will pursue approval of some State-financed projects (those with binding. our revised estimates through FHA insurance and an absence of HUD response: The Operating established procedures. conflict between debt restructuring and Procedures Guide will be used as a 8. FHA’s allowable servicing fees applicable State law or financing vehicle for explaining and elaborating should be raised because the size of first agreements) as intended by Congress. upon the detailed application of mortgage will go down through • In the definition of priority substantive requirements in the final restructuring. purchaser, we clarified that a general rule, as well as addressing procedural partnership with a sole general partner and organizational matters that are not HUD response: FHA servicing fees are not governed by this final rule. that itself is a priority purchaser will be required to be included in regulations. regarded as a priority purchaser. The Guide will not be a means of III. Changes Made to Part 401 of • We added a definition of OMHAR. introducing new substantive Interim Rule • requirements that are properly the We defined voucher to mean any subject of a regulation. References are to the section number tenant-based assistance (as defined in 4. HUD must give priority to of the interim rule. section 8(f) of the United States Housing Act of 1937; see section 512(15) of affordable housing built in suburbs that 401.1 What Is the Purpose of Part 401? expands fair housing choice. MAHRA)). This definition was added to HUD response: The PAEs are We removed a sentence that stated make clear that use of the term voucher responsible for balancing the competing that part 401 contains the regulations for in the final rule, in contexts where the social and financial objectives in the the renewal of project-based assistance interim rule referred to vouchers and Restructuring Plan for each of the for eligible projects without certificates, is a non-substantive change projects assigned in their respective restructuring under the Mark-to-Market that reflects the statutory merger of the PRAs, regardless of location. Program, to recognize that § 401.601 section 8 voucher and certificate 5. HUD needs to repeat more of (regarding the ‘‘OMHAR Lite’’ programs. MAHRA’s language instead of cross- procedure) has been redesignated as • We added a new paragraph (d) referencing (one commenter specifically § 402.4(a)(2). referencing other definitions in the

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In many cases it may incorporate by reference certain clarifies that waivers of part 401 are will be more efficient to address a required matters that are adequately made by the Director of OMHAR subject problem with an owner or affiliate at the addressed in other documents. to the HUD regulations implementing earliest possible stage, so that other section 106 of the HUD Reform Act of 401.301 Partnership Arrangements approaches (such as project sale) can be [Revised Title] 1989. Ordinarily the Secretary delegates explored promptly. Later rejection both the authority to waive and issue under § 401.403 could still be possible The revised title describes the subject rules to the Assistant Secretary or if review under § 401.101 does not lead of this section more precisely. equivalent responsible for administering to immediate rejection. Owners have the 401.304 PRA Provisions on PAE a program. Because the OMHAR same appeal and dispute rights whether Compensation Director’s authority to issue part 401 rejection is under § 401.101 or § 401.403 derives directly from statute, rather than and thus are not adversely affected by In the preamble to the interim rule, from authority delegated by the this refinement in the final rule. HUD stated its intention to include Secretary, this section is advisable to more specific provisions on PAE clarify that the OMHAR Director’s 401.100 Which Projects Are Eligible for compensation in the final rule, after statutory authority to issue rules a Restructuring Plan Under this Part? negotiating arrangements for the initial encompasses the power to waive them. We removed this section and PAEs and refining the precise duties of The section implements an combined it with the definition of PAEs in the initial PRA development interpretation that OMHAR rules are ‘‘eligible project’’ in § 401.2(c). process. The final rule contains some ‘‘regulations of the Department’’ within additions to § 401.304 based on 401.101 Which Owners Are Ineligible the meaning of section 106, so that a experience to date. Regarding base fees, To Request a Restructuring Plan? waiver must be in writing, state the HUD will use an annual survey of the [Revised Title] grounds for the waiver, and be included market price for the work to determine in the Secretary’s periodic Federal As explained above, if there is a compensation for public PAEs, and a Register notice of waivers. pending HUD enforcement action competitive bid process to determine against the owner or an affiliate that is fees for private PAEs. HUD will set a 401.99 How Does an Owner Request a based on an action that is grounds for uniform per-project base fee for each Section 8 Contract Renewal? [Revised rejection under section 516 of MAHRA, public PAE. The individual components Title] HUD may decide initially not to accept of incentive packages may vary, but the We removed the interim provision a request for restructuring instead of total per-project incentive payment will that permitted an owner to submit a waiting to reject the request under be uniform for all PAEs, whether public request for contract renewal less than 90 § 401.403. We added a sentence to or private. HUD will establish annual days before the contract expiration date § 401.101 to clarify this point. We also limits for reimbursement of expenses for if that date was before January 13, 1999. revised this section so that rejection of each project, with the possibility of That provision is no longer needed. We an owner is no longer always required waivers for high-cost areas. The Director added language recognizing that an when an affiliate of the owner, but not of OMHAR must approve all fee owner eligible to request renewal under the owner itself, has already been schedules. OMHAR’s Internet website § 402.5 may instead request renewal debarred or suspended. Rejection in that will contain the standard form of PRA under § 402.4. We removed language situation will be discretionary with and compensation package, with annual that duplicated § 402.6 for owners of HUD, based on a consideration of the updating. eligible projects seeking renewal specific facts and circumstances. We without a Restructuring Plan, and made the same change to section 401.307 On-Going Responsibility of substituted a cross-reference to § 402.6. 401.403. PAE We removed a reference to affiliates due We have deleted this section because 401.200 Who May Be a PAE? to a change to § 401.101. it did not add any specific substantive Finally, the final rule requires the Although we have retained the requirement. This subject is addressed owner to certify that neither it nor an requirement that each non-public PAE in an expanded subpart D in the final affiliate has received notice from HUD must form a partnership with a public rule. of a pending suspension, debarment or purpose entity, as required by section other enforcement action (unless 513(b)(7)(A) of MAHRA, we have 401.309 PRA Term and Termination voluntary sale or transfer is proposed). omitted the requirement that such a Provisions; Other Remedies If the owner is unable to make this partnership meet all legal requirements We have added an express provision certification but does not consider that for a partnership. This will provide for termination of the PRA for the the subject of the pending suspension or some flexibility to accommodate legal convenience of the Federal Government debarment action is grounds for limitations that may restrict some public similar to the standard arrangement rejection under the standards of section purpose entities from entering into an used when the Federal Government 516 of MAHRA, the owner should arrangement that qualifies as a contracts for procurement of services. submit the rest of the certification with partnership under applicable State law, Although the PRA is not a procurement an explanation of the disagreement. if the arrangement otherwise meets the contract, the underlying need of the HUD will consider this explanation purposes of this requirement of Federal Government for a termination when determining whether to exercise MAHRA. HUD will assist individual for convenience provision is also its discretion to reject a request under non-public PAEs as needed in present for a PRA. The termination for § 401.101 (revised as discussed below). determining whether their proposed convenience provision was generally The final rule thus does not require partnership arrangement meets the authorized by § 401.300 of the interim

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Also, the final rule, the Use Agreement must 401.310 Conflicts of Interest we added language clarifying that contain a requirement for maintaining We narrowed the provision in rejection under section 516(a)(4) of the property in compliance with the paragraph (a)(1)(i) on PAE financial MAHRA and this section due to poor physical condition standards. interests to focus more precisely on condition of the project may be under We made a technical change to likely areas of conflict. We added § 401.451(c) or otherwise. Section paragraph (a) to reflect the movement of language to paragraph (d)(1)(ii) to clarify 401.451(c) provides an early formal paragraph (e) of the interim rule (now that a potential PAE that notifies HUD, step, upon completion of the Physical paragraph (k) of the final rule) and the after a request for selection but before Condition Analysis for the project, at addition of new paragraphs. These selection, of a conflict of interest must which the PAE must consider whether changes clarify that an owner’s provide a detailed description of the continuing with rehabilitation through a obligation to renew project-based conflict. Restructuring Plan will be a cost- assistance is not a matter for the effective means of ensuring affordable recorded Use Agreement, but derives 401.312 Confidentiality of Information housing for the tenants. HUD and the directly from MAHRA and this rule and We added language recognizing that PAE will continue to have the right to will be implemented by a rider to the the tenant/community participation reject a project in poor condition even section 8 HAP contract. In what is now procedures in §§ 401.500 through if it is not rejected at this early stage. For paragraph (i), we clarified that the listed 401.503 of the final rule require some example, tenant and community input interested parties will have rights to exceptions to the PAE’s general might lead HUD or the PAE to consider enforce the Use Agreement (subject to obligation to safeguard confidential the matter further. Finally, we made a modification as previously discussed) project and owner information. change regarding rejection based on with the possibility that a particular Use Agreement could specify additional 401.313 Consequences of PAE suspension or debarment of an affiliate of the owner that is explained in the enforcing parties, and added a Violations; Finality of HUD requirement for the enforcing party to Determination discussion above under section 401.101, where the same change was made. give the owner notice and a reasonable We have simplified the language opportunity to cure any violations. In regarding liability of PAEs to HUD for 401.404 Proposed Restructuring what is now paragraph (j), the final rule damages resulting from violations of the Commitment requires the owner to post on project rules on conflicts of interest, standards The final rule adds a reference to the property notice of any modifications to of conduct and confidentiality of public meeting required by § 401.500(c) the Use Agreement approved by HUD. information. We made several minor of the final rule. That meeting must be In what is now paragraph (k), we editorial changes. held at least 10 days before the removed a reference to owner Restructuring Plan and proposed acceptance of tenant-based assistance 401.314 Environmental Review Restructuring Commitment are because it was inaccurate. (Note that Responsibilities submitted to HUD under this section. new § 401.554 accurately describes the The interim rule requires HUD to We also specify in the final rule that the availability of tenant-based assistance complete any required environmental Restructuring Commitment must state required by a Restructuring Plan, review under 24 CFR part 50 before all consideration that the PAE or related consistent with section 515(a)(2) of HUD executes a Restructuring parties receives other than from HUD, in MAHRA.) Commitment. The final rule clarifies order to identify for OMHAR an area of 401.410 Standards for Determining that HUD will complete all actions potential bias or conflict of interest. Comparable Market Rents required for compliance with part 50 (including consideration of any 401.405 Restructuring Commitment In paragraph (a)(1), we clarified that environmental review and consideration Review and Approval by HUD the MAHRA comparable market rent of rejection or modification based on New language in the final rule makes standard only applies to project-based any adverse environmental impacts) it clear that a PAE must inform the assistance. Any tenant-based assistance before HUD executes a Restructuring owner when HUD rejects a provided under a Restructuring Plan Commitment. Restructuring Commitment proposed by will be subject to the similar ‘‘rent the PRA, so that the owner can decide reasonableness’’ standard of section 401.402 Cooperation With Owner and whether to dispute the rejection under 8(o)(10)(A) of the United State Housing Qualified Mortgagee in Restructuring the subpart F procedures. Act of 1937, which applies both to Plan Development enhanced and regular vouchers. We 401.408 Affordability and Use We added language to clarify that clarified that section 202/811 projects Restrictions Required owner cooperation will be demonstrated are not comparable properties for by reasonable progress in development Under new paragraph (e) of the final purposes of determining market of a Restructuring Plan. rule, the recorded Use Agreement must comparable rents. require that the owner comply with We added general language permitting 401.403 Rejection of a Request for a § 401.556 of the final rule (§ 401.483 of the PAE to make appropriate Restructuring Plan Because of Actions the interim rule) regarding adjustments when needed to ensure or Omissions of Owner or Affiliate or nondiscrimination against voucher comparison of comparable through Project Condition holders in leasing. Under new comparison with comparable properties. We added language to clarify that paragraph (f) of the final rule, the Use Examples of appropriate adjustments HUD and the PAE will refuse to Agreement must contain remedies for a would be adjustments needed due to the consider restructuring when the current breach of the Use Agreement. The non-luxury standard for Mark-to-Market owner is ineligible, because of remedies must include monetary projects (as discussed in the interim rule

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This section is to-date Comprehensive Needs third) mortgage for less than the also incorporated into part 402 and Assessment (CA) in place of a new maximum amount permitted by the applied to projects that are not evaluation, if all requirements of final rule. Additional guidance for PAEs undergoing debt restructuring. For such paragraph (a) are met. Cans must be is included in the Operating Procedures projects, the references to the PAE prepared following procedures outlined Guide. should be treated as references to HUD. in HUD Notice H 97–02 or in • To clarify the owner’s right to 401.411 Guidelines for Determining subsequent administrative guidance appeal acceleration of the second Exception Rents from HUD. mortgage does not apply when acceleration is pursuant to grounds for We have included some statutory text 401.451 PAE Physical Condition acceleration that are specified in section that was cross-referenced in the interim Analysis (PCA) 517(a)(4)(A) and (B) of MAHRA, since rule, clarified that exception rents only We have revised the heading of they do not involve the type of complex apply to project-based assistance. paragraph (c) to emphasize that it legal or factual questions for which an 401.412 Adjustment of Rents With permits rejection of projects in such administrative appeals procedure may Operating Cost Adjustment Factor poor condition that restructuring with help to avoid unnecessary litigation. (OCAF) rehabilitation is not a cost-effective way (The grounds are termination or of continuing to ensure affordable payment in full of the first mortgage and We clarified that under this rule housing for tenants, as provided in unauthorized project sale/second OCAF applies only to project-based section 516(a)(4) of MAHRA. We added mortgage assumption.) assistance. We removed the reference to • language clarifying that a PAE can only To clarify that, upon payment of the negative OCAF. We redesignated recommend rejection, with HUD making second mortgage in full, any additional paragraphs (a) and (b) of the interim rule the final decision. (i.e., third) mortgage under this section as paragraphs (a)(1) and (a)(2) and is not automatically accelerated but is added a new paragraph (b) explaining 401.452 Property Standards for then payable upon demand by HUD or the availability of budget-based Rehabilitation as otherwise agreed by HUD (e.g., under adjustments upon request of the owner, We added an express requirement for an approved payment schedule). subject to the approval of the Secretary, • the PAE to consider marketability when To recognize circumstances under as provided in Pub. L. 106–74. planning rehabilitation. which the new HUD-held mortgage may 401.420 When Must the Restructuring be a first mortgage, in response to sec. 401.453 Reserves [New Title] Plan Require Project-Based Assistance? 213 of Pub.L. 106–74. We have included some statutory text Because paragraph (a) of this section 401.472 Rehabilitation Funding that was cross-referenced in the interim of the interim rule contains the We have included in the final rule a rule. standards that must be maintained requirement that appeared only in the while the Restructuring Plan is in effect, preamble for the interim rule: That the 401.421 Rental Assistance Assessment we moved it to subpart D Plan owner contribution include a reasonable (‘‘Implementation of the Restructuring proportion of the rehabilitation cost We have included some statutory text Plan After Closing’’). It is § 401.558 in from nongovernmental resources. HUD that was cross-referenced in the interim the final rule under a revised title. We will provide additional guidance in the rule. revised the title of this section to reflect Operating Procedures Guide regarding its narrowed scope in the final rule. 401.450 Owner Evaluation of Physical standards for determining a ‘‘reasonable Condition 401.460 Modification or Refinancing proportion’’. of First Mortgage In paragraph (a)(1), we clarified that HUD 401.473 HUD Grants for the owner’s list of work items needed to We added language to paragraph (e) to Rehabilitation Under Section 236(s) of bring the project to the property require the owner to discuss mortgage NA standard for rehabilitation that is stated modification with the existing first The final rule inserts language that in the rule and MAHRA (non-luxury mortgagee before considering other was inadvertently omitted during standard adequate for the rental market sources of first mortgage financing printing of the interim rule. As printed, for which the project was originally under the Restructuring Plan. We also the interim rule permitted delegation of approved) should include any work added language to paragraph (a) to grant administration responsibility only items needed to ensure compliance with clarify that the size of the first mortgage if grant funding were available to pay applicable requirements of 24 CFR part and monthly payments may not increase for grant administration. Nothing in 8 concerning accessibility to persons through mortgage modification but may section 236(s)(5)(A) of the National with disabilities. The interim and final increase through refinancing (e.g., a Housing Act prevents a PAE from rules permit rehabilitation to include refinancing mortgage that includes agreeing to accept delegation without improvements to meet current standards rehabilitation financing). Finally, the reimbursement of costs. HUD did not if the non-luxury standard has changed final rule acknowledges section 219 of intend to prevent it by regulation. over time. Accessibility measures are an Pub.L. 106–74, which gives priority to example of how standards have evolved risk-sharing financing in a Restructuring 401.474 Project Accounts since original project approval. The Plan if it is the best available financing We added language to paragraph (b) to addition to paragraph (a)(1) is consistent in terms of financial savings and will clarify that it is the actual release of with § 401.452, which makes it clear reduce the Federal Government’s risk of funds to the owner under this section that there is no exemption from loss. that must be delayed until after

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The 401.480 Sale or Transfer of Project that the Restructuring Plan will not PAE is never required to disclose [Revised Title] move forward, for any reason, after the expense, property valuation, or profit/ We have removed ‘‘voluntary’’ from owner has requested that a Plan be loss information without owner consent. the title of this section because it was developed or after a Plan is determined potentially misleading. Although all to be necessary under § 402.4(a)(2). The 401.550 Monitoring and Compliance projects sales will be voluntary in the interim rule language was ambigous on Agreements sense that owners must agree to them, whether notice was required in the This section requires PAE inspections some project sales may be considered absence of an OMHAR rejection. As of projects that have undergone involuntary in the sense that no revised, the final rule notice restructuring in accordance with section Restructuring Plan will be approved requirement also applies whenever an 519(b)(2) of MAHRA, subject to HUD’s under current project ownership. We owner does not take the necessary uniform inspections procedures in 24 have also revised the section to clarify actions to complete the restructuring CFR part 5, subpart G. To avoid that purchasers defined in the rule as process, including withdrawal of the duplicative inspections under such ‘‘priority purchasers’’ do not have a request to restructure or failure to procedures (such as by the mortgagee if right to priority consideration for execute an approved Restructuring the mortgage continues to be insured, as involuntary sales indefinitely, but only Commitment. provided in 24 CFR 207.260), the final rule adds a clarification that HUD will for a reasonable period that OMHAR 401.501 Delivery of Notices and accept an inspection by a PAE that will determine. By definition, priority Recipients of Notices [Revised Title] purchasers will have tenant support. complies with the uniform inspection The final rule clarifies that other The final rule requires notice to procedures in lieu of an inspection purchasers will also be required to tenants and tenant organizations, under those procedures required by any provide evidence of tenant support. directly and through posting, instead of other party. We have also added a permitting notice to a tenant sentence to make explicit what was 401.481 Subsidy Layering Limitations organization alone to suffice as tenant implicit in the interim rule—that the on HUD Funds notice as under the interim rule. Notice provisions of subpart D apply as long as Additional language clarifies that the also must now be given to the ITAG and the Use Agreement is in effect. Finally, subsidy layering certification does not OTAG grantees serving the jurisdiction we added a new paragraph (d) to this preclude a Restructuring Plan that in which the property is located. section requiring HUD to regulate the includes project reconfiguration needed 401.502 Notice Requirement When mortgagor through a regulatory to meet the needs of the community. Debt Restructuring Will Not Occur agreement as long the Secretary holds the second or additional (third) 401.483 Leasing Units to Voucher This new section provides that Holders mortgage under this rule. This would be persons who would have received in addition to any regulatory agreement Because this section concerns leasing notice of a Restructuring Plan request required in connection with FHA of units while the Restructuring Plan is under §§ 401.500–.501 will receive mortgage insurance. in effect, we moved it to Subpart D notice if the owner of an eligible project (‘‘Implementation of the Restructuring requests section 8 contract renewals 401.554 Contract Renewal and Plan After Closing’’). It is § 401.556 in without debt restructuring. HUD or the Administration [Revised Title] the final rule. PAE must make publicly available basic We added language corresponding to project identified in § 401.500(b)(1)(i), section 515(a) of MAHRA, under which 401.484 Property Management (ii) and (iv), and the Owner Evaluation HUD or a public body PAE designated Standards of Physical Condition and comparative as contract administrator must offer to Because this section concerns market rent analysis that are required in renew section 8 contracts as provided in property management standards while connection with the renewal request a Restructuring Plan, subject to the the Restructuring Plan is in effect, we (without expense or profit/loss availability of appropriations and also moved it to Subpart D. It is information). The PAE must announce a subject to the renewal authority § 401.560 in the final rule. procedure to accept public comments available at the time of each contract on this information. The PAE must 401.500 Required Notices to Third expiration. Section 524 of MAHRA (as consider the comments and document Parties and Meetings With Third Parties amended by Pub. L. 106–74) will be the the consideration for HUD. [Revised Title] renewal authority. In paragraph (b)(2) of the final rule, 401.503 Access to Information 401.556 Leasing Units to Voucher notice of the initial public meeting is This new section explicitly recognizes Holders now required no more than 40 days that a PAE, in fulfilling its This redesignated section was before the meeting, instead of 60 days as responsibilities to provide for tenant § 401.483 of the interim rule under a in the interim rule. New paragraphs (c) and community participating in slightly different title. and (d) cover a new requirement for developing a Restructuring Plan, will public notice and comment on a need to make available information 401.558 Physical Condition Standards substantively completed Restructuring about the project and the owner. In This redesignated section was Plan before the PAE submits the Plan to general, the PAE is not expected to § 401.453(a) of the interim rule under a OMHAR. A second public meeting is make public confidential or proprietary different title. We removed language also now required by new paragraph (d). information obtained from the owner. regarding duration of the requirement in New paragraph (f) (a revision of This section does require the PAE to the section because it duplicates new paragraph (c) of the interim rule) make public the Owner Evaluation of language added to § 401.550 in the final ensures that the PAE will document and Physical Condition and the owner- rule.

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401.560 Property Management 401.602 Tenant Protection if an contracts to implement statutory Standards Expiring Contract Is Not Renewed notification requirements. However, the This redesignated section was Paragraphs (a) and (b) of this section sentence being deleted went beyond § 401.484 of the interim rule. have been amended to reflect changes in what has been stated in actual contract the underlying statutory provisions. language and thus was not necessary to Subpart EÐSection 8 Requirements Specifically, Pub. L. 105–276 repealed a accomplish HUD’s intent. In addition, for Restructured Projects notice requirement of former section the sentence being deleted may be 8(c)(8) of the United States Housing Act inconsistent with the new statutory 120- 401.595 Contract and Regulatory day notice requirement mentioned Provisions of 1937, and corresponding provisions of the interim rule have therefore been above. The amendment to section 514(d) Section 401.607 of the interim rule is removed. The notice requirement of of MAHRA adding the 120-day notice combined with this section of the final former section 8(c)(9) of the 1937 Act specifically addresses the rent increase rule. The section is expressly limited to (now redesignated as section 8(c)(8)) question, as follows: If the notice is not project-based assistance because the was amended by both Pub. L. 105–276 provided, ‘‘the owner may not evict the scope is intended to be identical with and Pub. L. 106–74, so that tenants or increase the tenants’’ rent § 402.3. corresponding changes have been made payment until such time as the owner has provided the 120-day notice and 401.600 Will a Section 8 Contract Be in the corresponding interim rule such period has elapsed.’’ This appears Extended if It Would Expire While an provisions of this section. Also, Pub. L. to require both actual notice and Owner’s Request for a Restructuring 105–276 added an additional 120-day Plan Is Pending? notice requirement for contract passage of time before an owner may increase rents. In the preamble to the interim rule, terminations by owner who chose to HUD indicated that it would typically pursue restructuring, with restrictions 401.605 Project-Based Assistance exercise its discretion under this section on rent increase and evictions during Provisions to provide a contract extension at the notice period, and this section of the We added language to clarify that this existing rents for up to 1 year by final rule reflects those provisions. section applies to the initial rents upon initially providing an extension of no We also added language in paragraph restructuring and not to subsequent more than 9 months. Upon further (a) specifying that required notice to contract renewals. consideration, HUD currently expects to HUD is to be sent instead to the contract initially extend a contract at existing administrator if there is one, reflecting 401.606 Tenant-Based Assistance rents for 1 year, subject to the rule established practice. We made a change Provisions provision permitting contract to clarify that an owner cannot give We added language similar to the termination for an owner who is notice under paragraph (a) while addition to § 401.602(c) described above uncooperative or who is rejected for simultaneously pursuing a regarding eligibility under tenant-based Mark-to-Market restructuring. We Restructuring Plan and contract assistance program regulations. We also expect to make an exception for an renewal. revised the second sentence to conform owner that executed a Restructuring We added language to paragraph (c) to to section 538 of Pub. L. 106–74 of Commitment under a demonstration clarify two points: (1) HUD’s statutory enhanced vouchers. program but failed to proceed. Although obligation to make tenant-based 401.607 Contract Term such an owner is eligible to request a assistance available in certain Restructuring Plan under part 401 and circumstances described in paragraphs This section of the interim rule is a contract extension under this section, (c)(1) and (c)(2) (corresponding to removed and its language is added to the owner will usually be given an sections 514(d) and 516(d) of MAHRA) § 401.595 of the final rule. is subject to the usual eligibility extension at existing rents for a period 401.650 When May the Owner Make requirements in the tenant-based that is substantially shorter than a full an Administrative Appeal of a Final assistance program regulations, and (2) additional year. There is no change in Decision Under This Subpart? the actual rule language for this section. tenant-based assistance is available pursuant to this section only when We made a conforming change to 401.601 Consideration of an Owner’s project-based assistance is not renewed. reflect the change to § 401.461(b)(4) Request To Renew an Expiring Contract Pub. L. 106–74 provides for enhanced regarding appeal of acceleration of the for an Eligible Project Without a vouchers to certain tenants when second mortgage. Restructuring Plan project-based assistance is not 401.651 Appeal Procedures We redesignated this section as continued, and this is reflected in a § 402.4(a)(2) but made no substantive revision to paragragh (c). We added language to paragraph (c) to revisions except as follows. We added We added cross-references to rejection clarify that a HUD official is disqualified language that ensures that a HUD or a under § 401.451 for poor project from considering an appeal only of a PAE will take into account tenant and condition to supplement existing cross- matter that the official (or someone the community comments received under references to rejection for that reason official reports to) was directly involved new § 401.502 about whether contract under § 401.403. Finally, we deleted a in, not every matter that falls within the renewal without a Restructuring Plan sentence of § 401.602(b) of the interim official’s general area of responsibility. would be sufficient to maintain both rule that stated that the period during IV. Findings and Certifications adequate debt service coverage and which rents may not be raised begins on necessary replacement reserves. The the earlier of the date of actual notice to Paperwork Reduction Act final rule also makes it clear that HUD, tenants or the date of contract The information collection not the PAE, will make the final expiration. HUD’s intent in including requirements contained in this rule have decision to require a Restructuring Plan. this language in the interim rule was to been approved by the Office of A conforming change was made to provide an express regulatory basis for Management and Budget (OMB) in § 402.1 to reflect the section language restricting rent increases that accordance with the Paperwork redesignation. had previously been included in Reduction Act of 1995 (44 U.S.C. 3501–

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3520) and assigned OMB approval effect on the FHA insurance funds. As assigned to the PAE. No more projects number 2502–0531. An agency may not the preamble to the rule explains, will be assigned to a PAE than a PAE conduct or sponsor, and a person is not section 8 assistance is costly to the is able and willing to deal with. Each required to respond to, a collection of Federal Government and the cost is nonprofit and for-profit PAE will information unless the collection rising. To preserve affordable housing, partner with a public entity to provide displays a valid control number. Congress determined that reduction of additional resources and reduce the section 8 assistance was necessary. Environmental Impact burden of undertaking restructuring. Reduction or elimination of section 8 Nothing in the final rule imposes a A Finding of No Significant Impact assistance without some type of disproportionate burden on a small (FONSI) with respect to the transition or conversion process may entity. environment for the interim rule was mean that current projects assisted by made in accordance with HUD section 8 may be unable to meet their Executive Order 13132, Federalism regulations in 24 CFR part 50 that financial obligations including implement section 102(2)(C) of the operating expenses, current and future This final rule does not have National Environmental Policy Act of capital needs, and debt service Federalism implications and does not 1969 (42 U.S.C. 4223). The Finding is payments—particularly payments on impose substantial direct compliance available for public inspection between FHA-insured mortgages. To avoid this costs on State and local governments or 7:30 a.m. and 5:30 p.m. weekdays in the situation, the authorizing legislation and preempt State law within the meaning Office of the Rules Docket Clerk, Office this final rule provides for a mortgage of the Executive Order. of General Counsel, Room 10276, restructuring program. Department of Housing and Urban In this final rule, the Department Unfunded Mandates Reform Act Development, 451 7th Street, SW, strives to provide flexible requirements Title II of the Unfunded Mandates Washington, DC 20410. That FONSI in order to reduce any burden on small Reform Act of 1995 (UMRA) establishes continues to apply for this final rule. entities. Owners of eligible projects that requirements for Federal agencies to are small entities, who might otherwise Executive Order 12866 assess the effects of their regulatory be unable to meet their monthly actions on State, local, and tribal The Office of Management and Budget mortgage payments after HUD reduces governments, and the private sector. (OMB) reviewed this final rule under section 8 rents to comparable market This rule does not impose any Federal Executive Order 12866, Regulatory rents as mandated by law, are provided Planning and Review. OMB determined an opportunity to receive a reduction in mandates on any State, local, or tribal that this rule is a ‘‘significant regulatory monthly mortgage payments if they governments, or on the private sector, action’’ (but not economically request a mortgage restructuring under within the meaning of the UMRA. significant) as defined in section 3(f) of the rule. As conditions of the mortgage List of Subjects the Order. The final rule will have restructuring the owners will be effects outside the government, such as required to rehabilitate the project so 24 CFR Part 401 rehabilitation costs and associated that it meets minimum standards of benefits of improved housing. Based on housing quality and to provide for Grant programs-housing and experience under earlier demonstration competent management. These are not community development, Housing, authority, HUD has estimated that these new economic burdens on owners, but Housing assistance payments, Housing effects outside of the Government do not are project matters which owners standards, Insured loans, Loan total more than $100 million annually. already have a responsibility to address programs-housing and community Any changes made in this final rule and should be addressing even without development, Low and moderate subsequent to its submission to OMB mortgage restructuring. The only actions income housing, Mortgage insurance, are identified in the docket file. The required of the owner are those needed Mortgages, Rent subsidies, Reporting docket file is available for public to ensure that a project provide decent and recordkeeping requirements. inspection between 7:30 a.m. and 5:30 and safe housing to those intended to 24 CFR Part 402 p.m. weekdays in the Office of the Rules benefit from the Federal programs Docket Clerk, Office of General Counsel, involved (FHA mortgage insurance and Housing, Housing assistance Room 10276, Department of Housing section 8 housing assistance payments.) payments, Low and moderate income and Urban Development, 451 Seventh Again, under existing HUD regulations housing, Rent subsidies. Street, SW, Washington, DC. and contracts, owners are now subject to a decent, safe, and sanitary standard or For the reasons set forth in the Regulatory Flexibility Act a good repair standard. Owners preamble, 24 CFR Chapter IV is The Secretary, in accordance with the choosing to request a mortgage amended to read as follows: Regulatory Flexibility Act (5 U.S.C. restructuring under this final rule will 1. The chapter heading is revised to 605(b)), has reviewed this final rule continue to serve the same tenant read as follows: before publication and by approving it income mix as before and will not be certifies that this rule does not have a required to provide additional CHAPTER IVÐOFFICE OF HOUSING AND significant economic impact on a affordable housing. OFFICE OF MULTIFAMILY HOUSING substantial number of small entities. Some of the Participating ASSISTANCE RESTRUCTURING, The rule implements legislation that DEPARTMENT OF HOUSING AND URBAN Administrative Entities (PAEs) selected DEVELOPMENT created a Mark-to-Market Program under the final rule, such as nonprofit through which section 8 rents for organizations and for-profit entities, 2. Part 401 is revised to read as multifamily projects with HUD-insured may be small entities. In the final rule follows: or HUD-held mortgages will be reduced HUD has chosen to preserve for the PAE in order to preserve low-income rental substantial discretion, within the limits PART 401Ð MULTIFAMILY HOUSING housing affordability while reducing the of the statute, to choose the most cost- MORTGAGE AND HOUSING long-term costs of project-based rental effective way of undertaking the ASSISTANCE RESTRUCTURING assistance and minimizing the adverse mortgage restructuring of projects PROGRAM (MARK-TO-MARKET)

