5–28–10 Friday Vol. 75 No. 103 May 28, 2010

Pages 29877–30266

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Contents Federal Register Vol. 75, No. 103

Friday, May 28, 2010

Agricultural Marketing Service Matching Requirements: NOTICES Grants Awarded under Children’s Bureau Funding Agency Information Collection Activities; Proposals, Opportunity Announcement for Fiscal Year 2010, Submissions, and Approvals: 30038–30039 National Organic Program, 29967–29969 Migrant and Seasonal Farmworkers Study, 30047–30050

Agriculture Department Coast Guard See Agricultural Marketing Service RULES See Animal and Plant Health Inspection Service Special Local Regulation for Marine Events: See Forest Service 2010 International Cup Regatta, Pasquotank River, See Rural Business-Cooperative Service Elizabeth City, NC, 29889–29891 Temporary Change of Dates for Recurring Marine Events Animal and Plant Health Inspection Service in the Fifth Coast Guard District, 29886–29889 NOTICES Special Local Regulation: Intent To Prepare an Environmental Impact Statement: Maggie Fischer Memorial Great South Bay Cross Bay Determination of Nonregulated Status of Sugar Beet Swim; Great South Bay, NY, 29891–29893 Genetically Engineered for Tolerance to the Herbicide Glyphosate, 29969–29972 Commerce Department See Foreign-Trade Zones Board Arctic Research Commission See Industry and Security Bureau NOTICES See International Trade Administration Meetings, 29972 See National Oceanic and Atmospheric Administration

Army Department Committee for Purchase From People Who Are Blind or See Engineers Corps Severely Disabled NOTICES Blind or Severely Disabled, Committee for Purchase From Procurement List; Additions and Deletions, 29994–29995 People Who Are See Committee for Purchase From People Who Are Blind or Commodity Futures Trading Commission Severely Disabled NOTICES Meetings; Sunshine Act, 29995–29996 Centers for Disease Control and Prevention NOTICES Consumer Product Safety Commission Meetings: NOTICES Advisory Committtee on Immunization Practices, 30044 Meetings; Sunshine Act, 29996 Disease, Disability, and Injury Prevention and Control Special Emphasis Panel (SEP), 30041 Council on Environmental Quality Disease, Disability, and Injury Prevention and Control NOTICES Special Emphasis Panel (SEP), 30040–30041 MMS NEPA Policies, Practices, and Procedures for OCS Oil Partnerships To Advance the National Occupational and Gas Exploration and Development, 29996–29997 Research Agenda, 30044–30045 Defense Department Centers for Medicare & Medicaid Services See Engineers Corps RULES NOTICES Medicaid Program: Arms Sales Notifications, 29998–30001 Premiums and Cost Sharing, 30244–30265 Federal Advisory Committee: NOTICES Threat Reduction Advisory Committee, 30002 Agency Information Collection Activities; Proposals, Meetings: Submissions, and Approvals, 30030–30031 Defense Task Force on Sexual Assault in the Military Meetings: Services, 30002 Advisory Panel on Medicare Education, 30043–30044 Uniform Formulary Beneficiary Advisory Panel, 30003 Calendar Year 2010 New Clinical Laboratory Tests Privacy Act; Systems of Records, 30003–30004 Payment Determinations, 30041–30043 Science and Technology Reinvention Laboratory Personnel CHIP Working Group; Medicaid and CHIP Programs, Management Demonstration Project: 30046–30047 Department of Navy (DON); Office of Naval Research (ONR), 30198–30241 Children and Families Administration NOTICES Department of Transportation Agency Information Collection Activities; Proposals, See Pipeline and Hazardous Materials Safety Submissions, and Approvals, 30031–30032 Administration

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Education Department PROPOSED RULES NOTICES Approval and Promulgation of Air Quality Implementation List of Correspondence: Plans: Office of Special Education and Rehabilitative Services, District of Columbia; Transportation Conformity 30005–30006 Regulations, 29965–29966 Agency Information Collection Activities; Proposals, NOTICES Submissions, and Approvals, 30006–30007 Ambient Air Monitoring Reference and Equivalent Race to the Top Fund Assessment Program, 30007 Methods: Teacher Incentive Fund, 30007–30008 Designation of One New Equivalent Method; Office of Research and Development, 30022 Employee Benefits Security Administration Environmental Impact Statements: NOTICES Weekly Receipt, 30022–30023 Meetings: CHIP Working Group; Medicaid and CHIP Programs, Environmental Quality Council 30046–30047 See Council on Environmental Quality

Employment and Training Administration Executive Office of the President NOTICES See Council on Environmental Quality Affirmative Determinations Regarding Applications for See Trade Representative, Office of United States Reconsideration: John Manville Engineered Products Division, Farm Credit Administration Spartanburg, SC, 30063 NOTICES Amended Certifications Regarding Eligibility To Apply for Meetings; Sunshine Act, 30023 Worker Adjustment Assistance: Arcelor Mittal, et al., Hennepin, IL, 30065–30066 Federal Aviation Administration Autosplice, Inc., et al., 30064 RULES B.G. Sulzle, Inc., et al., 30064–30065 Automatic Dependent Surveillance–Broadcast (ADS–B) Out Chrysler, LLC., et al., 30065 Performance Requirements to Support Air Traffic Stanley Furniture Co., Inc. Including On-Site Leased Control (ATC) Service, 30160–30195 Workers; Stanleytown, VA, 30064 PROPOSED RULES Determinations Regarding Eligibility To Apply for Worker Proposed Revocations of Class E Airspace: Adjustment Assistance, 30066–30073 Eastsound, WA, 29963–29964 Negative Determinations Regarding Applications for Special Conditions: Reconsideration: Cirrus Design Corp. Model SF50 Airplane; Function and National Briquetting Co., East Chicago, IN, 30073–30074 Reliability Testing, 29962–29963

Energy Department Federal Communications Commission See Energy Efficiency and Renewable Energy Office RULES See Federal Energy Regulatory Commission Telecommunications Relay Services, Speech-to-Speech PROPOSED RULES Services, E911 Requirements, etc., 29914–29915 Energy Efficiency and Sustainable Design Standards for NOTICES New Federal Buildings, 29933–29947 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 30024 Energy Efficiency and Renewable Energy Office Petition for Reconsideration of Commissions Universal NOTICES Service High-Cost Insular Support Order: Energy Efficiency and Conservation Block Grant Program, Comments Sought on Puerto Rico Telephone Co. Inc., 30014–30017 30024–30025 Privacy Act; Systems of Records, 30025–30028 Engineers Corps NOTICES Federal Energy Regulatory Commission Intent To Prepare Environmental Impact Statement: NOTICES Elliott Bay Seawall Project, Seattle, WA, 30004–30005 Agency Information Collection Activities; Proposals, Submissions, and Approvals, 30008–30010 Environmental Protection Agency Agenda and Procedures for the Staff Technical Conference: RULES Improving Market and Planning Efficiency through Approval and Promulgation of Air Quality Implementation Improved Software, 30010–30012 Plans: Applications: District of Columbia; Transportation Conformity Friant Power Authority et al., 30012–30013 Regulations, 29894–29897 Hydrodynamics, Inc., 30012 Approval and Promulgation of Implementation Plans: Availability of Environmental Assessment: New York State Implementation Plan Revision, 29897– Duke Energy Indiana, Inc., 30013 29899 South Feather Water and Power Agency, 30013–30014 Pesticide Tolerances: Baseline Filing: Boscalid, 29901–29908 Consumers Energy Company, 30014 Prothioconazole, 29908–29914 Filing Procedures For Electronically Filed Tariffs: Withdrawal of Federal Antidegradation Policy: Electronic Tariff Filings, 30017–30018 Waters of the United States within the Commonwealth of Filing: Pennsylvania, 29899–29901 Cross-Sound Cable Company, LLC, 30018

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Hudson Transmission Partners, LLC, 30018 Imported Food Under 2002 Public Health Security and Institution of Proceeding and Refund Effective Date: Bioterrorism Preparedness and Response Act, 30036– Western Electric Coordinating Council, 30018 30038 Intent To Prepare an Environmental Assessment: Registration of Food Facilities, etc., 30033–30035 National Fuel Gas Supply Corporation; West to East- Meetings: Overbeck to Leidy Project, 30019–30021 Oncologic Drugs Advisory Committee, 30045–30046 Proposed Restricted Service List; etc: South Carolina Electric & Gas Company Saluda Foreign Assets Control Office Hydroelectric Project, 30021 NOTICES Teleconference with the National Marine Fisheries Service: Unblocking of Specially Designated National and Blocked South Carolina Electric and Gas Company Saluda Persons Pursuant to the Foreign Narcotics Kingpin Hydroelectric Project, 30021 Designation Act, 30110 Unblocking of Specially Designated Nationals and Blocked Federal Housing Finance Agency Persons Pursuant to Executive Order 12978, 30110– RULES 30111 Affordable Housing Program Amendments: Federal Home Loan Bank Mortgage Refinancing Foreign-Trade Zones Board Authority, 29877–29883 NOTICES PROPOSED RULES Application for Reorganization under Alternative Site Federal Home Loan Bank Housing Goals, 29947–29962 Framework: Foreign-Trade Zone 3—San Francisco, CA, 29974 Federal Motor Carrier Safety Administration Expansion of Foreign–Trade Zone 272: RULES Lehigh Valley, PA, 29975–29976 Direct Final Rulemaking Procedures, 29915–29917 NOTICES Forest Service Solicitation of Applications for Fiscal Year (FY) 2010 Motor NOTICES Carrier Safety Assistance Program (MCSAP) High Agency Information Collection Activities; Proposals, Priority Grant Funding, 30105–30106 Submissions, and Approvals: Volunteer Application for Natural Resources Agencies, Federal Railroad Administration 29969 NOTICES Meetings: Petitions for Waivers of Compliance, 30105 Kenai Peninsula-Anchorage Borough Resource Advisory Committee, 29972 Federal Reserve System Health and Human Services Department NOTICES See Centers for Disease Control and Prevention Changes in Bank Control; Acquisition of Shares of Bank or See Centers for Medicare & Medicaid Services Bank Holding Companies, 30028–30029 See Children and Families Administration Federal Open Market Committee; Domestic Policy See Food and Drug Administration Directive, 30029 See Health Resources and Services Administration Formations of, Acquisitions by, and Mergers of Bank See National Institutes of Health Holding Companies, 30029 Proposals To Engage in Permissible Nonbanking Activities Health Resources and Services Administration or To Acquire Companies Engaged, etc., 30029–30030 NOTICES Agency Information Collection Activities; Proposals, Federal Transit Administration Submissions, and Approvals, 30032–30033 NOTICES FY 2010 Discretionary Livability Funding Opportunity: Homeland Security Department Alternatives Analysis Program, 30100–30103 See Coast Guard See U.S. Citizenship and Immigration Services Fish and Wildlife Service RULES Housing and Urban Development Department Migratory Bird Permits: PROPOSED RULES Changes in the Regulations Governing Migratory Bird Negotiated Rulemaking Committee Meetings: Rehabilitation, 29917–29919 2008 Native American Housing Assistance and Self- NOTICES Determination Reauthorization Act, 29964–29965 Environmental Assessment; Availability, etc.: NOTICES Nomans Land Island National Wildlife Refuge; Town of Agency Information Collection Activities; Proposals, Chilmark, Massachusetts, 30052–30054 Submissions, and Approvals: Proposed Issuance of an Incidental Take Permit to Energy Section 202 Supportive Housing for Elderly Application Northwest for Construction and Operation of the Radar Submission Requirement, 30051 Ridge Wind Project LLC, 30057–30059 Federal Property Suitable as Facilities To Assist Homeless, 30051 Food and Drug Administration NOTICES Industry and Security Bureau Agency Information Collection Activities; Proposals, RULES Submissions, and Approvals: Implementation of Changes from the 2009 Annual Review Cosmetic Labeling Regulations, 30035–30036 of the Entity List, 29884–29886

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Interior Department Intent To Solicit Nominations: See Fish and Wildlife Service Steens Mountain Advisory Council, Oregon, 30056–30057 See Land Management Bureau Proposed Reinstatements of Terminated Oil and Gas Leases, See National Park Service 30059 Proposed Reinstatements of Terminated Oil and Gas Leases: Internal Revenue Service Montana, 30060 NOTICES Availability of 2011 Grant Application Package: National Aeronautics and Space Administration Low Income Taxpayer Clinic Grant Program, 30108– NOTICES 30109 Meetings: Meetings: NASA Advisory Council; Science Committee; Electronic Tax Administration Advisory Committee, Heliophysics Subcommittee, 30074 30109–30110 National Highway Traffic Safety Administration International Trade Administration NOTICES NOTICES Agency Information Collection Activities; Proposals, Amended Preliminary Determination of Sales at Less Than Submissions, and Approvals: Fair Value: Reports, Forms and Record Keeping Requirements, 30098 Certain Seamless Carbon and Alloy Steel Standard, Line, Petition for Exemption From the Vehicle Theft Prevention and Pressure Pipe From the People’s Republic of Standard: China, 29972–29974 Ford Motor Co., 30103–30105 Application(s) for Duty-Free Entry of Scientific Instruments, National Institutes of Health 29974–29975 NOTICES Extension of the Final Results of Antidumping Duty Meetings: Administrative Review: Eunice Kennedy Shriver National Institute of Child Certain Cut to Length Carbon Quality Steel Plate Products Health and Human Development, 30046 From Italy, 29976 National Center for Complementary and Alternative Initiation of Antidumping and Countervailing Duty Medicine, 30039–30040 Administrative Reviews, 29976–29984 National Center for Research Resources, 30040 Meetings: National Institute of Allergy and Infectious Diseases, Civil Nuclear Trade Advisory Committee, 29988–29989 30040, 30046 Preliminary Determination of Sales at Less Than Fair Value National Institute of Diabetes and Digestive and Kidney and Postponement of Final Determination: Diseases, 30039 Seamless Refined Copper Pipe and Tube From Mexico; Correction, 29990–29991 National Oceanic and Atmospheric Administration Trade Promotion Coordinating Committee Renewable NOTICES Energy and Energy Efficiency Export Strategy To Issuance of Permit: Support the National Export Initiative, 29993–29994 Taking of Threatened or Endangered Marine Mammals Incidental to Commercial Fishing Operations, 29984– International Trade Commission 29988 NOTICES Meetings: Effects of Intellectual Property Infringement and Indigenous New England Fishery Management Council, 29989–29990 Innovation Policies on U.S. Economy: Receipt of Application for Permit Amendment: China, 30060–30061 Marine Mammals, 29991 Meetings; Sunshine Act, 30061 Schedules for Atlantic Shark Identification Workshops and Protected Species Safe Handling, Release, and Justice Department Identification Workshops, 29991–29993 NOTICES Agency Information Collection Activities; Proposals, National Park Service Submissions, and Approvals: NOTICES COPS’ Rural Law Enforcement National Training National Register of Historic Places; Pending Nominations Assessment, 30061–30062 and Related Actions, 30057

Labor Department Nuclear Regulatory Commission See Employee Benefits Security Administration NOTICES See Employment and Training Administration Docketing, Proposed Action, and Opportunity for a Hearing: NOTICES Renewal of Special Nuclear Material License; Fort St. Agency Information Collection Activities; Proposals, Vrain Independent Spent Fuel Storage Installation; Submissions, and Approvals, 30062–30063 Department of Energy, 30074–30077 Meetings: Land Management Bureau Advisory Committee on Reactor Safeguards; ACRS NOTICES Subcommittee on Digital I and C Systems, 30077 Alaska Native Claims Selection, 30051–30052 Advisory Committee on Reactor Safeguards; ACRS Environmental Impact Statements; Availability, etc.: Subcommittee on ESBWR, 30077 Casper, Kemmerer, Pinedale, Rock Springs, Newcastle, Receipt of Request for Action: and Rawlins Field Offices, Wyoming, 30054–30055 Entergy Nuclear Operations, Inc.; Entergy Nuclear Graymont Western U.S., Inc. Proposed Mine Expansion, Vermont Yankee, LLC; Vermonth Yankee Nuclear Broadwater County, Montana, 30055–30056 Power Station, 30078

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Office of United States Trade Representative Treasury Department See Trade Representative, Office of United States See Foreign Assets Control Office See Internal Revenue Service Pipeline and Hazardous Materials Safety Administration See Thrift Supervision Office NOTICES NOTICES Agency Information Collection Activities; Proposals, Agency Information Collection Activities; Proposals, Submissions, and Approvals: Submissions, and Approvals: Pipeline Safety, 30099 Terrorism Risk Insurance Program; Litigation Applications for Modification of Special Permit, 30099– Management Submissions, 30106 30100 Terrorism Risk Insurance Program; Recordkeeping Requirements for Insurers Compensated Under Postal Service Program, 30106–30107 RULES Business Reply Mail Online Application Option, 29893– U.S. Citizenship and Immigration Services 29894 NOTICES Rural Business-Cooperative Service Agency Information Collection Activities; Proposals, Submissions, and Approvals: RULES Form N–648; Medical Certification for Disability Rural Microentrepreneur Assistance Program, 30114–30158 PROPOSED RULES Exceptions, 30050 Value-Added Producer Grant Program, 29920–29932

Securities and Exchange Commission Separate Parts In This Issue NOTICES Meetings; Sunshine Act, 30078 Part II Self-Regulatory Organizations; Proposed Rule Changes: Agriculture Department, Rural Business-Cooperative Chicago Board Options Exchange, Inc., 30082–30095 Service, 30114–30158 International Securities Exchange, LLC, 30095–30097 NASDAQ OMX PHLX, Inc., 30078–30082 Part III NYSE Arca, Inc., 30095 Transportation Department, Federal Aviation Thrift Supervision Office Administration, 30160–30195 NOTICES Agency Information Collection Activities; Proposals, Part IV Submissions, and Approvals: Defense Department, 30198–30241 Community Reinvestment Act Sunshine, 30107–30108 Part V Trade Representative, Office of United States Health and Human Services Department, Centers for NOTICES Medicare & Medicaid Services, 30244–30265 Request for Comments: Canada—Compliance with Softwood Lumber Agreement, 30097–30098 Reader Aids Transportation Department Consult the Reader Aids section at the end of this page for See Federal Aviation Administration phone numbers, online resources, finding aids, reminders, See Federal Motor Carrier Safety Administration and notice of recently enacted public laws. See Federal Railroad Administration To subscribe to the Federal Register Table of Contents See Federal Transit Administration LISTSERV electronic mailing list, go to http:// See National Highway Traffic Safety Administration listserv.access.gpo.gov and select Online mailing list See Pipeline and Hazardous Materials Safety archives, FEDREGTOC-L, Join or leave the list (or change Administration settings); then follow the instructions.

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CFR PARTS AFFECTED IN THIS ISSUE

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

7 CFR 4280...... 30114 Proposed Rules: 1951...... 29920 4284...... 29920 10 CFR Proposed Rules: 433...... 29933 435...... 29933 12 CFR 1291...... 29877 Proposed Rules: 1281...... 29947 14 CFR 91...... 30160 Proposed Rules: 23...... 29962 71...... 29963 15 CFR 744...... 29884 24 CFR Proposed Rules: 1000...... 29964 33 CFR 100 (3 documents) ...... 29886, 29889, 29891 39 CFR 111...... 29893 40 CFR 52 (2 documents) ...... 29894, 29897 131...... 29899 180 (2 documents) ...... 29901, 29908 Proposed Rules: 52...... 29965 42 CFR 447...... 30244 457...... 30244 47 CFR 64...... 29914 49 CFR 389...... 29915 50 CFR 21...... 29917

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Rules and Regulations Federal Register Vol. 75, No. 103

Friday, May 28, 2010

This section of the FEDERAL REGISTER comments into consideration. Based on [email protected]; or Melissa L. contains regulatory documents having general the comments received and the Allen, Senior Program Analyst, 202– applicability and legal effect, most of which considerations discussed in the 2009 408–2524, [email protected], are keyed to and codified in the Code of interim final rule, FHFA is adopting the Federal Housing Finance Agency, 1625 Federal Regulations, which is published under interim final rule as a final rule, with Eye Street, NW., Washington, DC 20006; 50 titles pursuant to 44 U.S.C. 1510. the following changes. The final rule or Sharon B. Like, Associate General The Code of Federal Regulations is sold by provides the Banks with greater Counsel, 202–414–8950, the Superintendent of Documents. Prices of flexibility to manage the timing of the [email protected], Federal Housing new books are listed in the first FEDERAL counseling required for households, and Finance Agency, 1700 G Street, NW., REGISTER issue of each week. gives the Banks discretion to permit Washington, DC 20552. The telephone members to determine, prior to number for the Telecommunications counseling, whether a household could Device for the Hearing Impaired is 800– FEDERAL HOUSING FINANCE qualify, in conjunction with AHP 877–8339. AGENCY subsidy, for refinancing under an SUPPLEMENTARY INFORMATION: eligible targeted refinancing program, or 12 CFR Part 1291 to refer households directly to eligible I. Background RIN 2590–AA04 targeted refinancing programs for such A. HERA determinations. The final rule also Effective July 30, 2008, Division A of Affordable Housing Program permits a Bank, in its discretion, to HERA, Public Law No. 110–289, 122 Amendments: Federal Home Loan allow members to enroll households in Stat. 2654 (2008), created FHFA as an Bank Mortgage Refinancing Authority the AHP refinancing set-aside program independent agency of the Federal prior to counseling. In all cases, the AGENCY: Federal Housing Finance Government. HERA transferred the household must obtain the counseling supervisory and oversight Agency. prior to disbursement of the AHP responsibilities over the Federal ACTION: Final rule. subsidy on behalf of the household. The National Mortgage Association (Fannie SUMMARY: Section 1218 of the Housing final rule also permits a Bank to commit Mae), Federal Home Loan Mortgage and Economic Recovery Act of 2008 AHP subsidies under its set-aside Corporation (Freddie Mac) (collectively, (HERA) requires the Federal Housing refinancing program to members by the Enterprises), the Banks, and the Bank Finance Agency (FHFA) to permit the sunset date of July 30, 2010, where a System’s Office of Finance, from the Federal Home Loan Banks (Banks) until Bank’s set-aside operating procedure is Office of Federal Housing Enterprise July 30, 2010, to use Affordable Housing to commit subsidies to members rather Oversight (OFHEO) and the Federal Program (AHP) homeownership set- than directly to households. In order to Housing Finance Board (FHFB), aside funds to refinance low- or accommodate this change as well as the respectively, to FHFA. FHFA is moderate-income households’ mortgage earlier enrollment of, and commitment responsible for ensuring that the loans. On August 4, 2009, FHFA of AHP subsidy to, households, and Enterprises and the Banks operate in a adopted an interim final rule that determinations of whether households safe and sound manner, including being amended its AHP regulation to could qualify for an eligible targeted capitalized adequately, and carry out authorize the Banks to provide AHP refinancing program, the final rule their public policy missions, including direct subsidies through their members extends the date by which households fostering liquid, efficient, competitive, under their homeownership set-aside must have submitted applications for and resilient national housing finance programs to assist low- or moderate- refinancing to an eligible targeted markets. The Enterprises and the Banks income households who qualify for refinancing program from July 30, 2010 continue to operate under regulations refinancing assistance under eligible to December 31, 2010, which are promulgated by OFHEO and FHFB until federal, state and local targeted subsequently approved by the eligible such regulations are superseded by refinancing programs, including the targeted refinancing program. In regulations issued by FHFA. See HERA Hope for Homeowners Program and the addition, the final rule makes the at sections 1302, 1312, 122 Stat. 2795, Administration’s Making Home payment of counseling costs for assisted 2798. Affordable Refinancing Program. The households an eligible use of AHP interim final rule also enhanced the subsidy under the set-aside refinancing B. The Banks’ Affordable Housing ability of the Banks to respond to the program where the costs have not been Program mortgage crisis by providing greater covered by another source, including Section 10(j) of the Federal Home flexibility to accelerate their future the counseling organization, a funding Loan Bank Act (Bank Act) requires each annual statutory AHP contributions for source, or the member. Bank to establish an affordable housing use in their AHP homeownership set- DATES: The final rule is effective on May program, the purpose of which is to aside programs in the current year, and 28, 2010. enable a Bank’s members to finance by permitting the Banks to adopt FOR FURTHER INFORMATION CONTACT: homeownership by households with multiple housing needs under their Nelson Hernandez, Senior Associate incomes at or below 80 percent of the Second District Priority scoring criterion Director, Housing Mission and Goals, area median income (AMI) (low- or under the AHP competitive application 202–408–2819, moderate-income households), and to program. [email protected]; Charles E. finance the purchase, construction or FHFA invited comments on the McLean, Jr., Associate Director, Housing rehabilitation of rental projects in which interim final rule and has taken all Mission and Goals, 202–408–2537, at least 20 percent of the units will be

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occupied by and affordable for restructuring to all 12 Banks. See 73 FR the mortgage market, FHFA determined households earning 50 percent or less of 20552 (Apr. 16, 2008). FHFB received that in order for the AHP set-aside AMI (very low-income households). See 36 comments on the proposal. refinancing program to be implemented 12 U.S.C. 1430(j)(1) and (2). The Bank Commenters who supported use of AHP successfully for the benefit of the Act requires each Bank to contribute 10 funds for refinancing recommended intended households, the scope of the percent of its previous year’s net flexibility in the rules governing use of program authority should be broadened earnings to its AHP annually, subject to the funds so that the Banks and their and the Banks should have greater a minimum annual combined members would be able to assist a flexibility in implementing the program. contribution by the 12 Banks of $100 greater number of borrowers in distress, Accordingly, on August 4, 2009, FHFA million. See 12 U.S.C. 1430(j)(5)(C). including allowing the use of AHP set- published an interim final rule (2009 Section 1218 of HERA amended section aside funds in conjunction with other interim final rule) that authorized the 10(j) by adding a new section 10(j)(2)(C) federal, state or local mortgage Banks to provide AHP direct subsidy to which requires FHFA to allow the refinancing programs. their members to assist in the Banks until July 30, 2010, to use AHP Before FHFB took final action on the refinancing of low- or moderate-income homeownership set-aside funds to proposed amendments to the AHP homeowners’ mortgage loans under refinance low- or moderate-income regulation, section 1218 of HERA added eligible targeted refinancing programs households’ first mortgage loans on section 10(j)(2)(C) to the Bank Act. Title through the use of AHP subsidy to their primary residences. See 12 U.S.C. IV of Division A of HERA also required reduce loan principal and pay closing 1430(j)(2)(C). The Director of FHFA establishment of the Hope for costs. See 74 FR 38514 (Aug. 4, 2009). must establish the percentage of set- Homeowners Program, a temporary By linking the use of the AHP subsidy aside funds eligible for this use by mortgage refinancing program under the with eligible targeted refinancing regulation. Federal Housing Administration (FHA), programs, including the Hope for The AHP regulation authorizes a which will expire on September 30, Homeowners Program and the Bank, in its discretion, to set aside a 2011. To implement the requirements of Administration’s Home Affordable portion of its annual required AHP section 1218 of HERA, on October 17, Refinance Program (HARP), FHFA contribution to establish 2008, FHFA published an interim final intended to leverage and enhance the homeownership set-aside programs for rule (2008 interim final rule), which effectiveness of each program, ensure the purpose of promoting added new § 1291.6(f) to the AHP that the full range of federal, state and homeownership for low- or moderate- homeownership set-aside regulation local government assistance to affected income households. See 12 CFR 1291.6. authorizing the Banks, in their homeowners was available quickly, and Under the homeownership set-aside discretion, to temporarily establish an provide the flexibility that the Banks programs, a Bank may provide AHP AHP set-aside refinancing program. See and their members need to make the direct subsidy (grants) to members to 73 FR 61660 (Oct. 17, 2008). AHP refinancing program successful. pay for down payment assistance, Specifically, § 1291.6(f) authorized the Five Banks are offering refinancing set- closing costs, and counseling costs in Banks to provide AHP direct subsidy to aside programs as authorized under the connection with a household’s purchase their members to assist in the 2009 interim final rule. of its primary residence, and for refinancing of low- or moderate-income FHFA received 11 comment letters on rehabilitation assistance in connection homeowners’ mortgage loans under the the 2009 interim final rule, representing with a household’s rehabilitation of an Hope for Homeowners Program through 12 commenters.1 Commenters included: owner-occupied residence. See 12 CFR the use of AHP subsidy to reduce loan seven Banks; one Bank Advisory 1291.6(c)(4). Currently, a Bank may principal and pay FHA-approved Council; and four trade associations. All allocate up to the greater of $4.5 million closing costs. By linking the use of the 12 commenters supported the expanded or 35 percent of its annual required AHP AHP subsidy with the Hope for use of AHP subsidies provided under contribution to homeownership set- Homeowners Program, FHFA intended the rule. All five Banks that are offering aside programs in that year. to leverage and enhance the refinancing set-aside programs effectiveness of each program, ensure C. AHP Refinancing Initiative, Proposed commented on the 2009 interim final that the full range of federal assistance Rule and October 2008 Interim Final rule. FHFA did not receive any to affected homeowners was available Rule comments that generally opposed the quickly, and provide the flexibility that rule. The Analysis of the Final Rule In January 2008, FHFB waived certain the Banks and their members need to section, below, discusses the comments homeownership set-aside program make the AHP refinancing program expressed on particular subjects. provisions of the AHP regulation to successful. allow the Federal Home Loan Bank of FHFA received 40 comments on the E. HERA Section 1201 San Francisco (San Francisco Bank) to 2008 interim final rule. Thirteen Section 1201 of HERA requires the establish a temporary pilot program to commenters generally supported the use FHFA Director to consider the provide AHP direct subsidy to enable of AHP subsidies for refinancing differences between the Banks and the eligible households with subprime or households with unaffordable Enterprises in rulemakings that affect nontraditional loans held by a San mortgages, but recommended a number the Banks with respect to the Banks’ Francisco Bank member or its affiliate to of changes to the rule. The other 27 cooperative ownership structure, refinance or restructure the loans into commenters opposed the use of AHP mission of providing liquidity to affordable, long-term fixed-rate subsidies for refinancing, citing the members, affordable housing and mortgages. See FHFB Resolution No. ongoing, critical need for AHP community development mission, 2008–01 (Jan. 15, 2008). The authority homeownership set-aside subsidies to capital structure and joint and several expired on December 31, 2009, without assist home purchases. liability. See 12 U.S.C. 4513(f). In funds being committed. D. August 2009 Interim Final Rule preparing the final rule, the Director In April 2008, FHFB published a considered these factors and determined proposed rule that would have extended Based on public comments received the temporary authority to use AHP set- on the 2008 interim final rule, and in 1 One letter represented the comments of both a aside funds for mortgage refinancing or light of continuing adverse conditions of Bank and that Bank’s Advisory Council.

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that the rule is appropriate, particularly with such private refinancing outside of are available for home purchase because the rule implements a statutory eligible targeted refinancing programs assistance is also consistent with provision of the Bank Act that applies for the reasons discussed in the 2009 HERA’s establishment of Federal only to the Banks. See 12 U.S.C. 1430(j). interim final rule. One commenter funding for the Neighborhood FHFA did not receive any comments on suggested that the authority should be Stabilization Program (NSP), which whether these factors should result in a expanded to assist other troubled loan provides funding to state and local revision of the rule as it relates to the restructuring and modification government programs for purchasing, Banks. initiatives; however, HERA authorizes rehabilitating and renting or selling AHP subsidies to be used for foreclosed properties. See HERA II. Analysis of the Final Rule refinancing only. This temporary sections 2301 through 2305. A number A. Definition of Eligible Targeted authority does not extend to use of the of state HFAs are using NSP and Refinancing Program: § 1291.1 subsidies to assist in restructuring or mortgage-revenue bond funds to assist The 2009 interim final rule provided modifying troubled loans without first-time homebuyers in purchasing that a household’s loan is eligible to be refinancing them into a new loan. these foreclosed properties. One commenter expressed concern refinanced with AHP direct subsidy if Three commenters specifically that the regulation does not permit a the loan is secured by a first mortgage supported applying the first-time Bank member to refinance its own on an owner-occupied unit that is the homebuyers allocation requirement to a mortgages that it has originated, even primary residence of the household, and Bank’s aggregate set-aside allocation, though it permits a member to refinance the loan is refinanced under an ‘‘eligible including allocations for both another member’s mortgages. The 2009 ’’ homeownership and set-aside targeted refinancing program. An interim final rule did not preclude a ‘‘ ’’ refinancing programs. No commenters eligible targeted refinancing program member from using AHP subsidy to is defined in § 1291.1 as a program opposed this provision. The final rule assist households that have mortgages in does not change this provision. offered by the Department of Housing the member’s portfolio to be refinanced and Urban Development (HUD), U.S. through an eligible targeted refinancing C. Acceleration of Future AHP Department of Agriculture (USDA), program. For example, a member that is Contributions: § 1291.2(b)(3) Fannie Mae, Freddie Mac, a state or a participating lender in a state HFA’s Under the Bank Act, a Bank must local government, or a state or local bond program that is an eligible targeted contribute at least 10 percent of its prior housing finance agency (HFA) for the refinancing program would be able to limited purpose of refinancing first originate a mortgage under that bond year’s net earnings to its current year’s mortgages on primary residences for program to refinance a mortgage in its AHP. See 12 U.S.C. 1430(j)(5)(C). The households that cannot afford or are at own portfolio. However, as discussed in 2009 interim final rule increased the risk of not being able to afford their the 2009 interim final rule, FHFA maximum amount that a Bank, in its monthly payments, as defined by the rejected using AHP subsidy to assist discretion, may reallot (i.e., accelerate) program, in order to prevent foreclosure. members that are privately refinancing from the subsequent year’s required This provision expanded the eligible loans, whether in their portfolios or not, annual AHP contribution for use in the targeted refinancing programs to include because of the regulatory, administrative current year, to the greater of $5 million these other eligible targeted refinancing and operational burdens of safeguarding or 20 percent of the Bank’s required programs, in addition to the Hope for the households and the AHP subsidies annual AHP contribution for the current Homeowners Program included in the in such transactions. year. See 12 CFR 1291.2(b)(3). As 2008 interim final rule. discussed in the 2009 interim final rule, Ten commenters specifically B. Funding Allocation: § 1291.2(b)(2)(i) this provision was intended to address supported expanding the refinance set- The AHP regulation permits a Bank, the fact that the Banks’ earnings aside eligibility to include these in its discretion, to set aside annually, potential in the near future is uncertain additional eligible targeted refinancing in the aggregate, a maximum of the and more unpredictable than in programs. No commenters opposed the greater of $4.5 million or 35 percent of previous years because of market expansion of the refinance set-aside its annual required AHP contribution to instability. The enhanced ability to authority to include these additional provide funds to members participating account for accelerated funds from eligible targeted refinancing programs, in homeownership set-aside programs, future required AHP contributions and no commenters addressed the including mortgage refinancing would facilitate the Banks making some definition of ‘‘eligible targeted programs established under § 1291.6(f). amount of AHP funding available in the refinancing program.’’ Three See 12 CFR 1291.2(b)(2)(i). The 2009 current year during the housing market commenters reiterated their comments interim final rule amended the 2008 and economic crisis even when they are on the 2008 interim final rule that FHFA interim final rule to require that at least uncertain about the amount of the should allow AHP subsidy to be used to one-third of a Bank’s aggregate annual subsequent year’s earnings. In addition, restructure or refinance mortgages set-aside allocation, including any set- because of the uncertainty of future originated by members and purchased aside allocation for a mortgage earnings and the possibility that a Bank by the Banks for their Mortgage refinancing program, be targeted for may find itself in the same situation of Partnership Finance and Mortgage first-time homebuyers. See id. As having little or no required AHP Purchase Program portfolios. One discussed in the 2009 interim final rule, contribution in the subsequent year, the commenter reiterated its previous in the current market where many 2009 interim final rule allowed a Bank comment on the 2008 interim final rule existing homeowners are unable to sell to credit the amount of the accelerated that members should also be able to use their homes and purchase move-up contribution against required AHP AHP subsidies to refinance loans in homes because their mortgages exceed contributions over one or more of the their portfolios with their own funds, their homes’ value, efforts to promote subsequent five years. Four commenters within guidelines to be set by the Bank. new home purchases could contribute specifically supported the amendments Like the 2008 and 2009 interim final to recovery and stabilization of the to the provision for accelerating future rules, the final rule does not authorize housing market. Ensuring that at least AHP contributions for use in the current the use of AHP subsidy in conjunction some portion of AHP set-aside subsidies year. No commenters opposed the

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amendments. This provision is Accordingly, the final rule retains the F. Eligible Uses of AHP Subsidy: unchanged in the final rule. AHP retention agreement requirement § 1291.6(f)(3) for the set-aside refinancing program. D. General AHP Refinancing Program 1. Reduction in Outstanding Loan Authority; Retention Agreements: E. Eligible Loans: § 1291.6(f)(2) Principal Balance § 1291.6(f)(1) The 2009 interim final rule permitted As discussed above, the 2009 interim use of the AHP subsidy to reduce the Section 1291.6(f)(1) authorizes a final rule amended § 1291.6(f)(2) to outstanding loan principal balance to Bank, in its discretion, to establish a permit the use of AHP subsidy to assist the eligible targeted refinancing homeownership set-aside program for households that need the subsidy in program’s maximum loan-to-value ratio the use of AHP direct subsidy by its order to refinance their mortgages under even if this results in the household members to assist in the refinancing of eligible targeted refinancing programs. having a mortgage debt-to-income ratio a household’s mortgage loan that meets To be eligible for AHP refinancing below the program’s maximum the requirements in § 1291.6, except for assistance, a household must meet the mortgage debt-to-income ratio. The certain specified provisions, as well as terms of refinancing established by the maximum amount of AHP subsidy that with the requirements of part 1291. The eligible targeted refinancing program, may be provided for the refinancing is 2009 interim final rule required that a such as the mortgage debt-to-income the least amount that results in the loan household assisted under the AHP set- ratio, loan-to-value ratio, payment meeting both the program’s maximum aside refinancing program be subject to history, type of original loan (e.g., loan-to-value ratio and maximum an AHP five-year retention agreement in subprime or nontraditional), and mortgage debt-to-income ratio. See 12 accordance with § 1291.6(c)(5). As reasons for delinquency.2 The CFR 1291.6(f)(3). The 2009 interim final discussed in the 2009 interim final rule, requirements and standards of the other rule also made a technical change to under the Banks’ current AHP eligible targeted refinancing programs clarify that the applicable program competitive application and home underwriting debt-to-income ratio is the purchase set-aside programs, AHP included in the 2009 interim final rule protect borrowers and the integrity of mortgage debt-to-income ratio. Three retention agreements, which may be commenters specifically supported the the AHP. Three commenters specifically subordinate liens or other forms of amendment, which is unchanged in the supported this approach, which is legally enforceable agreements, are used final rule. in conjunction with all types of unchanged in the final rule. mortgage financing provided by all Section 1291.6(c)(2)(i) of the existing 2. Loan Closing Costs federal, state and local agencies, AHP regulation requires a Bank or To maintain consistency with the including other FHA programs. Because member to determine a household’s AHP home purchase set-aside program, the AHP regulation requires that AHP income eligibility at the time the the 2009 interim final rule removed subsidy be repaid only from any net member enrolls the household in the language in the 2008 interim final rule gain from the sale or refinancing of the AHP homeownership set-aside program. that restricted eligible closing costs home, the AHP repayment requirement Consistent with this requirement, the under the set-aside refinancing program should not interfere with any 2009 interim final rule provided that the to FHA-approved closing costs. Two appreciation or equity sharing Bank or member must determine that commenters specifically supported this requirements of the eligible targeted the household is at or below 80 percent change, and no commenters opposed it. The provision is unchanged in the final refinancing programs. Requiring AHP of AMI at the time of enrollment in the rule. retention agreements for the AHP set- AHP set-aside refinancing program. In aside refinancing program also In addition, to maintain consistency addition, consistent with the AHP with the AHP home purchase set-aside maintains consistency between the homeownership set-aside and refinancing program and all other AHP program, the 2009 interim final rule competitive application programs, the made applicable to the set-aside programs, which are subject to the 2009 interim final rule did not establish retention agreement requirement. refinancing program the current specific requirements for how a Bank requirement of the AHP home purchase Six commenters specifically should calculate a household’s income. set-aside program that the rate of supported the requirement for AHP Thus, a Bank may make its own interest, points, fees and any other retention agreements under the AHP set- calculation of total household income, charges for all loans made in aside refinancing program. One or may use the eligible targeted conjunction with the AHP subsidy commenter opposed the retention refinancing program’s calculation of cannot exceed a reasonable market rate agreement requirement for the AHP set- total household income. In this way, a of interest, points, fees and other aside refinancing program because the Bank or member may rely on the total charges for loans of similar maturity, retention agreement, which also applies household income provided by the terms and risk. See 12 CFR 1291.6(c)(7). to the AHP homeownership set-aside eligible targeted refinancing program FHFA received no comments and competitive application programs, regardless of when that program specifically addressing this provision, allows a household, under certain calculated the amount. which is unchanged in the final rule. circumstances, to subsequently refinance and take out equity without Four commenters specifically 3. Counseling Costs repaying the AHP subsidy. FHFA does supported the provisions on calculation The final rule includes a new not see a reason to treat households of household income, and no provision that makes the payment of obtaining AHP assistance under the set- commenters opposed them. The final counseling costs for assisted households aside refinancing program differently rule does not change these provisions. an eligible use of AHP subsidy under from households obtaining AHP the set-aside refinancing program. In assistance under the homeownership 2 In addition, pursuant to HERA, the household requiring counseling under the National must have an income at or below 80 percent of set-aside or competitive application AMI, and the household’s loan being refinanced Foreclosure Mitigation Counseling programs with respect to the retention must be a first mortgage on an owner-occupied unit (NFMC) program, the 2009 interim final agreement requirements. that is the household’s primary residence. rule did not also authorize the use of

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AHP subsidies to pay for these The 2009 interim final rule also whether the households were eligible to counseling costs because counseling removed the requirement in the 2008 have their loans refinanced through an under the NFMC program is free to the interim final rule that a Bank must eligible targeted refinancing program households and, therefore, AHP subsidy consult with its Advisory Council before before the member would enroll the is not needed to pay for the counseling. determining that a household may use households in the AHP refinancing set- However, NFMC counselors may charge a lender other than a member of the aside program and commit AHP a household for the cost of obtaining its Bank. In addition, § 1291.6(f)(4) of the subsidy. credit report from a third party. Because 2009 interim final rule permitted the Much of the NFMC counseling is one- the household’s credit report is an Banks the discretionary authority to on-one, during which a counselor can integral part of foreclosure mitigation require a household to obtain its determine if a household’s loan can be counseling and qualification of the refinancing loan through a member refinanced by one of the eligible household for an eligible targeted participating as a lender in the eligible targeted refinancing programs and refinancing program, the cost of the targeted refinancing program that is whether AHP subsidy will be needed in credit report would be an eligible providing the new mortgage to the order for the household to obtain the counseling cost under the AHP. In household.3 Three commenters refinancing. A primary purpose of the addition, it is possible that other specifically supported these changes, 2009 interim final rule amendment was counseling services used by state and and no commenters opposed them. to ensure that the household receives local governments or HFAs for their These changes are retained in the final counseling on a variety of available eligible targeted refinancing programs, rule. refinancing options that are suitable for as authorized by this regulation, may that household. For example, a lender, H. Household Counseling: § 1291.6(f)(5) charge the households for counseling. such as an FHA lender or Fannie Mae/ Consequently, in order to accommodate Section 1291.6(f)(5) of the 2009 Freddie Mac seller/servicer, may be able such cases, the final rule permits the use interim final rule required that, prior to to determine if a household is eligible of AHP subsidy to pay for such enrollment in an AHP set-aside for refinancing under HARP, but is not counseling costs. This provision is also refinancing program, a household likely to know if the household has consistent with similar authorization seeking AHP assistance must obtain other options if it is not eligible for under the AHP home purchase set-aside counseling for foreclosure mitigation HARP. Even if the household could not and competitive application programs. which would include whether the qualify for an eligible targeted Accordingly, § 1291.6(f)(3)(iii) of the household qualifies for refinancing by refinancing program or would not be final rule permits the use of AHP an eligible targeted refinancing program, eligible for AHP assistance, the NFMC subsidy to pay for counseling costs to through the NFMC program or other program participant would be able to the household under the refinancing set- counseling program used by a state or review the household’s individual aside program where the costs are local government or HFA.4 By using the circumstances and identify other incurred in connection with counseling counseling requirement as a gateway, refinancing options that could assist the of homeowners that actually refinance Bank members would be able to manage household. Consequently, under the their homes with AHP assistance under enrollments and commitments of AHP 2009 interim final rule, when a the AHP set-aside refinancing program, subsidies to households that would be household contacts a member directly, and the cost of the counseling has not able to use the subsidies. Households the member would refer the household been covered by another source, determined by a counseling to the NFMC program participant or including the counseling organization, a organization to qualify for refinancing other state or local government or HFA funding source, or the member. under an eligible targeted refinancing counseling program participant, to program would then be referred to determine the household’s eligibility for G. Eligible Lender Participants: participating Bank members, who refinancing. § 1291.6(f)(4) would enroll the households in the AHP In the 2009 interim final rule, FHFA The 2009 interim final rule permitted set-aside refinancing program upon specifically requested comment on any member, rather than only members determination of their AHP income whether a household should be required that are FHA-approved lenders, to eligibility at the time of enrollment. If to obtain counseling for foreclosure obtain AHP direct subsidy for the households contacted a Bank member mitigation including counseling on purpose of refinancing an eligible loan. directly, the member would refer the whether the household qualifies for As discussed in the 2009 interim final households to an NFMC program refinancing by an eligible targeted rule, relatively few Bank members are participant, or to a state or local refinancing program, prior to enrollment FHA-approved lenders and many Bank government or HFA counseling in the AHP set-aside refinancing members participate in HFA mortgage- program, which would determine program. Six commenters specifically revenue bond programs and are Fannie supported the counseling requirement, Mae- and Freddie Mac-approved sellers/ 3 Requiring a household to obtain a new mortgage but three of these commenters expressed servicers. AHP assistance should be through the member is one of several types of concern about the requirement that the available to households based on their optional household eligibility requirements that a household obtain the counseling and a qualifications, regardless of whether the Bank may establish under the AHP home purchase set-aside program. See 12 CFR 1291.6(c)(2)(iii). determination of whether the household member providing the AHP subsidy is 4 The 2008 Consolidated Appropriations Bill can qualify for an eligible targeted FHA-approved. In addition, requiring established and funded the NFMC program to assist refinancing program prior to being members to be FHA-approved is too households seeking refinancing or restructuring of enrolled by a member in the AHP set- restrictive since the rule permits the use their mortgages in order to avoid foreclosure. See aside refinancing program. One of these Public Law No. 110–161. The NFMC program, of the AHP subsidy with other eligible under the auspices of the Congressionally chartered commenters recommended that targeted refinancing programs in NeighborWorks America, comprises an array of counseling be required prior to the addition to FHA’s Hope for counseling groups including NeighborWorks’ transfer of AHP subsidies committed to Homeowners Program. One commenter partner organizations, the Homeownership the household, rather than prior to Preservation Foundation, HUD’s HOPE NOW specifically supported this change, and counseling coalition, the National Urban League, enrollment. Two of the commenters also no commenters were opposed. The final USA Cares (military assistance), and state and local expressed concerns about access to in- rule does not change this provision. housing finance agency counseling programs. person counseling for rural households.

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One commenter recommended that qualify under an eligible targeted open the possibility of an extension, and rural households or households with refinancing program’s eligibility and one supported an extension to limited access to counseling be referred underwriting requirements if it had December 31, 2010. by members directly to eligible targeted AHP or other subsidy assistance. The final rule retains the sunset date refinancing programs for eligibility Nevertheless, FHFA recognizes that of July 30, 2010 in § 1291.6(f)(6). determinations until such counseling members may be prepared to accept the However, the final rule makes two can be made available to the household. responsibility of working with changes in order to accommodate The 2009 interim final rule did not individual households to identify operational procedures. First, under the require in-person counseling because available alternative eligible targeted homeownership set-aside program, the NFMC program provides one-on-one refinancing programs and their Banks may commit available AHP counseling, often by telephone through respective eligibility and underwriting subsidies in one of two ways. Some a toll-free number accessible to rural requirements, and to go through the Banks commit AHP subsidies under households, which FHFA deemed to be process of calculating whether AHP their set-aside programs on an sufficient in lieu of in-person subsidy assistance would allow the individual household basis as each counseling. households to qualify for one of these household is enrolled by a member. One commenter opposed the eligible targeted refinancing programs. Other Banks operate their requirement that a household obtain the Consequently, § 1291.6(f)(5)(ii) of the homeownership set-aside programs counseling and determination of final rule permits a Bank, in its using a model in which the Bank discretion, to allow its members to refer commits AHP subsidies on a member- whether the household qualifies for an potential household applicants for AHP basis, with the Bank committing a eligible targeted refinancing program assistance directly to an eligible targeted specified amount of AHP subsidies to an through the NFMC program. This refinancing program for a determination individual member which that member commenter supported allowing Bank on the households’ eligibility for then uses to commit to individual members to provide the counseling to refinancing under that program, or to households as the member enrolls them. determine if a household could qualify allow its members to determine, prior to The final rule amends § 1291.6(f)(6) to for refinancing under an eligible counseling, whether household recognize both operational models for targeted refinancing program. In applicants for AHP assistance could set-aside commitments by providing establishing the counseling requirement qualify, in conjunction with AHP that a Bank may commit AHP subsidy in the 2009 interim final rule, FHFA subsidy, for refinancing under available to members or households under its was concerned that it would be eligible targeted refinancing programs. AHP set-aside refinancing program until administratively unworkable for At the same time, the final rule July 30, 2010. members to enroll, and commit AHP continues to require that the household Second, in light of the amendment subsidy to, any number of households obtain foreclosure mitigation counseling permitting Banks to commit AHP seeking assistance from the AHP set- through an NFMC program or other subsidies to specific members up until aside refinancing program without counseling program used by a state or the sunset date and in order to knowing whether such households local government or HFA. Nevertheless, accommodate amendments in the final could obtain refinancing through an the final rule permits a Bank, in its rule that allow the Banks more eligible targeted refinancing program. discretion, to allow members to enroll flexibility in permitting their members FHFA also recognized that the AHP set- households in the AHP set-aside to enroll, and commit AHP subsidies to, aside refinancing program is designed to refinancing program prior to counseling. households prior to counseling, or to assist households that could not In all cases, the household must obtain determine whether households could otherwise qualify for an eligible targeted the counseling prior to disbursement of qualify for an eligible targeted refinancing program on their own the AHP subsidy on behalf of the refinancing program, the final rule without some amount of AHP subsidy. household. extends the date by which households The nature of the AHP set-aside must have submitted applications for refinancing program, where AHP I. Sunset Date: § 1291.6(f)(6) refinancing to an eligible targeted subsidy would be used for principal The 2009 interim final rule provided refinancing program from July 30, 2010 reduction, is such that a household that the Banks’ authority to commit to December 31, 2010. The final rule needing AHP subsidy cannot qualify for AHP subsidy for refinancing terminates also clarifies that a member may use refinancing under an eligible targeted after July 30, 2010, which is the committed subsidy for a loan submitted refinancing program without the AHP expiration date of the two-year period in to an eligible targeted refinancing subsidy. Consequently, where a section 1218 of HERA. FHFA further program prior to December 31, 2010, household is seeking refinancing stated that it may consider an extension that is approved subsequent to eligibility information directly from an of the sunset date in the future should December 31, 2010. eligible targeted refinancing program, a program experience appear to justify representative of that eligible targeted such an extension. J. Competitive Application Program— refinancing program, if unaware of the Three commenters supported an Second District Priority Scoring potential assistance of the AHP extension of the sunset date, with one Criterion: § 1291.5(d)(5)(vii) refinancing set-aside program, would commenter suggesting September 30, The 2009 interim final rule amended likely tell the household that it does not 2011 to coincide with the sunset date § 1291.5(d)(5)(vii) of the AHP regulation qualify for refinancing under that for the Hope for Homeowners Program to permit a Bank to establish one or program, thereby ending the (see HERA, section 1402(a) (National more housing needs in the Bank’s household’s efforts to refinance. An Housing Act sec. 257(r))), one district under the Second District NFMC program counselor would be commenter suggesting at least December Priority scoring criterion, which is used aware of the availability of the AHP set- 31, 2010, and one commenter suggesting in scoring applications under the AHP aside refinancing program and have the no specific date. Of the five Banks that competitive application program. The capacity to sit down with an individual are offering a refinancing set-aside amendment was intended primarily to household to determine whether and program, two did not address the sunset provide more flexibility in the Banks’ how the household would be able to date, two supported FHFA’s leaving capacity to respond to the current

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housing crisis by allowing the AHP review under the Paperwork Reduction including the counseling organization, a competitive application program to Act of 1995. See 44 U.S.C. 3501 et seq. funding source, or the member. complement the efforts of the AHP set- V. Regulatory Flexibility Act * * * * * aside refinancing program and other targeted refinancing programs for Because no notice of proposed (5) Counseling.—(i) Except as foreclosure prevention and HERA’s NSP rulemaking is required for this final provided in paragraph (f)(5)(ii) of this for the disposition of foreclosed rule, the provisions of the Regulatory section, prior to enrollment in an AHP properties. FHFA specifically requested Flexibility Act do not apply. See 5 set-aside refinancing program comments on whether this scoring U.S.C. 601(2) and 603(a). Moreover, the established under this paragraph (f), a change benefits the AHP competitive final rule applies only to the Banks, household must obtain counseling application program. which do not come within the meaning through the National Foreclosure Eight commenters specifically of ‘‘small entities,’’ as defined in the Mitigation Counseling program or other supported this amendment, citing the Regulatory Flexibility Act. See id. sec. counseling program used by a state or importance of the additional flexibility 601(6). local government or housing finance for the Banks to use their competitive List of Subjects in 12 CFR Part 1291 agency, for foreclosure mitigation application programs to address a including counseling on whether the variety of housing needs in their Community development, Credit, household qualifies, in conjunction respective districts. FHFA received no Federal home loan banks, Housing, with AHP subsidy, for refinancing Reporting and recordkeeping comments opposing this amendment, under an eligible targeted refinancing requirements. which is unchanged in the final rule. program. ■ For the reasons stated in the preamble, III. Effective Date the Interim Final Rule amending 12 CFR (ii) Optional requirements. A Bank, in its discretion, may permit its members, Pursuant to the Administrative part 1291, published at 74 FR 38514 prior to such counseling, to take any of Procedures Act, FHFA for good cause (Aug. 4, 2009), is adopted as final with finds that the effective date of the final the following changes: the following actions in paragraphs rule should not be delayed for 30 days (f)(5)(ii)(A) through (C) of this section, and that the final rule should become PART 1291—FEDERAL HOME LOAN provided that, in all cases, the effective on May 28, 2010. See 5 U.S.C. BANKS’ AFFORDABLE HOUSING household obtains such counseling 553(d)(3). Section 1218 of HERA PROGRAM prior to disbursement of the AHP requires that FHFA’s regulations ■ 1. The authority citation for part 1291 subsidy on behalf of the household: authorize the use of AHP set-aside continues to read as follows: (A) Enroll households in the AHP set- subsidy for mortgage refinancing for a Authority: 12 U.S.C. 1430(j). aside refinancing program; two-year period commencing on July 30, (B) Refer households directly to an 2008, with a resulting sunset date of § 1291.2 [Amended] eligible targeted refinancing program to July 30, 2010. The final rule retains the ■ 2. Amend § 1291.2(b)(2)(i) by determine eligibility for refinancing substance of FHFA’s August 4, 2009 removing the phrase ‘‘paragraph (f) of interim final rule currently in effect, under the eligible targeted refinancing this section,’’ and adding in its place program; or while amending the regulation to allow ‘‘§ 1291.6(f),’’. the Banks to make administrative (C) Determine whether a household ■ changes to the AHP set-aside 3. Revise § 1291.6(f)(3), (f)(5), and could qualify, in conjunction with AHP refinancing program designed to (f)(6) to read as follows: subsidy, for refinancing under an facilitate household participation in the § 1291.6 Homeownership set-aside eligible targeted refinancing program. program. Making the final rule effective programs. (6) Sunset.—(i) This paragraph (f) immediately will enable the Banks to * * * * * shall expire on July 30, 2010. expedite implementation of these (f) * * * (ii) A Bank may commit AHP subsidy program administrative changes. A 30- (3) Eligible uses of AHP direct to members or households under its day delayed effective date could subsidy. Members may provide the AHP adversely impact households who, as a direct subsidy to: AHP set-aside refinancing program until result of the flexibility of the program (i) Reduce the outstanding principal July 30, 2010. administrative changes, could have balance of the loan by no more than the (iii) A member may use the AHP received the AHP subsidy commitment amount necessary for the new loan to subsidy committed by a Bank pursuant needed to qualify for an eligible targeted qualify under both the maximum loan- to paragraph (f)(6)(ii) of this section for refinancing program or closed on their to-value ratio and the maximum a loan submitted to an eligible targeted refinancing mortgage during the 30-day household mortgage debt-to-income refinancing program on or before period. ratio required by the eligible targeted December 31, 2010 that is subsequently IV. Paperwork Reduction Act refinancing program; approved for refinancing under such (ii) Pay loan closing costs; or program. The final rule does not substantively (iii) Pay for counseling costs only or materially modify the approved where: Dated: May 21, 2010. information collection entitled (A) Such costs, including the cost of Edward J. DeMarco, ‘‘Affordable Housing Program (AHP),’’ the homeowner’s credit report, are Acting Director, Federal Housing Finance which is assigned control number 2590– incurred in connection with counseling Agency. 0007 by the Office of Management and of homeowners that actually refinance [FR Doc. 2010–12793 Filed 5–27–10; 8:45 am] Budget (OMB). See http://www.fhfa.gov/ their homes with AHP assistance under BILLING CODE 8070–01–P webfiles/13095/ the AHP set-aside refinancing program; AHP_Data_Reporting_Instructions.pdf. and Consequently, FHFA has not (B) The cost of the counseling has not submitted any information to OMB for been covered by another source

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DEPARTMENT OF COMMERCE Security, Regulatory Policy Division, 744 (Procedures for End-User Review 14th St. & Pennsylvania Avenue, NW., Committee Entity List Decisions). Bureau of Industry and Security Room 2705, Washington, DC 20230, As of January 1, 2009, entities on the Attn: RIN 0694–AE88. Send comments Entity List were listed under one or 15 CFR Part 744 regarding the collection of information more of eighteen different destinations. [Docket No. 100311137–0138–01] associated with this rule, including The changes from the 2009 annual suggestions for reducing the burden, to review of the Entity List that were RIN 0694–AE88 Jasmeet K. Seehra, Office of approved by the ERC will be Management and Budget (OMB), by e- implemented in two rules. The first rule Implementation of Changes from the mail to published today implements the results 2009 Annual Review of the Entity List [email protected], or by of the annual review for listed entities AGENCY: Bureau of Industry and fax to (202) 395–7285; and to the under eleven destinations on the Entity Security, Commerce. Regulatory Policy Division, Bureau of List: Canada, Egypt, Germany, Hong ACTION: Final Rule. Industry and Security, Department of Kong, Israel, Kuwait, Lebanon, Commerce, 14th St. & Pennsylvania Malaysia, South Korea, Singapore, and SUMMARY: This rule amends the Export Avenue, NW., Room 2705, Washington, the United Kingdom. The second rule Administration Regulations (EAR) to DC 20230. Comments on this collection will implement the results of the annual implement changes to the Entity List of information should be submitted review for entities listed under the (Supplement No. 4 to Part 744) on the separately from comments on the final remaining seven destinations: China, basis of the 2009 annual review of the rule (i.e., RIN 0694–AE88)—all India, Iran, Pakistan, Russia, Syria, and Entity List conducted by the End-User comments on the latter should be the United Arab Emirates. Entities listed Review Committee. The changes from submitted by one of the three methods under the destinations of Armenia, the annual review will be implemented outlined above. Ireland or Taiwan were not included in in two rules. The first rule published FOR FURTHER INFORMATION CONTACT: the 2009 annual review because they today implements the results of the Susan Kramer, Acting Chairman, End- were added to the Entity List in 2009 or annual review for listed entities under User Review Committee, Office of the 2010. eleven destinations on the Entity List: Assistant Secretary, Export ERC Entity List Decisions Canada, Egypt, Germany, Hong Kong, Administration, Bureau of Industry and This rule removes one entity from the Israel, Kuwait, Lebanon, Malaysia, Security, Department of Commerce, Entity List under Hong Kong. This rule South Korea, Singapore, and the United Phone: (202) 482–0117, Fax: (202) 482– also makes two modifications to the Kingdom. 4145, E-mail: [email protected]. The second rule will implement the Entity List: by making a correction to SUPPLEMENTARY INFORMATION: results of the annual review for entities the address of one entity listed under listed under the remaining seven Background Egypt, and by making a clarification to destinations that were included in the the license requirement for one entity The Entity List provides notice to the listed under Israel. On the basis of the 2009 annual review: China, India, Iran, public that certain exports, reexports, Pakistan, Russia, Syria, and the United 2009 annual review, no additional and transfers (in-country) to entities changes will be made to listed entities Arab Emirates. Entities listed under the identified on the Entity List require a destinations of Armenia, Ireland or under the following eight destinations: license from the Bureau of Industry and Canada, Germany, Kuwait, Lebanon, Taiwan were not included in the 2009 Security (BIS) and that availability of annual review because they were added Malaysia, South Korea, Singapore, and license exceptions in such transactions the United Kingdom. to the Entity List in 2009 or 2010. is limited. Entities are placed on the The Entity List provides notice to the Entity List on the basis of certain Removal From the Entity List public that certain exports, reexports, sections of part 744 (Control Policy: and transfers (in-country) to entities The entity being removed from the End-User and End-Use Based) of the identified on the Entity List require a Entity List is located in Hong Kong: EAR. license from the Bureau of Industry and The End-User Review Committee Hong Kong Security and that availability of license (ERC), composed of representatives of (1) Speedy Electronics Ltd., 1206–7, exceptions in such transactions is the Departments of Commerce (Chair), 12/F New Victory House, Hong Kong. limited. State, Defense, Energy and, where The removal of Speedy Electronics DATES: Effective Date: This rule is appropriate, the Treasury, makes all Ltd. from the Entity List (from Hong effective May 28, 2010. Although there decisions to make additions to, Kong, as described above) eliminates the is no formal comment period, public removals from and other changes to the existing license requirement in comments on this regulation are Entity List. The ERC makes all decisions Supplement No. 4 to part 744 for welcome on a continuing basis. to add an entry to the Entity List by exports, reexports and transfers (in- ADDRESSES: You may submit comments, majority vote and all decisions to country) to this entity. However, the identified by RIN 0694–AE88, by any of remove or modify an entry by removal of Speedy Electronics Ltd. from the following methods: unanimous vote. the Entity List does not relieve persons E-mail: [email protected] of other obligations under part 744 of 2009 Annual Review of the Entity List Include ‘‘RIN 0694–AE88’’ in the subject the EAR or under other parts of the line of the message. This rule amends the Export EAR. Neither the removal of an entity Fax: (202) 482–3355. Please alert the Administration Regulations (EAR) to from the Entity List nor the removal of Regulatory Policy Division, by calling implement changes to the Entity List Entity List-based license requirements (202) 482–2440, if you are faxing (Supplement No. 4 to part 744) on the relieves persons of their obligations comments. basis of the 2009 annual review of the under General Prohibition 5 in Mail or Hand Delivery/Courier: Entity List conducted by the ERC, in § 736.2(b)(5) of the EAR which provides Timothy Mooney, U.S. Department of accordance with the procedures that, ‘‘you may not, without a license, Commerce, Bureau of Industry and outlined in Supplement No. 5 to part knowingly export or reexport any item

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subject to the EAR to an end-user or A BIS license is required for the Miscellaneous and recordkeeping end-use that is prohibited by part 744 of export, reexport or transfer (in-country) activities account for 12 minutes per the EAR.’’ Nor do such removals relieve of any computers above the Tier 3 level submission. Total burden hours persons of their obligation to apply for described in Section 740.7(d) (i.e., Tier associated with the Paperwork export, reexport or in-country transfer 3 under APP) subject to the EAR to Ben Reduction Act and Office and licenses required by other provisions of Gurion University, including any Management and Budget control the EAR. BIS strongly urges the use of transaction in which this listed entity number 0694–0088 are expected to Supplement No. 3 to part 732 of the will act as purchaser, intermediate increase slightly as a result of this rule. EAR, ‘‘BIS’s ‘Know Your Customer’ consignee, ultimate consignee, or end- 3. This rule does not contain policies Guidance and Red Flags,’’ when persons user of the items. This listing of this with Federalism implications as that are involved in transactions that are entity also prohibits the use of license term is defined in Executive Order subject to the EAR. exceptions (see part 740 of the EAR) for 13132. exports, reexports and transfers (in- 4. The provisions of the Modifications to the Entity List country) of these types of computers Administrative Procedure Act (5 U.S.C. (1) This rule amends one Egyptian subject to the EAR involving this entity. 553) requiring notice of proposed entry currently on the Entity List by Savings Clause rulemaking, the opportunity for public adding an additional address for the participation, and a delay in effective entity listed, as follows: Shipments of items removed from date, are inapplicable because this eligibility for a License Exception or regulation involves a military or foreign Egypt export or reexport without a license affairs function of the United States. H Logic, Behind 14 Mahmoud Sedky (NLR) as a result of this regulatory (See 5 U.S.C. 553(a)(1)). Further, no St., El Ekbal, Alexandria, Egypt; and 11 action that were on dock for loading, on other law requires that a notice of Abd El-Hamid Shoman St., Nasser City, lighter, laden aboard an exporting or proposed rulemaking and an Cairo. reexporting carrier, or en route aboard a opportunity for public comment be carrier to a port of export or reexport, on A BIS license is required for the given for this rule. Because a notice of May 28, 2010 pursuant to actual orders export, reexport or transfer (in-country) proposed rulemaking and an for export or reexport to a foreign of any item subject to the EAR to H opportunity for public comment are not destination, may proceed to that Logic, including any transaction in required to be given for this rule by 5 destination under the previous which this listed entity will act as U.S.C. 553, or by any other law, the eligibility for a License Exception or purchaser, intermediate consignee, analytical requirements of the export or reexport without a license ultimate consignee, or end-user of the Regulatory Flexibility Act, 5 U.S.C. 601 (NLR) so long as they are exported or items. This listing of this entity also et. seq., are not applicable. reexported before June 28, 2010. Any prohibits the use of license exceptions such items not actually exported or List of Subjects in 15 CFR Part 744 (see part 740 of the EAR) for exports, reexported before midnight, on June 28, reexports and transfers (in-country) of Exports, Reporting and recordkeeping 2010, require a license in accordance items subject to the EAR involving this requirements, Terrorism. with this rule. entity. Although the Export Administration ■ Accordingly, part 744 of the Export (2) Finally, this rule amends one Act expired on August 20, 2001, the Administration Regulations (15 CFR Israeli entry currently on the Entity List President, through Executive Order parts 730–774) is amended as follows: (i.e., Ben Gurion University) by revising 13222 of August 17, 2001, 3 CFR, 2001 the license requirement for the entity Comp., p. 783 (2002), as extended by the PART 744—[AMENDED] listed. This change was needed because Notice of August 13, 2009, 74 FR 41325 ■ the license requirement for this listed 1. The authority citation for 15 CFR (August 14, 2009), has continued the part 744 continues to read as follows: entity prior to publication of this rule Export Administration Regulations in was based on a section of the EAR that effect under the International Authority: 50 U.S.C. app. 2401 et seq.; 50 U.S.C. 1701 et seq.; 22 U.S.C. 3201 et seq.; is no longer in the EAR (i.e., Section Emergency Economic Powers Act. 742.12 (High Performance Computers)). 42 U.S.C. 2139a; 22 U.S.C. 7201 et seq.; 22 This section of the EAR was removed Rulemaking Requirements U.S.C. 7210; E.O. 12058, 43 FR 20947, 3 CFR, 1978 Comp., p. 179; E.O. 12851, 58 FR 33181, and reserved on April 24, 2006 (71 FR 1. This rule has been determined to be 3 CFR, 1993 Comp., p. 608; E.O. 12938, 59 20876). To conform to the April 2006 not significant for purposes of Executive FR 59099, 3 CFR, 1994 Comp., p. 950; E.O. change and to clarify the Entity List Order 12866. 12947, 60 FR 5079, 3 CFR, 1995 Comp., p. based license requirement for this listed 2. Notwithstanding any other 356; E.O. 13026, 61 FR 58767, 3 CFR, 1996 entity, this rule is revising the license provision of law, no person is required Comp., p. 228; E.O. 13099, 63 FR 45167, 3 requirement to indicate the license to respond to nor be subject to a penalty CFR, 1998 Comp., p. 208; E.O. 13222, 66 FR requirement applies to computers above for failure to comply with a collection 44025, 3 CFR, 2001 Comp., p. 783; E.O. the Tier 3 level described in Section of information, subject to the 13224, 66 FR 49079, 3 CFR, 2001 Comp., p. 740.7(d) of License APP (Computers). requirements of the Paperwork 786; Notice of August 13, 2009, 74 FR 41325 (August 14, 2009); Notice of November 6, The entity column and the revision to Reduction Act of 1995 (44 U.S.C. 3501 2009, 74 FR 58187 (November 10, 2009). the license requirement column for this et. seq.) (PRA), unless that collection of listed entity is, as follows: information displays a currently valid ■ 2. Supplement No. 4 to part 744 is Office of Management and Budget amended: Israel (OMB) Control Number. This regulation ■ a. By removing under Hong Kong, one Ben Gurion University, Israel. involves collections previously Hong Kong entity ‘‘Speedy Electronics approved by the OMB under control Ltd., 1206–7, 12/F New Victory House, License Requirement numbers 0694–0088, ‘‘Multi-Purpose Hong Kong’’; For computers above the Tier 3 level Application,’’ which carries a burden ■ b. By revising under Egypt, in described in Section 740.7(d) (i.e., Tier hour estimate of 58 minutes to prepare alphabetical order, one Egyptian entity; 3 under APP). and submit form BIS–748. and

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■ c. By revising under Israel, in The revisions read as follows: alphabetical order, one Israeli entity;

SUPPLEMENT NO. 4 TO PART 744—ENTITY LIST

Country Entity License requirement License review policy Federal Register citation

******* EGYPT ...... H Logic, Behind 14 For all items subject to the Presumption of denial ...... 73 FR 54504, 9/22/08. 75 FR Mahmoud Sedky St., El EAR. (See § 744.11 of the [Insert FR page number Ekbal, Alexandria, Egypt; EAR). and 5/28/10. and 11 Abd El-Hamid Shoman St., Nasser City, Cairo.

******* ISRAEL ...... Ben Gurion University, Israel For computers above the Case-by-case basis ...... 62 FR 4910, 2/3/97 65 FR Tier 3 level described in 12919, 03/10/00. 75 FR Section 740.7(d) (i.e., Tier [Insert FR page number 3 under APP).. and 5/28/10.

******

Dated: May 21, 2010. 0307 and are available online by going immediate action is needed to ensure Kevin J. Wolf, to http://www.regulations.gov, inserting the public’s safety during the 34th Assistant Secretary for Export USCG–2010–0307 in the ‘‘Keyword’’ Annual Norfolk Harborfest Celebration. Administration. box, and then clicking ‘‘Search.’’ They Under 5 U.S.C. 553(d)(3), the Coast [FR Doc. 2010–12956 Filed 5–27–10; 8:45 am] are also available for inspection or Guard finds that good cause exists for BILLING CODE 3510–33–P copying at the Docket Management making this rule effective less than 30 Facility (M–30), U.S. Department of days after publication in the Federal Transportation, West Building Ground Register. Delaying the effective date DEPARTMENT OF HOMELAND Floor, Room W12–140, 1200 New Jersey would be contrary to the public interest SECURITY Avenue, SE., Washington, DC 20590, since immediate action is needed to between 9 a.m. and 5 p.m., Monday ensure the public’s safety during 34th Coast Guard through Friday, except Federal holidays. Annual Norfolk Harborfest Celebration. FOR FURTHER INFORMATION CONTACT: If Basis and Purpose 33 CFR Part 100 you have questions on this temporary rule, call or e-mail LT Tiffany Duffy, Marine events are frequently held on [Docket No. USCG–2010–0307] Project Manager, Sector Hampton the navigable waters within the RIN 1625–AA08 Roads, Waterways Management boundary of the Fifth Coast Guard Division, Coast Guard; telephone 757– District. The on water activities that Special Local Regulation for Marine 668–5580, email typically comprise marine events Events; Temporary Change of Dates [email protected]. If you have include sailing regattas, power boat for Recurring Marine Events in the questions on viewing or submitting races, swim races and holiday boat Fifth Coast Guard District material to the docket, call Renee V. parades. For a description of the Wright, Program Manager, Docket geographical area of each Coast Guard AGENCY: Coast Guard, DHS. Operations, telephone 202–366–9826. Sector—Captain of the Port Zone, please ACTION: Temporary final rule. SUPPLEMENTARY INFORMATION: see 33 CFR 3.25. This regulation temporarily changes SUMMARY: The Coast Guard will Regulatory Information the enforcement period of special local temporarily change the enforcement The Coast Guard is issuing this regulations for recurring marine events period of special local regulations for temporary final rule without prior within the Fifth Coast Guard District. recurring marine events in the Fifth notice and opportunity to comment This regulation applies to one marine Coast Guard District. These regulations pursuant to authority under section 4(a) event in 33 CFR 100.501, Table to apply to only one recurring marine of the Administrative Procedure Act § 100.501. event that conducts various river boat (APA) (5 U.S.C. 553(b)). This provision On June 11, 12, and 13, 2010, Norfolk races and a parade. Special local authorizes an agency to issue a rule Festevents Ltd. will sponsor the ‘‘34th regulations are necessary to provide for without prior notice and opportunity to Annual Norfolk Harborfest Celebration’’ the safety of life on navigable waters comment when the agency for good on the waters of the Southern Branch of during the event. This action is cause finds that those procedures are the Elizabeth River near Norfolk, intended to restrict vessel traffic in ‘‘impracticable, unnecessary, or contrary Virginia. The regulation at 33 CFR portions of the Southern Branch, to the public interest.’’ Under 5 U.S.C. 100.501 is effective annually for this Elizabeth River, VA during the event. 553(b)(B), the Coast Guard finds that marine event. The event will consist of DATES: This rule is effective from June good cause exists for not publishing a several boat races and parades on the 11, 2010, through June 13, 2010. notice of proposed rulemaking (NPRM) Southern Branch of the Elizabeth River ADDRESSES: Documents indicated in this with respect to this rule because in the vicinity of Town Point Reach, preamble as being available in the delaying the effective date would be Norfolk, Virginia. A fleet of spectator docket are part of docket USCG–2010– contrary to the public interest since vessels is expected to gather near the

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event site to view the competition. To regulated area when the Coast Guard small entities that question or complain provide for the safety of participants, Patrol Commander deems it is safe to do about this rule or any policy or action spectators, support and transiting so. of the Coast Guard. vessels, the Coast Guard will Small Entities Collection of Information temporarily restrict vessel traffic in the event area during the river boat races Under the Regulatory Flexibility Act This rule calls for no new collection and parade. The regulation at 33 CFR (5 U.S.C. 601–612), we have considered of information under the Paperwork 100.501 would be enforced for the whether this rule would have a Reduction Act of 1995 (44 U.S.C. 3501– duration of the event. Under provisions significant economic impact on a 3520). of 33 CFR 100.501, on June 11, 12, and substantial number of small entities. Federalism 13, 2010, vessels may not enter the The term ‘‘small entities’’ comprises regulated area unless they receive small businesses, not-for-profit A rule has implications for federalism permission from the Coast Guard Patrol organizations that are independently under Executive Order 13132, Commander. owned and operated and are not Federalism, if it has a substantial direct dominant in their fields, and effect on State or local governments and Discussion of Rule governmental jurisdictions with would either preempt State law or The Coast Guard is establishing a populations of less than 50,000. impose a substantial direct cost of temporary special local regulation on The Coast Guard certifies under 5 compliance on them. We have analyzed specified waters of the Southern Branch, U.S.C. 605(b) that this rule will not have this rule under that Order and have Elizabeth River, near Norfolk, Virginia. a significant economic impact on a determined that it does not have The regulated area will be established in substantial number of small entities. implications for federalism. the interest of public safety during the This rule would affect the following 34th Annual Norfolk Harborfest entities, some of which might be small Unfunded Mandates Reform Act Celebration, and will be enforced on entities: The owners or operators of The Unfunded Mandates Reform Act June 11, 12, and 13, 2010. Access to the vessels intending to transit or anchor in of 1995 (2 U.S.C. 1531–1538) requires regulated area will be restricted during the areas where marine events are being Federal agencies to assess the effects of the specified dates or until the river boat held. This regulation will not have a their discretionary regulatory actions. In races and parades are complete, significant impact on a substantial particular, the Act addresses actions whichever is sooner. Except for number of small entities because it will that may result in the expenditure by a participants and vessels authorized by be enforced only during marine events State, local, or tribal government, in the the Captain of the Port or his that have been permitted by the Coast aggregate, or by the private sector of Representative, no person or vessel may Guard Captain of the Port. The Captain $100,000,000 (adjusted for inflation) or enter or remain in the regulated area. of the Port will ensure that small more in any one year. Though this rule entities are able to operate in the areas will not result in such an expenditure, Regulatory Analyses where events are occurring when it is we do discuss the effects of this rule We developed this rule after safe to do so. In some cases, vessels will elsewhere in this preamble. considering numerous statutes and be able to safely transit around the executive orders related to rulemaking. regulated area at various times, and, Taking of Private Property Below we summarize our analyses with the permission of the Patrol This rule will not cause a taking of based on 13 of these statutes or Commander, vessels may transit private property or otherwise have executive orders. through the regulated area. Before the taking implications under Executive enforcement period, the Coast Guard Regulatory Planning and Review Order 12630, Governmental Actions and will issue maritime advisories so Interference with Constitutionally This rule is not a significant mariners can adjust their plans Protected Property Rights. regulatory action under section 3(f) of accordingly. Executive Order 12866, Regulatory Civil Justice Reform Assistance for Small Entities Planning and Review, and does not This rule meets applicable standards require an assessment of potential costs Under section 213(a) of the Small in sections 3(a) and 3(b)(2) of Executive and benefits under section 6(a)(3) of that Business Regulatory Enforcement Order 12988, Civil Justice Reform, to Order. The Office of Management and Fairness Act of 1996 (Pub. L. 104–121), minimize litigation, eliminate Budget has not reviewed it under that we offer to assist small entities in ambiguity, and reduce burden. Order. understanding the rule so that they can Although this rule prevents traffic better evaluate its effects on them and Protection of Children from transiting a portion of certain participate in the rulemaking process. We have analyzed this rule under waterways during specified events, the Small businesses may send comments Executive Order 13045, Protection of effect of this regulation will not be on the actions of Federal employees Children from Environmental Health significant due to the limited duration who enforce, or otherwise determine Risks and Safety Risks. This rule is not that the regulated area will be in effect compliance with, Federal regulations to an economically significant rule and and the extensive advance notifications the Small Business and Agriculture does not create an environmental risk to that will be made to the maritime Regulatory Enforcement Ombudsman health or risk to safety that may community via marine information and the Regional Small Business disproportionately affect children. broadcasts, local radio stations and area Regulatory Fairness Boards. The newspapers so mariners can adjust their Ombudsman evaluates these actions Indian Tribal Governments plans accordingly. Additionally, this annually and rates each agency’s This rule does not have tribal rulemaking does not change the responsiveness to small business. If you implications under Executive Order permanent regulated areas that have wish to comment on actions by 13175, Consultation and Coordination been published in 33 CFR 100.501, employees of the Coast Guard, call 1– with Indian Tribal Governments, Table to § 100.501. In some cases vessel 888–REG–FAIR (1–888–734–3247). The because it does not have a substantial traffic may be able to transit the Coast Guard will not retaliate against direct effect on one or more Indian

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tribes, on the relationship between the technical standards (e.g., specifications sail boat regattas, boat parades, power Federal Government and Indian tribes, of materials, performance, design, or boat racing, swimming events, crew or on the distribution of power and operation; test methods; sampling racing, and sail board racing. responsibilities between the Federal procedures; and related management Under figure 2–1, paragraph (34)(h), Government and Indian tribes. systems practices) that are developed or of the Instruction, an environmental adopted by voluntary consensus analysis checklist and a categorical Energy Effects standards bodies. exclusion determination are not We have analyzed this rule under This rule does not use technical required for this rule. Executive Order 13211, Actions standards. Therefore, we did not List of Subjects in 33 CFR Part 100 Concerning Regulations That consider the use of voluntary consensus Significantly Affect Energy Supply, standards. Marine safety, Navigation (water), Distribution, or Use. We have Reporting and recordkeeping Environment determined that it is not a ‘‘significant requirements, Waterways. energy action’’ under that order because We have analyzed this rule under ■ For the reasons discussed in the it is not a ‘‘significant regulatory action’’ Department of Homeland Security preamble, the Coast Guard amends 33 under Executive Order 12866 and is not Management Directive 023–01 and CFR part 100 as follows: likely to have a significant adverse effect Commandant Instruction M16475.lD, on the supply, distribution, or use of which guide the Coast Guard in PART 100—SAFETY OF LIFE ON energy. The Administrator of the Office complying with the National NAVIGABLE WATERS of Information and Regulatory Affairs Environmental Policy Act of 1969 ■ has not designated it as a significant (NEPA)(42 U.S.C. 4321–4370f), and 1. The authority citation for part 100 energy action. Therefore, it does not have concluded this action is one of a continues to read as follows: require a Statement of Energy Effects category of actions that do not Authority: 33 U.S.C. 1233. under Executive Order 13211. individually or cumulatively have a ■ 2. In § 100.501, suspend line No. 37 in significant effect on the human Technical Standards the Table to § 100.501 from June 11, environment. This rule is categorically 2010, through June 13, 2010. The National Technology Transfer excluded, under figure 2–1, paragraph ■ 3. In § 100.501, from June 11, 2010, and Advancement Act (NTTAA) (15 (34)(h), of the Instruction. This rule through June 13, 2010, add line No. 62 U.S.C. 272 note) directs agencies to use involves implementation of regulations in Table to § 100.501 to read as follows: voluntary consensus standards in their within 33 CFR Part 100 that apply to regulatory activities unless the agency organized marine events on the § 100.501 Special Local Regulations; provides Congress, through the Office of navigable waters of the United States Marine Events in the Fifth Coast Guard Management and Budget, with an that may have potential for negative District. explanation of why using these impact on the safety or other interest of * * * * * standards would be inconsistent with waterway users and shore side activities Table To § 100.501.—All coordinates applicable law or otherwise impractical. in the event area. The category of water listed in the Table to § 100.501 reference Voluntary consensus standards are activities includes but is not limited to Datum NAD 1983.

COAST GUARD SECTOR HAMPTON ROADS—COTP ZONE

No. Date Event Sponsor Location

******* 62 ...... June 11–June 13, Norfolk Harborfest Norfolk Festevents The waters of the Elizabeth River and its branches from 2010. Ltd. shore to shore, bounded to the northwest by a line drawn across the Port Norfolk Reach section of the Elizabeth River between the northern corner of the landing at Hospital Point, Portsmouth, Virginia, latitude 36°50′51.0″ N, longitude 076°18′09.0″ W and the north corner of the City of Norfolk Mooring Pier at the foot of Brooks Avenue located at latitude 36°51′00.0″ N, lon- gitude 076°17′52.0″ W; bounded on the southwest by a line drawn from the southern corner of the landing at Hospital Point, Portsmouth, Virginia, at latitude 36°50′50.0″ N, longitude 076°18′10.0″ W, to the north- ern end of the eastern most pier at the Tidewater Yacht Agency Marina, located at latitude 36°50′29.0″ N, longitude 076°17′52.0″ W; bounded to the south by a line drawn across the Lower Reach of the Southern Branch of the Elizabeth River, between the Portsmouth Lightship Museum located at the foot of London Boule- vard, in Portsmouth, Virginia, at latitude 36°50′10.0″ N, longitude 076°17′47.0″ W, and the northwest corner of the Norfolk Shipbuilding & Drydock, Berkley Plant, Pier No. 1, located at latitude 36°50′08.0″ N, longitude 076°17′39.0″ W; and to the southeast by the Berkley Bridge which crosses the Eastern Branch of the Eliza- beth River between Berkley at latitude 36°50′21.5″ N, longitude 076°17′14.5″ W, and Norfolk at latitude 36°50′35.0″ N, longitude 076°17′10.0″ W.

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Dated: May 12, 2010. Regulatory Information which is June 12 and 13 this year. M.S. Ogle, The Coast Guard is issuing this Because the dates of the event this year Captain, U.S. Coast Guard, Captain of the temporary final rule without prior differ from the effective dates in the Port, Hampton Roads. notice and opportunity to comment CFR, this rule temporarily changes the [FR Doc. 2010–12846 Filed 5–27–10; 8:45 am] pursuant to authority under section 4(a) effective dates of the existing regulation. BILLING CODE 9110–04–P of the Administrative Procedure Act To provide for the safety of participants, (APA) (5 U.S.C. 553(b)). This provision spectators, support and transiting authorizes an agency to issue a rule vessels, the Coast Guard will temporarily restrict vessel traffic in the DEPARTMENT OF HOMELAND without prior notice and opportunity to event area during the hydroplane races. SECURITY comment when the agency for good The existing regulation in the CFR will cause finds that those procedures are Coast Guard be enforced for the duration of the event ‘‘impracticable, unnecessary, or contrary this year on June 5 and 6 instead of June to the public interest.’’ Under 5 U.S.C. 33 CFR Part 100 12 and 13. 553(b)(B), the Coast Guard finds that good cause exists for not publishing a Discussion of Rule [Docket No. USCG–2010–0363] notice of proposed rulemaking (NPRM) The Coast Guard is temporarily with respect to this rule because the RIN 1625–AA08 changing the effective dates of special potential dangers posed by vessel traffic local regulations, in 33 CFR Table to operating in close proximity to high Special Local Regulation for Marine 100.501, No. 54, for the 2010 speed power boats makes special local Event; 2010 International Cup Regatta, International Cup Regatta from ‘‘June— regulations necessary to provide for the Pasquotank River, Elizabeth City, NC 2nd Saturday and Sunday’’ to ‘‘June—1st safety of participants, event support Saturday and Sunday’’ because the AGENCY: Coast Guard, DHS. vessels, spectator craft and other regatta will be held on the latter dates ACTION: Temporary final rule. vessels. Delaying the effective date this year. The temporary special local would be contrary to the public interest, regulations in 33 CFR 100.501 will be SUMMARY: The Coast Guard is since immediate action is needed to enforced from 9 a.m. to 6:30 p.m. on temporarily changing the enforcement ensure the safety of the event June 5 and June 6, 2010, and will period of special local regulations for a participants, patrol vessels, spectator restrict general navigation in the recurring marine event involving power craft and other vessels transiting the regulated area described in 33 CFR boat races in the Fifth Coast Guard event area. For these reasons, it is in the Table to 100.501, No. 54. The name of District. This action is intended to public interest to have these regulations the event has also changed this year restrict vessel traffic in a portion of the in effect during the event. The Coast from the Carolina Cup Regatta to the Pasquotank River, near Elizabeth City, Guard will issue broadcast notice to 2010 International Cup Regatta, and the NC, during the 2010 International Cup mariners to advise vessel operators of event sponsor’s name has changed from Regatta. Special local regulations are navigational restrictions. On scene Coast the Virginia Boat Racing Association to necessary to provide for the safety of life Guard and local law enforcement Carolina Cup Regatta, Inc. Except for on navigable waters during the event. vessels will also provide actual notice to participants and vessels authorized by DATES: This rule is effective from June mariners. the Coast Guard Patrol Commander, no 4 through June 6, 2010. For the same reasons, the Coast Guard person or vessel will be allowed to enter also finds under 5 U.S.C. 553(d)(3) that ADDRESSES: Documents indicated in this or remain in the regulated area. These good cause exists for making this rule preamble as being available in the regulations are needed to control vessel effective less than 30 days after docket are part of docket USCG–2010– traffic during the event to enhance the publication in the Federal Register. 0363 and are available online by going safety of participants, spectators and to http://www.regulations.gov, inserting Basis and Purpose transiting vessels. ‘‘ ’’ USCG–2010–0363 in the Keyword This regulation temporarily changes Regulatory Analyses ‘‘ ’’ box, and then clicking Search. They the enforcement period of special local are also available for inspection or We developed this rule after regulations for a recurring marine event considering numerous statutes and copying at the Docket Management in 33 CFR 100.501 and 33 CFR Table to Facility (M–30), U.S. Department of executive orders related to rulemaking. § 100.501, No. 54. On June 5 and 6, Below we summarize our analyses Transportation, West Building Ground 2010, Carolina Cup Regatta, Inc. will Floor, Room W12–140, 1200 New Jersey based on 13 of these statutes or sponsor the 2010 International Cup executive orders. Avenue, SE., Washington, DC 20590, Regatta hydroplane races on the waters between 9 a.m. and 5 p.m., Monday of the Pasquotank River adjacent to Regulatory Planning and Review through Friday, except Federal holidays. Elizabeth City, North Carolina. The This rule is not a significant FOR FURTHER INFORMATION CONTACT: If event will consist of approximately 75 regulatory action under section 3(f) of you have questions on this temporary hydroplane powerboats conducting Executive Order 12866, Regulatory rule, call or e-mail Petty Officer Kevin high-speed competitive races on the Planning and Review, and does not Ouyoumjian, Prevention Department, Pasquotank River from shoreline to require an assessment of potential costs Coast Guard Sector North Carolina, shoreline in the vicinity of the Elizabeth and benefits under section 6(a)(3) of that Atlantic Beach, NC; telephone 252–247– City Waterfront, Elizabeth City, North Order. The Office of Management and 4528, e-mail Carolina. A fleet of spectator vessels is Budget has not reviewed it under that [email protected]. If you expected to gather near the event site to Order. have questions on viewing the docket, view the competition. Although this rule prevents traffic call Renee V. Wright, Program Manager, The regulation at 33 CFR 100.501 and from transiting a portion of the Docket Operations, telephone 202–366– 33 CFR Table to 100.501 is effective Pasquotank River during the event, the 9826. annually for this marine event on the effect of this regulation will not be SUPPLEMENTARY INFORMATION: second Saturday and Sunday of June, significant due to the limited duration

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that the regulated area will be in effect Regulatory Enforcement Ombudsman health or risk to safety that may and the extensive advance notifications and the Regional Small Business disproportionately affect children. that will be made to the maritime Regulatory Fairness Boards. The Indian Tribal Governments community via marine information Ombudsman evaluates these actions broadcasts, local radio stations and area annually and rates each agency’s This rule does not have tribal newspapers so mariners can adjust their responsiveness to small business. If you implications under Executive Order plans accordingly. Additionally, this wish to comment on actions by 13175, Consultation and Coordination rulemaking does not change the employees of the Coast Guard, call with Indian Tribal Governments, permanent regulated areas that have 1–888–REG–FAIR (1–888–734–3247). because it does not have a substantial been published in 33 CFR 100.501, The Coast Guard will not retaliate direct effect on one or more Indian Table to § 100.501. In some cases vessel against small entities that question or tribes, on the relationship between the traffic may be able to transit the complain about this rule or any policy Federal Government and Indian tribes, regulated area when the Coast Guard or action of the Coast Guard. or on the distribution of power and Patrol Commander deems it is safe to do responsibilities between the Federal so. Collection of Information Government and Indian tribes. This rule calls for no new collection Small Entities Energy Effects of information under the Paperwork Under the Regulatory Flexibility Act Reduction Act of 1995 (44 U.S.C. 3501– We have analyzed this rule under (5 U.S.C. 601–612), we have considered 3520). Executive Order 13211, Actions whether this rule would have a Concerning Regulations That significant economic impact on a Federalism Significantly Affect Energy Supply, substantial number of small entities. A rule has implications for federalism Distribution, or Use. We have The term ‘‘small entities’’ comprises under Executive Order 13132, determined that it is not a ‘‘significant small businesses, not-for-profit Federalism, if it has a substantial direct energy action’’ under that order because organizations that are independently effect on State or local governments and it is not a ‘‘significant regulatory action’’ owned and operated and are not would either preempt State law or under Executive Order 12866 and is not dominant in their fields, and impose a substantial direct cost of likely to have a significant adverse effect governmental jurisdictions with compliance on them. We have analyzed on the supply, distribution, or use of populations of less than 50,000. this rule under that Order and have energy. The Administrator of the Office The Coast Guard certifies under 5 determined that it does not have of Information and Regulatory Affairs U.S.C. 605(b) that this rule will not have implications for federalism. has not designated it as a significant a significant economic impact on a energy action. Therefore, it does not substantial number of small entities. Unfunded Mandates Reform Act require a Statement of Energy Effects This rule would affect the following The Unfunded Mandates Reform Act under Executive Order 13211. entities, some of which might be small of 1995 (2 U.S.C. 1531–1538) requires Technical Standards entities: The owners or operators of Federal agencies to assess the effects of vessels intending to transit or anchor in their discretionary regulatory actions. In The National Technology Transfer the Pasquotank River in the regulated particular, the Act addresses actions and Advancement Act (NTTAA) (15 area. This regulation will not have a that may result in the expenditure by a U.S.C. 272 note) directs agencies to use significant impact on a substantial State, local, or tribal government, in the voluntary consensus standards in their number of small entities because it will aggregate, or by the private sector of regulatory activities unless the agency be enforced only in a limited area for a $100,000,000 (adjusted for inflation) or provides Congress, through the Office of short duration. The Captain of the Port more in any one year. Though this rule Management and Budget, with an will ensure that small entities are able will not result in such an expenditure, explanation of why using these to operate in the areas where events are we do discuss the effects of this rule standards would be inconsistent with occurring when it is safe to do so. In elsewhere in this preamble. applicable law or otherwise impractical. some cases, vessels will be able to safely Voluntary consensus standards are transit around the regulated area and, Taking of Private Property technical standards (e.g., specifications with the permission of the Patrol This rule will not cause a taking of of materials, performance, design, or Commander, vessels may transit private property or otherwise have operation; test methods; sampling through the regulated area. Before the taking implications under Executive procedures; and related management enforcement period, the Coast Guard Order 12630, Governmental Actions and systems practices) that are developed or will issue maritime advisories so Interference with Constitutionally adopted by voluntary consensus mariners can adjust their plans Protected Property Rights. standards bodies. accordingly. This rule does not use technical Civil Justice Reform standards. Therefore, we did not Assistance for Small Entities This rule meets applicable standards consider the use of voluntary consensus Under section 213(a) of the Small in sections 3(a) and 3(b)(2) of Executive standards. Business Regulatory Enforcement Order 12988, Civil Justice Reform, to Environment Fairness Act of 1996 (Pub. L. 104–121), minimize litigation, eliminate we offer to assist small entities in ambiguity, and reduce burden. We have analyzed this rule under understanding the rule so that they can Department of Homeland Security Protection of Children better evaluate its effects on them and Management Directive 023–01 and participate in the rulemaking process. We have analyzed this rule under Commandant Instruction M16475.lD, Small businesses may send comments Executive Order 13045, Protection of which guide the Coast Guard in on the actions of Federal employees Children from Environmental Health complying with the National who enforce, or otherwise determine Risks and Safety Risks. This rule is not Environmental Policy Act of 1969 compliance with, Federal regulations to an economically significant rule and (NEPA) (42 U.S.C. 4321–4370f), and the Small Business and Agriculture does not create an environmental risk to have concluded this action is one of a

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category of actions that do not List of Subjects in 33 CFR Part 100 Authority: 33 U.S.C. 1233. individually or cumulatively have a ■ significant effect on the human Marine safety, Navigation (water), 2. Effective from June 4 through June environment. This rule is categorically Reporting and recordkeeping 6, 2010, in § 100.501, Table to § 100.501, excluded, under figure 2–1, paragraph requirements, Waterways. suspend line No. 54 and add Line No. 58 to read as follows: (34)(h), of the Instruction because the ■ For the reasons discussed in the rule involves promulgation of special preamble, the Coast Guard amends 33 § 100.501 Special Local Regulations; local regulations issued in conjunction CFR part 100 as follows: Marine Events in the Fifth Coast Guard with a regatta or marine parade. District. Under figure 2–1, paragraph (34)(h), PART 100—SAFETY OF LIFE ON of the Instruction, an environmental NAVIGABLE WATERS * * * * * analysis checklist and a categorical Table To § 100.501.—All Coordinates exclusion determination are not ■ 1. The authority citation for part 100 Listed in the Table to § 100.501 required for this rule. continues to read as follows: Reference Datum NAD 1983.

COAST GUARD SECTOR DELAWARE BAY—COTP ZONE

Number Date Event Sponsor Location

******* 58 ...... June 4–6, 2010 ..... 2010 International Cup Carolina Cup Regatta, The waters of the Pasquotank River, adjacent to Elizabeth Regatta. Inc. City, NC, from shoreline to shoreline, bounded on the west by the Elizabeth City Draw Bridge and bounded on the east by a line originating at a point along the shore- line at latitude 36°17′54″ N, longitude 076°12′00″ W, thence southwesterly to latitude 36°17′35″ N, longitude 076°12′18″ W at Cottage Point.

Dated: May 11, 2010. DATES: This rule is effective June 28, comments or requests for meetings in A. Popiel, 2010. response to the Interim Rule. Captain, U.S. Coast Guard, Captain of the ADDRESSES: Comments and material Basis and Purpose Port North Carolina. received from the public, as well as [FR Doc. 2010–12842 Filed 5–27–10; 8:45 am] documents mentioned in this preamble The Cross Bay Swim has been BILLING CODE 9110–04–P as being available in the docket, are part successfully held off and on from the of docket USCG–2009–0302 and are early 1900’s on the waters of Great available online by going to http:// South Bay, NY. This 5.25 mile swim has DEPARTMENT OF HOMELAND www.regulations.gov, inserting USCG– historically involved up to 100 SECURITY 2009–0302 in the ‘‘Keyword’’ box, and swimmers and accompanying safety then clicking ‘‘Search.’’ This material is craft that travel along a course located Coast Guard also available for inspection or copying directly north of the Fire Island at the Docket Management Facility (M– Lighthouse Dock, NY and extending to 33 CFR Part 100 30), U.S. Department of Transportation, Gilbert Park in Brightwaters, NY. Prior [Docket No. USCG–2009–0302] West Building Ground Floor, Room to this rule there was not a regulation in W12–140, 1200 New Jersey Avenue, SE., place to protect the swimmers or safety RIN 1625–AA08 Washington, DC 20590, between 9 a.m. craft from the hazards imposed by and 5 p.m., Monday through Friday, marine traffic. Special Local Regulation; Maggie except Federal holidays. To ensure the continued safety of the Fischer Memorial Great South Bay swimmers, safety craft and the boating Cross Bay Swim, Great South Bay, NY FOR FURTHER INFORMATION CONTACT: If you have questions on this rule, call or public, the Coast Guard is establishing AGENCY: Coast Guard, DHS. e-mail: Chief Petty Officer Christie a permanent special local regulation on the navigable waters of the Great South ACTION: Final rule. Dixon, Prevention Department, USCG Sector Long Island Sound at 203–468– Bay, New York that would exclude all SUMMARY: The Coast Guard is 4459, [email protected]. If you unauthorized persons and vessels from establishing a permanent special local have questions on viewing the docket, approaching within 100 yards of any regulation on Great South Bay, NY call Renee V. Wright, Program Manager, swimmer or safety craft on the race between Gilbert Park, Brightwaters, NY Docket Operations, telephone 202–366– course from 6:30 a.m. to 12:30 p.m. on and Fire Island Lighthouse Dock, Fire 9826. the day of the race. Island, NY due to the annual Maggie SUPPLEMENTARY INFORMATION: Entry into this zone is prohibited Fischer Memorial Great South Bay Cross unless authorized by the Captain of the Bay Swim. This special local regulation Regulatory Information Port Long Island Sound or by designated is necessary to protect swimmers, safety On July 8, 2009 we published an on-scene patrol personnel. Any vessels and the boating public on the Interim Rule with a request for violation of the safety zone described navigable waters of Great South Bay, comments entitled, Special Local herein is punishable by, among other NY. Entry into this zone is prohibited Regulation, Maggie Fischer Memorial things, civil and criminal penalties, in unless authorized by the Captain of the Great South Bay Cross Bay Swim, Great rem liability against the offending Port Long Island Sound, New Haven, South Bay, NY, in the Federal Register vessel, and the initiation of suspension CT. (74 FR 32428). We did not receive any or revocation proceedings against Coast

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Guard-issued merchant mariner entities, some of which may be small State, local, or tribal government, in the credentials. entities: The owners or operators of aggregate, or by the private sector of vessels intending to transit in those $100,000,000 (adjusted for inflation) or Discussion of Comments and Changes portions of Great South Bay, NY covered more in any one year. Though this rule A small number of changes are being by the special local regulation. Although will not result in such an expenditure, made to minimize the size of the the safety zone would apply to the we do discuss the effects of this rule regulated area and reduce the burden on entire width of the bay, traffic would be elsewhere in this preamble. vessel traffic by minimizing the allowed to pass through the zone, Taking of Private Property restrictions in the regulated area. Even outside 100 yards of any swimmer or though the bounds of the regulated area safety craft. Before the activation of the This rule will not cause a taking of were discussed in the Small Entities zone, we would issue maritime private property or otherwise have section, and no comments were advisories widely available to users of taking implications under Executive received, we are clarifying sections (a) the waterway. Additionally, the rule Order 12630, Governmental Actions and and (c) to read as set forth in the would only be in effect for a period of Interference with Constitutionally regulatory text of this final rule. 6–7 hours for one day per year. Protected Property Rights. The changes in the text redefined the regulated area from ‘‘within 100 yards of Assistance for Small Entities Civil Justice Reform the swim event race course’’ to ‘‘within Under section 213(a) of the Small This rule meets applicable standards 100 yards from each swimmer or safety Business Regulatory Enforcement in sections 3(a) and 3(b)(2) of Executive craft on the swim event race course’’ so Fairness Act of 1996 (Pub. L. 104–121), Order 12988, Civil Justice Reform, to the regulated area would not block the in the Interim Rule we offered to assist minimize litigation, eliminate entire waterway. This will reduce the small entities in understanding the rule ambiguity, and reduce burden. burden on vessels by allowing them to so that they could better evaluate its Protection of Children pass through the race course as long as effects on them and participate in the they stay clear of the swimmers and rulemaking process. We have analyzed this rule under safety craft. Small businesses may send comments Executive Order 13045, Protection of Also, paragraph (d) has been revised on the actions of Federal employees Children from Environmental Health to provide the public additional notice who enforce, or otherwise determine Risks and Safety Risks. This rule is not of enforcement dates and times through compliance with, Federal regulations to an economically significant rule and publication of an advance notice each the Small Business and Agriculture does not create an environmental risk to year in the Federal Register. Regulatory Enforcement Ombudsman health or risk to safety that may and the Regional Small Business disproportionately affect children. Regulatory Analyses Regulatory Fairness Boards. The Indian Tribal Governments We developed this rule after Ombudsman evaluates these actions considering numerous statutes and annually and rates each agency’s This rule does not have tribal executive orders related to rulemaking. responsiveness to small business. If you implications under Executive Order Below we summarize our analyses wish to comment on actions by 13175, Consultation and Coordination based on 13 of these statutes or employees of the Coast Guard, call with Indian Tribal Governments, executive orders. 1–888–REG–FAIR (1–888–734–3247). because it does not have a substantial direct effect on one or more Indian Regulatory Planning and Review The Coast Guard will not retaliate against small entities that question or tribes, on the relationship between the This rule is not a significant complain about this rule or any policy Federal Government and Indian tribes, regulatory action under section 3(f) of or action of the Coast Guard. or on the distribution of power and Executive Order 12866, Regulatory responsibilities between the Federal Planning and Review, and does not Collection of Information Government and Indian tribes. require an assessment of potential costs This rule calls for no new collection Energy Effects and benefits under section 6(a)(3) of that of information under the Paperwork Order. The Office of Management and Reduction Act of 1995 (44 U.S.C. 3501– We have analyzed this rule under Budget has not reviewed it under that 3520). Executive Order 13211, Actions Order. Concerning Regulations That Federalism Significantly Affect Energy Supply, Small Entities A rule has implications for federalism Distribution, or Use. We have Under the Regulatory Flexibility Act under Executive Order 13132, determined that it is not a ‘‘significant (5 U.S.C. 601–612), we have considered Federalism, if it has a substantial direct energy action’’ under that order because whether this rule would have a effect on State or local governments and it is not a ‘‘significant regulatory action’’ significant economic impact on a would either preempt State law or under Executive Order 12866 and is not substantial number of small entities. impose a substantial direct cost of likely to have a significant adverse effect The term ‘‘small entities’’ comprises compliance on them. We have analyzed on the supply, distribution, or use of small businesses, not-for-profit this rule under that Order and have energy. The Administrator of the Office organizations that are independently determined that it does not have of Information and Regulatory Affairs owned and operated and are not implications for federalism. has not designated it as a significant dominant in their fields, and energy action. Therefore, it does not governmental jurisdictions with Unfunded Mandates Reform Act require a Statement of Energy Effects populations of less than 50,000. The Unfunded Mandates Reform Act under Executive Order 13211. The Coast Guard certifies under 5 of 1995 (2 U.S.C. 1531–1538) requires U.S.C. 605(b) that this rule will not have Federal agencies to assess the effects of Technical Standards a significant economic impact on a their discretionary regulatory actions. In The National Technology Transfer substantial number of small entities. particular, the Act addresses actions and Advancement Act (NTTAA) (15 This rule may affect the following that may result in the expenditure by a U.S.C. 272 note) directs agencies to use

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voluntary consensus standards in their § 100.124 Maggie Fischer Memorial Great Mail Manual (DMM®) 507.9.3.2 and regulatory activities unless the agency South Bay Cross Bay Swim, Great South 507.9.5.2 to eliminate the option to provides Congress, through the Office of Bay, New York. obtain a Business Reply Mail® (BRM) Management and Budget, with an (a) Regulated area. All navigable permit online. Additionally, the explanation of why using these waters of Great South Bay, NY within a electronic version of PS Form 6805, standards would be inconsistent with 100 yard radius of each swimmer or Qualified Business Reply Mail (QBRM) applicable law or otherwise impractical. safety craft on the swim event race Application, will also be removed. Voluntary consensus standards are course bounded by the following points: DATES: Effective July 6, 2010. technical standards (e.g., specifications Starting Point at the Fire Island FOR FURTHER INFORMATION CONTACT: of materials, performance, design, or Lighthouse Dock in approximate ° ′ ″ ° ′ ″ Jenny Kalthoff, 202–268–5466 or operation; test methods; sampling position 40 38 01 N 073 13 07 W, Yvonne Gifford, 202–268–8082. northerly through approximate points procedures; and related management SUPPLEMENTARY INFORMATION: Currently, 40°38′52″ N 073°13′09″ W, 40°39′40″ N systems practices) that are developed or customers can apply for BRM permits 073°13′30″ W, 40°40′30″ N 073°14′00″ adopted by voluntary consensus and QBRM authorization online or in W, and finishing at Gilbert Park, standards bodies. person at any Post OfficeTM facility. The Brightwaters, NY at approximate This rule does not use technical ability to obtain a BRM permit online position 40°42′25″ N 073°14′52″ W. standards. Therefore, we did not has been available since 2004 and has consider the use of voluntary consensus * * * * * not sustained the volume of users to standards. (c) Special local regulation. (1) No support maintaining the system. person or vessel may enter, transit, or Environment remain within 100 yards of any Procedures We have analyzed this rule under swimmer or safety craft within the Beginning May 2010, the ability to Department of Homeland Security regulated area during the enforcement obtain a BRM permit online will be Management Directive 023–01 and period of this regulation unless they are eliminated and customers will be Commandant Instruction M16475.lD, officially participating in the Maggie required to visit a Post Office and which guide the Coast Guard in Fischer Memorial Great South Bay Cross submit a completed hardcopy PS Form complying with the National Bay Swim event or are otherwise 3615, Mailing Permit Application and Environmental Policy Act of 1969 authorized by the Captain of the Port Customer Profile, to obtain a BRM (NEPA) (42 U.S.C. 4321–4370f), and Long Island Sound or by designated on- permit. In addition, customers have concluded this action is one of a scene patrol personnel. requesting authorization for QBRM will category of actions that do not * * * * * also be required to visit a Post Office to individually or cumulatively have a (4) Persons and vessels desiring to complete a printed PS Form 6805. significant effect on the human enter the regulated area within 100 The Postal Service adopts the environment. This rule is categorically yards of a swimmer or safety craft may following changes to Mailing Standards excluded, under figure 2–1, paragraph request permission to enter from the of the United States Postal Service, (34)(h), of the Instruction. This rule designated on scene patrol personnel on Domestic Mail Manual (DMM), finalizes the establishment of a special VHF–16 or the Captain of the Port, Long incorporated by reference in the Code of local regulation that was published as Island Sound via phone at (203) 468– Federal Regulations. See 39 CFR 111.1. an Interim Rule with an invitation to 4401. List of Subjects in 39 CFR Part 111 comment on July 8, 2009. No comments (d) Enforcement Period. This section will be enforced annually on a date to Administrative practice and were received that would affect the procedure, Postal Service. assessment of environmental impacts be determined each July. Public ■ Accordingly, 39 CFR Part 111 is from this action. An environmental notification of the specific date and amended as follows: analysis checklist and a categorical times of enforcement will be made each year via a Notice of Enforcement in the exclusion determination are available in PART 111—[AMENDED] the docket where indicated under Federal Register, separate marine ADDRESSES. broadcasts and local notice to mariners. ■ 1. The authority citation for 39 CFR Part 111 continues to read as follows: List of Subjects in 33 CFR Part 100 Dated: May 3, 2010. Daniel A. Ronan, Authority: 5 U.S.C. 552(a); 13 U.S.C. 301– Marine safety, Navigation (water), Captain, U.S. Coast Guard, Captain of the 307; 18 U.S.C. 1692–1737; 39 U.S.C. 101, Reporting and recordkeeping Port Long Island Sound. 401, 403, 404, 414, 416, 3001–3011, 3201– 3219, 3403–3406, 3621, 3622, 3626, 3632, requirements, Waterways. [FR Doc. 2010–12844 Filed 5–27–10; 8:45 am] 3633, and 5001. BILLING CODE 9110–04–P ■ Accordingly, the interim rule ■ 2. Revise the following sections of amending 33 CFR part 100, which was Mailing Standards of the United States published at 74 FR 32428 on July 8, Postal Service, Domestic Mail Manual POSTAL SERVICE 2009, is adopted as a final rule with the (DMM) as follows: following changes: 39 CFR Part 111 Mailing Standards of the United States PART 100—SAFETY OF LIFE ON Postal Service, Domestic Mail Manual NAVIGABLE WATERS Business Reply Mail Online (DMM) Application Option * * * * * ■ 1. The authority citation for part 100 AGENCY: Postal ServiceTM. continues to read as follows: 500 Additional Mailing Services ACTION: Final rule. Authority: 33 U.S.C. 1233. * * * * * SUMMARY: The Postal ServiceTM will ■ 2. In § 100.124, revise paragraphs (a), revise the Mailing Standards of the 507 Mailer Services (c)(1), (c)(4), and (d) to read as follows: United States Postal Service, Domestic * * * * *