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Subpart AÐGeneral Provisions; Eligibility 401.474 Project accounts. sufficiency plan, nonprofit organization, Sec. 401.480 Sale or transfer of project. qualified mortgagee, portfolio 401.1 What is the purpose of part 401? 401.481 Subsidy layering limitations on restructuring agreement, participating 401.2 What special definitions apply to this HUD funds. administrative entity, project-based 401.500 Required notices to third parties part? assistance, renewal, State, tenant-based 401.3 Who may waive provisions in this and meetings with third parties. part? 401.501 Delivery of notices and recipients assistance, and unit of general local 401.99 How does an owner request a of notices. government. section 8 contract renewal? 401.502 Notice requirement when debt (c) Other terms. As used in this part, 401.101 Which owners are ineligible to restructuring will not occur. the term— request Restructuring Plans? 401.503 Access to information. Affiliate means an ‘‘affiliate of the Subpart BÐParticipating Administrative Subpart DÐImplementation of the owner’’ or an ‘‘affiliate of the Entity (PAE) and Portfolio Restructuring Restructuring Plan after Closing purchaser’’, as such terms are defined in Agreement (PRA) 401.550 Monitoring and compliance section 516(a) of MAHRA. 401.200 Who may be a PAE? agreements. Applicable Federal rate has the 401.201 How does HUD select PAEs? 401.552 Servicing of second mortgage. meaning given in section 1274(d) of the 401.300 What is a PRA? 401.554 Contract renewal and Internal Revenue Code of 1986, 26 401.301 Partnership arrangements. administration. U.S.C. 1274(d). 401.302 PRA administrative requirements. 401.556 Leasing units to voucher holders. 401.303 PRA indemnity provisions for 401.558 Physical condition standards. Community-based nonprofit SHFAs and HAs. 401.560 Property management standards. organization means a nonprofit 401.304 PRA provisions on PAE organization that maintains at least one- compensation. Subpart EÐSection 8 Requirements for third of its governing board’s 401.309 PRA term and termination Restructured Projects membership for low-income tenants provisions; other remedies. 401.595 Contract and regulatory provisions. from the local community, or for elected 401.310 Conflicts of interest. 401.600 Will a section 8 contract be representatives of community 401.311 Standards of conduct. extended if it would expire while an organizations that represent low-income 401.312 Confidentiality of information. owner’s request for a Restructuring Plan 401.313 Consequences of PAE violations; is pending? tenants. finality of HUD determination. 401.601 [Reserved] Comparable market rents has the 401.314 Environmental review 401.602 Tenant protections if an expiring meaning given in § 401.410(b). responsibilities. contract is not renewed. Disabled family has the meaning Subpart CÐRestructuring Plan 401.605 Project-based assistance provisions. given in § 5.403(b) of this title. 401.606 Tenant-based assistance Elderly family has the meaning given 401.400 Required elements of a provisions. Restructuring Plan. in § 5.403(b) of this title. 401.401 Consolidated Plans. Subpart FÐOwner Dispute of Rejection and Eligible project means a project that: 401.402 Cooperation with owner and Administrative Appeal (1) Has a mortgage insured or held by qualified mortgagee in Restructuring 401.645 How does the owner dispute a Plan development. HUD; notice of rejection? (2) Receives project-based assistance 401.403 Rejection of a request for a 401.650 When may the owner make an Restructuring Plan because of actions or expiring on or after October 1, 1998; administrative appeal of a final decision omissions of owner or affiliate or project under this subpart? (3) Has current gross potential rent for condition. 401.651 Appeal procedures. the project-based assisted units that 401.404 Proposed Restructuring exceeds the gross potential rent for the Commitment. 401.652 No judicial review. 401.405 Restructuring Commitment review Authority: 12 U.S.C. 1715z–1 and 1735f– project based assisted units using and approval by HUD. 19(b); 42 U.S.C. 1437f note and 3535(d). comparable market rents; 401.406 Execution of Restructuring (4) Has a first mortgage that has not Commitment. Subpart AÐGeneral Provisions; previously been restructured under this 401.407 Closing conducted by PAE. Eligibility part or under a Reengineering 401.408 Affordability and use restrictions demonstration program; required. § 401.1 What is the purpose of part 401? (5) Is not described in section 514(h) 401.410 Standards for determining This part contains the regulations comparable market rents. of MAHRA; and 401.411 Guidelines for determining implementing the authority in the (6) Otherwise meets the definition of exception rents. Multifamily Assisted Housing Reform ‘‘eligible multifamily housing project’’ 401.412 Adjustment of rents based on and Affordability Act of 1997 (MAHRA) in section 512(2) of MAHRA. operating cost adjustment factor (OCAF) for the Mark-to-Market Program. Section HUD means the Director of OMHAR or budget. 511(b) of MAHRA details the purposes, 401.420 When must the Restructuring Plan or a HUD official authorized to act in and section 512(2) details the scope, of lieu of the Director, when used in require project-based assistance? the Program. 401.421 Rental Assistance Assessment Plan. reference to provisions of MAHRA that 401.450 Owner evaluation of physical § 401.2 What special definitions apply to give responsibilities to the Director, and condition. this part? otherwise has the meaning given in 401.451 PAE Physical Condition Analysis (a) MAHRA means the Multifamily § 5.100 of this title. (PCA). NA means the National Housing Act, 401.452 Property standards for Assisted Housing Reform and rehabilitation. Affordability Act of 1997, title V of Pub. 12 U.S.C. 1702 et seq. 401.453 Reserves. L. 105–65, 42 U.S.C. 1437f note. OMHAR means the Office of 401.460 Modification or refinancing of first (b) Statutory terms. Terms defined in Multifamily Housing Assistance mortgage. section 512 of MAHRA are used in this Restructuring. 401.461 HUD-held second mortgage. part in accordance with their statutory Owner means the owner of a project 401.471 HUD payment of a section 541(b) and any purchaser of the project. claim. meaning. These terms are: comparable 401.472 Rehabilitation funding. properties, expiring contract, expiration PAE means a participating 401.473 HUD grants for rehabilitation under date, fair market rent, mortgage administrative entity as defined in section 236(s) of NHA. restructuring and rental assistance section 512(10) of MAHRA, or HUD

VerDate 202000 18:21 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00036 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm02 PsN: 22MRR3 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations 15487 when appropriate in accordance with (1) Project rents are above comparable criteria established in 513(b) of MAHRA section 513(b)(4) of MAHRA. market rents; and and criteria established by HUD. The PCA means a physical condition (2) The owner is not suspended or selection method is within HUD’s assessment of a project prepared by a debarred or has been notified by HUD discretion, including but not limited to PAE under § 401.451. of any pending suspension or a request for qualifications. PRA means a portfolio restructuring debarment or other enforcement action, (b) Priority for public agencies. HUD agreement as defined in section 512(9) or, if so, a voluntary sale transfer of the will provide a one-time priority period of MAHRA. property is proposed in accordance with for State housing finance agencies and Priority purchaser means a purchaser § 401.480. local housing agencies to qualify as the of a project, meeting qualifications (b) Eligible but not requesting PAEs for their jurisdictions. If more than established by HUD, that is: Restructuring Plan. If an owner is one agency qualifies for the same (1) A tenant organization; eligible for a Restructuring Plan but jurisdiction, HUD will provide an (2) A tenant-endorsed community- requests a renewal of project-based opportunity for the agencies to allocate based nonprofit organization or public assistance without a Plan, in accordance responsibility for projects in the agency; or with the applicable requirements in jurisdiction. If the agencies are unable to (3) A limited partnership with a sole § 402.6 of this chapter, HUD will agree, HUD will choose a PAE in general partner that itself is a priority consider the request in accordance with accordance with section 513(b)(2) of purchaser under this definition. § 402.4(a)(2) of this chapter. MAHRA. Rental Assistance Assessment Plan (c) Not eligible for Restructuring Plan. (c) Qualification for PAE by nonprofit means the plan described in section Section 402.5 of this chapter addresses and for-profit entities. After the priority 515(c)(2) of MAHRA. renewal of project-based assistance for a period expires, HUD will consider other Restructured rent means the rent project not eligible for a Restructuring eligible entities as PAEs for jurisdictions determined at the time of restructuring Plan. An owner of such a project may in which no public agency has qualified in accordance with section 514(g) of also request renewal under § 402.4. as the PAE, or for projects that have not MAHRA. been assigned to a qualified public § 401.101 Which owners are ineligible to agency. Restructuring Plan or Plan means the request Restructuring Plans? Mortgage Restructuring and Rental (d) No PAE for project. If HUD does (a) Mandatory rejection. The request Assistance Sufficiency Plan described in not select a PAE for a project, HUD may of an owner of an eligible project will section 514 of MAHRA. perform the functions of the PAE, or not be considered for a Restructuring Section 8 means section 8 of the contract with other qualified entities to Plan if the owner is debarred or United States Housing Act of 1937, 42 perform those functions. suspended under part 24 of this title. U.S.C. 1437f. (b) Discretion to reject. HUD may also § 401.300 What is a PRA? Section 541(b) claim means a claim decide not to accept a request for a A PRA is an agreement between HUD paid by HUD under an insurance Restructuring Plan if: and a PAE that delineates rights and contract under authority of section (1) An affiliate is debarred or responsibilities in connection with 541(b) of the National Housing Act, 12 suspended under part 24 of this title; or development and implementation of a U.S.C. 1735f–19(b). (2) HUD notifies the owner that HUD Restructuring Plan. The PRA must Tenant organization of a project is engaged in a pending suspension, contain or incorporate by reference the means an organization that meets debarment or other enforcement action matters required by section 513(a)(2) of regularly, whose officers are elected by against an owner or affiliate, and the MAHRA and §§ 401.301 through a majority of heads of households of grounds for the pending action are 401.314, as well as other terms and occupied units in the project, and included in § 401.403(b)(2)(ii). conditions required by HUD. whose membership is open to all (c) Exception for sale. This section tenants of the project. does not apply if a sale or transfer of the § 401.301 Partnership arrangements. Unit of local government means the property is proposed in accordance with If the PAE is in a partnership, the PRA smallest unit of general local § 401.480. must specify the following: government in which the project is (a) The responsibilities of each located. Subpart BÐParticipating partner regarding the Restructuring Voucher means any tenant-based Administrative Entity (PAE) and Plan; assistance. Portfolio Restructuring Agreement (b) The resources each partner will (d) Conflicts of interest. Additional (PRA) provide to accomplish its designated definitions applicable to §§ 401.310 responsibilities; and § 401.200 Who may be a PAE? through 401.313 appear in § 401.310. (c) All compensation to each partner, A PAE must qualify under the whether direct or indirect. § 401.3 Who may waive provisions in this definition in section 512(10) of part? MAHRA. It must not have any § 401.302 PRA administrative The Director of OMHAR may waive outstanding violations of civil rights requirements. any provision of this part, subject to laws, determined in accordance with (a) Inapplicability of certain § 5.110 of this title. criteria in use by HUD. If the PAE is a requirements. Parts 84 and 85 of this private entity, whether nonprofit or for- title and contract procurement § 401.99 How does an owner request a profit, it must enter into a partnership requirements do not apply to a PRA. section 8 contract renewal? with a public purpose entity, which (b) Recordkeeping. The PAE must (a) Requesting Restructuring Plan. An may include HUD. A PAE may delegate keep complete and accurate records of owner may request a section 8 contract responsibilities only as agreed in the all activities related to the PAE’s renewal as part of a Restructuring Plan PRA. performance under the PRA. The PAE by, at least 3 months before the must retain the records for at least 3 expiration date of any project-based § 401.201 How does HUD select PAEs? years after the PRA terminates. assistance, certifying to HUD that to the (a) Selection of PAE. HUD will select (c) Inspection of records and audit. best of the owner’s knowledge: qualified PAEs in accordance with the Upon reasonable notice, the PAE must

VerDate 202000 17:20 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00037 Fmt 4701 Sfmt 4700 E:\FR\FM\22MRR3.SGM pfrm11 PsN: 22MRR3 15488 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Rules and Regulations permit the Comptroller General of the continuing activities if the PRA is not the relevant facts to question the United States and HUD (including renewed. integrity or impartiality of those who are representatives of the HUD Office of (b) Termination for cause or or will be acting under the PRA; or Inspector General) to inspect, audit, and convenience of Federal Government. (1) (iii) Is taking an adverse position to copy any records required to be retained Termination for cause. HUD may HUD or to an owner whose project is under this section. terminate a PRA at any time for cause, covered by a PRA in a lawsuit, with payment required by HUD as administrative proceeding, or other § 401.303 PRA indemnity provisions for provided in the PRA only for matters contested matter. SHFAs and HAs. authorized by the PRA and performed (2) Control means the power to vote, When a PRA requires HUD to by the PAE to the date of termination. directly or indirectly, 25 percent or indemnify a PAE in accordance with HUD will retain the right of set-off more of any class of the voting stock of section 513(a)(2)(G) of MAHRA, any against any payments due as well as a company; the ability to direct in any payment under this indemnity is such other rights afforded at law and in manner the election of a majority of a contingent upon the availability of equity. company (or other entity’s) directors or funds that are permitted by law to be (2) Termination for convenience of trustees; or the ability to exercise a used for this purpose. Federal Government. HUD may controlling influence over the company § 401.304 PRA provisions on PAE terminate a PRA at any time in or entity’s management and policies. compensation. accordance with the PRA or applicable For purposes of this definition, a general (a) Base fee. (1) The PRA will provide law regardless of whether the PAE is in partner of a limited partnership is for base fees to be paid by HUD. default of any of its obligations under presumed to be in control of that (2) HUD will conduct an annual the PRA if such termination is in the partnership. survey of the market price for the scope best interests of the Federal (3) Restricted person means a PAE; of work. The results of each survey will Government. The PRA will provide for any management official of the PAE; any be used to establish a uniform baseline payment to the PAE of a specified legal entity that is under the control of for public entities. The base fee for a percentage of the base fee authorized by the PAE, is in control of the PAE, or is PAE will be adjusted if necessary after § 401.304(a) and amounts for under common control with the PAE; or the first term of the PRA. reimbursement of third-party vendors to any employee, agent or contractor of the (3) Private PAEs will be compensated the PAE authorized by § 401.304(c). PAE, or employee of such agent or based on the results of a competitive bid (3) Transfer to another PAE; contractor, who will perform or has process which evaluates bidders’ temporary waiver of rights. If a PRA is performed services under a PRA with capability, timeliness, ability to work terminated: HUD. with tenant and community groups, and (i) HUD may order an immediate (b) General prohibitions. (1) The PAE cost. transfer of some or all of the PAE’s may not permit conflicts of interest to (b) Incentives. The PRA may provide duties to another PAE designated by exist without obtaining a waiver in for incentives to be paid by HUD. While HUD; and accordance with this section. individual components may vary (ii) HUD may temporarily waive its (2) The PAE must establish between PAEs (both public and private), right of immediate termination in order procedures to identify conflicts of the total amount payable under the to allow an orderly transfer of duties interest and to ensure that conflicts of incentive package will be uniform. and responsibilities under a PRA, interest do not arise or continue, subject Objectives will include maximizing without waiving the right of termination to waiver under paragraph (c) of this savings to the Federal Government, after the transfer has been completed to section. timely performance, tenant satisfaction HUD’s satisfaction. (3) HUD will not enter into PRAs with with the PAE’s performance, the (c) Liability for damages. During the potential PAEs who have conflicts of infusion of public funds from non-HUD term of a PRA, or notwithstanding any interest associated with a particular sources, and other benchmarks that termination of a PRA, HUD may seek its project, or permit PAEs to continue HUD considers appropriate. actual, direct, and consequential performance under existing PRAs when (c) Expenses. The PRA will identify damages from any PAE failure to such PAEs have conflicts of interest, expenses incurred by the PAE that will comply with its obligations under the unless such conflicts have been qualify for reimbursement by HUD. PRA. eliminated to HUD’s satisfaction by the Limits on these expenses will be (d) Cumulative remedies. The PAE or potential PAE or are waived by established annually by HUD, but HUD remedies under this section are HUD. may waive the limits for high-cost areas. cumulative and in addition to any other (4) The PAE has a continuing (d) Other matters. The Director of remedies or rights HUD may have under obligation to take all action necessary to OMHAR will retain the right of final the terms of the PRA, at law, or identify whether it or any other approval of any fee schedule on behalf otherwise. restricted person has a conflict of of HUD. HUD will publish the standard interest. form of PRA and the compensation § 401.310 Conflicts of interest. (c) Waivers. HUD will waive conflicts package annually on its Internet (a) Definitions.—(1) Conflict of of interest only when, in light of all website. interest means a situation in which a relevant circumstances, the interests of PAE or other restricted person: HUD in the PAE’s or another restricted § 401.309 PRA term and termination (i) Has a financial interest, direct or persons’s participation outweigh the provisions; other remedies. indirect, that prevents or may prevent concern that a reasonable person may (a) 1-year term with renewals. The the PAE or other restricted person from question the integrity of HUD’s PRA will have a term of 1 year, to be acting at all times in the best interests operations. renewed for successive terms of 1 year of HUD; (d) Conflicts of interest arising prior to with the mutual agreement of both (ii) Has one or more personal, PAE selection.—(1) Request for review parties. The PRA will provide for HUD business, or financial interests or of conflicts of interest. (i) A potential to pay final compensation to the PAE relationships that would cause a PAE, with its request to HUD for and to assign responsibility for reasonable person with knowledge of consideration for selection as a PAE,

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If a PAE, potential prior to selection, a potential PAE performance of any PRA and during the PAE or other restricted person (as discovers that it has a conflict, it must term of such PRA, a PAE or other defined in § 401.310) violates notify HUD in writing within 10 days of restricted person (as defined in §§ 401.310, 410.311, or 401.312, HUD submitting the request or prior to § 401.310) may not: may: selection, whichever is earlier. Such (1) Solicit for itself or others favors, (1) Find the potential PAE unqualified notification must contain a detailed gifts, or other items of monetary value to enter into a PRA; description of the conflict. The potential from any person who is seeking official (2) Find the PAE unqualified to PAE may, with its notices, request that action from HUD or the PAE in receive additional projects for the conflict be waived or may propose connection with the PRA or has restructuring under an existing PRA; how it may eliminate the conflict. The interests that may be substantially (3) Find the PAE in default under an potential PAE may also request a affected by the restricted person’s existing PRA with the right of determination as to the existence of the performance or nonperformance of termination for cause under § 401.309; conflict. duties to HUD; or (2) Review by HUD. Subject to the (2) Use improperly (or allow the (4) Seek from a PAE or other restricted restrictions set forth in this section, improper use of) HUD property or person HUD’s actual, direct, and HUD in its sole discretion may property over which the restricted consequential damages resulting from determine whether a conflict of interest person has supervision or charge by the violation. exists, may waive the conflict of reason of the PRA; (b) Cumulative remedies. The interest, or may approve in writing a (3) Use its status as PAE for its own remedies under this section are PAE’s proposal to eliminate a conflict of benefit, or the financial or business cumulative and in addition to any other interest. benefit of a third party, except as remedies or rights HUD may have under (e) Conflicts of interest that arise or contemplated by the PRA; or the terms of the PRA, at law, or are discovered after PAE selection. (1) A (4) Make any unauthorized promise or otherwise. PAE must notify HUD in writing within commitment on behalf of HUD. (c) Finality of determination. Any 10 days after discovering that it or (b) 18 U.S.C. 201. Pursuant to 18 determination made by HUD pursuant another restricted person has a conflict U.S.C. 201, whoever acts for or on to this section is at HUD’s sole of interest. Such notification must behalf of HUD in connection with the discretion and is not subject to further contain a detailed description of the matters covered by this part is deemed administrative review. conflict of interest and state how the to be a public official. Public officials § 401.314 Environmental review PAE intends to eliminate the conflict. are prohibited from soliciting or responsibilities. The PAE may also request a accepting anything of value in return for HUD will retain all responsibility for determination as to the existence of a being influenced in the performance of environmental review under part 50 of conflict. official actions. Violators are subject to this title. Compliance with part 50 of (2) HUD will, after receipt of such criminal sanctions. this title will be completed before any notification or other discovery of the (c) 18 U.S.C. 1001. Pursuant to 18 HUD approval of the Restructuring PAE’s conflict or potential conflict of U.S.C. 1001, whoever knowingly and Commitment under § 401.405. interest, take such action as it willingly falsifies a material fact, makes determines is in its best interests, which a false statement or utilizes a false Subpart CÐRestructuring Plan may involve proceeding under § 401.313 writing in connection with a PRA is or as provided in the following subject to criminal sanctions. Other § 401.400 Required elements of a sentences. HUD may notify the PAE in Federal civil statutes also apply to Restructuring Plan. writing of its findings as to whether a making false statements to the United (a) General. A PAE is responsible for conflict of interest exists and the basis States. the development of a Restructuring Plan for such determination, whether or not (d) 18 U.S.C. 207. Former Federal for each project included in its PRA. a waiver will be granted, or whether Government employees are subject to (b) Required elements. The corrective actions may be taken in order the prohibitions in 18 U.S.C. 207. Restructuring Plan must contain a to eliminate the conflict of interest. narrative that fully describes the Corrective action must be completed by § 401.312 Confidentiality of information. restructuring transaction. The the PAE not later than 30 days after A PAE and every other restricted Restructuring Plan must include the notification is mailed by HUD unless person (as defined in § 401.310) has a elements required by section 514(e) of HUD, at its sole discretion, determines duty to protect confidential information, MAHRA. The Restructuring Plan must that it is in its best interests to grant the except as provided in §§ 401.500 describe the use of any restructuring PAE an extension in which to complete through 401.503, and to prevent its use tools listed at sections 517(a) and (b) of the corrective action. to further a private interest other than as MAHRA, and must contain other (f) Reconsideration of decisions. contemplated by the PRA. As used in requirements as determined by HUD. Decisions issued pursuant to this this section, confidential information section may be reconsidered by HUD means information that a PAE or other § 401.401 Consolidated Plans. upon application by the PAE. Such restricted person obtains from or on A PAE may request HUD to approve requests must be in writing and must behalf of HUD or a third party in a Consolidated Restructuring Plan that contain the basis for the request. HUD connection with a PRA but does not presents an overall strategy for more may, at its discretion and after include information generally available than one project included in the PRA.

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HUD will consider approval of a actions or omissions as described in submitted, require changes as a Consolidated Restructuring Plan for section 516(a) of MAHRA, including condition for approval, or reject the projects having common ownership, any outstanding violations of civil rights Plan. If the Plan is rejected, HUD will geographic proximity, common laws in connection with any project of inform the PAE of the reasons for mortgagee or servicer, or other factors the owner or affiliate; or rejection, and the PAE will inform the that contribute to more efficient use of (iii) HUD or the PAE determines owner. HUD’s rejection of the Plan is the PAE’s resources. Notwithstanding (under § 401.451(c) or otherwise) that subject to the dispute and the more efficient use of a PAE’s the project does not meet the housing administrative appeal provisions of resources, HUD will not approve any quality standards in § 401.558 and that subpart F of this part. Consolidated Restructuring Plans that the poor condition of the project is not have a detrimental effect on tenants or likely to be remedied in a cost-effective § 401.406 Execution of Restructuring Commitment. the community, or a higher cost to the manner through the Restructuring Plan. Federal Government. (3) Exception for sale. This paragraph When HUD approves the does not apply (except (2)(iii)) if a sale Restructuring Commitment, the PAE § 401.402 Cooperation with owner and or transfer is proposed under § 401.480. will deliver the Restructuring qualified mortgagee in Restructuring Plan Commitment to the owner for execution. development. (c) Dispute and appeal. An owner The Restructuring Commitment A PAE must comply with section may dispute a rejection under this section and seek administrative review becomes binding upon execution by the 514(a)(2) of MAHRA by using its best owner. An owner who does not execute efforts to seek the cooperation of the under the procedures in subpart F of this part. the Restructuring Commitment may owner and qualified mortgagee or its appeal its terms and seek modification designee in the development of the § 401.404 Proposed Restructuring under subpart F of this part. Restructuring Plan. If the owner fails to Commitment. cooperate (as demonstrated by A PAE must submit a Restructuring § 401.407 Closing conducted by PAE. reasonable progress in development of a Plan and a proposed Restructuring After the owner has executed the Restructuring Plan) to the satisfaction of Commitment to HUD for approval, prior Restructuring Commitment, the PAE the PAE and HUD agrees, the PAE must to submitting the Commitment to the must arrange for a closing to execute all notify the owner that the PAE will not owner for execution. The submission documents necessary for develop a Restructuring Plan. This may not occur earlier than 10 days after implementation of the Restructuring notice will be subject to dispute and the public meeting required by Plan. The PAE must use standard administrative appeal under subpart F § 401.500(d). The proposed documents approved by HUD, with of this part. If the qualified mortgagee Restructuring Commitment must be in a modifications only as necessary to does not cooperate in modifying the form approved by HUD, incorporate the comply with applicable State or local mortgage, the PAE and owner may Restructuring Plan, and include the laws, or such other modifications as are continue to develop a Restructuring following: approved in writing by HUD. Plan to restructure the loan using (a) The lender, loan amount, interest alternative financing. § 401.408 Affordability and use restrictions rate, and term of any mortgages or required. § 401.403 Rejection of a request for a unsecured financing for the mortgage Restructuring Plan because of actions or restructuring and rehabilitation, and any (a) General. The Restructuring Plan omissions of owner or affiliate or project credit enhancement; must provide that the project will be condition. (b) The amount of any payment of a subject to affordability and use (a) Ongoing determination of owner section 541(b) claim; restrictions in a Use Agreement and project eligibility. Notwithstanding (c) The type of section 8 assistance acceptable to HUD. The Use Agreement an initial determination to accept the and the section 8 restructured rents; must be recorded and in effect for at owner’s request for a Restructuring Plan, (d) The rehabilitation required, the least 30 years. It must include at least the PAE is responsible for a further source of the owner contribution, and the provisions required by paragraphs more complete and ongoing assessment escrow arrangements; (b) through (j) of this section. of the eligibility of the owner and (e) The uses for project accounts; (b) Use restriction. The project must project while the Restructuring Plan is (f) The terms of any sale or transfer of continue to be used for residential use developed. The PAE must advise HUD the project; with no reduction in the number of if at any time any of the grounds for (g) A schedule setting forth all sources residential units without prior HUD rejection listed in paragraph (b) of this and uses of funds to implement the approval. section exist. Restructuring Plan, including setting (c) Affordability restrictions. Except (b) Grounds for rejection.—(1) forth the balances of project accounts during a period when at least 20 percent Suspension or debarment. Neither a before and after restructuring; of the units in a project receive project- PAE nor HUD will continue to develop (h) All consideration, direct or based assistance: or consider a Restructuring Plan if, at indirect, received or to be received by (1) At least 20 percent of the units in any time before a closing under the PAE or a related party, if known, in the project must be leased to families § 401.407, the owner is debarred or connection with any matter addressed whose adjusted income does not exceed suspended under part 24 of this title. in the Restructuring Commitment, 50 percent of the area median income as (2) Other grounds. HUD may elect not except amounts paid or to be paid by determined by HUD, with adjustments to permit continued consideration of the HUD; and for household size, at rents no greater Restructuring Plan at any time before (i) Other terms and conditions than 30 percent of 50 percent of the area closing under § 401.407, if: prescribed by HUD. median income; or (i) An affiliate is debarred or (2) At least 40 percent of the units in suspended under part 24 of this title; § 401.405 Restructuring Commitment the project must be leased to families (ii) HUD or the PAE determines that review and approval by HUD. whose adjusted income does not exceed the owner or an affiliate has engaged in HUD will either approve the 60 percent of the area median income as material adverse financial or managerial Restructuring Commitment as determined by HUD, with adjustments

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For purposes of section (C) Other eligible costs permitted project as a whole. 512(1), other relevant characteristics under the section 8 program; (e) Nondiscrimination against include any applicable rent control and (iii) An adequate allowance for voucher holders. An owner must other characteristics determined by the potential operating losses due to comply with the nondiscrimination PAE. The PAE may make appropriate vacancies and failure to collect rents, as provisions of § 401.556. adjustments when needed to ensure determined by the PAE; (f) Enforcement. The Use Agreement comparability of properties. (iv) A return to the owner to the must contain remedies for breach of the (c) Methodology for determining extent permitted by Use Agreement, including monetary comparable market rents. If the PAE is § 401.461(b)(3)(ii)(A); and damages for non-compliance with unable to identify at least three (v) Other expenses determined by the paragraphs (c) and (g) of this section. comparable properties within the local PAE to be necessary for the operation of (g) Compliance with physical market, the PAE may: the project. condition standards. The Use (1) Use non-comparable housing stock (2) The exception rent must not Agreement must require that the within that market from which exceed 120 percent of the Fair Market property be maintained in compliance adjustments can be made; or Rent for the market area, except that with the requirements of § 401.558. (2) If necessary to go outside the HUD may approve an exception rent (h) Reporting. The Use Agreement market, use comparable properties as far greater than 120 percent of Fair Market must contain appropriate financial and outside the local market as it finds Rent, based on a narrative explanation other reporting requirements for the reasonable, from which adjustments can of special need submitted by the PAE, owner. These reports must comply with be made. subject to the 5 percent limitation in the Real Estate Assessment Center (d) Using FMR as last resort. If the section 514(g)(2)(A) of MAHRA. protocol or subsequent standards PAE is unable to identify enough required by HUD. § 401.412 Adjustment of rents based on properties under paragraph (c) of this (i) Enforcement and amendment. The operating cost adjustment factor (OCAF) or section, comparable market rents must budget. Use Agreement will be enforceable by be set at 90 percent of the Fair Market (a) OCAF. (1) The Restructuring Plan interested parties to be specified in the Rents for the relevant market area. Agreement, which will include HUD, must provide for annual adjustment of the PAE, project tenants, organizations § 401.411 Guidelines for determining the restructured rents for project-based representing project tenants, and the exception rents. assistance by an OCAF determined by HUD. unit of local government. The Use (a) When do exception rents apply? (1) (2) Application of OCAF. HUD will Agreement must require the party The Restructuring Plan may provide for apply the OCAF to the previous year’s bringing enforcement action to give the exception rents established under contract rent less the portion of that rent owner notice and a reasonable section 514(g)(2) of MAHRA for project- paid for debt service. This paragraph opportunity to cure any violations. based assistance if the PAE determines applies to renewals of contracts in (j) Modifications. HUD will retain the that project income under the rent levels subsequent years which receive right to approve modifications of the established under § 401.410 would be restructured rents under either section Use Agreement agreed to by the owner inadequate to meet the costs of 514(g)(1) or (2) of MAHRA. without the consent of any other party, operating the project as described in including those having the right of paragraph (b) of this section and that the (b) Budget-based. Rents will be enforcement. The owner must post housing needs of the tenants and the adjusted on a budget basis instead of prominently on project property notice community could not be adequately OCAF only upon owner request, subject of any modifications approved by HUD. addressed. to HUD approval. (k) Owner obligation to accept project- (2) In any fiscal year, the PAE may not § 401.420 When must the Restructuring based assistance. Subject to the request HUD to approve Restructuring Plan require project-based assistance? availability of appropriated funds, the Plans with exception rents for more The Restructuring Plan must provide owner of the project must accept any than 20 percent of all units covered by offer of renewal or extension of project- for the section 8 contract to be renewed the PRA, except that HUD may approve as project-based assistance, subject to based assistance if the offer is in a waiver of this 20 percent limitation accordance with the terms and the availability of funds for this based on the PAE’s narrative purpose, if: conditions specified in the explanation of special need. Restructuring Plan. (a) The PAE determines there is a (b) How are exception rents market-wide vacancy rate of 6 percent § 401.410 Standards for determining calculated? (1) Exception rents must be or less; comparable market rents. set at a level sufficient to support the (b) At least 50 percent of the units in (a) When are comparable market rents costs of operating the project. The PAE the project are occupied by elderly required? The Restructuring Plan must must take into account the following families, disabled families, or elderly establish restructured rents for project- cost items: and disabled families; or based assistance at comparable market (i) Debt service on the second (c) The project is held by a nonprofit rents unless the PAE finds that mortgage under § 401.461(a) or a cooperative ownership housing exception rents are necessary under rehabilitation loan included in the corporation or nonprofit cooperative § 401.411. Restructuring Plan; housing trust.

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§ 401.421 Rental Assistance Assessment the long-term physical integrity of the (c) Rejection due to poor condition of Plan. property; the project. Based on the completed (a) Plan required. For any project not (3) A plan for funding the PCA, the PAE must determine whether subject to mandatory project-based rehabilitation work included in proceeding with a Restructuring Plan assistance under § 401.420, the PAE paragraph (a)(1) of this section, which with necessary rehabilitation is more must develop a Rental Assistance work must be completed in a timely cost-effective in terms of Federal Assessment Plan in accordance with manner after closing the restructuring resources than rejecting the Request for section 515(c)(2) of MAHRA to transaction, that identifies the source of a Restructuring Plan under determine whether assistance should be the required owner contribution of non- § 401.403(b)(2)(iii) and providing renewed as project-based assistance or project funds; and tenant-based assistance for displaced whether some or all of the assisted units (4) An estimate of the initial deposit, tenants under § 401.602. HUD will should be converted to tenant-based if any, and the estimated monthly provide guidance to PAEs for making assistance. deposit to the reserve for replacement the determination. If the PAE concludes (b) Matters to be assessed. The PAE account for the next 20 years. that a request for a Restructuring Plan must include an assessment of the (b) Use of CA. An owner may comply should be rejected because of lack of impact of converting to tenant-based with paragraph (a) of this section by cost-effectiveness due to poor condition assistance and the impact of extending submitting a comprehensive needs of the project, it must also consider the project-based assistance on: effect on tenants and the community (1) The ability of the tenants to find assessment in accordance with Title IV of the Housing and Community and advise HUD of the effect. HUD will adequate, available, decent, comparable, make the final decision after and affordable housing in the local Development Act of 1992 (12 U.S.C. 1715z–1a note) if the CA: considering the PAE’s recommendation. market; (d) Dispute and appeal of rejection. (2) The types of tenants residing in (1) Was completed or updated within The dispute and appeal provisions of the project (such as elderly families, 1 year; and subpart F of this part apply to rejections disabled families, large families, and (2) Contains all of the matters under paragraphs (b) and (c) of this cooperative homeowners); required by paragraph (a) of this section. (3) The local housing needs identified (c) Reconsideration and modification section. in the applicable Consolidated Plan of evaluation. If the PAE, after its § 401.452 Property standards for developed under part 91 of this title; independent review under § 401.451, rehabilitation. (4) The cost of providing assistance, determines that the owner’s evaluation The Restructuring Plan must provide comparing the applicable payment either fails to address specific necessary for the level of rehabilitation needed to standard to the rent levels permitted by work items or fails to propose a cost- restore the property to the non-luxury §§ 401.410 and 401.411; effective approach to rehabilitation, the standard adequate for the rental market (5) The long-term financial stability of owner may modify its evaluation to for which the project was originally the project; satisfy the concerns of the PAE. (6) The ability of residents to make approved. If the standard has changed reasonable choices about their § 401.451 PAE Physical Condition over time, the rehabilitation may individual living situations; Analysis (PCA). include improvements to meet current (7) The quality of the neighborhood in (a) Review and certification of owner standards. The result of the which the tenants would reside; and evaluation. (1) The PAE must rehabilitation should be a project that (8) The project’s ability to compete in independently evaluate the physical can attract non-subsidized tenants but the marketplace. condition of the project by means of a competes on rent rather than on (c) Conversion may be phased in. Any PCA. If the PAE finds any immediate amenities. When a range of options conversion from project-based threats to health and safety, the owner exists for satisfying the rehabilitation assistance to tenant-based assistance must complete those work items standard or the plan for capital may occur over a period of not more immediately, or the PAE must evaluate replacement, the PAE must choose the than 5 years if the PAE decides the the project’s eligibility in accordance least costly option considering both transition period is needed for the with § 401.403(b)(2)(iii). capital and operating costs and taking into account the marketability of the financial viability of the project. (2) After consultation with the owner property and the remaining useful life of (d) Reports to HUD. The PAE must and an opportunity for the owner to all building systems. Nothing in this report to HUD on the matters specified modify its evaluation performed under part exempts rehabilitation from the in section 515(c)(2)(C) of MAHRA at § 401.450, the PAE must either certify to requirements of part 8 of this title least semi-annually. the accuracy and completeness of the concerning accessibility to persons with owner’s evaluation performed under § 401.450 Owner evaluation of physical disabilities. condition. § 401.450 for each project covered by (a) Initial evaluation. The owner must the PRA, or state that the evaluation § 401.453 Reserves. evaluate the physical condition of the fails to address certain items or does not The Restructuring Plan must provide project and provide the following propose a cost effective approach. for reserves for capital replacement information to the PAE in a form (b) Rejection due to inaccurate or sufficient to ensure the property’s long- acceptable to the PAE: incomplete owner evaluation. If the PAE term structural integrity so that the (1) All work items required to bring cannot certify to the accuracy and property can be maintained as the project to the standard in § 401.452, completeness of the owner’s evaluation affordable housing in decent, safe, and including any work items needed to due to its failure to address specific sanitary condition meeting the ensure compliance with applicable work items or because it does not standards of § 401.558. requirements of part 8 of this title propose a cost effective approach, the concerning accessibility to persons with PAE must notify HUD. If HUD agrees § 401.460 Modification or refinancing of disabilities; with the PAE’s determination, the PAE first mortgage. (2) The capital repair or replacement must notify the owner that the request (a) Principal amount. As part of the items that will be necessary to maintain for a Restructuring Plan is rejected. Restructuring Plan, the PAE will

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HUD will approve risk- and any other expenditure approved by mortgage must be in the amount that sharing financing that complies with HUD. can be supported by net operating part 266 whenever required by section (ii) The priority and distribution of income based on the lower of the 517(b)(3) of MAHRA. net cash flow is as follows: restructured section 8 rents or the rents (iii) Credit enhancement from non- (A) HUD or the PAE may approve the allowed by the Use Agreement under FHA sources. If credit enhancement is to payment to the owner of up to 25 § 401.408. Neither the outstanding be provided by a non-FHA source under percent of net cash flow based on principal balance of the existing first section 517(b)(4) of MAHRA, HUD will consideration of relevant conditions and mortgage, nor the monthly principal and consider waiver of any non-statutory circumstances including, but not interest payments on that debt, may be provision in this part only if the waiver limited to, compliance with the increased through modification under will not materially impair achievement management standards prescribed in the Restructuring Plan. The debt service of the purposes of MAHRA and if the § 401.560 and the physical condition coverage used by the PAE must be waiver is essential to meet the legitimate standards prescribed in § 401.558; and adequate for purposes of the business or legal requirements of the (B) All remaining net cash flow will Restructuring Plan and for the provider of credit enhancement. be applied to the principal and interest requirements of any refinancing. on the second mortgage, until paid in (b) Fully amortizing. The modified or § 401.461 HUD-held second mortgage. full, and then to any additional refinanced first mortgage must be fully (a) Amount. (1) The Restructuring subordinate mortgage under amortizing through level monthly Plan must provide for a second § 401.461(c). payments. mortgage to HUD whenever the Plan (4) HUD may cause the second (c) Rates and other terms. Interest provides for either payment of a section mortgage to be immediately due and rates and other terms of the modified or 541(b) claim or the modification or payable on the grounds provided in refinanced first mortgage must be refinancing of a HUD-held first mortgage section 517(a)(4) of MAHRA, including competitive in the market. that results in a first mortgage with a an assumption of the mortgage in (d) Fees. Any fees or costs associated lower principal amount. The term violation of HUD standards for approval with mortgage modification or ‘‘second mortgage’’ in this section also of transfers of physical assets (if refinancing determined by the PAE to be includes a new HUD-held first mortage applicable), or if the owner materially above normal processing fees must be (not a refinancing mortgage) if a full fails to comply with other material HUD paid by the owner from non-project payment of claim is made under requirements after a reasonable funds and must not be included in the § 401.471, or if § 401.460(a) does not opportunity for the owner to cure such modified or refinanced first mortgage. permit a restructured first mortgage in failure. A decision by HUD in this (e) Refinancing. (1) The owner must any amount. regard is subject to the administrative contact the mortgagee to determine the (2) The second mortgage must be in a appeals procedure in subpart F of this mortgagee’s willingness to consider a principal amount that does not exceed part, unless HUD acts on the basis of the modification and re-amortization of the the lesser of: grounds specified in sections existing first mortgage through a (i) The amount the PAE reasonably 517(a)(4)(A) or (B) of MAHRA. Restructuring Plan before considering expects to be repaid based on objective (5) HUD will consider modification or any other source of first mortgage criteria such as the amount of forgiveness of all or part of the second financing. If the mortgagee does not anticipated net cash flow, trending mortgage only if the project has been agree to modify and re-amortize in assumptions, amortization provisions, sold or transferred to a priority accordance with the Restructuring Plan, and expected residual value of the purchaser under § 401.480 and HUD the loan must be refinanced. property; and determines that modification or (2) The refinancing may be either (ii) The difference between the unpaid forgiveness is necessary to recapitalize without credit enhancement or with balance on the first mortgage the project in order to preserve it as credit enhancement under one of the immediately before and after the affordable housing. following: restructuring. (c) Additional mortgage to HUD. A (i) FHA mortgage insurance. If the (b) Terms and conditions. (1) The Restructuring Plan may require the Restructuring Plan provides for FHA second mortgage must have an interest owner to give an additional mortgage on mortgage insurance for the refinanced rate of at least 1 percent, but not more the project to HUD in an amount that first mortgage, the insurance will be than the applicable Federal rate. Interest does not exceed the difference between provided in accordance with all usually will accrue but not compound. the amount of a section 541(b) claim applicable FHA legal requirements (2) The second mortgage must have a paid under § 401.471 and the principal except that insurance will be term concurrent with the modified or amount of the second mortgage. HUD documented as provided in section refinanced first mortgage, if any. HUD will provide guidance to PAEs regarding 517(b)(2) of MAHRA. HUD will issue may provide that if there is no first the circumstances under which a Plan the commitment for mortgage insurance mortgage, the second mortgage may may be negotiated that provides for less but may adapt its procedures as continue for a term established by HUD. than the full difference to be payable necessary to facilitate development and (3)(i) Principal and interest on the under the additional mortgage. This implementation of a Restructuring Plan. second mortgage is payable only out of additional mortgage must be junior in (ii) Other FHA credit enhancement. If net cash flow during its term. ‘‘Net cash priority to the second mortgage required FHA credit enhancement, including flow’’ means that portion of project by paragraph (a) of this section, bear risk-sharing, is provided under part 266 income that remains after the payment interest at the same rate, which will of this title, the credit enhancement will of all required debt service payments on accrue but not compound, and require be provided in accordance with all the modified or refinanced first no payment until the second mortgage usually-applicable FHA legal mortgage, if any, including payment of is satisfied, when it will be payable

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If the owner is determined § 401.471 HUD payment of a section 541(b) Plan must provide for progress ineligible pursuant to § 401.101 or claim. payments for rehabilitation, which must § 401.403, the Restructuring Plan must HUD will pay a section 541(b) claim be disbursed by an acceptable escrow include a condition that the owner sell from the appropriate insurance fund to agent subject to PAE oversight or as or transfer the property to a purchaser the insured mortgagee on behalf of the otherwise provided by HUD. acceptable to HUD in accordance with mortgagor. The mortgagee must use the paragraph (c) of this section. claim payment to prepay the principal § 401.473 HUD grants for rehabilitation under section 236(s) of NA. (c) Owner’s notice of intent to sell or balance of the insured mortgage, in transfer. (1) The owner must provide HUD will consider a direct grant for whole or in part, as provided in the notice to the PAE affirming the owner’s rehabilitation under section 236(s) of Restructuring Plan. All section 541(b) intent to sell or transfer the property. the NA only if the owner provides an claims will be paid in cash. Part 207 of This notice must be received by the PAE acceptable work schedule and cost- this title and sections 207(g) and 541(a) no later than 30 days after a notice of analysis that is consistent with the of the NA do not apply to a section rejection under § 401.101 or § 401.403 owner’s evaluation of physical 541(b) claim. has become a final determination under condition under § 401.450, as certified subpart F of this part. § 401.472 Rehabilitation funding. by the PAE. The owner must execute a (2) The owner must cooperate in grant agreement with terms and (a) Sources of funds.—(1) Project selling or transferring the property. conditions acceptable to HUD. If the accounts. The Restructuring Plan for Failure to do so will result in the PAE’s PAE is a State or local government, or funding rehabilitation must include determination to reject the owner’s an agency or instrumentality of such a funds from the project’s residual request for a Restructuring Plan. The government, the PAE and HUD may receipts account, surplus cash account, owner must distribute and publish, in agree that the PAE will be delegated the replacement reserve account, and other an appropriate publication, a notice to responsibility for the administration of project accounts, to the extent the PAE potential purchasers that describes the any grant made under this section. HUD determines that those accounts will not property, proposed terms of sale, and be needed for the initial deposit to the may make grant funding available for the cost of administration if HUD has procedures for submitting an purchase reserves. offer. The notice in form and substance (2) Debt restructuring. The determined that such funding is must be acceptable to HUD, and must Restructuring Plan may provide for available. inform potential offerors of a preference funding of rehabilitation through a new § 401.474 Project accounts. for priority purchasers. first mortgage in conjunction with a (3) During a period to be determined payment of a section 541(b) claim. The (a) Accounts from other projects. The accounts listed in § 401.472(a)(1) may be by HUD that begins when the owner payment of claim may be in an amount gives notice of intent to sell or transfer, necessary to facilitate the funding of the used for other eligible projects only if: (1) The projects are included in a an owner may accept an offer only from rehabilitation, by reducing the existing Consolidated Restructuring Plan under a priority purchaser. first mortgage debt to make refinancing § 401.401; and (4) No sale or transfer to a non- proceeds available to fund (2) The funds are used for priority purchaser will be approved rehabilitation. rehabilitation or to reduce a section without evidence of tenant support. (3) Section 236(s) rehabilitation grant. 541(b) claim paid by HUD under (d) Informing PAE; approval required. The Restructuring Plan may include a § 401.471. The owner must inform the PAE of any direct grant from HUD under section (b) Distribution to owner. The offer to purchase the property and the 236(s) of the NA made in accordance Restructuring Plan may provide for a owner must advise the PAE of the with § 401.473, to the extent that HUD one-time distribution to the owner, not substance and on-going status of the has determined that funding is available to exceed 10 percent of the excess funds owner’s discussions with any for such a grant. in project accounts, to be released after prospective purchaser. The owner’s (4) Section 8 budget authority completion of the rehabilitation acceptance of the offer must be subject increase. The Restructuring Plan may required by the Restructuring Plan. to PAE approval, and HUD approval of include funding of rehabilitation from the Restructuring Plan. budget authority provided to HUD for § 401.480 Sale or transfer of project. increases in section 8 contracts, to the (a) May the owner request a § 401.481 Subsidy layering limitations on extent that HUD has determined that Restructuring Plan that includes a sale HUD funds. funding from this source is available. or transfer of the property? The owner (a) PAE subsidy layering certification (b) Statutory restrictions. Any may request a Restructuring Plan that required for Restructuring Plan. The rehabilitation funded from the sources includes a condition that the property PAE must certify to HUD that any described in paragraph (a) of this be sold or transferred to a purchaser Restructuring Plan for which it submits section is subject to the requirements in acceptable to HUD in a reasonable a proposed Restructuring Commitment section 517(b)(7) of MAHRA for an period needed to consummate the meets the requirements of either owner contribution. The required owner transaction. The failure to consummate paragraph (d) or (e) of this section. contribution will be calculated as 20 a sale or transfer of the property (b) Purpose of subsidy layering percent of the total cost of requested under paragraph (a) of this certification. The purpose of the subsidy rehabilitation, unless HUD or the PAE section will neither adversely affect an layering certification is to ensure that determines that a higher percentage is owner’s eligibility for a Restructuring any HUD assistance provided to the required. The owner contribution must Plan nor exempt the owner from the owner of a project pursuant to a include a reasonable proportion (as requirements of § 401.600. There are no Restructuring Plan is no more than is determined by HUD) of the total cost of priority purchaser requirements for a necessary to permit the project to rehabilitation from non-governmental voluntary sale or transfer by an owner continue to house tenants with an resources. The PAE may exempt that is eligible for a Restructuring Plan. income mix comparable to the income

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This section does not restructure through the Mark-to-Market available during normal business hours limit a PAE from presenting for Program; and to the public at a place described in approval a Restructuring Plan that (iv) The date of expiration of the paragraph (c)(3) of this section, subject includes project reconfiguration (e.g., project-based assistance. to Federal, State, or local laws conversion of efficiency units to one- (2) This notice must state how restricting access to any information in bedroom units) where necessary to meet comments may be provided to the PAE any of these documents. the needs of the community, provided regarding any of the following: the (2) Within 10 days after the PAE the conditions of § 401.452 are also met. physical condition of the property, determines that the Restructuring Plan (c) Relationship to section 102(d) of whether the rental assistance should be will not move forward for any reason, HUD Reform Act. HUD is not required tenant-based or project-based, any notice must be provided that describes to perform a separate subsidy layering proposed sale or transfer of the the reasons for the failure to move analysis under section 102(d) of the property, and other matters regarding forward and the availability of tenant- Department of Housing and Urban the property and its management. The based assistance to tenants under Development Reform Act of 1989 (42 notice must establish the date, time, and § 401.602(c) if project-based assistance U.S.C. 3545(d)), section 911 of the place for a public meeting to be held no is not renewed. Housing and Community Development sooner than 20 days and no later than 40 days following the date of this notice. § 401.501 Delivery of notices and Act of 1992 (42 U.S.C. 3545 note), or recipients of notices. § 4.13 of this title for any HUD The public may provide written (a) Whom must the owner or PAE assistance that is included in the comments up to the date of the meeting. notify? The PAE must notify, or ensure Restructuring Plan. HUD will adopt the (c) Access to Restructuring Plan. (1) that the owner notifies, each tenant and PAE certification under this section if a The PAE must make the Restructuring any tenant organization for the project, HUD certification otherwise would be Plan available to the parties identified and post a notice in the project, for all required under section 102(d). in § 401.501 at least 20 days before the (d) Certification under existing HUD PAE submits the Restructuring Plan to notices required by §§ 401.500 and guidelines. If the PAE has delegated HUD (subject to any Federal, State, or 401.502. (b) Whom must the PAE notify? The authority from HUD to make section local laws restricting access to any information in the Plan or related PAE must notify: 102(d) subsidy layering certifications in (1) The Chief Executive Officer of the documents). accordance with section 911 of the unit of local government and the Housing and Community Development (2) As soon as the PAE determines that the Restructuring Plan is Executive Director of the Public Act of 1992, the PAE may comply with Housing Authority with jurisdiction this section by using a procedure substantively complete and ready for submission to HUD, notice of the over the project location; substantially similar to the procedure (2) The recipient of any Outreach and described in the Administrative following must be provided: (i) The location of the Plan for Training Grant (OTAG); or Intermediary Guidelines published on December 15, Technical Assistance Grant (ITAG) for 1994 (59 FR 64748), or any subsequent inspection and copying; and (ii) The date, time, and place of a the project location; and procedure adopted by HUD to (3) Other appropriate neighborhood implement section 911. public meeting to be held at least 10 days before the PAE submits the Plan to representatives and other affected (e) Other procedures. If the PAE does parties. not have the delegated authority HUD. described in paragraph (d) of this (3) When the PAE gives notice under § 401.502 Notice requirement when debt section, the PAE must submit to HUD this section, it must make the Plan restructuring will not occur. for approval proposed procedures for available during normal business hours (a) PAE responsibility. If an owner of making the subsidy layering at the management office of the project, an eligible project requests a renewal of certification under this section. Any or if there is no such office, at another a section 8 contract without a procedures must conform to the location specified by the PAE that is Restructuring Plan under § 402.4, HUD procedures described in paragraph (d) of convenient to the tenants. or the PAE must notify, or ensure that this section to the extent feasible and (d) Meeting to discuss the the owner notifies, all parties identified appropriate. Restructuring Plan. After the PAE has in § 401.501 of the request and of: given notice under this section and at (1) The availability (as provided in § 401.500 Required notices to third parties least 10 days before the PAE submits the § 401.500(c)(3) of the following and meeting with third parties. Plan to HUD, the PAE must conduct a information: (a) General. The PAE must solicit, and public meeting to obtain comments on (i) The owner evaluation of physical document the consideration of, tenant the substantively completed Plan. The condition (OEPC) required by and local community comments. As a PAE must accept written comments § 402.6(a)(3); minimum, the notices described in through the date of the meeting. (ii) The comparable market rent paragraphs (b), (c) and (f) of this section, (e) Disposition of comments. The PAE analysis required by § 402.6(a)(2), but in form and substance acceptable to must document and provide to HUD without addresses (or other specific HUD, must be provided. The PAE may with the Restructuring Plan a summary information indicating location) for require the owner to give the notices if of the disposition of all public comparable properties; and permitted by HUD. comments. (iii) The items identified in (b) Notice of intent to restructure and (f) Notice of completion of § 400.500(b)(1)(i), (ii) and (iv); and consultation meeting. (1) This notice Restructuring Plan. (1) Within 10 days (2) A procedure for submitting public must include at a minimum: after the owner executes the comments regarding this information.