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9.0 Business Reply Mail (BRM) ACTION: Direct final rule. made available on the Internet. If you * * * * * submit an electronic comment, EPA SUMMARY: EPA is taking direct final recommends that you include your 9.3 Qualified Business Reply Mail action to approve revisions to the name and other contact information in (QBRM) Basic Standards District of Columbia State the body of your comment and with any Implementation Plan (SIP). The * * * * * disk or CD–ROM you submit. If EPA revisions establish general and cannot read your comment due to 9.3.2 Authorization transportation conformity regulations technical difficulties and cannot contact for the District of Columbia. EPA is you for clarification, EPA may not be [Delete item 9.3.2b in its entirety and approving these revisions in accordance incorporate item 9.3.2a into the able to consider your comment. with the requirements of the Clean Air Electronic files should avoid the use of introduction paragraph as follows:] Act. To participate in QBRM, a mailer special characters, any form of DATES: This rule is effective on July 27, encryption, and be free of any defects or must have a valid BRM permit, must 2010 without further notice, unless EPA pay the annual account maintenance viruses. receives adverse written comment by Docket: All documents in the fee, and must submit Form 6805 to the June 28, 2010. If EPA receives such postmaster or manager, Business Mail electronic docket are listed in the comments, it will publish a timely http://www.regulations.gov index. Entry at the Post Office to which the withdrawal of the direct final rule in the QBRM pieces are to be returned. The Although listed in the index, some Federal Register and inform the public information is not publicly available, USPS reviews Form 6805 and that the rule will not take effect. preproduction samples provided by the i.e., CBI or other information whose ADDRESSES: Submit your comments, mailer for compliance with relevant disclosure is restricted by statute. identified by Docket ID Number EPA– standards. If the mailer’s request is Certain other material, such as R03–OAR–2010–0320 by one of the approved, the USPS issues the mailer an copyrighted material, is not placed on following methods: the Internet and will be publicly authorization via the approved Form A. http://www.regulations.gov, Follow 6805. available only in hard copy form. the on-line instructions for submitting Publicly available docket materials are * * * * * comments. available either electronically in http:// 9.5 Permits B. E-mail: www.regulations.gov or in hard copy [email protected]. during normal business hours at the Air * * * * * C. Mail: EPA–R03–OAR–2010–0320, Protection Division, U.S. Environmental Cristina Fernandez, Associate Director, 9.5.2 Application Process Protection Agency, Region III, 1650 Office of Air Planning Programs, [Delete item 9.5.2b in its entirety and Mailcode 3AP30, U.S. Environmental Arch Street, Philadelphia, Pennsylvania incorporate item 9.5.2. into the Protection Agency, Region III, 1650 19103. Copies of the State submittal are introduction paragraph as follows:] Arch Street, Philadelphia, Pennsylvania available at the District of Columbia The mailer may apply for a BRM 19103. District Department of the Environment, permit by submitting a completed Form D. Hand Delivery: At the previously- Air Quality Division, 51 N Street, NE., 3615 to the Post Office issuing the listed EPA Region III address. Such Fifth Floor, Washington, DC 20002. permit and paying the annual permit deliveries are only accepted during the FOR FURTHER INFORMATION CONTACT: fee. If a completed Form 3615 is already Docket’s normal hours of operation, and Martin Kotsch, (215) 814–3335, or by e- on file for the mailer for other permits special arrangements should be made mail at [email protected]. at that office, then the mailer must for deliveries of boxed information. SUPPLEMENTARY INFORMATION: submit the annual BRM permit fee and Instructions: Direct your comments to Throughout this document whenever the USPS amends Form 3615 by adding Docket ID No. EPA–R03–OAR–2010– ‘‘we,’’ ‘‘us,’’ or ‘‘our’’ is used, we mean the BRM authorization. 0320. EPA’s policy is that all comments EPA. * * * * * received will be included in the public SUPPLEMENTARY INFORMATION: We will publish an appropriate docket without change, and may be I. What is transportation conformity? amendment to 39 CFR Part 111 to reflect made available online at http:// these changes. www.regulations.gov, including any Transportation conformity is required personal information provided, unless under Section 176(c) of the Clean Air Stanley F. Mires, the comment includes information Act to ensure that Federally supported Chief Counsel, Legislative. claimed to be Confidential Business highway, transit projects, and other [FR Doc. 2010–11869 Filed 5–27–10; 8:45 am] Information (CBI) or other information activities are consistent with (conform BILLING CODE 7710–12–P whose disclosure is restricted by statute. to) the purpose of the SIP. Conformity Do not submit information that you currently applies to areas that are consider to be CBI or otherwise designated nonattainment, and those ENVIRONMENTAL PROTECTION protected through http:// redesignated to attainment after 1990 AGENCY www.regulations.gov or e-mail. The (maintenance areas), with plans http://www.regulations.gov Web site is developed under section 175A of the 40 CFR Part 52 an anonymous access system, which Clean Air Act for the following means EPA will not know your identity transportation related criteria [EPA–R03–OAR–2010–0320; FRL–9156–1] or contact information unless you pollutants: ozone, particulate matter Approval and Promulgation of Air provide it in the body of your comment. (PM2.5 and PM10), carbon monoxide Quality Implementation Plans; District If you send an e-mail comment directly (CO), and nitrogen dioxide (NO2). of Columbia; Transportation to EPA without going through http:// Conformity to the purpose of the SIP Conformity Regulations www.regulations.gov, your e-mail means that transportation activities will address will be automatically captured not cause new air quality violations, AGENCY: Environmental Protection and included as part of the comment worsen existing violations, or delay Agency (EPA). that is placed in the public docket and timely attainment of the relevant

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national ambient air quality standards three sections of the Federal Conformity Federal regulations 42 U.S.C. 7410(k); (NAAQS). The transportation Rule to be included in their State 40 CFR 52.02(a). Thus, in reviewing SIP conformity regulation is found in 40 conformity SIPs. EPA’s review of the submissions, EPA’s role is to approve CFR part 93 and provisions related to District of Columbia’s proposed SIP State choices, provided that they meet conformity SIPs are found in 40 CFR revision indicates that it is consistent the criteria of the Clean Air Act. 51.390. with EPA’s guidance in that it includes Accordingly, this action merely II. What is the background for this the three elements specified by approves State law as meeting Federal action? SAFETEA–LU. Consistent with the EPA requirements and does not impose Conformity Rule at 40 CFR 93.105 additional requirements beyond those On August 10, 2005, the Safe, (consultation procedures), Title 20, imposed by State law. For that reason, Accountable, Flexible, Efficient DCRM Chapter 15, Sections 1503, 1504, this action: Transportation Equity Act: A Legacy for and 1505 identifies the appropriate • Is not a ‘‘significant regulatory Users (SAFETEA–LU) was signed into agencies, procedures and allocation of action’’ subject to review by the Office law. SAFETEA–LU revised certain responsibilities. In addition, Title 20, of Management and Budget under provisions of section 176(c) of the Clean DCMR Chapter 15, Section 1506 Executive Order 12866 (58 FR 51735, Air Act, related to transportation provides for appropriate, public October 4, 1993); conformity. Prior to SAFETEA–LU, consultation/public involvement • Does not impose an information States were required to address all of the consistent with 40 CFR 93.105. With collection burden under the provisions Federal conformity rule’s provisions in respect to the requirements of 40 CFR of the Paperwork Reduction Act (44 their conformity SIPs. After SAFETEA– 93.122(a)(4)(ii) and 40 CFR 93.125(c), U.S.C. 3501 et seq.); LU, State’s SIPs were required to the Title 20, DCRM Chapter 15, Section • Is certified as not having a contain all or portions of only the 1509 of the regulation specifies that significant economic impact on a following three sections of the Federal written commitments for control substantial number of small entities rule, modified as appropriate to each measures and mitigation measures for under the Regulatory Flexibility Act (5 State’s circumstances: 40 CFR 93.105 meeting these requirements will be U.S.C. 601 et seq.); • (consultation procedures); 40 CFR provided as needed. Does not contain any unfunded 93.122(a)(4)(ii) (written commitments to mandate or significantly or uniquely implement certain kind of control IV. Final Action affect small governments, as described measures); and 40 CFR 93.125(c) EPA is approving the District of in the Unfunded Mandates Reform Act (written commitments to implement Columbia SIP revisions for general and of 1995 (Pub. L. 104–4); certain kinds of mitigation measures). transportation conformity, without prior • Does not have Federalism States are no longer required to submit proposal because the Agency views this implications as specified in Executive conformity SIP revisions that address as a noncontroversial amendment and Order 13132 (64 FR 43255, August 10, the other sections of the Federal anticipates no adverse comment. 1999); • conformity rule. However, in the Proposed Rules section Is not an economically significant III. What did the state submit and how of today’s Federal Register, EPA is regulatory action based on health or did we evaluate it? publishing a separate document that safety risks subject to Executive Order will serve as the proposal to approve the 13045 (62 FR 19885, April 23, 1997); On January 26, 2010, the District of • SIP revision if adverse comments are Is not a significant regulatory action Columbia Department of the subject to Executive Order 13211 (66 FR Environment submitted a revision to its filed. This rule will be effective on July 27, 2010 without further notice unless 28355, May 22, 2001); SIP for general and transportation • Is not subject to requirements of conformity regulations adopted on EPA receives adverse comment by June 28, 2010. If EPA receives adverse section 12(d) of the National January 8, 2010. The portion of the SIP Technology Transfer and Advancement dealing with general conformity is comment, EPA will publish a timely withdrawal in the Federal Register Act of 1995 (15 U.S.C. 272 note) because strictly a recodification of its previously application of those requirements would approved general conformity regulation informing the public that the rule will not take effect. EPA will address all be inconsistent with the Clean Air Act; from Chapter 4 of the District of and Columbia Regulations (DCMR) to public comments in a subsequent final • rule based on the proposed rule. EPA Does not provide EPA with the Chapter 15 and contains no substantial discretionary authority to address, as changes from its previous approval. The will not institute a second comment period on this action. Any parties appropriate, disproportionate human SIP revision section for transportation health or environmental effects, using conformity addresses the three interested in commenting must do so at this time. Please note that if EPA practicable and legally permissible provisions of the EPA Conformity Rule methods, under Executive Order 12898 required under SAFETEA–LU: 40 CFR receives adverse comment on an amendment, paragraph, or section of (59 FR 7629, February 16, 1994). 93.105 (consultation procedures); 40 In addition, this rule does not have this rule and if that provision may be CFR 93.122(a)(4)(ii) (control measures), Tribal implications as specified by severed from the remainder of the rule, and 40 CFR 93.125(c) (mitigation Executive Order 13175 (65 FR 67249, EPA may adopt as final those provisions measures). November 9, 2000), because the SIP is of the rule that are not the subject of an We reviewed the submittals to assure not approved to apply in Indian country adverse comment. consistency with the February 14, 2006 located in the State, and EPA notes that ‘‘Interim Guidance for Implementing the V. Statutory and Executive Order it will not impose substantial direct Transportation Conformity provisions in Reviews costs on Tribal governments or preempt the SAFETEA–LU.’’ The guidance Tribal law. document can be found at http:// A. General Requirements epa.gov/otaq/stateresources/transconf/ Under the Clean Air Act, the B. Submission to Congress and the policy.htm. The guidance document Administrator is required to approve a Comptroller General states that each State is only required to SIP submission that complies with the The Congressional Review Act, 5 address and tailor the afore-mentioned provisions of the Act and applicable U.S.C. 801 et seq., as added by the Small

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Business Regulatory Enforcement circuit by July 27, 2010. Filing a petition Dated: May 17, 2010. Fairness Act of 1996, generally provides for reconsideration by the Administrator William C. Early, that before a rule may take effect, the of this final rule does not affect the Acting Regional Administrator, Region III. agency promulgating the rule must finality of this final rule for the submit a rule report, which includes a purposes of judicial review nor does it ■ 40 CFR part 52 is amended as follows: copy of the rule, to each House of the extend the time within which a petition Congress and to the Comptroller General for judicial review may be filed, and PART 52—[AMENDED] of the United States. EPA will submit a shall not postpone the effectiveness of report containing this action and other such rule or action. This action to ■ 1. The authority citation for part 52 required information to the U.S. Senate, approve the District of Columbia continues to read as follows: the U.S. House of Representatives, and transportation conformity regulations Authority: 42 U.S.C. 7401 et seq. the Comptroller General of the United may not be challenged later in States prior to publication of the rule in proceedings to enforce its requirements. Subpart J—District of Columbia the Federal Register. A major rule (See, section 307(b)(2)). cannot take effect until 60 days after it List of Subjects in 40 CFR Part 52 ■ is published in the Federal Register. 2. In § 52.470, the table in paragraph This action is not a ‘‘major rule’’ as Environmental protection, Air (c) is amended by removing the existing defined by 5 U.S.C. 804(2). pollution control, Carbon monoxide, entry for Chapter 4, Section 403 and Incorporation by reference, adding a new entry for Chapter 15. The C. Petitions for Judicial Review Intergovernmental relations, Nitrogen amendments read as follows: Under section 307(b)(1) of the CAA, dioxide, Ozone, Particulate matter, § 52.470 Identification of plan. petitions for judicial review of this Reporting and recordkeeping action must be filed in the United States requirements, Volatile organic * * * * * Court of Appeals for the appropriate compounds. (c) * * *

EPA–APPROVED DISTRICT OF COLUMBIA REGULATIONS

State ef- State citation Title/subject fective EPA approval date Additional explanation date

******* Chapter 15 General and Transportation Conformity

Section 1500 ...... General Conformity— 1/8/10 5/28/10 [Insert page number where the document New Regulation. Purpose. begins]. Section 1501 ...... General Conformity— 1/8/10 5/28/10 [Insert page number where the document New Regulation. Requirements. begins]. Section 1502 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Purpose. begins]. Section 1503 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Consultation begins]. Process. Section 1504 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Interagency begins]. Consultation Require- ments. Section 1505 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Conflict Res- begins]. olution Associated With Conformity Deter- minations. Section 1506 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Public Con- begins]. sultation Procedures. Section 1507 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Interagency begins]. Consultation Proce- dures. Section 1508 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Procedures begins]. for Determining Re- gional Transportation- Related Emissions. Section 1509 ...... Transportation Con- 1/8/10 5/28/10 [Insert page number where the document New Regulation. formity—Enforceability begins]. of Design Concept and Scope and Project-Level Mitiga- tion and Control Meas- ures.

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EPA–APPROVED DISTRICT OF COLUMBIA REGULATIONS—Continued

State ef- State citation Title/subject fective EPA approval date Additional explanation date

Section 1599 ...... Definitions ...... 1/8/10 5/28/10 [Insert page number where the document New Regulation. begins].

******

* * * * * Facility is open from 8:30 a.m. to 4:30 June 15, 2007 (40 CFR 51.908(a), and [FR Doc. 2010–12929 Filed 5–27–10; 8:45 am] p.m., Monday through Friday, excluding (c)). BILLING CODE 6560–50–P legal holidays. The Docket telephone number is 212–637–4249. II. What was included in New York’s submittals? FOR FURTHER INFORMATION CONTACT: ENVIRONMENTAL PROTECTION Kirk On October 21, 2009 and November AGENCY J. Wieber ([email protected]), Air Programs Branch, Environmental 23, 2009, the New York State 40 CFR Part 52 Protection Agency, 290 Broadway, 25th Department of Environmental Floor, New York, New York 10007– Conservation (NYSDEC), submitted to [EPA–R02–OAR–2010–0131, FRL–9146–4] 1866, (212) 637–3381. EPA proposed revisions to the SIP which included State adopted revisions SUPPLEMENTARY INFORMATION: Approval and Promulgation of to two regulations which consist of, Implementation Plans; New York State Table of Contents respectively, Title 6 of the New York Implementation Plan Revision I. What is the history and time frame for State Code of Rules and Regulations (6 AGENCY: Environmental Protection Implementation Plan (SIP) submissions? NYCRR) Part 235, ‘‘Consumer Products’’ Agency (EPA). II. What was included in New York’s with a State effective date of October 15, submittals? 2009 and 6 NYCRR Part 239, ‘‘Portable ACTION: Final rule. III. What comments did EPA receive in Fuel Container Spillage Control’’ with a response to its proposal? State effective date of July 30, 2009. SUMMARY: The EPA is approving a IV. What is EPA’s conclusion? proposed revision to the New York State V. Statutory and Executive Order Reviews These revisions will provide volatile Implementation Plan (SIP) for ozone organic compound (VOC) emission concerning the control of volatile I. What is the history and time frame reductions to address, in part, organic compounds. The proposed SIP for State Implementation Plan (SIP) attainment of the 1997 8-hour ozone revision consists of amendments to Title submissions? standard in the New York portion of the 6 of the New York Codes, Rules and EPA’s Phase 1 8-hour ozone New York-Northern New Jersey-Long Regulations Part 235, ‘‘Consumer implementation rule, published on Island, NY–NJ–CT nonattainment area Products’’ and Part 239, ‘‘Portable Fuel April 30, 2004 (69 FR 23951), referred which is composed of the five boroughs Container Spillage Control.’’ The to as the Phase 1 Rule, specifies that of New York City and the surrounding intended effect of this action is to states must submit attainment counties of Nassau, Suffolk, Westchester approve control strategies, required by demonstrations to EPA by no later than and Rockland. These revisions will also the Clean Air Act, which will result in three years from the effective date of address, in part, the RACT and RACM emission reductions that will help designation, that is, submit them by requirements by providing VOC achieve attainment of the national June 15, 2007. emission reductions statewide. ambient air quality standards for ozone. On November 9, 2005, EPA published III. What comments did EPA receive in DATES: Effective Date: This rule will be Phase 2 of the 8-hour ozone response to its proposal? effective June 28, 2010. implementation rule (70 FR 71612), ADDRESSES: EPA has established a referred to as the Phase 2 Rule, which On March 2, 2010 (75 FR 9373), EPA docket for this action under Docket ID addressed the control obligations that proposed to approve the proposed No. EPA–R02–OAR–2010–0131. All apply to areas designated nonattainment revisions to the New York SIP for ozone documents in the docket are listed on for the 8-hour national ambient air concerning the amendments to 6 the http://www.regulations.gov Web quality standard. Among other things, NYCRR Parts 235 and 239. The reader site. Although listed in the index, some the Phase 1 and Phase 2 Rules outline is referred to that proposal for a more information is not publicly available, the SIP requirements and deadlines for detailed discussion of this action. No e.g., CBI or other information whose various requirements in areas comments were received in response to disclosure is restricted by statute. designated as moderate nonattainment. that proposal. Certain other material, such as For such areas, reasonably available IV. What is EPA’s conclusion? copyrighted material, is not placed on control technology (RACT) plans were the Internet and will be publicly due by September 2006 (40 CFR EPA has evaluated New York’s available only in hard copy form. 51.912(a)(2)). The rules further require submittal for consistency with the Clean Publicly available docket materials are that modeling and attainment Air Act, EPA regulations, and EPA available either electronically through demonstrations, reasonable further policy. EPA has determined that the http://www.regulations.gov or in hard progress plans, reasonably available revisions made to Part 235 and Part 239 copy at the Environmental Protection control measure (RACM) analysis, of Title 6 of the New York Codes, Rules Agency, Region 2 Office, Air Programs projection year emission inventories, and Regulations, entitled, ‘‘Consumer Branch, 290 Broadway, 25th Floor, New motor vehicle emissions budgets and Products’’ and ‘‘Portable Fuel Container York, NY 10007–1866. This Docket contingency measures were all due by Spillage Control,’’ respectively, meet the

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SIP revision requirements of the Clean • Does not impose an information Under section 307(b)(1) of the Clean Air Act with the following exceptions. collection burden under the provisions Air Act, petitions for judicial review of The provisions related to innovative of the Paperwork Reduction Act (44 this action must be filed in the United products exemptions in subpart 239–5, U.S.C. 3501 et seq.); States Court of Appeals for the variances in subpart 239–7 and alternate • Is certified as not having a appropriate circuit by July 27, 2010. test methods in subpart 239–8 do not significant economic impact on a Filing a petition for reconsideration by explicitly require submission of an substantial number of small entities the Administrator of this final rule does innovative product exemption, variance under the Regulatory Flexibility Act (5 not affect the finality of this action for or alternative test method to EPA for U.S.C. 601 et seq.); the purposes of judicial review nor does approval into the SIP. Since the rule • Does not contain any unfunded it extend the time within which a does not explicitly state that innovative mandate or significantly or uniquely petition for judicial review may be filed, product exemptions, variances or affect small governments, as described and shall not postpone the effectiveness alternative test methods have to be in the Unfunded Mandates Reform Act of such rule or action. This action may submitted to EPA for approval in the of 1995 (Pub. L. 104–4); not be challenged later in proceedings to SIP, there is the possibility that such • Does not have Federalism enforce its requirements. (See section exemptions, variances and alternatives implications as specified in Executive 307(b)(2).) will not be submitted for review and Order 13132 (64 FR 43255, August 10, List of Subjects in 40 CFR Part 52 approval into the SIP and therefore will 1999); not, even though approved by the State, • Is not an economically significant Environmental protection, Air become federally enforceable. Failure to regulatory action based on health or pollution control, Incorporation by submit such exemptions, variances or safety risks subject to Executive Order reference, Intergovernmental relations, alternatives to EPA for review and 13045 (62 FR 19885, April 23, 1997); Ozone, Reporting and recordkeeping approval can lead to sources not • Is not a significant regulatory action requirements, Volatile organic understanding that the original rule still subject to Executive Order 13211 (66 FR compounds. applies and can be enforced by the 28355, May 22, 2001); Dated: April 27, 2010. United States. In order to be federally • Is not subject to requirements of Judith A. Enck, enforceable, any exemption, variance or Section 12(d) of the National Regional Administrator, Region 2. alternative test method approved by Technology Transfer and Advancement ■ Chapter I, title 40 of the Code of NYSDEC must be approved by EPA into Act of 1995 (15 U.S.C. 272 note) because Federal Regulations is amended as the SIP. application of those requirements would follows: Therefore, EPA is approving the be inconsistent with the Clean Air Act; proposed revisions to Part 239, ‘‘Portable and PART 52—[AMENDED] Fuel Container Spillage Control’’ with a • Does not provide EPA with the State effective date of July 30, 2009, as discretionary authority to address, as ■ 1. The authority citation for part 52 part of the New York SIP with the appropriate, disproportionate human continues to read as follows: understanding that the specific health or environmental effects, using Authority: 42 U.S.C. 7401 et seq. application of provisions associated practicable and legally permissible with innovative product exemptions, methods, under Executive Order 12898 Subpart HH—New York variances, and alternate test methods, (59 FR 7629, February 16, 1994). ■ pursuant to Part 239, must be submitted In addition, this rule does not have 2. Section 52.1670 is amended by to EPA as SIP revisions. EPA is also tribal implications as specified by adding new paragraph (c)(114) to read approving the proposed revisions to Part Executive Order 13175 (65 FR 67249, as follows: 235, ‘‘Consumer Products’’ with a State November 9, 2000), because the SIP is § 52.1670 Identification of plans. effective date of October 15, 2009, as not approved to apply in Indian country * * * * * part of the New York SIP. located in the state, and EPA notes that (c) * * * it will not impose substantial direct V. Statutory and Executive Order (114) On October 21, 2009 and costs on tribal governments or preempt Reviews November 23, 2009, the New York State tribal law. Department of Environmental Under the Clean Air Act, the The Congressional Review Act, 5 Conservation (NYSDEC), submitted to Administrator is required to approve a U.S.C. 801 et seq., as added by the Small EPA proposed revisions to the SIP SIP submission that complies with the Business Regulatory Enforcement concerning control strategies which will provisions of the Act and applicable Fairness Act of 1996, generally provides result in volatile organic compound Federal regulations. 42 U.S.C. 7410(k); that before a rule may take effect, the emission reductions that will help 40 CFR 52.02(a). Thus, in reviewing SIP agency promulgating the rule must achieve attainment of the national submissions, EPA’s role is to approve submit a rule report, which includes a ambient air quality standards for ozone. state choices, provided that they meet copy of the rule, to each House of the (i) Incorporation by reference: the criteria of the Clean Air Act. Congress and to the Comptroller General (A) Title 6 of the New York Code of Accordingly, this action merely of the United States. EPA will submit a Rules and Regulations, Part 235, approves state law as meeting Federal report containing this action and other ‘‘Consumer Products,’’ with an effective requirements and does not impose required information to the U.S. Senate, date of October 15, 2009 and Part 239, additional requirements beyond those the U.S. House of Representatives, and ‘‘Portable Fuel Container Spillage imposed by state law. For that reason, the Comptroller General of the United Control,’’ with an effective date of July this action: States prior to publication of the rule in 30, 2009. • Is not a ‘‘significant regulatory the Federal Register. A major rule (ii) Additional information: action’’ subject to review by the Office cannot take effect until 60 days after it (A) Letters dated October 21, 2009 of Management and Budget under is published in the Federal Register. and November 23, 2009 from Assistant Executive Order 12866 (58 FR 51735, This action is not a ‘‘major rule’’ as Commissioner J. Jared Snyder, NYSDEC, October 4, 1993); defined by 5 U.S.C. 804(2). to George Pavlou, Acting Regional

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Administrator, EPA Region 2, ■ 3. In § 52.1679, the table is amended § 52.1679 EPA-approved New York State submitting the SIP revision for parts 235 by revising the entries for Title 6, Part regulations. and 239 respectively. 235 and Part 239 to read as follows:

State effec- New York State regulation tive date Latest EPA approval date Comments

*******...... Part 235, Consumer Products .. 10/15/09 5/28/10 [Insert FR page cita- tion].

*******...... Part 239, Portable Fuel Con- 7/30/09 5/28/10 [insert FR page cita- The specific application of provisions associated with alternate tainer Spillage Control. tion]. test methods, variances and innovative products, must be submitted to EPA as SIP revisions.

*******......

[FR Doc. 2010–12917 Filed 5–27–10; 8:45 am] the Internet and will be publicly Category ...... Examples of potentially BILLING CODE 6560–50–P available only in hard copy form. affected entities. Publicly available docket materials are Industry ...... Industries discharging available either electronically through pollutants to surface ENVIRONMENTAL PROTECTION http://www.regulations.gov or in hard waters in Pennsyl- AGENCY copy at the OW Docket Center. This vania. Docket Facility is open from 8:30 a.m. Municipalities .... Publicly-owned treat- 40 CFR Part 131 ment works dis- to 4:30 p.m., Monday through Friday, charging pollutants to [EPA–HQ–OW–2007–93; FRL–9156–5] excluding legal holidays. The Docket surface waters in telephone number is (202) 566–2426, Pennsylvania. RIN NA2040 and the Docket address is OW Docket, This table is not intended to be EPA West, Room 3334, 1301 Withdrawal of Federal Antidegradation exhaustive, but rather provides a guide Constitution Ave., NW., Washington, Policy for all Waters of the United for readers regarding NPDES-regulated DC 20004. The Public Reading Room is States Within the Commonwealth of entities likely to be affected by this open from 8:30 a.m. to 4:30 p.m., Pennsylvania action. This table lists the types of Monday through Friday, excluding legal entities that EPA is now aware could AGENCY: Environmental Protection holidays. The telephone number for the potentially be affected by this action. Agency (EPA). Public Reading Room is (202) 566–1744. II. Background ACTION: Final Rule. FOR FURTHER INFORMATION CONTACT: Janita Aguirre at EPA Headquarters, Section 303 (33 U.S.C. 1313) of the SUMMARY: EPA is taking final action on Clean Water Act (CWA or Act) directs a 2008 proposal to withdraw the Federal Office of Water (4305T), 1200 Pennsylvania Ave., NW., Washington, States, with oversight by EPA, to adopt antidegradation policy for all waters of water quality standards to protect the the United States within the DC 20460 (telephone: 202–566–1149, fax: 202–566–0409 or e-mail: public health and welfare, enhance the Commonwealth of Pennsylvania. We are quality of water and serve the purposes withdrawing the Federal [email protected]) or Denise Hakowski at EPA Region 3 (3WP30), of the CWA. Under section 303, States antidegradation policy to allow are required to develop water quality Pennsylvania to implement its own 1650 Arch Street, Philadelphia, Pennsylvania 19103 (telephone: 215– standards for their navigable waters, and antidegradation policy. Pennsylvania Section 303(c) and EPA’s implementing has adequately demonstrated that its 814–5726, fax: 215–814–2318 or e-mail: [email protected]). regulations at 40 CFR part 131 require antidegradation policy protects all State and Tribal water quality standards waters of the United States at a level SUPPLEMENTARY INFORMATION: to include the designated use or uses to consistent with the Federal I. Potentially Affected Entities be made of the waters, water quality requirements under the Clean Water criteria sufficient to protect those uses, Act. Therefore, the Federal Citizens concerned with water quality and an antidegradation policy. Under antidegradation policy is redundant. in Pennsylvania may be interested in the CWA and EPA’s regulations, States DATES: This final rule is effective on this rulemaking. Entities discharging are required to review their water June 28, 2010. pollutants to the surface waters of quality standards at least once every ADDRESSES: EPA has established a Pennsylvania could be indirectly three years and, if appropriate, revise or docket for this action under Docket ID affected by this rulemaking since water adopt new standards. The results of this No. EPA–HQ–OW–2007–93. All quality standards are used in triennial review must be submitted to documents in the docket are listed on determining National Pollutant EPA, and EPA must approve or the http://www.regulations.gov Web Discharge Elimination System (NPDES) disapprove any new or revised site. Although listed in the index, some permit limits. Because this action standards. Section 303(c) of the CWA information is not publicly available, withdraws a redundant Federal authorizes the EPA Administrator to e.g., CBI or other information whose antidegradation policy, the effect of this promulgate water quality standards to disclosure is restricted by statute. rulemaking should be insignificant. supersede State standards that EPA has Certain other material, such as Categories and entities which may disapproved or in any case where the copyrighted material, is not placed on ultimately be affected include: Administrator determines that a new or

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revised standard is needed to meet the terms of Executive Order 12866 (58 FR direct effects on the States, on the CWA’s requirements. 51735, October 4, 1993) and is therefore relationship between the national In June 1994, EPA disapproved not subject to Office of Management and government and the States, or on the Pennsylvania’s antidegradation Budget (OMB) review. distribution of power and regulation after determining the responsibilities among the various B. Paperwork Reduction Act regulation was not consistent with the levels of government, as specified in Federal antidegradation regulation This action does not impose any new Executive Order 13132. Thus, Executive found at 40 CFR 131.12. When the information collection burden because it Order 13132 does not apply to this Pennsylvania Department of is administratively withdrawing Federal action. Environmental Protection (PADEP) did requirements that no longer need to not act within the statutory timeframe to apply in Pennsylvania. However, the F. Executive Order 13175 (Consultation address EPA’s findings, EPA Office of Management and Budget and Coordination With Indian Tribal promulgated a Federal antidegradation (OMB) has previously approved the Governments) policy for all waters of the United States information collection requirements This rule does not have Tribal within the Commonwealth of contained in the existing regulations 40 implications, as specified in Executive Pennsylvania at 40 CFR 131.32 on CFR part 131 under the provisions of Order 13175 (65 FR 67249, November 9, December 9, 1996 (61 FR 64816). In the Paperwork Reduction Act, 44 U.S.C. 2000). This rule imposes no regulatory August 1999, PADEP submitted to EPA 3501 et seq. and has assigned OMB requirements or costs on any Tribal revisions to its antidegradation policy control number 2040–0049. The OMB government. It does not have substantial found in 25 Pa. Code Chapter 93. On control numbers for EPA’s regulations direct effects on Tribal governments, on March 17, 2000, EPA approved most of in 40 CFR are listed in 40 CFR part 9. the relationship between the Federal government and Indian Tribes, or on the the revisions to Pennsylvania’s C. Regulatory Flexibility Act regulations as meeting the requirements distribution of power and of Federal regulations at 40 CFR The Regulatory Flexibility Act (RFA) responsibilities between the Federal 131.12(a)(1) and 131.12(a)(2), but (5 U.S.C. 601 et seq.), as amended by the government and Indian Tribes. Thus, withheld action on Section 93.4b, Small Business Regulatory Enforcement Executive Order 13175 does not apply PADEP’s Exceptional Value (EV) Waters Fairness Act of 1996, generally requires to this rule. an agency to prepare a regulatory designation, or Tier 3, until PADEP G. Executive Order 13045 (Protection of ensured that EV designated waters flexibility analysis of a rule that is subject to notice and comment Children From Environmental Health would be protected at the level and Safety Risks) consistent with Federal regulations at 40 rulemaking requirements under the CFR 131.12(a)(3). In 2003, PADEP Administrative Procedure Act or any This rule is not subject to E.O. 13045, published ‘‘Water Quality other statute unless the agency certifies entitled ‘‘Protection of Children from Antidegradation Implementation that the rule will not have a significant Environmental Risks and Safety Risks’’ Guidance’’ (Document Number 391– economic impact on a substantial (62 FR 19885, April 23, 1997) because 0300–002). In it, PADEP provides number of small entities. This action it is not economically significant and guidance to its staff and information to imposes no regulatory requirements or EPA has no reason to believe the help the regulated community and the costs on any small entity. Therefore, I environmental health or safety risks public understand the implementation certify that this action will not have a addressed by this action present a of the antidegradation policy in significant impact on a substantial disproportionate risk to children. Pennsylvania. Based on a review of the number of small entities. H. Executive Order 13211 (Actions That document in combination with the D. Unfunded Mandates Reform Act Significantly Affect Energy Supply, PADEP’s antidegradation regulation, Title III of the Unfunded Mandates Distribution or Use) EPA approved PADEP’s antidegradation Reform Act (UMRA) (Pub. L. 104–4) This action is not subject to Executive policy for Tier 3 waters on March 7, establishes requirements for Federal Order 13211 (66 FR 28355 (May 22, 2007. Because Pennsylvania now has an agencies to assess the effects of their 2001)), because it is not a significant EPA-approved antidegradation policy regulatory actions on State, Tribal, and regulatory action under Executive Order meeting the Federal requirements at 40 local governments and the private 12866. CFR 131.12, the Federal antidegradation sector. Today’s rule contains no Federal regulation promulgated by EPA for I. National Technology Transfer mandates (under the regulatory Pennsylvania is no longer needed and Advancement Act of 1995 provisions of Title II of the UMRA) for EPA is withdrawing it with this action. State, Tribal, or local governments or Section 12(d) of the National III. Statutory and Executive Order the private sector because it imposes no Technology Transfer and Advancement Review enforceable duty on any of these Act of 1995 (‘‘NTTAA’’), Public Law entities. Thus, today’s rule is not subject 104–113, 12(d) (15 U.S.C. 272 note), A. Executive Order 12866 (Regulatory directs EPA to use voluntary consensus Planning and Review) to the requirements of UMRA sections 202 and 205 for a written statement and standards in its regulatory activities This action withdraws Federal small government agency plan. unless to do so would be inconsistent requirements applicable in Similarly, EPA has determined that with applicable law or otherwise Pennsylvania and imposes no regulatory this rule contains no regulatory impractical. Voluntary consensus requirements or costs on any person or requirements that might significantly or standards are technical standards (e.g., entity. It does not interfere with the uniquely affect small governments and materials specifications, test methods, action or planned action of another is therefore not subject to UMRA section sampling procedures, and business agency, and does not have any 203. practices) that are developed or adopted budgetary impacts or raise novel legal or by voluntary consensus standards policy issues. Thus, it has been E. Executive Order 13132 (Federalism) bodies. NTTAA directs EPA to provide determined that this rule is not a This rule does not have federalism Congress, through OMB, explanations ‘‘significant regulatory action’’ under the implications. It will not have substantial when the Agency decides not to use

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available and applicable voluntary Dated: May 21, 2010. copyrighted material, is not placed on consensus standards. Lisa P. Jackson, the Internet and will be publicly The requirements of section 12(d) of Administrator. available only in hard copy form. the NTTAA do not apply because this ■ For the reasons set out in the Publicly available docket materials are rule does not involve technical preamble, title 40, chapter I of the Code available in the electronic docket at standards. Therefore, EPA did not of Federal Regulations is amended as http://www.regulations.gov, or, if only consider the use of any voluntary follows: available in hard copy, at the OPP consensus standards. Regulatory Public Docket in Rm. S– PART 131—WATER QUALITY 4400, One Potomac Yard (South Bldg.), J. Executive Order 12898 (Federal STANDARDS 2777 S. Crystal Dr., Arlington, VA. The Actions To Address Environmental Docket Facility is open from 8:30 a.m. Justice in Minority Populations and ■ 1. The authority citation for part 131 to 4 p.m., Monday through Friday, Low-Income Populations) continues to read as follows: excluding legal holidays. The Docket Executive Order (EO) 12898 (59 FR Authority: 33 U.S.C. 1251 et seq. Facility telephone number is (703) 305– 7629 (Feb. 16, 1994)) establishes Federal § 131.32 [Removed and Reserved] 5805. executive policy on environmental FOR FURTHER INFORMATION CONTACT: justice. Its main provision directs ■ 2. Section 131.32 is removed and Shaja Joyner, Registration Division Federal agencies, to the greatest extent reserved. practicable and permitted by law, to (7505P), Office of Pesticide Programs, [FR Doc. 2010–12933 Filed 5–27–10; 8:45 am] Environmental Protection Agency, 1200 make environmental justice part of their BILLING CODE 6560–50–P mission by identifying and addressing, Pennsylvania Ave., NW., Washington, as appropriate, disproportionately high DC 20460–0001; telephone number: and adverse human health or (703) 308–3194; e-mail address: ENVIRONMENTAL PROTECTION [email protected]. environmental effects of their programs, AGENCY policies, and activities on minority SUPPLEMENTARY INFORMATION: populations and low-income 40 CFR Part 180 populations in the United States. I. General Information [EPA–HQ–OPP–2009–0268; FRL–8826–4] EPA has determined that this final A. Does this Action Apply to Me? rule will not have disproportionately Boscalid; Pesticide Tolerances high and adverse human health or You may be potentially affected by environmental effects on minority or AGENCY: Environmental Protection this action if you are an agricultural low-income populations because it does Agency (EPA). producer, food manufacturer, or not affect the level of protection ACTION: Final rule. pesticide manufacturer. Potentially provided to human health or the affected entities may include, but are SUMMARY: This regulation establishes environment. As explained above, EPA tolerances for residues of boscalid in or not limited to those engaged in the has approved Pennsylvania’s on multiple commodities which are following activities: antidegradation policy because it is identified and discussed later in this • Crop production (NAICS code 111). consistent with 40 CFR 131.12. This document. This regulation additionally • rule withdraws a redundant Animal production (NAICS code revises established tolerances in or on antidegradation policy. 112). fruit, stone, group 12; hog, fat; poultry, • Food manufacturing (NAICS code K. Congressional Review Act fat; and poultry, meat byproducts. 311). Finally, this regulation deletes the time- The Congressional Review Act, 5 limited tolerance on tangerine as it • Pesticide manufacturing (NAICS U.S.C. 801 et seq., as added by the Small expired on December 31, 2008. BASF code 32532). Business Regulatory Enforcement Corporation requested these tolerances Fairness Act of 1996, generally provides This listing is not intended to be under the Federal Food, Drug, and that before a rule may take effect, the exhaustive, but rather to provide a guide Cosmetic Act (FFDCA). agency promulgating the rule must for readers regarding entities likely to be submit a rule report, which includes a DATES: This regulation is effective May affected by this action. Other types of copy of the rule, to each House of the 28, 2010. Objections and requests for entities not listed in this unit could also Congress and to the Comptroller General hearings must be received on or before be affected. The North American of the United States. EPA will submit a July 27, 2010, and must be filed in Industrial Classification System report containing this rule and other accordance with the instructions (NAICS) codes have been provided to required information to the U.S. Senate, provided in 40 CFR part 178 (see also assist you and others in determining the U.S. House of Representatives, and Unit I.C. of the SUPPLEMENTARY whether this action might apply to the Comptroller General of the United INFORMATION). certain entities. If you have any States prior to publication of the rule in ADDRESSES: EPA has established a questions regarding the applicability of the Federal Register. A major rule docket for this action under docket this action to a particular entity, consult cannot take effect until 60 days after it identification (ID) number EPA–HQ– the person listed under FOR FURTHER is published in the Federal Register. OPP–2009–0268. All documents in the INFORMATION CONTACT. This action is not a ‘‘major rule’’ as docket are listed in the docket index B. How Can I Get Electronic Access to defined by 5 U.S.C. 804(2). This rule available at http://www.regulations.gov. Other Related Information? will be effective on June 28, 2010. Although listed in the index, some information is not publicly available, You may access a frequently updated List of Subjects in 40 CFR Part 131 e.g., Confidential Business Information electronic version of EPA’s tolerance Environmental protection, (CBI) or other information whose regulations at 40 CFR part 180 through Antidegradation, Water quality disclosure is restricted by statute. the Government Printing Office’s e-CFR standards. Certain other material, such as site at www.gpoaccess.gov/ecfr.

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C. How Can I File an Objection or CFR 180.589 be amended by EPA’s assessment of exposures and risks Hearing Request? establishing tolerances for residues of associated with boscalid follows. the fungicide boscalid, 3- Under FFDCA section 408(g), 21 A. Toxicological Profile pyridinecarboxamide, 2-chloro-N-(4’- U.S.C. 346a, any person may file an ′ EPA has evaluated the available objection to any aspect of this regulation chloro[1,1 -biphenyl]-2-yl), in or on alfalfa, forage at 35 part per million toxicity data and considered its validity, and may also request a hearing on those completeness, and reliability as well as objections. You must file your objection (ppm); alfalfa, hay at 85 ppm; and citrus, crop group 10 at 2 ppm. PP the relationship of the results of the or request a hearing on this regulation 9F7529 requested to increase the studies to human risk. EPA has also in accordance with the instructions existing tolerance in or on fruit, stone, considered available information provided in 40 CFR part 178. To ensure group 12 from 1.7 ppm to 5 ppm. That concerning the variability of the proper receipt by EPA, you must notice referenced a summary of the sensitivities of major identifiable identify docket ID number EPA–HQ– petition prepared by BASF Corporation, subgroups of consumers, including OPP–2009–0268 on the subject line on the registrant, which is available in the infants and children. the first page of your submission. All docket, http://www.regulations.gov. Boscalid has low acute toxicity via the objections and requests for a hearing There were no comments received in oral, dermal, and inhalation routes of must be in writing, and must be response to the notice of filing. exposure, and it is not an eye or skin received by the Hearing Clerk on or Based upon review of the data irritant. Following subchronic and before July 27, 2010. Addresses for mail supporting the petition, EPA has revised chronic exposure to boscalid, the liver and hand delivery of objections and several proposed tolerances and has and thyroid appeared to be the target hearing requests are provided in 40 CFR determined that separate tolerances are organs in several species. In mice, 178.25(b). necessary for citrus, dried pulp and subchronic exposure to boscalid In addition to filing an objection or citrus, oil. The Agency has also revised resulted in increased liver weights and hearing request with the Hearing Clerk several established livestock an increased incidence of marked fatty as described in 40 CFR part 178, please commodities. Finally, EPA has revised changes in the liver. Subchronic and submit a copy of the filing that does not the tolerance expression for all chronic studies in dogs resulted in contain any CBI for inclusion in the established commodities to be increases in alkaline phosphatase levels public docket. Information not marked consistent with current Agency policy. as well as hepatic weights. In confidential pursuant to 40 CFR part 2 The reasons for these changes are subchronic and chronic studies in rats, may be disclosed publicly by EPA explained in Unit IV.C. thyroid changes (including increases in without prior notice. Submit a copy of weights and incidences of follicular cell your non-CBI objection or hearing III. Aggregate Risk Assessment and hyperplasia and hypertrophy) were request, identified by docket ID number Determination of Safety considered to have been the result of EPA–HQ–OPP–2009–0268, by one of Section 408(b)(2)(A)(i) of FFDCA liver adaptive responses. Additionally, the following methods: allows EPA to establish a tolerance (the in three mechanistic rat studies, • Federal eRulemaking Portal: http:// legal limit for a pesticide chemical increases in liver microsomal activity, www.regulations.gov. Follow the on-line residue in or on a food) only if EPA induction of total cytochrome P450 instructions for submitting comments. determines that the tolerance is ‘‘safe.’’ activity, and disruption of thyroid • Mail: Office of Pesticide Programs Section 408(b)(2)(A)(ii) of FFDCA homeostasis (by decreasing circulating (OPP) Regulatory Public Docket (7502P), defines ‘‘safe’’ to mean that ‘‘there is a T3 and T4 and increasing TSH resulting Environmental Protection Agency, 1200 reasonable certainty that no harm will from hepatic microsomal Pennsylvania Ave., NW., Washington, result from aggregate exposure to the glucuronyltransferase) were noted. The DC 20460–0001. pesticide chemical residue, including liver and thyroid effects were reversed • Delivery: OPP Regulatory Public all anticipated dietary exposures and all with the cessation of test article Docket (7502P), Environmental other exposures for which there is administration. Protection Agency, Rm. S–4400, One reliable information.’’ This includes In the rabbit developmental toxicity Potomac Yard (South Bldg.), 2777 S. exposure through drinking water and in study, abortions and early deliveries Crystal Dr., Arlington, VA. Deliveries residential settings, but does not include were observed in at the highest dose are only accepted during the Docket occupational exposure. Section tested. Decreased pup body weights Facility’s normal hours of operation 408(b)(2)(C) of FFDCA requires EPA to and/or body weight gains were noted in (8:30 a.m. to 4 p.m., Monday through give special consideration to exposure both the 2-generation reproductive Friday, excluding legal holidays). of infants and children to the pesticide toxicity study in rats and in the rat Special arrangements should be made chemical residue in establishing a developmental neurotoxicity (DNT) for deliveries of boxed information. The tolerance and to ‘‘ensure that there is a study at a level that did not induce Docket Facility telephone number is reasonable certainty that no harm will parental toxicity. (703) 305–5805. result to infants and children from In two chronic/carcinogenicity aggregate exposure to the pesticide studies in rats that were assessed II. Summary of Petitioned-For chemical residue. . . . ’’ together, statistically significant Tolerance Consistent with section 408(b)(2)(D) increases in thyroid follicular cell In the Federal Register of August 19, of FFDCA, and the factors specified in adenomas and significant differences in 2009 (74 FR 41898) (FRL–8426–7), EPA section 408(b)(2)(D) of FFDCA, EPA has a pair-wise comparison with the issued a notice pursuant to section reviewed the available scientific data controls were noted in males; thyroid 408(d)(3) of FFDCA, 21 U.S.C. and other relevant information in hypertrophy and hyperplasia of 346a(d)(3), announcing the filing of support of this action. EPA has follicular cells, as well as increased pesticide petitions PP 9F7527 and PP sufficient data to assess the hazards of thyroid weights and mechanistic data 9F7529 by BASF Corporation, Research and to make a determination on were also noted. Female rats exhibited Triangle Park, NC 27709. PP 9F7527, aggregate exposure for boscalid a slightly significant increase in thyroid which was incorrectly written as PP including exposure resulting from the follicular cell adenomas in these 9F7529 in the notice, requested that 40 tolerances established by this action. studies. A carcinogenicity study in mice

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showed no evidence of tumor formation 41–44 in docket ID number EPA–HQ– safety factors are used in conjunction in either sex, and no evidence of OPP–2009–0268. with the POD to calculate a safe exposure level-generally referred to as a malignancies or mutagenicity was found B. Toxicological Points of Departure/ population-adjusted dose (PAD) or a in the toxicity database for boscalid. Levels of Concern Based on the overall weak evidence of reference dose (RfD) and a safe margin carcinogenic effects, EPA has classified Once a pesticide’s toxicological of exposure (MOE). For non-threshold boscalid as having suggestive evidence profile is determined, EPA identifies risks, the Agency assumes that any of carcinogenicity. toxicological points of departure (POD) amount of exposure will lead to some and levels of concern to use in degree of risk. Thus, the Agency Specific information on the studies evaluating the risk posed by human estimates risk in terms of the probability received and the nature of the adverse exposure to the pesticide. For hazards of an occurrence of the adverse effect effects caused by boscalid as well as the that have a threshold below which there expected in a lifetime. For more no-observed-adverse-effect-level is no appreciable risk, the toxicological information on the general principles (NOAEL) and the lowest-observed- POD is used as the basis for derivation EPA uses in risk characterization and a adverse-effect-level (LOAEL) from the of reference values for risk assessment. complete description of the risk toxicity studies can be found at http:// PODs are developed based on a careful assessment process, see http:// www.regulations.gov in document: analysis of the doses in each www.epa.gov/pesticides/factsheets/ ‘‘Boscalid. Human Health Risk toxicological study to determine the riskassess.htm. Assessment for Proposed Use on Alfalfa dose at which no adverse effects are A summary of the toxicological and Citrus (Crop Group 10), and for observed (the NOAEL) and the lowest endpoints for boscalid used for human Proposed Increase in Tolerance on dose at which adverse effects of concern risk assessment is shown in Table 1 of Stone Fruits (Crop Group 12).’’ Pages are identified (the LOAEL). Uncertainty/ this unit.

TABLE 1.—SUMMARY OF TOXICOLOGICAL DOSES AND ENDPOINTS FOR BOSCALID FOR USE IN HUMAN HEALTH RISK ASSESSMENT

Point of Departure and Un- RfD, PAD, LOC for Risk Exposure/Scenario certainty/Safety Factors Assessment Study and Toxicological Effects

Acute dietary (Females 13–50 No appropriate endpoint attributable to a single dose was available in the current database, including years of age; and general popu- the developmental toxicity studies. Therefore, an aRfD and aPAD were not established for any pop- lation including infants and chil- ulation. dren)

Chronic dietary NOAEL = 21.8 mg/kg/day Chronic RfD = 0.218 mg/ Combined results of chronic rat, carcino- (All populations) UFA = 10x kg/day genicity rat, and 1–year dog studies UFH = 10x cPAD = 0.218 mg/kg/day LOAEL = 57 mg/kg/day based on liver and FQPA SF = 1x thyroid effects

Dermal short-term Dermal (or oral) study LOC for MOE = 100 Combined results of chronic rat, carcino- (1 to 30 days) NOAEL = 21.8 mg/kg/ genicity rat, and 1–year dog studies day (dermal absorption LOAEL = 57 mg/kg/day based on liver and rate = 15%) thyroid effect. UFA = 10x UFH = 10x FQPA SF = 1x

Cancer (Oral, dermal, inhalation) Classification: Suggestive evidence of carcinogenicity. The cRfD is protective of cancer effects. Quan- tification of human cancer risk is not necessary.

UFA = extrapolation from animal to human (interspecies). UFH = potential variation in sensitivity among members of the human population (intraspecies). FQPA SF = Food Quality Protection Act Safety Factor. PAD = population adjusted dose (a = acute, c = chronic). RfD = reference dose. MOE = margin of exposure. LOC = level of concern.

Additional information regarding the EPA assessed dietary exposures from assessment, EPA used the food toxicological endpoints for boscalid boscalid in food as follows: consumption data from the United used for human risk assessment can be i. Acute exposure. Quantitative acute States Department of Agriculture found at http://www.regulations.gov in dietary exposure and risk assessments (USDA) 1994–1996 and 1998 docket ID numbers EPA–HQ–OPP– are performed for a food-use pesticide, Nationwide Continuing Surveys of Food 2009–0268 and EPA–HQ–OPP–2005– if a toxicological study has indicated the Intake by Individuals (CSFII). As to 0145. possibility of an effect of concern residue levels in food, EPA utilized occurring as a result of a 1–day or single tolerance-level residues and assumed C. Exposure Assessment exposure. No such effects were 100 percent crop treated (PCT) data for 1. Dietary exposure from food and identified in the toxicological studies all commodities. feed uses. In evaluating dietary for boscalid; therefore, a quantitative exposure to boscalid, EPA considered acute dietary exposure assessment is iii. Cancer. As discussed in Unit exposure under the petitioned-for unnecessary. III.A., EPA has classified boscalid as tolerances as well as all existing ii. Chronic exposure. In conducting having suggestive evidence of boscalid tolerances in 40 CFR 180.589. the chronic dietary exposure carcinogenicity due to some evidence of

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thyroid follicular cell adenomas in male and adolescent (12 years of age or older) therefore, EPA has assumed that and female rats. Nonetheless, EPA golfers, short-term post-application boscalid does not have a common concluded that the cPAD would be dermal exposure to turf treated with mechanism of toxicity with other protective of these effects based on the boscalid was assessed. PYO activities substances. For information regarding following: may result in potential acute post- EPA’s efforts to determine which The adenomas occurred at dose levels application exposure to boscalid; chemicals have a common mechanism above the level used to establish the however, because no adverse effects of toxicity and to evaluate the cPAD, statistically significant increases were noted in the boscalid toxicity cumulative effects of such chemicals, were only seen for benign tumors database resulting from a single see EPA’s website at http:// (adenomas) and not for malignant ones exposure to the chemical, a post- www.epa.gov/pesticides/cumulative. (carcinomas), the increase in adenomas application exposure and risk D. Safety Factor for Infants and in females was slight, and there was no assessment is not necessary for this Children concern for mutagenicity. EPA’s scenario. Further information regarding estimate of chronic exposure as EPA standard assumptions and generic 1. In general. Section 408(b)(2)(C) of described above is relied upon to inputs for residential exposures may be FFDCA provides that EPA shall apply evaluate whether any exposure could found at http://www.epa.gov/pesticides/ an additional tenfold (10X) margin of exceed the cPAD and thus pose a cancer trac/science/trac6a05.pdf. safety for infants and children in the risk. EPA also notes that while adolescents case of threshold effects to account for iv. Anticipated residue and PCT are likely to represent the vast majority prenatal and postnatal toxicity and the information. EPA did not use of youth who play golf on a routine completeness of the database on toxicity anticipated residue or PCT information basis, it is possible for younger children and exposure unless EPA determines in the dietary assessment for boscalid. (less than 12 years old) to be exposed to based on reliable data that a different Tolerance level residues or 100 PCT golf course turf that has been treated margin of safety will be safe for infants were assumed for all food commodities. with boscalid. However, assessing risk and children. This additional margin of 2. Dietary exposure from drinking for younger golfers is difficult because safety is commonly referred to as the water. The Agency used screening level of the uncertainties associated with the FQPA Safety Factor (SF). In applying water exposure models in the dietary extrapolation of adult dermal exposure this provision, EPA either retains the exposure analysis and risk assessment data and because of the increased default value of 10X, or uses a different for boscalid in drinking water. These likelihood of other behaviors that might additional safety factor when reliable simulation models take into account contribute to exposure, such as data available to EPA support the choice data on the physical, chemical, and fate/ incidental oral exposure resulting from of a different factor. transport characteristics of boscalid. contact with treated turf. Therefore, 2. Prenatal and postnatal sensitivity. Further information regarding EPA younger golfers were assessed The prenatal and postnatal toxicology drinking water models used in pesticide qualitatively for this exposure scenario database for boscalid includes rat and exposure assessment can be found at after selecting an appropriate target age rabbit prenatal developmental toxicity http://www.epa.gov/oppefed1/models/ of 5 years old to assess risk. The surface studies, a 2-generation reproductive water/index.htm. area to body weight ratio (SA/BW) for toxicity study in rats, and a DNT study Based on the First Index Reservoir male children, when calculated and in rats. No qualitative or quantitative Screening Tool (FIRST) and Screening compared to that of the average adult, evidence of increased susceptibility was Concentration in Ground Water (SCI- was found to be approximately 70% noted in the developmental toxicity GROW) models, the estimated drinking greater. Based on this parameter alone, study in rats. However, in the 2- water concentrations (EDWCs) of the exposure to children could be generation reproduction study in rats, boscalid for chronic exposures for non- almost twice that of the adult golfer; body weight effects were seen in the cancer assessments are estimated to be however, younger golfers are not mid and high doses in the second 29.6 parts per billion (ppb) for surface expected to use the golf course for the generation male pups. However, the water and 0.63 ppb for ground water. same length of time as an adult. The degree of concern is low for the Modeled estimates of drinking water shorter duration on the golf course for quantitative evidence of susceptibility concentrations were directly entered younger golfers offsets the higher SA/ seen in this study, since the body into the dietary exposure model. For BW; therefore, risks from short-term weight effects were seen in only one sex chronic dietary risk assessment, the post-application exposures to young and only after dosing for two water concentration of value 29.6 ppb golfers are likely to be similar to risks generations. Also, there is a clear was used to assess the contribution to for adult golfers. NOAEL for the body weight effects seen drinking water. 4. Cumulative effects from substances in the rat 2-generation reproduction 3. From non-dietary exposure. The with a common mechanism of toxicity. study, and EPA is regulating based on term ‘‘residential exposure’’ is used in Section 408(b)(2)(D)(v) of FFDCA a POD below where these effects were this document to refer to non- requires that, when considering whether seen. occupational, non-dietary exposure to establish, modify, or revoke a In the rat DNT study, transient body (e.g., for lawn and garden pest control, tolerance, the Agency consider weight effects were seen in one sex at indoor pest control, termiticides, and ‘‘available information’’ concerning the postnatal days 1–4 with the animals flea and tick control on pets). cumulative effects of a particular recovering by postnatal day 11. Body Boscalid is currently registered for use pesticide’s residues and ‘‘other weight effects were also seen in the high on turf at golf courses and for use on substances that have a common dose, which was the limit dose. The several fruit commodities at ‘‘pick-your- mechanism of toxicity.’’ degree of concern for these effects is low own’’ (PYO) farms and orchards; EPA has not found boscalid to share since the effects were either transient in therefore, post-application exposure to a common mechanism of toxicity with nature or occurred at the limit dose, and golfers and people harvesting fruit at any other substances, and boscalid does EPA is regulating based on a POD below PYO farms and orchards is possible. not appear to produce a toxic metabolite where these effects were seen. In the EPA assessed residential exposure using produced by other substances. For the rabbit developmental study there was the following assumptions: For adult purposes of this tolerance action, evidence of qualitative sensitivity;