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(b) Expense and profit/loss (b) Periodic monitoring and depending on the type of section 8 information. The PAE should remove inspection. At least once a year, a PAE assistance that is provided. project expense, property valuation, and must review the status of each project profit and loss information before for which it developed an approved § 401.556 Leasing units to voucher holders. disclosing any information obtained by Restructuring Plan. Monitoring must the PAE directly from an owner or include on-site inspections. HUD will A Restructuring Plan must prohibit project manager, unless the owner has accept an inspection by a PAE that any refusal of the owner to lease a unit given written consent to disclosure with complies with subpart G of part 5 of this solely because of the status of the that information included. title in lieu of an inspection required by prospective tenant as a section 8 (c) Consideration of comments. The any other party under that subpart. voucher holder. PAE must consider written public (c) HUD acting instead of PAE. HUD § 401.558 Physical condition standards. comments on the information listed in will perform, or contract with other The Restructuring Plan must require paragraph (a) of this section, if the parties to perform, the PAE’s functions comments are submitted within 30 days the owner to maintain the project, in a under this section if: decent and safe condition that meets the after giving notice under paragraph (a), (1) The project is subject to a PRA and document the consideration for applicable standards under this section. with a PAE that is not qualified to be a HUD. No public meeting is required. As long as project-based assistance is section 8 contract administrator; or provided, the applicable standards are § 401.503 Access to information. (2) The project is not currently subject the physical conditions standards for (a) PAE responsibilities. The PAE to a PRA. HUD housing in § 5.703 of this title. At must provide to parties entitled to (d) Regulatory agreement. As long as any other time, the applicable standards notice under § 401.501 access to the Secretary is the holder of a second are the local housing codes or codes information obtained by the PAE about mortgage or an additional mortgage adopted by the public housing agency if the project and its management if the under § 401.461, HUD will regulate the such codes meet or exceed the standards PAE determines that such information is operations of the mortgagor through a in § 5.703 of this title and do not reasonably likely to contribute to regulatory agreement providing terms, severely restrict housing choice or, if effective participation by those parties conditions, and standards established there are no such local housing codes or in the restructuring process, or if HUD by HUD, which may be in addition to codes adopted by the public housing requires the PAE to provide access to any regulatory agreement otherwise agency, the standards in § 5.703 of this the information. The PAE is not required in connection with mortgage title will apply. In addition, any unit in required to make public any information insurance programs. The regulatory which the tenant receives tenant-based received from the owner or manager that agreement must contain remedies for assistance must comply with the the PAE reasonably characterizes as breach, including monetary damages in housing quality standards of the section confidential or proprietary information the event of non-compliance. 8 tenant-based programs. that would not ordinarily be made public, except: § 401.552 Servicing of second mortgage. § 401.560 Property management (1) Owner evaluation of physical HUD or its designee will be standards. condition (OEPC), or a comprehensive responsible for servicing the second (a) General. Each PAE is required by needs assessment (CA) if used instead of mortgage, including determining the section 518 of MAHRA to establish an OEPC, as required by § 401.450; amounts receivable by the owner under management standards consistent with (2) Owner-prepared 1-year project § 401.461(b)(3)(ii)(A). HUD may industry standards and HUD guidelines. rent analysis; and designate the PAE, with the PAE’s The management standards must be (3) As directed by HUD. consent, as servicer for the second included or referenced in the (b) Information on expenses and mortgage. Restructuring Plan. profit/loss. Before disclosing any (b) HUD guidelines. At a minimum, information, the PAE must remove any § 401.554 Contract renewal and the PAE’s management standards must information obtained by the PAE administration. require the project management to: directly from the owner or project HUD will offer to renew or extend (1) Protect the physical integrity of the manager that is related to project section 8 contracts as provided in each property over the long term through expenses, property valuation, or profit Restructuring Plan, subject to the preventative maintenance, repair, or and loss, unless the owner gives written availability of appropriations and replacement; consent to disclosure with that subject to the renewal authority (2) Ensure that the building and information. available at the time of each contract grounds are routinely cleaned; Subpart DÐImplementation of the expiration (§ 402.5 of this chapter or (3) Maintain good relations with the Restructuring Plan After Closing another appropriate renewal authority). tenants; The offer will be made by HUD directly (4) Protect the financial integrity of § 401.550 Monitoring and compliance or through a PAE that has contracted the project by operating the property agreements. with HUD to be a contract administrator with competitive and reasonable costs (a) Compliance agreements. The PAE for such contracts. HUD will offer to any and maintaining appropriate property must ensure long-term compliance by PAE that is qualified to be the section and liability insurance at all times; the owner with MAHRA, this part, and 8 contract administrator the opportunity (5) Take all necessary measures to the Restructuring Plan. As part of this to serve as the section 8 contract ensure the tenants’ physical safety; and responsibility, the PAE must require administrator for a project restructured (6) Comply with other provisions that each owner with an approved under a Restructuring Plan developed are required by HUD, including Restructuring Plan to execute and by the PAE under the Mark-to-Market termination of the management agent for record a Use Agreement that satisfies Program. Qualifications will be cause. the requirements of § 401.408. All determined under both statutory (c) Conflicts of interest. The PAE provisions of this subpart apply as long requirements and requirements issued management standards must also as the Use Agreement is in effect. by the appropriate office within HUD, conform to any guidelines established

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Plan, or an owner who requested a The project-based assistance rents for Restructuring Plan but who has been a restructured project must be the Subpart EÐSection 8 Requirements rejected under §§ 401.101, 401.403, restructured rents determined under the for Restructured Projects 401.405, or 401.451, must provide 12 Restructuring Plan in accordance with § 401.595 Contract and regulatory month’s advance notice under section §§ 401.410 or 401.411. provisions. 8(c)(8)(A) of the United States Housing Act of 1937 (or notice as otherwise § 401.606 Tenant-based assistance provisions. The provisions of chapter VIII of this provided in section 8(c)(8)(C) of such title will apply to a renewal of section Act), unless project-based assistance is If the Restructuring Plan provides for 8 project-based assistance contract renewed under § 402.4. tenant-based assistance, each assisted under this part only to the extent, if any, (3) Notices required by this paragraph family residing in a unit assisted under provided in the contract. Part 983 of this must be provided to tenants and to HUD the expiring project-based assistance title will not apply. The term of the or the contract administrator. HUD will contract when the contract terminates initial and subsequent contract renewals prescribe the form of notices under this will be offered tenant-based assistance if under this part will be determined by paragraph, to the extent that the form is the family meets the eligibility the appropriate HUD official. not prescribed by section 8(c)(8) of the requirements under part 982. Whenever permitted by section 515(c)(4) of § 401.600 Will a section 8 contract be United States Housing Act of 1937. extended if it would expire while an owner's (b) If owner does not give notice. If an MAHRA, the tenant-based assistance request for a Restructuring Plan is owner described in paragraph (a)(1) or will be in the form of enhanced pending? (a)(2) of this section does not give timely vouchers as provided in section 8(t) of the United States Housing Act of 1937. If a section 8 contract for an eligible notice of non-renewal or termination, the owner must permit the tenants in project would expire before a Subpart FÐOwner Dispute of assisted units to remain in their units Restructuring Plan is implemented, the Rejection and Administrative Appeal contract may be extended at rents not for the required notice period with no exceeding current rents for up to the increase in the tenant portion of their § 401.645 How does the owner dispute a earlier of 1 year or closing on the rent, and with no eviction due to notice of rejection? Restructuring Plan under § 401.407. inability to collect an increased tenant (a) Notice of rejection. HUD will HUD may terminate the contract earlier portion of rent. notify the owner of the reasons for a if the PAE or HUD determines that an (c) Availability of tenant-based rejection under §§ 401.101, 401.402, owner is not cooperative under assistance. (1) Subject to the availability 401.403, 401.405, 401.451, or § 402.7 of § 401.402 or if an owner’s request is of amounts provided in advance in this chapter. An owner will have 30 rejected under § 401.403 or § 401.405. appropriations and the eligibility days from receipt of this notice to Any extension of the contract beyond 1 requirements of the tenant-based provide written objections or to cure the year for a pending Plan must be at assistance program regulations, HUD underlying basis for the objections. If comparable market rents or exception will make tenant-based assistance the owner does not submit written rents. An extension at comparable available under the following objections or cure the underlying basis market rents or exception rents under circumstances: for the objections during that period, the this section will not affect a project’s (i) If the owner of an eligible project decision will become a final eligibility for the Mark-to-Market does not extend or renew the project- determination under section 516(c) of Program once it has been initially based assistance, any eligible tenant MAHRA and is not subject to judicial established under this part. residing in a unit assisted under the review. expiring contract on the date of (b) Final decision after objection; right § 401.601 [Reserved] expiration will be eligible to receive to administrative review. If an owner assistance on the later of the date of § 401.602 Tenant protections if an expiring submits written objections or asserts contract is not renewed. expiration or the date the owner’s that the underlying basis for the obligations under paragraph (b) of this objections is cured, after consideration (a) Required notices. (1)(i) The owner section expire; and of the matter HUD will send the owner of an eligible project who has requested (ii) If a request for a Restructuring a final decision affirming, modifying, or a Restructuring Plan and contract Plan is rejected under § 401.101, reversing the rejection and setting forth renewal must provide a 12-month notice § 401.403, § 401.405, or 401.451, and the rationale for the final decision. as provided in section 514(d) of project-based assistance is not otherwise MAHRA if the owner later decides not renewed, any eligible tenant who is a § 401.650 When may the owner make an to extend or renew an expiring contract low-income family or who resides in a administrative appeal of a final decision (except due to a rejection under project-based assisted unit on the date under this subpart? §§ 401.101. 401.403, 401.405, or of Plan rejection will be eligible to The owner has a right to make an 401.451. If the owner gives such 12- receive assistance on the later of the administrative appeal of the following: month notice, the owner is not required date the Restructuring Plan is rejected, (a) A final decision by HUD under to give a separate notice under section or the date the owner’s obligations § 401.645(b); 8(c)(8) of the United States Housing Act under paragraph (b) of this section (b) A decision by HUD and the PAE of 1937. expire. to offer a proposed Restructuring (ii) An owner who gives the 12-month (2) If the tenant was assisted under Commitment that the owner does not notice required by paragraph (a)(1)(i) of the expiring contract, assistance under execute; and this section and who determines not to this paragraph will be in the form of (c) A decision by HUD to accelerate renew a contract must give additional enhanced vouchers as provided in the second mortgage under notice not less than 120 days before the section 8(t) of the United States Housing § 401.461(b)(4), to the extent provided contract expiration. Act of 1937. that section.

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§ 401.651 Appeal procedures. PART 402ÐPROJECT-BASED developing a Restructuring Plan, subject (a) How to appeal. An owner may SECTION 8 CONTRACT RENEWAL to § 402.7. submit a written appeal to HUD, within WITHOUT RESTRUCTURING (UNDER (ii) If HUD or the PAE determines that SECTION 524(a) OF MAHRA) 10 days of receipt of written notice of paragraph (a)(2)(i) of this section does not apply for an eligible project, HUD or the decision described in § 401.650, 3. The authority citation for part 402 the PAE may require a Restructuring contesting the decision and requesting a continues to read as follows: Plan before the owner’s request for conference with HUD. At the Authority: 42 U.S.C. 1437f note and renewal of an expiring section 8 conference, the owner may submit (in 3535(d). contract will be given further person, in writing, or through a 4. Section 402.1 is revised to read as consideration. If HUD or the PAE representative) its reasons for appealing follows: determines that the project’s continued the decision. The HUD or PAE official § 402.1 What is the purpose of part 402? operation without a Restructuring Plan who issued the decision under appeal is not feasible and the owner does not may participate in the conference and This part sets out the terms and conditions under which HUD will cooperate in the development of an submit (in person, in writing, or through acceptable Restructuring Plan, HUD will a representative) the basis for the renew project-based section 8 contracts under the authority provided in section pursue whatever administrative actions decision. 524(a)(1) or (2) of MAHRA. This part it considers necessary. (b) Written decision. Within 20 days permits renewal notwithstanding part (b) [Reserved]. after the conference, or 20 days after any 24 of this title, but subject to section 516 6. Section 402.6 is amended by agreed-upon extension of time for of MAHRA (see § 402.7). revising paragraph (a)(3) to read as submission of additional materials by or 5. Section 402.4 is revised to read as follows: on behalf of the owner, HUD will advise follows: § 402.6 What actions must an owner take the owner in writing of the decision to to request section 8 contract renewal under terminate, modify, or affirm the original § 402.4 Contract renewals under section 524(a)(1) of MAHRA. this part? decision. (a) Initial renewal. (1) HUD may (a) * * * (c) Who is responsible for reviewing renew any expiring section 8 project- (3) If an owner of a project eligible for appeals? HUD will designate an official based assistance contract at initial rents restructuring under part 401 is seeking to review any appeal, conduct the that do not exceed comparable market contract renewal under § 402.4, the most conference, and issue the written rents. recent required fiscal year audited decision. The official designated must (2)(i) If HUD or a Participating financial statement for the project and be one who was neither directly Administrative Entity (PAE) determines an owner’s evaluation of physical involved in, nor reports to another that renewal of an expiring contract condition as provided in § 401.450 of directly involved in, making the under this section for an eligible project this chapter, and such other documents decision being appealed. would be sufficient to maintain both as HUD or the PAE may require. adequate debt service coverage on the * * * * * § 401.652 No judicial review. HUD-insured or HUD-held mortgage Dated: March 13, 2000. The reviewing official’s decision and necessary replacement reserves to ensure the long-term physical integrity Ira Peppercorn, under § 401.651 is a final determination of the project, taking into account any Director, Office of Multifamily Housing for purposes of section 516(c) of comments received under § 401.502(c) Assistance Restructuring. MAHRA and is not subject to judicial of this chapter, HUD will renew the [FR Doc. 00–6728 Filed 3–21–00; 8:45 am] review. contract under this section without BILLING CODE 4210±01±P

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Part IV

Securities and Exchange Commission 17 CFR Part 230 et al. Disclosure of Mutual Fund After-Tax Returns; Proposed Rule

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SECURITIES AND EXCHANGE (‘‘Commission’’) is proposing for suggest that more than two and one-half COMMISSION comment amendments to Form N–1A percentage points of the average stock [17 CFR 239.15A and 274.11A], fund’s total return is lost each year to 17 CFR Parts 230, 239, 270, and 274 the registration form used by mutual taxes.3 Moreover, in the last five years, [Release Nos. 33±7809; 34±42528; IC± funds to register under the Investment it is estimated that investors in 24339; File No. S7±09±00] Company Act of 1940 [15 U.S.C. diversified U.S. stock funds surrendered 80a–1 et seq.] (‘‘Investment Company an average of 15 percent of their annual RIN: 3235±AH77 Act’’) and to offer their shares under the gains to taxes.4 Securities Act of 1933 [15 U.S.C. 77a et Disclosure of Mutual Fund After-Tax seq.] (‘‘Securities Act’’). The Despite the tax dollars at stake, many Returns Commission also is proposing investors lack a clear understanding of amendments to rule 482 under the the impact of taxes on their mutual fund AGENCY: Securities and Exchange investments.5 Generally, a mutual fund Commission Securities Act [17 CFR 230.482] and rule 34b–1 under the Investment shareholder is taxed when he or she ACTION: Proposed rule Company Act [17 CFR 270.34b–1]. receives income or capital gains distributions from the fund and when SUMMARY: The Securities and Exchange Table of Contents Commission is proposing rule and form the shareholder redeems fund shares at I. Introduction 6 amendments under the Securities Act of a gain. The tax consequences of II. Discussion distributions are a particular source of 1933 and the Investment Company Act A. Requirement to Disclose After-Tax of 1940 to improve disclosure to Return surprise to many investors when they investors of the effect of taxes on the B. Location of Required Disclosure discover that they can owe substantial performance of open-end management C. Format of Disclosure taxes on their mutual fund investments investment companies (‘‘mutual funds’’ D. Exemptions from the Disclosure that appear to be unrelated to the or ‘‘funds’’). Under the proposed Requirement performance of the fund. Even if the E. Advertisements and Other Sales amendments, mutual funds would be value of a fund has declined during the Literature year, a shareholder can owe taxes on required to disclose after-tax returns F. Formulas for Computing After-Tax based on standardized formulas Return capital gains distributions if the comparable to the formula currently 1. Tax Bracket portfolio manager sold some of the used to calculate before-tax average 2. Historical versus Current Tax Rates annual total returns. The proposals also 3. Calendar versus Fiscal Year www.libertyfunds.com/liberty/lf/scripts/ would require funds that include after- Measurement Period inTheNews.jsp?BVlSessionID=@@@@0115467702. l tax returns in advertisements and other 4. State and Local Tax Liability 0949422874@@@@&BV EngineID= 5. Federal Alternative Minimum Tax and calglgclfhhbfdmckgcfjicil. 0> (estimate of the tax sales materials to include standardized Phaseout Adjustments burden based on net capital gains realized on after-tax returns. 6. Timing and Method of Tax Payment mutual funds other than money market funds, and DATES: 7. Tax Treatment of Distributions net investment income on equity, bond, and income Comments must be received on funds). 8. Capital Gains and Losses Upon a Sale of or before June 30, 2000. 3 KPMG Peat Marwick LLP, An Educational Fund Shares ADDRESSES: Comments should be Analysis of Tax-Managed Mutual Funds and the G. Narrative Disclosure submitted in triplicate to Jonathan G. Taxable Investor (‘‘KPMG Study’’), at 14. H. Alternatives to Disclosure of After-Tax 4 Jonathan Clements, Fund Distributions are a Katz, Secretary, Securities and Exchange Return Taxing Problem; How the Tax Man Dines on Your Commission, 450 5th Street, N.W., I. Technical and Conforming Amendments Funds, THE WALL STREET JOURNAL, Aug. 31, Washington, D.C. 20549–0609. J. Compliance Date 1999, at C1. Comments also may be submitted III. General Request For Comments 5 In a recent telephone survey, 1,000 mutual fund electronically at the following E-mail IV. Cost/Benefit Analysis investors were asked about their tax knowledge. Eighty-five percent of respondents claimed taxes address: [email protected]. All V. Summary Of Initial Regulatory Flexibility Analysis play an important role in investment decisions, but comment letters should refer to File No. only thirty-three percent felt that they were very S7–09–00; this file number should be VI. Paperwork Reduction Act knowledgeable about the tax implications of VII. Statutory Authority included on the subject line if E-mail is investing. Eighty-two percent were unable to Text Of Proposed Rules And Forms identify the maximum rate for long-term capital used. All comments received will be gains. The Dreyfus Corporation, Dreyfus’ 1999 Tax available for public inspection and I. Introduction Informed Investing Study (visited Jan. 14, 2000) copying in the Commission’s Public Taxes are one of the most significant . In another survey, Reference Room, 450 5th Street, N.W., 1,555 mutual fund investors were asked a variety costs of investing in mutual funds of questions to test their knowledge about mutual Washington, D.C. 20549–0102. through taxable accounts. In 1998, funds. Only 60 percent correctly answered a Electronically submitted comment mutual funds distributed approximately question asking them to identify factors that may letters will be posted on the $166 billion in capital gains and $134 influence after-tax returns. Brill’s Mutual Funds Interactive, Humberto Cruz: Take the Investor Commission’s Internet site (http:// 1 billion in taxable dividends. Literacy Test (visited Jan. 31, 2000) . 6 Maura S. McNulty, Senior Counsel, billion in taxes in 1997 on distributions I.R.C. 61(a)(3) and (7) (providing that an 2 individual’s gross income includes dividends and Martha B. Peterson, Special Counsel, or by their funds. Recent estimates gains derived from dealings in property); I.R.C. Kimberly Dopkin Rasevic, Assistant 852(b)(3)(8) (capital gain dividend from a mutual Director, (202) 942–0721, Office of 1 Investment Company Institute (‘‘ICI’’), MUTUAL fund treated as gain from sale or exchange of capital FUND FACT BOOK 56 (1999) (‘‘1999 MUTUAL asset held for more than one year); I.R.C. 1001 (gain Disclosure Regulation, Division of FUND FACT BOOK’’) (distributions of taxable from sale or other disposition of property is excess Investment Management, Securities and dividends included $81.9 billion on equity, hybrid, of amount realized over adjusted basis, and loss is Exchange Commission, 450 5th Street, and bond funds and $52.1 billion on money market excess of the adjusted basis over amount realized). N.W., Washington, D.C. 20549–0506. funds). See IRS Publication 564, Mutual Fund Distributions 2 Liberty Funds Distributor, Mutual Fund ‘‘Tax (1999), at 2–4 (explaining tax treatment of SUPPLEMENTARY INFORMATION: The Pain Index’’ Rises Again Despite Capital Gains Rate distributions of income and capital gains by mutual Securities and Exchange Commission Cut (visited Feb. 1, 2000)

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00002 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15501 fund’s underlying portfolio securities at addition, several fund groups have consequences of increased portfolio a gain.7 created new funds promoting the use of turnover and how this may affect fund The tax impact of mutual funds on more tax-efficient portfolio management performance.13 A fund also must investors can vary significantly from strategies.10 At the same time, a bill has disclose in its prospectus and annual fund to fund. For example, the amount been introduced in Congress that would report the portfolio turnover rate and and character of a fund’s taxable require the Commission to revise its dividends and capital gains distributions are affected by its regulations to require improved distributions per share for each of the investment strategies, including the disclosure of mutual fund after-tax last five fiscal years.14 While we believe extent of a fund’s investments in returns.11 Many press commenters also this disclosure is useful, we are securities that generate dividend and have highlighted the need for persuaded that funds can more other current income, the rate of improvements in mutual fund tax effectively communicate to investors the portfolio turnover and the extent to disclosure.12 tax consequences of investing. We are which portfolio trading results in Currently, the Commission requires therefore proposing for public comment realized gains, and the degree to which mutual funds to disclose significant amendments to our rules and to Form portfolio losses are used to offset information about taxes to investors. In N–1A, the registration form for mutual realized gains. One recent study its prospectus, a mutual fund is required funds, that would require disclosure of reported that the annual impact of taxes to disclose (i) the tax consequences of standardized mutual fund after-tax on the performance of stock funds buying, holding, exchanging, and selling returns. varied from zero, for the most tax- fund shares, including the tax This is the latest Commission action efficient funds, to 5.6 percentage points, consequences of fund distributions; and in our continuing effort to improve the for the least tax-efficient.8 While the tax- (ii) whether the fund may engage in quality of mutual fund disclosure in efficiency of a mutual fund is of little active and frequent portfolio trading to order to help investors make better- consequence to investors in 401(k) plans achieve its principal investment informed decisions. In 1998, for or other tax-deferred vehicles, it can be strategies, and, if so, the tax example, we adopted comprehensive very important to an investor in a amendments to Form N–1A in order to taxable account, particularly a long-term offered in their fund supermarkets. Fidelity focus the disclosure in a fund’s investor whose tax position may be Investments, Track After-Tax Fund Performance prospectus on essential information that On-Line (visited February 8, 2000) (after-tax returns for most to invest in the fund.15 We also capital gains. equity funds sold through the fund supermarket); permitted the use of a new short-form Recently, there have been increasing Short Takes: Schwab Offering On-Line Research document, the fund ‘‘profile,’’ which calls for improvement in the disclosure Access, THE AMERICAN BANKER, Jan. 5, 2000, at 6 (after-tax returns for funds listed by Morningstar, summarizes key information about a of the tax consequences of mutual fund Inc.). mutual fund.16 investments. Mutual funds, as well as Further, Morningstar, Inc., and Forbes report Over the years, we have implemented third party providers that furnish mutual fund after-tax returns. Morningstar, a number of initiatives to improve fund information to mutual fund MUTUAL FUND 500 (1999 ed.); Fund Survey, FORBES, Feb. 7, 2000, at 166. disclosure of costs and performance. We shareholders, are responding to this On-line tax calculators that calculate after-tax standardized before-tax fund growing investor demand by providing returns are also available. Andrew Tobias’ Mutual performance in advertisements and after-tax returns, calculators that Fund Cost Calculator, (visited Jan. 14, 2000) misleading performance claims by funds 9 (cost calculator includes a feature that calculates returns, and other tax information. In after-tax returns); Access Vanguard, After-Tax and to permit investors to make Returns Calculator (visited Jan. 19, 2000) . table in the prospectus and required gains to its shareholders in order to qualify for 10 The many fund groups offering funds labeled that a fund discuss its performance over favorable tax treatment as a ‘‘regulated investment as ‘‘tax-managed’’ or ‘‘tax-efficient’’ include the past year in its prospectus or annual company’’ (‘‘RIC’’). I.R.C. 852 and 4982(b). As a RIC, American Century, Eaton Vance, Liberty Funds, report to shareholders.19 a mutual fund is generally entitled to deduct Paine Webber, Prudential, T. Rowe Price, and More recently, we have increased our dividends paid to shareholders, resulting in its Voyager. Morningstar, Inc., currently tracks 42 tax- shareholders being subject to only one level of managed funds, as compared to 12 such funds only efforts to educate investors about taxation on the income and gains distributed to three years ago. Morningstar.com, Tax-Managed mutual fund costs and how those costs them. I.R.C. 851 (circumstances under which an Funds Keep Uncle Sam at Bay (visited Feb. 23, investment company may be treated as a RIC) and 2000) . 4 of Form N–1A. See, e.g., Year-End Tax Tips, Bob Edwards 11 The Mutual Fund Tax Awareness Act of 1999, 14 Items 9(a) and 22(b)(2) of Form N–1A. These (National Public Radio, Morning Edition radio H.R. 1089, 106th Cong., 1st Sess. (1999) (introduced items also require funds to show net realized and broadcast, Dec. 28, 1999) (describing tax by Congressman Paul Gillmor). See also H.R. 1089: unrealized gain or loss on investments on a per consequences of mutual fund distributions as a The Mutual Fund Tax Awareness Act of 1999: share basis for each of the fund’s last five fiscal ‘‘shock’’ to investors). Hearings Before the Subcomm. on Finance and years. 8 KPMG study, supra note 3, at 14 (reporting the Hazardous Materials of the House Comm. on 15 impact of taxes on performance of 496 stock funds Commerce, 106th Cong., 1st Sess. (Oct. 29, 1999) Investment Company Act Release No. 23064 for the ten-year period ending December 31, 1997). (Statement of the U.S. Securities and Exchange (Mar. 13, 1998) [63 FR 13916 (Mar. 23, 1998)] (‘‘Form N–1A Adopting Release’’), at 13917. 9 For example, Eaton Vance Management and The Commission Concerning Disclosure of the Tax 16 Vanguard Group have recently announced plans to Consequences of Mutual Fund Investments and Investment Company Act Release No. 23065 begin reporting after-tax returns to shareholders. Charitable Contributions). (Mar. 13, 1998) [63 FR 13968 (Mar. 23, 1998)], at Eaton Vance to Disclose After-Tax Returns, FUND 12 See, e.g., Karen Damato, Funds’ Tally of IRS 13969. ACTION, Dec. 20, 1999, Vol. X/No. 51, at 6; Access Bite Can Be Tricky, THE WALL STREET JOURNAL, 17 Investment Company Act Release No. 16245 Vanguard, Vanguard to Publish After-Tax Returns Nov. 3, 1999, at C1; Paul J. Lim, Your Money; Funds (Feb. 2, 1988) [53 FR 3868 (Feb. 10, 1988)], at 3869. in Equity and Balanced Fund Reports (Oct. 11, and 401(k)s; As Stock Market Returns Shrink, After- 18 Item 3 of Form N–1A; Investment Company Act 1999) (visited Feb. 1, 2000) . Fidelity Investments and Mutual Fund Gains Create Interesting Tax Issues 19 Item 5(a) of Form N–1A; Investment Company Charles Schwab & Co. also have begun offering Later, THE KANSAS CITY STAR, Mar. 23, 1999, at Act Release No. 19382 (Apr. 6, 1993) [58 FR 19050 Internet tools that feature after-tax returns of funds D19. (Apr. 12, 1993)] (‘‘MDFP Release’’).

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00003 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 15502 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules affect performance.20 Just last year, we one of many factors that an investor materials would be required to include introduced a ‘‘Mutual Fund Cost should consider in deciding whether to after-tax returns computed according to Calculator’’ to assist investors in invest in a particular fund, many a standardized formula.26 determining how fund fees and charges investors consider performance one of We considered whether, in lieu of affect their mutual fund returns.21 the most significant factors when requiring after-tax returns to be Today’s proposal represents another selecting or evaluating a fund.24 As a included in prospectuses and annual significant step in these efforts. Taxes result, we believe it would be beneficial reports, we should simply require that are one of the largest costs associated for funds to provide their after-tax funds voluntarily choosing to include with a mutual fund investment, having performance in order to allow investors after-tax returns in any materials a dramatic impact on the return an to make better-informed decisions. (prospectus, annual report, or sales investor realizes from a fund. Our Our proposals would require a fund to materials) also include after-tax returns proposal will help investors to disclose its standardized after-tax computed according to a standardized understand the magnitude of tax costs returns for 1-, 5-, and 10-year periods. formula. We concluded that this and compare the impact of taxes on the After-tax returns, which would approach would not achieve our basic performance of different funds. accompany before-tax returns in fund goal of providing investors in all mutual While the Commission recognizes that prospectuses and annual reports, would funds with better disclosure of the tax a significant amount of mutual fund be presented in two ways: (i) assuming consequences of their investments. assets are held through tax-deferred the shareholder continued to hold his or Permitting funds to choose whether to arrangements, such as 401(k) plans or her shares at the end of the period; and disclose after-tax returns could leave individual retirement accounts (ii) assuming the shareholder sold his or investors without the information (‘‘IRAs’’), approximately half of non- her shares at the end of the period, required to compare after-tax returns for money market fund assets held by realizing taxable gain or loss on the sale. each fund they were considering and individuals are held in taxable Although after-tax returns would not be could leave funds with the latitude to accounts.22 We are concerned that the required in fund advertisements and disclose this information only when it is millions of mutual fund investors who sales literature, any fund choosing to favorable. are subject to current taxation may not include after-tax returns in these Funds would calculate after-tax return fully appreciate the impact of taxes on materials would be required to include by using a standardized formula similar their fund investments because mutual after-tax returns computed according to to the formula presently used to funds are required to report their our standardized formula. calculate before-tax average annual total performance on a before-tax basis return.27 The proposal would require only.23 Although performance is only II. Discussion funds to disclose after-tax return for 1- A. Requirement to Disclose After-Tax 5-, and 10-year periods on both a ‘‘pre- 20 See, e.g., Securities and Exchange Commission, Return liquidation’’ and ‘‘post-liquidation’’ Mutual Fund Investing: Look at More Than a Fund’s basis. Pre-liquidation after-tax return Past Performance (last modified Jan. 24, 2000) The Commission is proposing to ; require that mutual funds disclose after- assumes that the investor continues to Securities and Exchange Commission, Invest hold fund shares at the end of the Wisely: An Introduction To Mutual Funds (last tax return, a measure of a fund’s performance adjusted to reflect taxes measurement period, and, as a result, modified Oct. 21, 1996) ; ‘‘Common Sense Investing in that would be paid by an investor in the the 21st Century Marketplace,’’ Remarks by Arthur fund. The proposal would require after- distributions by a fund to its Levitt, Chairman, SEC, Investors Town Meeting, tax return information to be included in shareholders but not any taxable gain or Albuquerque, NM (Nov. 20, 1999); ‘‘Financial Self- loss that would be realized by a Defense: Tips From an SEC Insider,’’ Remarks by the risk/return summary of the Arthur Levitt, Boston Globe ‘‘Moneymatters’’ shareholder upon the sale of fund prospectus and in Management’s 28 Personal Finance Conference, Boston, MA (Oct. 16, Discussion of Fund Performance shares. Post-liquidation after-tax 1999); Transparency in the United States Debt return assumes that the investor sells Market and Mutual Fund Fees and Expenses: (‘‘MDFP’’), which is typically contained in the annual report.25 Funds would not his or her fund shares at the end of the Hearings Before the Subcomm. on Finance and measurement period, and, as a result, Hazardous Materials of the House Comm. on be required to include after-tax returns Commerce, 105th Cong., 2nd Sess. (Sept. 29, 1998) in advertisements or other sales reflects the effect of both taxable (Statement of Arthur Levitt, Chairman, U.S. materials, although funds choosing to distributions by a fund to its Securities and Exchange Commission). shareholders and any taxable gain or 21 include after-tax returns in sales Securities and Exchange Commission, The SEC loss realized by the shareholder upon Mutual Fund Cost Calculator (last modified 29 December 6, 1999) . investors on our website, in which we cautioned after-tax return reflects the tax effects on 22 As of year end 1998, seventy-eight percent of investors to look beyond performance when shareholders of the portfolio manager’s mutual fund assets ($4.3 trillion) were held by evaluating mutual funds and to consider the costs purchases and sales of portfolio individuals. 1999 MUTUAL FUND FACT BOOK, relating to a mutual fund investment, including supra note 1, at 41. At the end of 1998, mutual fund fees, expenses, and the impact of taxes on their securities, while post-liquidation after- assets held in retirement accounts stood at $1.9 investment. Securities and Exchange Commission, tax return also reflects the tax effects of trillion. 1999 MUTUAL FUND FACT BOOK, at 47. Mutual Fund Investing: Look at More Than a Fund’s a shareholder’s individual decision to Mutual fund assets held by individuals in money Past Performance (last modified Jan. 24, 2000) sell fund shares. market funds stood at $714 billion. 1999 MUTUAL . The Commission proposes to require FUND FACT BOOK, at 90, 100. Thus, 47 percent See ICI, Understanding Shareholders’ Use of of non-money market fund assets held by Information and Advisers (Spring 1997), at 21 and the presentation of both pre-and post- individuals ($1.7 trillion) were held in taxable 24. (Total return information was frequently liquidation after-tax returns in order to accounts. considered by investors before a purchase, second provide investors with a more complete An investor is not taxed on his or her investments only to the level of risk of the fund. Eighty-eight understanding of the impact of taxes on in IRAs, 401(k) plans, and other qualified percent of fund investors surveyed said that they retirement plans until the investor receives a considered total return before their most recent distribution from the plan. I.R.C. 401 et seq. See IRS purchase of a mutual fund. Eighty percent of fund 26 Proposed rules 482(e)(4), 482(e)(5)(iii), and Publication 564, Mutual Fund Distributions (1999), owners surveyed reported that they followed a 34b–1(b)(1)(iii)(B). at 2 (explaining tax treatment of mutual funds held fund’s rate of return at least four times per year.). 27 See Item 21(b)(1) of Form N–1A. in retirement vehicles). 25 Proposed Items 2(c)(2)(i) and (iii) and 5(b)(2) of 28 Proposed Item 21(b)(3) of Form N–1A. 23 See Items 2, 5, 9, and 22(b)(2) of Form N–1A. Form N–1A. 29 Proposed Item 21(b)(4) of Form N–1A.

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00004 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15503 a fund’s performance. The relative value compared to the post-liquidation after- address whether we should require of these two measures of after-tax tax return measure that we are disclosure of after-tax returns for an performance is the subject of ongoing proposing (because both types of returns index or a peer group of funds. debate among industry participants. reflect fees and charges payable upon a B. Location of Required Disclosure Those who support the use of pre- sale of fund shares), but they may not liquidation after-tax return argue that usefully be compared to the pre- The proposal would require mutual pre-liquidation after-tax return provides liquidation after-tax return measure that funds to disclose after-tax returns in the the most relevant information for we are proposing (which does not performance table contained in the risk/ analyzing the tax impact of decisions by reflect fees and charges payable upon return summary of the prospectus and the portfolio manager.30 Others argue sale of fund shares). in the MDFP, which is typically that this measure of after-tax return, We are therefore proposing to require contained in the annual report.36 The taken alone, tends to overstate the that funds also disclose before-tax proposal also would have the effect of benefits of tax deferral on shareholder returns that do not reflect the deduction requiring the inclusion of after-tax gains.31 of fees and charges payable upon a sale returns in any fund profile because a We believe that pre-liquidation after- of fund shares. This would provide profile must include the prospectus tax return is important because it investors with a before-tax return risk/return summary.37 provides information about the tax- measure that can be compared with the We are proposing to require that after- efficiency of portfolio management pre-liquidation after-tax return measure tax returns be included in the decisions. We also believe, however, that we are proposing.35 In the prospectus because, for the that it is important for shareholders, alternative, we considered requiring that overwhelming majority of prospective many of whom hold shares for a pre-liquidation after-tax return reflect investors who base their investment relatively brief period, to understand the the deduction of any fees and charges decision, in part, on past performance, full impact that taxes have on a mutual payable upon a sale of fund shares. Pre- after-tax returns can be useful in fund investment that has been sold.32 liquidation after-tax return computed in understanding past performance.38 Therefore, we are proposing to require this way could usefully be compared to Including after-tax returns in the funds to disclose both measures of after- the before-tax return that is currently performance table of the risk/return tax return. required to be disclosed, but we were summary would assist prospective We are proposing that funds reflect concerned that investors would be investors in their investment decisions the deduction of any fees and charges confused by a pre-liquidation after-tax by making after-tax returns easy to find payable upon a sale of fund shares, such return measure that assumed no sale of and easy to compare with before-tax as sales charges or redemption fees, in fund shares for purposes of computing returns, which are currently presented post-liquidation after-tax returns but not tax consequences but nonetheless in this location.39 in pre-liquidation after-tax returns.33 reflected fees and charges payable upon We are proposing to include after-tax This is consistent with the fact that a sale of fund shares. returns in the MDFP because, for post-liquidation after-tax returns assume Commenters are requested to discuss existing shareholders, after-tax returns a sale of fund shares by the investor, whether we should require disclosure of are an important element to consider while pre-liquidation after-tax returns after-tax returns. Is this information when evaluating fund performance.40 do not. Funds are currently required to useful to, and understandable by, disclose before-tax returns reflecting the investors? Commenters are asked to 36 Proposed Items 2(c)(2)(iii) and 5(b)(2) of Form N–1A. deduction of any fees and charges address the relative merits of requiring 37 34 Rule 498(c)(2)(iii) under the Securities Act [17 payable upon a sale of fund shares. disclosure of after-tax returns versus CFR 230.498(c)(2)(iii)]. In addition, after-tax returns These before-tax returns may usefully be standardizing the computation of after- would be required in registration statements filed tax returns for funds that choose to on Form N–14 [17 CFR 239.23], the registration 30 See H.R. 1089: The Mutual Fund Tax form used by mutual funds to register securities to disclose after-tax returns. Should be issued in mergers and other business Awareness Act of 1999: Hearings Before the disclosure be mandatory only for funds Subcomm. on Finance and Hazardous Materials of combinations under the Securities Act. See Items the House Comm. on Commerce, 106th Cong., 1st that hold themselves out as ‘‘tax- 5(a) and 6(a) of Form N–14 (cross-referencing Items Sess. (Oct. 29, 1999) (Statement of Joel M. Dickson, managed’’ or otherwise managed with a 2 and 5 of Form N–1A). Principal, The Vanguard Group, Inc.) (stating that view to shareholder tax consequences? 38 An estimated 88 percent of mutual fund ‘‘the primary advantage of the pre-liquidation shareholders considered the total return of the fund calculation is that it isolates the effects on all Should we require disclosure of both before their most recent fund purchase. Seventy- shareholders of the taxes resulting from the pre-liquidation and post-liquidation five percent of mutual fund shareholders portfolio manager’s investment decisions’’). after-tax returns or is disclosure of one considered the fund’s performance relative to 31 See H.R. 1089: The Mutual Fund Tax of these measures sufficient? similar funds. ICI, UNDERSTANDING SHAREHOLDERS’ USE OF INFORMATION AND Awareness Act of 1999: Hearings Before the Commenters also are requested to Subcomm. on Finance and Hazardous Materials of ADVISERS (Spring 1997), at 21. the House Comm. on Commerce, 106th Cong., 1st discuss how we should address the 39 Item 2(c)(2)(iii) of Form N–1A. Sess. (Oct. 29, 1999) (Statement of David B. Jones, issue of providing a useful comparison 40 Eighty percent of mutual fund shareholders Vice President, Fidelity Management & Research for pre-liquidation after-tax returns. monitor the performance of their fund holdings at Co.) (stating that ‘‘pre-liquidation returns risk Should we, as proposed, require the least four times per year. ICI, UNDERSTANDING fostering the impression that taxes can be deferred SHAREHOLDERS’ USE OF INFORMATION AND indefinitely, which is not the case for most disclosure of before-tax return that does ADVISERS (Spring 1997), at 24. investors; and tend to exaggerate the benefits of tax not reflect the deduction of any fees and Form N–1A requires that the prospectus include deferral’’). charges payable upon a sale of fund the MDFP unless the information is included in the 32 A recent report estimates that over the past shares? Or should we require funds to fund’s latest annual report to shareholders and the decade the average holding period of mutual funds fund provides a copy of the annual report, upon has decreased from over 10 years to about 3 years. reflect the deduction of any fees and request and without charge, to each person to Steve Galbraith, Mary Medley, Sean Yu, The charges payable upon a sale of fund whom a prospectus is delivered. Item 5 of Form N– Apotheosis of Stuart—Lighting the Candle in U.S. shares in pre-liquidation after-tax 1A. A significant majority of funds currently Equities, Bernstein Research Call, Sanford C. returns or take some other approach? include the MDFP in their annual reports to Bernstein & Co., Jan. 10, 2000. shareholders. The Commission has directed the 33 Instruction 6 to proposed Item 21(b)(4) and Finally, commenters are asked to Division of Investment Management to draft Instruction 6 to proposed Item 21(b)(3) of Form N– proposed amendments to fund periodic reporting 1A. 35 Proposed Items 2(c)(2)(iii)(A), 5(b)(2)(i), and requirements, and has asked that, in connection 34 Instruction 4 to Item 21(b)(1) of Form N–1A. 21(b)(1) of Form N–1A. Continued

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The Commission added the MDFP location for tax information, inclusion • Permitting funds to provide after- requirement in response to investor of after-tax returns in this section would tax returns upon shareholder request concerns that mutual funds did not make them far less prominent than the only. provide sufficient information to permit before-tax returns included in the risk/ We determined not to propose any of investors readily to evaluate fund return summary. The financial these approaches because each would investment results.41 Including after-tax highlights table contains other tax place the burden of obtaining after-tax returns as part of the MDFP presentation information, such as dividends, capital return information on the investor, will enhance its usefulness. gain distributions, and portfolio which could greatly reduce investors’ We have considered alternative turnover rate.45 On the other hand, the receipt of this useful information. locations for disclosure of after-tax financial highlights table is not as Comment is requested on the returns, including: (i) The bar chart in prominently located in the prospectus appropriate location for disclosure of the risk/return summary; (ii) the section as the risk/return summary. Further, the after-tax returns and how best to convey of the prospectus describing the tax this information to both existing and information presented in the financial consequences to shareholders of buying, prospective investors. Should this highlights table is presented on a year- holding, exchanging, and selling fund information be included in the by-year basis, rather than on the average shares; and (iii) the financial highlights prospectus, annual report, profile, or table, which appears in both annual return basis over 1-, 5-, and 10- elsewhere? Commenters are asked to prospectuses and annual reports.42 Each year periods that is used in computing address the specific location in any of these other locations, however, standardized before-tax returns. document where this information presents some drawbacks that resulted We also have considered vehicles should be included (e.g., risk/return in our decision not to propose it as the other than the prospectus and annual summary, MDFP) and the advantages location for after-tax returns. reports for the disclosure of after-tax and disadvantages of the suggested The bar chart is prominently located returns, including: location. Commenters should address in the prospectus, but it is intended to • Requiring disclosure of after-tax the locations discussed in this release reflect fund volatility, not overall fund returns in the Statement of Additional and any other locations that they believe performance. 43 In addition, the would be appropriate. performance shown in the bar chart Information (‘‘SAI’’); does not reflect the deduction of sales • Providing funds with the option of C. Format of Disclosure loads or account fees and is presented disclosing after-tax returns on their We are proposing that before and for only a single class of a multiple class Internet website in lieu of including after-tax returns be presented in a fund.44 Although the tax section of the after-tax returns in the prospectus or standardized tabular format as prospectus could provide a centralized annual report; and follows: 46 AVERAGE ANNUAL TOTAL RETURNS [For the periods ended ÐÐ]

1 year 5 years 10 years

If You Continue to Hold Your Shares at End of Period: Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l% If You Sell Your Shares at End of Period: Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l% Index (reflects no deduction for fees, expenses, or taxes) ...... l% l% l%

Before-and after-tax returns would be We considered giving funds flexibility Commission should require that before- required to be presented in the order to create different formats for presenting and after-tax return information be specified, using the captions provided the required information. We elected presented in a specific format, using by Form N–1A.47 The table of returns not to propose this alternative because required captions. Does the proposed would be required for each class of a of potential investor confusion. We table present before-and after-tax return fund offered in the prospectus. The four believe that it would be easier for information in a clear and types of return for each class would be shareholders both to compare funds and understandable way? Do the proposed required to be presented adjacent to one to understand the differences among the captions adequately describe the another and not interspersed with the different measures of return for any information presented? Will investors returns of other classes or funds.48 This particular fund if all funds present this be able to understand the presentation should facilitate comparisons among the information in the same manner, using for funds with multiple classes and returns shown. the same captions. Commenters are multiple portfolios? Is there a more requested to address whether the with such a proposal, the Division consider 44 Instructions 1 and 3 to Item 2(c)(2) of Form N– The MDFP includes the performance of a broad- whether the MDFP would be more useful to 1A. based securities market index in the line graph that investors in shareholder reports. Form N–1A 45 Item 9 of Form N–1A. accompanies the table. See proposed Item Adopting Release, supra note 15, at 13929. 46 Proposed Items 2(c)(2)(iii) and 5(b)(2) of Form 2(c)(2)(iii) of Form N–1A; Item 5(b)(1) of Form N– 1A. 41 MDFP Release, supra note 19, at 19052. N–1A. Although the proposed performance table in the 47 Proposed Items 2(c)(2)(iii) and 5(b)(2) of Form 42 Items 2(c)(2), 7(e), and 9 of Form N–1A. prospectus risk/return summary includes the return N–1A. 43 Item 2(c)(2)(i) of Form N–1A; Form N–1A of a broad-based securities market index as shown 48 Instruction 3(c) to proposed Item 2 and Adopting Release, supra note 15, at 13922. in the text, the table required in the MDFP does not. Instruction 12 to proposed Item 5 of Form N–1A.

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effective way to present after-tax returns The proposed after-tax return We request that commenters discuss for these funds? information would largely be irrelevant whether the proposed exemptions from to investors in those arrangements the after-tax return disclosure D. Exemptions from the Disclosure because they are not subject to current requirements are appropriate. Should Requirement taxation on fund distributions and their tax-exempt funds or any other types of We are proposing to exempt money tax consequences on a sale of fund funds be exempted from the market funds from the requirement to shares are different than those requirements? disclose after-tax returns.49 We are also experienced by investors in taxable E. Advertisements and Other Sales proposing to permit a fund that is accounts.52 offered as an investment option in a The Commission considered whether Literature participant-directed defined to exclude tax-exempt funds from the The Commission is proposing to contribution plan or variable insurance requirement to disclose after-tax require that all fund advertisements and contract to omit the after-tax return returns.53 While most, if not all, income sales literature that include after-tax information in a prospectus for use by distributed by a tax-exempt mutual fund performance information also include participants in the plan or owners of the generally will be tax-exempt, a tax- after-tax returns computed according to contract.50 exempt mutual fund may also make the standardized formulas prescribed in Money market funds typically do not capital gains distributions that are Form N–1A for computation of after-tax accumulate or distribute capital gains taxable and an investor is taxable on returns in the risk/return summary and and their returns are generally in the gains from the sale of fund shares.54 As MDFP.56 Any quotation of non- form of income distributions, which are a result, the performance of a tax- standardized after-tax return also would taxable on a current basis. As a result, exempt fund may be affected by taxes be subject to the same conditions the tax consequences of investing in and taxes may have a greater or lesser currently applicable to quotations of different money market funds should be impact on different tax-exempt funds. non-standardized performance that are similar, i.e., current taxation on income Therefore, we have not proposed to included in fund advertisements and distributions. For this reason, requiring exclude tax-exempt funds from the sales literature.57 Requiring money market funds to disclose after-tax required disclosure.55 advertisements and sales literature that returns would not significantly assist an include after-tax returns also to include investor in comparing different money information required by Form N–1A to include standardized pre-and post-liquidation prospectuses used to offer fund shares as after-tax returns is intended to prevent market funds. In addition, it could place investment options for plans or arrangements money market funds at a competitive advertisements and sales literature from ` similar to those currently enumerated in General disadvantage vis-a-vis competing Instruction C.3.(d)(i) of Form N–1A. Proposed being misleading and to permit financial products, such as bank savings General Instruction C.3(d)(i)(D) of Form N–1A. We shareholders to compare claims about are proposing this change in order to accommodate after-tax performance. accounts and certificates of deposit, that future changes in the tax law that may permit new are not required to disclose after-tax types of plans or arrangements similar to those Comment is requested regarding the returns. For these reasons, we have currently enumerated in the instruction. inclusion of after-tax returns in fund determined not to extend to money 52 See IRS Publication 575, Pension and Annuity advertisements and other sales Income (1999), at 4 (explaining tax treatment of literature. Is the proposed requirement market funds the requirement to earnings under a variable annuity contract) and 8– disclose after-tax returns. 19 (explaining tax treatment of distributions from to disclose standardized after-tax We also are proposing to permit a retirement plans); IRS Publication 525, Taxable and returns in any advertisement or other fund to omit the after-tax return Non-Taxable Income (1999), at 3 (explaining tax sales literature containing after-tax information in a prospectus used treatment of contributions to a retirement plan) and 22 (explaining tax treatment of proceeds of a life 56 exclusively to offer fund shares as insurance contract); IRS Publication 575, Pension Proposed rule 482(e)(4) would permit the and Annuity Income (1999), at 4 (tax treatment of standardized after-tax returns for 1-; 5-; and 10-year investment options for: periods to be contained in an advertisement, • A defined contribution plan that Section 457 Deferred Compensation Plan); IRS Publication 571, Tax Sheltered Annuity Programs provided that the standardized after-tax returns (i) meets the requirements for qualification for Employees of Public Schools and Certain Tax- are current to the most recent calendar quarter under section 401(k) of the Internal Exempt Organizations (1999), at 2 (explaining tax ended prior to the submission of the advertisement Revenue Code (‘‘Code’’); treatment of Section 403(b) tax sheltered annuities). for publication; (ii) are accompanied by quotations of standardized before-tax return; (iii) include both • A tax-deferred arrangement under 53 The Division of Investment Management has taken the position that an investment company with pre-and post-liquidation standardized after-tax section 403(b) or 457 of the Code; returns; (iv) are set out with equal prominence to • a name that implies that its income distributions A variable insurance contract as will be exempt from federal income taxation should one another and in no greater prominence than the defined in section 817(d) of the Code, if have a fundamental policy requiring that during required quotations of standardized before-tax periods of normal market conditions (i) the fund return; and (v) identify the length of and the last covered in a separate account day of the 1-, 5-, and 10-year periods. prospectus; or will have at least 80 percent of its net assets in tax- • exempt securities or (ii) the fund’s assets will be Any other measures of after-tax return could be A similar plan or arrangement invested so that at least 80 percent of the income included in advertisements if accompanied by the pursuant to which an investor is not will be tax-exempt. The Commission has proposed standardized measures of after-tax return. Proposed taxed on his or her investment in the to codify this position. Investment Company Act rule 482(e)(5)(iii). Similarly, measures of after-tax return could be included in other sales materials if fund until the investment is sold.51 Release No. 22530 (Feb. 27, 1997) [62 FR 10955 (Mar. 10, 1997)], correction [62 FR 24161 (May 2, accompanied by the standardized measures of after- 1997)], at 10958. tax return. Proposed rule 34b–1(b)(1)(iii)(B). 49 Proposed Item 2(c)(2)(iii) of Form N–1A. 54 Interest on any state or local bond is excluded 57 Specifically, any measure of after-tax return in Money market funds are already exempted from the from gross income. However, there is no exclusion a rule 482 advertisement would have to reflect all requirements of Item 5 of Form N–1A. for capital gains resulting from the sale of such elements of return and could be set out in no greater 50 Proposed General Instruction C.3(d)(i) of Form bonds. See I.R.C. 103(a); IRS Publication 564, prominence than the required quotations of N–1A. The proposed instruction would permit a Mutual Fund Distributions (1999), at 2 (describing standardized before-tax and after-tax returns. The fund to omit from its prospectus the information tax treatment of tax-exempt mutual funds). advertisement would have to identify the length of required by Items 2(c)(2)(iii)(A), (B), and (D), and 55 A tax-exempt fund, like any other fund, may and the last day of the period for which 2(c)(2)(iv), 5(b)(2)(i), (ii), and (iv), and 5(b)(3) if the assume, when calculating after-tax returns, that no performance is measured. Proposed rule fund’s prospectus will be used exclusively to offer taxes are due on the portions of any distribution 482(e)(5)(i), (iv), and (v). fund shares as investment options in specified that would not result in federal income tax on an In addition, any sales literature that contains a types of plans. individual. Instruction 3 to proposed Item 21(b)(3) quotation of performance that has been adjusted to 51 Id. We propose expanding the types of and Instruction 3 to proposed Item 21(b)(4) of Form reflect the effect of taxes would remain subject to prospectuses that may omit or modify certain N–1A. the other requirements of rule 34b–1.

VerDate 202000 17:39 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00007 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm04 PsN: 22MRP2 15506 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules returns appropriate? Should any funds tax returns, including the proposed mutual fund investors.63 We decided be exempted from this requirement? assumptions and whether other not to propose this approach because it Commenters are also requested to assumptions would be more would not provide information address whether the Commission appropriate. Commenters are asked to regarding the maximum impact that should require that all fund quantify the significance of different federal income taxes could have on a advertisements and sales literature that assumptions. fund’s return and because of the include any quotation of performance, complexity of determining the including before-tax performance, 1. Tax Bracket appropriate intermediate rate from one include standardized after-tax returns. We are proposing that standardized year to the next as tax brackets and tax rates change. We also considered F. Formulas for Computing After-Tax after-tax returns be calculated assuming proposing that after-tax returns be Return that distributions and gains on a sale of presented using multiple rates, but fund shares are taxed at the highest Our proposals would require that rejected this approach because it would applicable individual federal income tax funds compute after-tax returns using result in a fairly complex table of rate.61 Computing after-tax returns with standardized formulas that are based returns that could be overwhelming. largely on the current standardized maximum tax rates will provide We request comment on our proposal formula for computing before-tax investors with the ‘‘worst-case’’ federal to use maximum tax rates to compute average annual total return.58 After-tax income tax scenario. Coupled with after-tax returns. Are there preferable returns would be computed assuming a before-tax returns that reflect the alternatives? Commenters who believe hypothetical $1,000 one-time initial imposition of taxes at a 0% rate, this that maximum tax rates should not be investment and the deduction of the ‘‘worst-case’’ scenario will effectively used because they are higher than the maximum sales load and other charges provide investors with the full range of rates paid by typical mutual fund from the initial $1,000 payment.59 Also, historical after-tax returns. Short of investors are asked to address whether after-tax average annual total returns providing investors with after-tax their concerns are mitigated by our would be calculated for 1-;, 5-;, and 10- returns computed at each tax rate, decision not to reflect state and local year periods.60 which we have decided not to propose taxes, which will tend to result in an The computation of after-tax return because of the complexity of the understated overall tax burden.64 depends on several assumptions, such resulting disclosure, we believe that Commenters are asked to address as tax bracket, that vary from investor to providing investors with the full range whether the after-tax performance investor. As a result, the proposed of federal income tax outcomes (0% and rankings of funds relative to each other standardized after-tax return measures maximum rate) would provide investors depend on the tax rates used to compute are not intended as precise the most complete information. In returns and, if so, to indicate how this computations of any individual reaching this conclusion, we looked for should affect the rate adopted by the investor’s after-tax returns from a fund, guidance to current industry practice. Commission for the computation of but as guides to understanding the effect Both funds and third party providers of after-tax returns. Commenters who favor of taxes on the fund’s performance. In information that provide after-tax the use of an intermediate rate should this regard, the proposed standardized performance information to investors specify how the rate should be selected after-tax return measures are similar to frequently use the highest tax rates and how the rate should be established the standardized before-tax returns, when calculating after-tax return.62 each year. Commenters who favor the which also are dependent on We considered proposing that after- use of multiple rates should suggest a assumptions such as the purchase and tax returns be presented using format for presenting the resulting table sale date of fund shares, and do not intermediate tax rates in order to of returns. precisely measure an individual approximate the rates paid by typical investor’s before-tax returns. The 2. Historical versus Current Tax Rates Commission believes that the The Commission is proposing to 61 Instruction 4 to proposed Item 21(b)(3) of Form presentation of standardized after-tax N–1A; Instructions 4 and 7(d) to proposed Item require funds to calculate after-tax returns, coupled with the presentation 21(b)(4) of Form N–1A. returns for 1-, 5-, and 10-year periods of standardized before-tax returns, will Currently, the highest individual marginal using the historical tax rates that were provide investors with a more complete income tax rate imposed on ordinary income is in effect during these periods, rather 39.6%, and the highest rate imposed on long-term than the rates that are in effect at the and accurate picture of a fund’s capital gains is 20%. I.R.C. 1(a)–(d), (h). 65 performance than the before-tax returns 62 See, e.g., Access Vanguard, Vanguard to time the computation is performed. standing alone. Publish After-Tax Returns in Equity and Balanced The use of historical rates will more The assumptions that the Commission Fund Reports (Oct. 11, 1999) (visited Feb. 1, 2000) accurately reflect a fund’s actual after- proposes to require funds to use in ; Fidelity Investments, Track calculating after-tax returns are After-Tax Fund Performance On-Line (visited Feb. a fund has been managed in response to described in this section. Commenters 1, 2000) ; Morningstar, seems most appropriate to judge the proposed formulas for computing after- MUTUAL FUND 500 (1999 ed.); Catherine Voss effectiveness of the management Sanders, Making April Less Taxing, 5 strategy by applying tax rates that were MORNINGSTAR INVESTOR, Feb. 1997; 58 Item 21(b)(1) of Form N–1A. Under the Association for Investment Management and proposal, before-and after-tax returns included in Research, AIMR PERFORMANCE 63 The median income of mutual fund the risk/return summary and the MDFP would be PRESENTATIONS STANDARDS HANDBOOK (2d shareholders is approximately $ 55,000. ICI, 1998 calculated as provided in proposed Item 21(b)(1)– ed. 1997), at 59; Mutual Fund Scoreboard, Business Profile of Mutual Fund Investors (Summer 1999). (4) of Form N–1A. Instruction 2(a) to proposed Item Week, Feb. 1, 1999. But see The Ultimate Mutual An individual taxpayer with taxable income over 2 and proposed Item 5(b)(2) of Form N–1A. Fund Guide 2000, MONEY, Feb. 2000, at 64 $25,750 but not over $62,450 is taxed at a marginal 59 Proposed Items 21(b)(3) and 21(b)(4) of Form (reporting mutual fund tax-efficiency calculated rate of 28 percent.I.R.C. 1(c). N–1A; Instruction 1 to proposed Item 21(b)(3) and based on the return of an investor in the 28 percent 64 See discussion below at II.F.4 (State and Local Instruction 1 to proposed Item 21(b)(4) of Form N– federal tax bracket); Fund Survey, FORBES, Feb. 7, Tax Liability). 1A. 2000, at 166 (reporting after-tax returns reflecting 65 Instruction 4 to proposed Item 21(b)(3) and 60 Proposed Items 21(b)(3) and 21(b)(4) of Form ‘‘the tax liability of an upper-middle income Instructions 4 and 7 to proposed Item 21(b)(4) of N–1A. investor’’). Form N–1A.

VerDate 202000 17:39 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00008 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm04 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15507 in place at the time. In addition, if would effectively change every time the the most recent ten complete calendar current rates were used, the historical current rates change. years and the current calendar year after-tax returns for previous periods Under our proposal, the rates to be would be as follows: used for computing after-tax returns for

MAXIMUM INDIVIDUAL INCOME TAX RATES [1990±2000]

Short-term gains/or- Long-term gains 66 Year Mid-term gains dinary income (Percent) (Percent)

2000 ...... 20 ...... 39.6 1999 ...... 20 ...... 39.6 1998 ...... 20 ...... 39.6 7/29/97±12/31/97 ...... 20 28 39.6 5/7/97±7/28/97 ...... 20 ...... 39.6 1/1/97±5/6/97 ...... 28 ...... 39.6 1996 ...... 28 ...... 39.6 1995 ...... 28 ...... 39.6 1994 ...... 28 ...... 39.6 1993 ...... 28 ...... 39.6 1992 ...... 28 ...... 31 1991 ...... 28 ...... 31 1990 ...... 28 ...... 33

We request comment on the MDFP.68 We believe that this vary widely, and there is no single tax advantages and disadvantages of using presentation would facilitate investor rate that could serve as a reasonable historical or current tax rates in comparisons of before-tax and after-tax proxy for the state and local tax computing after-tax return. We also returns. burden.70 Presentation of separate after- request comment on whether the above Comment is requested on our tax returns for all 50 states and the table accurately states the highest tax proposal to require calendar year after- District of Columbia would be rates for the periods and categories tax returns in the risk/return summary overwhelming for investors and specified. The Commission anticipates and fiscal year after-tax returns in the burdensome for funds. MDFP. Commenters who believe the that, if we adopt a rule requiring We request comment on whether the proposal should be modified should disclosure of after-tax returns using after-tax return calculations should address whether similar modifications maximum historical rates, it will not be reflect the effect of state and local taxes. should be made in the presentation of necessary for the Commission to publish Commenters who support adjusting before-tax returns. Will the use of either the rates for future years. Is there any after-tax returns for state and local taxes the fiscal year or the calendar year reason why it would be necessary for us should address how that should be to publish those rates? encourage funds to ‘‘time’’ distributions or portfolio transactions in any way to done. Commenters also should address 3. Calendar versus Fiscal Year artificially enhance the after-tax returns alternative means, such as narrative Measurement Period presented? disclosure, by which funds can convey Under the proposal, after-tax returns to investors the impact of state and local 4. State and Local Tax Liability that appear in a fund’s performance taxes. table in the risk/return summary would In order to simplify the computation 5. Federal Alternative Minimum Tax be calculated based on calendar-year and presentation of after-tax returns, we and Phaseout Adjustments periods, consistent with the before-tax propose to exclude state and local tax return disclosure that currently appears liability although this will tend to result Tax law provides favored treatment to in the risk/return summary.67 After-tax in after-tax returns that are somewhat certain kinds of income and expenses. returns that appear in the MDFP would overstated.69 State and local tax rates Taxpayers who benefit from this special be calculated on a fiscal year basis, treatment may be subject to at least a consistent with the before-tax return 68 Proposed Item 5(b)(2) of Form N–1A; Item minimum amount of tax through the 5(b)(2) of Form N–1A (fiscal year disclosure of 71 disclosure that currently appears in the before-tax returns in MDFP). ‘‘alternative minimum tax.’’ In 69 Instruction 4 to proposed Item 21(b)(3) and addition, certain tax credits, 66 I.R.C. 1; Standard Federal Tax Reports, 99 Instruction 4 to proposed Item 21(b)(4) of Form N– exemptions, and deductions are phased Index (CCH) 144, ¶ 601. 1A. out for taxpayers whose adjusted gross The holding period for long-term gains is more In general, funds and third parties that provide than 12 months, except for the period from July 29, investors with information regarding after-tax ed. 1997) at 59; Morningstar, MUTUAL FUND 500 1997, through December 31, 1997, when it was returns do not reflect the effect of state and local (1999 ed.); Fund Survey, FORBES, Feb. 7, 2000, at more than 18 months. During that period, a ‘‘mid- taxes on return. See, e.g, Access Vanguard, 166. term’’ capital gains rate applied if property was Vanguard to Publish After-Tax Returns in Equity 70 Some states, such as Alaska, Florida, and held more than 12 months but not more than 18 and Balanced Fund Reports (Oct. 11, 1999) (visited months. See I.R.C. 1222 (defining short-and long- Feb. 1, 2000) ; Fidelity Investments, states impose taxes at rates as high as 12%. See Fund Distributions (1997), at 9; IRS Publication 564, Track After-Tax Fund Performance On-Line (visited Federation of Tax Administrators, State Individual Mutual Fund Distributions (1998), at 1 (describing Feb. 1, 2000) ; www.taxadmin.org/fta /rate/ind inc.html>. 67 Proposed Item 2(c)(2)(iii) of Form N–1A; Item Association for Investment Management and 71 I.R.C. 55. See IRS Publication 17, Your Federal 2(c)(2)(iii) of Form N–1A (calendar-year disclosure Research, AIMR PERFORMANCE Income Tax (1999), at 203 (explaining the effect of of before-tax returns in risk/return summary). PRESENTATIONS STANDARDS HANDBOOK (2d the alternative minimum tax).