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however, fetal effects were seen only at drinking water. EPA used similarly for boscalid is a MOE of 100 or below, the limit dose in the presence of conservative assumptions to assess post- these MOEs are not of concern. maternal toxicity. Further, since EPA is application exposure of adult golfers, 4. Intermediate-term risk. regulating based on a POD which is an which is expected to be similar to Intermediate-term aggregate exposure order of magnitude below where these potential post-application exposure of takes into account intermediate-term effects were seen in the rabbit children. These assessments will not residential exposure plus chronic developmental study, EPA concludes underestimate the exposure and risks exposure to food and water (considered that there is a low degree of concern for posed by boscalid. to be a background exposure level). An the qualitative sensitivity evidenced in E. Aggregate Risks and Determination of intermediate-term adverse effect was the fetuses in the rabbit developmental Safety identified; however, boscalid is not study. registered for any use patterns that 3. Conclusion. EPA has determined EPA determines whether acute and would result in intermediate-term that reliable data show the safety of chronic dietary pesticide exposures are residential exposure. Intermediate-term infants and children would be safe by comparing aggregate exposure risk is assessed based on intermediate- adequately protected if the FQPA SF estimates to the acute PAD (aPAD) and term residential exposure plus chronic were reduced to 1X. That decision is chronic PAD (cPAD). For linear cancer dietary exposure. Because there is no based on the following findings: risks, EPA calculates the lifetime intermediate-term residential exposure i. The toxicity database for boscalid is probability of acquiring cancer given the and chronic dietary exposure has complete, except for immunotoxicity estimated aggregate exposure. Short- already been assessed under the testing. Recent changes to 40 CFR part term, intermediate-term, and chronic- appropriately protective cPAD (which is 158 make immunotoxicity testing term risks are evaluated by comparing at least as protective as the POD used to (OPPTS Guideline 870.7800) required the estimated aggregate food, water, and assess intermediate-term risk), no for pesticide registration; however, the residential exposure to the appropriate further assessment of intermediate-term existing data are sufficient for endpoint PODs to ensure that an adequate MOE risk is necessary, and EPA relies on the selection for exposure/risk assessment exists. chronic dietary risk assessment for 1. Acute risk. An acute aggregate risk scenarios, and for evaluation of the evaluating intermediate-term risk for assessment takes into account acute requirements under the FQPA. The boscalid. exposure estimates from dietary available data for boscalid show no 5. Aggregate cancer risk for U.S. consumption of food and drinking evidence of treatment-related effects on population. Based on the discussion in water. No adverse effect resulting from the immune system, and the Agency Unit III.A., EPA has concluded that the a single oral exposure was identified does not believe that conducting an cPAD is protective of possible cancer and no acute dietary endpoint was immunotoxicity study will result in a effects. Given the results of the chronic selected. Therefore, boscalid is not lower point of departure than currently risk assessment above, cancer risk expected to pose an acute risk. selected for overall risk assessment. resulting from exposure to boscalid is Therefore, an additional database 2. Chronic risk. Using the exposure assumptions described in this unit for not of concern. uncertainty factor to account for 6. Determination of safety. Based on potential immunotoxicity does not need chronic exposure, EPA has concluded that chronic exposure to boscalid from these risk assessments, EPA concludes to be applied. that there is a reasonable certainty that ii. A rat DNT study is available which food and water will utilize 37% of the no harm will result to the general provides no indication that boscalid is cPAD for children 1–2 years old, the population, or to infants and children a neurotoxic chemical, and there is no population group receiving the greatest evidence of reproductive or exposure. Based on the explanation in from aggregate exposure to boscalid developmental neurotoxicity in the Unit III.C.3., regarding residential use residues. toxicity database. patterns, chronic residential exposure to IV. Other Considerations iii. Data involving the testing of young residues of boscalid is not expected. animals did show increased quantitative 3. Short-term risk. Short-term A. Analytical Enforcement Methodology sensitivity in the young with regard to aggregate exposure takes into account Adequate gas chromatography with body weight effects, and qualitative short-term residential exposure plus mass spectrometric detection (GC/MS) sensitivity was seen in one chronic exposure to food and water and GC with electron capture (EC) developmental study. However, clear (considered to be a background methods are available to enforce NOAELs were identified for all of these exposure level). Boscalid is currently boscalid tolerances in or on plant and effects. Moreover, the body weight registered for uses that could result in livestock commodities, respectively. effects at the LOAELs in these studies short-term residential exposure, and the The methods may be requested from: were either transient or inconsistent, Agency has determined that it is Chief, Analytical Chemistry Branch, and qualitative sensitivity occurred at appropriate to aggregate chronic Environmental Science Center, 701 the limit dose in the presence of exposure through food and water with Mapes Rd., Ft. Meade, MD 20755–5350; maternal toxicity. Additionally, EPA is short-term residential exposures to telephone number: (410) 305–2905; e- regulating based on a POD below where boscalid. mail address: [email protected]. these effects are seen. EPA concludes Using the exposure assumptions B. International Residue Limits that there are no residual uncertainties described in this unit for short-term for prenatal and/or postnatal toxicity. exposures, EPA has concluded the In making its tolerance decisions, EPA iv. There are no residual uncertainties combined short-term food, water, and seeks to harmonize U.S. tolerances with identified in the exposure databases. residential exposures result in an international standards whenever The dietary food exposure assessments aggregate MOE of 840 for the general possible, consistent with U.S. food were performed based on 100 PCT and U.S. population and an aggregate MOE safety standards and agricultural tolerance-level residues. EPA made of 1,140 for youth (13–19 years old). As practices. EPA considers the conservative (protective) assumptions in described above, the level of risk to international maximum residue limits the ground and surface water modeling younger golfers is expected to be (MRLs) established by the Codex used to assess exposure to boscalid in similar. Because EPA’s level of concern Alimentarius Commission (Codex), as

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required by FFDCA section 408(b)(4). residues in animal commodities. In 12898, entitled Federal Actions to The Codex Alimentarius is a joint U.N. conjunction with assessing potential Address Environmental Justice in Food and Agriculture Organization/ residues in animal commodities from Minority Populations and Low-Income World Health Organization food the proposed and established uses of Populations (59 FR 7629, February 16, standards program, and it is recognized boscalid, EPA has determined that the 1994). as an international food safety established tolerances for secondary Since tolerances and exemptions that standards-setting organization in trade residues in or on poultry and hog are established on the basis of a petition agreements to which the United States commodities need to be raised. under section 408(d) of FFDCA, such as is a party. EPA may establish a tolerance Therefore, the Agency is increasing the the tolerances in this final rule, do not that is different from a Codex MRL; established tolerances for hog, fat from require the issuance of a proposed rule, however, FFDCA section 408(b)(4) 0.10 ppm to 0.20 ppm; poultry, fat from the requirements of the Regulatory requires that EPA explain the reasons 0.05 ppm to 0.20 ppm; and poultry, Flexibility Act (RFA) (5 U.S.C. 601 et for departing from the Codex level. meat byproducts from 0.10 to 0.20 ppm. seq.) do not apply. There are currently no Codex, Finally, EPA has revised the tolerance This final rule directly regulates Canadian, or Mexican MRLs for residues expression to clarify (1) that, as growers, food processors, food handlers, of boscalid in or on alfalfa forage, alfalfa provided in FFDCA section 408(a)(3), and food retailers, not States or tribes, hay, or citrus fruits. However, there is the tolerance covers metabolites and nor does this action alter the a Codex MRL for stone fruits at 3 ppm degradates of boscalid not specifically relationships or distribution of power and a Canadian MRL for stone fruits at mentioned; and (2) that compliance and responsibilities established by 1.7 ppm. At this time, the revised U.S. with the specified tolerance levels is to Congress in the preemption provisions tolerance on fruit, stone, group 12 at 3.5 be determined by measuring only the of section 408(n)(4) of FFDCA. As such, ppm cannot be harmonized because specific compounds mentioned in the the Agency has determined that this residue field trial data support a tolerance expression. action will not have a substantial direct tolerance that is higher than the Codex effect on States or tribal governments, and Canadian MRLs. Codex and V. Conclusion on the relationship between the national Canadian MRLs for boscalid also exist Therefore, tolerances are established government and the States or tribal for various livestock commodities. for residues of boscalid, 3- governments, or on the distribution of However, because Codex and Canadian pyridinecarboxamide, 2-chloro-N-(4′- power and responsibilities among the MRLs on boscalid do not exist for some chloro[1,1′-biphenyl]-2-yl), in or on various levels of government or between animal feed commodities which have alfalfa, forage at 30 ppm; alfalfa, hay at the Federal Government and Indian U.S. tolerances, the dietary burden of 65 ppm; fruit, citrus, group 10 at 1.6 tribes. Thus, the Agency has determined boscalid is higher for animals in the ppm; citrus, dried pulp at 4.5 ppm; and that Executive Order 13132, entitled U.S., and U.S. livestock tolerances citrus, oil at 85 ppm. Additionally, Federalism (64 FR 43255, August 10, cannot be harmonized with equivalent previously established tolerances are 1999) and Executive Order 13175, Codex or Canadian MRLs at this time. revised for fruit, stone, group 12 at 3.5 entitled Consultation and Coordination ppm; hog, fat at 0.20 ppm; poultry, fat with Indian Tribal Governments (65 FR C. Revisions to Petitioned-For at 0.20 ppm; and poultry, meat 67249, November 9, 2000) do not apply Tolerances byproducts at 0.20 ppm. Finally, this to this final rule. In addition, this final Based on analysis of the data regulation deletes a time-limited rule does not impose any enforceable supporting the petition, EPA has revised tolerance on tangerine at 2.0 ppm, as it duty or contain any unfunded mandate the proposed tolerances on alfalfa, expired on December 31, 2008. as described under Title II of the forage from 35 ppm to 30 ppm; alfalfa, Unfunded Mandates Reform Act of 1995 hay from 85 ppm to 65 ppm; fruit, VI. Statutory and Executive Order Reviews (UMRA) (Public Law 104–4). citrus, group 10 from 2.0 to 1.6 ppm; This action does not involve any and fruit, stone, group 12 from 5.0 to 3.5 This final rule establishes tolerances technical standards that would require ppm. The Agency has also determined under section 408(d) of FFDCA in Agency consideration of voluntary that individual tolerances are necessary response to a petition submitted to the consensus standards pursuant to section for citrus, dried pulp at 4.5 ppm; and Agency. The Office of Management and 12(d) of the National Technology citrus, oil at 85 ppm because boscalid Budget (OMB) has exempted these types Transfer and Advancement Act of 1995 residues concentrate in these of actions from review under Executive (NTTAA), Public Law 104–113, section commodities. EPA revised these Order 12866, entitled Regulatory 12(d) (15 U.S.C. 272 note). tolerance levels based on analysis of the Planning and Review (58 FR 51735, residue field trial data using the October 4, 1993). Because this final rule VII. Congressional Review Act Agency’s Tolerance Spreadsheet in has been exempted from review under The Congressional Review Act, 5 accordance with the Agency’s Guidance Executive Order 12866, this final rule is U.S.C. 801 et seq., generally provides for Setting Pesticide Tolerances Based not subject to Executive Order 13211, that before a rule may take effect, the on Field Trial Data. Because tolerances entitled Actions Concerning Regulations agency promulgating the rule must are being established on alfalfa forage That Significantly Affect Energy Supply, submit a rule report to each House of and alfalfa hay under 40 CFR Distribution, or Use (66 FR 28355, May the Congress and to the Comptroller 180.589(a)(1), which applies to residues 22, 2001) or Executive Order 13045, General of the United States. EPA will resulting from intentional or inadvertent entitled Protection of Children from submit a report containing this rule and use, EPA has also revised current Environmental Health Risks and Safety other required information to the U.S. inadvertent residue tolerance entries so Risks (62 FR 19885, April 23, 1997). Senate, the U.S. House of that they exclude alfalfa, as follows: This final rule does not contain any Representatives, and the Comptroller animal feed, nongrass, group 18, forage, information collections subject to OMB General of the United States prior to except alfalfa and animal feed, nongrass, approval under the Paperwork publication of this final rule in the group 18, hay, except alfalfa. Reduction Act (PRA), 44 U.S.C. 3501 et Federal Register. This final rule is not Additionally, EPA is modifying seq., nor does it require any special a ‘‘major rule’’ as defined by 5 U.S.C. several tolerances for secondary considerations under Executive Order 804(2).

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List of Subjects in 40 CFR Part 180 Authority: 21 U.S.C. 321(q), 346a and 371. ‘‘Animal feed, nongrass, group 18, hay’’ Environmental protection, ■ 2. Section 180.589 is amended by: in the table in paragraph (d) to read as Administrative practice and procedure, i. Revising the introductory text for follows: Agricultural commodities, Pesticides paragraphs (a)(1) and (a)(2); ‘‘ § 180.589 Boscalid; tolerances for and pests, Reporting and recordkeeping ii. Revising the entry for Fruit, stone, ’’ residues. requirements. group 12 and alphabetically adding ‘‘Alfalfa, forage’’; ‘‘Alfalfa, hay’’; ‘‘Citrus, (a) General. (1) Tolerances are ’’ ‘‘ ’’ ‘‘ Dated: May 18, 2010 dried pulp ; Citrus, oil ; and Fruit, established for residues of the fungicide citrus, group 10’’; to the table in Daniel J. Rosenblatt boscalid, including its metabolites and paragraph (a)(1); Acting Director, Registration Division, Office degradates, in or on the commodities of Pesticide Programs. iii. Revising the entries for ‘‘Hog, fat’’; ‘‘Poultry, fat’’; and ‘‘Poultry, meat listed below. Compliance with the ■ Therefore, 40 CFR chapter I is byproducts’’ in the table in paragraph tolerance levels specified below is to be amended as follows: (a)(2); determined by measuring only boscalid, 3-pyridinecarboxamide, 2-chloro-N-(4′- PART 180—[AMENDED] iv. Revising paragraph (b); v. Revising paragraph (d) introductory chloro[1,1’-biphenyl]-2-yl), in or on the ■ 1. The authority citation for part 180 text and revising the entries for ‘‘Animal following raw agricultural commodities: continues to read as follows: feed, nongrass, group 18, forage’’ and

Commodity Parts per million

Alfalfa, forage 30.0

Alfalfa, hay 65.0

***** Citrus, dried pulp 4.5

Citrus, oil 85.0

***** Fruit, citrus, group 10 1.6

***** Fruit, stone, group 12 3.5

*****

(2) Tolerances are established for determined by measuring only the sum chloro-N-(4′-chloro-5-hydroxy-biphenyl- residues of the fungicide boscalid, of boscalid, 3-pyridinecarboxamide, 2- 2-yl) nicotinamide, calculated as the including its metabolites and chloro-N-(4’-chloro[1,1’-biphenyl]-2-yl), stoichiometric equivalent of boscalid in degradates, in or on the commodities and metabolites 2-chloro-N-(4’-chloro-5- or on the following food commodities: listed below. Compliance with the hydroxy-biphenyl-2-yl) nicotinamide tolerance levels specified below is to be and glucuronic acid conjugate of 2-

Commodity Parts per million

***** Hog, fat 0.20

***** Poultry, fat 0.20

***** Poultry, meat byproducts 0.20

*****

(b) Section 18 emergency exemptions. the pesticide under section 18 pyridinecarboxamide, 2-chloro-N-(4′- Time-limited tolerances are established emergency exemptions granted by EPA. chloro[1,1’-biphenyl]-2-yl). This for residues of the fungicide boscalid, Compliance with the tolerance level tolerance will expire and is revoked on including its metabolites and specified below is to be determined by the date specified in the following table: degradates, in connection with use of measuring only boscalid, 3-

Commodity Parts per million Expiration/revocation date

Endive, Belgian 16 12/31/10

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* * * * * fungicide boscalid, including its below is to be determined by measuring (d) Indirect or inadvertent residues. metabolites and degradates, in or on the only boscalid, 3-pyridinecarboxamide, Tolerances are established for the commodities listed below. Compliance 2-chloro-N-(4′-chloro[1,1’-biphenyl]-2- indirect or inadvertent residues of the with the tolerance levels specified yl), in or on the following commodities:

Commodity Parts per million

Animal feed, nongrass, group 18, forage, except alfalfa 1.0

Animal feed, nongrass, group 18, hay, except alfalfa 2.0 *****

[FR Doc. 2010–12921 Filed 5–27–10; 8:45 am] 4400, One Potomac Yard (South Bldg.), cite at http://www.gpoaccess.gov/ecfr. BILLING CODE 6560–50–S 2777 S. Crystal Dr., Arlington, VA. The To access the harmonized test Docket Facility is open from 8:30 a.m. guidelines referenced in this document to 4 p.m., Monday through Friday, electronically, please go http:// ENVIRONMENTAL PROTECTION excluding legal holidays. The Docket www.epa.gov/ocspp and select ‘‘Test AGENCY Facility telephone number is (703) 305– Methods and Guidelines.’’ 5805. 40 CFR Part 180 C. Can I File an Objection or Hearing FOR FURTHER INFORMATION CONTACT: Request? [EPA–HQ–OPP–2009–0279; FRL–8828-–6] Tawanda Maignan, Registration Division (7505P), Office of Pesticide Under FFDCA section 408(g), 21 Prothioconazole; Pesticide Tolerances Programs, Environmental Protection U.S.C. 346a, any person may file an objection to any aspect of this regulation AGENCY: Environmental Protection Agency, 1200 Pennsylvania Ave., NW., Washington, DC 20460–0001; telephone and may also request a hearing on those Agency (EPA). objections. You must file your objection ACTION: Final rule. number: (703) 308–8050; e-mail address: [email protected]. or request a hearing on this regulation in accordance with the instructions SUMMARY: This regulation establishes SUPPLEMENTARY INFORMATION: tolerances for combined residues of provided in 40 CFR part 178. To ensure prothioconazole and prothioconazole- I. General Information proper receipt by EPA, you must identify docket ID number EPA–HQ– desthio, calculated as parent in or on A. Does this Action Apply to Me? grain, cereal, group 15 (except sweet OPP–2009–0279 in the subject line on corn, sorghum, and rice), and grain, You may be potentially affected by the first page of your submission. All cereal, forage, fodder and straw, group this action if you are an agricultural objections and requests for a hearing 16 (except sweet corn, sorghum, and producer, food manufacturer, or must be in writing, and must be rice) and sweet corn. Bayer CropScience pesticide manufacturer. Potentially received by the Hearing Clerk on or requested these tolerances under the affected entities may include, but are before July 27, 2010. Addresses for mail Federal Food, Drug, and Cosmetic Act not limited to those engaged in the and hand delivery of objections and (FFDCA). following activities: hearing requests are provided in 40 CFR • Crop production (NAICS code 111). 178.25(b). DATES: This regulation is effective May • Animal production (NAICS code In addition to filing an objection or 28, 2010. Objections and requests for 112). hearing request with the Hearing Clerk hearings must be received on or before • Food manufacturing (NAICS code as described in 40 CFR part 178, please July 27, 2010, and must be filed in 311). submit a copy of the filing that does not accordance with the instructions • Pesticide manufacturing (NAICS contain any CBI for inclusion in the provided in 40 CFR part 178 (see also code 32532). public docket that is described in Unit I.C. of the SUPPLEMENTARY This listing is not intended to be ADDRESSES. Information not marked INFORMATION). exhaustive, but rather to provide a guide confidential pursuant to 40 CFR part 2 ADDRESSES: EPA has established a for readers regarding entities likely to be may be disclosed publicly by EPA docket for this action under docket affected by this action. Other types of without prior notice. Submit this copy, identification (ID) number EPA–HQ– entities not listed in this unit could also identified by docket ID number EPA– OPP–2009–0279. All documents in the be affected. The North American HQ–OPP–2009–0279, by one of the docket are listed in the docket index Industrial Classification System following methods: available at http://www.regulations.gov. (NAICS) codes have been provided to • Federal eRulemaking Portal: http:// Although listed in the index, some assist you and others in determining www.regulations.gov. Follow the on-line information is not publicly available, whether this action might apply to instructions for submitting comments. e.g., Confidential Business Information certain entities. If you have any • Mail: Office of Pesticide Programs (CBI) or other information whose questions regarding the applicability of (OPP) Regulatory Public Docket (7502P), disclosure is restricted by statute. this action to a particular entity, consult Environmental Protection Agency, 1200 Certain other material, such as the person listed under FOR FURTHER Pennsylvania Ave., NW., Washington, copyrighted material, is not placed on INFORMATION CONTACT. DC 20460–0001. the Internet and will be publicly • Delivery: OPP Regulatory Public available only in hard copy form. B. How Can I Get Electronic Access to Docket (7502P), Environmental Publicly available docket materials are Other Related Information? Protection Agency, Rm. S–4400, One available in the electronic docket at You may access a frequently updated Potomac Yard (South Bldg.), 2777 S. http://www.regulations.gov, or, if only electronic version of EPA’s tolerance Crystal Dr., Arlington, VA. Deliveries available in hard copy, at the OPP regulations at 40 CFR part 180 through are only accepted during the Docket Regulatory Public Docket in Rm. S– the Government Printing Office’s e-CFR Facility’s normal hours of operation

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(8:30 a.m. to 4 p.m., Monday through forage at 7 ppm and sweet corn stover chronic studies show that the target Friday, excluding legal holidays). at 8 ppm because the commodities will organs at the lowest observable adverse Special arrangements should be made be covered under grain, cereal, group effects level (LOAEL) include the liver, for deliveries of boxed information. The 16; forage and stover. The reasons for kidney, urinary bladder, thyroid and Docket Facility telephone number is these changes are explained in Unit blood. In addition, the chronic studies (703) 305–5805. IV.D. showed body weight and food consumption changes. Prothioconazole II. Summary of Petitioned-For III. Aggregate Risk Assessment and and its metabolites may be primary Tolerance Determination of Safety developmental toxicants, producing In the Federal Register of August 19, Section 408(b)(2)(A)(i) of FFDCA effects including malformations in the 2009 (74 FR 41898) (FRL–8426–7), EPA allows EPA to establish a tolerance (the conceptus at levels equal to or below issued a notice pursuant to section legal limit for a pesticide chemical maternally toxic levels in some studies, 408(d)(3) of FFDCA, 21 U.S.C. residue in or on a food) only if EPA particularly those studies conducted 346a(d)(3), announcing the filing of a determines that the tolerance is ‘‘safe.’’ using prothioconazole-desthio. pesticide petition (PP 8F7485) by Bayer Section 408(b)(2)(A)(ii) of FFDCA Reproduction studies in the rat with CropScience, P.O. Box 12014, 2 T.W. defines ‘‘safe’’ to mean that ‘‘there is a prothioconazole and prothioconazole- Alexander Drive, Research Triangle reasonable certainty that no harm will desthio suggest that these chemicals Park, NC 27709. The petition requested result from aggregate exposure to the may not be primary reproductive that 40 CFR 180.626 be amended by pesticide chemical residue, including toxicants. Acute and subchronic establishing tolerances for residues of all anticipated dietary exposures and all neurotoxicity studies were conducted in the fungicide prothioconazole, 2-[2-(1- other exposures for which there is the rat using prothioconazole. A chlorocyclopropyl)-3-(2-chlorophenyl)- reliable information.’’ This includes developmental neurotoxicity study was 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- exposure through drinking water and in conducted in the rat using triazole-3-thion, in or on grain, cereal, residential settings, but does not include prothioconazole-desthio. group 15, except sweet corn, sorghum occupational exposure. Section The available data show that the and rice at 0.35 parts per million (ppm); 408(b)(2)(C) of FFDCA requires EPA to prothioconazole-desthio metabolite forage, cereal, group 16, except sweet give special consideration to exposure produces toxicity at lower dose levels in corn, sorghum and rice at 8.0 ppm; of infants and children to the pesticide subchronic, developmental, stover, cereal, group 16, except sweet chemical residue in establishing a reproductive, and neurotoxicity studies corn, sorghum and rice at 10 ppm; hay, tolerance and to ‘‘ensure that there is a as compared with prothioconazole and cereal, group 16, except sweet corn, reasonable certainty that no harm will the two additional metabolites that were sorghum and rice at 7.0 ppm; straw, result to infants and children from tested. cereal, group 16, except sweet corn, aggregate exposure to the pesticide The available carcinogenicity and/or sorghum and rice at 5.0 ppm; corn, chemical residue. . . .’’ chronic studies in the mouse and rat, sweet, forage at 7.0 ppm; corn, sweet, Consistent with section 408(b)(2)(D) using both prothioconazole and stover at 8.0 ppm; and corn, sweet, of FFDCA, and the factors specified in prothioconazole-desthio, show no kernel plus cob with husks removed at section 408(b)(2)(D) of FFDCA, EPA has increase in tumor incidence. Therefore, 0.02 ppm. That notice referenced a reviewed the available scientific data EPA has concluded that summary of the petition prepared by and other relevant information in prothioconazole and its metabolites are Bayer CropScience, the registrant, support of this action. EPA has not carcinogenic, and are classified as which is available in the docket, http:// sufficient data to assess the hazards of ‘‘Not likely to be Carcinogenic to www.regulations.gov. A comment was and to make a determination on Humans’’ according to the 2005 Cancer received on the notice of filing. EPA’s aggregate exposure for prothioconazole Guidelines. response to the comment is discussed in including exposure resulting from the Specific information on the studies Unit IV.C. tolerances established by this action. received and the nature of the adverse Based upon review of the data EPA’s assessment of exposures and risks effects caused by prothioconazole as supporting the petition, EPA has associated with prothioconazole well as the no-observed-adverse-effect- established and increased the proposed follows. level (NOAEL) and the lowest-observed- tolerance of 0.02 ppm for combined adverse-effect-level (LOAEL) from the A. Toxicological Profile residues in/on sweet corn to a higher toxicity studies can be found at http:// tolerance of 0.04 ppm. Further, EPA has EPA has evaluated the available www.regulations.gov in document modified crop group terminology and toxicity data and considered its validity, ‘‘Prothioconazole. Human Health Risk established tolerances for grain, cereal, completeness, and reliability as well as Assessment for Proposed Section 3 Uses group 15, except sweet corn, sorghum, the relationship of the results of the on Crop Group 15 and 16 (Cereal Grains and rice at 0.35 ppm; grain, cereal, studies to human risk. EPA has also and Forage, Fodder and Straw of the group 16, except sorghum and rice; considered available information Cereal Grains Group Except Sweet Corn, forage at 8.0 ppm; grain, cereal, group concerning the variability of the Sorghum and Rice) and Sweet Corn,’’ 16, except sorghum and rice; stover at sensitivities of major identifiable pages 14 to 17 in docket ID number 10 ppm; grain, cereal, group 16, except subgroups of consumers, including EPA–HQ–OPP–2009–0279. sorghum and rice; hay at 7.0 ppm; grain, infants and children. Prothioconazole cereal, group 16, except sorghum and has low acute toxicity by oral, dermal, B. Toxicological Points of Departure and rice; straw at 5.0 ppm. With the and inhalation routes. It is not a dermal Levels of Concern establishment of the above tolerances, sensitizer, or a skin or eye irritant. Once a pesticide’s toxicological EPA has revoked the following Prothioconazole’s metabolite, profile is determined, EPA identifies tolerances: barley, grain; barley, hay; prothioconazole-desthio, also has low toxicological points of departure (POD) barley, straw; wheat, forage; wheat, acute toxicity by oral, dermal, and and levels of concern to use in grain; wheat, hay; and wheat, straw. inhalation routes. It is not a dermal evaluating the risk posed by human EPA is also not establishing the sensitizer, or a skin irritant, but it is a exposure to the pesticide. For hazards proposed tolerances for sweet corn slight eye irritant. The subchronic and that have a threshold below which there

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is no appreciable risk, the toxicological with the POD to calculate a safe information on the general principles POD is used as the basis for derivation exposure level – generally referred to as EPA uses in risk characterization and a of reference values for risk assessment. a population-adjusted dose (PAD) or a complete description of the risk PODs are developed based on a careful reference dose (RfD) – and a safe margin assessment process, see http:// analysis of the doses in each of exposure (MOE). For non-threshold www.epa.gov/pesticides/factsheets/ toxicological study to determine the risks, the Agency assumes that any riskassess.htm. dose at which no adverse effects are amount of exposure will lead to some observed (the NOAEL) and the lowest degree of risk. Thus, the Agency A summary of the toxicological dose at which adverse effects of concern estimates risk in terms of the probability endpoints for prothioconazole used for are identified (the LOAEL). Uncertainty/ of an occurrence of the adverse effect human risk assessment is shown in the safety factors are used in conjunction expected in a lifetime. For more following Table.

TABLE—SUMMARY OF TOXICOLOGICAL DOSES AND ENDPOINTS FOR PROTHIOCONAZOLE FOR USE IN HUMAN RISK ASSESSMENT

Point of Departure and Uncer- RfD, PAD, LOC for Risk Assess- Exposure/Scenario tainty/Safety Factors ment Study and Toxicological Effects

Acute dietary NOAEL = 2.0milligrams/kilo- Acute RfD = 0.02 mg/kg/day Developmental Toxicity Study in (Females 13–49 years of age) grams/day (mg/kg/day) aPAD = 0.02 mg/kg/day Rabbits UFA = 10x LOAEL = 10 mg/kg/day based on UFH = 10x structural alterations including FQPA SF = 1x malformed vertebral body and ribs, arthrogryposis, and mul- tiple malformations.

Chronic dietary NOAEL = 1.1 mg/kg/day Chronic RfD = 0.01 mg/kg/day Chronic/Oncogenicity Study in (All populations) UFA = 10x cPAD = 0.01 mg/kg/day Rats UFH = 10x LOAEL = 8.0 mg/kg/day based FQPA SF = 1x on liver histopathology (hepatocellular vacuolation and fatty change (single cell, centrilobular, and periportal)).

UFA = extrapolation from animal to human (interspecies). UFH = potential variation in sensitivity among members of the human population (intraspecies). FQPA SF = Food Quality Protection Act Safety Factor. PAD = population adjusted dose (a = acute, c = chronic). RfD = reference dose. Loc = level of concern.

C. Exposure Assessment incorporated into the refined acute approach is used and a cancer RfD is assessment. The assessment also calculated based on an earlier non- 1. Dietary exposure from food and assumed 100% crop treated (CT). Since cancer key event. If carcinogenic mode feed uses. In evaluating dietary no observed effects would be of action data are not available, or if the exposure to prothioconazole and its attributable to a single dose exposure for mode of action data determines a metabolites and/or degradates, EPA the general U.S. population, females 13 mutagenic mode of action, a default considered exposure under the to 49 years of age was the only linear cancer slope factor approach is petitioned-for tolerances as well as all population subgroup included in the utilized. existing prothioconazole tolerances in acute assessment. Based on the data summarized in Unit 40 CFR 180.626. EPA assessed dietary ii. Chronic exposure. In conducting III.A., EPA has concluded that exposures from prothioconazole in food the chronic dietary exposure assessment prothioconazole is classified as ‘‘Not as follows: EPA used the food consumption data Likely to be Carcinogenic to Humans.’’ i. Acute exposure. Quantitative acute from the USDA 1994–1996 and 1998 Therefore, a dietary exposure dietary exposure and risk assessments CSFII. As to residue levels in food, EPA assessment for the purpose of assessing are performed for a food-use pesticide, conducted a moderately refined chronic cancer risk is unnecessary. if a toxicological study has indicated the dietary exposure assessment. Empirical iv. Anticipated residue and percent possibility of an effect of concern processing factors, average field trial crop treated (PCT) information. Section occurring as a result of a 1–day or single residues, and livestock commodity 408(b)(2)(E) of FFDCA authorizes EPA exposure. residues derived from feeding studies to use available data and information on In estimating acute dietary exposure, and a reasonably balanced dietary the anticipated residue levels of EPA used food consumption burden (RBDB) were incorporated into pesticide residues in food and the actual information from the U.S. Department of the chronic assessment; 100% crop levels of pesticide residues that have Agriculture (USDA) 1994–1996 and treated was assumed. been measured in food. If EPA relies on 1998 Nationwide Continuing Surveys of iii. Cancer. EPA determines whether such information, EPA must require Food Intake by Individuals (CSFII). As quantitative cancer exposure and risk pursuant to FFDCA section 408(f)(1) to residue levels in food, EPA assessments are appropriate for a food- that data be provided 5 years after the conducted a moderately refined acute use pesticide based on the weight-of- tolerance is established, modified, or dietary exposure assessment. Average the-evidence from cancer studies and left in effect, demonstrating that the field trial values (because all of the other relevant data. Cancer risk is levels in food are not above the levels crops included in this assessment are quantified using a linear or non-linear anticipated. For the present action, EPA blended food forms, except sweet corn), approach. If sufficient information on will issue such data call-ins as are empirical processing factors, and the carcinogenic mode of action is required by section 408(b)(2)(E) of livestock maximum residues were available, a threshold or non-linear FFDCA and authorized under section

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408(f)(1) of FFDCA. Data will be forming, via environmental and D. Safety Factor for Infants and required to be submitted no later than metabolic activities, 1,2,4-triazole, Children 5 years from the date of issuance of triazolylalanine and/or triazolylacetic 1. In general. Section 408(b)(2)(C) of these tolerances. Average residues and acid. These metabolites have also been FFDCA provides that EPA shall apply 100 PCT were assumed for all food shown to cause developmental, an additional tenfold (10X) margin of commodities. reproductive, and/or neurological safety for infants and children in the 2. Dietary exposure from drinking effects. That these compounds, case of threshold effects to account for water. The Agency used screening level however, have structural similarities prenatal and postnatal toxicity and the water exposure models in the dietary and share some common effects does completeness of the database on toxicity exposure analysis and risk assessment not alone show a common mechanism and exposure unless EPA determines for prothioconazole in drinking water. of toxicity. Evidence is needed to based on reliable data that a different These simulation models take into establish that the chemicals operate by margin of safety will be safe for infants account data on the physical, chemical, the same, or essentially the same and children. This additional margin of and fate/transport characteristics of sequence of major biochemical events. safety is commonly referred to as the prothioconazole. Further information A number of potential events could FQPA Safety Factor (SF). In applying regarding EPA drinking water models contribute to the toxicity of conazoles this provision, EPA either retains the used in pesticide exposure assessment (e.g., altered cholesterol levels, stress default value of 10X, or uses a different can be found at http://www.epa.gov/ responses, altered DNA methylation). At additional safety factor when reliable oppefed1/models/water/index.htm. this time, there is not sufficient data available to EPA support the choice Based on the Pesticide Root Zone evidence to determine whether of a different factor. Model/Exposure Analysis Modeling conazoles share common mechanisms of 2. Prenatal and postnatal sensitivity. System (PRZM/EXAMS) and Screening toxicity. Without such understanding, There is evidence of increased Concentration in Ground Water (SCI- there is no basis to make a common susceptibility following prenatal/or GROW) models, the estimated drinking mechanism of toxicity finding for the postnatal exposure in: water concentrations (EDWCs) of diverse range of effects found. i. Rat developmental toxicity studies prothioconazole for the acute dietary Investigations into the conazoles are with prothioconazole as well as its risk assessment, the water concentration currently being undertaken by the EPA’s prothioconazole-desthio and sulfonic value of 94.7 parts per billion (ppb) was Office of Research and Development. acid K salt metabolites. used to assess the contribution to When the results of this research are ii. Rabbit developmental toxicity drinking water. For the chronic dietary available, the Agency will make a studies with prothioconazole-desthio. risk assessment, the water concentration determination of whether there is a iii. A rat developmental neurotoxicity value of 84.3 ppb was used to assess the common mechanism of toxicity and, study with prothioconazole-desthio; and contribution to drinking water. Modeled therefore, a basis for assessing iv. Multi-generation reproduction estimates of drinking water cumulative risk. For information studies in the rat with prothioconazole- concentrations were directly entered regarding EPA’s procedures for desthio. Effects include skeletal into the dietary exposure model. structural abnormalities, such as cleft 3. From non-dietary exposure. The cumulating effects from substances found to have a common mechanism of palate, deviated snout, malocclusion, term ‘‘residential exposure’’ is used in extra ribs, and developmental delays. this document to refer to non- toxicity, see EPA’s website at http:// www.epa.gov/pesticides/cumulative. Available data also show that the occupational, non-dietary exposure skeletal effects such as extra ribs are not (e.g., for lawn and garden pest control, To support existing tolerances and to completely reversible after birth in the indoor pest control, termiticides, and establish new tolerances for conazole rat, but persist as development flea and tick control on pets). pesticides, including prothioconazole, continues. Prothioconazole is not registered for EPA conducted human health risk Although increased susceptibility was any specific use patterns that would assessments for exposure to 1,2 4- seen in these studies, the Agency result in residential exposure. triazole, triazolylalanine, and concluded that there is a low concern 4. Cumulative effects from substances triazolylacetic acid resulting from the and no residual uncertainties for with a common mechanism of toxicity. use of all current and pending uses of prenatal and/or postnatal toxicity effects Section 408(b)(2)(D)(v) of FFDCA triazole-containing pesticides (as of 9/1/ of prothioconazole because: requires that, when considering whether 05). The risk assessment is a highly • Developmental toxicity NOAELs to establish, modify, or revoke a conservative, screening-level evaluation and LOAELs from prenatal exposure are tolerance, the Agency consider in terms of hazards associated with the well characterized after oral and dermal ‘‘available information’’ concerning the common metabolites (e.g., use of exposure; cumulative effects of a particular maximum combination of uncertainty • The off-spring toxicity NOAELs and pesticide’s residues and ‘‘other factors) and potential dietary and non- LOAELs from postnatal exposures are substances that have a common dietary exposures (i.e., high-end well characterized; and mechanism of toxicity.’’ estimates of both dietary and non- • The NOAEL for the fetal effect, Prothioconazole is a member of the dietary exposures). Acute and chronic malformed vertebral body and ribs, is triazole-containing class of pesticides, aggregate risk estimates associated with used for assessing acute risk of females often referred to as the triazoles. EPA is these compounds are below the 13 years and older and, because it is not currently following a cumulative Agency’s level of concern for all lower than the NOAELs in other risk approach based on a common durations of exposure and for all developmental studies, is protective of mechanism of toxicity for the conazoles. population subgroups, including those all potential developmental effects. The conazole pesticides, as a whole, of infants and children. The Agency’s 3. Conclusion. EPA has determined tend to exhibit carcinogenic, risk assessment for these common that reliable data show the safety of developmental, reproductive, and/or metabolites is available in the infants and children would be neurological effects in mammals. propiconazole reregistration docket at adequately protected if the FQPA SF Additionally, all the members of this http://www.regulations.gov, Docket ID were reduced to 1X. That decision is class of compounds are capable of Number EPA–HQ–OPP–2005–0497. based on the following findings:

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i. The toxicity database for ii. There is an acceptable battery of 1. Acute risk. Using the exposure prothioconazole is considered complete, neurotoxicity studies including a assumptions discussed in this unit for with the exception of required developmental neurotoxicity study. acute exposure, the acute dietary functional immunotoxicity testing. The Although offspring neurotoxicity was exposure from food and water to Agency began requiring functional found, characterized by peripheral prothioconazole will occupy 38% of the immunotoxicity testing of all food and nerve lesions in the developmental aPAD for females 13 to 49 years of age, non-food use pesticides on December neurotoxicity studies on the population group receiving the 26, 2007. Although an immunotoxicity prothioconazole-desthio, the increase greatest exposure. study in the mouse is part of the was seen only in the highest dose group 2. Chronic risk. Using the exposure existing prothioconazole toxicity at 105 mg/kg/day, was not considered assumptions described in this unit for database, this study as reported does not treatment related, and a clear NOAEL chronic exposure, EPA has concluded satisfy the current guideline was established for this study. that chronic exposure to requirements for an immunotoxicity iii. Although increased susceptibility prothioconazole from food and water study (OPPTS 870.7800). As such, EPA was seen in the developmental and will utilize 21% of the cPAD for the is requiring that an immunotoxicity reproduction studies, the Agency general U.S. population and 62% of the study be submitted which meets concluded that there is a low concern cPAD for all infants <1 year old, the guideline requirements. EPA has and no residual uncertainties for population group receiving the greatest evaluated the available prothioconazole prenatal and/or postnatal toxicity effects exposure. There are no residential uses toxicity database (including the non- of prothioconazole for the reasons for prothioconazole. guideline study in the mouse) to explained in Unit III.D.2. 3. Short-term risk. Short-term determine whether an additional iv. There are no residual uncertainties aggregate exposure takes into account database uncertainty factor is needed to identified in the exposure databases. short-term residential exposure plus account for potential immunotoxicity. The dietary food exposure assessment chronic exposure to food and water In one chronic study in the rat (but not utilized empirical processing factors, (considered to be a background in the mouse or dog), blood leukocyte 100% crop treated, average crop field exposure level). Because there is no counts were significantly elevated at the trial residue levels, and livestock residential exposure, prothioconazole is high dose level (750 mg/kg/day) along maximum residues. Results from not expected to pose a short-term risk. with increased thrombocyte counts and ruminant feeding studies and poultry 4. Intermediate-term risk. decreased hemoglobin. However, this metabolism studies were used to Intermediate-term aggregate exposure finding is made in the presence of determine the maximum residue levels takes into account intermediate-term toxicity to a broad range of organ for livestock commodities. The crop residential exposure plus chronic systems such as the liver, urinary field trials were performed using exposure to food and water (considered bladder, kidney, thyroid, and decreased maximum application rates and to be a background exposure level). body weight gains. In a chronic dog minimum pre-harvest intervals. EPA Because there is no residential study, splenic effects (increased spleen made conservative (protective) exposure, prothioconazole is not weight with pigmentation and/or assumptions in the ground and surface expected to pose an intermediate-term fibrosiderotic plaques) were seen at 40 water modeling used to assess exposure risk. mg/kg/day and above, but these effects to prothioconazole in drinking water. 5. Aggregate cancer risk for U.S. are not considered to be indicative of These assessments will not population. Based on the lack of immunotoxicity, and occurred in the underestimate the exposure and risks evidence of carcinogenicity in two presence of toxicity to the liver, kidney, posed by prothioconazole. adequate rodent carcinogenicity studies, thyroid, and decreased body weights. prothioconazole is not expected to pose E. Aggregate Risks and Determination of Furthermore, no signs of a cancer risk to humans. Safety immunotoxicity, such as changes in 6. Determination of safety. Based on leukocyte counts and albumin/globulin EPA determines whether acute and these risk assessments, EPA concludes ratio, changes in thymus and spleen chronic dietary pesticide exposures are that there is a reasonable certainty that weights, or histopathological changes in safe by comparing aggregate exposure no harm will result to the general lymphoid tissues, were observed at dose estimates to the acute PAD (aPAD) and population, or to infants and children levels up to 400 mg/kg/day in the non- chronic PAD (cPAD). For linear cancer from aggregate exposure to guideline immunotoxicity study in the risks, EPA calculates the lifetime prothioconazole residues. mouse. There appears to be no basis for probability of acquiring cancer given the IV. Other Considerations concern for immunotoxicity, estimated aggregate exposure. Short-, particularly at the Points of Departure intermediate-, and chronic-term risks A. Analytical Enforcement Methodology (POD) for prothioconazole and its are evaluated by comparing the Adequate liquid chromatography metabolites which, at 2.0 and 1.1 mg/kg/ estimated aggregate food, water, and methods with tandem mass day (Acute and Chronic Reference Dose residential exposure to the appropriate spectrometry detection (LC/MS/MS) are (aRfD and cRfD), respectively) are two PODs to ensure that an adequate MOE available to enforce the tolerance orders of magnitude lower than the 400 exists. expression. The method may be and 750 mg/kg/day dose levels Based on the proposed and existing requested from: Chief, Analytical mentioned in this Unit. This finding, crop uses for prothioconazole, dietary Chemistry Branch, Environmental along with the absence of aggregate exposures (i.e., food plus Science Center, 701 Mapes Rd., Ft. immunotoxicity observed in the drinking water) are anticipated. There Meade, MD 20755–5350; telephone subchronic and chronic studies with are no residential uses for number: (410) 305–2905; e-mail address: prothioconazole and its metabolites prothioconazole and, therefore, no [email protected]. supports the reduction of the FQPA residential exposures are anticipated. factor to 1X in the interim, pending Consequently, only dietary (food plus B. International Residue Limits receipt of an acceptable guideline drinking water) exposures were In making its tolerance decisions, EPA immunotoxicity study. aggregated for this assessment. seeks to harmonize U.S. tolerances with

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international standards whenever tolerances, and therefore there are no The proposed tolerance of 0.02 ppm possible, consistent with U.S. food harmonization issues with forage, for combined residues in/on sweet corn safety standards and agricultural stover, hay, and straw. K+CWHR should be increased to 0.04 practices. EPA considers the ppm (reflecting the combined limit of C. Response to Comments international maximum residue limits quantitation of 0.02 ppm each for (MRLs) established by the Codex One comment was received from an prothioconazole and prothioconazole- Alimentarius Commission (Codex), as anonymous source objecting to desthio). required by FFDCA section 408(b)(4). establishment of tolerances and stating The proposed tolerances of 7 ppm for The Codex Alimentarius is a joint U.N. that the Agency is not protecting human sweet corn forage and 8 ppm for sweet Food and Agriculture Organization/ health. The response contained no corn stover should be removed. These World Health Organization food scientific data or evidence to rebut the commodities will be covered by the standards program, and it is recognized Agency’s conclusion that there is a tolerance for group 16 grain, cereal, as an international food safety reasonable certainty that no harm will forage and group 16, cereal, grain, standards-setting organization in trade result from aggregate exposure to stover, respectively. agreements to which the United States prothioconazole, including all With the establishment of the is a party. EPA may establish a tolerance anticipated dietary exposures and other requested crop group tolerances for that is different from a Codex MRL; exposures for which there is reliable group 15 and 16, the established however, FFDCA section 408(b)(4) information. tolerances for the following commodities are no longer necessary requires that EPA explain the reasons D. Revisions to Petitioned-For and should be removed: barley, grain; for departing from the Codex level. Tolerances The Codex has established MRLs for barley, hay; barley, straw; wheat, forage; residues of desthio-prothioconazole in Prothioconazole tolerances for crop wheat, grain; wheat, hay; and wheat, barley at 0.2 ppm (04/2010), and in oats, commodities listed in 40 CFR straw. rye, and wheat at 0.05 ppm each and in 180.626(a)(1) are expressed in terms of V. Conclusion the fodder (dry) of cereal grains at 4 the combined residues of the fungicide ppm and in the straw (dry) of cereal prothioconazole and prothioconazole- Therefore, tolerances are established grains at 5 ppm. There are currently no desthio, calculated as parent. EPA has for residues of prothioconazole, 2-[2-(1- established Mexican MRLs for also revised the tolerance expression to chlorocylcopropyl)-3-(2-chlorophenyl)- prothioconazole. Canadian MRLs have clarify (1) that, as provided in section 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- been established for prothioconazole per 408(a)(3) of FFDCA, the tolerance covers triazole-3-thion, including its se in/on several commodities, including metabolites and degradates of metabolites and degradates, in or on barley (0.35 ppm), wheat (0.07 ppm), prothioconazole not specifically grain, cereal, group 15, except sweet meat byproducts of cattle, goats, horses mentioned; and (2) that compliance corn, sorghum, and rice at 0.35 ppm; and sheep (0.2 ppm), meat byproducts with the specified tolerance levels is to grain, cereal, group 16, except sorghum of hogs (0.05 ppm), liver of poultry (0.02 be determined by measuring only the and rice; forage at 8.0 ppm; grain, cereal, ppm), meat of cattle, goats, horses, and specific compounds mentioned in the group 16, except sorghum and rice; sheep (0.02 ppm), and milk (0.02 ppm). tolerance expression. stover at 10 ppm; grain, cereal, group Harmonization of the proposed Tolerances are established for 16, except sorghum and rice; hay at 7.0 tolerances with the existing Codex for residues of prothioconazole, 2-[2-(1- ppm; grain, cereal, group 16, except prothioconazole is not possible at this chlorocylcopropyl)-3-(2-chlorophenyl)- sorghum and rice; straw at 5.0 ppm.; time because of differences in tolerance 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- corn, sweet, kernel plus cob with husks expression and use patterns. The MRL triazole-3-thion, including its removed at 0.04 ppm. expression for Codex is metabolites and degradates, in or on the Further, the EPA is revoking the prothioconazole-desthio and is thus not commodities in the table below. following eight existing tolerances compatible with the U.S. tolerance Compliance with the tolerance levels because they are no longer needed as a definition, the sum of prothiocoanzole specified below is to be determined by result of this rule: barley, grain; barley, and prothioconazole-desthio. Much of measuring only prothioconazole and its hay; barley, straw; wheat, forage; wheat, the Codex cereal grain supervised field metabolite prothioconazole-desthio, or grain; wheat, hay; and wheat, straw. The trial data is from Europe, where the use a-(1-chlorocyclopropyl)-a-[(2- EPA is also revising the prothioconazole pattern is different resulting in lower chlorophenyl)methyl]-1H-1,2,4-triazole- crop and animal tolerance expressions. 1-ethanol, calculated as parent in or on measured residues. The straw numerical VI. Statutory and Executive Order value (5 ppm) is matched between the the commodity. Reviews U.S. and Codex. Tolerances are established for The tolerance definition for plant residues of prothioconazole, 2-[2-(1- This final rule establishes tolerances commodities in Canada were recently chlorocylcopropyl)-3-(2-chlorophenyl)- under section 408(d) of FFDCA in changed (02/10/2010) and is now 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- response to a petition submitted to the harmonized with the U.S. residue triazole-3-thion, including its Agency. The Office of Management and definition. The barley tolerance of metabolites and degradates, in or on the Budget (OMB) has exempted these types Canada agrees with the recommended commodities in the table below. of actions from review under Executive U.S. tolerance for cereal grains (except Compliance with the tolerance levels Order 12866, entitled Regulatory sweet corn, sorghum, and rice) of 0.35 specified below is to be determined by Planning and Review (58 FR 51735, ppm. However, the Canadian tolerance measuring only prothioconazole and its October 4, 1993). Because this final rule for wheat is lower (0.07 ppm) than the metabolites prothioconazole-desthio, or has been exempted from review under recommended U.S. group tolerance. The a-(1-chlorocyclopropyl)-a-[(2- Executive Order 12866, this final rule is 0.07 ppm value is the current U.S. chlorophenyl)methyl]-1H-1,2,4-triazole- not subject to Executive Order 13211, tolerance value for wheat, but will be 1-ethanol, and conjugates that can be entitled Actions Concerning Regulations replaced by the cereal grain group converted to these two compounds by That Significantly Affect Energy Supply, tolerance. Canada does not routinely acid hydrolysis, calculated as parent in Distribution, or Use (66 FR 28355, May establish animal feed commodity or on the commodity. 22, 2001) or Executive Order 13045,

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entitled Protection of Children from submit a report containing this rule and Commodity Parts per million Environmental Health Risks and Safety other required information to the U.S. Risks (62 FR 19885, April 23, 1997). Senate, the U.S. House of ***** This final rule does not contain any Representatives, and the Comptroller Grain, cereal, forage, information collections subject to OMB General of the United States prior to fodder and straw, approval under the Paperwork publication of this final rule in the group 16, except sor- Reduction Act (PRA), 44 U.S.C. 3501 et ghum, and rice; forage 8.0 Federal Register. This final rule is not Grain, cereal, forage, seq., nor does it require any special a ‘‘major rule’’ as defined by 5 U.S.C. fodder and straw, considerations under Executive Order 804(2). group 16, except sor- 12898, entitled Federal Actions to List of Subjects in 40 CFR Part 180 ghum, and rice; hay .... 7.0 Address Environmental Justice in Grain, cereal, forage, Minority Populations and Low-Income Environmental protection, fodder and straw, Populations (59 FR 7629, February 16, Administrative practice and procedure, group 16, except sor- 1994). Agricultural commodities, Pesticides ghum, and rice; stover 10 Since tolerances and exemptions that and pests, Reporting and recordkeeping Grain, cereal, forage, are established on the basis of a petition requirements. fodder and straw, under section 408(d) of FFDCA, such as group 16, except sor- Dated: May 21, 2010. ghum, and rice; straw 5.0 the tolerance in this final rule, do not Daniel J. Rosenblatt, Grain, cereal, group 15, require the issuance of a proposed rule, except sweet corn, sor- the requirements of the Regulatory Acting Director, Registration Division, Office of Pesticide Programs. ghum, and rice ...... 0.35 Flexibility Act (RFA) (5 U.S.C. 601 et ***** seq.) do not apply. ■ Therefore, 40 CFR chapter I is This final rule directly regulates amended as follows: (2) Tolerances are established for growers, food processors, food handlers, PART 180—[AMENDED] residues of prothioconazole, 2-[2-(1- and food retailers, not States or tribes, chlorocylcopropyl)-3-(2-chlorophenyl)- nor does this action alter the ■ 1. The authority citation for part 180 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- relationships or distribution of power continues to read as follows: triazole-3-thion, including its and responsibilities established by metabolites and degradates, in or on the Congress in the preemption provisions Authority: 21 U.S.C. 321(q), 346a and 371. ■ commodities in the table below. of section 408(n)(4) of FFDCA. As such, 2. Amend § 180.626 as follows: a. Revise the introductory text to Compliance with the tolerance levels the Agency has determined that this specified below is to be determined by action will not have a substantial direct paragraph (a)(1). b. Remove from the table in paragraph measuring only prothioconazole and its effect on States or tribal governments, metabolites prothioconazole-desthio, or on the relationship between the national (a)(1) existing entries for barley, grain; barley, hay; barley, straw; wheat, forage; a-(1-chlorocyclopropyl)-a-[(2- government and the States or tribal chlorophenyl)methyl]-1H-1,2,4-triazole- governments, or on the distribution of wheat, grain; wheat, hay; and wheat, straw. 1-ethanol, and conjugates that can be power and responsibilities among the converted to these two compounds by various levels of government or between c. Add alphabetically new commodities to the table in paragraph acid hydrolysis, calculated as parent in the Federal Government and Indian or on the commodity. tribes. Thus, the Agency has determined (a)(1). that Executive Order 13132, entitled d. Revise the introductory text to * * * * * Federalism (64 FR 43255, August 10, paragraph (a)(2). [FR Doc. 2010–12922 Filed 5–27–10 8:45 am] 1999) and Executive Order 13175, The added and revised text read as BILLING CODE 6560–50–S entitled Consultation and Coordination follows: with Indian Tribal Governments (65 FR § 180.626 Prothioconazole; tolerances for 67249, November 9, 2000) do not apply residues. FEDERAL COMMUNICATIONS to this final rule. In addition, this final (a) * * * (1) Tolerances are COMMISSION rule does not impose any enforceable established for residues of 47 CFR Part 64 duty or contain any unfunded mandate prothioconazole, 2-[2-(1- as described under Title II of the chlorocylcopropyl)-3-(2-chlorophenyl)- [CG Docket No. 03–123; WC Docket No. Unfunded Mandates Reform Act of 1995 2-hydroxypropyl]-1,2-dihydro-3H-1,2,4- 05–196; FCC 08–275] (UMRA) (Public Law 104–4). triazole-3-thion, including its This action does not involve any metabolites and degradates, in or on the Telecommunications Relay Services, technical standards that would require commodities in the table below. Speech–to–Speech Services, E911 Agency consideration of voluntary Compliance with the tolerance levels Requirements for IP–Enabled Service consensus standards pursuant to section specified below is to be determined by Providers 12(d) of the National Technology measuring only prothioconazole and its Transfer and Advancement Act of 1995 AGENCY: Federal Communications metabolite prothioconazole-desthio, or Commission (NTTAA), Public Law 104–113, section a-(1-chlorocyclopropyl)-a-[(2- ACTION: 12(d) (15 U.S.C. 272 note). chlorophenyl)methyl]-1H-1,2,4-triazole- Final rule; announcement of VII. Congressional Review Act 1-ethanol, calculated as parent in or on effective date. The Congressional Review Act, 5 the commodity. SUMMARY: In this document, the U.S.C. 801 et seq., generally provides Commission announces that the Office Commodity Parts per million that before a rule may take effect, the of Management and Budget (OMB) has agency promulgating the rule must ***** approved, for a period of three years, the submit a rule report to each House of Corn, sweet, kernel plus information collection requirements the Congress and to the Comptroller cob with husks re- associated with the Commission’s General of the United States. EPA will moved ...... 0.04 Telecommunications Relay Services,