VerDate 202000 17:39 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00009 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm04 PsN: 22MRP2 15508 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules income is above a specified amount.72 declaration date, adjusted to reflect would therefore be required to track the The proposed after-tax return formulas subsequent recharacterizations. Tax- actual holding periods of reinvested would not take into account the effect exempt interest and non-taxable returns distributions and could not assume that of either the alternative minimum of capital would be assumed to result in they have the same holding period as income tax or phaseouts.73 no taxes.75 the initial $1,000 investment.78 We believe that adjusting after-tax We have not proposed to specify in The tax laws limit the extent to which returns to reflect the impact of these detail the tax consequences of fund a fund shareholder may deduct capital provisions of tax law would complicate distributions or other features having losses when the taxpayer does not have the after-tax return calculations without more complicated tax characteristics offsetting gains.79 In order to simplify providing a commensurate benefit to a (e.g., distributions derived from REIT the computation of post-liquidation significant number of investors. income, distributions derived from after-tax returns, we are proposing to Comment is requested regarding commodities gains, foreign tax credits or allow funds to assume that a taxpayer whether the after-tax return formulas deductions that pass through with has sufficient capital gains of the same should reflect the impact of the respect to foreign source income). Funds character to offset any capital losses alternative minimum tax, the phaseouts, should determine the tax consequences upon a sale of fund shares and therefore or any other taxes or adjustments not of such distributions or features by that the taxpayer may deduct the entire reflected in the proposed formulas. applying the tax law in effect on the capital loss.80 6. Timing and Method of Tax Payment date the distribution is reinvested. Commenters are requested to discuss Commenters are requested to address the proposed computation of capital The proposed after-tax return whether the formula for calculating gains taxes and the tax benefits from calculations would assume that any after-tax returns should be more specific capital losses on a sale of fund shares. taxes due on a distribution are paid out in any way. Should funds be required to track the of that distribution at the time the actual holding periods of reinvested distribution is reinvested and would 8. Capital Gains and Losses Upon a Sale distributions, as proposed, or should 74 reduce the amount reinvested. We of Fund Shares they be permitted to assume that have chosen this method to simplify the The proposal would require that post- reinvested distributions have the same calculations, although we recognize that holding period as the initial $1,000 many investors do not pay income taxes liquidation after-tax return be computed assuming a complete sale of fund shares investment? Should capital losses on a out of the corresponding distributions. sale of fund shares be permitted to be For example, a taxpayer might pay his at the end of the 1-, 5-, or 10-year measurement period, resulting in capital deducted in full, or should the or her taxes out of a bank account, either deduction be limited in some way? on estimated tax payment due dates or gains taxes or a tax benefit from any 76 on April 15 of the year following the tax resulting capital losses. In computing G. Narrative Disclosure year. Or a taxpayer might pay taxes by the taxes from any gain or the tax benefit from any loss, the rate used The proposal would require funds to redeeming fund shares at the time a tax include a short, explanatory narrative payment is due. We request comment would be required to correspond to the tax character of the capital gain or loss adjacent to the performance table in the on how the after-tax return formulas 81 (e.g., short-term or long-term). The tax risk/return summary and the MDFP. should reflect the timing and method of This is intended to facilitate investor tax payment. Commenters favoring character of the capital gain or loss would be determined by the length of methods other than that proposed extent such gain is taken into account in computing should specify in detail how the the measurement period (1, 5, or 10 gross income’’). proposed formula should be modified to years) in the case of the initial $1,000 78 Instruction 7(c) to proposed Item 21(b)(4) of reflect those methods. investment and the length of the period Form N–1A. between the reinvestment and the end 79 Under the Code, when calculating taxable 7. Tax Treatment of Distributions of the measurement period in the case income, an investor may fully offset short-term 77 capital gains with short-term capital losses and The proposed after-tax return of reinvested distributions. A fund fully offset long-term capital gains with long-term formulas would require that the taxable capital losses. Net short-term capital gain or loss amount and tax character (e.g., ordinary 75 Instruction 3 to proposed Item 21(b)(3) and may then be offset against net long-term capital gain income, short-term capital gain, long- Instruction 3 to proposed Item 21(b)(4) of Form N– or loss. If capital gains exceed capital losses, the 1A. investor is taxed on the difference at a rate that is term capital gain) of each distribution be 76 Instructions 6 and 7 to proposed Item 21(b)(4) determined by whether the net gain is short-or long- as specified by the fund on the dividend of Form N–1A. term. If capital losses exceed capital gains, the The capital gain or loss on the sale of fund shares difference may be deducted from ordinary income, 72 E.g., I.R.C. 151(d)(3) (phaseout of personal would be computed by subtracting the tax basis subject to a yearly limit of $3,000. I.R.C. 1211(b)(2) exemptions). See IRS Publication 501, Exemptions, from the redemption proceeds. Instruction 7(a) to (providing that in the case of a taxpayer other than Standard Deduction and Filing Information (1999). proposed Item 21(b)(4) of Form N–1A. The tax basis a corporation, losses from sales or exchanges of 73 Proposed Instruction 4 to Item 21(b)(3) and would include the $1,000 initial payment and capital assets shall be allowed only to the extent of proposed Instruction 4 to Item 21(b)(4) of Form N– reinvested distributions, net of taxes assumed paid the gains from such sales or exchanges, plus (if such 1A. from the distributions, but not net of any sales loads losses exceed such gains) the lower of $3,000 74 Instruction 2 to proposed Item 21(b)(3) and imposed upon reinvestment. In addition, the tax ($1,500 in the case of a married individual filing a Instruction 2 to proposed Item 21(b)(4) of Form N– basis would be adjusted for any distributions separate return) or the excess of such losses over 1A. representing returns of capital and any other tax such gains.) See IRS Publication 544, Sales and This methodology is generally consistent with basis adjustments applicable to an individual Dispositions of Assets (1999), at 30 (explaining tax that used by industry participants. See, e.g., taxpayer. Instruction 7(b) to proposed Item 21(b)(4) treatment of capital gains and losses). 80 Morningstar, MUTUAL FUND 500 (1999 ed.); of Form N–1A. Instruction 7(d) to proposed Item 21(b)(4) of Fidelity Investments, Track After-Tax Fund 77 Instruction 7(d) to proposed Item 21(b)(4) of Form N–1A. Performance On-Line (visited Feb. 1, 2000) ; Access Vanguard, returns for a one-year period, all gains realized The line graph in the MDFP also would be Vanguard After-Tax Return Calculator (visited Feb. upon a sale of fund shares at the end of the one- required to be accompanied by a statement to the 1, 2000) . asset held for not more than 1 year, if and to the shares. Proposed Item 5(b)(2) of Form N–1A.

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00010 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15509 understanding of the table. The included in fund advertisements and preferable to after-tax returns? We also narrative would be required to be in other sales materials that present after- request comment on whether, and how, plain English, but we are not proposing tax performance. Should we require any narrative disclosure in this area should to mandate that specific language be narrative disclosure in advertisements be improved. For example, should the used.82 The proposal would require the and sales literature and, if so, what prospectus be required to describe the following information to be included in should it be? potential tax consequences to an 83 investor of purchasing fund shares the narrative disclosure: H. Alternatives to Disclosure of After- • The differences among the four shortly before a dividend declaration Tax Return types of return presented, including date (i.e., ‘‘buying the dividend’’) or whether the returns reflect redemption We considered other possible purchasing shares in a fund that has and the charges and taxes associated methods for improving the disclosure of significant amounts of unrealized gain with redemption; the tax consequences of mutual fund in its portfolio securities? 86 Should • Before-tax returns assume that all investments, including tax-efficiency shareholder reports be required to distributions are reinvested; ratios and potential capital gains describe the tax management strategies • The assumptions used in exposure. the fund used in the most recent period? calculating after-tax returns, including Tax-Efficiency Ratios. A tax-efficiency ratio is a ratio of after-tax and before-tax I. Technical and Conforming (i) the use of the historical highest Amendments individual federal marginal income tax returns that measures the proportion of rates; (ii) the assumption that taxes are before-tax return that remains after We are proposing to amend Rule 84 paid out of fund distributions and that taxes. We are not proposing to require 482(e)(3) under the Securities Act in distributions, less taxes, are reinvested; funds to disclose tax-efficiency ratios order to clarify that the average annual (iii) the exclusion of state and local because we believe that these ratios may total returns that are required to be taxes; and (iv) if post-liquidation after- be more difficult for investors to shown in any performance tax returns are higher than before-tax interpret than after-tax returns. In any advertisement are before-tax returns net returns net of fees and charges payable event, tax-efficiency ratios may be of fees and charges payable upon a sale 87 upon sale of fund shares, the reason for readily derived from before- and after- of fund shares. This clarification is this result, including the assumption tax returns by taking the quotient of necessary because we have added other that a shareholder has sufficient gains these two numbers. types of return to Form N–1A. Potential Capital Gains Exposure. from other sources to offset all losses We also are proposing to amend rule When the securities in a mutual fund from the redemption of fund shares; 34b–1(b)(3) under the Investment portfolio appreciate in value, the tax • Actual after-tax returns depend on Company Act, which excludes liability is deferred until the securities an investor’s tax situation and may performance information contained in are sold by the fund and the gains are differ from those shown; periodic reports to shareholders from distributed. An investor who invests in • The after-tax returns shown are not the updating requirements of rule 34b– a mutual fund with large amounts of relevant to investors who hold their 1. The proposed amendment extends unrealized capital gain, or capital gains fund shares through tax-deferred the exclusion to standardized after-tax that have been realized but not arrangements, such as 401(k) plans or return information contained in distributed, can potentially have 88 individual retirement accounts; and periodic reports to shareholders. significantly greater tax liability in the We also are proposing to delete an • After-tax returns reflect past tax future than an investor in a similar fund instruction contained in Form N–1A effects and are not predictive of future that has less unrealized or undistributed that provides that total return tax effects. gain. We considered requiring funds to information in a mutual fund Comment is requested on the include in their prospectuses a measure prospectus need only be current to the proposed narrative disclosure. Should of capital gains exposure that shows the end of the fund’s most recent fiscal any of the proposed items be percentage of a fund’s assets that year.89 The instruction is unnecessary eliminated? Should any other items be represents unrealized and realized but because the items of Form N–1A that added? Should the narrative disclosure undistributed capital gains.85 While we require funds to include total returns in be specifically required to precede or believe that this measure could provide the prospectus have explicit follow the performance table? Should it useful information, it would not provide instructions about how current the total appear in another location? Should information about the historical tax return information must be.90 funds have the flexibility to craft their consequences of a fund’s distributions. J. Compliance Date own narrative disclosure, as proposed, We believe that pre- and post- or should the Commission require liquidation after-tax returns, taken If we adopt the proposed disclosure specific language for part or all of the together, would provide a more requirements, we expect to require all explanation? complete picture. We are not proposing to require that We request comment on these and 86 When a fund makes a distribution to its specific items of narrative disclosure be other measures that could provide shareholders, the net asset value of the shares declines by the amount of the distribution. Thus, investors with enhanced information a person who makes a taxable investment in a 82 See rule 421(b) and (d) under the Securities Act about the tax consequences of mutual [17 CFR 230.421(b) and (d)](requiring that all mutual fund shortly before a distribution may have information in the prospectus be presented in clear, fund investments. Are any measures part of his or her initial investment returned in the concise, and understandable fashion and that form of a taxable distribution. 87 registrants use plain English principles in the 84 See Morningstar, MUTUAL FUND 500 (1999 17 CFR 230.482(e)(3). organization, language, and design of the summary ed.) (reporting mutual fund tax-efficiency ratios); 88 17 CFR 270.34b–1(b)(3)(iii)(B). and risk factors sections of their prospectuses); The Ultimate Mutual Fund Guide 2000, MONEY, 89 Instruction 6 to Item 21(b)(1) of Form N–1A. General Instruction C.1 to Form N–1A (fund Feb. 2000, at 64 (reporting mutual fund tax- 90 Item 2(c)(2)(iii) of Form N–1A (providing that prospectus should be easy to understand and efficiency). total returns included in the risk/return summary promote effective communication); Item 2 of Form 85 Both Morningstar, Inc., and Business Week must be current to the end of the most recently N–1A (requiring that the response to Item 2 be publish measures of capital gains exposure. completed calendar year); Item 5(b)(2) of Form N– stated in plain English). Morningstar, MUTUAL FUND 500 (1999 ed.); 1A (providing that total return in the MDFP must 83 Proposed Items 2(c)(2)(iv) and 5(b)(3) of Form Mutual Fund Scoreboard, BUSINESS WEEK, Feb. 1, be as of the end of the last day of the most recent N–1A. 1999. fiscal year).

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00011 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 15510 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules new registration statements, post- presented in a standardized tabular creates the possibility that after-tax effective amendments that are annual format. Although after-tax returns performance information as currently updates to effective registration would not be required in fund reported could be misleading or statements, reports to shareholders, and advertisements and sales literature, any confusing to investors. profiles filed six months or more after fund choosing to include after-tax The proposed amendments should the effective date of the amendments to returns in these materials would be also increase the amount of after-tax comply with the proposed amendments. required to include after-tax returns performance information available to The Commission requests comment on computed according to our standardized investors. With the exception of the few this proposed compliance date. formula. funds that publish after-tax performance information, investors currently must III. General Request For Comments A. Benefits rely on third party providers to obtain The Commission requests comment Taxes are one of the most significant information regarding a fund’s after-tax on the amendments proposed in this costs of investing in mutual funds performance. Release, suggestions for additional through taxable accounts. Currently, the Moreover, by providing investors with provisions or changes to existing rules Commission requires mutual funds to information regarding a fund’s after-tax or forms, and comments on other disclose significant information about performance, our proposal will help matters that might have an effect on the taxes to investors.93 While this investors understand the magnitude of proposals contained in this Release. We disclosure is useful, we believe funds tax costs and how they affect fund also request comment on whether the can more effectively communicate to performance. Increased understanding proposals, if adopted, would promote investors the tax consequences of should have the beneficial effect of efficiency, competition, and capital investing. Therefore, the Commission is enhancing investor confidence in the formation. We will consider those proposing amendments to Form N–1A fund industry. comments in satisfying our and rules 482 and 34b–1 that would B. Costs responsibilities under section 2(c) of the require disclosure of standardized Investment Company Act, section 2(b) mutual fund after-tax returns. Funds affected by the proposed after- of the Securities Act, and section 3(f) of By requiring all funds to report after- tax requirements will incur costs in the Exchange Act.91 For purposes of the tax performance pursuant to a complying with the new disclosure. Small Business Regulatory Enforcement standardized formula, the proposed Funds would have to compute the after- Fairness Act of 1996,92 the Commission amendments would allow investors to tax returns using a standardized method also requests information regarding the compare after-tax performance among prescribed by Form N–1A. The costs potential effect of the proposals on the funds. This could affect investor associated with computing the proposed U.S. economy on an annual basis. decisions relating to the purchase or after-tax performance would include the Commenters are requested to provide sale of fund shares. This could have costs of purchasing or developing empirical data to support their views. secondary benefits, such as the creation software, implementing a new system for computing the proposed returns, IV. Cost/Benefit Analysis of new funds designed to maximize after-tax performance or causing analyzing data for inclusion in the The Commission is sensitive to the existing funds to alter their investment standardized formula, and training fund costs and benefits imposed by its rules. strategies to invest in a more tax- employees. In addition, funds would The proposed rule and form changes efficient manner. incur costs in incorporating the new would require a fund to disclose its Requiring standardized after-tax disclosure in their prospectuses, annual standardized after-tax returns for 1-, performance in the prospectus, annual reports to shareholders, advertisements, 5-, and 10-year periods. After-tax report, and fund advertisements and and sales literature. Funds could also returns would accompany before-tax sales literature also should help prevent incur costs in responding to questions returns in the risk/return summary of confusing and misleading after-tax from investors regarding the proposed fund prospectuses and in the MDFP, performance claims by funds. Currently, after-tax returns. which is typically contained in fund fund advertisements and sales literature It is anticipated that the costs of annual reports. Funds would be may contain tax-adjusted performance implementing new systems to compute required to include a short, explanatory calculated according to non- the standardized after-tax performance narrative adjacent to the performance standardized methods. In addition to will largely consist of one-time table in the risk/return summary and the making it difficult to compare after-tax expenses. In addition, the software MDFP. After-tax returns would be performance measures among different development and implementation costs presented in two ways: funds, the lack of a standardized may be reduced if software vendors (i) assuming the shareholder method for computing after-tax returns begin to offer ‘‘off-the-shelf’’ programs continued to hold his or her shares at for computing the proposed the end of the period; and (ii) assuming 93 In its prospectus, a mutual fund is required to standardized after-tax performance the shareholder sold his or her shares at disclose (i) the tax consequences of buying, holding, data.94 Also, the costs of analyzing data the end of the period, realizing taxable exchanging, and selling fund shares, including the for inclusion in the standardized gain or loss on the sale. The before- and tax consequences of fund distributions; and (ii) formula would be substantially greater after-tax returns would be required to be whether the fund may engage in active and frequent portfolio trading to achieve its principal investment in connection with a fund’s first-time strategies, and, if so, the tax consequences of compliance with the proposed 91 Section 2(c) of the Investment Company Act [15 increased portfolio turnover and how this may amendments than it would be in U.S.C. 80a–2(c)], section 2(b) of the Securities Act affect fund performance. See Item 7(e) of Form N– [15 U.S.C. 77b(b)], and section 3(f) of the Exchange 1A; Instruction 7 to Item 4 of Form N–1A. A fund subsequent disclosures. Likewise, the Act [15 U.S.C. 78c(f)] require the Commission, also must disclose in its prospectus and annual when determining whether a rule is consistent with report the portfolio turnover rate and dividends and 94 A service provider that compiles and the public interest, to consider, in addition to the capital gains distributions per share for each of the disseminates fund pricing and performance protection of investors, whether the action will last five fiscal years. See Items 9(a) and 22(b)(2) of information recently announced that it will offer to promote efficiency, competition, and capital Form N–1A. These items also require funds to show calculate and publish after-tax returns for its fund formation. net realized and unrealized gain or loss on clients. See Daly, Program Lets Fund Companies 92 Pub. L. No. 104–21, Title II, 110 Stat. 857 investments on a per share basis for each of the Offer After-Tax Returns (Dec. 29, 1999) (visited Feb. (1996). fund’s last five fiscal years. 9, 2000) .

VerDate 202000 17:39 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00012 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm04 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15511 costs of revising fund prospectuses, costs as a result of these potential may be affected by one or more of the annual reports, advertisements, and consequences. proposed amendments, including 150 sales literature to incorporate the new To assist in the evaluation of the costs that are small entities. disclosure should decrease after the first and benefits that may result from these The Analysis also discusses the disclosures complying with the proposed rule amendments, the reporting and other compliance proposed amendments have been made. Commission requests that commenters requirements associated with the Although the costs of updating the provide views and data relating to any proposals contained in this Release. The proposed disclosure in fund costs and benefits associated with these proposed amendments to Form N–1A prospectuses, annual reports, proposals. would require funds subject to the advertisements, and sales literature V. Summary of Initial Regulatory amendments to disclose standardized would be ongoing, the costs incurred in Flexibility Analysis after-tax returns in prospectuses and subsequent disclosures should be less annual reports to shareholders. The than the costs associated with the initial The Commission has prepared an proposed amendments to rules 482 and computations and disclosures because Initial Regulatory Flexibility Analysis 34b–1 would require funds to include neither the formula for calculating (‘‘Analysis’’) in accordance with 5 standardized after-tax returns in fund performance nor the format for the U.S.C. 603. The Analysis relates to the advertisements and sales literature disclosure is expected to change from proposed amendments to Form N–1A when funds voluntarily choose to and rules 482 and 34b–1. The following year to year. include after-tax performance summarizes the Analysis. Because funds filing initial information in their advertisements and registration statements would not have The Analysis sets forth the statutory authority for the proposed amendments. sales literature. any performance information to report, As explained in the Analysis, after the proposed after-tax performance The Analysis explains that the proposed form and rule changes would require a assessing the proposed amendments in requirements would not impose any light of the current reporting additional costs on the preparation and fund to disclose its standardized after- tax returns for 1-, 5-, and 10-year requirements and consulting with filing of an initial registration statement industry representatives, we evaluated on Form N–1A. The disclosure required periods. The proposal would require after-tax return information to be the effect that the proposed by the proposed amendments would amendments would have on the appear in the first post-effective included in the risk/return summary of the prospectus and in Management’s preparation of registration statements, amendment that is required to include annual reports to shareholders, the after-tax return disclosure. The costs Discussion of Fund Performance advertisements, and sales literature. We associated with including the proposed (‘‘MDFP’’), which is typically contained estimate that it will take approximately disclosure in this first post-effective in the annual report. Funds would be 18 additional hours per portfolio to amendment would consist of the costs required to include a short, explanatory prepare post-effective amendments to required for developing a system for narrative adjacent to the performance the registration statement on Form N– performing the standardized table in the risk/return summary and the 1A.96 The Commission estimates that it calculations and the costs of revising the MDFP. After-tax returns, which would will take approximately 7.5 additional prospectus to incorporate the new accompany before-tax returns in fund hours per management investment disclosure. Because the standardized prospectuses and annual reports, would company registered on Form N–1A to after-tax disclosure that would be be presented in two ways: (i) assuming required in a fund’s annual report the shareholder continued to hold his or prepare annual reports to shareholders would be very similar to the proposed her shares at the end of the period; and pursuant to rule 30d–1 if the investment (ii) assuming the shareholder sold his or company elects to include the MDFP in standardized after-tax disclosure in the 97 prospectus, the cost of including the her shares at the end of the period, the annual report. The Commission proposed disclosure in the annual realizing taxable gain or loss on the sale. estimates that the proposed report would largely be limited to the The proposed after-tax returns would be amendments to rule 482 will impose cost of revising the report to incorporate required to be presented in a approximately .5 additional hours per the new disclosure. Moreover, because standardized tabular format. Although portfolio on those funds that elect to the proposals require that performance after-tax returns would not be required include after-tax performance be presented in a standardized tabular in fund advertisements and sales information in their advertisements and format in the prospectus and annual literature, any fund choosing to include are therefore required to comply with 98 report, the cost of revising these after-tax returns in these materials the proposed amendments to rule 482. documents should be reduced. The would be required to include after-tax 96 Since an investment company filing an initial costs incurred by funds choosing to returns computed according to our registration statement on Form N–1A has no include after-tax returns in fund standardized formula. performance history to disclose, the proposed advertisements and sales literature The Analysis discusses the impact of amendments would not affect such initial filings. would be limited to the cost of revising the proposed amendments on small This estimate is based upon staff assessment of the the advertisements and sales literature entities. For purposes of the Regulatory proposed amendments in light of the current hour burden and current reporting requirements. to incorporate the same proposed Flexibility Act, a fund is considered a 97 Form N–1A requires that the prospectus standardized after-tax returns that small entity if the fund, together with include the MDFP unless the information is would be required to appear in fund other funds in the same group of related included in the fund’s latest annual report to prospectuses. funds, has net assets of $50 million or shareholders and the fund provides a copy of the As discussed above, the proposed annual report, upon request and without charge, to less as of the end of its most recent fiscal each person to whom a prospectus is delivered. 95 amendments could result in the creation year. This estimate is based upon staff assessment of the of new funds designed to maximize The Analysis notes that as of proposed amendments in light of the current hour after-tax performance. The proposed December 1999, there were burden and current reporting requirements. amendments could also cause existing approximately 2,900 open-end 98 As discussed more fully in Section VI, infra, the hour burden associated with rule 482 is funds to alter their investment strategies management investment companies that included in Form N–1A. This estimate is based to invest in a more tax-efficient manner. upon staff assessment of the proposed amendments It is possible that funds could incur 95 17 C.F.R. 270.0–10. Continued

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We also estimate that an additional .5 and Securities Act of 1933, Registration shareholder continued to hold his or her hours per response will be imposed by Statement of Open-End Management shares at the end of the period; and (ii) the proposed amendments to rule 34b– Investment Companies;’’ (2) ‘‘Rule 30d- assuming the shareholder sold his or her 1 on those funds that choose to include 1 under the Investment Company Act of shares at the end of the period, realizing after-tax performance information in 1940, Reports to Stockholders of taxable gain or loss on the sale. The their sales literature.99 Management Companies;’’ (3) before- and after-tax returns would be As stated in the Analysis, the ‘‘Registration Statements—Regulation required to be presented in a Commission considered several C;’’ 100 and (4) ‘‘Rule 34b–1 of the standardized tabular format. Although alternatives to the proposed Investment Company Act of 1940, Sales after-tax returns would not be required amendments, including establishing Literature Deemed to Be Misleading.’’ in fund advertisements and sales different compliance or reporting An agency may not conduct or sponsor, literature, the Commission is also requirements for small entities or and a person is not required to respond proposing amendments to rules 482 and exempting them from all or part of the to, a collection of information unless it 34b–1 that would require any fund proposed amendments. The displays a currently valid control choosing to include after-tax returns in Commission believes that establishing number. these materials to include after-tax different requirements applicable Form N–1A (OMB Control No. 3235– returns computed according to our specifically to small entities is 0307) was adopted pursuant to section standardized formula. inconsistent with the protection of 8(a) of the Investment Company Act [15 The information required by the investors. We note that mutual funds U.S.C. 80a–8] and section 5 of the proposed amendments is primarily for that qualify as small entities are already Securities Act [15 U.S.C. 77e]. Rule the use and benefit of investors. The required to disclose standardized 30d–1 (OMB Control No. 3235–0025) Commission is concerned that mutual performance. The Commission also was adopted pursuant to Section 30(e) fund investors who are subject to believes that adjusting the proposals to of the Investment Company Act [15 current taxation may not fully establish different compliance U.S.C. 80a–29]. Rule 482 of Regulation appreciate the impact of taxes on their requirements for small entities could C (OMB Control No. 3235–0074) was fund investments because mutual funds undercut the purpose of the proposed adopted pursuant to section 10(b) of the are currently required to report their amendments: to emphasize to investors Securities Act [15 U.S.C. 77j(b)]. Rule performance on a before-tax basis only. the impact of taxes on a fund’s return 34b–1 (OMB Control No. 3235–0346) Many investors consider performance and to enable investors to make effective was adopted pursuant to section 34(b) of one of the most significant factors when comparisons among various fund the Investment Company Act [15 U.S.C. selecting or evaluating a fund, and we performance claims. 80a–33(b)]. believe that requiring funds to disclose The Commission encourages the Because taxes are one of the largest their after-tax performance would allow submission of written comments on costs associated with a mutual fund investors to make better-informed matters discussed in the Analysis. investment, the Commission is decisions. The information required to Comment specifically is requested on proposing form and rule amendments to be filed with the Commission pursuant the number of small entities that would Form N–1A, rule 482, and rule 34b–1 to to the information collections also be affected by the proposed help investors understand the permits the verification of compliance amendments and the impact of such magnitude of tax costs and how they with securities law requirements and proposals on small entities. Commenters affect fund performance. assures the public availability and are asked to describe the nature of any Our proposals would require a fund to dissemination of the information. impact and provide empirical data disclose its standardized after-tax supporting the extent of the impact. returns for 1-, 5-, and 10-year periods. Form N–1A These comments will be placed in the The proposal would require after-tax Form N–1A, including the proposed same public comment file as comments return information to be included in the amendments, contains collection of on the proposals. A copy of the Analysis risk/return summary of the prospectus information requirements. The purpose may be obtained by contacting Maura S. and in Management’s Discussion of of Form N–1A is to meet the registration McNulty, Securities and Exchange Fund Performance (‘‘MDFP’’), which is and disclosure requirements of the Commission, 450 5th Street, N.W., typically contained in the annual report. Securities Act and the Investment Washington, D.C. 20549–0506. Funds would be required to include a short, explanatory narrative adjacent to Company Act and to enable funds to VI. Paperwork Reduction Act the performance table in the risk/return provide investors with information Certain provisions of the proposed summary and the MDFP. After-tax necessary to evaluate an investment in amendments contain ‘‘collection of returns, which would accompany the fund. The likely respondents to this information’’ requirements within the before-tax returns in fund prospectuses information collection are open-end meaning of the Paperwork Reduction and annual reports, would be presented funds registering with the Commission Act of 1995 [44 U.S.C. 3501, et seq.], in two ways: (i) Assuming the on Form N–1A. and the Commission has submitted the We estimate that 170 initial proposed collections of information to 100 The proposed amendments would modify rule registration statements are filed the Office of Management and Budget 482, which is part of Regulation C under the annually on Form N–1A, registering 298 (‘‘OMB’’) for review in accordance with Securities Act of 1933. Regulation C describes the portfolios, and that the current hour disclosure that must appear in registration burden per portfolio per filing is 824 44 U.S.C. 3507(d) and 5 CFR 1320.11. statements under the Securities Act and Investment The titles for the collections of Company Act. The PRA burden associated with rule hours, for a total annual hour burden of information are: (1) ‘‘Form N–1A under 482, however, is included in the investment 245,552 hours.101 We estimate that company registration statement form, not in 4,500 post-effective amendments to the Investment Company Act of 1940 Regulation C. In this case, the proposed amendments to rule 482 will affect the burden registration statements are filed in light of the current hour burden and current hours for Form N–1A, the registration form for reporting requirements. open-end investment companies that currently 101 These estimates are based on filings received 99 This estimate is based upon staff assessment of advertise pursuant to rule 482. We estimate that the in calendar year 1999. The currently approved hour the proposed amendments in light of the current burden associated with Regulation C will not burden per portfolio for an initial Form N–1A is 824 hour burden and current reporting requirements. change with the amendments to rule 482. hours.

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00014 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15513 annually on Form N–1A, for 7,875 Compliance with the disclosure with rule 30d–1 is 202.5 hours. With the portfolios, and that the current hour requirements of Form N–1A is proposed amendments, we estimate that burden per portfolio per post-effective mandatory. Responses to the disclosure the hour burden will be increased by 7.5 amendment filing is 104 hours, for an requirements will not be kept hours 109 to 210 hours, for a total annual annual burden of 819,000 hours.102 confidential. hour burden to the industry of Thus, we estimate a current total annual 723,825.110 Rule 30d–1 Shareholder Reports hour burden of 1,064,552 hours for the Compliance with the disclosure preparation and filing of Form N–1A Rule 30d–1, including the proposed requirements of rule 30d–1 is and post-effective amendments on Form amendments, contains collection of mandatory. Responses to the disclosure N–1A. information requirements.106 Section requirements will not be kept The proposed amendments would not 30(e) and rule 30d–1 require registered confidential. affect the hour burden of an initial filing management investment companies to Rule 482 of a registration statement on Form N– transmit to shareholders, at least semi- 1A since an investment company filing annually, reports containing financial Rule 482, including the proposed such an initial form would have no statements and certain other amendments, contains collection of performance history to disclose. Post- information. The reports are intended to information requirements. The rule is a effective amendments to such apprise current shareholders of the safe harbor that permits a fund to registration statements, however, would operational and financial condition of advertise information the ‘‘substance of contain performance figures and thus be the fund. which’’ is contained in its statutory affected by the proposed amendments. There are approximately 3,490 prospectus, subject to the requirements We estimate that the proposed management investment companies of the rule. Rule 482 limits performance amendments would increase the hour subject to rule 30d–1.107 The information to standardized quotations burden per portfolio per filing of a post- Commission estimates that of those of yield and total return and other effective amendment by 18 hours.103 Of 3,490 management investment measures of performance that reflect all the 7,875 funds referenced in post- companies, approximately 2,280 would elements of return. effective amendments, 1,040 are money be subject to the after-tax disclosure The increased burden associated with market funds, which would be requirements.108 We estimate that the the proposed amendments to rule 482 is exempted from the proposed after-tax current hour burden for preparing and included in the investment company disclosure requirements. An additional filing shareholder reports in compliance registration statement forms.111 Thus, 1,575 funds are used as investment the proposed amendments to rule 482 vehicles for variable insurance amendments. As explained, the hour burden per will affect the burden hours for Form N– portfolio for an initial filing would remain at 824 1A, the registration form for open-end contracts, which would be permitted to hours, for a total burden of 245,552 hours. The hour omit the after-tax information. Thus, burden per portfolio for a post-effective amendment investment companies that currently approximately 5,260 of the 7,875 funds would be 122 hours (104 + 18), with a burden of may advertise pursuant to rule 482. As referenced in post-effective amendments 104 hours imposed on all 7,875 portfolios (104 × described above, there are 7,875, or 819,000) and the additional 18 hours approximately 5,260 funds filing post- would be affected by the proposed affecting 5,260 portfolios (18 × 5,260, or 94,680). amendments.104 The Commission Moreover, since the burden associated with rule effective amendments that would be estimates that if the proposed 482 is included in Form N–1A (as discussed in note affected by the proposed amendments. amendments to Form N–1A are adopted, 100, supra), the Form N–1A burden would include The Commission further estimates that the estimated rule 482 burden of .5 hours (the rule the total annual hour burden for all 482 burden is discussed below) that would be three percent of these funds would elect funds for preparation and filing of imposed on the three percent of funds that we to advertise after-tax performance and initial registration statements and post- estimate would advertise after-tax returns [.5 × therefore be required to comply with the effective amendments on Form N–1A (5,260 × 3%), or 79]. Thus, the total annual hour proposed amendments to rule 482.112 105 burden for all funds for the preparation and filing would be 1,159,311 hours. of initial registration statements and post-effective We estimate that the additional hour amendments on Form N–1A, including the burden required to comply with the 102 These estimates are based on filings received proposed amendments would be 1,159,311 hours proposed amendments to rule 482 is .5 in calendar year 1999. The currently approved hour (245,552 + 819,000 + 94,680 + 79). hours.113 burden per portfolio for post-effective amendments 106 The proposed amendments to Form N–1A Compliance with Rule 482 is to Form N–1A is 104 hours. require that if a fund elects to include the MDFP 103 This estimate is based on the staff’s in its annual report, it must include the after-tax mandatory for every registered fund that consultations with industry representatives. return information in its annual report. issues advertisements. Responses to the 104 The number of funds referenced in post- 107 These estimates are based on filings received disclosure requirements will not be kept effective amendments that would be affected by the in calendar year 1999. The currently approved hour confidential. proposed amendments is computed by subtracting burden per registered management investment those funds that are exempt from or permitted to company subject to rule 30d–1 is 202.5 hours. Rule 34b–1 omit the proposed after-tax disclosure from the 108 The Commission estimates that 2,900 of the number of funds referenced in post-effective 3,490 investment companies subject to rule 30d–1 Rule 34b–1, including the proposed amendments (7,875¥1,040¥1,575, or 5,260). For are registered on Form N–1A and therefore would amendments, contains collection of purposes of our analysis, we have not excluded be subject to the proposed amendments. Of these information requirements. The rule certain funds that also would be permitted to omit 2,900 investment companies, the Commission the after-tax return disclosure, such as funds that estimates that approximately 200 offer only money 109 This estimate is based on the staff’s distribute prospectuses for use by investors in market funds and would therefore be exempt from consultations with industry representatives. 401(k) plans or other similar tax-deferred the proposed amendments, and that approximately 110 arrangements. While these funds would be 300 other investment companies would also be The total annual hour burden is computed by permitted to omit the after-tax return disclosure in exempt because they serve as investment options adding the current total annual burden (3,490 x prospectuses distributed to investors in these tax- for variable insurance contracts. Moreover, the 202.5, or 706,725) to the total additional annual deferred arrangements, they would still incur a Commission estimates that approximately five burden imposed by the proposed amendments burden from including the disclosure in percent of funds do not elect to locate the MDFP (2,280 x 7.5, or 17,100). prospectuses distributed to all other investors. in their annual reports and therefore would not 111 See note 100, supra. 105 This total annual hour burden is calculated by incur any additional burden in including the 112 This estimate is based on the assumption that adding the total annual hour burden for initial proposed disclosure in their annual reports. Thus, tax-managed funds and index funds would be most registration statements and the total annual hour the number of investment companies that would be likely to advertise after-tax performance. burden for post-effective amendments, including subject to the after-tax requirements is 2,280 113 This estimate is based on the staff’s the additional burden imposed by the proposed [(2,900¥200¥300) x 95%]. consultations with industry representatives.

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00015 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 15514 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules governs sales material that is investment company that issues sales List of Subjects accompanied or preceded by the literature. Responses to the disclosure 17 CFR Part 230 delivery of a statutory prospectus and requirements will not be kept requires the inclusion of standardized confidential. Advertising, Investment companies, performance data and certain legend Reporting and recordkeeping Request for Comments disclosure in sales material that requirements, Securities. We request your comments on the includes performance data. 17 CFR Part 239 We estimate that approximately 8,495 accuracy of our estimates. Pursuant to respondents file approximately 4.35 44 U.S.C. 3506(c)(2)(B), the Commission Reporting and recordkeeping responses annually pursuant to rule solicits comments to: (i) Evaluate requirements, Securities. 114 whether the proposed collection of 34b–1. Of these respondents, we 17 CFR Parts 270 and 274 estimate that 1,040 are money market information is necessary for the proper funds that would be exempted from the performance of the functions of the Investment companies, Reporting and proposed amendments and that an agency, including whether the recordkeeping requirements, Securities. additional 620 funds and unit information will have practical utility; Text of Proposed Rules and Forms investment trusts (‘‘UITs’’) registered on (ii) evaluate the accuracy of the Forms N–3 and N–4 would not be Commission’s estimate of burden of the For the reasons set out in the affected by the proposed amendments. proposed collection of information; (iii) preamble, Title 17, Chapter II of the We estimate that an additional 1,575 determine whether there are ways to Code of Federal Regulations is proposed funds registered on Form N–1A and enhance the quality, utility, and clarity to be amended as follows: of the information to be collected; and subject to rule 34b–1 are used as PART 230ÐGENERAL RULES AND (iv) evaluate whether there are ways to underlying portfolios for variable REGULATIONS, SECURITIES ACT OF minimize the burden of the collection of insurance contracts and would not 1933 advertise after-tax performance due to information on those who are to their unique tax-deferred nature. Thus, respond, including through the use of 1. The authority citation for part 230 5,260 respondents subject to rule 34b– automated collection techniques or continues to read in part as follows: other forms of information technology. 1 would also be subject to the proposed Authority: 15 U.S.C. 77b, 77f, 77g, 77h, 77j, 115 Persons submitting comments on the after-tax disclosure. We further 77r, 77s, 77z–3, 77sss, 78c, 78d, 78l, 78m, estimate that three percent of collection of information requirements 78n, 78o, 78w, 78ll(d), 79t, 80a–8, 80a–24, respondents subject to rule 34b–1 would should direct the comments to the 80a–28, 80a–29, 80a–30, and 80a–37, unless elect to include after-tax performance Office of Management and Budget, otherwise noted. and therefore be subject to the proposed Attention: Desk Officer for the * * * * * amendments.116 The burden for rule Securities and Exchange Commission, 2. Section 230.482 is amended by: 34b–1 requires approximately 2.4 hours Office of Information and Regulatory a. revising the introductory text of per response resulting from creating the Affairs, Room 3208, New Executive paragraph (e)(3); information required by rule 34b–1. We Office Building, Washington, D.C. b. removing ‘‘; and’’ at the end of estimate that rule 34b–1 imposes a 20503, and should send a copy to paragraph (e)(3)(iv) and in its place current total annual reporting burden of Jonathan G. Katz, Secretary, Securities adding a period; 88,800 hours on the industry.117 We and Exchange Commission, 450 5th c. redesignating paragraph (e)(4) as estimate that the additional hour burden Street, N.W., Washington, D.C. 20549– paragraph (e)(5); required to comply with the proposed 0609, with reference to File No. S7–09– d. adding new paragraph (e)(4); and amendments to rule 34b–1 is .5 hours, 00. OMB is required to make a decision e. revising newly redesignated for a total burden per response of 2.9 concerning the collection of information paragraph (e)(5) to read as follows: between 30 and 60 days after hours and a total annual burden on the § 230.482 Advertising by an investment industry of 89,143 hours.118 publication of this release. Consequently, a comment to OMB is company as satisfying requirements of Compliance with rule 34b–1 is section 10. mandatory for every registered best assured of having its full effect if OMB receives it within 30 days after * * * * * (e) * * * 114 These estimates are based on filings received publication of this Release. in calendar year 1999. The currently approved hour (3) Before-tax average annual total burden per response for rule 34b–1 is 2.4 hours. VII. Statutory Authority return (with redemption) for one, five, 115 This number is computed by subtracting from The Commission is proposing and ten year periods; Provided, That if the number of respondents filing rule 34b–1 sales amendments to Form N–1A pursuant to the company’s registration statement material the number of money market funds, the under the Securities Act of 1933 (15 number of funds and UITs registered on Forms N– authority set forth in sections 5, 6, 7, 10, 3 and N–4, and the number of funds used as and 19(a) of the Securities Act [15 U.S.C. 77a et seq.) has been in effect for underlying portfolios for variable insurance U.S.C. 77e, 77f, 77g, 77j, 77s(a)] and less than one, five, or ten years, the time contracts (8,495¥1,040¥620¥1,575, or 5,260). sections 8, 24(a), 30, and 38 of the period during which the registration 116 This estimate is based on the assumption that statement was in effect is substituted for tax-managed funds and index funds would be most Investment Company Act [15 U.S.C. likely to advertise after-tax performance. 80a–8, 80a–24(a), 80a–29, 80a–37]. The the period(s) otherwise prescribed; and 117 The current total annual hour burden is Commission is proposing amendments Provided further, That such quotations: computed by multiplying the number of responses to rule 482 pursuant to authority set * * * * * filed annually under rule 34b–1 by the current hour forth in sections 5, 10(b), and 19(a) of (4) For an open-end management burden (37,000 x 2.4). The total annual hour burden for the industry has increased significantly from the Securities Act [15 U.S.C. 77e, 77j(b), investment company, after-tax average previous estimates because we have reevaluated the and 77s(a)]. The Commission is annual total return (with and without number of respondents subject to rule 34b–1. proposing amendments to rule 34b–1 redemption) for one, five, and ten year 118 The total annual burden is computed by pursuant to authority set forth in periods; Provided, That if the company’s adding the current burden (2.4 x 37,000, or 88,800) to the additional burden imposed by the proposed sections 34(b) and 38(a) of the registration statement under the amendments [.5 x (8,495¥1,040¥620¥1,575) x Investment Company Act [15 U.S.C. Securities Act of 1933 (15 U.S.C. 77a et 4.35 x 3%, or 343]. 80a–33(b) and 80a–37(a)]. seq.) has been in effect for less than one,

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Additional Matters: which the registration statement was in (B) Accompany any quotation of * * * * * effect is substituted for the period(s) performance adjusted to reflect the (d) Modified Prospectuses for Certain otherwise prescribed; and Provided effect of taxes with the quotations of Funds. further, That such quotations: total return specified by paragraph (e)(4) (i) A Fund may omit the information (i) Are based on the methods of of § 230.482 of this chapter; required by Items 2(c)(2)(iii)(A), (B), and computation prescribed in Form N–1A; * * * * * (D), 2(c)(2)(iv), 5(b)(2)(i), (ii), and (iv), (ii) Are current to the most recent (3) The requirements specified in and 5(b)(3), and a Fund may modify or calendar quarter ended prior to the paragraph (b)(1) of this section shall not omit, if inapplicable, the information submission of the advertisement for apply to any quarterly, semi-annual, or required by Items 7(b)–(d) and 8(a)(2), if publication; annual report to shareholders under the Fund’s prospectus will be used (iii) Are accompanied by quotations of Section 30 of the Act (15 U.S.C. 80a–29) exclusively to offer Fund shares as total return as provided for in paragraph containing performance data for a investment options for: (e)(3) of this section; period commencing no earlier than the (A) A defined contribution plan that (iv) Include both after-tax average first day of the period covered by the meets the requirements for qualification annual total return (with redemption) report; nor shall the requirements of under section 401(k) of the Internal and after-tax average annual total return paragraphs (e)(3)(ii), (e)(4)(ii), and (f) of Revenue Code (26 U.S.C. 401(k)); (without redemption); § 230.482 of this chapter apply to any (B) A tax-deferred arrangement under (v) Are set out with equal prominence such periodic report containing any sections 403(b) or 457 of the Internal and are set out in no greater prominence other performance data. Revenue Code (26 U.S.C. 403(b) and than the required quotations of total * * * * * 457); return; and (C) A variable contract as defined in (vi) Identify the length of and the last PART 239ÐFORMS PRESCRIBED section 817(d) of the Internal Revenue day of the one, five, and ten year UNDER THE SECURITIES ACT OF 1933 Code (26 U.S.C. 817(d)), if covered in a periods; and separate account prospectus; and 5. The authority citation for part 239 (5) Any other historical measure of (D) A similar plan or arrangement continues to read, in part, as follows: company performance (not subject to pursuant to which an investor is not any prescribed method of computation) Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, taxed on his or her investment in the if such measurement: 77z–2, 77sss, 78c, 78l, 78m, 78n, 78o(d), Fund until the investment is sold. (i) Reflects all elements of return; 78u–5, 78w(a), 78ll(d), 79e, 79f, 79g, 79j, 79l, (ii) Is accompanied by quotations of 79m, 79n, 79q, 79t, 80a–8, 80a–24, 80a–29, * * * * * total return as provided for in paragraph 80a–30 and 80a–37, unless otherwise noted. 8. Item 2 of Form N–1A (referenced in (e)(3) of this section; * * * * * §§ 239.15A and 274.11A) is amended (iii) In the case of any measure of by: performance adjusted to reflect the PART 274ÐFORMS PRESCRIBED a. revising paragraph (c)(2)(iii); effect of taxes, is accompanied by UNDER THE INVESTMENT COMPANY b. adding paragraph (c)(2)(iv); quotations of total return as provided for ACT OF 1940 c. revising paragraph (a) of Instruction in paragraph (e)(4) of this section; 2; and 6. The authority citation for part 274 d. revising paragraph (c) of Instruction (iv) Is set out in no greater continues to read as follows: prominence than the required 3 to read as follows: quotations of total return; and Authority: 15 U.S.C. 77f, 77g, 77h, 77j, 77s, Form N–1A (v) Identifies the length of and the last 78c(b), 78l, 78m, 78n, 78o(d), 80a–8, 80a–24, day of the period for which performance and 80a–29, unless otherwise noted. * * * * * is measured. Note: The text of Form N–1A does not and Item 2. Risk/Return Summary: * * * * * these amendments will not appear in the Investments, Risks, and Performance Code of Federal Regulations. * * * * * PART 270ÐRULES AND 7. General Instruction C to Form N– (c) * * * REGULATIONS, INVESTMENT 1A (referenced in §§ 239.15A and (2) * * * COMPANY ACT OF 1940 274.11A) is amended by: (iii) If the Fund has annual returns for a. revising the introductory text of at least one calendar year, provide a 3. The authority citation for part 270 paragraph 3.(d)(i); table showing the Fund’s (A) before-tax continues to read in part as follows: b. republishing paragraph 3.(d)(i)(A); average annual total return (without Authority: 15 U.S.C. 80a–1 et seq., 80a– c. republishing paragraph 3.(d)(i)(B) redemption); (B) after-tax average 34(d), 80a–37, 80a–39 unless otherwise except for removing ‘‘and’’ at the end of annual total return (without noted: the paragraph; redemption); (C) before-tax average * * * * * d. republishing paragraph 3.(d)(i)(C) annual total return (with redemption); 4. Section 270.34b–1 is amended by: except for removing the period at the and (D) after-tax average annual total a. redesignating paragraphs (b)(1)(iii) end of the paragraph and adding in its return (with redemption). A Money (B) and (C) as paragraphs (b)(1)(iii) (C) place ‘‘; and’’; and Market Fund should show only the and (D); e. adding paragraph 3.(d)(i)(D) to read returns described in clause (C) of the b. adding new paragraph (b)(1)(iii)(B); as follows: and Form N–1A preceding sentence. All returns should be shown for 1-, 5-, and 10-calendar c. revising paragraph (b)(3) to read as * * * * * follows: year periods ending on the date of the General Instructions most recently completed calendar year § 270.34b±1 Sales literature deemed to be * * * * * (or for the life of the Fund, if shorter), misleading. C. Preparation of the Registration but only for periods subsequent to the * * * * * Statement effective date of the Fund’s registration (b)(1) * * * * * * * * statement. The table also should show

VerDate 202000 18:01 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00017 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm04 PsN: 22MRP2 15516 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules the returns of an appropriate broad- returns for the life of the Fund. A the Fund’s current 7-day yield. For a based securities market index as defined Money Market Fund may provide the Fund (other than a Money Market Fund in Instruction 5 to Item 5(b) for the same Fund’s 7-day yield ending on the date or a Fund described in General periods. A Fund that has been in of the most recent calendar year or Instruction C.3.(d)(i)), provide the existence for more than 10 years also disclose a toll-free (or collect) telephone information in the following table with may include average annual total number that investors can use to obtain the specified captions:

AVERAGE ANNUAL TOTAL RETURNS [For the periods ended December 31, ÐÐ]

1 year 5 years 10 years

If You Continue to Hold Your Shares at End of Period: Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l% If You Sell Your Shares at End of Period: Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l% Index (reflects no deduction for fees, expenses, or taxes) ...... l% l% l%

(iv) Adjacent to the table required by Instructions Form N–1A paragraph (c)(2)(iii) of this Item, provide * * * * * * * * * * a brief explanation of the following: (A) The differences among the four 2. Table. Item 5. Management’s Discussion of types of return presented, including (a) Calculate a Money Market Fund’s Fund Performance whether the returns reflect redemption 7-day yield under Item 21(a); the Fund’s * * * * * and the charges and taxes associated before-tax average annual total return (b)(1) * * * (without redemption) and before-tax with redemption; (2) Include a statement accompanying (B) That before-tax returns assume average annual total return (with the graph to the effect that past that all distributions are reinvested; redemption) under Items 21(b)(1) and (C) The assumptions used in (2), respectively; and the Fund’s after- performance does not predict future calculating after-tax returns, including tax average annual total return (without performance and that account value (1) the use of the historical highest redemption) and after-tax average does not reflect the taxes that a individual federal marginal income tax annual total return (with redemption) shareholder would pay on fund rates; (2) the assumption that taxes are under Items 21(b)(3) and (4), distributions or the redemption of fund paid out of fund distributions and that respectively. shares. In a table placed within or next to the graph, provide the Fund’s (i) distributions, less taxes, are reinvested; * * * * * (3) the exclusion of state and local taxes; before-tax average annual total return 3. Multiple Class Funds. and (4) if after-tax returns (with (without redemption); (ii) after-tax redemption) are higher than before-tax * * * * * average annual total return (without returns (with redemption), explain the (c) Provide average annual total redemption); (iii) before-tax average reason for this result, including the returns in the table for each Class annual total return (with redemption); assumption that a shareholder has offered in the prospectus. The four types and (iv) after-tax average annual total sufficient gains from other sources to of return for each Class required under return (with redemption). All returns offset all losses from the redemption of Item 2(c)(2)(iii)(A), (B), (C), and (D) should be shown for the 1-, 5-, and 10- fund shares; should be adjacent and should not be year periods as of the end of the last day (D) Actual after-tax returns depend on interspersed with the returns of other of the most recent fiscal year (or for the an investor’s tax situation and may Classes. life of the Fund, if shorter), but only for differ from those shown; * * * * * periods subsequent to the effective date of the Fund’s registration statement. All (E) The after-tax returns shown are 9. Item 5 of Form N–1A (referenced in returns should be computed in not relevant to investors who hold their §§ 239.15A and 274.11A) is amended accordance with Items 21(b)(1), (b)(2), Fund shares through tax-deferred by: arrangements, such as 401(k) plans or (b)(3), and (b)(4). For a Fund other than individual retirement accounts; and a. revising paragraph (b)(2); a Fund described in General Instruction (F) After-tax returns reflect past tax b. adding paragraph (b)(3); and C.3.(d)(i), provide the information in the effects and are not predictive of future c. adding Instruction 12 to read as following table with the specified tax effects. follows: captions:

AVERAGE ANNUAL TOTAL RETURNS [For the Fiscal Year ended]

1 year 5 years 10 years

If You Continue to Hold Your Shares at End of Period: Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l% If You Sell Your Shares at End of Period:

VerDate 202000 18:28 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00018 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm02 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15517

AVERAGE ANNUAL TOTAL RETURNSÐContinued [For the Fiscal Year ended]

1 year 5 years 10 years

Before-Tax Return ...... l% l% l% After-Tax Return ...... l% l% l%

(3) Adjacent to the table required by c. adding new paragraphs (b)(1), equal to the Fund’s mean (or median) paragraph (b)(2) of this Item, provide a (b)(3), and (b)(4); and account size. Reflect, as appropriate, brief explanation of the following: d. revising newly redesignated any recurring fees charged to (i) The differences among the four paragraph (b)(2) to read as follows: shareholder accounts that are paid other types of return presented, including than by redemption of the Fund’s Form N–1A whether the returns reflect redemption shares. and the charges and taxes associated * * * * * 4. Determine the ending redeemable with redemption; value by assuming no redemption at the Item 21. Calculation of Performance (ii) That before-tax returns assume end of the 1-, 5-, or 10-year periods. Data that all distributions are reinvested; Deduct any charges that are deducted at (iii) The assumptions used in * * * * * the end of each period assuming no calculating after-tax returns, including (b) * * * redemption. Do not deduct nonrecurring (A) the use of the historical highest (1) Before-Tax Average Annual Total charges deducted only on redemption, individual federal marginal income tax Return (Without Redemption) such as deferred sales loads or rates; (B) the assumption that taxes are Quotation. For the 1-, 5-, and 10-year redemption fees. paid out of fund distributions and that periods ended on the date of the most 5. State the before-tax average annual distributions, less taxes, are reinvested; recent balance sheet included in the total return (without redemption) (C) the exclusion of state and local registration statement (or for the periods quotation to the nearest hundredth of taxes; and (D) if after-tax returns (with the Fund has been in operation), one percent. redemption) are higher than before-tax calculate the Fund’s before-tax average (2) Before-Tax Average Annual Total returns (with redemption), explain the annual total return (without Return (With Redemption) Quotation. reason for this result, including the redemption) by finding the average For the 1-, 5-, and 10-year periods ended assumption that a shareholder has annual compounded rates of return over on the date of the most recent balance sufficient gains from other sources to the 1-, 5-, and 10-year periods (or for the sheet included in the registration offset all losses from the redemption of periods of the Fund’s operations) that statement (or for the periods the Fund fund shares; would equate the initial amount has been in operation), calculate the (iv) Actual after-tax returns depend on invested to the ending redeemable Fund’s before-tax average annual total an investor’s tax situation and may value, according to the following return (with redemption) by finding the differ from those shown; formula: average annual compounded rates of (v) The after-tax returns shown are not P(1+T) n = ERV return over the 1-, 5-, and 10-year relevant to investors who hold their NR periods (or for the periods of the Fund’s Fund shares through tax-deferred Where: operations) that would equate the initial arrangements, such as 401(k) plans or P = a hypothetical initial payment of amount invested to the ending individual retirement accounts; and $1,000. redeemable value, according to the (vi) After-tax returns reflect past tax T = before-tax average annual total following formula: return (without redemption). n effects and are not predictive of future P(1+T) = ERVR n = number of years. tax effects. Where: ERVNR = ending redeemable value of a Instructions P = a hypothetical initial payment of hypothetical $1,000 payment made $1,000. * * * * * at the beginning of the 1-, 5-, or 10- T = before-tax average annual total 12. Table for Multiple Class Funds. year periods at the end of the 1-, return (with redemption). Provide average annual total returns 5-, or 10-year periods (or fractional n = number of years. in the table for each Class of a Multiple portion) assuming no redemption of ERVR = ending redeemable value of a Class Fund that is offered in the the account. hypothetical $1,000 payment made prospectus or covered by the annual Instructions at the beginning of the 1-, 5-, or 10- report. The four types of return for each year periods at the end of the 1-, Class required under Item 5(b)(2)(i), (ii), 1. Assume the maximum sales load 5-, or 10-year periods at the end of (iii), and (iv) should be adjacent and (or other charges deducted from the 1-, 5-, or 10-year periods (or should not be interspersed with the payments) is deducted from the initial fractional portion), assuming the returns of other Classes. $1,000 payment. account is redeemed at the end of * * * * * 2. Assume all distributions by the the last day of the measurement 10. Item 21 of Form N–1A (referenced Fund are reinvested at the price stated period. in §§ 239.15A and 274.11A) is amended in the prospectus (including any sales by: load imposed upon reinvestment of Instructions a. revising the phrase ‘‘(b)(1)–(4)’’ to dividends) on the reinvestment dates 1. Assume the maximum sales load read ‘‘(b)(1)–(7)’’ in the introductory text during the period. (or other charges deducted from of paragraph (b); 3. Include all recurring fees that are payments) is deducted from the initial b. redesignating paragraphs (b)(1), (2), charged to all shareholder accounts. For $1,000 payment. (3), (4), and (5) as paragraphs (b)(2), (5), any account fees that vary with the size 2. Assume all distributions by the (6), (7), and (8), respectively; of the account, assume an account size Fund are reinvested at the price stated