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Speech–to–Speech Services, E911 collection of information, is estimated to ADDRESSES: Docket: For access to the Requirements for IP–Enabled Service be: 12 respondents, 5,608,692 responses, docket to read background documents Providers, Report Order and Order on total annual burden hours of 206,061 including those referenced in this Reconsideration (Second Report and hours, and $4,251,635 in total annual document, or to read comments Order). This document is consistent costs. received, go to http:// with the Second Report and Order, Under 5 CFR 1320, an agency may not www.regulations.gov by searching which stated that the Commission conduct or sponsor a collection of Docket ID number FMCSA 2009–0354 at would publish a document in the information unless it displays a current, any time or to the ground floor, room Federal Register announcing the valid OMB Control Number. W12–140, DOT Building, 1200 New effective date of the revised rules. No person shall be subject to any Jersey Avenue, SE., Washington, DC, DATES: The rules published at 73 FR penalty for failing to comply with a 20590, between 9 a.m. and 5 p.m. e.t., 79683, December 30, 2008, are effective collection of information subject to the Monday through Friday, except Federal May 28, 2010. Paperwork Reduction Act that does not holidays. FOR FURTHER INFORMATION CONTACT: display a current valid OMB Control Privacy Act: Anyone is able to search Gregory Hlibok, Disability Rights Office, Number. the electronic form for all comments Consumer and Governmental Affairs The foregoing document is required received into any of our dockets by the Bureau, at (202) 559–5158 (voice) or by the Paperwork Reduction Act of name of the individual submitting the (202) 418–0431(TTY), or email: 1995, Public Law 104–13, October 1, comment (or signing the comment, if [email protected]. 1995, and 44 U.S.C. 3507. submitted on behalf of an association, business, labor union, etc.). You may SUPPLEMENTARY INFORMATION: This Federal Communications Commission. review U.S. Department of document announces that, on November Marlene H. Dortch, Transportation’s (DOT) complete 23, 2009, OMB approved, for a period of Secretary, Privacy Act Statement in the Federal three years, the information collection Office of the Secretary, Register published on April 11, 2000 requirements contained in the Office of Managing Director. (65 FR 19476) or you may visit http:// Commission’s Second Report and Order dms.dot.gov. and in the Commission’s rules at 47 CFR [FR Doc. 2010–12810 Filed 5–27–10; 8:45 am] 64.605, FCC 08–275, published at 73 FR BILLING CODE 6712–01–S FOR FURTHER INFORMATION CONTACT: Mr. 79683, December 30, 2008. The OMB Bivan R. Patnaik, Chief, Regulatory Control Number is 3060–1089. The Development Division, Federal Motor Carrier Safety Administration, 1200 Commission publishes this document as DEPARTMENT OF TRANSPORTATION an announcement of the effective date of New Jersey Avenue, SE., Washington, the revised rules. If you have any Federal Motor Carrier Safety DC 20590, (202) 366–8092. comments on the burden estimates Administration SUPPLEMENTARY INFORMATION: listed below, or how the Commission Background can improve the collections and reduce 49 CFR Part 389 any burdens caused thereby, please The Administrative Procedure Act contact Cathy Williams, Federal [Docket No. FMCSA–2009–0354] (APA) (5 U.S.C. 553) specifically Communications Commission, Room 1– RIN 2126–AB23 provides that notice and comment C823, 445 12th Street, SW, Washington, rulemaking procedures are not required DC 20554. Please include the OMB Direct Final Rulemaking Procedures where the Agency determines that there Control Number, 3060–1089, in your is good cause to dispense with them. correspondence. The Commission will AGENCY: Federal Motor Carrier Safety Generally, good cause exists where the also accept your comments via the Administration (FMCSA), DOT. procedures are impracticable, Internet if you send them to ACTION: Final rule. unnecessary, or contrary to the public [email protected] and interest. 5 U.S.C. 553(b)(B). FMCSA SUMMARY: [email protected]. FMCSA amends its proposes to use direct final rulemaking To request materials in accessible regulations by establishing direct final to streamline the rulemaking process formats for people with disabilities rulemaking procedures for use on where the rule is noncontroversial and (Braille, large print, electronic files, routine or noncontroversial rules. Under the Agency does not expect adverse audio format), send an e–mail to these procedures, FMCSA will make comment. [email protected] or call the Consumer regulatory changes that will become Direct final rulemaking will make and Governmental Affairs Bureau at effective a specified number of days more efficient use of FMCSA resources (202) 418–0530 (voice), (202) 418–0432 after the date of publication in the by reducing the time and resources (TTY). Federal Register, unless FMCSA necessary to develop, review, clear, and SYNOPSIS receives written adverse comment(s) or publish separate proposed and final As required by the Paperwork written notice of intent to submit rules for rules the Agency expects to be Reduction Act of 1995 (44 U.S.C. 3507), adverse comment(s) by the date noncontroversial and unlikely to result the FCC is notifying the public that it specified in the direct final rule. These in adverse public comment. A number received OMB approval on November new procedures will expedite the of Federal agencies use this process, 23, 2009, for the information collection promulgation of routine or including various Department of requirements contained in the noncontroversial rules by reducing the Transportation operating Commission’s Second Report and Order time and resources necessary to administrations. For example, on and the Commission’s rules at 47 CFR develop, review, clear, and publish January 30, 2004, the Office of the 64.605. The OMB Control Number is separate proposed and final rules. Secretary of Transportation published a 3060–1089. The total annual reporting FMCSA will not use the direct final rule final rule adopting direct final rule burden for respondents for these procedures for complex or controversial procedures (69 FR 4455) and the Federal collections of information, including the issues. Railroad Administration published a time for gathering and maintaining the DATES: Effective Date: May 28, 2010. final rule adopting direct final rule

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procedures on March 7, 2007 (72 FR 30 days after the date of publication in PART 389—[AMENDED] 10086). the Federal Register for the submission ■ of adverse comments or notices of intent 1. The authority citation for 49 CFR Direct Final Rule Procedures Notice of part 389 is revised to read as follows: Proposed Rulemaking (NPRM) to submit adverse comments. FMCSA has the discretion to use a longer time Authority: 49 U.S.C. 113, 501 et seq., FMCSA proposed direct final period for a direct final rule to go into subchapters I and III of chapter 311, chapter rulemaking procedures in an NPRM effect and a longer period for the 313, and 31502; 42 U.S.C 4917; and 49 CFR published on March 17, 2010, in the submission of adverse comments if the 1.73 Federal Register (75 FR 12720). The Agency determines that it is necessary. ■ 2. Section 389.11 is revised to read as NPRM described the process of how If FMCSA receives adverse comments, follows: FMCSA will determine whether a or receives notice of intent to file particular rulemaking is adverse comments by the date specified § 389.11 General. noncontroversial and unlikely to result in the direct final rule, it will publish Except as provided in § 389.39, Direct in adverse comments. The NPRM also a notice in the Federal Register final rulemaking procedures, unless the described how FMCSA determines withdrawing the direct final rule before Administrator, for good cause, finds a whether a comment is adverse or not. it goes into effect. rule is impractical, unnecessary, or Discussion of Comments Received on contrary to the public interest, and the NPRM Regulatory Analyses and Notices incorporates such a finding and a brief FMCSA provided a 30-day comment FMCSA has determined that this statement for the reason for it in the period that ended on April 16, 2010. In action is not a significant regulatory rule, a notice of proposed rulemaking response, the Agency received three action under Executive Order 12866 or must be issued, and interested persons comments and one question on the under DOT’s Regulatory Policies and are invited to participate in the NPRM. Procedures. There are no costs rulemaking proceedings involving rules The Commercial Vehicle Safety associated with the final rule. There will under an Act. Alliance, Advocates for Highway and be some cost savings in Federal Register ■ 3. Add new § 389.39 to read as Auto Safety (Advocates), and the publication costs and may be savings in follows: American Trucking Associations efficiencies for the public and FMCSA submitted comments supporting the personnel in eliminating duplicative § 389.39 Direct final rulemaking direct final rule procedures that were reviews. I certify that this rule will not procedures proposed in the NPRM. Advocates have a significant impact on a A direct final rule makes regulatory additionally stated that FMCSA should substantial number of small entities. changes and states that those changes not use direct final rule procedures on Finally, FMCSA states that there are no will take effect on a specified date safety-related rules, as these rules Federalism implications. unless FMCSA receives an adverse should be considered controversial and comment or notice of intent to file an subject to full public notice and Paperwork Reduction Act adverse comment by the date specified comment proceedings. They further in the direct final rule published in the This rulemaking contains no maintain that FMCSA’s granting of Federal Register. information collection requirements applications for waivers and two-year (a) Types of actions appropriate for under the Paperwork Reduction Act of exemptions, under 49 U.S.C. 31315(a) direct final rulemaking. Rules that the 1995 (44 U.S.C. 3501–3520). and (b), and the renewal of such Administrator determines to be non- exemptions, should always be treated as Unfunded Mandates Reform Act controversial and unlikely to result in controversial and subject to full public adverse public comments may be notice and comment procedures. As FMCSA has determined that the published in the final rule section of the stated in the NPRM, FMCSA will use requirements of Title II of the Unfunded Federal Register as direct final rules. the direct final rule process for routine Mandates Act of 1995 do not apply to These include non-controversial rules and noncontroversial rules. In the event this final rule. that: that FMCSA publishes a direct final rule Environment (1) Make non-substantive on an action that proves to be clarifications or corrections to existing controversial, the public will have FMCSA considered the environmental rules; sufficient time and opportunity to impacts of this final rule under the (2) Incorporate by reference the latest submit adverse comments, or submit National Environmental Policy Act of or otherwise updated versions of notices of intent to file adverse 1969, and determined it is categorically technical or industry standards; comments by the date specified in the excluded from further environmental (3) Affect internal FMCSA procedures direct final rule. If this occurs, FMCSA analysis under FMCSA Order 5610.1 such as filing requirements and rules will publish a notice in the Federal paragraph 6.x of Appendix 2. FMCSA governing inspection and copying of Register withdrawing the direct final Order 5610.1 was published on March documents; rule before it goes into effect. 1, 2004 (69 FR 9680). A Categorical (4) Update existing forms; and Arkema Incorporated inquired about Exclusion Determination is available for (5) Make minor changes to rules the number of days FMCSA is inspection or copying in the regarding statistics and reporting considering for a direct final rule to regulations.gov Web site listed under requirements, such as a change in become effective after the date of ADDRESSES. reporting period (for example, from publication in the Federal Register. As quarterly to annually) or eliminating a FMCSA intends to use the direct final List of Subjects in 49 CFR Part 389 type of data collection no longer rule process for routine and necessary. Rulemaking procedures. noncontroversial rules, the Agency will (b) Adverse comment. An adverse typically use 60 days after the date of ■ For the reasons set forth in the comment is a comment that FMCSA publication in the Federal Register for preamble, FMCSA amends 49 CFR Part judges to be critical of the rule, to the direct final rule to go into effect and 389 as follows: suggest that the rule should not be

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adopted, or to suggest that a change migratory bird rehabilitation in the procedures are unnecessary. We find should be made to the rule. Under the United States. Before creation of those that good cause exists to delete direct final rule process, FMCSA does regulations, rehabilitators were required paragraph (i) of section 21.31 without not consider the following types of to obtain a special purpose permit to going through the public-notice-and- comments to be adverse: engage in rehabilitation activities. The comment procedure because the (1) Comments recommending another language in the final paragraph of the transition language is anachronistic and rule change, unless the commenter 2003 regulations dealt with the no public input received through an states that the direct final rule will be transition of special purpose permit open comment period could justify ineffective without the change; holders to operation under the new retention of this paragraph. For the same (2) Comments outside the scope of the rehabilitation permit regulations. This reasons stated above, we find that there rule and comments suggesting that the paragraph is no longer relevant, so we is good cause to have this final rule take rule’s policy or requirements should or remove it from the regulation. effect immediately upon publication in should not be extended to other Agency DATES: This regulations change will be the Federal Register (5 U.S.C. 553(d)(3). programs outside the scope of the rule; effective on May 28, 2010. (3) Comments in support of the rule; Required Determinations FOR FURTHER INFORMATION CONTACT: Dr. or George T. Allen, Division of Migratory Regulatory Planning and Review (4) Comments requesting clarification. (c) Confirmation of effective date. Bird Management, U.S. Fish and The Office of Management and Budget FMCSA will publish a confirmation rule Wildlife Service, 703–358–1825. (OMB) has determined that this rule is document in the Federal Register, if it SUPPLEMENTARY INFORMATION: not significant under Executive Order 12866. OMB bases its determination has not received an adverse comment or Background notice of intent to file an adverse upon the following four criteria: comment by the date specified in the On October 27, 2003, we published a a. Whether the rule will have an direct final rule. The confirmation rule final rule in the Federal Register (68 FR annual effect of $100 million or more on document tells the public the effective 61123) to establish regulations for the the economy or adversely affect an date of the rule. issuance of permits to rehabilitate economic sector, productivity, jobs, the (d) Withdrawal of a direct final rule. migratory birds in the United States. environment, or other units of the (1) If FMCSA receives an adverse These regulations are at 50 CFR 21.31. government. comment or a notice of intent to file an Prior to issuance of the rehabilitation b. Whether the rule will create adverse comment within the comment permit rule, migratory bird inconsistencies with other Federal period, it will publish a rule document rehabilitators were required to obtain a agencies’ actions. in the Federal Register, before the special use permit to engage in c. Whether the rule will materially effective date of the direct final rule, rehabilitation activities. The last affect entitlements, grants, user fees, advising the public and withdrawing paragraph in the rehabilitation permit loan programs, or the rights and the direct final rule. rule dealt with how we would handle obligations of their recipients. (2) If FMCSA withdraws a direct final issuing permits during the transition to d. Whether the rule raises novel legal rule because of an adverse comment, the the (then) new regulations. Since or policy issues. publication of that rule, all persons Agency may issue a notice of proposed Regulatory Flexibility Act (5 U.S.C. 601 interested in having a permit to rulemaking if it decides to pursue the et seq.) rulemaking. rehabilitate migratory birds must have transitioned from a special purpose Under the Regulatory Flexibility Act Issued on: May 24, 2010. permit to a rehabilitation permit. (5 U.S.C. 601 et seq., as amended by the Anne S. Ferro, Because special purpose permits are Small Business Regulatory Enforcement Administrator. valid for only 3 years, all of those Fairness Act (SBREFA) of 1996 (Pub. L. [FR Doc. 2010–12834 Filed 5–27–10; 8:45 am] permits in existence in 2003 have 104–121)), whenever an agency is BILLING CODE 4910–EX–P expired by now. required to publish a notice of Therefore, the text in 50 CFR 21.31(i), rulemaking for any proposed or final ‘‘Will I need to apply for a new permit rule, it must prepare and make available DEPARTMENT OF THE INTERIOR under this section if I already have a for public comment a regulatory special purpose permit to rehabilitate flexibility analysis that describes the Fish and Wildlife Service birds, issued under § 21.27 (Special effect of the rule on small entities (that purpose permits)?’’ is no longer needed. is, small businesses, small 50 CFR Part 21 With this final rule, our only change to organizations, and small government [FWS–R9–MB–2010–0020; 91200–1231– the rehabilitation regulations is to jurisdictions). However, no regulatory 9BPP] remove all of the language under flexibility analysis is required if the paragraph (i). This change is simply a head of an agency certifies the rule will RIN 1018–AX09 ministerial administrative action to not have a significant economic impact on a substantial number of small Migratory Bird Permits; Changes in the remove text that is no longer necessary from the Code of Federal Regulations entities. Regulations Governing Migratory Bird SBREFA amended the Regulatory Rehabilitation and, therefore, will have no substantive effect on the general public. Flexibility Act to require Federal AGENCY: Fish and Wildlife Service, agencies to provide the statement of the Administrative Procedure Interior. factual basis for certifying that a rule ACTION: Final rule. In accordance with section 553 will not have a significant economic (b)(3)(B) of the Administrative impact on a substantial number of small SUMMARY: We, the U.S. Fish and Procedure Act (5 U.S.C. 551 et seq.), we entities. We have examined this rule’s Wildlife Service, published a final rule are issuing this final rule without prior potential effects on small entities as in the Federal Register on October 27, opportunity for public comment required by the Regulatory Flexibility 2003, to create regulations governing because public notice and comment Act, and have determined that this

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action will not have a significant under E.O. 13132. It will not interfere migratory bird rehabilitation on tribal economic impact on a substantial with the States’ abilities to manage lands. number of small entities because the themselves or their funds. No significant change in the regulation is simply to economic impacts are expected to result Energy Supply, Distribution, or Use eliminate language that is no longer from the regulation of migratory bird E.O. 13211 requires agencies to needed. Consequently, we certify that rehabilitation. prepare Statements of Energy Effects because this rule will not have a Civil Justice Reform when undertaking certain actions. significant economic effect on any Because this rule only affects the entity, let alone a substantial number of In accordance with E.O. 12988, the practice of migratory bird rehabilitation small entities, a regulatory flexibility Office of the Solicitor has determined in the United States, it is not a analysis is not required. that the rule does not unduly burden the This rule is not a major rule under the judicial system and meets the significant regulatory action under E.O. SBREFA (5 U.S.C. 804(2)). It will not requirements of sections 3(a) and 3(b)(2) 12866, and will not significantly affect have a significant economic impact on of the Order. energy supplies, distribution, or use. No Statement of Energy Effects is required. a substantial number of small entities. Paperwork Reduction Act a. This rule does not have an annual We examined this rule under the Environmental Consequences of the effect on the economy of $100 million Proposed Action or more. There are no costs to Paperwork Reduction Act of 1995. OMB permittees or any other part of the has approved the information collection This action has no environmental or requirements of the Migratory Bird economy associated with these socioeconomic impacts. regulation changes. Permits Program and assigned OMB b. This rule will not cause a major control number 1018–0022, which Compliance With Endangered Species increase in costs or prices for expires November 30, 2010. This rule Act Requirements consumers, individual industries, does not change the approved Federal, State, or local government information collection. Information Section 7 of the Endangered Species agencies, or geographic regions. The from the collection is used to ensure Act (ESA) of 1973, as amended (16 practice of migratory bird rehabilitation that rehabilitation permit applicants are U.S.C. 1531 et seq.), requires that ‘‘The does not significantly affect costs or qualified and that their activities are Secretary [of the Interior] shall review prices in any sector of the economy. documented. A Federal agency may not other programs administered by him c. This rule will not have significant conduct or sponsor and a person is not and utilize such programs in adverse effects on competition, required to respond to a collection of furtherance of the purposes of this employment, investment, productivity, information unless it displays a chapter’’ (16 U.S.C. 1536(a)(1)). It further innovation, or the ability of U.S.-based currently valid OMB control number. states that the Secretary must ‘‘insure enterprises to compete with foreign- National Environmental Policy Act that any action authorized, funded, or based enterprises. Neither regulation carried out * * * is not likely to We evaluated the environmental nor practice of migratory bird jeopardize the continued existence of impacts of the change to the regulations, rehabilitation significantly affects any endangered species or threatened and determined that, within the spirit business activities. species or result in the destruction or and intent of the Council on Unfunded Mandates Reform Act Environmental Quality’s regulations for adverse modification of [critical] habitat’’ (16 U.S.C. 1536(a)(2)). This In accordance with the Unfunded implementing the National regulatory change will not affect Mandates Reform Act (2 U.S.C. 1501 et Environmental Policy Act (NEPA), and threatened or endangered species or seq.), we have determined the following: other statutes, orders, and policies that a. This rule will not ‘‘significantly or protect fish and wildlife resources, the their habitats in the United States. uniquely’’ affect small governments. A regulatory change does not have a List of Subjects in 50 CFR Part 21 small government agency plan is not significant effect on the human required. Neither regulation nor practice environment. Under the guidance in Exports, Hunting, Imports, Reporting of migratory bird rehabilitation affects Appendix 1 of the Department of the and recordkeeping requirements, small government activities. Interior Manual at 516 DM 8, we Transportation, Wildlife. b. This rule will not produce a conclude that the regulatory change is ■ For the reasons stated in the preamble, Federal mandate of $100 million or categorically excluded because it has greater in any year; i.e., it is not a ‘‘no or minor potential environmental we amend subpart C of part 21, ‘‘significant regulatory action’’ under the impact’’ (516 DM 8.5(A)(1)). No more subchapter B, chapter I, title 50 of the Unfunded Mandates Reform Act. No comprehensive NEPA analysis of the Code of Federal Regulations, as follows: revisions of State, tribal, or territorial regulations change is required. PART 21—MIGRATORY BIRD PERMITS regulations will be necessary. Government-to-Government Takings Relationship With Tribes ■ 1. The authority citation for part 21 In accordance with E.O. 12630, the In accordance with the President’s continues to read as follows: rule does not have significant takings memorandum of April 29, 1994, Authority: Migratory Bird Treaty Act, 40 implications. A takings implication ‘‘Government-to-Government Relations Stat. 755 (16 U.S.C. 703–12); Public Law 95– assessment is not required. This rule with Native American Tribal 616, 92 Stat. 3112 (16 U.S.C. 712(2)); Pub. L. does not contain a provision for taking Governments’’ (59 FR 22951), Executive 106–108, 113 Stat. 1491, Note Following 16 of private property. Order 13175, and 512 DM 2, we have U.S.C. 703. evaluated potential effects on Federally Federalism recognized Indian Tribes and have § 21.31 [Amended] This rule does not have sufficient determined that this rule will not ■ 2. Amend § 21.31 by removing Federalism effects to warrant interfere with tribes’ ability to manage paragraph (i). preparation of a Federalism assessment themselves or their funds or to regulate

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Dated: May 17, 2010. Thomas L. Strickland, Assistant Secretary for Fish and Wildlife and Parks. [FR Doc. 2010–12882 Filed 5–27–10; 8:45 am] BILLING CODE P

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Proposed Rules Federal Register Vol. 75, No. 103

Friday, May 28, 2010

This section of the FEDERAL REGISTER appropriate in order to provide a the program’s administration to USDA contains notices to the public of the proposed sufficient amount of time to comment Rural Development Cooperative issuance of rules and regulations. The while ensuring program performance Programs. purpose of these notices is to give interested during the current fiscal year. This B. Nature of the Program persons an opportunity to participate in the action will also provide applicants more rule making prior to the adoption of the final This subpart contains the provisions rules. time to develop quality applications for the program with minimal disruptions and procedures by which the Agency in ongoing farming activities. will administer the Value-Added DEPARTMENT OF AGRICULTURE The comment period for the Producer Grant (VAPG) Program. The information collection under the primary objective of this grant program Rural Business-Cooperative Service Paperwork Reduction Act of 1995 is to help Independent Producers of continues through July 27, 2010. Agricultural Commodities, Agriculture Producer Groups, Farmer and Rancher 7 CFR Parts 1951 and 4284 ADDRESSES: You may submit comments Cooperatives, and Majority-Controlled RIN 0570–AA79 to this proposed rule by any of the following methods: Producer-Based Business Ventures develop strategies to create marketing Value-Added Producer Grant Program • Federal eRulemaking Portal: Go to http://www.regulations.gov. Follow the opportunities and to help develop Business Plans for viable marketing AGENCY: Rural Business-Cooperative instructions for submitting comments opportunities regarding production of Service, USDA. electronically. bio-based products from agricultural ACTION: Proposed rule. • Mail: Submit your written commodities. As with all value-added comments via the U.S. Postal Service to efforts, generating new products, SUMMARY: The Food, Conservation, and the Branch Chief, Regulations and creating expanded marketing Energy Act of 2008 (the Act), amends Paperwork Management Branch, U.S. opportunities, and increasing producer section 231 of the Agricultural Risk Department of Agriculture, Stop 0742, Protection Act of 2000, which income are the end goal. 1400 Independence Avenue, SW., Eligible applicants are independent established the Value-Added Producer Washington, DC 20250–0742. Grant Program. This program will be • agricultural producers, farmer and Hand Delivery/Courier: Submit rancher cooperatives, agricultural administered by the Rural Business- your written comments via Federal Cooperative Service. Under the producer groups, and majority- Express mail, or other courier service controlled producer-based business proposed program, grants will be made requiring a street address, to the Branch to help eligible producers of agricultural ventures. Chief, Regulations and Paperwork Grant funds cannot be used for commodities enter into or expand value- Management Branch, U.S. Department added activities including the planning, repairing, rehabilitating, of Agriculture, 300 7th Street, SW., 7th acquiring, or constructing a building or development of feasibility studies, Floor, Washington, DC 20024. business plans, and marketing facility (including a processing facility). All written comments will be They also cannot be used to purchase, strategies. The program will also available for public inspection during rent, or install fixed equipment. provide working capital for expenses regular work hours at the 300 7th Street, This program requires matching funds such as implementing an existing viable SW, 7th Floor address listed above. equal to or greater than the amount of marketing strategy. The Agency FOR FURTHER INFORMATION CONTACT: grant funds requested. The Act provides proposes to implement the program to Andrew Jermolowicz USDA, Rural for both mandatory and discretionary meet the goals and requirements of the Development, Rural Business- funding for the program, as may be Act. Cooperative Service, Room 4016, South appropriated. During subsequent years, The Agency is also proposing an Agriculture Building, Stop 3250, 1400 additional funding may be appropriated. amendment to existing regulations that Independence Avenue, SW., The number of grants awarded will vary would allow the delegation of the post- Washington, DC 20250–3250, from year to year, based on availability award servicing of the proposed Telephone: (202) 720–7558, E-mail of funds and the quality of applications. program to USDA State Office [email protected]. The maximum grant amount that may personnel. Please note that this be awarded is $500,000. However, the SUPPLEMENTARY INFORMATION: amendment would only affect the post- Agency may reduce that amount award servicing of the grant and would I. Background depending on the total funds not affect the process for awarding appropriated for the program in a given A. Statutory Authority grants, which would still occur at the fiscal year. This policy allows more National office. Section 231 of the Agriculture Risk grants to be awarded under reduced DATES: Comments on the proposed rule Protection Act of 2000 (Pub. L. 106–224) funding. must be received on or before June 28, as amended by section 6202 of the Food, The Agency notes, pursuant to general 2010 to be assured of consideration. A Conservation, and Energy Act of 2008 Federal directives providing guidance 30-day comment period is provided for (Pub. L. 110–246) (see 7 U.S.C. 1621 on grant usage, that the 100 percent interested persons to comment on the note) authorizes the establishment of the matching funds requirement described regulatory provisions of this proposed Value-Added Agricultural Product in the Agricultural Risk Protection Act rule. The Agency has determined that a Market Development grants, also known of 2000 may include payment for the 30-day comment period, rather than the as Value-Added Producer Grants. The time of the applicant/producer or the traditional 60 day comment period, is Secretary of Agriculture has delegated applicant/producer’s family members

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only for the production of the business D. Exception Authority (§ 4284.904) • An independent producer; and marketing plans. Please contact the This section explains the • An agricultural producer group; state office for further information. Administrator’s authority to make • A farmer or rancher cooperative; or II. Request for Public Comments on exceptions to regulatory requirements or • A majority-controlled producer- Specific Aspects of the Proposed provisions and specifically excludes based business venture. Program permission to make exceptions for: • Applicant eligibility L. Ineligible Applicants (§ 4284.921) The Agency is interested in receiving • Project eligibility comments on all aspects of the proposed This section describes those The Agency believes that applicant rule. Areas in which the Agency is conditions under which an applicant and project eligibility criteria must be seeking specific comments are will be considered ineligible to maintained at all times in order to be identified below. All comments should participate in this program. consistent with statutory authority. be submitted as indicated in the M. Project Eligibility (§ 4284.922) ADDRESSES section of this preamble. E. Nondiscrimination and Compliance a. Medium-sized farm. As proposed, With Other Federal Laws (§ 4284.905) The eligibility requirements applicable to this subpart are described medium-sized farm is defined as ‘‘A This section explains that applicants in this section. For a product to be farm or ranch that has averaged between must comply with all applicable Federal eligible it must meet the definition of a $250,001 and $700,000 in annual gross laws. Additionally, this section explains value-added agricultural product. The sales of agricultural products in the how an applicant that believes it has applicant must also demonstrate that, as previous three years.’’ The Agency is been discriminated against as a result of a result of the project, the customer base specifically requesting comment on applying for funds under this program for the agricultural commodity or whether it is more appropriate to use can file a Civil Rights complaint with product is expanded, and that a greater $500,000 as the upper limit in this the USDA Office of Adjudication and portion of the revenue derived from the definition. Please be sure to provide Compliance. rationale for your position. marketing or processing of the value- b. Branding activities. The Agency is F. State Laws, Local Laws, Regulatory added product is available to the proposing to allow branding, packaging, Commission Regulations (§ 4284.906) agricultural producer of the commodity or other product differentiation This section addresses how conflicts or product. activities that are not more than 25 between this subpart and State or local Other aspects of project eligibility percent of the total project cost of a laws, or regulatory commission discussed in this section include, but value-added project for products regulations will be resolved. are not limited to, availability of otherwise eligible in one of the five matching funds, submittal of various G. Environmental Requirements items such as work plans, budgets, value-added methodologies specified in (§ 4284.907) paragraphs (1)(i) through (v) of the feasibility studies, and business plans, definition of value-added agricultural This section addresses the and how applications that include product to be eligible. The Agency is relationship between grants awarded branding and packaging will be seeking specific comment on the under this subpart and the handled. proposed 25 percent limit. If you believe environmental requirements of subpart G of 7 CFR part 1940. N. Eligible Uses of Grant Funds a different limit is more appropriate, (§ 4284.923) please identify your suggested limit and H. Incorporation by Reference provide your rationale to support your (§ 4284.908) The section identifies the eligible uses suggestion. of grant and matching funds for both This section identifies the various planning funds and working capital III. Discussion of the Proposed Rule regulations that are incorporated by funds, and requires that grant and reference in this subpart. The following paragraphs present a matching funds meet the same use discussion of provisions of each section I. Forms, Regulations, and Instructions restrictions, including being used to of the proposed rule in the order that (§ 4284.909) fund only the costs for approved purposes. they appear. This section identifies how forms, A. Purpose (§ 4284.901) regulations, instructions and other O. Ineligible Uses of Grant and materials related to programs may be Matching Funds (§ 4284.924) This section implements the value- obtained. added agricultural product market This section describes those activities development grant program J. Notifications (§ 4284.915) for which Agency funds under this administered by the Rural Business- This section describes the methods subpart may not be used. Ineligible uses Cooperative Service whereby grants are the Agency will use in making include expenses related to payment for made to enable producers to develop notifications regarding funding and preparation of the grant application and businesses that produce and market programmatic changes. any activities prohibited by 7 CFR parts value-added agricultural products. 3015 and 3019, 2 CFR part 230, and 48 K. Applicant Eligibility (§ 4284.920) CFR part 31. Expenses related to the B. Definitions (§ 4284.902) This section describes the production of any agricultural This section presents program specific requirements an applicant must meet to commodity or product, including seed, definitions which are included to more be eligible for a grant under this subpart, rootstock, labor for harvesting the crop, clearly implement the program. including, but not limited to, such areas and delivery of the commodity to a as citizenship, legal authority, and processing facility are not eligible. Any C. Review or Appeal Rights (§ 4284.903) multiple grants. An applicant must costs of the project incurred prior to the This section addresses how a person demonstrate that they meet all date of grant approval, including legal may seek a review of an Agency definition requirements for one of the or other expenses needed to incorporate decision or file an appeal. following applicant types: or organize a business, are ineligible.

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P. Funding Limitations (§ 4284.925) received. Applications will be scored servicing regulation, to USDA State This section describes the maximum based on the information provided and/ Office personnel. As noted earlier, the grant fund amount that a grant recipient or referenced in the scoring section of awarding of grants will occur at the can receive ($500,000) and several grant the application at the time the applicant National office. terms, including, but not limited to, the submits the application to the Agency. BB. Transfer of Obligations (§ 4284.962) portion of total project eligible costs that The maximum number of points that may be awarded to an application is This section explains those grant funds can be used to pay (up to circumstances under which an 50%) and the term of a grant (not to 100, based on the criteria specified in this section. obligation of funds established for an exceed 3 years). applicant may be transferred to a Q. Preliminary Review (§ 4284.930) X. Award Process (§ 4284.950) different (substituted) applicant. This section encourages applicants to This section describes the process by CC. Grant Close out and Related contact their State Office before they which the Agency will select Activities (§ 4284.963) submit their applications. applications for funding. Funding will be based on the score an application has This section addresses the R. Application Package (§ 4284.931) received compared to the scores of other requirements for conducting grant close out and other related activities. The application forms, content, applications. Higher scoring evaluation criteria, verifications and applications will receive first IV. Administrative Requirements certifications required in the application consideration for funding. The Agency A. Executive Order 12866 package are detailed in this section. will notify in writing applicants whose applications have been selected for This proposed rule has been reviewed S. Siplified Application (§ 4284.932) funding as well as inform those who did under Executive Order (EO) 12866 and This section addresses simplified not receive funding, including a brief has been determined not significant by applications, which are applicable to explanation as to why. the Office of Management and Budget. applicants requesting less than $50,000. The EO defines a ‘‘significant regulatory Y. Grant Agreement (§ 4284.951) action’’ as one that is likely to result in T. Filing Instructions (§ 4284.933) This section describes the conditions a rule that may: (1) Have an annual This section provides the instructions under which the grant will be made to effect on the economy of $100 million for filing an application with the the applicant. Each grantee will be or more or adversely affect, in a material Agency. Completed applications must required to meet all terms and way, the economy, a sector of the be received on or before March 15 of conditions of the award within 90 days economy, productivity, competition, each year to be considered for funding of receiving the Letter of Conditions, jobs, the environment, public health or that fiscal year. Late and/or incomplete unless otherwise specified by the safety, or State, local, or tribal applications will not be considered. Agency at the time of the award. governments or communities; (2) create Included in this section is information Z. Monitoring and Reporting Program a serious inconsistency or otherwise interfere with an action taken or on where to submit and the format Performance (§ 4284.960) required for submission. planned by another agency; (3) The required monitoring and materially alter the budgetary impact of U. Processing Applications (§ 4284.940) reporting activities are described in this entitlements, grants, user fees, or loan This section explains the process by section. Requirements include programs or the rights and obligations of which the Agency will conduct an semiannual performance reports which recipients thereof; or (4) raise novel application review to determine if the must be submitted to the Agency within legal or policy issues arising out of legal application is complete and meets 30 days following March 31 and mandates, the President’s priorities, or program requirements. After review, the September 30. Failure to submit timely the principles set forth in this EO. Agency will notify applicants in writing performance reports may result in the The Agency conducted a cost-benefit of their findings. Applicants determined Agency withholding grant funds. analysis to fulfill the requirements of to be ineligible may revise and resubmit AA. Grant Servicing (§ 4284.961) Executive Order 12866. The Agency has their applications to the Agency on or identified potential benefits to before the application deadline. This section states that all grants prospective program participants and awarded under this subpart will be the Agency that are associated with V. Application Withdrawal (§ 4284.941) serviced pursuant to 7 CFR part 1951, improving the availability of funds to This section describes the process subparts E and O, and in Departmental help producers (farmers) expand their whereby an applicant must notify the Regulations. Note that as a separate customer base for the products or Agency in writing of its intention to action being proposed today, the commodities that they produce. This withdraw its application for assistance. Agency is proposing an amendment to results in a greater portion of the § 1951.215 of subpart E. Paragraph (b)(2) revenues derived from the value-added W. Scoring Applications (§ 4284.942) in that section currently states that ‘‘All activity being made available to the This section describes the process and other grants will be serviced in producer of the product. These benefits criteria the Agency will use to score accordance with the Grant Agreement are important to the success of applications. The Agency will only and this subpart. Prior approval of the individual producers, farmer or rancher score applications for which it has Administrator is required except for cooperatives, agriculture producer determined that the applicant and actions covered in the preceding groups, and majority-controlled project are eligible and that the paragraph.’’ The Agency is proposing to producer based business ventures. application is complete and sufficiently amend this paragraph by deleting the responsive to program requirements. second sentence. This proposed B. Unfunded Mandates Reform Act Each such application the Agency amendment would facilitate the Title II of the Unfunded Mandates receives on or before the application delegation of the servicing of the Reform Act of 1995 (UMRA), Public deadline in a fiscal year will be scored proposed program, and other grant Law 104–4, establishes requirements for in the fiscal year in which it was programs that use part 1951 as their Federal agencies to assess the effects of

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their regulatory actions on State, local, warrant the preparation of a Federalism www.whitehouse.gov/omb/grants/ and tribal governments and the private Assessment. The provisions contained spoc.html. sector. Under section 202 of the UMRA, in the proposed rule will not have a H. Executive Order 13175, Consultation Rural Development must prepare, to the substantial direct effect on States or and Coordination With Indian Tribal extent practicable, a written statement, their political subdivisions or on the Governments including a cost-benefit analysis, for distribution of power and proposed and final rules with ‘‘Federal responsibilities among the various This executive order imposes mandates’’ that may result in government levels. requirements on Rural Development in expenditures to State, local, or tribal the development of regulatory policies F. Regulatory Flexibility Act governments, in the aggregate, or to the that have tribal implications or preempt private sector, of $100 million or more The Regulatory Flexibility Act (RFA) tribal laws. Rural Development has in any one year. With certain (5 U.S.C. 601–602) generally requires an determined that the proposed rule does exceptions, section 205 of UMRA agency to prepare a regulatory flexibility not have a substantial direct effect on requires Rural Development to identify analysis of any rule subject to notice one or more Indian tribe(s) or on either and consider a reasonable number of and comment rulemaking requirements the relationship or the distribution of regulatory alternatives and adopt the under the Administrative Procedure Act powers and responsibilities between the least costly, most cost-effective, or least or any other statute. If an agency Federal Government and the Indian burdensome alternative that achieves certifies that the rule will not have a tribes. Thus, the proposed rule is not the objectives of the rule. significant economic impact on a subject to the requirements of Executive This proposed rule contains no substantial number of small entities, Order 13175. Federal mandates (under the regulatory this analysis is not required. Small I. Programs Affected provisions of Title II of the UMRA) for entities include small businesses, small State, local, and tribal governments or organizations, and small governmental Catalog of Federal Domestic the private sector. Thus, this rule is not jurisdictions. Assistance (CFDA) Number: This subject to the requirements of sections In compliance with the RFA, Rural program is listed in the Catalog of 202 and 205 of the UMRA. Development has determined that this Federal Domestic Assistance under action will not have a significant Number 10.352. C. Environmental Impact Statement economic impact on a substantial J. Paperwork Reduction Act This document has been reviewed in number of small entities for the reasons accordance with 7 CFR part 1940, discussed below. While, the majority of The collection of information subpart G, ‘‘Environmental Program.’’ producers of agricultural commodities requirements contained in this proposed Rural Development has determined that expected to participate in this Program rule have been submitted to the Office this action does not constitute a major will be small businesses, the average of Management and Budget (OMB) for Federal action significantly affecting the cost to participants is estimated to be clearance. In accordance with the quality of the human environment and, approximately 20 percent of the total Paperwork Reduction Act of 1995, in accordance with the National mandatory funding available to the USDA Rural Development will seek Environmental Policy Act (NEPA) of program in fiscal years 2009 through standard OMB approval of the reporting 1969, 42 U.S.C. 4321 et seq., an 2012. Further, this regulation only requirements contained in this proposed Environmental Impact Statement is not affects producers that choose to rule and hereby opens a 60-day public required. participate in the program. Lastly, small comment period. entity applicants will not be affected to Title: Value-Added Producer Grant D. Executive Order 12988, Civil Justice a greater extent than large entity Program. Reform applicants. Type of Request: New Collection. This rule has been reviewed in Abstract: The collection of accordance with Executive Order 12988, G. Executive Order 12372, information is vital to Rural Civil Justice Reform. Except where Intergovernmental Review of Federal Development to make decisions specified, all State and local laws and Programs regarding the eligibility of grant regulations that are in direct conflict This program is subject to Executive recipients in order to ensure compliance with this rule will be preempted. Order 12372, which requires with the regulations and to ensure that Federal funds carry Federal intergovernmental consultation with the funds obtained from the requirements. No person is required to State and local officials. Government are being used for the apply for funding under this program, Intergovernmental consultation will purposes for which they were awarded. but if they do apply and are selected for occur for the assistance to producers of Entities seeking funding under this funding, they must comply with the agricultural commodities in accordance program will have to submit requirements applicable to the Federal with the process and procedures applications that include information on program funds. This rule is not outlined in 7 CFR part 3015, subpart V. the entity’s eligibility, information on retroactive. It will not affect agreements Rural Development will conduct each of the evaluation criteria, entered into prior to the effective date intergovernmental consultation using certification of matching funds, of the rule. Before any judicial action RD Instruction 1940–J, verification of cost-share matching may be brought regarding the provisions ‘‘Intergovernmental Review of Rural funds, business plan, and feasibility of this rule, the administrative appeal Development Programs and Activities,’’ study. This information will be used to provisions of 7 CFR parts 11 and 780 available in any Rural Development determine applicant eligibility and to must be exhausted. office, on the Internet at http:// ensure that funds are used for www.rurdev.usda.gov/regs, and in 7 authorized purposes. E. Executive Order 13132, Federalism CFR part 3015, subpart V. Note that not Once an entity has been approved and It has been determined, under all States have chosen to participate in their application accepted for funding, Executive Order 13132, Federalism, that the intergovernmental review process. A the entity would be required to sign a this proposed rule does not have list of participating States is available at Letter of Conditions and a grant sufficient Federalism implications to the following Web site: http:// agreement. The grant agreement outlines

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the approved use of funds and actions, summarized and included in the request 4284.908 Incorporation by reference. as well as the restrictions and applicable for OMB approval. All comments will 4284.909 Forms, regulations, and laws and regulations that apply to the also become a matter of public record. instructions. award. Grantees must maintain a 4284.910—4284.914 [Reserved] K. E-Government Act Compliance financial system and, in accordance Section B—Funding and Programmatic with Departmental regulations, property USDA is committed to complying Change Notifications and procurement standards. Grantees with the E-Government Act of 2002 4284.915 Notifications. must submit semi-annual financial (Pub. L. 107–347, December 17, 2002), 4284.916—4284.919 [Reserved] to promote the use of the Internet and performance reports that include a Section C—Eligibility comparison of accomplishments with other information technologies to 4284.920 Applicant eligibility. the objectives stated in the application provide increased opportunities for citizen access to government 4284.921 Ineligible applicants. and a final performance report. Finally, 4284.922 Project eligibility. grantees must provide copies of information and services, and for other 4284.923 Eligible uses of grant funds. supporting documentation and/or purposes. 4284.924 Ineligible uses of grant and project deliverables for completed tasks List of Subjects in 7 CFR Parts 1951 and matching funds. 4284.925 Funding limitations. (e.g., feasibility studies, business plans, 4284 marketing plans, success stories, best 4284.926—4284.929 [Reserved] practices). Agricultural commodities, Section D—Applying for a Grant The following estimates are based on agricultural products, grant programs, rural areas, rural development, value- 4284.930 Preliminary review. the anticipated average over the first 4284.931 Applications. three years the program is in place: added activities. 4284.932 Simplified applications. Estimate of Burden: Public reporting For the reasons set forth in the 4284.933 Filing instructions. for this collection of information is preamble, parts 1951 and 4284 of title 4284.934—4284.939 [Reserved] estimated to average 34.1 hours per 7 of the Code of Federal Regulations is proposed to be amended as follows: Section E—Processing and Scoring response. Applications Respondents: Producers of agricultural commodities. PART 1951—SERVICING AND 4284.940 Processing applications. Estimated Number of Respondents: COLLECTIONS 4284.941 Application withdrawal. 535. 4284.942 Scoring applications. 1. The authority citation for part 1951 4284.943—4284.949 [Reserved] Estimated Number of Responses per continues to read as follows: Respondent: 3.3. Section F—Grant Awards and Agreement Estimated Number of Responses: Authority: 5 U.S.C. 301; 7 U.S.C. 1932 4284.950 Award process. 1,783. Note; 7 U.S.C. 1989; 31 U.S.C. 3716; 42 4284.951 Grant agreement. Estimated Total Annual Burden U.S.C. 1480. 4284.952—4284.959 [Reserved] (hours) on Respondents: 60,724. Copies of this information collection Subpart E—Servicing of Community Section G—Post Award Activities and Requirements can be obtained from Cheryl Thompson, and Direct Business Programs Loans Regulations and Paperwork and Grants 4284.960 Monitoring and reporting program Management Branch at (202) 692–0043. performance. 2. Section 1951.215 is amended by 4284.961 Grant servicing. Comments revising paragraph (b)(2) to read as 4284.962 Transfer of obligations. follows: 4284.963 Grant close out and related Comments are invited regarding: (a) activities. Whether the proposed collection of § 1951.215 Grants. 4284.964—4284.999 [Reserved] information is necessary for the proper * * * * * performance of the functions of Rural (b) * * * Section A—General Development, including whether the (2) All other grants will be serviced in § 4284.901 Purpose. information will have practical utility; accordance with the Grant Agreement This subpart implements the value- (b) the accuracy of Rural Development’s and this subpart. added agricultural product market estimate of the burden of the proposed development grant program (Value- PART 4284—GRANTS collection of information including the Added Producer Grants) administered validity of the methodology and 3. The authority citation for part 4284 by the Rural Business-Cooperative assumptions used; (c) ways to enhance continues to read as follows: Service whereby grants are made to the quality, utility and clarity of the Authority: 5 U.S.C. 301 and 7 U.S.C. 1989 enable producers to develop businesses information to be collected; and (d) that produce and market value-added ways to minimize the burden of the 4. Part 4284 is amended by revising agricultural products. collection of information on those who subpart J to read as follows: are to respond, including through the Subpart J—Value-Added Producer Grant § 4284.902 Definitions. use of appropriate automated, Program Administrator. The Administrator of electronic, mechanical, or other the Rural Business-Cooperative Service technological collection techniques or Section A—General or designees or successors. other forms of information technology. Sec. Agency. The Rural Business– Comments may be sent to Cheryl 4284.901 Purpose. Cooperative Service or successor for the Thompson, Regulations and Paperwork 4284.902 Definitions. programs it administers. Management Branch, Support Services 4284.903 Review or appeal rights. Agricultural commodity. An 4284.904 Exception authority. Division, U.S. Department of 4284.905 Nondiscrimination and unprocessed product of farms, ranches, Agriculture, Rural Development, Stop compliance with other Federal laws. nurseries, and forests and natural and 0742, 1400 Independence Ave., SW., 4284.906 State laws, local laws, regulatory man-made bodies of water to which the Washington, DC 20250–0742. All commission regulations. producer has legal access. Agricultural responses to this proposed rule will be 4284.907 Environmental requirements. commodities include any product

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cultivated, raised, or harvested by the to, 7 CFR parts 3015 through 3019, 7 contract out the production of an producer. Agricultural commodities do CFR part 3021, and 7 CFR part 3052, agricultural commodity are not not include horses or other animals and successor regulations to these parts. considered independent producers. raised or sold as pets, such as cats, dogs, Emerging market. A new or (2) A steering committee composed of and ferrets. developing product that is new to the specifically identified agricultural Agricultural producer. An individual applicant or the applicant’s product. producers in the process of organizing or entity directly engaged in the Family Farm. The term has the an eligible entity to operate a value- production of an agricultural meaning given it in section 761.2 of title added venture that will be owned or commodity that is the subject of the 7, Code of Federal Regulations (as in controlled by those specifically value-added project. effect on December 30, 2007), in effect identified agricultural producers Agricultural producer group. A that, a Family Farm produces supplying the agricultural product to membership organization that agricultural commodities for sale in the market. The steering committee represents independent producers and sufficient quantity to be recognized as a must have formed the eligible entity by whose mission includes working on farm and not a rural residence, owners the time of award. behalf of independent producers and are primarily responsible for daily Local or regional supply network. An the majority of whose membership and physical labor and management, hired interconnected group of entities through board of directors is comprised of help only supplements family labor, and which agricultural based products move independent producers. owners are related by blood or marriage from production through consumption Agricultural product. Plant and or are immediate family. in a local or regional area of the United animal products and their by-products Farm or ranch. Any place from which States. Examples of participants in a to include crops (including farming); $1,000 or more of agricultural products supply network may include livestock (including ranching); forestry were raised and sold or would have agricultural producers, processors, products; hydroponics; nursery stock; been raised and sold during the distributors, wholesalers, retailers, aquaculture; and fish and seafood previous year, but for an event beyond consumers, and entities that organize or products. the control of the farmer or rancher. provide technical assistance for Anticipated award date. A date when Farmer or rancher cooperative. A development of such networks. the Agency expects to announce business owned and controlled by Locally-produced agricultural food applications selected to receive grant agricultural producers that is product. Any agricultural food product funding. incorporated, or otherwise identified by that is raised, produced, and distributed Beginning farmer or rancher. This the state in which it operates, as a in: term has the meaning given it in section cooperatively operated business. (1) The locality or region in which the 343(a) of the Consolidated Farm and Feasibility study. An analysis by a final product is marketed, so that the Rural Development Act (7 U.S.C. qualified consultant of the economic, total distance that the product is 1991(a)) and is an entity in which none market, technical, financial, and transported is less than 400 miles from of the individual owners have operated management capabilities of a proposed the origin of the product; or a farm or a ranch for more than 10 years. project or business in terms of the (2) The State in which the product is For the purposes of this subpart, a project’s expectation for success. produced. Beginning Farmer or Rancher must Financial feasibility. The ability of a Majority-controlled producer-based currently own and produce the project or business to achieve the business venture. An entity (except agricultural commodity to which value income, credit, and cash flows to farmer or rancher cooperatives) in will be added. financially sustain a venture over the which more than 50 percent of the Business plan. A formal statement of long term. financial ownership and voting control a set of business goals, the reasons why Fiscal year. The Federal government’s is held by independent producers. they are believed attainable, and the fiscal year. Marketing plan. A plan for the project plan for reaching those goals, including Immediate family. Individuals who conducted by a qualified consultant that pro forma financial statements are closely related by blood, marriage, or identifies a market window, potential appropriate to the term and scope of the adoption, or live within the same buyers, a description of the distribution project and sufficient to evidence the household, such as a spouse, domestic system and possible promotional viability of the venture. It may also partner, parent, child, brother, sister, campaigns. contain background information about aunt, uncle, grandparent, grandchild, Matching funds. A cost-sharing the organization or team attempting to niece, or nephew. contribution to the project via reach those goals. Independent producers. confirmed cash or funding Conflict of interest. A situation in (1) Individual agricultural producers commitments from eligible sources which a person or entity has competing or entities that are solely owned or without a conflict of interest, that are professional or personal interests that controlled by agricultural producers. used for eligible project purposes during make it difficult for the person or Independent producers must produce the grant period. Eligible matching business to act impartially. An example and own a majority of the agricultural funds include confirmed applicant cash, is a grant recipient or an employee of a commodity to which value is being loan or line of credit, non-Federal grant recipient that conducts or significantly added and that is the subject of the sources (unless otherwise provided by participates in conducting a feasibility project proposal. Independent law), and third-party cash or eligible study for the recipient. producers must maintain ownership of third-party in-kind contributions. Day. Calendar day, unless otherwise the agricultural commodity or product Matching funds must be at least equal stated. from its raw state through the to the grant amount, and combined Departmental regulations. The production of the value-added product. grant and matching funds must equal regulations of the Department of Producers who produce the agricultural 100 percent of the total project costs. All Agriculture’s Office of Chief Financial commodity under contract for another eligible cash and third-party in-kind Officer (or successor office) as codified entity, but do not own the product matching funds contributions must be in 7 CFR parts 3000 through 3099, produced are not considered spent on eligible expenses during the including, but not necessarily limited independent producers. Entities that grant period, and are subject to the same

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use restrictions as grant funds. Matching plan, and/or marketing plan associated (2) For the Commonwealth of Puerto funds must be spent at a rate equal to with the processing and/or marketing of Rico, the island is considered rural and or greater than the rate at which grant a value-added agricultural product. eligible for Business Programs funds are expended, and if matching Product segregation. Separating an assistance, except for the San Juan funds are proposed in an amount agricultural commodity or product on Census Designated Place (CDP) and any exceeding the grant amount, those the same farm from other varieties of the other CDP with greater than 50,000 matching funds must be spent at a same commodity or product on the inhabitants. CDPs with greater than proportional rate equaling the match-to- same farm during production and 50,000 inhabitants, other than the San grant ratio identified in the budget. harvesting, with assurance of continued Juan CDP, may be determined to be Expected program income may not be separation from similar products during eligible if they are ‘‘not urban in used to fulfill the matching funds processing and marketing in a manner character.’’ Any such requests must be requirement at time of application. that results in the enhancement of the forwarded to the National Office, Further, funds used for an ineligible value of the separated commodity or Business and Industry Division, with purpose, contributions donated outside product. supporting documentation as to why the the proposed grant period, and in-kind Pro forma financial statement. A area is ‘‘not urban in character’’ for contributions that are invalid, over- financial statement that projects the review, analysis, and decision by the valued or include potential for a conflict future financial position of a company. Rural Development Under Secretary. of interest are not acceptable matching The statement is part of the business (3) For the State of Hawaii, all areas funds. All matching funds must be plan and includes an explanation of all within the State are considered rural verified by authentic documentation assumptions, such as input prices, and eligible for Business Programs from the source as part of the finished product prices, and other assistance, except for the Honolulu CDP application. economic factors used to generate the within the County of Honolulu. Medium-sized farm. A farm or ranch financial statements. The statement (4) For the purpose of defining a rural that has averaged between $250,001 and must include projections in the form of area in the Republic of Palau, the $700,000 in annual gross sales of cash flow statements, income Federated States of Micronesia, and the Republic of the Marshall Islands, the agricultural products in the previous statements, and balance sheets. Agency shall determine what three years. Project. All activities to be funded by Mid-tier value chain. Local and constitutes rural and rural area based on grant and matching funds. regional supply networks that link available population data. Qualified consultant. An independent producers with businesses (5) The determination that an area is and cooperatives that market value- independent, third-party possessing the ‘‘rural in character’’ under this definition added agricultural products in a manner knowledge, expertise, and experience to will be to areas that are within: that: perform the specific task required in an (i) An urbanized area that has two (1) Targets and strengthens the efficient, effective, and authoritative points on its boundary that are at least profitability and competitiveness of manner. 40 miles apart, which is not contiguous small and medium-sized farms and Rural Development. A mission area of or adjacent to a city or town that has a ranches that are structured as a family the Under Secretary for Rural population of greater than 150,000 farm; and Development within the U.S. inhabitants or the urbanized area of (2) Obtains agreement from an eligible Department of Agriculture (USDA), such a city town; or agricultural producer group, farmer or which includes Rural Housing Service, (ii) An urbanized area contiguous and rancher cooperative, or majority- Rural Utilities Service, and Rural adjacent to a city or town of greater than controlled producer-based business Business-Cooperative Service and their 50,000 population that is within one- venture that is engaged in the value successors. quarter mile of a rural area. chain on a marketing strategy. Rural or rural area. Any area of a Small farm. A farm or ranch that has (3) For mid-tier value chain projects State not in a city or town that has a averaged $250,000 or less in annual the Agency recognizes that, in a supply population of more than 50,000 gross sales of agricultural products in chain network, a variety of raw inhabitants, according to the latest the previous three years. agricultural commodity and value- decennial census of the United States, Socially disadvantaged farmer or added product ownership and transfer and the contiguous and adjacent rancher. This term has the meaning arrangements may be necessary. urbanized area, and any area that has given it in section 355(e) of the Consequently, applicant ownership of been determined to be ‘‘rural in Consolidated Farm and Rural the raw agricultural commodity and character’’ by the Under Secretary for Development Act (7 U.S.C. 2003(e)). A value-added product from raw through Rural Development, or as otherwise farmer or rancher who is a member of value-added is not necessarily required, identified in this definition. In a ‘‘socially disadvantaged group.’’ In this as long as the mid-tier value chain determining which census blocks in an definition, the term farmer or rancher proposal can demonstrate an increase in urbanized area are not in a rural area, means a person that is engaged in customer base and an increase in the Agency will exclude any cluster of farming or ranching or an entity solely revenue returns to the applicant census blocks that would otherwise be owned by individuals who are engaged producers supplying the majority of the considered not in a Rural Area only in farming or ranching. A socially raw agricultural commodity for the because the cluster is adjacent to not disadvantaged group means a group project. more than two census blocks that are whose members have been subjected to Planning grant. A grant to facilitate otherwise considered not in a rural area racial, ethnic, or gender prejudice the development of a defined program under this definition. because of their identity as members of of economic planning activities to (1) For the purposes of this definition, a group without regard to their determine the viability of a potential cities and towns are incorporated individual qualities. In the event that value-added venture, and specifically population centers with definite there are multiple farmer or rancher for the purpose of paying for a qualified boundaries, local self government, and owners of the applicant organization, (third-party) consultant to conduct and legal powers set forth in a charter the Agency requires that at least 51 develop a feasibility study, business granted by the State. percent of the ownership be held by