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00019 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 15518 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules in the prospectus (including any sales of dividends) on the reinvestment dates (4) After-Tax Average Annual Total load imposed upon reinvestment of during the period. Return (With Redemption) Quotation. dividends) on the reinvestment dates 3. Calculate the taxes due on any For the 1-, 5-, and 10-year periods ended during the period. distributions by the Fund by applying on the date of the most recent balance 3. Include all recurring fees that are the tax rate specified in Instruction 4 to sheet included in the registration charged to all shareholder accounts. For each component of the distributions on statement (or for the periods the Fund any account fees that vary with the size the reinvestment date (e.g., ordinary has been in operation), calculate the of the account, assume an account size income, short-term capital gain, long- Fund’s after-tax average annual total equal to the Fund’s mean (or median) term capital gain). The taxable amount return (with redemption) by finding the account size. Reflect, as appropriate, and tax character of each distribution average annual compounded rates of any recurring fees charged to should be as specified by the Fund on return over the 1-, 5-, and 10-year shareholder accounts that are paid other the dividend declaration date, but may periods (or for the periods of the Fund’s than by redemption of the Fund’s be adjusted to reflect subsequent operations) that would equate the initial shares. recharacterizations of distributions. amount invested to the after-tax ending 4. Determine the ending redeemable Distributions should be adjusted to value, according to the following value by assuming a complete reflect the federal tax impact the formula: redemption at the end of the 1-, 5-, or distribution would have on an P(1 + T)n = ATVR 10-year periods and the deduction of all individual taxpayer on the reinvestment Where: nonrecurring charges deducted at the date. For example, assume no taxes are P = a hypothetical initial payment of end of each period. If shareholders are due on the portions of any distribution $1,000. assessed a deferred sales load, assume that would not result in federal income T = after-tax average annual total return the maximum deferred sales load is tax on an individual, e.g., tax-exempt (with redemption). deducted at the times, in the amounts, interest or non-taxable returns of n = number of years. and under the terms disclosed in the capital. ATVR = ending after-tax value of a prospectus. 4. Calculate the taxes due using the hypothetical $1,000 payment made 5. State the before-tax average annual highest individual marginal federal at the beginning of the 1-, total return (with redemption) quotation income tax rate in effect on the 5-, or 10-year periods at the end of to the nearest hundredth of one percent. reinvestment date. The rate used should the 1-, 5-, or 10-year periods (or (3) After-Tax Average Annual Total correspond to the tax character of each fractional portion), assuming the Return (Without Redemption) component of the distributions (e.g., account is redeemed at the end of Quotation. For the 1-, 5-, and 10-year ordinary income rates for ordinary the last day of the measurement periods ended on the date of the most income distributions, short-term capital period. gain rates for short-term capital gain recent balance sheet included in the Instructions registration statement (or for the periods distributions, long-term capital gain 1. Assume the maximum sales load the Fund has been in operation), rates for long-term capital gain (or other charges deducted from calculate the Fund’s after-tax average distributions). Note that the required tax rates may vary over the measurement payments) is deducted from the initial annual total return (without period. Disregard any potential tax $1,000 payment. redemption) by finding the average liabilities other than federal tax 2. Assume all distributions by the annual compounded rates of return over liabilities (e.g., state and local taxes); the Fund, less the taxes due on such the 1-, 5-, and 10-year periods (or for the effect of phaseouts of certain distributions, are reinvested at the price periods of the Fund’s operations) that exemptions, deductions, and credits at stated in the prospectus (including any would equate the initial amount various income levels; and the impact of sales load imposed upon reinvestment invested to the after-tax ending value, the federal alternative minimum tax. of dividends) on the reinvestment dates according to the following formula: 5. Include all recurring fees that are during the period. n P(1+T) = ATVNR charged to all shareholder accounts. For 3. Calculate the taxes due on any Where: any account fees that vary with the size distributions by the Fund by applying P = a hypothetical initial payment of of the account, assume an account size the tax rate specified in Instruction 4 to $1,000. equal to the Fund’s mean (or median) each component of the distributions on T = after-tax average annual total return account size. Assume that no additional the reinvestment date (e.g., ordinary (without redemption). taxes or tax credits result from any income, short-term capital gain, long- n = number of years. redemption of shares required to pay term capital gain). The taxable amount ATVNR = ending after-tax value of a such fees. Reflect, as appropriate, any and tax character of each distribution hypothetical $1,000 payment made at recurring fees charged to shareholder should be as specified by the Fund on the beginning of the 1-, 5-, or 10-year accounts that are paid other than by the dividend declaration date, but may periods at the end of the 1-, 5-, or 10- redemption of the Fund’s shares. be adjusted to reflect subsequent year periods (or fractional portion), 6. Determine the ending after-tax recharacterizations of distributions. assuming no redemption of the account. value by assuming no redemption at the Distributions should be adjusted to end of the 1-, 5-, or 10-year periods. reflect the federal tax impact the Instructions Deduct any charges that are deducted at distribution would have on an 1. Assume the maximum sales load the end of each period assuming no individual taxpayer on the reinvestment (or other charges deducted from redemption. Do not deduct nonrecurring date. For example, assume no taxes are payments) is deducted from the initial charges deducted only on redemption, due on the portions of any distributions $1,000 payment. such as deferred sales loads or that would not result in federal income 2. Assume all distributions by the redemption fees. tax on an individual, e.g., tax-exempt Fund, less the taxes due on such 7. State the after-tax average annual interest or non-taxable returns of distributions, are reinvested at the price total return (without redemption) capital. stated in the prospectus (including any quotation to the nearest hundredth of 4. Calculate the taxes due using the sales load imposed upon reinvestment one percent. highest individual marginal federal

VerDate 202000 14:32 Mar 21, 2000 Jkt 190000 PO 00000 Frm 00020 Fmt 4701 Sfmt 4702 E:\FR\FM\22MRP2.SGM pfrm01 PsN: 22MRP2 Federal Register / Vol. 65, No. 56 / Wednesday, March 22, 2000 / Proposed Rules 15519 income tax rate in effect on the redemption at the end of the 1-, 5-, or holding periods of reinvested reinvestment date. The rate used should 10-year periods and the deduction of all distributions. That is, the Fund should correspond to the tax character of each nonrecurring charges deducted at the not assume that shares acquired through component of the distributions (e.g., end of each period. If shareholders are reinvestment of distributions have the ordinary income rates for ordinary assessed a deferred sales load, assume same holding period as the initial income distributions, short-term capital the maximum deferred sales load is $1,000 investment. gain rates for short-term capital gain deducted at the times, in the amounts, (d) Calculate the capital gains taxes distributions, long-term capital gain and under the terms disclosed in the (or the benefit resulting from tax losses) rates for long-term capital gain prospectus. by multiplying the amount of the capital distributions). Note that the required tax 7. Determine ending after-tax value by gain (loss) by the highest federal rates may vary over the measurement subtracting capital gains taxes resulting individual capital gains tax rate in effect period. Disregard any potential tax from the redemption and adding the tax on the redemption date. The rate used liabilities other than federal tax benefit from capital losses resulting should correspond to the tax character liabilities (e.g., state and local taxes); the from the redemption. of the capital gains (e.g., short-term or effect of phaseouts of certain (a) Calculate the capital gain or loss long-term), which is determined by the exemptions, deductions, and credits at upon redemption by subtracting the tax length of the measurement period in the various income levels; and the impact of basis from the redemption proceeds case of the initial $1,000 investment and the federal alternative minimum tax. (after deducting any nonrecurring the length of the period between 5. Include all recurring fees that are charges as specified by Instruction 6). reinvestment and the end of the charged to all shareholder accounts. For (b) In determining the tax basis, measurement period in the case of any account fees that vary with the size include the initial $1,000 payment and reinvested distributions. of the account, assume an account size reinvested distributions (net of taxes 8. State the after-tax average annual equal to the Fund’s mean (or median) assumed paid from the distributions, total return quotation (with redemption) account size. Assume that no additional but not net of any sales loads imposed to the nearest hundredth of one percent. taxes or tax credits result from any upon reinvestment). Also, adjust the tax * * * * * redemption of shares required to pay basis for any distributions representing such fees. Reflect, as appropriate, any returns of capital and any other tax basis By the Commission. recurring fees charged to shareholder adjustments that would apply to an Dated: March 15, 2000. accounts that are paid other than by individual taxpayer. Margaret H. McFarland, redemption of the Fund’s shares. (c) When determining the character of Deputy Secretary. 6. Determine the ending after-tax capital gain or loss upon redemption, [FR Doc. 00–6948 Filed 3–21–00; 8:45 am] value by assuming a complete the Fund should track the actual BILLING CODE 8010±01±P

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Reader Aids Federal Register Vol. 65, No. 56 Wednesday, March 22, 2000

CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING MARCH

Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202±523±5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since the revision date of each title. Laws 523±5227 3 CFR 1427...... 13865 1464...... 10933 Presidential Documents Proclamations: 1710...... 14207, 14785 7276...... 11197 Executive orders and proclamations 523±5227 1721...... 10933 7277...... 11199 3019...... 14406 The United States Government Manual 523±5227 7278...... 11455 Proposed Rules: 7279...... 11733 6...... 14478 Other Services 7280...... 12903 20...... 11483 Electronic and on-line services (voice) 523±4534 7281...... 15201 27...... 10979 Privacy Act Compilation 523±3187 Executive Orders: 28...... 10979, 12140 Public Laws Update Service (numbers, dates, etc.) 523±6641 12170 (See Notice of 29...... 13915 TTY for the deaf-and-hard-of-hearing 523±5229 March 13, 2000)...... 13863 57...... 14652 12957 (Continued by 97...... 13917 Notice of March 13, ELECTRONIC RESEARCH 201...... 12952 2000) ...... 13863 360...... 14926 World Wide Web 12959 (See Notice of 1140...... 10981 March 13, 2000)...... 13863 1160...... 14484 Full text of the daily Federal Register, CFR and other 13059 (See Notice of 1205...... 12146 publications: March 13, 2000)...... 13863 1210...... 14485 http://www.access.gpo.gov/nara 13146...... 11201 1306...... 12141 13147...... 13233 Federal Register information and research tools, including Public 1307...... 12141 Inspection List, indexes, and links to GPO Access: Administrative Orders: 1309...... 12141 Presidential Determinations: 1710...... 12952 http://www.nara.gov/fedreg No. 2000-15 of 1717...... 12952 E-mail February 24, 2000 ...... 10931 1718...... 12952 Notices: PENS (Public Law Electronic Notification Service) is an E-mail 8 CFR March 13, 2000 ...... 13863 service for notification of recently enacted Public Laws. To 212...... 14774 subscribe, send E-mail to 4 CFR 214...... 14774 [email protected] 27...... 15203 248...... 14774 with the text message: 28...... 15203 278A ...... 14774 subscribe PUBLAWS-L your name 5 CFR 9 CFR Use [email protected] only to subscribe or unsubscribe to 213...... 14431 74...... 15216 PENS. We cannot respond to specific inquiries. 315...... 14431 78...... 12064 93...... 15216 Reference questions. Send questions and comments about the 335...... 14431 Federal Register system to: 792...... 13659 Proposed Rules: Proposed Rules: 71...... 11485 [email protected] 3...... 14477 77...... 11485, 11912 The Federal Register staff cannot interpret specific documents or 213...... 14477 78...... 11485 regulations. 315...... 14477 93...... 12486 98...... 12486 7 CFR 113...... 12151 FEDERAL REGISTER PAGES AND DATE, MARCH 2...... 12427 130...... 12486 10931±11196...... 1 205...... 13512 317...... 14486 11197±11454...... 2 210...... 12429 318...... 14486, 14489 319...... 144867, 14489 11455±11734...... 3 215...... 12429 220...... 12429 327...... 14489 11735±11858...... 6 225...... 12429 381...... 14486 11859±12060...... 7 226...... 12429 590...... 11486 12061±12426...... 8 301...... 11203 12427±12904...... 9 457...... 11457 10 CFR 12905±13234...... 10 600...... 14781 72 ...... 11458, 12444, 14790 13235±13658...... 13 601...... 14781 170...... 11204 13659±13864...... 14 761...... 14432 600...... 14406 13865±14206...... 15 762...... 14432 820...... 15218 14207±14430...... 16 915...... 15203 Proposed Rules: 14431±14780...... 17 916...... 15205 21...... 11488 14781±15052...... 20 917...... 15205 50...... 11488 993...... 12061 52...... 11488 15053±15202...... 21 955...... 12442 54...... 11488 15203±15520...... 22 989...... 15214 100...... 11488 1421...... 13865 430...... 14128

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431...... 10984 15 CFR 524...... 13904 31 CFR 960...... 11755 14...... 14406 558...... 11888 103...... 13683 963...... 11755 734...... 12919 640...... 13678 Ch. XVIII ...... 13700 736...... 14858 868...... 11464 32 CFR 738...... 12919, 14857 870...... 11465 22...... 14406 11 CFR 740...... 12919, 14857 1301...... 13235 32...... 14406 108...... 15221 742...... 12919, 14857 1308...... 13235 668...... 13906 Proposed Rules: 743...... 12919 Proposed Rules: 776...... 15059 9038...... 15273 744...... 12919, 14444 101...... 14219 748...... 12919 314...... 12154 33 CFR 12 CFR 756...... 14857, 14861 22 CFR 26...... 14863 5...... 12905 762...... 14858 95...... 14223 22...... 14211 204...... 12916 766...... 14862 110...... 11892 23...... 14211 208...... 14810, 15050 770...... 14857 117 ...... 11893, 12943, 15238 41...... 14768 225 ...... 14433, 14440, 15053 774 ...... 12919, 13879, 14862 127...... 10943 51...... 14211 140...... 14226 340...... 14816 139...... 14764 16 CFR 141...... 14226 701...... 15224 145...... 14406 1615...... 12924 142...... 14226 724...... 10933 226...... 14406 745...... 10933 1616...... 12924 143...... 14226 Proposed Rules: 925...... 13866 1630...... 12929 144...... 14226 22...... 13253 950...... 13866 1631...... 12929 145...... 14226 Ch. IX...... 13663 1632...... 12935 23 CFR 146...... 14226 147...... 14226 1510 ...... 12064, 14819, 15050 Proposed Rules: 1340...... 13679 Proposed Rules: 307...... 11944 154...... 10943 3...... 12320 312...... 11947 24 CFR 155...... 10943, 14470 8...... 15111 313...... 11174 200...... 15043 159...... 10943 208...... 12320 161...... 14863 17 CFR 401...... 15452 225...... 12320 402...... 15452 164...... 10943 325...... 12320 15...... 14452 905...... 14422 165...... 14864 167...... 12944 567...... 12320 16...... 14452 Proposed Rules: 177...... 14223 614...... 14491 17...... 14452 81...... 12632 183...... 10943 620...... 14494 1...... 12466 990...... 11525 709...... 11250 4...... 10939, 12938 Proposed Rules: 716...... 10988 200...... 12469 25 CFR 100 ...... 11274, 13926, 14498 741...... 10988 240...... 13235 290...... 14461 110...... 13926, 14498 742...... 15275 242...... 13235 165 ...... 13926, 14498, 14501, 1750...... 13251 Proposed Rules: 26 CFR 14502, 15283, 15285 4...... 11253, 12318 1 ...... 11205, 11467, 12471 175...... 11410 13 CFR 228...... 11507, 15043 301...... 11211, 11215 177...... 11410 Proposed Rules: 229...... 11507 602 ...... 11205, 11211, 11215 179...... 11410 124...... 12955 230...... 11507, 15500 Proposed Rules: 181...... 11410 232...... 11507 1...... 11012, 11269 183...... 11410 14 CFR 239...... 11507, 15500 301...... 11271, 11272 34 CFR 25...... 13666 240...... 11507 27 CFR 39...... 10934, 248...... 12354 74...... 14406 10937, 10938, 11204, 11459, 249...... 11507 4...... 11889 1100...... 11894 11859, 11861, 12071, 12072, 250...... 11507 5...... 11889 Proposed Rules: 12073, 12075, 12077, 12080, 259...... 11507 7...... 11889 606...... 15115 12081, 12082, 12084, 12085, 260...... 11507 16...... 11889 607...... 15115 12460, 12462, 12463, 13668, 269...... 11507 75...... 15058 608...... 15115 13871, 13875, 13877, 14207, 270...... 11507, 15500 Proposed Rules: 36 CFR 14209, 14822, 14826, 14827, 274...... 11507, 15500 4...... 12490 14831, 14834, 14838, 14844, 00...... 15115 1...... 15077 18 CFR 14846, 14847, 14849, 14852, 70...... 15115 3...... 15077 15226, 15230, 15232 35...... 12088 75...... 15115 13...... 15077 71 ...... 11369, 11461, 11866, 157 ...... 11461, 12115, 15234 90...... 15115 Ch. XV ...... 14760 12630, 12917, 12918, 14344, 380...... 15234 701...... 11735, 11736 14855, 14856, 14857 28 CFR 1210...... 14406 95...... 14442 19 CFR 70...... 14406 Proposed Rules: 97 ...... 13669, 13671, 13673 12...... 12470 212...... 11680 1260...... 14406 24...... 13880 29 CFR 261...... 11680 Proposed Rules: 111...... 13880 95...... 14406 295...... 11680 25...... 13703 178...... 13880 4022...... 14752, 14753 1190...... 12493 39 ...... 11006, 11505, 11940, 4044...... 13905, 14752 1191...... 12493 11942, 12489, 12957, 13251, 20 CFR 4050...... 14752 37 CFR 13919, 13921, 13923, 14216, 220...... 14458 Proposed Rules: 14218, 15278, 15280 322...... 14459 1614...... 11019 1...... 14864 71 ...... 12153, 12957, 13704, 404...... 11866 1910...... 11948, 13254 Proposed Rules: 13705, 13707, 14497, 15282 416...... 11866 201...... 14227, 14505 30 CFR 255...... 11009 108...... 15113 21 CFR 202...... 11467 38 CFR 109...... 15113 20...... 11881 206...... 11467, 14022 3...... 12116 111...... 15113 101...... 11205 250...... 14469 19...... 14471 129...... 15113 176...... 13675 Proposed Rules: 20...... 14471 191...... 15113 177...... 15057 914...... 11950, 12492 21...... 12117, 13893

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Proposed Rules: 3500...... 11475 199...... 10943, 11904 1837...... 12484 3...... 13254 515...... 15252 1842...... 12484 45 CFR 1848...... 12484 39 CFR Proposed Rules: 74...... 14406 2...... 11410 1851...... 12484 111...... 12946 400...... 15410 10...... 11410 2409...... 12950 Proposed Rules: 401...... 15410 15...... 11410 Proposed Rules: 20...... 11023 612...... 11740 24...... 11410 Ch. 9 ...... 13416 111...... 13258 613...... 11740 25...... 11410 913...... 14229 26...... 11410 49 CFR 952...... 13707 46 CFR 28...... 11410 19...... 14406 30...... 11410 40 CFR 28...... 10943 193...... 10950 30...... 10943 70...... 11410 350...... 15092 9...... 15090 32...... 10943 90...... 11410 30...... 14406 355...... 15092 34...... 10943 114...... 11410 385...... 11904 51...... 11222 35...... 10943 169...... 11410 52 ...... 10944, 11468, 12118, 571...... 11751 38...... 10943 175...... 11410 572...... 10961, 15254 12472, 12474, 12476, 12481, 39...... 10943 188...... 11410 Proposed Rules: 12948, 13239, 13694, 14212, 54...... 10943 199...... 11410 14873, 15240, 15244 Ch I...... 11541 56...... 10943 40...... 13261, 15118 60...... 13242 58...... 10943 47 CFR 63...... 11231 1...... 14476 171...... 11028 61...... 10943 172...... 11028 68...... 13243 63...... 10943 24...... 14213 86...... 11898 27...... 12483 173...... 11028 76...... 10943 174...... 11028 136...... 14344 77...... 10943 54...... 12135 141...... 11372 73 ...... 11476, 11477, 11750, 175...... 11028 78...... 10943 176...... 11028 148...... 14472 91...... 11904 13250 180 ...... 10946, 11234, 11243, 76...... 12135 177...... 11028 92...... 10943 178...... 11028 11736, 12122, 12129, 15248 95...... 10943 Proposed Rules: 261...... 14472 179...... 11028 96...... 10943 1...... 13933 180...... 11028 262...... 12378 97...... 10943 2...... 14230 268...... 14472 190...... 15290 105...... 10943 26...... 14230 191...... 15290 271...... 14472 108...... 10943 27...... 14230 300...... 13697, 14475 192...... 15290 109...... 10943 54...... 13933 195...... 15290 302...... 14472 110...... 10943 61...... 13933 431...... 15091 222...... 15298 111...... 10943 69...... 13933 229...... 15298 445...... 14344 114...... 10943 73 ...... 11537, 11538, 11539, Proposed Rules: 115...... 11904 11540, 11541, 11955, 12155, 51...... 11024 119...... 10943 13260, 13261 50 CFR 52 ...... 11027, 11275, 11524, 125...... 10943 17 ...... 14876, 14886, 14896 12494, 12495, 12499, 12958, 132...... 11904 48 CFR 300...... 14907 13260, 13709, 14506, 14510, 133...... 11904 Ch. 2 ...... 14380 648 ...... 11478, 11909, 15110 14930, 15286, 15287 134...... 11904 Ch. 5 ...... 11246 660...... 11480 63...... 11278 151...... 10943 202...... 14397 622...... 12136 81...... 14510 153...... 10943 204...... 14397 679 ...... 10978, 11247, 11481, 141...... 11372 154...... 10943 207...... 14397 11909, 12137, 12138, 13698, 438...... 11755 160...... 10943 208...... 14397, 14400 14918, 14924, 15271, 15272 503...... 11278 161...... 10943 212...... 14400 Proposed Rules: 162...... 10943 222...... 14397, 14402 16...... 11756 42 CFR 163...... 10943 244...... 14400 17 ...... 12155, 12181, 13262, 121...... 15252 164...... 10943 247...... 14400 13935, 14513, 14931, 14935 405...... 13911 170...... 10943 252 ...... 14397, 14400, 14402 216...... 11542 410...... 13911 174...... 10943 1806...... 12484 223...... 12959 Proposed Rules: 175...... 10943 1808...... 12484 224...... 12959, 13935 410...... 13082 182...... 10943 1811...... 12484 300...... 13284 493...... 14510 189...... 11904 1813...... 12484 600...... 11956 190...... 10943 1815...... 12484 622...... 11028, 14518 43 CFR 193...... 10943 1825...... 12484 648 ...... 11029, 11956, 14519 12...... 14406 195...... 10943 1835...... 12484 679 ...... 11756, 11973, 12500

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REMINDERS California; comments due by persons; comments due FEDERAL TRADE The items in this list were 3-31-00; published 1-31- by 3-27-00; published 1- COMMISSION editorially compiled as an aid 00 26-00 Consumer financial to Federal Register users. AGRICULTURE ENVIRONMENTAL information; privacy Inclusion or exclusion from DEPARTMENT PROTECTION AGENCY requirements; comments this list has no legal Animal and Plant Health Air programs: due by 3-31-00; published significance. Inspection Service Stratospheric ozone 3-1-00 Exportation and importation of protectionÐ GENERAL SERVICES animals and animal Essential-use allowances ; ADMINISTRATION RULES GOING INTO products: allocation; comments Federal Acquisition Regulation EFFECT MARCH 22, 2000 Canine and equine semen due by 3-27-00; (FAR): from Canada; comments published 2-25-00 Deferred research and AGRICULTURE due by 3-27-00; published Air programs; approval and development costs; DEPARTMENT 1-26-00 promulgation; State plans comments due by 3-27- 00; published 1-26-00 Animal and Plant Health AGRICULTURE for designated facilities and Inspection Service DEPARTMENT pollutants: Drafting principles; Georgia; comments due by comments due by 3-27- Exportation and importation of Forest Service 3-27-00; published 2-25- 00; published 1-26-00 animals and animal Alaska National Interest Lands 00 INTERIOR DEPARTMENT products: Conservation Act: Air quality implementation Fish and Wildlife Service African spurred tortoise etc.; TItle VII implementation plans; approval and Alaska National Interest Lands published 3-22-00 (subsistence priority) promulgation; various Conservation Act: Kenai Peninsula ENVIRONMENTAL States: Fish and wildlife resources determination; PROTECTION AGENCY California; comments due by on public lands; comments due by 3-31- Pesticides; tolerances in food, 3-29-00; published 3-14- preference for subsistence 00; published 2-22-00 animal feeds, and raw 00 useÐ agricultural commodities: Alaska National Interest Lands New Mexico; comments due Kenai Peninsula; Cucurbitacins; published 3- Conservation Act; Title VIII by 3-29-00; published 2- comments due by 3-31- 22-00 implementation (subsistence 28-00 00; published 2-22-00 priority): FEDERAL TRADE Hazardous waste program Alaska National Interest Lands Fish and wildlife; COMMISSION authorizations: Conservation Act; Title VIII subsistence taking; Louisiana; comments due by Appliances, consumer; energy implementation (subsistence comments due by 3-27- 3-29-00; published 2-28- consumption and water use priority): 00; published 2-2-00 00 information in labeling and Fish and wildlife; COMMERCE DEPARTMENT advertising: Missouri; comments due by subsistence taking; Anticybersquatting Consumer 3-29-00; published 2-28- comments due by 3-27- Comparability rangesÐ Protection Act; abusive 00 00; published 2-2-00 Oil-fired instantaneous domain registrations FEDERAL Endangered and threatened water heaters and involving personal names; COMMUNICATIONS species: compact dishwashers; resolution issues; comments COMMISSION Columbian sharp-tailed published 12-20-99 due by 3-30-00; published Common carrier services: grouse; status review; GENERAL ACCOUNTING 2-29-00 Local exchange carriers, comments due by 3-27- OFFICE COMMERCE DEPARTMENT low-volume long distance 00; published 1-24-00 Personnel Appeals Board; National Oceanic and users, and Federal-State Tidewater goby; comments procedural rules; published Atmospheric Administration Joint Board on Universal due by 3-31-00; published 3-22-00 Fishery conservation and ServiceÐ 2-15-00 TRANSPORTATION management: Access charge reform and LIBRARY OF CONGRESS DEPARTMENT Northeastern United States price cap performance Copyright Office, Library of Federal Aviation fisheriesÐ review; comments due Congress by 3-30-00; published Administration Deep-sea red crab; Digital Millennium Copyright 3-15-00 Airworthiness directives: comments due by 3-31- Act: 00; published 3-1-00 Radio stations; table of Circumvention of copyright Boeing; published 3-7-00 assignments: Deep-sea red crab; protection systems for Dornier; published 3-7-00 Alabama and Florida; correction; comments access control comments due by 3-27- McDonnell Douglas; due by 3-31-00; technologies; exemption to 00; published 2-16-00 published 2-16-00 published 3-17-00 prohibition; comments due Texas; comments due by 3- by 3-31-00; published 3- DEFENSE DEPARTMENT 27-00; published 2-16-00 17-00 COMMENTS DUE NEXT Federal Acquisition Regulation Television broadcasting: NATIONAL AERONAUTICS WEEK (FAR): Broadcast licensees; public AND SPACE Deferred research and interest obligations; ADMINISTRATION AGRICULTURE development costs; comments due by 3-27- Federal Acquisition Regulation DEPARTMENT comments due by 3-27- 00; published 1-26-00 (FAR): 00; published 1-26-00 Agricultural Marketing FEDERAL DEPOSIT Deferred research and Service Drafting principles; INSURANCE CORPORATION development costs; Cotton classing, testing, and comments due by 3-27- Consumer financial information comments due by 3-27- standards: 00; published 1-26-00 privacy; comments due by 00; published 1-26-00 Upland cotton; official color ENERGY DEPARTMENT 3-31-00; published 2-22-00 Drafting principles; grade determination; Energy Efficiency and FEDERAL RESERVE comments due by 3-27- comments due by 3-31- Renewable Energy Office SYSTEM 00; published 1-26-00 00; published 3-1-00 Energy conservation: Consumer financial information NATIONAL CREDIT UNION Raisins produced from grapes Weatherization assistance privacy; comments due by ADMINISTRATION grown inÐ program for low-income 3-31-00; published 2-22-00 Credit unions:

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Consumer financial TRANSPORTATION regulations; comments The text of laws is not information; privacy DEPARTMENT due by 3-29-00; published in the Federal requirements; comments Federal Aviation published 12-28-99 Register but may be ordered due by 3-31-00; published Administration TREASURY DEPARTMENT in ``slip law'' (individual 3-1-00 pamphlet) form from the Airworthiness directives: Comptroller of the Currency Superintendent of Documents, PERSONNEL MANAGEMENT Agusta S.p.A.; comments Consumer financial information OFFICE U.S. Government Printing due by 3-27-00; published privacy; comments due by Office, Washington, DC 20402 Absence and leave: 1-26-00 3-31-00; published 2-22-00 (phone, 202±512±1808). The Sick leave for family care Airbus; comments due by 3- TREASURY DEPARTMENT text will also be made purposes; comments due 27-00; published 2-24-00 Customs Service available on the Internet from by 3-27-00; published 2-9- GPO Access at http:// Alexander Schleicher Country of origin marking; 00 www.access.gpo.gov/nara/ Segelflugzeugbau; comments due by 3-27-00; index.html. Some laws may Prevailing rate systems; comments due by 3-31- published 1-26-00 comments due by 3-30-00; 00; published 3-1-00 not yet be available. TREASURY DEPARTMENT published 2-29-00 Empresa Brasileira de Internal Revenue Service S. 376/P.L. 106±180 POSTAL SERVICE Aeronautica S.A.; comments due by 3-27- Income taxes: Open-market Reorganization International Mail Manual: 00; published 2-24-00 Source of compensation for for the Betterment of International surface mail; Eurocopter Deutschland labor or personal services; International postal rate changes; GMBH; comments due by comments due by 3-29- Telecommunications Act (Mar. comments due by 3-31- 3-27-00; published 1-25- 00; published 1-21-00 17, 2000; 114 Stat. 48) 00; published 3-1-00 00 Procedure and administration: Last List March 16, 2000 SECURITIES AND Airworthiness standards: Combat zone service and EXCHANGE COMMISSION Special conditionsÐ Presidentially declared Practice and procedure: McDonnell Douglas Model disaster; tax-related Public Laws Electronic Market information fees and MD-10-10/10F and deadline relief; comments Notification Service revenues; public MD10-30/30F airplanes; due by 3-30-00; published (PENS) dissemination; comments comments due by 3-27- 12-30-99 due by 3-31-00; published 00; published 2-25-00 TREASURY DEPARTMENT 12-17-99 Transport airplane fuel tank Thrift Supervision Office PENS is a free electronic mail Privacy of Consumer Financial system design review, Consumer financial information notification service of newly Information (Regulation S- flammability reduction, and privacy; comments due by enacted public laws. To P); comments due by 3-31- maintenance and inspection 3-31-00; published 2-22-00 subscribe, go to www.gsa.gov/ 00; published 3-8-00 requirements; comments archives/publaws-l.html or Securities: due by 3-27-00; published send E-mail to Selective disclosure and 2-16-00 LIST OF PUBLIC LAWS [email protected] with insider trading; comments TRANSPORTATION the following text message: due by 3-29-00; published DEPARTMENT This is a continuing list of SUBSCRIBE PUBLAWS-L 12-28-99 Research and Special public bills from the current Your Name. session of Congress which SMALL BUSINESS Programs Administration have become Federal laws. It Note: This service is strictly ADMINISTRATION Hazardous materials: may be used in conjunction for E-mail notification of new Small business size standards: Hazardous materials with ``P L U S'' (Public Laws laws. The text of laws is not Compliance with other transportationÐ Update Service) on 202±523± available through this service. agency programs; Compatibility with 6641. This list is also PENS cannot respond to comments due by 3-27- International Atomic available online at http:// specific inquiries sent to this 00; published 1-26-00 Energy Agency www.nara.gov/fedreg. address.

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