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members of a socially disadvantaged from the appropriate Agency official (c) Civil rights compliance. Recipients group. that oversees the program in question or of grants must comply with Title VI of State. Any of the 50 States of the appeal to the National Appeals Division the Civil Rights Act of 1964, Section 504 United States, the Commonwealth of in accordance with 7 CFR part 11. of the Rehabilitation Act of 1973. This Puerto Rico, the U.S. Virgin Islands, includes collection and maintenance of Guam, American Samoa, the § 4284.904 Exception authority. data on the basis of race, sex and Commonwealth of the Northern Mariana Except as specified in paragraphs (a) national origin of the recipient’s Islands, the Republic of Palau, the and (b) of this section, the membership/ownership and employees. Federated States of Micronesia, and the Administrator may make exceptions to These data must be available to conduct Republic of the Marshall Islands. any requirement or provision of this compliance reviews in accordance with State director. The term ‘‘State subpart, if such exception is necessary 7 CFR part 1901, subpart E. For grants Director’’ means, with respect to a State, to implement the intent of the initial compliance review will be the Director of the Rural Development authorizing statute in a time of national conducted after Form RD 400–4, State Office. emergency or in accordance with a ‘‘Assurance Agreement,’’ is signed and State office. USDA Rural Presidentially-declared disaster, or, on a one subsequent compliance review after Development offices located in each case-by-case basis, when such an the last disbursement of grant funds state. exception is in the best financial have been made, and the facility or Total project cost. The sum of all interests of the Federal Government and programs been in full operations for 90 grant and matching funds in the project is otherwise not in conflict with days. budget that reflects the eligible project applicable laws. (d) Executive Order 12898. When a tasks associated with the work plan. (a) Applicant eligibility. No exception project is proposed and financial Value-added agricultural product. to applicant eligibility can be made. assistance is requested, the Agency will Any agricultural commodity or product (b) Project eligibility. No exception to conduct a Civil Rights Impact Analysis that meets the requirements specified in project eligibility can be made. (CRIA) with regards to environmental paragraphs (1) and (2) of this definition. justice. The CRIA must be conducted (1) The agricultural commodity or § 4284.905 Nondiscrimination and and the analysis documented utilizing compliance with other Federal laws. product must meet one of the following Form RD 2006–38, ‘‘Civil Right Impact five value-added methodologies: (a) Other Federal laws. Applicants Analysis Certification.’’ This (i) Has undergone a change in must comply with other applicable certification must be done prior to grant physical state; Federal laws, including the Equal approval, obligation of funds, or other (ii) Was produced in a manner that Employment Opportunities Act of 1972, commitments of Agency resources, enhances the value of the agricultural the Americans with Disabilities Act, the including issuance of a Letter of commodity or product; Equal Credit Opportunity Act, Title VI Conditions, whichever occurs first. (iii) Is physically segregated in a of the Civil Rights Act of 1964, Section manner that results in the enhancement 504 of the Rehabilitation Act of 1973, § 4284.906 State laws, local laws, of the value of the agricultural the Age Discrimination Act of 1975, and regulatory commission regulations. commodity or product; 7 CFR part 1901–E. If there are conflicts between this (iv) Is a source of farm- or ranch-based subpart and State or local laws or renewable energy, including E–85 fuel; (b) Nondiscrimination. The U.S. Department of Agriculture (USDA) regulatory commission regulations, the or provisions of this subpart will control. (v) Is aggregated and marketed as a prohibits discrimination in all its locally-produced agricultural food programs and activities on the basis of § 4284.907 Environmental requirements. product. race, color, national origin, age, All grants awarded under this subpart (2) As a result of the change in disability, and where applicable, sex, are subject to the environmental physical state or the manner in which marital status, familial status, parental requirements in subpart G of 7 CFR part the agricultural commodity or product status, religion, sexual orientation, 1940 or successor regulations. was produced, marketed, or segregated: genetic information, political beliefs, Applications for planning grants are (i) The customer base for the reprisal, or because all or part of an generally excluded from the agricultural commodity or product is individual’s income is derived from any environmental review process by expanded and public assistance program. (Not all § 1940.333 of this title. Applicants for (ii) A greater portion of the revenue prohibited bases apply to all programs.) working capital grants must submit derived from the marketing, processing, Persons with disabilities who require Form 1940–22, Categorical Exclusion or physical segregation of the alternative means for communication of Checklist. agricultural commodity or product is program information (Braille, large available to the producer of the print, audiotape, etc.) should contact § 4284.908 Incorporation by reference. commodity or product. USDA’s TARGET Center at (202) 720– Venture. The business, including the 2600 (voice and TDD). Any applicant (a) Departmental regulations. Unless project and other related activities. that believes it has been discriminated specifically stated, this subpart Working capital grant. A grant to against as a result of applying for funds incorporates by reference the provide funds to operate a value-added under this program should contact: regulations of the Department of project, specifically to pay the eligible USDA, Director, Office of Adjudication Agriculture’s Office of Chief Financial project expenses related to the and Compliance, 1400 Independence Officer (or successor office) as codified processing and/or marketing of the Avenue, SW., Washington, DC 20250– in 7 CFR parts 3000 through 3099, value-added product that are eligible 9410, or call (800) 795–3272 (voice) or including, but not necessarily limited uses of grant funds. (202) 720–6382 (TDD) for information to, 7 CFR parts 3015 through 3019, 7 and instructions regarding the filing of CFR part 3021, and 7 CFR part 3052, § 4284.903 Review or appeal rights. a Civil Rights complaint. USDA is an and successor regulations to these parts. A person may seek a review of an equal opportunity provider, employer, (b) Cost principles. This subpart Agency decision under this subpart and lender. incorporates by reference the cost

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principles found in 2 CFR part 230 and (c) Notification methods. The Agency residing in the U.S. This paragraph is in 48 CFR part 31.2. will issue the information specified in not applicable if the entity is owned (c) Definitions. If a term is defined paragraphs (a) and (b) in one or more solely by members of one immediate differently in the Departmental Federal Register notices. In addition, all family. In such instance, if at least one Regulations, 2 CFR 230, or 48 CRF 31.2 information will be available at any of the immediate family members is a and in this subpart, such term shall Rural Development office. citizen or national, as defined in have the meaning as found in this (d) Timing. The Agency will make the paragraph (c)(1) of this section, then the subpart. information specified in paragraphs (a) entity is eligible. and (b) of this section available as (d) Legal authority and responsibility. § 4284.909 Forms, regulations, and specified in paragraphs (d)(1) through instructions. Each applicant must demonstrate that (3) of this section. they have, or can obtain, the legal Copies of all forms, regulations, (1) The Agency will make the authority necessary to carry out the instructions, and other materials related information specified in paragraph (a) of purpose of the grant. to the program referenced in this this section available each fiscal year. (e) Multiple grant eligibility. An subpart may be obtained through the (2) The Agency will make the applicant may submit only one Agency. information specified in paragraphs application in response to this notice, §§ 4284.910–4284.914 [Reserved] (b)(1) of this section available at least 60 and must direct that it compete in either days prior to the application deadline, the general funds competition or in one Section B—Funding and Programmatic as applicable. of the reserved funds competitions. Change Notifications (3) The Agency will make the Separate entities with identical or information specified in paragraphs § 4284.915 Notifications. greater than 75 percent common (b)(2) through (4) of this section ownership may only submit one In implementing this subpart, the available on an as needed basis. Agency will issue notifications application for one entity per year. addressing funding and programmatic §§ 4284.916–4284.919 [Reserved] Applicants who have already received a planning grant for the proposed project changes, as specified in paragraphs (a) Section C—Eligibility and (b) of this section, respectively. The cannot receive another planning grant methods that the Agency will use in § 4284.920 Applicant eligibility. for the same project. Applicants who have already received a working capital making these notifications is specified To be eligible for a grant under this grant for the proposed project cannot in paragraph (c) of this section, and the subpart, an applicant must demonstrate receive any additional grants for that timing of these notifications is specified that they meet the requirements project. in paragraph (d) of this section. specified in paragraphs (a) through (d) (a) Funding and simplified of this section, as applicable, and are (f) Active VAPG grant. If an applicant applications. The Agency will issue subject to the limitations specified in has an active value-added grant at the notifications concerning: paragraphs (e) and (f) of this section. time of a subsequent application, the (1) The funding level and the (a) Type of applicant. The applicant current grant must be closed out within minimum and maximum grant amount must demonstrate that they meet all 90 days of the annual NOFA. and any additional funding information definition requirements for one of the § 4284.921 Ineligible applicants. as determined by the Agency; and following applicant types: (2) The contents of simplified (1) An independent producer; (a) Consistent with the Departmental applications, as provided for in (2) An agricultural producer group; regulations, an applicant is ineligible if § 4284.932. (3) A farmer or rancher cooperative; or the applicant is debarred or suspended (b) Programmatic changes. The (4) A majority-controlled producer- or is otherwise excluded from or Agency will issue notifications of the based business venture. ineligible for participation in Federal programmatic changes specified in (b) Emerging market. An applicant assistance programs under Executive paragraphs (b)(1) through (4) of this that is an agricultural producer group, a Order 12549, ‘‘Debarment and section. farmer or rancher cooperative, or a Suspension.’’ (1) The set of Administrator priority majority-controlled producer-based (b) An applicant will be considered categories or their point allocation, if business venture must demonstrate that ineligible for a grant due to an the provisions specified in they are entering into an emerging outstanding judgment obtained by the § 4284.942(b)(6) are not to be used for market as a result of the proposed U.S. in a Federal Court (other than U.S. awarding Administrator points. project. Tax Court), is delinquent on the Administrator priorities that the (c) Citizenship. payment of Federal income taxes, or is program may consider are: (1) Individual applicants must delinquent on Federal debt. demonstrate that they: (i) Unserved or underserved areas. § 4284.922 Project eligibility. (ii) Geographic diversity. (i) Are citizens or nationals of the (iii) Emergency conditions. United States (U.S.), the Republic of To be eligible for a VAPG grant, the (iv) To more effectively accomplish Palau, the Federated States of application must demonstrate that the the mission area’s plans, goals, and Micronesia, the Republic of the project meets the requirements specified objectives. Marshall Islands, or American Samoa, in paragraphs (a) through (d) of this (v) Public health and safety. or section, as applicable. (2) Additional reports that are (ii) Reside in the U.S. after legal (a) Product eligibility. Each product generally applicable across projects admittance for permanent residence. that is the subject of the proposed within a program associated with the (2) Entities other than individuals project must meet the definition of a monitoring of and reporting on project must demonstrate that they are at least value-added agricultural product, performance. 51 percent owned by individuals who including a demonstration that: (3) Any information specified in are either citizens as identified under (1) The value-added product results § 4284.933. paragraph (c)(1)(i) of this section or from one of the value-added (4) Preliminary review information. legally admitted permanent residents methodologies identified in paragraphs

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(1)(i) through (v) of the definition of differentiation are not eligible under obtained at least one agreement from an value-added agricultural product; this subpart. However, applications that eligible agricultural producer group/ (2) As a result of the project, the propose branding, packaging, or other cooperative/majority-controlled customer base for the agricultural product differentiation activities that are producer-based business venture commodity or product is expanded; and no more than 25 percent of total project engaged in the value-chain on a (3) As a result of the project, a greater costs of a value-added project for marketing strategy; portion of the revenue derived from the products otherwise eligible in one of the (v) Demonstrate that the applicant marketing or processing of the value- five value-added methodologies organization currently owns and added product is available to the specified in paragraphs (1)(i) through (v) produces more than 50 percent of the agricultural producer of the commodity of the definition of value-added raw agricultural commodity that will be or product. agricultural product are eligible. used for the value-added product that is (b) Purpose eligibility. (d) Reserved funds eligibility. In the subject of the proposal; and (1) The grant funds requested must addition to the requirements specified (vi) Demonstrate that the project will not exceed the amount specified in paragraphs (a) through (c) of this result in an increase in customer base annually for planning and working section, the requirements specified in and an increase in revenue returns to capital grant requests. paragraphs (d)(1) and (2) of this section the applicant producers supplying the (2) The matching funds required for must be met, as applicable. All eligible, majority of the raw agricultural the project budget must be available but unfunded reserved funds commodity for the project. during the project period and verified in applications will be eligible to compete the application. for general funds in that same fiscal § 4284.923 Eligible uses of grant and (3) The proposed project must be year, as funding levels permit. matching funds. limited to eligible planning or working (1) If the applicant is applying for Grant and cost-share matching funds capital activities as defined at beginning farmer or rancher, or socially- have the same use restrictions and must § 4284.923, as applicable, with eligible disadvantaged farmer or rancher be used to fund only the costs for tasks directly related to the processing reserved funds, the applicant must approved purposes as defined in and/or marketing of the subject value- provide documentation demonstrating paragraphs (a) and (b) of this section. added product. that the applicant meets one of these (4) The project work plan and budget definitions. (a) Planning funds may be used to pay must: (2) If the applicant is applying for for a qualified consultant to conduct (i) Present a detailed breakdown of all mid-tier value chain reserved funds, the and develop a feasibility study, business estimated costs associated with the application must: plan, and/or marketing plan associated eligible planning or working capital (i) Demonstrate that the project with the processing and/or marketing of activities related to the processing proposes development of a local or a value-added agricultural product. and/or marketing of the value-added regional supply network of an Planning funds may not be used for product and allocate those costs among interconnected group of entities through applicant participation in feasibility the listed tasks; which agricultural products move from studies. In-kind contribution of (ii) Identify the sources and uses of production through consumption in a matching funds to cover applicant grant and matching funds for all tasks local or regional area of the United participation in development of specified in the budget; and States, including a description of the business plans and/or marketing plans (iii) Present a project budget period of network, its component members, and is allowed to the extent that the value not longer than 36 months, scaled to its purpose; of such work can be appropriately complexity, and concluding not later (ii) Describe at least two alliances, valued. Funds may not be used to than 3 years after the proposed start linkages or partnerships within the evaluate the agricultural production of date. value chain that link independent the commodity itself, other than to (5) Working capital applications must producers with businesses and determine the project’s input costs include a feasibility study and business cooperatives that market value-added related to the feasibility of processing plan completed specifically for the agricultural products in a manner that and marketing the value-added product. proposed value-added project by a benefits small or medium-sized farms (b) Working capital funds may be qualified consultant. The Agency must and ranches that are structured as a used to pay the project’s operational concur in the acceptability or adequacy family farm, including the names of the costs directly related to the processing of the feasibility study and business parties and the nature of their and/or marketing of the value-added plan for eligibility purposes. collaboration; product. Examples of eligible working (6) If the applicant is an agricultural (iii) Demonstrate how the project, due capital expenses include designing or producer group, a farmer or rancher to the manner in which the value-added purchasing a financial accounting cooperative, or a majority-controlled product is marketed, will increase the system for the project, paying salaries of producer-based business venture, the profitability and competitiveness of at employees without ownership interest applicant must demonstrate that it is least two eligible small or medium-sized to process and/or market and deliver the entering an emerging market. farms or ranches that are structured as value-added product to consumers, (7) All applicants for working capital a family farm; paying for inventory supply costs must either be currently marketing each (iv) Document that the eligible necessary to produce the value-added value-added agricultural product that is agricultural producer group/ product from the agricultural the subject of the grant application, or cooperative/majority-controlled commodity or product, and paying for a be ready to implement the working producer-based business venture marketing campaign for the value-added capital activities in accord with the applicant organization has obtained at product. budget and work plan timeline least one agreement with another proposed. member of the supply network that is § 4284.924 Ineligible uses of grant and (c) Branding activities. Applications engaged in the value chain on a matching funds. that propose only branding, packaging, marketing strategy; or that the eligible Grant funds awarded under this or other similar means of product independent producer applicant has subpart may not be used to:

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(a) Plan, repair, rehabilitate, acquire, (b) The maximum total grant amount (1) Form SF–424, ‘‘Application for or construct a building or facility provided to a grantee in any one year Federal Assistance.’’ (including a processing facility); shall not exceed the amount announced (2) Form SF–424A, ‘‘Budget (b) Purchase, lease purchase, or install in an annual notice issued pursuant to Information-Non-Construction fixed equipment, including processing § 4284.915, but in no event may the total Programs.’’ equipment; amount of grant funds provided to a (3) Form SF–424B, ‘‘Assurances— (c) Purchase or repair vehicles, grant recipient exceed $500,000. Non-Construction Programs.’’ including boats; (c) A grant under this subsection shall (4) Form RD 400–4, ‘‘Assurance (d) Pay for the preparation of the grant have a term that does not exceed 3 Agreement.’’ application; years. Grant project periods should be (5) Form RD 400–1, ‘‘Equal (e) Pay expenses not directly related scaled to the complexity of the Opportunity Agreement.’’ to the funded project; objectives for the project. The Agency (6) All applicants are required to have (f) Fund research and development; may extend the term of the grant period, a DUNS number (including individuals (g) Fund political or lobbying not to exceed the 3-year maximum. and sole proprietorships). activities; (d) The aggregate amount of awards to (b) Application content. The (h) Fund any activities prohibited by majority controlled producer-based following content items must be 7 CFR parts 3015 and 3019, 2 CFR part businesses may not exceed 10 percent of completed when applying for a grant 230, and 48 CFR part 31.2. the total funds obligated under this under this subpart: (i) Fund architectural or engineering subpart during any fiscal year. (1) Eligibility discussion. Using the design work; (e) Not more than 5 percent of funds format prescribed by the application (j) Fund expenses related to the appropriated each year may be used to package, the applicant must describe in production of any agricultural fund the Agricultural Marketing detail how the: commodity or product, including seed, Resource Center, to support electronic (i) Applicant (§§ 4284.920 and 921) rootstock, labor for harvesting the crop, capabilities to provide information and project eligibility (§ 4284.922) and delivery of the commodity to a regarding research, business, legal, requirements are met; processing facility; financial, or logistical assistance to (ii) Eligible use of grant and matching (k) Conduct activities on behalf of independent producers and processors. funds (§§ 4284.923 and 924) anyone other than a specifically (f) Each fiscal year, the following requirements are met; and identified independent producer or amounts of reserved funds will be made (iii) Funding limitation (§ 4284.925) group of independent producers. The available: requirements are met. Agency considers conducting industry- (1) 10 percent to fund projects that (2) Evaluation criteria. Using the level feasibility studies or business benefit beginning farmers or ranchers, or format prescribed by the application plans, that are also known as feasibility socially-disadvantaged farmers or package, the applicant must address study templates or guides or business ranchers; and each evaluation criterion identified plan templates or guides, to be ineligible (2) 10 percent to fund projects that below. because the assistance is not provided to propose development of mid-tier value (i) Performance evaluation criteria. a specific group of Independent chains. Applicants for planning grants must Producers; (3) Funds not obligated by June 30 of suggest at least one criterion by which (l) Duplicate current services or each fiscal year shall be available to the their performance under a grant could replace or substitute support previously general fund for the program. provided; be evaluated. Applicants for working (m) Pay any costs of the project §§ 4284.926–4284.929 [Reserved] capital grants must identify the projected increase in customer base, incurred prior to the date of grant Section D—Applying for a Grant approval, including legal or other revenue accruing to independent expenses needed to incorporate or § 4284.930 Preliminary review. producers, and number of jobs organize a business; The Agency encourages applicants to attributed to the project. Working (n) Pay for assistance to any business contact their State Office well in capital projects with significant that does not meet the requirements of advance of the application submission renewable energy components must also § 4284.920(c); deadline, to ask questions and to identify the projected increase in (o) Pay any judgment or debt owed to discuss project eligibility potential. At capacity per unit of measure annually the United States; its option, the Agency may establish a attributed to the project. Performance (p) Pay for any goods or services preliminary review deadline so that it criteria will be incorporated into the provided by a person or entity that has may informally assess the eligibility of applicant’s semi-annual and final a conflict of interest or an appearance of the application and its completeness. reporting requirements if selected for a conflict of interest. Also, note that in- The result of the preliminary review is award. kind matching funds may not be not binding on the Agency. To (ii) Proposal evaluation criteria. provided by a person or entity that has implement this section, the Agency will Applicants must address each proposal a conflict of interest or an appearance of issue a notification addressing this issue evaluation criterion identified in a conflict of interest; in accordance with § 4284.915. § 4284.942 in narrative form, in the (q) Purchase land; or application package. (r) Pay for costs associated with illegal § 4284.931 Application package. (3) Certification of matching funds. activities. All applicants are required to submit Using the format prescribed by the an application package that is application package, applicants must § 4284.925 Funding limitations. comprised of the elements in this certify that: (a) Grant funds may be used to pay up section. (i) Cost-share matching funds will be to 50 percent of the total eligible project (a) Application forms. The following spent in advance of grant funding, such costs, subject to the limitations application forms (or their successor that for every dollar of grant funds established for maximum total grant forms) must be completed when disbursed, not less than an equal amount. applying for a grant under this subpart. amount of matching funds will have

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been expended prior to submitting the simplified application, the contents of program requirements, it will include in request for reimbursement; and which will be announced in an annual the notification the reason(s) for its (ii) If matching funds are proposed in notice issued pursuant to § 4284.915. determination(s). an amount exceeding the grant amount, § 4284.933 Filing instructions. (c) Resubmittal by applicants. those matching funds must be spent at Applicants may submit revised a proportional rate equal to the match- Unless otherwise specified in a applications to the Agency in response to-grant ratio identified in the proposed notification issued under § 4284.915, to the notification received under budget. the requirements specified in paragraph (b) of this section. If a revised (4) Verification of cost-share matching paragraphs (a) through (e) of this section grant application is received on or funds. Using the format prescribed by apply to all applications. before the application deadline, it will (a) When to submit. Complete the application package, the applicant be processed by the Agency. If such applications must be received by the must provide authentic documentation revised applications are not received by Agency on or before March 15 of each from the source to confirm the eligibility the specified application deadline, the year to be considered for funding for and availability of both cash and in-kind Agency will not process the application that fiscal year. Applications received contributions that meet the following and will inform the applicant that their by the Agency after March 15 will not requirements: application was not reviewed due to be considered. (i) Matching funds are subject to the tardiness. same use restrictions as grant funds, and (b) Incomplete applications. (d) Subsequent ineligibility must be spent on eligible project Incomplete applications will be determinations. If at any time an expenses during the grant project rejected. Applicants will be informed of application is determined to be period. the elements that made the application ineligible, the Agency will notify the (ii) Matching funds must be from incomplete. If a resubmitted application applicant in writing of its eligible sources without a conflict of is received by the applicable application determination. interest and without the appearance of deadline, the Agency will reconsider the a conflict of interest. application. § 4284.941 Application withdrawal. (iii) Matching funds must be at least (c) Where to submit. All applications During the period between the equal to the amount of grant funds must be submitted to the State Office of submission of an application and the requested, and combined grant and Rural Development in the State where execution of award documents, the matching funds must equal 100 percent the project primarily takes place, or on- applicant must notify the Agency in of the total eligible project costs. line through grants.gov. (iv) Unless provided by other (d) Format. Applications may be writing if the project is no longer viable authorizing legislation, other Federal submitted as hard copy, or or the applicant no longer is requesting grant funds cannot be used as matching electronically via grants.gov. If financial assistance for the project. funds. submitted as hard copy, only one When the applicant so notifies the (v) Matching funds must be provided original copy should be submitted. Agency, the selection will be rescinded in the form of confirmed applicant cash, (e) Other forms and instructions. or the application withdrawn. loan, or line of credit; or confirmed Upon request, the Agency will make § 4284.942 Proposal evaluation criteria third-party cash or eligible third-party available to the public the necessary and scoring applications. in-kind contribution. forms and instructions for filing (a) General. The Agency will only (vi) Examples of ineligible matching applications. These forms and score applications for which it has funds include funds used for an instructions may be obtained from any determined that the applicant and ineligible purpose, contributions State Office of Rural Development, or project are eligible, the application is donated outside the proposed grant the Agency’s Value-Added Producer complete and sufficiently responsive to period, third-party in-kind contributions Grant program Web site—http:// program requirements, and the project is that are over-valued, expected program www.rurdev.usda.gov/rbs/coops/ likely feasible. Any applicant whose income at time of application, or vadg.htm. application will not be reviewed instances where the potential for a §§ 4284.934–4284.939 [Reserved] because the Agency has determined it conflict of interest exists, including fails to meet the preceding criteria will applicant in-kind contributions in Section E—Processing and Scoring be notified of appeal rights pursuant to § 4284.923(a). Applications (5) Business plan. As part of the § 4284.903. Each such application the application package, applicants for § 4284.940 Processing applications. Agency receives on or before the working capital grants must provide a (a) Initial review. Upon receipt of an application deadline in a fiscal year will copy of the business plan that was application on or before the application be scored in the fiscal year in which it completed for the proposed project. The submission deadline for each fiscal year, was received. Each application will be Agency must concur in the acceptability the Agency will conduct a review to scored based on the information or adequacy of the business plan. determine if the applicant and project provided and/or referenced in the (6) Feasibility study. As part of the are eligible, and if the application is scoring section of the application at the application package, applicants for complete and sufficiently responsive to time the applicant submits the working capital grants must provide a program requirements. application to the Agency. copy of the third-party feasibility study (b) Notifications. After the review in (b) Scoring applications. The that was completed for the proposed paragraph (a) of this section has been maximum number of points that will be project. The Agency must concur in the conducted, the Agency will notify the awarded to an application is 100, plus acceptability or adequacy of the applicant in writing of the Agency’s an additional 10 points if the project is feasibility study. findings. If the Agency has determined located in a rural area. The criteria that either the applicant or project is specified in paragraphs (b)(1) through § 4284.932 Simplified application. ineligible or that the application is not (7) of this section will be used to score Applicants requesting less than complete to allow evaluation of the each application. The Agency will $50,000 will be allowed to submit a application or sufficiently responsive to specify how points are awarded for each

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criterion in a Notice published each return the Agency’s ‘‘Letter of Intent to (2) Additional reports shall be fiscal year. Meet Conditions.’’ If the applicant submitted as specified in the grant (1) Nature of the proposed project believes that certain conditions cannot agreement or Letter of Conditions, or as (maximum 25 points). be met, the applicant may propose otherwise provided in a notification (2) Personnel qualifications alternate conditions to the Agency. The issued under § 4284.915. (maximum 20 points). Agency must concur with any proposed (3) Copies of supporting (3) Commitments and support changes to the Letter of Conditions by (maximum 10 points). the applicant before the application will documentation and/or project (4) Work plan/budget (maximum 20 be further processed. If the Agency deliverables for completed tasks must be points). agrees to any proposed changes, the provided to the Agency in a timely (5) Type of applicant (maximum 15 Agency will issue a revised or amended manner in accord with the development points). Letter of Conditions that defines the or completion of materials and in (6) Administrator priority categories final conditions under which the grant conjunction with the budget and project and points (maximum 10 points). will be made. timeline. Examples include, but are not (7) Rural or rural area location (10 (b) Grant agreement and conditions. limited to, a feasibility study, marketing points may be awarded). Each grantee will be required to meet all plan, business plan, success story, or §§ 4284.943–4284.949 [Reserved] terms and conditions of the award best practice. within 90 days of receiving a Letter of (4) The Agency may request any Section F—Grant Awards and Conditions unless otherwise specified additional project and/or performance Agreement by the Agency at the time of award. data for the project for which grant Each grantee will also be required to § 4284.950 Award process. funds have been received. sign a grant agreement that outlines the (a) Selection of applications for approved use of funds and actions § 4284.961 Grant servicing. funding and for potential funding. The under the award, as well as the Agency will select and rank restrictions and applicable laws and All grants awarded under this subpart applications for funding based on the regulations that pertain to the award. shall be serviced in accordance with 7 score an application has received in (c) Grant disbursements. Grant CFR part 1951, subparts E and O, and response to the proposal evaluation disbursement will be made in the Departmental Regulations. criteria, compared to the scores of other accordance with the Letter of § 4284.962 Transfer of obligations. value-added applications received in Conditions, and/or the grant agreement, the same fiscal year. Higher scoring as applicable. Adequate supporting An obligation of funds established for applications will receive first documentation is required for all an applicant may be transferred to a consideration for funding. The Agency disbursements. different (substituted) applicant will notify applicants, in writing, provided: whether or not they have been selected §§ 4284.952–4284.959 [Reserved] (a) The substituted applicant: for funding. For those applicants not Section G—Post Award Activities and selected for funding, the Agency will Requirements (1) Is eligible; provide a brief explanation for why they (2) Has a close and genuine § 4284.960 Monitoring and reporting were not selected. relationship with the original applicant; (b) Ranked applications not funded. A program performance. and ranked application that is not funded in The requirements specified in this the fiscal year in which it was submitted section shall apply to grants made under (3) Has the authority to receive the will not be carried forward into the next this subpart. assistance approved for the original fiscal year. The Agency will notify the (a) Grantees are responsible to expend applicant; and applicant in writing. funds only for eligible purposes and (b) The need, purpose(s), and scope of (c) Intergovernmental review. If State will be monitored by Agency staff for the project for which the Agency funds or local governments raise objections to compliance. Grantees must maintain a will be used remain substantially financial management system, and a proposed project under the unchanged. intergovernmental review process that property and procurement standards in are not resolved within 90 days of the accordance with Departmental § 4284.963 Grant close out and related Agency’s award announcement date, the Regulations. activities. Agency will rescind the award and will (b) Grantees must submit prescribed In addition to the requirements provide the applicant with a written narrative and financial performance notice to that effect. The Agency, in its reports that include a comparison of specified in the Departmental sole discretion, may extend the 90-day accomplishments with the objectives regulations, failure to submit period if it appears resolution is stated in the application. The Agency satisfactory reports on time under the imminent. will prescribe both the narrative and provisions of § 4284.970(b) may result financial report formats in the grant in the suspension or termination of a § 4284.951 Grant agreement. agreement. grant. (a) Letter of conditions. When a grant (1) Semi-annual performance reports is obligated subject to conditions shall be submitted within 30 days §§ 4284.964–4284.999 [Reserved] established by the Agency, the Agency following March 31 and September 30 Dated: May 21, 2010. will notify, in writing, each applicant each fiscal year. A final performance whose application has been selected for report shall be submitted to the Agency Pandor H. Hadjy, funding using a Letter of Conditions, within 90 days of project completion. Acting Administrator, Rural Business- which defines the conditions under Failure to submit a performance report Cooperative Service. which the grant will be made. If the within the specified timeframes may [FR Doc. 2010–12731 Filed 5–27–10; 8:45 am] applicant agrees with the conditions, result in the Agency withholding grant BILLING CODE 3410–XY–P the applicant must complete, sign, and funds.

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DEPARTMENT OF ENERGY 3. Postal Mail: Cyrus Nasseri, U.S. SUPPLEMENTARY INFORMATION: Department of Energy, Federal Energy I. Introduction 10 CFR Parts 433 and 435 Management Program, Mailstop EE–2L, II. Discussion of Today’s Action Energy Efficiency and Sustainable III. Reference Resources [Docket No. EE–RM/STD–02–112] Design Standards for New Federal IV. Regulatory Analysis Commercial and Multi-Family High- V. Approval of the Office of the Secretary RIN 1904–AC13 Rise Residential Buildings and Energy I. Introduction Energy Efficiency and Sustainable Efficiency and Sustainable Design Standards for New Federal Low-Rise Section 305 of the Energy Design Standards for New Federal Conservation and Production Act Buildings Residential Buildings, EE–RM/STD–02– 112 and/or RIN 1904–AC13, 1000 (ECPA) established energy conservation AGENCY: Office of Energy Efficiency and Independence Avenue, SW., requirements for Federal buildings. (42 Renewable Energy, Department of Washington, DC 20585–0121. U.S.C. 6834) Section 109 of the Energy Energy. Telephone: (202) 586–9138. Please Policy Act of 2005 amended section 305 of ECPA by adding section 305(a)(3)(A), ACTION: Notice of proposed rulemaking. submit one signed paper original. 4. Hand Delivery/Courier: Cyrus which requires DOE, through regulation, SUMMARY: The U.S. Department of Nasseri, U.S. Department of Energy, to update the energy efficiency Energy (DOE) is publishing this notice Federal Energy Management Program, requirements for new Federal buildings. (42 U.S.C. 6834(a)(3)(A)) DOE is also of proposed rulemaking (NOPR) to Room 5E–080, 1000 Independence required to establish a requirement that, implement provisions of the Energy Avenue, SW., Washington, DC 20585– if life-cycle cost-effective, sustainable Conservation and Production Act, as 0121. amended by the Energy Policy Act of Instructions: All submissions must design principles must be applied to the siting, design, and construction of all 2005 and the Energy Independence and include the agency name and docket new and replacement buildings. (42 Security Act of 2007, that require DOE number or Regulatory Information U.S.C. 6834(a)(3)(A)(i)(II)) Section 433 to establish revised performance Number (RIN) for this rulemaking. standards for the construction of new Docket: For access to the docket to of the Energy Independence and Security Act of 2007 (EISA; Pub. L. 110– Federal buildings and major renovations read background documents or 140) further amended section 305 of of Federal buildings. This NOPR comments received by DOE, go to the ECPA to apply sustainable design specifically addresses the use of U.S. Department of Energy, Forrestal principles to certain new Federal sustainable design principles for siting, Building, Room 5E–080 (Resource Room buildings and major renovations of design, and construction, and the use of of the Federal Energy Management Federal buildings without specifying water conservation technologies to Program), 1000 Independence Avenue, consideration of life-cycle cost- achieve energy efficiency. This SW., Washington, DC, (202) 586–9127, effectiveness. (42 U.S.C. proposed rulemaking also provides between 9 a.m. and 4 p.m., Monday 6834(a)(3)(D)(i)(III)) In addition, DOE is criteria for identifying a certification through Friday, except Federal holidays. directed to establish regulations that system and level for green buildings that Please call Cyrus Nasseri at the above require water conservation technologies encourages a comprehensive and telephone number for additional and solar hot water heaters be applied environmentally-sound approach to information regarding visiting the to the extent life-cycle cost-effective. (42 certification of green buildings. Resource Room. U.S.C. 6834 (a)(3)(A)(ii) and DATES: Public comments on this If you submit information that you (a)(3)(D)(vii)) Today’s proposed rule proposed rule will be accepted until believe to be exempt by law from public addresses sustainable design principles, July 27, 2010. The Department will hold disclosure, you should submit one water conservation technologies, and a public meeting on Wednesday, July complete copy, as well as one copy from solar water heating. Additionally, as 28, 2010, from 9 a.m. to 4 p.m., in which the information claimed to be amended by EISA, ECPA directs DOE to Washington, DC. DOE must receive exempt by law from public disclosure identify a certification system and level requests to speak at the public meeting has been deleted. DOE is responsible for for rating green buildings that DOE before 4 p.m., Wednesday, July 14, the final determination with regard to determines to be the most likely to 2010. DOE must receive a signed disclosure or nondisclosure of the encourage a comprehensive and original and an electronic copy of information and for treating it environmentally sound approach to statements to be given at the public accordingly under the DOE Freedom of such certification and rating. (42 U.S.C. meeting before 4 p.m., Wednesday, July Information regulations at Title 10 of the 6834(a)(3)(D)(i)(III)) Finally, section 433 21, 2010. Code of Federal Register (10 CFR) of EISA revised the definition of DOE will accept comments, data, and 1004.11. ‘‘Federal building’’ applicable to the information regarding the NOPR before FOR FURTHER INFORMATION CONTACT: regulations for Federal buildings. (42 and after the public meeting, but no Cyrus Nasseri, U.S. Department of U.S.C. 6832(6)) This definitional change later than July 27, 2010. Energy, Office of Energy Efficiency and is addressed in today’s notice. ADDRESSES: The public meeting will be Renewable Energy, Federal Energy DOE has already addressed energy held at the U.S. Department of Energy, Management Program, EE–2L, 1000 efficiency in new Federal buildings in a Forrestal Building, Room 8E–089. You Independence Avenue, SW., final rule published on December 21, may submit comments using any of the Washington, DC 20585–0121, (202) 586– 2007 (72 FR 72565). Specifically, new following methods: 9138, e-mail: [email protected], Federal buildings must be designed to 1. Federal eRulemaking Portal: or Chris Calamita, U.S. Department of achieve energy consumption levels that http://www.regulations.gov. Follow the Energy, Office of the General Counsel, are at least 30 percent below the instructions for submitting comments. Forrestal Building, GC–72, 1000 updated minimum standards referenced 2. E-mail: [email protected]. Independence Avenue, SW, in section 305(a)(2), if life-cycle cost- Include EE–RM/STD–02–112 and/or Washington, DC 20585, (202) 586–1777, effective. (42 U.S.C. 6834(a)(3)(A)(i)(I); RIN 1904–AC13 in the subject line of e-mail: see also 10 CFR 433.4 and 435.4) DOE the message. [email protected]. placed the revised Federal commercial

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and multi-family high-rise residential energy consumption requirements of undergoing major renovation, without building standards in a new 10 CFR Part new Federal buildings, DOE relied on specifying consideration of life-cycle 433, entitled ‘‘Energy Efficiency the statutory definition of ‘‘Federal cost. (42 U.S.C. 6834(a)(3)(D)(i)(III)) A Standards for the Design and building,’’ i.e., ‘‘any building to be building is in the subset of new Federal Construction of New Federal constructed by, or for the use of, any buildings and Federal buildings Commercial and Multi-Family High- Federal agency which is not legally undergoing major renovations if the Rise Residential Buildings.’’ The subject to State or local building codes building is: updated standards for Federal low-rise or similar requirements.’’ (72 FR 72565) • A public building as defined in 40 residential buildings are contained in 10 Section 433 of EISA amended the U.S.C. 3301,2 for which the CFR Part 435, Subpart A. definition of ‘‘Federal building’’ Administrator of General Services is Section 433 of EISA added section applicable to section 305 of EPCA, required to transmit a prospectus to 305(a)(3)(D) to require fossil fuel energy including the energy consumption, Congress under 40 U.S.C. 3307, or savings for certain building types. DOE sustainability, and water conservation • A building and major renovation for will address the fossil fuel requirements requirements. The statute now defines which the construction project cost is at of section 433 of EISA in a separate ‘‘Federal building’’ to mean any building least $2,500,000 (in 2007 dollars, rulemaking. The fossil fuel requirement to be constructed by, or for the use of, adjusted for inflation using U.S. rulemaking may amend the same any Federal agency. DOE is proposing Department of Labor Producer Price regulatory sections as those proposed to that the term include buildings built for Indexes). be amended in today’s notice of the purpose of being leased by a Federal If a new or replacement Federal proposed rulemaking. The proposed agency, and privatized military housing building does not fit into one of these regulatory text in today’s document awarded subsequent to promulgation of two categories, sustainable design would amend the current regulatory this rule.1 (42 U.S.C. 6832(6)) DOE is principles would apply only to the text, without consideration of proposing to revise the definition of extent that they are life-cycle cost- amendments that may result from the ‘‘new Federal building’’ consistent with effective. fossil fuel requirement rulemaking. If the amendment in EISA. Additionally, DOE is proposing that sustainable and when these rulemakings are DOE is considering limiting the design principles be applied to the new finalized, DOE will coordinate the final inclusion of leased buildings in the Federal buildings and major renovations regulatory text between the two definition of ‘‘Federal building’’ to new identified by the statute. The rulemakings. leased buildings in which a Federal sustainable design principles set forth in DOE notes that it is required to review agency has significant control over the the requirements of this proposed rule and revise energy efficiency design of the building (e.g., ‘‘lease- would be required to be incorporated requirements for Federal building as the constructs’’). DOE welcomes comments into the new Federal building or major voluntary industry codes are updated. on these considerations. renovation design ‘‘to the extent (42 U.S.C. 6834(a)(3)(b)) DOE intends to ’’ 2. Consideration of Life-Cycle Costs practicable, except in the case of indoor address this review of the current environmental quality requirements, versions of ASHRAE Standard 90.1 and In general, DOE is proposing that the which would be mandatory. DOE the International Code Council sustainable design requirements be International Energy Conservation Code applied to all new and replacement 2 Under 40 U.S.C. 3301(5) ‘‘public building’’ is a (IECC) as the minimum energy Federal buildings to the extent those building, whether for single or multitenant efficiency performance standards in 10 requirements are life-cycle cost occupancy, and its grounds, approaches, and appurtenances, which is generally suitable for use CFR Parts 433 and 435 in a separate effective. For a subset of new Federal as office or storage space or both by one or more rulemaking. buildings and Federal buildings Federal agencies or mixed-ownership Government undergoing major renovation, DOE is corporations. II. Discussion of Today’s Action proposing that the sustainable design ‘‘Public building’’ includes Federal office A. Scope of Proposed Rulemaking principles be applied to the ‘‘extent buildings, post offices, customhouses, courthouses, appraisers stores, border inspection facilities, practicable.’’ As explained further in 1. Definition of ‘‘Federal Building’’ warehouses, record centers, relocation facilities, this section, ‘‘extent practicable’’ telecommuting centers, similar Federal facilities, Section 305 of ECPA requires, in part, considerations would include specified and any other buildings or construction projects the that DOE establish, by rule, standards cost considerations separate from a life- inclusion of which the President considers to be for new Federal buildings that require, justified in the public interest. cycle cost threshold. The definition does not include a building or if life-cycle cost-effective, new Federal Section 305(a)(3)(i)(II) requires DOE to construction project that is on the public domain buildings be designed to achieve energy establish regulations that require (including that reserved for national forests and consumption levels that are at least 30 sustainable design principles to be other purposes); that is on property of the percent below the levels established in applied to the siting, design, and Government in foreign countries; that is on Indian and native Eskimo property held in trust by the the applicable industry code, and that construction of all new and replacement Government; that is on land used in connection sustainable design principles are Federal buildings, to the extent life- with Federal programs for agricultural, recreational, applied to the siting, design, and cycle cost-effective. (42 U.S.C. and conservation purposes, including research in construction of all new and replacement 6834(a)(3)(i)(II)) connection with the programs; that is on or used in connection with river, harbor, flood control, buildings. (42 U.S.C. 6834(a)(3)(A)(i)) Section 305(a)(3) of ECPA as amended reclamation or power projects, for chemical Further, water conservation directs DOE to establish regulations that manufacturing or development projects, or for technologies must be applied to the require sustainable design principles be nuclear production, research, or development extent that the technologies are life- applied to a subset of new Federal projects; that is on or used in connection with housing and residential projects; that is on military cycle cost-effective. (42 U.S.C. buildings and Federal buildings installations (including any fort, camp, post, naval 6834(a)(3)(A)(ii)) and 6834(a)(3)(D)(vii) training station, airfield, proving ground, military As stated previously in this notice, 1 The Military Housing Privatization Initiative supply depot, military school, or any similar facility DOE has established regulations that (MHPI) is a public/private program whereby private of the Department of Defense); that is on sector developers may own, operate, and maintain installations of the Department of Veterans Affairs address the energy consumption military family housing. The MHPI was enacted on used for hospital or domiciliary purposes; or the requirements for new Federal buildings. February 10, 1996, as part of the National Defense exclusion of which the President considers to be (72 FR 72565) In the final rule for the Authorization Act for fiscal year 1996. justified in the public interest.

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believes that indoor air quality requirements only if they are life-cycle C. Federal Leadership in High requirements are vitally important to the cost-effective. Performance and Sustainable health and life safety of Federal The requirements in this proposed Building—Guiding Principles employees and visitors to Federal rule would not apply to major DOE is proposing to add requirements buildings and has therefore emphasized renovations that have construction to 10 CFR Parts 433 and 435 to their importance by making the project costs less than $2,500,000 (in implement the directive of section 305 requirements mandatory. For major 2007 dollars, adjusted for inflation using of ECPA that Federal buildings use renovations, the sustainable design U.S. Department of Labor Producer sustainable design principles for siting, requirements would only apply to the Price Indexes). design, and construction, and water portion of the building being renovated. conservation. As a basis for the Today’s proposed rule would require 3. Definition of ‘‘Major Renovation’’ Federal agencies to apply sustainable proposed sustainability requirements Major renovations are defined in the DOE utilized the December 2008 version design principles to the extent proposed rule as changes to a building practicable when designing the new of the Guiding Principles originally that provide significant opportunities adopted in the Federal Leadership in Federal buildings and major renovations for substantial improvement in the identified by the statute. Under the High Performance and Sustainable sustainable design elements covered in Building Memorandum of proposed rule, actions would be this rule, including energy efficiency. ‘‘ Understanding (MOU) signed by most required to be implemented to the DOE has also included in the definition extent practicable;’’ i.e., actions would Federal agencies. DOE incorporated of major renovation the statement that those requirements into today’s need to be implemented unless an any renovation that exceeds 25 percent agency determines that: Full proposed rulemaking. The guiding of the replacement value of the building principles are aimed at helping Federal implementation would prevent the would be considered a major building or facility from fulfilling a key agencies and organizations: renovation. The replacement value is • design or function objective; the Reduce the total ownership cost of used rather than the current value necessary products or materials cannot facilities. because the current value of old • be commercially procured in a timely Improve energy efficiency and buildings in poor condition may be very fashion; the net increases in total project water conservation. low. The proposed rule would only • life cycle costs are very large, or if initial Provide safe, healthy, and apply to portions of the building or funding required to integrate features to productive built environments. building system that are being • comply with this rule exceeds 3 percent Promote sustainable environmental renovated. For example, if the of total first costs. DOE requests stewardship. renovation includes the replacement of comments on whether or not the 3 Under Executive Order 13514, percent of total first cost limitation the watering system for landscaping ‘‘Federal Leadership in Environmental, should be added directly to the around an office building, then the Energy and Economic Performance’’ definition of ‘‘to the extent practicable’’ requirements for outdoor water use in (October 5, 2009), Federal agencies are in today’s rulemaking. In this the rules would apply. DOE notes that already required to ensure that new rulemaking, individual sustainable this definition has been used for a construction and major renovations of design measures are discussed number of years by the Department of agency buildings comply with the individually. It is the intent of the 3 Defense, the Federal government’s Guiding Principles. By basing the percent of total project cost that the single largest manager of Federal rulemaking on the Guiding Principles entire package of sustainable design buildings. DOE welcomes comments on already in use, DOE intends to minimize measure be less than 3 percent of the the definition of ‘‘major renovation,’’ the regulatory burden on Federal total first cost for the project. In particularly as to whether the definition agencies. DOE notes that the Guiding addition, DOE requests comments on would result in an unreasonable burden Principles do not address the issue of whether ‘‘very large’’ net increases in on planned renovations that are not site selection, and therefore provisions total project life cycle costs should be extensive enough to accomplish related to site selection have been added numerically defined, and if so, what sustainable design objectives. to the proposal. Additionally, DOE is that threshold or range should be. B. Solar Hot Water Heaters aware that revisions to the Guiding DOE believes that life cycle costing is Principles are currently being an important consideration in the Section 523 of EISA modifies Section considered. DOE will evaluate and definition of ‘‘to the extent practicable,’’ 305(a)(3)(A) of ECPA to require 30 consider any revisions to the Guiding but that failure of proof of life-cycle percent of hot water demand in new Principles as part of the final rule. cost-effectiveness in of itself is not Federal buildings or Federal buildings DOE is aware that several voluntary sufficient to disregard the application of undergoing major renovations to be met industry standards that would address sustainable design principles. The life- by solar water heaters if life-cycle cost- sustainable design are currently under cycle cost analysis may not capture all effective. (42 U.S.C. 6834(a)(3)(A)(iii)) development. Specifically, DOE is of the benefits from sustainable design. DOE interprets Section 523 to include aware of the development of: Environmental impacts often extend far all hot water usage in the building, • ASHRAE 189.1P—Standard for the beyond the ‘‘life’’ of a building or including hot water used for restrooms, Design of High-Performance, Green measures installed in a building. If a janitorial closets, food handling Buildings Except Low-Rise Residential required action cannot be fully facilities, and laundry facilities. Buildings, implemented for one of these reasons, Agencies should calculate the total hot • The International Green agencies should endeavor to implement water load for the building and then Construction Code under development the required action to the maximum determine if it is life cycle cost-effective by the International Code Council (ICC), extent feasible. to use solar hot water systems to meet and DOE is proposing that new Federal 30 percent of the annual demand. This • The National Green Building buildings that are not in these two requirement has been reflected in the Standard jointly developed by the categories identified above would need proposed rule. DOE welcomes National Association of Home Builders to comply with the sustainable design comments on this requirement. and the ICC for residential buildings.

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To the extent that such voluntary evaluations of certain facilities. (42 The proposed rule would implement industry standards are finalized prior to U.S.C. 8253(f)). DOE has issued the requirement established in EPCA, as the issuance of a final rule under this guidance on the implementation of this amended, that if water is used to rulemaking, DOE may consider requirement, which would address the achieve energy efficiency, water incorporating some or all of the operational component of the conservation technologies shall be provisions of the identified voluntary commissioning requirement proposed in applied to the extent that the industry standards. DOE welcomes this rulemaking. That guidance can be technologies are life-cycle cost-effective. comments on whether these or other found at http://www1.eere.energy.gov/ (42 U.S.C. 6834(a)(3)(A)(ii)) As nationally recognized green/sustainable femp/pdfs/eisa_s432_guidelines.pdf. proposed, this requirement would apply building design standards should be in instances in which a Federal agency 2. Optimize Energy Performance deemed to comply with the sustainable was relying on technologies such as design requirements in the DOE rules. Energy efficiency is considered as a cooling towers or condensing units as a The proposed requirements for major component of sustainable means to achieve energy efficiency. In sustainable design are nearly identical building design. As mentioned above, those instances, the proposed regulation for commercial buildings (including DOE issued a final rule on December 21, would require that, to the extent life- high-rise residential) in 10 CFR 433 and 2007, that incorporates the energy cycle cost-effective, the technologies are residential buildings in 10 CFR part 435. efficiency standards required in section water efficient. The differences are a requirement for 305 of ECPA. That final rule The proposed rule adopts the water radon control in residential buildings, incorporated the American Society of saving targets from the Guiding and a signage requirement to prohibit Heating, Refrigerating, and Air- Principles: a 20 percent reduction of smoking for commercial buildings only. Conditioning Engineers ANSI/ASHRAE/ indoor potable water usage and a 50 Radon is generally considered to be less IESNA Standard 90.1–2004, ‘‘Energy percent reduction in outdoor potable of a potential health concern in Standard for Buildings Except Low-Rise water usage. DOE is interested in input commercial buildings than in Residential Buildings,’’ and the on how to define procedures relating to residential buildings. The signage International Code Council’s 2004 the calculation of baseline water use requirement for prohibiting smoking is ‘‘International Energy Conservation and water savings for meeting these based on GSA notice in Federal Register Code.’’ That final rule also established a requirements. The DOE Federal Energy on December 22, 2008. requirement for new Federal buildings Management Program provides an The major sustainable design to achieve a level of energy estimate of water use by building type elements of the proposed rules are: consumption at least 30 percent below (http://www1.eere.energy.gov/femp/ • Integrated Design Principles. that of the Standard 90.1–2004 or the program/ • Optimize Energy Performance. waterefficiency_useindices.html) and in • 2004 IECC, as appropriate, when life- Protect and Conserve Water. cycle cost-effective, as directed by the the absence of other data, DOE proposes • Enhance Indoor Environmental statute. to use these as the baseline. To the Quality. extent practicable, use of WaterSense • Reduce Environmental Impact of Today’s notice of proposed labeled products, or products with Materials. rulemaking expands on the energy- comparable water efficiency, for product • Building Siting. related requirements in the previously categories labeled by WaterSense is published final rule to include solar 1. Integrated Design Principles required. water heating and renewable energy The issue of stormwater and Integrated design principles include generation projects. The solar water hydrology is not addressed in this rule. planning, setting goals, and building heating requirements are from section Stormwater runoff for ‘‘Federal commissioning. Building 305 of ECPA as amended by section 523 development projects’’ is explicitly commissioning is the process of of EISA. The proposed renewable addressed in Section 438 of EISA. The ensuring that building systems and energy generation requirements are U.S. Environmental Protection Agency equipment are designed, installed, reflective of the Guiding Principles and (EPA) has issued guidance on tested, and capable of being operated would support compliance with section complying with section 438 of EISA and maintained according to the 203 of the Energy Policy Act of 2005, (http://www.epa.gov/owow/nps/lid/ owner’s or occupants operational needs. which sets renewable energy section438/). Building commissioning is a key part of consumption percentages for Federal designing and building high- agencies. (42 U.S.C. 15852) 4. Enhance Indoor Environmental Quality performance buildings because it helps 3. Protect and Conserve Water ensure that controls, sensors, and The indoor environmental quality equipment will perform as intended Water is a key element of requirements from the Guiding throughout their expected life. Building sustainability because water is a limited Principles were adapted for this commissioning requires that the facility resource. The U.S. Government proposed rule. Leading sustainability and all of its systems and assemblies are Accountability Office estimated in 2003 programs include indoor environmental planned, designed, installed, tested, that 36 States will face water shortages quality in their scope. A key component operated, and maintained to meet the by 2013. The U.S. Geological Survey of the indoor environment is air quality. owner’s or occupant’s project estimates water use in the U.S. and All buildings have some potential for requirements. reports that 410 billion gallons per day indoor air quality-related health The building commissioning were withdrawn for all uses during problems, such as ‘‘sick-building requirements in the proposed rule are 2005. Public supply (including syndrome.’’ The proposed rule addresses based on the Guiding Principles. commercial and industrial uses) and the major aspects of indoor air quality— Additionally, DOE has specified the domestic water use was 48 billion source control for pollutants, moisture, operation of a building as part of the gallons per day, or 12 percent of the and ventilation. commissioning efforts. DOE recognizes national total. Most water use in the For pollutant sources, the rules that certain Federal agencies are nation is for thermoelectric power (49 specify low-emitting materials and required to conduct water and energy percent) and irrigation (31 percent). products used within buildings. For

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moisture control, the proposed rule construction waste and recycled content cycle cost-effectiveness. (42 U.S.C. addresses the potential for moisture are taken from the Guiding Principles. 6834(a)(3)(D)(i)(III)) For major flows and condensation that may lead to The 10 percent recycle content renovations and new buildings that fall the development of mold. The proposed requirement is adopted from the original in the two categories defined in EISA rule does not identify a particular version of the Guiding Principles. (‘‘public buildings’’ requiring a standard to address moisture control. The proposed rule also addresses prospectus and buildings/renovations DOE requests comment on whether a ozone depletion. The EPA defines costing at least $2.5 million), the voluntary industry standard, such as the ozone-depleting substance(s) (ODS) as a proposed rule would apply to the extent ASHRAE ‘‘Indoor Air Quality Guide: compound that contributes to practicable. Best Practices for Design, Construction stratospheric ozone depletion. ODS Under the proposed rule, for new and Commissioning’’ (2009), should be include CFCs, HCFCs, halons, methyl buildings that do not fall into the two incorporated into the regulation. bromide, carbon tetrachloride, and categories, the sustainability design For ventilation, the proposed rule methyl chloroform. ODS are generally requirements would apply only if the would require use of ASHRAE very stable in the troposphere and only requirements are proven to be life-cycle ‘‘Standards on Ventilation for degrade under intense ultraviolet light cost-effective using the procedures in 10 Acceptable Indoor Air Quality: Standard in the stratosphere. When they break CFR part 436 (excluding indoor air 62.1’’ for commercial buildings and down, they release chlorine or bromine quality requirements, which are residential high-rise buildings and atoms, which then deplete ozone. The mandatory). DOE is proposing that Standard 62.2 for low-rise residential proposed rule would instruct agencies Federal agencies would be permitted to buildings. Signage prohibiting smoking to not use ozone depleting compounds use one of four methods listed in 10 would be required for commercial and if an environmentally preferable CFR part 436 to demonstrate life-cycle high-rise residential buildings. material is available. Again, this cost-effectiveness. These methods Radon control requirements from element of the rule was adapted from include lower life-cycle costs, positive ASTM Standard 1465 are included in the Guiding Principles. net savings, savings-to-investment ratio the proposed rule for low-rise DOE requests comments on whether that is estimated to be greater than one, residential buildings. DOE requests requirements related to waste diversion and an adjusted internal rate of return comments on the inclusion of a radon and ozone depletion should be included that is estimated to be greater than the control requirement. DOE also in the rulemaking. Federal Energy Management Program welcomes suggestions for other or (FEMP) discount rate. The proposed 6. Building Siting additional radon standards that could be rule would only require that sustainable incorporated into this rule. Measures to The proposed rule includes design measures that are cost effective seal the foundation to prevent or reduce requirements for siting and directs be done, it would not prohibit measures radon from entering the building would Federal agencies to comply with all that improve sustainability but cannot be required in regions with high radon applicable Executive Orders, statutes be shown to be cost effective. potential (about one-third of the nation, and regulations. The applicable siting Defining life-cycle cost as it applies to mostly in colder States). DOE has taken authorities may include Executive sustainable buildings presents the definition of high radon potential Orders 12072, 13006, and 13514; the challenges. Some of the benefits are from EPA as counties that have a Rural Development Act of 1972; Federal economically measurable over a finite predicted average indoor radon Urban Land Use Act of 1949; and Public period of time, such as energy and water screening level greater than 4 pCi/L Buildings Cooperative Use Act of 1976. savings. Other benefits may not have an (picocuries per liter), as shown on the Site selection is important to economic benefit that can be clearly map at: http://www.epa.gov/radon/ minimize direct and indirect calculated, such as reduced greenhouse zonemap.html. DOE requests comments environmental impacts on the gases, reduced waste in landfills, on this definition of high radon surroundings of the building(s) to be protection of natural habitat, etc. DOE potential. constructed, including protecting has not attempted to quantify Radon is a cancer-causing naturally environmentally sensitive lands, externalities related to sustainable occurring radioactive gas that is the reducing energy use for transportation design, such as the value of wetlands second leading cause of lung cancer in and associated greenhouse gas preservation. The International America and EPA estimates this leads to emissions, and orienting the building to Organization for Standards (ISO) has the loss of about 20,000 lives annually take advantage of solar heat gains in the outlined principles and a framework for in radon related lung cancers. winter and/or minimize solar heat gains life cycle assessments for environmental in the summer. The proposed rule management in ISO Standard 14040 that 5. Reduce Environmental Impacts of includes energy efficiency consideration provides some guidance. DOE welcomes Materials as a siting priority. public comments on whether DOE Buildings use a diverse array of should attempt to quantify externalities D. Life-Cycle Cost-Effectiveness products. There is a limited supply of for these types of environmental some products’ raw materials. Products Section 305 of ECPA, as amended by benefits. Also, DOE requests comments can also require a substantial amount of section 109 of the Energy Policy Act of on which types of sustainability energy to be produced and transported. 2005, mandates the application of objectives should be subject to life cycle In 1998, an EPA report found 10.8 sustainable design principles to the cost analysis. million tons of waste was generated siting, design, and construction of all from new building construction in 1996. new and replacement buildings when E. Green Building Certification Systems In 2003, EPA reported a 21 percent life-cycle cost-effective. (42 U.S.C. Section 433 of EISA added a increase in construction waste since the 6834(a)(3)(A)(i)(II)) Section 433 of EISA certification system requirement for new 1998 report. The proposed rule would further amended section 305 of ECPA to Federal buildings and renovations that reduce construction waste and would apply sustainable design principles to are public buildings defined in 40 require the use of materials with certain new Federal buildings and major U.S.C. 3301, for which the recycled content and rapidly renewable renovations of Federal buildings Administrator of General Services is materials. The proposals for without specific consideration of life- required to transmit a prospectus to

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Congress under U.S.C. Title 40, section Leadership in Energy and the continued certification of a building 3307, or that are at least $2,500,000 in Environmental Design (LEED) rating as a certified green building. DOE is costs adjusted annually for inflation. (42 system would meet the criteria in considering a requirement for Federal U.S.C. 6834(a)(3)(D)(i)(III)) Under that section 436(h) of EISA and identified agencies to demonstrate that the energy requirement, DOE is to ‘‘identify a the ‘‘Silver’’ level as the minimum level. use of a certified green building is certification system and level for green The Department of Defense also consistent with the energy use targets buildings that the Secretary determines identified LEED with the Silver level as identified under the green building to be the most likely to encourage a the preferred rating system and level in certification program. DOE is comprehensive and environmentally- a letter to the Secretary of Energy.4 considering a requirement for a Federal sound approach to certification of green GSA informed DOE in the letter that agency to demonstrate that the energy buildings.’’ Section 433 of EISA directs it evaluated the following five rating use, at a minimum, in the first year of that the identification of the systems: a building’s green building certification certification system and level shall be • Building Research Establishment’s is consistent with the energy use based on a review of findings prepared Environmental Assessment Method identified as part of the certification by the Federal Director of the Office of (BREEAM); process. If the building’s energy use Federal High-Performance Green • Comprehensive Assessment System exceeded the target energy use Buildings (within the General Service for Building Environmental Efficiency identified under the green building Administration) under section 436(h) of (CASBEE); rating system, DOE is considering the • EISA and the criteria specified in clause GBTool; removal of the green building • Green GlobesTM U.S.; and certification. (iii), shall identify the highest level the • Secretary determines is appropriate Leadership in Energy and Focusing on the energy targets above the minimum level required for Environmental Design. identified in a green building rating certification under the system selected, GSA stated that it evaluated each rating system would be consistent with the and shall achieve results at least system’s: Guiding Principles MOU, which directs • comparable to the system used by and Applicability: Whether it is relevant the agencies to establish a whole highest level referenced by the General to the large scale and complexity of building performance target that takes Federal buildings. into account the intended use, Services Administration (GSA) as of the • date of enactment of EISA. In addition Stability: Whether it has been stable occupancy, operations, plug loads, and to the findings of the Federal Director, over time, so that the evaluation of a other energy demands, and design. DOE is to take into consideration— building’s performance is not subject to Reviewing energy use in the first year drastic changes. following construction or renovation (I) The ability and availability of • assessors and auditors to independently Objectivity: Whether it measures would help ensure that green-rated verify the criteria and measurement of quantifiable aspects of sustainable buildings continue to perform as metrics at the scale necessary to design and its ratings are verified by originally specified under the rating. qualified third parties. DOE is requesting comment on this implement this subparagraph; • (II) The ability of the applicable Availability: Whether it is widely potential regulation. certification organization to collect and used and has broad practitioner The statute does not require DOE to reflect public comment; awareness. identify a specific commercially (III) The ability of the standard to be In its identification, GSA utilized a available system, but requires DOE to 2006 report by Pacific Northwest identify a certification system and level developed and revised through a 5 consensus-based process; National Laboratory (PNNL) that for green buildings. As stated in the (IV) An evaluation of the robustness evaluated leading green building rating statute, DOE believes that the green of the criteria for a high-performance systems. The PNNL report identified the rating of a building must encourage a green building, which shall give credit five rating systems listed above as comprehensive and environmentally for promoting: having the greatest potential of sound approach to building and (a) Efficient and sustainable use of addressing GSA needs. The PNNL renovation design. Given that systems water, energy, and other natural report summarized and reviewed each may be further developed, DOE is resources; of the five rating systems, but did not proposing minimum criteria for any (b) Use of renewable energy sources; provide a recommendation on a system that a Federal agency would (c) Improved indoor environmental preferred system. choose to use to green rate a building. quality through enhanced indoor air DOE recognizes that there are DOE is proposing criteria for agencies quality, thermal comfort, acoustics, day multiple green building rating systems to identify green rating systems if an lighting, pollutant source control, and currently available and additional agency chooses to green rate a building. use of low-emission materials and systems may be developed. These Under the proposed regulations, if an building system controls; and systems have various levels of ratings, agency were to choose to green rate a (d) Such other criteria as the Secretary representing differing degrees of energy building the green rating system would determines to be appropriate. efficiency and sustainable design. be required to— (V) National recognition within the Additionally, the existing systems may (1) Enable assessors and auditors to building industry. (42 U.S.C. be revised and updated over time. independently verify the criteria and 6834(a)(3)(D)(iii)) As part of a Federal building being measurement metrics of the system; GSA identified a green building green-rated, DOE is considering the (2) Be developed by a certification certification system under section development of requirements to apply organization that 436(h) of EISA in a letter to the (i) Provides an opportunity for public Secretary of Energy.3 GSA stated that 4 Letter from Wayne Arny, Deputy Under comment on the system; and Secretary of Defense (Installations and the U.S. Green Building Council’s (ii) Provides an opportunity for Environment), dated May 5, 2009. development and revision of the system 5 Fowler, KM and Rauch, EM. 2006. Sustainable 3 Letter from Lorita Doan, GSA Administrator to Building Rating Systems: Summary. PNNL–15858. through a consensus based process; and Samuel Bodman, Secretary of Energy, dated April Pacific Northwest National Laboratory. Richland, (3) Be nationally recognized within 25, 2008. EXEC–2008–005379. Washington. the building industry.

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Included in the statutory criteria for clause (i)(III). The Secretary shall ‘‘Whole Building Design Guide— consideration by DOE in identifying include in any such rule guidelines to National Institute of Building Sciences’’ green building rating systems is the ensure that the certification process http://www.wbdg.org evaluation of the robustness of the results in buildings meeting the This is a portal providing one-stop system’s criteria for a high-performance applicable certification system and level access to up-to-date information on a green building. DOE considers the identified under clause (i)(III). An wide range of building-related guidance, evaluation of the ‘‘robustness’’ of a green agency employing an internal criteria and technology from a whole building rating system to include certification process must continue to buildings perspective. Specific guidance consideration of its ability to improve obtain external certification by the for implementing the Guiding Principles over time and ensure design certification entity identified under for sustainable buildings is provided at performance over time. As such, DOE is clause (i)(III) for at least 5 percent of the http://www.fedcenter.gov/Documents/ also considering to require that green total number of buildings certified index.cfm?id=11130&pge_prg_id= rating systems used by Federal agencies ’’ 19319&pge_id=1860. are those systems that— annually by the agency. Under the (1) Are subject to periodic evaluation proposal agencies would be able to American Society of Heating, and assessment of the environmental submit to DOE their own internal Refrigerating and Air-Conditioning and energy benefits that result under the certification systems for approval by Engineers (ASHRAE) http:// rating system; and DOE. spc189.ashraepcs.org/ (2) Include a verification system for III. Reference Resources ASHRAE has issued Standard 189.1, post-occupancy assessment of the rated ‘‘Standard for the Design of High- buildings to periodically demonstrate DOE has prepared a list of resources Performance, Green Buildings Except continued environmental benefits and to help Federal agencies address the Low-Rise Residential Buildings.’’ energy savings. principles of sustainable design. The ‘‘Building America’’—U.S. Department DOE understands that existing green Federal Register final rule published on of Energy http://www.eere.energy.gov/ building rating systems may not meet December 21, 2007 (71 FR 72565) these two additional criteria, but buildings/building_america/ contains reference resources for energy understands that several systems are efficiency. These resources come in Building America is a private/public moving in a direction consistent with many forms (such as design guidance partnership that develops energy these additional criteria. and case studies) and in a variety of solutions for new and existing homes. Under this proposal, DOE believes The Building America project combines that agencies would be provided the media (such as in printed documents or on Web sites). the knowledge and resources of industry flexibility to choose the green building leaders with DOE’s technical rating system that best fits their needs Life-Cycle Cost Analysis—U.S. DOE capabilities. Together, they act as a as long as the system meets the criteria Federal Energy Management Program catalyst for change in the home-building set in this rulemaking. http://www.access.gpo.gov/nara/cfr/ industry. Under today’s proposed rule, the waisidx_04/10cfr436_04.html minimum level of rating would need to Energy & Environmental Building be a level that ensures compliance with The life-cycle cost analysis rules Association (EEBA) http:// the applicable energy efficiency, water promulgated in 10 CFR part 436 Subpart www.eeba.org/ use, and sustainable design A, ‘‘Methodology and Procedures for EEBA’s mission is to provide requirements established in regulation. Life Cycle Cost Analysis,’’ conform to education and resources to transform DOE requests comments as to whether requirements in the Federal Energy the residential design, development and the minimum level should also reflect Management Improvement Act of 1988 construction industries to profitably the Guiding Principles MOU and all and subsequent energy conservation deliver energy efficient and applicable executive orders. legislation. The life-cycle cost guidance, environmentally responsible buildings As indicated above, GSA identified discount rates, and energy price and communities. LEED Silver as a green rating system projections are determined annually by and level that meets the criteria The Partnership for Advancing expressly identified in the statute. DOE FEMP and the Energy Information Technology in Housing (PATH)—U.S. requests comment on other green rating Administration, and published in the Department of Housing and Urban systems and associated levels/points Annual Supplement to The National Development http://www.pathnet.org/ Institute of Standards and Technology that also would meet the statutory PATH is dedicated to accelerating the ‘‘ criteria. DOE also requests comments on Handbook 135: Energy Price Indices development and use of technologies the additional criteria being considered and Discount Factors for Life-Cycle Cost that radically improve the quality, by DOE. DOE intends to make a list of Analysis.’’ FEMP also provides guidance durability, energy efficiency, any green building rating systems on the LCC requirements of Executive environmental performance, and determined by Federal agencies to meet Order 13423 at http:// affordability of America’s housing. the criteria adopted in the final rule www1.eere.energy.gov/femp/program/ PATH is a voluntary partnership available to Federal agencies in order to lifecycle.html and http://www1.eere. between leaders of the homebuilding, provide guidance. DOE requests energy.gov/femp/information/ product manufacturing, insurance, and comment on the proposed criteria and download_blcc.html. Life cycle cost financial industries and representatives the potential for other green rating rules also refer to OMB Circular A–4 of Federal agencies concerned with systems to meet the proposed criteria. and A–94, which may be found at the housing. Section 305(a)(3)(D)(v) of ECPA states following links: that ‘‘the Secretary may by rule allow WaterSense Program http:// Federal agencies to develop internal Circular A–4—www.whitehouse.gov/ www.epa.gov/watersense certification processes, using certified OMB/Circulars/a004/a-4.pdf. Launched in 2006, WaterSense is an professionals, in lieu of certification by Circular A–94—www.whitehouse.gov/ EPA-sponsored partnership program the certification entity identified under omb/circulars/a094/a094.html. that seeks to protect the future of our

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nation’s water supply by promoting to public property, and therefore, is not requirements for Federal buildings only. water efficiency and enhancing the subject to any legal requirement to No further action is required by market for water-efficient products, publish a general notice of proposed Executive Order 13132. programs, and practices. WaterSense rulemaking. The Regulatory Flexibility F. Review Under Executive Order 12988, Act does not apply. helps consumers identify water-efficient ‘‘Civil Justice Reform’’ products and programs that meet C. Review Under the Paperwork With respect to the review of existing WaterSense water efficiency and Reduction Act of 1995 performance criteria. Products carrying regulations and the promulgation of the WaterSense label perform well, help This rulemaking will impose no new new regulations, section 3(a) of save money, and encourage innovation information or record keeping Executive Order 12988, ‘‘Civil Justice in manufacturing. requirements. Accordingly, OMB Reform,’’ 61 FR 4729 (February 7, 1996), clearance is not required under the imposes on Federal agencies the general Federal Energy Management Program Paperwork Reduction Act. (44 U.S.C. duty to adhere to the following http://www1.eere.energy.gov/femp/ 3501 et seq.) requirements: (1) Eliminate drafting program/sustainable_resources.html errors and ambiguity; (2) write D. Review Under the National regulations to minimize litigation; and Executive Order 13514—Federal Environmental Policy Act of 1969 Leadership in Environmental, Energy, (3) provide a clear legal standard for and Economic Performance http:// The Department prepared a draft affected conduct, rather than a general www1.eere.energy.gov/femp/ Environmental Assessment (EA) (DOE/ standard and promote simplification regulations/eo13514.html EA–1463) pursuant to the Council on and burden reduction. Section 3(b) of Environmental Quality’s (CEQ) Executive Order 12988 specifically This executive order references the Regulations for Implementing the requires that Executive agencies make Guiding Principles which are Procedural Provisions of the National every reasonable effort to ensure that the incorporated into this rulemaking. Environmental Policy Act (40 CFR parts regulation: (1) Clearly specifies the IV. Regulatory Analysis 1500–1508), the National Environmental preemptive effect, if any; (2) clearly Policy Act of 1969 (NEPA), as amended specifies any effect on existing Federal A. Review Under Executive Order (42 U.S.C. 4321 et seq.), and DOE’s law or regulation; (3) provides a clear ‘‘ 12866, Regulatory Planning and NEPA Implementing Procedures (10 legal standard for affected conduct, Review’’ CFR part 1021). while promoting simplification and Today’s notice of public rulemaking is The draft EA addresses the potential burden reduction; (4) specifies the a significant regulatory action under incremental environmental effects retroactive effect, if any; (5) adequately section 3(f)(1) of Executive Order 12866, attributable to the application of the defines key terms; and (6) addresses ‘‘Regulatory Planning and Review,’’ 58 proposed rules. The draft EA has been other important issues affecting clarity FR 51735 (October 4, 1993). added to the docket for this rulemaking. and general draftsmanship under any Accordingly, today’s action was E. Review Under Executive Order 13132, guidelines issued by the Attorney reviewed by the Office of Information ‘‘Federalism’’ General. Section 3(c) of Executive Order and Regulatory Affairs (OIRA) in the 12988 requires Executive agencies to Office of Management and Budget Executive Order 13132, ‘‘Federalism,’’ review regulations in light of applicable (OMB). 64 FR 43255 (August 4, 1999), imposes standards in section 3(a) and section certain requirements on agencies 3(b) to determine whether they are met B. Review Under the Regulatory formulating and implementing policies or it is unreasonable to meet one or Flexibility Act or regulations that preempt State law or more of them. DOE has completed the The Regulatory Flexibility Act that have federalism implications. The required review and determined that, to (5 U.S.C. 601 et seq.) requires the Executive Order requires agencies to the extent permitted by law, this notice preparation of an initial regulatory examine the constitutional and statutory of proposed rulemaking meets the flexibility analysis for any rule that by authority supporting any action that relevant standards of Executive Order law must be proposed for public would limit the policymaking discretion 12988. comment, unless the agency certifies of the States and to carefully assess the that the rule, if promulgated, will not necessity for such actions. The G. Review Under the Unfunded have a significant economic impact on Executive Order also requires agencies Mandates Reform Act of 1995 a substantial number of small entities. to have an accountable process to Title II of the Unfunded Mandates As required by Executive Order 13272, ensure meaningful and timely input by Reform Act of 1995 (UMRA) (Pub. L. Proper Consideration of Small Entities State and local officials in the 104–4) requires each Federal agency to in Agency Rulemaking, 67 FR 53461 development of regulatory policies that assess the effects of Federal regulatory (August 16, 2002), DOE published have federalism implications. On March actions on State, local, and Tribal procedures and policies on February 19, 14, 2000, DOE published a statement of governments and the private sector. For 2003, to ensure that the potential policy describing the intergovernmental a proposed regulatory action likely to impacts of its rules on small entities are consultation process it will follow in the result in a rule that may cause the properly considered during the development of such regulations. (65 FR expenditure by State, local, and Tribal rulemaking process. 68 FR 7990. The 13735). DOE examined this notice of governments, in the aggregate, or by the Department has made its procedures proposed rulemaking and determined private sector of $100 million or more and policies available on the Office of that it does not preempt State law and in any 1 year (adjusted annually for General Counsel’s Web site: http:// does not have a substantial direct effect inflation), section 202 of UMRA requires www.gc.doe.gov. on the States, on the relationship a Federal agency to publish a written Today’s proposed rule would amend between the national government and statement that estimates the resulting standards for the design and the States, or on the distribution of costs, benefits, and other effects on the construction of new Federal buildings power and responsibilities among the national economy. (2 U.S.C. 1532(a) and and major renovations of Federal various levels of Government. The (b)) The UMRA also requires a Federal buildings. Today’s rulemaking is related proposed rulemaking would establish agency to develop an effective process

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to permit timely input by elected 62446 (October 7, 2002). DOE has PART 433—ENERGY EFFICIENCY AND officers of State, local, and Tribal reviewed today’s notice of proposed SUSTAINABLE DESIGN STANDARDS governments on a proposed ‘‘significant rulemaking under the OMB and DOE FOR NEW FEDERAL COMMERCIAL intergovernmental mandate,’’ and guidelines and has concluded that it is AND MULTI-FAMILY HIGH-RISE requires an agency plan for giving notice consistent with applicable policies in RESIDENTIAL BUILDINGS and opportunity for timely input to those guidelines. potentially affected small governments 1. The authority citation for part 433 K. Review Under Executive Order 13211, before establishing any requirements continues to read as follows: ‘‘Actions Concerning Regulations That that might significantly or uniquely Significantly Affect Energy Supply, Authority: 42 U.S.C. 6831–6832, 6834– affect small governments. On March 18, Distribution, or Use’’ 6835; 42 U.S.C. 7101 et seq. 1997, DOE published a statement of 2. The heading for part 433 is revised policy on its process for Executive Order 13211, ‘‘Actions intergovernmental consultation under Concerning Regulations That to read as set forth above. UMRA (62 FR 12820) (also available at Significantly Affect Energy Supply, 3. Revise § 433.1 to read as follows: Distribution, or Use,’’ 66 FR 28355 (May http://www.gc.doe.gov). This notice of § 433.1 Purpose and scope. proposed rulemaking contains neither 22, 2001), requires Federal agencies to an intergovernmental mandate nor a prepare and submit to the Office of This part establishes an energy mandate that may result in the Information and Regulatory Affairs efficiency performance and sustainable expenditure of $100 million or more in (OIRA), Office of Management and design standard for the new Federal any year, so these requirements under Budget, a Statement of Energy Effects for commercial and multi-family high-rise the Unfunded Mandates Reform Act do any proposed significant energy action. residential buildings, for which design not apply. A ‘‘significant energy action’’ is defined for construction began on or after as any action by an agency that January 3, 2007 (except as otherwise H. Review Under the Treasury and promulgated or is expected to lead to indicated: Solar water heating, General Government Appropriations promulgation of a final rule, and that: sustainable design, and green building Act of 1999 (1) Is a significant regulatory action certification requirements are applicable Section 654 of the Treasury and under Executive Order 12866, or any 1 year after publication of the final rule), General Government Appropriations successor order; and (2) is likely to have as required by section 305(a) of the Act of 1999 (Pub. L. 105–277) requires a significant adverse effect on the Energy Conservation and Production Federal agencies to issue a Family supply, distribution, or use of energy, or Act, as amended (42 U.S.C. 6834(a)). Policymaking Assessment for any rule (3) is designated by the Administrator of Additionally, this part establishes that may affect family well-being. This OIRA as a significant energy action. For certain requirements applicable to major notice of proposed rulemaking would any proposed significant energy action, renovations of Federal commercial and not have any impact on the autonomy the agency must give a detailed multi-family high-rise residential or integrity of the family as an statement of any adverse effects on buildings, as indicated. For renovated institution. Accordingly, DOE has energy supply, distribution, or use buildings, those requirements apply concluded that it is not necessary to should the proposal be implemented, only to the portions of the building or prepare a Family Policymaking and of reasonable alternatives to the building systems that are being Assessment. action and their expected benefits on renovated and to the extent that the energy supply, distribution, and use. scope of the renovation permits I. Review Under Executive Order 12630, This notice of proposed rulemaking compliance with the applicable ‘‘Governmental Actions and Interference would not have a significant adverse requirements in this rule. Unaltered With Constitutionally Protected Property effect on the supply, distribution, or use portions of the building or building Rights’’ of energy and, therefore, is not a systems are not required to comply with The Department has determined, significant energy action. Accordingly, this rule. under Executive Order 12630, DOE has not prepared a Statement of 4. Section 433.2 is amended by: ‘‘Governmental Actions and Interference Energy Effects. a. Adding in alphabetical order, with Constitutionally Protected Property V. Approval of the Office of the definitions of ‘‘Biobased,’’ Rights,’’ 53 FR 8859 (March 18, 1988), Secretary ‘‘Commissioning,’’ ‘‘Critical visual tasks,’’ that this notice of proposed rulemaking ‘‘Daylight factor,’’ ‘‘EPA-designated would not result in any takings which The Secretary of Energy has approved product,’’ ‘‘Major renovation,’’ might require compensation under the publication of today’s notice of ‘‘Postconsumer material,’’ ‘‘Potable Fifth Amendment to the United States proposed rulemaking. water’’ and ‘‘Rapidly renewable,’’ ‘‘To the Constitution. List of Subjects in 10 CFR Parts 433 and extent practicable’’ and ‘‘USDA- J. Review Under the Treasury and 435 designated product;’’ and General Government Appropriations Buildings and facilities, Energy b. Revising the definitions of ‘‘Life- Act, 2001 conservation, Engineers, Federal cycle cost,’’ ‘‘Life-cycle cost-effective,’’ Section 515 of the Treasury and buildings and facilities, Housing, and ‘‘New Federal building.’’ General Government Appropriations Sustainable design. The additions and revisions read as Act, 2001 (44 U.S.C. 3516, note) Issued in Washington, DC, on April 13, follows: provides for agencies to review most 2010. disseminations of information to the Cathy Zoi, § 433.2 Definitions. public under guidelines established by Assistant Secretary, Energy Efficiency and * * * * * each agency pursuant to general Renewable Energy. Biobased means a commercial or guidelines issued by OMB. OMB’s For the reasons set forth in the industrial product (other than food or guidelines were published at 67 FR preamble, DOE is proposing to amend feed) that is composed, in whole or in 8452 (February 22, 2002), and DOE’s chapter II of title 10 of the Code of significant part, of biological products, guidelines were published at 67 FR Federal Regulations as set forth below: including renewable agricultural

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materials (e.g., plant, animal, and improvement in energy efficiency. This (2) Federal buildings undergoing a marine materials) and forestry materials. may include but is not limited to major renovation, for which design for * * * * * replacement of the HVAC system, the renovation began 1 year after Commissioning means a quality lighting system, the building envelope, publication of the final rule, must focused process for enhancing the and other components of the building provide at least 30 percent of the hot delivery of a project. The process that have a major impact on energy water demand for the portion of the focuses upon verifying and usage. Major renovation also includes a building that is being renovated through documenting that the facility and all of renovation of any kind which has a cost the installation of solar hot water its systems and assemblies are planned, exceeding 25 percent of the replacement heaters, to the extent life-cycle cost- designed, installed, tested, operated, value of the building. effective as compared to other and maintained to meet the owner’s or New Federal building means any new reasonably available technologies. occupant’s project requirements. building (including a complete 6. Add § 433.6 to read as follows: Critical visual tasks means office/ replacement of an existing building § 433.6 Sustainable design principles for classroom type work which involves from the foundation up) to be siting, design and construction. reading printed text, entering data into constructed by, or for the use of, any computers, writing and drawing. Federal agency. Such term shall include (a) This section applies to new Daylight factor means the illuminance buildings built for the purpose of being Federal commercial and multi-family due to daylight on the indoor working leased by a Federal agency, and high-rise residential buildings and plane divided by the illuminance privatized military housing. major renovations to Federal outdoors on an unobstructed horizontal Postconsumer material means a commercial and multi-family high-rise plane. material or finished product that has residential buildings for which design for construction began 1 year after * * * * * served its intended use and has been publication of the final rule. EPA-designated product means a discarded for disposal or recovery, (b) All Federal agencies shall design product listed by EPA as a designated having completed its life as a consumer new Federal commercial and multi- product under EPA’s comprehensive item. family high-rise residential buildings procurement guidelines established Potable water means water from and major renovations to Federal under section 6002 of the Solid Waste public drinking water systems or from commercial and multi-family high-rise Disposal Act. (42 U.S.C. 6962) natural freshwater sources such as lakes, residential buildings to meet the streams, and aquifers where water from * * * * * requirements of paragraphs (e) and (f) of such natural sources would or could Life-cycle cost means the total cost of this section to the extent practicable, meet drinking water standards. owning, operating and maintaining a and paragraph (g) of this section if: building, building systems, or building * * * * * (1) The subject building is a public components, including any mechanical Rapidly renewable refers to materials building as defined in 40 U.S.C. 3301 systems, service water heating systems and products made from plants that are and for which transmittal of a and electric power and lighting systems harvested within a 10-year cycle. prospectus to Congress is required located on the building site and * * * * * under 40 U.S.C. 3307; or supporting the building over its useful To the extent practicable means (2) The cost of the building or major life (including its fuel and water, wherever feasible, taking into renovation is at least $2,500,000 (in energy, labor, and replacement consideration health and life safety, key 2007 dollars, adjusted for inflation). components), determined on the basis of project design and function objectives, (c) All Federal agencies shall design a systematic evaluation and comparison agency mission, product or material new Federal commercial and multi- of alternative building systems, except availability, net increases in life cycle family high-rise residential buildings that in the case of leased buildings, the cost (if significant), and total funding other than those that meet the criteria in life cycle cost shall be calculated over available. paragraph (b) of this section to comply the effective remaining term of the lease. USDA-designated product means a with the requirements in paragraph (f) Life-cycle cost-effective means that the product listed by USDA as a designated of this section to the extent the building, energy or water systems in the product under USDA’s biobased requirements are life-cycle cost-effective building, components of those energy or procurement program established and paragraph (g) of this section. water systems, and conservation Section 9002 of the Farm Security and (d) The requirements of this section measures as defined in 10 CFR 436.11 Rural Investment Act of 2008. (7 U.S.C. are not applicable to major renovations in the proposed building or major 8102) that do not meet the criteria in renovation have a lower life-cycle cost 5. Add in § 433.4 a new paragraph (d) paragraph (b) of this section. than the life-cycle costs of the to read as follows: (e) (1) Integrated design. Federal corresponding systems and measures in agencies must use a planning and the baseline building, as described by 10 § 433.4 Energy efficiency performance design process that: CFR 436.19, or has a positive estimated standard. (i) Initiates and maintains an net savings, as described by 10 CFR (d) Solar hot water. (1) All Federal integrated project team as described in 436.20; or has a savings-to-investment agencies shall design new Federal the National Institute of Building ratio estimated to be greater than one, as commercial and multi-family high-rise Science ‘‘Whole Building Design Guide’’ described by 10 CFR 436.21; or has an residential buildings, for which design in all stages of a project’s planning and adjusted internal rate of return, as for construction began 1 year after delivery. described by 10 CFR 436.22, that is publication of the final rule, such that (ii) Integrates the use of OMB’s estimated to be greater than the FEMP at least 30 percent of the hot water Circular A–11, Section 7, Exhibit 300: discount rate. demand is provided through the Capital Asset Plan and Business Case * * * * * installation of solar hot water heaters, to Summary. Major renovation means changes to a the extent life-cycle cost-effective as (iii) Establishes performance building that provide significant compared to other reasonably available specifications consistent with this part opportunities for substantial technologies. for siting, energy, water, materials, and

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indoor environmental quality along (i) Water meters must be installed to major renovations for critical visual with other comprehensive design goals allow for the management of water use tasks. and ensures incorporation of these goals during occupancy. (ii) Federal agencies should provide throughout the design and life-cycle of (ii) Harvested rainwater, treated automatic dimming controls or the building. wastewater, and air conditioner accessible manual lighting controls, and (iv) Considers all stages of the condensate shall be used to the extent appropriate glare control. building’s lifecycle, including practicable for non-potable use and construction, occupancy, and potable use, but shall not be used to (7) Low-emitting materials. Federal deconstruction. meet the 20 percent reduction in potable agencies must use materials and (2) Commissioning. Federal agencies water usage. products with low pollutant emissions, must employ commissioning practices (3) Outdoor water. Federal agencies including composite wood products, to verify performance of building must use water efficient landscape and adhesives, sealants, interior paints and components and systems and help irrigation strategies, such as water reuse, finishes, carpet systems, and ensure that design requirements are met. recycling, and the use of harvested furnishings. Commissioning practices must include: rainwater, to reduce outdoor potable (8) Indoor air quality during (i) An experienced commissioning water consumption by a minimum of 50 construction. (i) Federal agencies shall provider; percent over the outdoor water baseline follow the appropriate recommended (ii) Inclusion of commissioning calculated for the building. If baseline approach of the Sheet Metal and Air requirements in construction data is not available, the baseline for the Conditioning Contractor’s National documents; building shall be calculated from the ‘‘ (iii) A commissioning plan; Association Indoor Air Quality (iv) Verification of the installation, Federal water use indices issued by the Guidelines for Occupied Buildings performance, and operation of systems DOE Federal Energy Management under Construction, 2007,’’ to be commissioned; and Program for a building of the same (incorporated by reference, see § 433.3) (v) A commissioning report. building type as the proposed building. (ii) After construction and prior to (f) (1) Renewable energy. Federal (4) Water-efficient products. Use of occupancy, Federal agencies shall agencies must implement renewable WaterSense labeled products, or conduct a minimum 72-hour flush-out energy generation projects on agency products with comparable water with maximum outdoor air consistent property for agency use, when lifecycle efficiency, for product categories labeled with achieving relative humidity no cost effective. by WaterSense is required. greater than 60 percent. (2) Indoor water. Federal agencies (5) Moisture control. Federal agencies must employ strategies that in aggregate shall establish and implement a (iii) After occupancy, Federal agencies use a minimum of 20 percent less moisture control strategy for controlling shall continue flush-out as necessary to potable water than the indoor water use moisture flows and condensation to minimize exposure to contaminants baseline calculated for the building. If prevent building damage, minimize from new building materials. baseline data is not available, the mold contamination, and reduce health (iv) As an alternative to the baseline for the building shall be risks related to moisture. requirements in paragraphs (f)(8)(i), (ii), calculated from the Federal water use (6) Day lighting. (i) Federal agencies and (iii) of this section, demonstrate that indices issued by the DOE Federal must achieve a minimum daylight factor the contaminant maximum Energy Management Program for a of 2 percent (excluding all direct concentration levels listed in the table building of the same building type as sunlight penetration) in 75 percent of all below are not exceeded in the the proposed building. space occupied in new buildings and completed building:

Contaminant Maximum concentration

Formaldehyde ...... 27 parts per billion. Particulates (PM10) ...... 50 micrograms per cubic meter. Total volatile organic compounds (TVOCs) ...... 500 micrograms per cubic meter. 4-Phenylcyclohexene (4-PCH) * ...... 6.5 micrograms per cubic meter. Carbon monoxide (CO) ...... 9 parts per million and no greater than 2 parts per million above out- door levels. * This test is only required if carpets and fabrics with styrene butadiene rubber (SBR) latex backing are installed as part of the base building systems.

(9) Materials. (i) Recycled content. (A) For product categories that are wood, landscape trimmings, compost, Selection of construction materials and designated in EPA’s Comprehensive crushed concrete) products shall reflect a preference for Procurement Guidelines (CPG), (ii) Biobased content. (A) Per Section materials and products containing products meeting or exceeding EPA’s 9002 of the Farm Security and Rural recycled materials or made from recycled content recommendations shall Investment Act for USDA designated recycled materials such that the post- be used. products, use products with the highest consumer recycled content, plus one- (B) The reuse of lumber, and masonry content level per USDA’s biobased half of the pre-consumer recycled units, such as brick, tile, stone and content recommendations as specified content, shall constitute a minimum of concrete block, conforming to the in the USDA Biopreferred Program. 10 percent, based on cost or requirements specified in the (B) For other products, specify replacement value, of the total materials International Building Code shall be biobased products made from rapidly in the building project. To achieve the recognized as recycled/recovered renewable resources and certified content. 10 percent requirement, the following sustainable wood products. (C) Utilize recycled-content (iii) Environmentally preferable practices may be employed: landscaping materials (e.g., shredded products. Federal agencies must use

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products that have a lesser or reduced (incorporated by reference; see § 433.3), (3) Be nationally recognized within effect on human health and the including continuous humidity control the building industry; environment over their life-cycle when within established ranges per climate (4) Be subject to periodic evaluation compared with competing products or zone, and ASHRAE 62.1 (incorporated and assessment of the environmental services that serve the same purpose. by reference; see § 433.3). and energy benefits that result under the Federal agencies should consider the (2) Environmental tobacco smoke rating system; and number of standards and ecolabels are control. Federal agencies shall (5) Include a verification system for available in the marketplace to assist implement a policy and post signage post occupancy assessment of the rated specifiers in making environmentally indicating that smoking is prohibited buildings to periodically demonstrate preferable decisions. Consult the EPA within the building and within 25 feet continued environmental benefits and ‘‘Federal Green Construction Guide for of all building entrances, operable energy savings. Specifiers’’ for recommendations. windows, and building ventilation (b) Certification level. If a new Federal (iv) Waste and materials intakes during building occupancy. building or Federal building undergoing management. (A) Buildings shall plan Agency policy shall be consistent with a major renovation meeting either of the for recycling of specific materials, such all applicable Federal rules, Executive two criteria in § 433.6(b) is to be as paper, metals, plastics, cardboard, Orders, and other relevant Federal certified under a green building and electronics (and associated actions. certification system, the building must products). 7. Add § 433.7 to read as follows: be certified to a level that— (B) Adequate space, equipment, and (1) Ensures compliance with— transport accommodations for recycling § 433.7 Water conservation. (i) The energy efficiency performance must be included in the building design. If water is used to achieve energy standards of this part; and (C) During a project’s planning stage, efficiency, water conservation (ii) Water use requirements of this local recycling and salvage operations technologies must be applied to the part; and that could process site-related extent practicable that the technologies (iii) Sustainable design requirements construction and demolition materials are life-cycle cost-effective. of this part. must be identified. If such operations 8. Revise § 433.8 to read as follows: (2) Promotes the high performance are available locally, materials must be sustainable building guidelines § 433.8 Life-cycle costing. recycled or salvaged. referenced in E. O. 13423 (v) At least 50 percent of non- For the purpose of this section, ‘‘Strengthening Federal Environmental, hazardous and non-radioactive evaluation of whether compliance with Energy, and Transportation construction, demolition and land a requirement is life-cycle cost-effective Management.’’ clearing materials, excluding soil, must shall be considered on the basis of (c) Federal agencies may request DOE be recycled or salvaged. individual requirements, not the entire approval of internal certification (vi) Ozone depleting compounds. The rule. If synergies exist that make processes, using certified professionals, use of ozone depleting compounds combinations of requirements life-cycle in lieu of certification by a system during and after construction must be cost-effective where individual meeting the criteria in paragraph (a) of eliminated where alternative requirements are not, then these this section. Requests for approval must environmentally preferable products are combination of requirements shall be be sent to the Office of the Federal available. complied with. If requirements Energy Management Program in DOE. (10) Siting. (i) The site selection for containing numerical savings values are Submissions should demonstrate how Federal building construction shall not life-cycle cost-effective, the design the internal certification process would comply with all applicable Federal of the proposed building shall ensure compliance with all applicable rules, Executive Orders, and other incorporate as much savings as is life- regulations under this Part. The Office Federal actions governing cycle cost-effective. of the Federal Energy Management environmental issues impacted by 9. Add a new § 433.9 to read as Program may request additional Federal building construction. follows: information as necessary. The Office of Federal Energy Management will make (ii) Site selection must prioritize: § 433.9 Green building certification. (A) Building orientation to maximize a determination within 120 days of a energy efficiency of the building, (a) Green building certification completed submission. An agency may (B) Locations in central business system. If a new Federal building or then employ the approved internal districts and rural town center, Federal building undergoing a major certification process but must obtain (C) Sites well served by transit, renovation, meeting the criteria in external certification by a system (D) Site design elements that ensure § 433.6(b) for which design for meeting the criteria in paragraph (a) of safe and convenient pedestrian access, construction began 1 year after this section for at least 5 percent of the (E) Consideration of transit access and publication of the final rule is to be total number of buildings certified proximity to housing affordable to a certified under a green building annually by the agency. wide range of Federal employees, certification system, the system under (F) Adaptive reuse or renovation of which the building is certified must— PART 435—ENERGY EFFICIENCY AND buildings, (1) Have the ability for assessors and SUSTAINABLE DESIGN STANDARDS (G) Avoiding development of auditors to independently verify the FOR NEW FEDERAL LOW-RISE sensitive land resources (such as criteria and measurement metrics of the RESIDENTIAL BUILDINGS greenfields and USDA Prime Farmland), system; 10. The authority citation for part 435 and (2) Be developed by a certification continues to read as follows: (H) Evaluation of parking organization that management strategies. (i) Provides an opportunity for public Authority: 42 U.S.C. 6831–6832, 6834– (g)(1) Ventilation and thermal comment on the system; and 6835; 42 U.S.C. 8253–54; 42 U.S.C. 7101 et comfort. Federal agencies shall design (ii) Provides an opportunity for seq. new buildings and major renovations to development and revision of the system 11. The heading for part 435 is revised meet the requirements of ASHRAE 55 through a consensus based process; to read as set forth above.

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12. Revise § 435.1 to read as follows: reading printed text, entering data into usage. Major renovation also includes a computers, writing and drawing. renovation of any kind which has a cost § 435.1 Purpose and scope. Daylight factor means the illuminance exceeding 25 percent of the replacement This part establishes an energy due to daylight on the indoor working value of the building. efficiency performance and sustainable plane divided by the illuminance New Federal building means any new design standard for the new Federal outdoors on an unobstructed horizontal building (including a complete low-rise residential buildings, for which plane. replacement of an existing building design for construction began on or after * * * * * from the foundation up) to be January 3, 2007 (except as otherwise EPA-designated product means a constructed by, or for the use of, any indicated: solar water heating, product listed by EPA as a designated Federal agency. Such term shall include sustainable design, and green building product under EPA’s comprehensive buildings built for the purpose of being certification requirements are applicable procurement guidelines established leased by a Federal agency, and 1 year after publication of the final rule), under Section 6002 of the Solid Waste privatized military housing. as required by section 305(a) of the Disposal Act. (42 U.S.C. 6962) Postconsumer material means a Energy Conservation and Production * * * * * material or finished product that has Act, as amended (42 U.S.C. 6834(a)). High radon potential means locations served its intended use and has been Additionally, this Part establishes that have a predicted average indoor discarded for disposal or recovery, certain requirements applicable to major radon screening level greater than 4 pCi/ having completed its life as a consumer renovations of Federal low-rise L (picocuries per liter). For locations item. buildings, as indicating in the regulatory within the United States, these are Potable water means water from text. For renovated buildings, those shown on the map at: http:// public drinking water systems or from requirements apply only to the portions www.epa.gov/radon/zonemap.html. natural freshwater sources such as lakes, of the building or building systems that streams, and aquifers where water from * * * * * are being renovated and to the extent Life-cycle cost means the total cost of such natural sources would or could that the scope of the renovation permits owning, operating and maintaining a meet drinking water standards. compliance with the applicable building, building systems, or building * * * * * requirements in this rule. Unaltered components, including any mechanical Rapidly renewable refers to materials portions of the building or building systems, service water heating systems and products made from plants that are systems are not required to comply with and electric power and lighting systems harvested within a 10-year cycle. this rule. located on the building site and To the extent practicable means 13. Section 435.2 is amended by: supporting the building over its useful wherever feasible, taking into a. Adding in alphabetical order, the consideration health and life safety, key definitions ‘‘ASHRAE,’’ ‘‘Biobased,’’ life (including its fuel and water, energy, labor, and replacement project design and function objectives, ‘‘Commissioning,’’ ‘‘Critical visual tasks,’’ agency mission, product or material ‘‘Daylight factor,’’ ‘‘EPA-designated components), determined on the basis of a systematic evaluation and comparison availability, net increases in life-cycle product,’’ ‘‘High radon potential,’’ ‘‘Major cost (if significant), and total funding renovation,’’ ‘‘Post consumer material,’’ of alternative building systems, except that in the case of leased buildings, the available. ‘‘Potable water,’’ ‘‘Rapidly renewable,’’ USDA-designated product means a life-cycle cost shall be calculated over ‘‘To the extent practicable’’ and ‘‘USDA- product listed by USDA as a designated designated product;’’ and the effective remaining term of the lease. Life-cycle cost-effective means that the product under USDA’s biobased b. Revising the definitions of ‘‘Life- procurement program established cycle cost,’’ Life-cycle cost-effective,’’ building, energy or water systems in the building, components of those energy or Section 9002 of the Farm Security and and ‘‘New Federal building.’’ Rural Investment Act of 2008. (7 U.S.C. The additions and revisions read as water systems, and conservation measures as defined in 10 CFR 436.11 8102) follows: 14. Add in § 435.4 a new paragraph in the proposed building or major (d) to read as follows: § 435.2 Definitions. renovation have a lower life-cycle cost ASHRAE means the American Society than the life-cycle costs of the § 435.4 Energy efficiency performance of Heating, Refrigerating and Air- corresponding systems and measures in standard. Conditioning Engineers. the baseline building, as described by 10 * * * * * * * * * * CFR 436.19, or has a positive estimated (d) Solar hot water. (1) All Federal Biobased means a commercial or net savings, as described by 10 CFR agencies shall design new Federal low- industrial product (other than food or 436.20; or has a savings-to-investment rise residential buildings, for which feed) that is composed, in whole or in ratio estimated to be greater than one, as design for construction began 1 year significant part, of biological products, described by 10 CFR 436.21; or has an after publication of the final rule, such including renewable agricultural adjusted internal rate of return, as that at least 30 percent of the hot water materials (e.g., plant, animal, and described by 10 CFR 436.22, that is demand is provided through the marine materials) and forestry materials. estimated to be greater than the FEMP installation of solar hot water heaters, to Commissioning means a quality- discount rate. the extent life-cycle cost-effective as focused process for enhancing the * * * * * compared to other reasonably available delivery of a project. The process Major renovation means changes to a technologies. focuses upon verifying and building that provide significant (2) Federal buildings undergoing a documenting that the facility and all of opportunities for substantial major renovation, for which design for its systems and assemblies are planned, improvement in energy efficiency. This renovation began 1 year after designed, installed, tested, operated, may include but is not limited to publication of the final rule, must and maintained to meet the owner’s or replacement of the HVAC system, the provide at least 30 percent of the hot occupant’s project requirements. lighting system, the building envelope, water demand for the portion of the Critical visual tasks means office/ and other components of the building building that is being renovated through classroom type work which involves that have a major impact on energy the installation of solar hot water

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heaters, to the extent life-cycle cost- to verify performance of building sunlight penetration) in 75 percent of all effective as compared to other components and systems and help space occupied in new buildings and reasonably available technologies. ensure that design requirements are met. major renovations for critical visual 15. Add § 435.6 to read as follows: Commissioning practices must include: tasks. (i) An experienced commissioning (ii) Federal agencies should provide § 435.6 Sustainable design principles for provider, automatic dimming controls or siting, design and construction. (ii) Inclusion of commissioning accessible manual lighting controls, and (a) This section applies to new requirements in construction appropriate glare control. Federal low-rise residential buildings documents, (7) Low-emitting materials. Federal and major renovations to Federal low- (iii) A commissioning plan, agencies must use materials and rise residential buildings for which (iv) Verification of the installation, products with low pollutant emissions, design for construction began 1 year performance, and operation of systems including composite wood products, after publication of the final rule. to be commissioned, and adhesives, sealants, interior paints and (b) All Federal agencies shall design (v) A commissioning report. finishes, carpet systems, and new Federal low-rise residential (f)(1) Renewable energy. Federal furnishings. buildings and major renovations to agencies must implement renewable (8) Materials. (i) Recycled content. Federal low-rise residential buildings to energy generation projects on agency Selection of construction materials and meet the requirements of paragraphs (e) property for agency use, when life-cycle products shall reflect a preference for and (f) of this section to the extent cost-effective. materials and products containing practicable, and paragraph (g) of this (2) Indoor water. Federal agencies recycled materials or made from section if: must employ strategies that in aggregate recycled materials such that the post- (1) The subject building is a public use a minimum of 20 percent less consumer recycled content, plus one building as defined in 40 U.S.C. 3301 potable water than the indoor water use half of the pre-consumer recycled and for which transmittal of a baseline calculated for the building. If content, shall constitute a minimum of prospectus to Congress is required baseline data is not available, the 10 percent, based on cost or under 40 U.S.C. 3307; or baseline for the building shall be replacement value, of the total materials (2) The cost of the building or major calculated from the Federal water use in the building project. To achieve the renovation is at least $2,500,000 (in indices issued by the DOE Federal 10 percent requirement, the following 2007 dollars, adjusted for inflation). Energy Management Program for a practices may be employed: (c) All Federal agencies shall design building of the same building type as (A) For product categories that are new Federal low-rise residential the proposed building. designated in EPA’s Comprehensive buildings other than those that meet the (i) Water meters must be installed to Procurement Guidelines (CPG), criteria in paragraph (b) of this section allow for the management of water use products meeting or exceeding EPA’s to comply with the requirements in during occupancy. recycled content recommendations shall paragraphs (f) of this section to the (ii) Harvested rainwater, treated be used. extent the requirements are life-cycle wastewater, and air conditioner (B) The reuse of lumber, masonry cost-effective and paragraph (g) of this condensate shall be used for nonpotable units, such as brick, tile, stone and section. use and potable use, but shall not be concrete block, conforming to the (d) The requirements of this section used to meet the 20 percent reduction requirements specified in the are not applicable to major renovations in potable water usage. International Building Code shall be that do not meet the criteria in (3) Outdoor water. Federal agencies recognized as recycled/recovered paragraph (b) of this section. must use water efficient landscape and content. (e)(1) Integrated design. Federal irrigation strategies, such as water reuse, (C) Utilize recycled-content agencies must use a planning and recycling, and the use of harvested landscaping materials (e.g., shredded design process that: rainwater, to reduce outdoor potable wood, landscape trimmings, compost, (i) Initiates and maintains an water consumption by a minimum of 50 crushed concrete). integrated project team as described on percent over the outdoor water baseline (ii) Biobased content. (A) Per Section the National Institute of Building calculated for the building. If baseline 9002 of the Farm Security and Rural Science ‘‘Whole Building Design Guide’’ data is not available, the baseline for the Investment Act for USDA designated in all stages of a project’s planning and building shall be calculated from the products, use products with the highest delivery; Federal water use indices issued by the content level per USDA’s biobased (ii) Integrates the use of OMB’s DOE Federal Energy Management content recommendations as specified Circular A–11, Section 7, Exhibit 300: Program for a building of the same in the USDA Biopreferred Program. ‘‘Capital Asset Plan and Business Case building type as the proposed building. (B) For other products, specify Summary’’; (4) Water-efficient products. Use of biobased products made from rapidly (iii) Establishes performance WaterSense labeled products, or renewable resources and certified specifications consistent with this Part products with comparable water sustainable wood products. for siting, energy, water, materials, and efficiency, for product categories labeled (iii) Environmentally preferable indoor environmental quality along by WaterSense is required. products. Federal agencies must use with other comprehensive design goals (5) Moisture control. Federal agencies products that have a lesser or reduced and ensures incorporation of these goals shall establish and implement a effect on human health and the throughout the design and life-cycle of moisture control strategy for controlling environment over their life-cycle when the building; and moisture flows and condensation to compared with competing products or (iv) Considers all stages of the prevent building damage, minimize services that serve the same purpose. building’s lifecycle, including mold contamination, and reduce health Federal agencies should consider the construction, occupancy, and risks related to moisture. number of standards and ecolabels are deconstruction. (6) Day lighting. (i) Federal agencies available in the marketplace to assist (2) Commissioning. Federal agencies must achieve a minimum daylight factor specifiers in making environmentally must employ commissioning practices of 2 percent (excluding all direct preferable decisions. Consult the ‘‘EPA

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Federal Green Construction Guide for 16. Add § 435.7 to read as follows: (1) Ensures compliance with— Specifiers’’ for recommendations. (i) The energy efficiency performance (iv) Waste and materials § 435.7 Water conservation. standards of this part; and management. (A) Buildings shall plan If water is used to achieve energy (ii) Water use requirements of this for recycling of specific materials, such efficiency, water conservation part; and as paper, metals, plastics, cardboard, technologies must be applied to the (iii) Sustainable design requirements and electronics (and associated extent practical that the technologies are of this part. products). life-cycle cost-effective. (2) Promotes the high performance (B) Adequate space, equipment, and 17. Revise § 435.8 to read as follows: sustainable building guidelines transport accommodations for recycling § 435.8 Life-cycle costing. referenced in E.O. 13423 ‘‘Strengthening must be included in the building design. For the purpose of this section, Federal Environmental, Energy, and (C) During a project’s planning stage, Transportation Management.’’ local recycling and salvage operations evaluation of whether compliance with a requirement is life-cycle cost-effective (c) Federal agencies may request DOE that could process site-related approval of internal certification construction and demolition materials shall be considered on the basis of individual requirements, not the entire processes, using certified professionals, must be identified. If such operations in lieu of certification by a system are available locally, materials must be rule. If synergies exist that make combinations of requirements life-cycle meeting the criteria in paragraph (a) of recycled or salvaged. this section. Requests for approval must (v) At least 50 percent of non- cost-effective where individual be sent to the Office of the Federal hazardous and non-radioactive requirements are not, then these Energy Management Program in the construction, demolition and land combination of requirements shall be DOE. Submissions should demonstrate clearing materials, excluding soil, must complied with. If requirements how the internal certification process be recycled or salvaged. containing numerical savings values are (vi) Ozone-depleting compounds. The not life-cycle cost-effective, the design would ensure compliance with all use of ozone-depleting compounds of the proposed building shall applicable regulations under this Part. during and after construction must be incorporate as much savings as is life- The Office of the Federal Energy eliminated where alternative cycle cost-effective. Management Program may request environmentally preferable products are 18. Add a new § 435.9 to read as additional information as necessary. available. follows: The Office of Federal Energy Management will make a determination (9) Siting. (i) The site selection for § 435.9 Green building certification. Federal building construction shall within 120 days of a completed comply with all applicable Federal (a) Green building certification submission. An agency may then rules, Executive Orders, and other system. If a new Federal building or employ the approved internal Federal actions governing Federal building undergoing a major certification process but must obtain environmental issues impacted by renovation, meeting the criteria in external certification by a system Federal building construction. § 435.6(b) for which design for meeting the criteria in paragraph (a) of (ii) Site selection must prioritize; construction began 1 year after this section for at least 5 percent of the (A) Building orientation to maximize publication of the final rule is to be total number of buildings certified energy efficiency of the building; certified under a green building annually by the agency. (B) Locations in central business certification system, the system under [FR Doc. 2010–12677 Filed 5–27–10; 8:45 am] which the building is certified must – districts and rural town center; BILLING CODE 6450–01–P (C) Sites well served by transit; (1) Have the ability for assessors and (D) Site design elements that ensure auditors to independently verify the safe and convenient pedestrian access; criteria and measurement metrics of the (E) Consideration of transit access and system; FEDERAL HOUSING FINANCE proximity to housing affordable to a (2) Be developed by a certification AGENCY wide range of Federal employees; organization that (F) Adaptive reuse or renovation of (i) Provides an opportunity for public 12 CFR Part 1281 buildings; comment on the system; and RIN 2590–AA16 (G) Avoiding development of (ii) Provides an opportunity for sensitive land resources (such as development and revision of the system Federal Home Loan Bank Housing greenfields and USDA Prime Farmland); through a consensus based process; Goals and (3) Be nationally recognized within (H) Evaluation of parking the building industry; AGENCY: Federal Housing Finance management strategies. (4) Be subject to periodic evaluation Agency. (g)(1) Ventilation and thermal and assessment of the environmental ACTION: Notice of proposed rulemaking; comfort. Federal agencies shall design and energy benefits that result under the request for comment. new buildings and major renovations to rating system; and meet the requirements of ASHRAE 55 (5) Include a verification system for SUMMARY: Section 1205 of the Housing (incorporated by reference; see § 435.3), post occupancy assessment of the rated and Economic Recovery Act of 2008 including continuous humidity control buildings to periodically demonstrate (HERA) amended the Federal Home within established ranges per climate continued environmental benefits and Loan Bank Act (Bank Act) by adding a zone, and ASHRAE 62.2, (incorporated energy savings. new section 10C(a) that requires the by reference; see § 435.3). (b) Certification level. If a new Federal Director of the Federal Housing Finance (2) Radon. New Federal low-rise building or Federal building undergoing Agency (FHFA) to establish housing residential buildings and major a major renovation meeting either of the goals with respect to the Federal Home renovations to such buildings in two criteria in § 435.6(b) is to be Loan Banks’ (Banks) purchase of locations with a high radon potential certified under a green building mortgages, if any. Section 10C(b) shall comply with ASTM 1465–08a certification system, the building must provides that the Banks’ housing goals (incorporated by reference; see § 435.3). be certified to a level that – are to be consistent with the housing

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goals established by FHFA for the • Hand Delivered/Courier: The hand independent agency of the Federal Federal National Mortgage Association delivery address is: Alfred M. Pollard, Government. HERA transferred the (Fannie Mae) and the Federal Home General Counsel, Attention: Comments/ safety and soundness supervisory and Loan Mortgage Corporation (Freddie RIN 2590–AA16, Federal Housing oversight responsibilities over the Mac) (collectively, the Enterprises) Finance Agency, Fourth Floor, 1700 G Enterprises and the Banks from the under sections 1331 through 1334 of the Street, NW., Washington, DC 20552. The Office of Federal Housing Enterprise Federal Housing Enterprises Financial package should be logged at the Guard Oversight (OFHEO) and the Federal Safety and Soundness Act of 1992 Desk, First Floor, on business days Housing Finance Board (FHFB), (Safety and Soundness Act), as amended between 9 a.m. and 5 p.m. respectively, to FHFA. HERA also by HERA, taking into consideration the • U.S. Mail, United Parcel Service, transferred the charter compliance unique mission and ownership structure Federal Express, or Other Mail Service: authority and responsibility to establish, of the Banks. Section 10C(c) further The mailing address for comments is: monitor and enforce the housing goals provides that, to facilitate an orderly Alfred M. Pollard, General Counsel, for the Enterprises from the Department transition, the Director shall establish Attention: Comments/RIN 2590–AA16, of Housing and Urban Development interim target housing goals for the Federal Housing Finance Agency, (HUD) to FHFA. FHFA is responsible for Banks for a transition period extending Fourth Floor, 1700 G Street, NW., ensuring that the Enterprises and the through 2010. Section 10C(d) also Washington, DC 20552. Banks operate in a safe and sound extends the monitoring and enforcement FOR FURTHER INFORMATION CONTACT: manner and carry out their public requirements of section 1336 of the Nelson Hernandez, Senior Associate policy missions. The Enterprises and Safety and Soundness Act to the Banks Director, (202) 408–2993, Charles E. the Banks continue to operate under in the same manner and to the same McLean, Associate Director, (202) 408– regulations promulgated by OFHEO and extent as those requirements apply to 2537, or Rafe R. Ellison, Senior Program FHFB, respectively, until such the Enterprises. Analyst, (202) 408–2968, Office of regulations are superseded by To implement section 10C, FHFA is Housing and Community Investment, regulations issued by FHFA. See HERA issuing and seeking comments on a 1625 Eye Street, NW., Washington, DC at sections 1302 and 1312, 122 Stat. proposed rule that would establish three 20006. (These are not toll-free numbers.) 2795 and 2798; 12 U.S.C. 4511 note. single-family owner-occupied purchase For legal matters, contact Kevin B. Statutory and Regulatory Background money mortgage goals and one single- Sheehan, Attorney, (202) 414–8952, or family refinancing mortgage goal Sharon Like, Associate General Counsel, 1. Federal Home Loan Bank System applicable to the Banks’ purchases of (202) 414–8950, Office of General The Federal Home Loan Bank System single-family owner-occupied Counsel, Federal Housing Finance (System) was created by the Bank Act to mortgages, if any, under their Acquired Agency, Fourth Floor, 1700 G Street, support mortgage lending and related Member Assets (AMA) programs, NW., Washington, DC 20552. (These are community investment. See 12 U.S.C. consistent with FHFA’s proposed not toll-free numbers.) The telephone 1421 et seq. The System is composed of single-family housing goals for the number for the Telecommunications 12 Banks with more than 8,000 member Enterprises. A Bank would be subject to Device for the Hearing Impaired is (800) financial institutions, and the System’s the proposed housing goals if its AMA- 877–8339. fiscal agent, the Office of Finance. The approved mortgage purchases in a given SUPPLEMENTARY INFORMATION: Banks fulfill their statutory mission year exceed a volume threshold of $2.5 I. Comments primarily through providing secured billion. Other provisions in the loans (called advances) to their proposed rule would be consistent with FHFA invites comments on all aspects members. The Bank Act provides the comparable provisions applicable to the of the proposed rule, and will revise the Banks explicit authority to make proposed Enterprise housing goals to language of the proposed rule as secured advances. 12 U.S.C. 1430(a). the extent appropriate, taking into appropriate after taking all comments Advances provide members with a account the nature of the Banks’ AMA into consideration. Copies of all source of funding for mortgages and programs and the Banks’ unique comments will be posted without asset-liability management, liquidity for mission and ownership structure. change, including any personal a member’s short-term needs, and DATES: Written comments must be information you provide, such as your additional funds for housing finance received on or before July 12, 2010. name and address, on the FHFA Internet and community investment. Advances ADDRESSES: You may submit your Web site at http://www.fhfa.gov. In are collateralized primarily by comments, identified by regulatory addition, copies of all comments residential mortgage loans and information number (RIN) 2590–AA16, received will be available for government and agency securities. 12 by any one of the following methods: examination by the public on business U.S.C. 1430(a)(3). Community financial • E-mail: Comments to Alfred M. days between the hours of 10 a.m. and institutions (i.e., members with average Pollard, General Counsel, may be sent 3 p.m., at the Federal Housing Finance total assets of less than $1 billion (as by e-mail to [email protected]. Agency, Fourth Floor, 1700 G Street, adjusted annually for inflation)) may Please include ‘‘RIN 2590–AA16’’ in the NW., Washington, DC 20552. To make also pledge small business, small subject line of the message. an appointment to inspect comments, agriculture or community development • Federal eRulemaking Portal: http:// please call the Office of General Counsel loans as collateral for advances. 12 www.regulations.gov. Follow the at (202) 414–6924. U.S.C. 1430(a)(3)(E). instructions for submitting comments. If II. Background Consolidated obligations, consisting you submit your comment to the of bonds and discount notes, are the Federal eRulemaking Portal, please also A. Establishment of FHFA principal source for the Banks to fund send it by e-mail to FHFA at Effective July 30, 2008, HERA, advances and investments. The Office of [email protected] to ensure Division A, Public Law 110–289, 122 Finance issues all consolidated timely receipt by the Agency. Please Stat. 2654 (2008) (codified at 12 U.S.C. obligations on behalf of the 12 Banks. include ‘‘RIN 2590–AA16’’ in the subject 4501 et seq.), amended the Safety and Although each Bank is primarily liable line of the message. Soundness Act to create FHFA as an for the portion of consolidated

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obligations corresponding to the that authorize the Banks to purchase requires careful attention to interest rate proceeds received by that Bank, each only eligible single-family, fixed-rate risk management in order to match the Bank is also jointly and severally liable mortgages, including manufactured duration of assets and liabilities and to with the other eleven Banks for the housing loans, from participating adjust for loan prepayments. The Banks payment of principal of, and interest on, financial institution members (PFIs). must also competitively price their all consolidated obligations. See 12 CFR The Banks are not approved to purchase product in the market without eroding 966.9. any other types of mortgages under the their own financial interest. Given these AMA programs, including mortgages challenges and in light of recent interest 2. Bank AMA Programs secured by multifamily properties. In rate and earnings volatility, several In July 2000, FHFB adopted a final operation, the Banks have limited their Banks have scaled down their purchases regulation authorizing the Banks to AMA programs to purchasing of AMA and returned to their core establish Acquired Member Assets conforming, conventional and products. After peaking in 2003, when (AMA) programs. See 12 CFR part 955. government-insured or -guaranteed the Banks purchased over $91.2 billion A Bank may participate in an AMA fixed-rate whole first mortgages on in AMA, annual AMA purchases have program at its discretion; FHFA does single-family residential property with steadily declined to an annualized not have the authority to compel a Bank maturities ranging from 5–30 years. average of about $6.7 billion during the to engage in any mortgage purchase Banks have also purchased period between 2006 and 2009. Several activities. Each Bank must receive participations in AMA-approved loan Banks either have stopped accepting approval from FHFA pursuant to the pools after the original Bank acquired additional master commitments to requirements for new business activities the loans. As of March 31, 2010, the purchase AMA from their members or in order to establish an AMA program. combined value of the AMA mortgage no longer accept delivery. In 2007, 2008 See 12 CFR part 980. A majority of the loans in the 12 Banks’ portfolios was and 2009, the principal pay-down and Banks have implemented AMA $69 billion, representing approximately maturities of AMA held for portfolio programs pursuant to the AMA approval seven percent of the Banks’ total were greater than purchases and authority. combined assets. In contrast, the Banks’ funding of new loans held for portfolio.3 In order for a Bank to acquire a outstanding advances, their primary mortgage loan under an AMA program, business line, totaled $572 billion as of 3. Bank Housing Goals Statutory the loan must meet the requirements set March 31, 2010, representing 59 percent Provisions forth under a three-part test established of the Banks’ total combined assets.2 Section 10C(a) of the Bank Act, as by the regulation. The three-part test The MPF and MPP programs are amended by HERA, requires the consists of: a loan type requirement; a designed such that the Banks manage Director of FHFA to ‘‘establish housing member or housing associate nexus the interest-rate risk and the PFI goals with respect to the purchase of requirement; and a credit risk-sharing assumes a substantial portion of the mortgages, if any, by the [Banks],’’ requirement. 12 CFR 955.2. The AMA risks associated with originating the which ‘‘shall be consistent with the regulation generally authorizes the mortgage, particularly the credit risk. goals established under sections 1331 Banks to purchase conforming whole The AMA regulation requires that PFIs through 1334 of the [Safety and loans on single-family residential real provide credit enhancement to give the Soundness Act, as amended].’’ 12 U.S.C. property not more than 90 days mortgages the Banks purchase the credit 1430c(a). Section 10C(b) provides that, delinquent. In addition, the Banks are quality equivalent to an instrument in establishing the goals for the Banks, authorized to purchase conforming rated at least investment grade (the ‘‘the Director shall consider the unique whole loans on single-family residential fourth highest credit rating category or mission and ownership structure of the real property regardless of delinquency triple-B), although the approved AMA [Banks].’’ 12 U.S.C. 1430c(b). In status if the loan is insured or programs require PFIs to enhance the addition, section 10C(c) provides that, guaranteed by the U.S. government, loans to the second highest investment ‘‘to facilitate an orderly transition,’’ the although such loans are not eligible to grade (double-A). 12 CFR 955.3. The PFI Director shall establish interim target be counted toward the Enterprises’ may provide this credit enhancement goals for the purchase of mortgages by housing goals, as provided in HERA.1 through various means, such as the Banks for the calendar years 2009 The Banks acquire AMA from their establishing a risk account to cover and 2010. 12 U.S.C. 1430c(c). Section participating members through either a losses in excess of a borrower’s equity 10C(d) provides that the monitoring and purchase or funding transaction. The and primary mortgage insurance on enforcement requirements of section Banks are not authorized under the mortgages purchased by a Bank, 1336 of the Safety and Soundness Act AMA programs to securitize the accepting direct liability to pay credit shall apply to the Banks in the same mortgages they purchase. losses up to a specified amount, or manner and to the same extent as they To date, FHFA has approved two entering into a contractual obligation to apply to the Enterprises. 12 U.S.C. AMA programs—the Mortgage provide supplemental mortgage 1430c(d). Section 10C(e) requires the Partnership Finance (MPF) program and guaranty insurance. Director to annually report to Congress the Mortgage Purchase Program (MPP)— As previously noted, advances remain on the performance of the Banks in the core business activity of the Banks meeting the housing goals under section 1 See 12 U.S.C. 4562. For that reason, the and a principal means by which they 10C. 12 U.S.C. 1430c(e). proposed rule would provide that such loans not be fulfill their mission. Participation in an eligible to be counted toward the Banks’ housing Sections 1331 through 1333 of the goals either. The AMA regulation also authorizes AMA program is elective. The Safety and Soundness Act, as amended the Banks to purchase other real-estate-related acquisition of AMA has presented by HERA, require the Director of FHFA collateral, including: second liens and commercial certain risk management challenges for to establish new housing goals effective real estate loans; small business, small farm and some Banks. The AMA are long-term, small agri-business loans; whole loans secured by for 2010 and beyond for the Enterprises. manufactured housing regardless of whether the fixed-rate loans and the portfolio housing qualifies as residential real property, and 3 See ‘‘Federal Home Loan Banks Combined state and local housing finance agency bonds, 2 See ‘‘Federal Home Loan Banks First Quarter Financial Report for 2008’’ at 78–80, and ‘‘Federal subject to prior new business activity approval by 2010 Combined Financial Report, Combined Home Loan Banks Combined Financial Report for FHFA under 12 CFR part 980. See 12 CFR 955.2(a). Statement of Condition,’’ at 4. 2009’’ at 55–56.

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The new Enterprise housing goals to members, affordable housing and mortgage portfolios over time. The include four goals for conventional community development mission, Banks are restricted to purchasing loans conforming single-family owner- capital structure, and joint and several from their members, most of which are occupied housing, one multifamily liability, whenever promulgating regulated depositories. By contrast, the special affordable housing goal, and one regulations that affect the Banks. The Enterprises have access to a broad, multifamily special affordable housing Director may also consider any other nationwide network of financial subgoal. See 12 U.S.C. 4561, 4563(a)(2). differences that are deemed appropriate. institutions from which they purchase The single-family housing goals target In preparing the proposed rule, the mortgages. Also, unlike the Banks, for purchase money mortgages for low- Director considered the differences which participation in the AMA is an income families,4 families that reside in between the Banks and the Enterprises elective activity, the fundamental low-income areas,5 and very low- as they relate to the above factors and statutory purpose of the Enterprises is to income families,6 and refinancing determined that the rule is appropriate. bring stability in the secondary market mortgages for low-income families. See As described below, FHFA is proposing for residential mortgages by purchasing 12 U.S.C. 4562. The multifamily special significant differences between the and making commitments to purchase affordable housing goal targets Enterprise housing goals and the Bank residential mortgages. See 12 U.S.C. multifamily housing affordable to low- housing goals—including establishing a 1451 note; 12 U.S.C. 1716. income families, and the multifamily volume threshold to avoid adverse The Banks’ and Enterprises’ different special affordable housing subgoal impact on small PFIs—that recognize ownership structures and associated targets multifamily housing affordable the significant differences between the statutory restrictions in the Bank Act to very low-income families. See 12 Banks’ businesses and purposes and and the Federal National Mortgage U.S.C. 4563. In a separate rulemaking in those of the Enterprises. the Federal Register, FHFA has issued Each Bank is a cooperative owned by Association Charter Act and the Federal and sought comments on proposed new financial institution members that act as Home Loan Mortgage Corporation Act housing goals for the Enterprises for both owners and customers of the (together, the Charter Acts), 2010 and 2011 pursuant to the cooperative. Members, as owners, are respectively, have a significant impact requirements of sections 1331 through entitled to receive shares of the on their respective mortgage purchase 1333 of the Safety and Soundness Act, cooperative’s earnings and access to the activities. The Enterprises’ mortgage as amended. 75 FR 9034 (Feb. 26, 2010). cooperative’s products and services, purchase activities are substantially greater than that of the Banks. In 4. Banks’ and Enterprises’ Differences including the AMA programs. A Bank is authorized to serve only members of its calendar year 2009, the Banks’ Section 1201 of HERA, 12 U.S.C. cooperative and, as discussed above, its combined number of single-family 4513(f), requires the Director of FHFA to primary business is providing advances mortgage purchases was slightly over consider the differences between the to its members. 48,000, while Fannie Mae purchased Banks and the Enterprises with respect Fannie Mae and Freddie Mac have approximately 3.51 million single- to the Banks’ cooperative ownership been owned by investors through their family mortgages and Freddie Mac structure, mission of providing liquidity holdings of preferred or common stock purchased approximately 2.42 million shares since 1968 and 1989, single-family mortgages. The disparity 4 ‘‘Low-income’’ is defined as income not in between the Banks’ and Enterprises’ excess of 80 percent of area median income. See 12 respectively. An Enterprise’s primary U.S.C. 4502(14). business is securitizing mortgages mortgage purchase businesses was great 5 ‘‘Families in low-income areas’’ is defined to originated by financial institutions, and even during the peak years of the AMA include families living in census tracts where the guaranteeing the timely payment of programs. In 2003, the Banks purchased median income does not exceed 80 percent of the approximately 606,000 single-family area median income and families with incomes not principal and interest on the mortgage- in excess of the area median income that either live backed securities (MBS). The mortgages, which was only 4.3 percent in a minority census tract or in a designated disaster Enterprises also purchase mortgages for of the approximately 14.02 million area. See 12 U.S.C. 4502(28). their mortgage portfolios. FHFA has single-family mortgages purchased by 6 ‘‘Very low-income’’ is defined as income not in the Enterprises in that year (see Figure excess of 50 percent of area median income. See 12 instructed the Enterprises to U.S.C. 4502(24). significantly reduce the size of their 1).

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III. The Proposed Rule target housing goals in the third quarter gain information on whether the The proposed rule would define of 2010 and establishing new housing housing goals will require the Banks to housing goals for the Banks in terms goals in the fourth quarter of 2010 or make significant changes to their MPF similar to the single-family housing first quarter of 2011. The Banks’ unique or MPP programs. ownership structure and mission is such goals for the Enterprises. Separate goals V. Market-Based Housing Goals would be established for AMA- that FHFA needed to add criteria to the approved mortgages on owner-occupied Bank housing goals that are not The proposed rule would establish single-family housing. The goals for necessary for those of the Enterprises, market-based housing goals for the purchase money mortgages would and FHFA required additional time to Banks in a manner largely consistent separately measure performance on develop these criteria. In addition, with the proposed market-based purchase money mortgages for low- establishing interim target housing goals housing goals for the Enterprises. The income families, for families in low- for 2009 and 2010 and then replacing proposed rule would measure the income areas, and for very low-income them with housing goals for 2011 that Banks’ single-family housing goals families. The goal for refinancing differ significantly could create performance relative to the actual goals- mortgages would measure performance administrative and monitoring qualifying shares of the primary on refinancing mortgages for low- challenges for the Banks. mortgage market during the year in their income families. Pursuant to the requirements of districts. FHFA believes that the HERA, a Bank that fails to meet a advantages of comparing the Bank’s IV. Applicability of Bank Housing housing goal in 2010 and beyond would performance to actual market Goals to 2010 and Beyond be required to submit a housing plan if performance outweigh the HERA requires FHFA to establish FHFA determined that the housing goal disadvantages. A more detailed 2009 and 2010 interim target housing was feasible for that year and that a discussion of the proposed market- goals for the Banks that facilitate an housing plan was appropriate. See 12 based approach and its legal orderly transition and are consistent U.S.C. 4566. FHFA appreciates that a justification is included in the proposal with those of the Enterprises. In order Bank’s capacity to meet the housing for the new Enterprise housing goals. to facilitate an orderly transition, FHFA goals is affected by when the housing See 75 FR at 9035–9036 (Feb. 26, 2010). is proposing to establish housing goals goals requirements are finalized and A disadvantage of this approach is for 2010 and beyond. The Banks’ that a Bank may have difficulty meeting that public information on the goals- administrative and monitoring a housing goal for 2010. For this reason, qualifying shares of the single-family challenges would be reduced by when determining the feasibility of the primary mortgage market is not enabling the Banks to establish policies 2010 housing goals, FHFA will take into available until the release of Home and procedures to meet the housing consideration whether a Bank had the Mortgage Disclosure Act (HMDA) data goals requirements with the knowledge capacity to adjust its AMA program in in late summer of the following year. that these requirements will not be an orderly manner to meet a housing However, FHFA will conduct a monthly changed the following year. Further, goal and whether a Bank had sufficient survey of single-family mortgage FHFA believes this approach would opportunity to meet a housing goal. originations pursuant to section 1324(c) facilitate a more orderly transition to Additionally, FHFA will study the of the Safety and Soundness Act, as housing goals than the alternative, Banks’ performance in 2010 and the amended by HERA, and make data which would entail establishing interim operations of their AMA programs to collected under that survey available to

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the public. 12 U.S.C. 4544(c). Release of have a significant impact on Enterprise housing goals. FHFA has that data is likely to provide detailed determining the goals-qualifying share proposed to establish benchmark levels information on home mortgage lending in districts such as the Des Moines and for the Enterprise housing goals based activity more frequently and in a Topeka Bank districts with a large on FHFA’s national market size timelier manner than does the public number of such members. estimates. See 75 FR at 9037–9051 (Feb. release of the data collected under FHFA also considered limiting the 26, 2010). FHFA also considered the HMDA. FHFA will use the survey data market to those members that sold possibility of setting benchmark levels to supplement HMDA data in its AMA-approved mortgages to their based on district-level market size monitoring of Bank housing goals Banks in a given year. However, the estimates but concluded that the market performance. issues with measuring the market based sizes could not be reliably estimated in Proposed § 1281.11 would establish on all mortgages originated by a Bank’s advance. Bank members with large single-family housing goals that include members that are discussed above residential lending businesses often an assessment of a Bank’s performance would also exist for this approach. originate mortgages outside the states as compared to the actual share of the There could also be variations in the that comprise the district of the Bank of market that fits the criteria for each goal. goals-qualifying share resulting from which they are a member. For this FHFA is proposing to calculate the changes in member participation in the reason, the geographic market being actual goals-qualifying shares of the AMA program. Such variations would served by the Banks is not limited to district-level primary mortgage market make it difficult for the Banks to areas within their respective districts. In during a year using all mortgages establish policies and procedures for addition, large Bank members have originated in the geographic boundaries meeting the housing goals requirements. affiliates that may be members of of each Bank district (meaning that the FHFA also considered assigning different Banks, which makes it possible properties securing the mortgages are weights to each AMA-approved for these affiliates to sell mortgages located in the district), including mortgage purchased by a Bank to reflect originated in one Bank district to mortgages originated both by members the variations in the share of goals- another Bank. For these reasons, FHFA and non-members. A Bank would meet qualifying mortgages in districts. This is not proposing to set benchmarks for a housing goal if its annual performance approach would assign more weight to the Banks. meets or exceeds the actual share of the a mortgage purchase in a district where FHFA seeks comment on whether it market in that district that fits the the goals-qualifying share of the market would be appropriate to establish criteria for a particular housing goal for was lower, so that the Banks in such benchmark levels as a means of that year. A Bank would fail to meet a districts would not be disadvantaged. measuring the Banks’ housing goals goal if it falls short of the actual market FHFA concluded that such an approach performance, in addition to measuring share for that goal in the year. All would be impractical, because FHFA performance based on a Bank’s actual mortgages purchased by a Bank that would not be able to produce the share of goal-qualifying mortgages meet the requirements of the proposed weights until district-level shares of relative to its district-level market share, regulation would count toward the goals-qualifying mortgages were known. and if so, whether it would be Bank’s goal performance, regardless of As a result, the Banks would not have appropriate to set benchmark levels for where the mortgages are located; but the an opportunity to modify their mortgage the Bank housing goals equal to the market share against which the Bank’s purchase activities in response to the benchmark levels for the Enterprise performance would be evaluated would weighting values. Such a mortgage- housing goals. See 75 FR at 9051 (Feb. be the market share of mortgages located weighting approach could also lead a 26, 2010). in the district as described above. The Bank to increase its mortgage purchase VI. Volume Threshold housing goals would not apply until an activities outside its district in a manner individual Bank reached the dollar that could adversely impact members The proposed rule would establish a volume threshold. that operate only within its district. The dollar volume threshold of $2.5 billion FHFA is proposing this approach after mortgage-weighting approach would that a Bank must exceed before it is considering several alternatives. increase the complexity of calculating subject to the housing goals. The Because Banks can only purchase AMA- housing goals performance, thus making threshold is designed to take into approved mortgages from their the process less transparent and consideration the Banks’ unique members, and because Banks are potentially more subjective. mission and ownership structure and permitted to, and often do, purchase FHFA also considered proposing the the current status of the AMA programs. AMA-approved mortgages originated inclusion of a benchmark level for each Several Banks that continue to outside of their districts, defining a housing goal to measure a Bank’s participate in the AMA do so Bank’s mortgage market based on loans performance. Specifically, a Bank would principally as a service to their originated within the district does not meet a housing goal if its annual members. The large majority of completely reflect the market a Bank performance met the benchmark level or members participating in the AMA are serves. To address this, FHFA the actual share of the market that fits small asset size institutions. Since the considered defining the district-level the criteria for a particular housing goal inception of the AMA programs, mortgage market as those mortgages for that year. A Bank would fail to meet approximately 88 percent of PFIs that originated by each Bank’s members, a goal if it fell short of both the sold mortgages to the Banks had total regardless of the location of the property benchmark level for that goal and the assets of under $1 billion. From January securing the mortgage. However, the actual market share for that goal in the 1, 2009 to June 30, 2009, the percentage majority of members have never sold year. Benchmark levels for performance was even higher at 93 percent. Faced mortgages to a Bank, and therefore, this could provide more certainty for the with risk management requirements, approach would not accurately reflect Banks in establishing strategies for monitoring for compliance, and the market served by a Bank. meeting the housing goals. reporting of achievement on the housing Additionally, smaller members and If benchmark levels were adopted for goals, a Bank with a small AMA nonmetropolitan members are not the Bank housing goals, FHFA would program might elect to discontinue subject to the data reporting set the benchmark levels equal to the offering an AMA product to its requirements of HMDA, which could benchmark levels for the corresponding members. Discontinuance of an AMA

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program could adversely impact PFIs, To establish the proposed volume FHFA considered the volume of such as those in rural areas, that may threshold, FHFA used 2008 HMDA mortgages purchased by the Banks have limited or no access to the mortgage origination data since these during the period when the Banks had secondary market because of the higher data are the most reliable and accurate their largest presence in the national per-mortgage sales cost associated with mortgage data available to FHFA at this market, which was from 2002 to 2004. delivering a relatively small number of time. Using these data, FHFA calculated During this period, seven Banks in 2002, mortgages to purchasers, or the inability the total unpaid principal balance (UPB) eight Banks in 2003 and four Banks in of these PFIs to meet purchasers’ of conforming, first lien mortgages 2004 had annual volume of AMA- mortgage servicing requirements. secured by owner-occupied, single- approved mortgages greater than $2.5 FHFA is proposing to establish a family residences (mortgages for home billion and would have been subject to volume threshold that would need to be improvement and Home Ownership the housing goals. A significant met before a Bank would be subject to Equity Protection Act (HOEPA)) percentage of Banks’ annual volume of the proposed housing goals. The volume mortgages were excluded to be AMA-approved mortgages exceeded threshold is intended to ensure that consistent with the market estimate $5.0 billion in 2002 and 2003: four Banks with significant AMA volume in approach for the Enterprise housing any year would be subject to the goals), which equaled $986 billion Banks in 2002 and seven Banks in 2003. housing goals, while Banks with a (approximately $1.0 trillion). FHFA is (See Table 1). Given this, FHFA relatively low annual volume of proposing that the volume threshold considered proposing to set the volume purchases of AMA-approved mortgages, should be equal to approximately 0.25 threshold at $5.0 billion. The proposed i.e., $2.5 billion or less, can continue to percent of the market, i.e., $2.5 billion. volume threshold of $2.5 billion would serve all PFIs without being subject to Assuming the average UPB of the be mid-way between the higher volume the housing goals. FHFA believes it is mortgages a Bank purchases equals threshold and housing goals that would important that the housing goal mission $200,000, a Bank would need to apply without regard to the volume of objective of expanding access to purchase only 12,500 mortgages in a mortgages purchased by the Bank. mortgage finance to low-income families given year to meet the volume FHFA requests comments on whether a and families in low-income areas be threshold. volume threshold should apply, balanced against the Banks’ need to The proposed volume threshold of whether the proposed threshold of $2.5 provide liquidity to small members and $2.5 billion would be reasonable in light billion is appropriate, and whether a the communities they serve. of the history of the AMA program. higher or lower threshold should apply.

FHFA considered proposing a volume members should be excluded, and raised by FHFB in the May 2000 threshold that would exclude mortgages whether affiliates should be considered proposed rulemaking for the AMA acquired from small members when in applying such criteria. regulation. In that proposed rule, FHFB calculating a Bank’s annual volume of In developing the proposed rule, decided to defer establishing housing AMA-approved mortgages for purposes FHFA also considered other approaches goals until ‘‘* * * such time as the of the volume threshold. If small for establishing volume thresholds for conventional residential mortgage members were excluded for purposes of the Bank housing goals. FHFA programs of the Banks, in the aggregate, the volume threshold, FHFA would considered a district market share have achieved a size and scope establish criteria for determining which approach that would apply housing indicative of a mature program. * * *’’ members should be excluded, such as goals to a Bank if its purchases of AMA- See 65 FR 25676, 25685 (May 3, 2000). excluding members with total assets of approved mortgages exceeded one As an example of a ‘‘mature program,’’ less than $1.0 billion. An alternative percent of all mortgages originated in its FHFB proposed annual aggregated would be to exclude members that district. The rationale behind the acquisition volume for the System of at originate a small number of mortgages, district market share approach was that least 100,000 loans or $10 billion, which or members that are not required to a Bank would have a material impact on FHFB considered to be of national submit HMDA data to their primary the mortgage market serving its district scope. FHFB also discussed a volume regulator. FHFA requests comments on if it purchased at least one percent of threshold of 75,000 mortgages acquired, whether any of these alternatives would the mortgages originated in its district. so long as seven Banks accounted for at be appropriate, what criteria would be FHFA also considered a dollar and least 10 percent of the AMA appropriate for determining which volume loan approach, which was first acquisitions volume for a given year.

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FHFA also considered the feasibility Emergency Management Agency extended.’’ 8 To accommodate the Banks’ of adopting a volume threshold based (FEMA), exceeds $1,000 per household business planning requirements, for on the percentage of AMA-approved for that census tract. purposes of the low-income areas mortgages purchased to Bank assets. For Definition of ‘‘mortgage.’’ The housing goal, the proposed rule would example, a Bank would be subject to definition of ‘‘mortgage’’ would not treat a designated disaster area as housing goals if its purchases of AMA- include personal property manufactured effective beginning no later than January approved mortgages exceeded 10 housing loans, pending further review 1 of the year following the FEMA percent of the Bank’s assets. FHFA of the appropriate treatment of such designation and continuing through considered such an approach because at loans under the Enterprise and Bank December 31 of the third full calendar some level of annual mortgage housing goals. year following the FEMA designation. If purchases, a Bank is no longer simply Designated disaster areas. The data are available in a particular case to providing a service to its members, but definition of ‘‘families in low-income support treatment as a designated is engaging in a profitable line of areas’’ includes families with incomes at disaster area from an earlier date, FHFA business to augment its primary line of or below 100 percent of AMI who reside may provide for such treatment. FHFA welcomes comments on the business—advances to its members. At in ‘‘designated disaster areas.’’ The proposed definitions in § 1281.1. such a point, it would appear to be proposed rule would define ‘‘designated reasonable to also apply housing goals disaster areas’’ as areas at the census B. Housing Goals—Proposed §§ 1281.10 to this line of business. tract level and include only census and 1281.11 FHFA requests comments on the tracts in counties approved for volume threshold alternatives discussed General. Proposed § 1281.10 provides individual assistance within the an overview of the contents of this above and on any other alternatives that declared major disaster area where the might be used. subpart. Although the final rule average real property damage severity, establishing the new housing goals for VII. Analysis of Proposed Rule as reported by FEMA, exceeds $1,000 the Banks will not be published for per household for that census tract. A. Definitions—Proposed § 1281.1 effect until later in 2010, FHFA will Disaster areas are declared when an evaluate performance under the housing Proposed § 1281.1 would set forth area is adversely affected by some goals established for 2010 on a calendar definitions applicable to the Bank unforeseen event. However, not all year basis. housing goals provisions. A number of disasters impact housing to the same Volume Threshold. Proposed the definitions are the same as those degree, and the severity of the impact § 1281.11(a) would establish a volume applicable to the Enterprises for their varies within the declared area. threshold that would trigger application proposed new housing goals, and other Presidential Major Disaster Declarations of the housing goals to a Bank. definitions have been modified to reflect are defined by FEMA at the county level Specifically, a Bank that in a calendar their applicability under the AMA in the area affected by the major disaster year purchased AMA-approved programs. In order to maintain and can be declared to be eligible for mortgages with a total UPB greater than consistency between the Enterprise public assistance, individual assistance $2.5 billion would be subject to the housing goals and the Bank housing or both. Public assistance is available to housing goals for that year. goals where feasible, FHFA will local governments for the repair, Market-Based Housing Goals. consider public comments on the replacement or clean-up of public Proposed § 1281.11(b) would provide definitions proposed in the Enterprise infrastructure. Individual assistance is that compliance with a housing goal housing goals and any resulting changes broken down further into two would be measured by comparing a to the Enterprise housing goals in categories, housing needs and ‘‘other Bank’s performance with the actual determining whether conforming than housing needs.’’ 7 Housing needs share of the market in the Bank’s changes are needed in the Bank housing include repair, replacement and district. Proposed § 1281.11(b) would goals. See 75 FR 9034 (Feb. 26, 2010). construction of homeowner residences. establish criteria for determining the Definition of ‘‘families in low-income The proposed rule would limit the size of the market for each Bank district areas.’’ The definition of ‘‘families in definition of ‘‘designated disaster areas’’ based on HMDA data on mortgages low-income areas’’ includes families to those counties eligible for individual secured by property located in that Bank with incomes at or below 100 percent of assistance, and it would establish a district. The criteria for establishing the AMI who reside in ‘‘minority census minimum average real property damage size of the market reflect the types of tracts,’’ which is defined by HERA to severity. mortgages that would be counted for mean a census tract that has a minority For purposes of complying with the purposes of the housing goals and that population of at least 30 percent and a Community Reinvestment Act (CRA), would typically be eligible for purchase median family income of less than 100 regulators have made the determination by a Bank. percent of AMI. 12 U.S.C. 4502(29). that ‘‘[e]xaminers will consider Bank Housing Goals. Proposed In addition, the definition of ‘‘families institution activities related to disaster § 1281.11(c) through 1281.11(f) would in low-income areas’’ includes families recovery that revitalize or stabilize a establish four single-family housing with incomes at or below 100 percent of designated disaster area for 36 months goals applicable to any Bank that met AMI who reside in ‘‘designated disaster following the date of designation. Where the volume threshold in a particular areas.’’ Consistent with the proposed there is a demonstrable community year. Goals would be established for definition for the new Enterprise need to extend the period for purchase money mortgages for low- housing goals, the proposed rule would recognizing revitalization or income families, for families in low- define ‘‘designated disaster areas’’ as stabilization activities in a particular income areas, and for very low-income areas at the census tract level and disaster area to assist in long-term include only census tracts in counties recovery efforts, this time period may be 8 The Department of the Treasury, the Federal approved for individual assistance Reserve Board and the Federal Deposit Insurance Corporation, Community Reinvestment Act; within the declared major disaster area 7 Federally declared disaster areas are managed Interagency Questions and Answers Regarding where the average real property damage by FEMA and can be tracked at FEMA’s Web site. Community Reinvestment; Notice, 74 FR 498, 509 severity, as reported by the Federal See http://www.fema.gov/news/disasters.fema. (Jan. 6, 2009).

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families. A goal would also be The provisions in proposed the housing goals. The intent of this established for refinancing mortgages for § 1281.12(c) through (f), which address section is to specify the counting low-income families. Unlike the new credit toward multiple goals, treatment for transactions in which the Enterprise housing goals, these Bank application of median income, sampling Banks are authorized to engage under housing goals would not include a and newly available data, respectively, the approved AMA programs. The multifamily special affordable housing are consistent with the provisions counting rules do not purport to goal or multifamily special affordable proposed for the Enterprise 2010 authorize the purchase of any types of housing subgoal, as the Banks have not housing goals. mortgages, but are intended solely to been approved to purchase multifamily The MPF program allows Banks to indicate whether such mortgages shall loans under the AMA programs. The purchase a percentage of a mortgage or receive full, partial or no credit toward single-family housing goals would be mortgage pool initially acquired by the housing goals. Accordingly, based on an evaluation of the Bank’s another Bank under the program. For transactions in which the Banks are not performance relative to the market for purposes of receiving credit under one authorized to engage under the each housing goal in each year. of the housing goals, each mortgage will approved AMA programs are not included in paragraph (b). The Bank C. General Counting Requirements— be assigned to the Bank that initially counting rules may differ from the Proposed § 1281.12 acquired the mortgage regardless of whether an interest in the mortgage was counting rules for the proposed new Proposed § 1281.12 would set forth later sold to another Bank. Enterprise housing goals. For example, general requirements for the counting of In September 2008, FHFA approved the Banks are not authorized to Bank AMA-approved mortgage the Chicago Bank’s request to establish purchase private label securities (PLS) purchases toward the achievement of the MPF Xtra program, under which the under the AMA programs; therefore, it the housing goals. Performance under Bank would buy certain qualified, is not necessary to state in the proposed the single-family housing goals would conforming mortgages from eligible rule that Bank purchases of PLS shall be evaluated based on the percentage of members for immediate sale to Fannie not be counted for purposes of the all AMA-approved mortgages on single- Mae. The MPF Xtra program is not an housing goals. On the other hand, while family, owner-occupied properties AMA program authorized under 12 CFR the Banks are authorized to purchase purchased by a Bank that meet a part 955.9 Under the MPF Xtra program, non-conventional loans under the AMA particular goal. the Bank serves essentially as a conduit authority, HERA amended the Safety Proposed § 1281.12(a) would provide or intermediary with respect to the sale and Soundness Act to prohibit such that performance under each of the of the mortgages to Fannie Mae. The loans from counting toward the single-family housing goals shall be mortgages may be counted by Fannie Enterprise housing goals and, thus, measured using a fraction that is Mae toward compliance with its purchases of such loans by the Banks converted into a percentage. Neither the are specifically excluded from counting numerator nor the denominator shall housing goals. If the mortgages were also to be considered for purposes of the in paragraph (b). include Bank transactions or activities Proposed § 1281.13(b) would make that are not AMA-approved mortgage Bank housing goals, double-counting of the mortgages could occur. For these clear that where a mortgage falls within purchases as defined by FHFA or that one of the categories excluded from are specifically excluded as ineligible reasons, under the proposed rule, mortgages purchased by a Bank consideration under the housing goals, under § 1281.13(b). The numerator is the mortgage should be excluded even pursuant to the MPF Xtra program the number of AMA-approved mortgage if it otherwise would fall within one of would not be considered for purposes of purchases of a Bank in a particular year the special counting rules in proposed the Bank housing goals. that finance owner-occupied single- § 1281.13(c). For example, a non- family properties that count toward D. Special Counting Requirements— conventional mortgage that would be achievement of a particular housing Proposed § 1281.13 excluded from consideration pursuant goal. The denominator is the total to proposed § 1281.13(b)(1) could not be number of AMA-approved mortgage Proposed § 1281.13 would set forth special counting requirements for the counted even if it otherwise would be purchases of a Bank in a particular year counted as a seasoned mortgage under that finance owner-occupied, single- receipt of full, partial or no credit for a transaction toward achievement of the proposed § 1281.13(c)(2). family properties. Home Equity Conversion Mortgages. housing goals, a number of which are Proposed § 1281.12(b) would provide Proposed § 1281.13(b)(1) would exclude discussed further below. that when a Bank lacks sufficient data the purchases of all non-conventional or information, e.g., income of Proposed § 1281.13(b) would specify single-family mortgages, including mortgagor, to determine whether the the types of transactions that shall not Home Equity Conversion Mortgages purchase of a mortgage counts toward be counted for purposes of the housing (HECMs), from counting towards the achievement of a particular housing goals and shall not be included in the Banks’ housing goals—that is, such goal, that mortgage purchase shall be numerator or the denominator in purchases would be excluded from both included in the denominator for that calculating a Bank’s performance under the numerator and denominator in housing goal, but may not be included calculating goal performance. This is 9 In May 2007, FHFB also approved the Atlanta in the numerator. The proposed rule Bank’s request to offer the Global Mortgage Alliance consistent with the counting treatment would not allow the Banks to use Program (GMAP), under which the Bank would for the proposed new Enterprise missing data estimation methodologies facilitate the sale of certain qualified conforming housing goals, as HERA amended as used by the Enterprises, in light of mortgage loans from eligible members to another of section 1332(a) of the Safety and its members—Global Mortgage Alliance, LLC, the complexity of developing an which would then securitize those loans. To date, Soundness Act to restrict the Enterprise estimation methodology that would be no transactions have occurred under GMAP. The single-family housing goals to include suitable for the Banks. FHFA invites GMAP is not an AMA program authorized under only conventional mortgages. See 12 comment on whether a method for part 955. Both the MPF Xtra and GMAP programs U.S.C. 4562(a). were separately authorized under the Banks’ estimating missing affordability data incidental authority contained in sections 11(a) and Mortgages financing secondary would be feasible for the Bank housing 11(e)(1) of the Bank Act. See 12 U.S.C. 1431(a), residences. Proposed § 1281.13(b)(6) goals. 1431(e)(1). would prohibit the counting of mortgage

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purchases to the extent they finance any mortgages, and purchasing mortgage E. Housing Goals Enforcement— dwelling units that are secondary revenue bonds backed by qualifying Proposed §§ 1281.14 and 1281.15 residences. This is consistent with the mortgages. Such transactions would not Proposed § 1281.14 would provide counting treatment for the proposed be eligible for Bank housing goals credit that the Director shall determine new Enterprise housing goals, as HERA because of the more limited scope of the whether each Bank has exceeded the amended section 1332(a) of the Safety approved AMA programs. Proposed volume threshold on an annual basis. and Soundness Act to restrict the § 1281.13(c) would also make clear that For any Bank that has exceeded the Enterprise single-family housing goals where a transaction falls under more volume threshold, the Director would to include only purchases of owner- than one of the special counting rules in also determine whether the Bank has occupied mortgages. See 12 U.S.C. 4562. § 1281.13(c), all of the applicable met the housing goals, in accordance Subordinate liens. Proposed with the standards established under § 1281.13(b)(8) would exclude the requirements must be satisfied in order purchases of subordinate lien mortgages for the loan to be counted for purposes the Safety and Soundness Act, as (second mortgages) from counting of the housing goals. amended by HERA. If the Director towards the Banks’ housing goals. This HOEPA mortgages and mortgages determines that a Bank has failed to meet any housing goal, the Director exclusion is consistent with the with unacceptable terms and shall provide notice to the Bank in counting treatment for the proposed conditions. Proposed § 1281.13(d) writing of such preliminary new Enterprise housing goals, as HERA would provide that HOEPA mortgages amended section 1331 of the Safety and determination. and mortgages with unacceptable terms Proposed § 1281.15 would include Soundness Act to provide that the and conditions must be counted in the single-family housing goals are limited requirements for submission of a denominator as mortgage purchases but housing plan by a Bank for failure to to purchase money or refinancing may not be counted in the numerator, mortgages. See 12 U.S.C. 4561. This meet any housing goal that is regardless of whether the mortgages determined to be feasible by FHFA. The would exclude ‘‘piggy-back’’ liens that would otherwise qualify based on the may be acquired by a Bank along with requirement to submit a housing plan affordability and other counting criteria. would be at the discretion of the the corresponding first lien mortgage This proposed treatment is consistent and subordinate lien mortgages, such as Director. with past practice for the Enterprises home equity loans, acquired separately and with section 1332(i) of the Safety F. Reporting Requirements—Proposed by a Bank where the Bank does not also §§ 1281.20 through 1281.23 acquire the corresponding first lien and Soundness Act, as amended by mortgage. HERA, which provides that no credit As required for the Enterprises, Previously counted mortgages. may be given for mortgages that FHFA proposed §§ 1281.20 through 1281.23 Proposed § 1281.13(b)(9) would prohibit determines are ‘‘unacceptable or would establish reporting requirements the counting of mortgages toward contrary to good lending practices.’’ 12 for the Banks with respect to their performance under the housing goals if U.S.C. 4562(i). housing goals performance. Proposed § 1281.21(a) would require the Banks to the mortgage has previously been FHFA guidance. Proposed collect and compile computerized loan- counted for purposes of the performance § 1281.13(e) would provide that FHFA level data on each AMA mortgage of the Bank under the housing goals. In may provide guidance on the treatment order to limit excessively burdensome purchased, as described in the FHFA’s of any transactions under the housing Data Reporting Manual (DRM). These recordkeeping that could result, the rule goals. Such guidance may be provided would make clear that this limitation reporting requirements would apply to in response to a request from a Bank, or each Bank, regardless of whether in a only extends back for five years. it may be provided at the initiation of Although the Banks have not previously particular year the Bank expects to FHFA. been subject to housing goals, this exceed the volume threshold and thus language is included for applicability in Private label securities. Because be subject to the housing goals. future years. FHFA is proposing to count only Proposed § 1281.21(b) would require Construction-to-permanent loans. mortgages purchased through AMA each Bank to submit to the Director, on Proposed § 1281.13(b)(10) would programs in determining each Bank’s a semi-annual basis, a Mortgage Report exclude purchases of mortgages secured housing goal performance, and the containing aggregations of the loan-level by properties that have not been Banks are not authorized to purchase mortgage data for year-to-date AMA approved for occupancy from PLS through these programs, PLS would mortgage purchases, and year-to-date consideration for purposes of the not be counted in determining a Bank’s dollar volume, number of units, and housing goals. housing goals performance. number of AMA mortgages on owner- Housing goals credit for certain occupied properties purchased that do, transactions. Proposed § 1281.13(c) Housing finance agency obligations. and do not, qualify under each housing would specifically provide that certain FHFA also considered whether to apply goal. The loan-level data that would be types of transactions be counted for the housing goals to the Banks’ purchase required to be reported are currently purposes of the housing goals, including of state or local housing finance agency collected by FHFA on a semiannual mortgages on cooperative housing and obligations. However, because FHFA is basis. For 2010–2011, the Enterprises condominium units, seasoned proposing to count only mortgages would be required to submit quarterly mortgages, and refinancing mortgages. purchased through AMA programs in Mortgage Reports, as advances in Proposed § 1281.13(c) would not determining each Bank’s housing goal technology have made more frequent include certain types of transactions performance, and the Banks are not submissions less burdensome, and the that are eligible for housing goals credit authorized to purchase state or local additional data provided will facilitate under the Enterprise housing goals, housing finance agency obligations FHFA’s monitoring of Enterprise including credit enhancements for goal- through these programs, state or local performance under the housing goals. qualifying mortgages, entering into risk housing finance agency obligations FHFA will consider quarterly reporting sharing agreements with federal would not be counted in determining a for the Banks in future years. The agencies to finance qualifying Bank’s housing goals performance. Enterprises are also required to submit

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Annual Housing Activities Reports entities. 5 U.S.C. 605(b). FHFA has all of the periodic principal or interest. (AHARs) to FHFA. The proposed rule considered the impact of the proposed Typically, the periodic payments are would not require the Banks to submit rule under the Regulatory Flexibility level monthly payments that would AHARs, but FHFA will consider Act. The General Counsel of FHFA fully amortize the mortgage over a stated requiring such reports in the future. certifies that the proposed rule, if term and the balloon payment is a single Proposed § 1281.22 would require adopted as a final rule, is not likely to payment due after a specific period (but each Bank to provide to the Director have a significant economic impact on before the mortgage would fully such reports, information and data as a substantial number of small business amortize) and pays off or satisfies the the Director may request from time to entities because the regulation is outstanding balance of the mortgage. time, or as may be supplemented in the applicable only to the Banks, which are Bank means a Federal Home Loan DRM. not small entities for purposes of the Bank established under section 12 of the Proposed § 1281.23 would set forth Regulatory Flexibility Act. Bank Act (12 U.S.C. 1432). the data integrity process for Bank List of Subjects in 12 CFR Part 1281 Bank Act means the Federal Home housing goals data. The proposed rule Loan Bank Act, as amended (12 U.S.C. would require the senior officer of each Credit, Federal home loan banks, 1421 et seq.). Bank who is responsible for submitting Housing, Mortgages, Reporting and Bank System means the Federal Home any report, data or other information for recordkeeping requirements. Loan Bank System, consisting of the 12 which certification is requested by the For the reasons stated in the Banks and the Office of Finance. Director, to certify such report, data or preamble, FHFA proposes to amend Borrower income means the total information. FHFA would determine on chapter XII of title 12 of the Code of gross income relied on in making the an annual basis the official housing Federal Regulations, by adding new part credit decision. goals performance figures for any Bank 1281 to subchapter E to read as follows: Conforming mortgage means, with that is subject to the housing goals, and respect to a Bank, a conventional AMA- may resolve any error, omission or PART 1281—FEDERAL HOME LOAN approved single-family mortgage having discrepancy by adjusting the Banks’ BANK HOUSING GOALS an original principal obligation that official housing goals performance Subpart A—General does not exceed the dollar limitation in figure. If the Director determines that effect at the time of such origination and the year-end data reported by a Bank for Sec. 1281.1 Definitions. applicable to such mortgage under 12 a year preceding the latest year for CFR 955.2(a)(1)(i) and 12 U.S.C. which data on housing goals Subpart B—Housing Goals 1717(b)(2), as these sections may be performance was reported to FHFA 1281.10 General. amended. contained a material error, omission or 1281.11 Bank housing goals. Conventional mortgage means a discrepancy, the Director may increase 1281.12 General counting requirements. mortgage other than a mortgage as to the corresponding housing goal for the 1281.13 Special counting requirements. 1281.14 Determination of compliance with which a Bank has the benefit of any current year by the number of mortgages guaranty, insurance or other obligation that the Director determines were housing goals; notice of determination. 1281.15 Housing plans. by the United States or any of its overstated in the prior year’s goal agencies or instrumentalities. performance. Subpart C—Reporting Requirements Data Reporting Manual (DRM) means FHFA will implement the data 1281.20 General. the manual prepared by FHFA in integrity process pursuant to its general 1281.21 Mortgage reports. connection with the Banks’ reporting regulatory authority over the Banks. 1281.22 Periodic reports. requirements, as may be supplemented FHFA expects that the Banks will work 1281.23 Bank data integrity. from time to time, including reporting cooperatively with FHFA to identify Authority: 12 U.S.C. 1430c. requirements under this part. and resolve any discrepancies or errors Day means a calendar day. in the housing goals data reported to Subpart A—General FHFA. Designated disaster area means any § 1281.1 Definitions. census tract that is located in a county VIII. Paperwork Reduction Act As used in this part: designated by FEMA as adversely The proposed rule does not contain Acquired Member Assets (AMA) affected by a declared major disaster, any information collection requirement program means a program that where individual assistance payments that requires the approval of the Office authorizes a Bank to hold assets were authorized by FEMA, and where of Management and Budget under the acquired from or through Bank members average damage severity, as reported by Paperwork Reduction Act (44 U.S.C. or housing associates by means of either FEMA, exceeds $1,000 per household in 3501 et seq.). a purchase or a funding transaction, the census tract. A census tract shall be subject to the requirements of 12 CFR treated as a ‘‘designated disaster area’’ IX. Regulatory Flexibility Act parts 955 and 980, or successor for purposes of this part beginning on The Regulatory Flexibility Act (5 regulations. the January 1 after the FEMA U.S.C. 601 et seq.) requires that a AMA-approved mortgage means a designation of the county, or such regulation that has a significant mortgage that meets the requirements of earlier date as determined by FHFA, and economic impact on a substantial the AMA program at 12 CFR part 955, continuing through December 31 of the number of small entities, small and is approved to be implemented third full calendar year following the businesses or small organizations must under 12 CFR part 980, or successor FEMA designation. include an initial regulatory flexibility regulations. Director means the Director of FHFA, analysis describing the regulation’s Balloon mortgage means a mortgage or his or her designee. impact on small entities. Such an providing for payments at regular Dwelling unit means a room or unified analysis need not be undertaken if the intervals, with a final payment (balloon combination of rooms intended for use, agency has certified that the regulation payment) that is at least 5 percent more in whole or in part, as a dwelling by one will not have a significant economic than the periodic payments. The or more persons, and includes a impact on a substantial number of small periodic payments may cover some or dwelling unit in a single-family

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property, multifamily property, or other (2) Asian—a person having origins in (i) For purposes of this definition, residential or mixed-use property. any of the original peoples of the Far points and fees include: Families in low-income areas means: East, Southeast Asia, or the Indian (A) Origination fees; (1) Any family that resides in a census subcontinent, including, for example, (B) Underwriting fees; tract or block numbering area in which Cambodia, China, India, Japan, Korea, (C) Broker fees; the median income does not exceed 80 Malaysia, Pakistan, the Philippine (D) Finder’s fees; and percent of the area median income; Islands, Thailand, and Vietnam; (E) Charges that the member imposes (2) Any family with an income that (3) Black or African American—a as a condition of making the loan, does not exceed area median income person having origins in any of the whether they are paid to the member or that resides in a minority census tract; black racial groups of Africa; a third party; and (4) Hispanic or Latino—a person of (ii) For purposes of this definition, (3) Any family with an income that Cuban, Mexican, Puerto Rican, South or points and fees do not include: does not exceed area median income Central American, or other Spanish (A) Bona fide discount points; that resides in a designated disaster culture or origin, regardless of race; and (B) Fees paid for actual services area. (5) Native Hawaiian or Other Pacific rendered in connection with the Family means one or more Islander—a person having origins in any origination of the mortgage, such as individuals who occupy the same of the original peoples of Hawaii, Guam, attorneys’ fees, notary’s fees, and fees dwelling unit. Samoa, or other Pacific Islands. paid for property appraisals, credit FEMA means the Federal Emergency Minority census tract means a census reports, surveys, title examinations and Management Agency. tract that has a minority population of extracts, flood and tax certifications, FHFA means the Federal Housing at least 30 percent and a median income and home inspections; Finance Agency. of less than 100 percent of the area (C) The cost of mortgage insurance or HOEPA mortgage means a mortgage median income. credit-risk price adjustments; covered by section 103(aa) of the Truth (D) The costs of title, hazard, and Moderate-income means income not in Lending Act (15 U.S.C. 1602(aa)), as flood insurance policies; in excess of area median income. amended by the Home Ownership (E) State and local transfer taxes or Mortgage means a member of such Equity Protection Act (HOEPA), as fees; classes of liens, including subordinate implemented by the Board of Governors (F) Escrow deposits for the future liens, as are commonly given or are of the Federal Reserve System. payment of taxes and insurance HMDA means the Home Mortgage legally effective to secure advances on, premiums; and Disclosure Act of 1975 (12 U.S.C. 2801, or the unpaid purchase price of, real (G) Other miscellaneous fees and et seq.), as amended. estate under the laws of the State in charges that, in total, do not exceed 0.25 HUD means the United States which the real estate is located, together percent of the loan amount; Department of Housing and Urban with the credit instruments, if any, (2) An annual percentage rate that Development. secured thereby, and includes interests exceeds by more than 8 percentage Low-income means income not in in mortgages. ‘‘Mortgage’’ includes a points the yield on Treasury securities excess of 80 percent of area median mortgage, lien, including a subordinate with comparable maturities as of the income. lien, or other security interest on the fifteenth day of the month immediately Median income means, with respect stock or membership certificate issued preceding the month in which the to an area, the unadjusted median to a tenant-stockholder or resident- application for the extension of credit family income for the area as most member by a cooperative housing was received; recently determined by HUD. FHFA will corporation, as defined in section 216 of (3) Prepayment penalties, except provide the Banks annually with the Internal Revenue Code of 1986, and where: information specifying how the median on the proprietary lease, occupancy (i) The mortgage provides some family income estimates for agreement, or right of tenancy in the benefits to the borrower in exchange for metropolitan areas are to be applied for dwelling unit of the tenant-stockholder the prepayment penalty (e.g., a rate or the purposes of determining median or resident-member in such cooperative fee reduction for accepting the family income. housing corporation. prepayment premium); Member means an institution that has Mortgage data means data obtained by (ii) The borrower is offered the choice been approved for membership in a the Director from the Bank or Banks of another mortgage that does not Bank and has purchased capital stock in under this part and/or the Data contain payment of such a premium; the Bank in accordance with 12 CFR Reporting Manual. (iii) The terms of the mortgage 1263.20 or 1263.24(b), or successor Mortgage purchase means a provision containing the prepayment regulation(s). transaction in which a Bank bought or penalty are adequately disclosed to the Metropolitan area means a otherwise acquired a mortgage. borrower; and metropolitan statistical area (MSA), or a Mortgages with unacceptable terms or (iv) The prepayment penalty is not portion of such an area, including conditions means a single-family charged when the mortgage debt is Metropolitan Divisions, for which mortgage, including a reverse mortgage, accelerated as the result of the median family income estimates are or a group or category of such borrower’s default in making his or her determined by HUD. mortgages, with one or more of the mortgage payments; Minority means any individual who is following terms or conditions: (4) The sale or financing of prepaid included within any one or more of the (1) Excessive fees, where the total single-premium credit life insurance following racial and ethnic categories: points and fees charged to a borrower products in connection with the (1) American Indian or Alaskan exceed the greater of 5 percent of the origination of the mortgage Native—a person having origins in any loan amount or a maximum dollar (5) Underwriting practices contrary to of the original peoples of North and amount of $1,000, or an alternative the Interagency Guidance on South America (including Central amount requested by a Bank and Nontraditional Mortgage Product Risks America), and who maintains tribal determined by the Director as (71 FR 58609) (Oct. 4, 2006), the affiliation or community attachment; appropriate for small mortgages; Interagency Statement on Subprime

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Mortgage Lending (72 FR 37569) (July Single-family housing means a applicable average prime offer rate as 10, 2007), or similar guidance residence consisting of one to four reported in the Home Mortgage subsequently issued by federal banking dwelling units. Single-family housing Disclosure Act data shall be excluded; agencies; includes condominium dwelling units and (6) Failure to comply with fair lending and dwelling units in cooperative (6) All mortgages that are missing requirements; or housing projects. information necessary to determine (7) Other terms or conditions that are Very low-income means income not in appropriate counting under the housing determined by the Director to be an excess of 50 percent of area median goals shall be excluded. unacceptable term or condition of a income. (c) Low-income Families Housing mortgage. Goal. For a Bank that is subject to the Nonmetropolitan area means a Subpart B—Housing Goals housing goals, the percentage share of county, or a portion of a county, § 1281.10 General. such Bank’s total purchases of purchase including those counties that comprise money AMA-approved mortgages on Pursuant to the requirements of the Micropolitan Statistical Areas, located owner-occupied single-family housing Bank Act (12 U.S.C. 1430c), this subpart outside any metropolitan area for which that consists of mortgages for low- establishes: median family income estimates are income families shall meet or exceed published annually by HUD. (a) Three single-family owner- occupied purchase money mortgage the share of such mortgages in the Owner-occupied housing means market as defined in paragraph (b) of single-family housing in which a housing goals, and one single-family refinancing mortgage housing goal; this section. mortgagor resides, including two- to (d) Low-income Areas Housing Goal. four-unit owner-occupied properties (b) A volume threshold for the application of the housing goals to a For a Bank that is subject to the housing where one or more units are used for goals, the percentage share of such rental purposes. Bank; (c) Requirements for measuring Bank’s total purchases of purchase Purchase money mortgage means a money AMA-approved mortgages on mortgage given to secure a loan used for performance under the housing goals; and owner-occupied single-family housing the purchase of a single-family that consists of mortgages for families in residential property. (d) Procedures for monitoring and enforcing the housing goals. low-income areas shall meet or exceed Refinancing mortgage means a the share of such mortgages in the mortgage undertaken by a borrower that § 1281.11 Bank housing goals. market as defined in paragraph (b) of satisfies or replaces an existing mortgage (a) Volume threshold. The housing this section. of such borrower. The term does not goals established in this section shall (e) Very Low-income Families include: apply to a Bank for a calendar year only Housing Goal. For a Bank that is subject (1) A renewal of a single payment if the unpaid principal balance (UPB) of to the housing goals, the percentage obligation with no change in the the Bank’s purchases of AMA-approved share of such Bank’s total purchases of original terms; (2) A reduction in the annual mortgages in that year exceeds $2.5 purchase money AMA-approved percentage rate of the mortgage as billion. mortgages on owner-occupied single- (b) Market-based housing goals. A computed under the Truth in Lending family housing that consists of Bank that is subject to the housing goals Act, with a corresponding change in the mortgages for very low-income families payment schedule; shall be in compliance with a housing shall meet or exceed the share of such (3) An agreement involving a court goal if its performance under the mortgages in the market as defined in proceeding; housing goal meets or exceeds the share paragraph (b) of this section. (4) The renewal of optional insurance of the market that qualifies for the (f) Refinancing Housing Goal. For a purchased by the mortgagor and added housing goal. The size of the market for Bank that is subject to the housing goals, to an existing mortgage; or each housing goal shall be established the percentage share of such Bank’s total (5) A conversion of a balloon annually by FHFA for each Bank district purchases of refinancing AMA- mortgage note on a single-family based on data reported pursuant to the approved mortgages on owner-occupied property to a fully amortizing mortgage Home Mortgage Disclosure Act for a single-family housing that consists of note where the Bank already owns or given year. Unless otherwise adjusted refinancing mortgages for low-income has an interest in the balloon note at the by FHFA, the size of the market for each families shall meet or exceed the share time of the conversion. Bank district shall be determined based of such mortgages in the market as Residence means a property where on the following criteria: defined in paragraph (b) of this section. one or more families reside. (1) Only owner-occupied, Residential mortgage means a conventional loans secured by property § 1281.12 General counting requirements. mortgage on single-family or located in that Bank district shall be (a) Calculating the numerator and multifamily housing. considered; denominator for single-family housing Seasoned mortgage means a mortgage (2) Purchase money mortgages and goals. Performance under each of the on which the date of the mortgage note refinancing mortgages shall only be single family housing goals shall be is more than one year before the Bank counted for the applicable housing goal measured using a fraction that is purchased the mortgage. or goals; converted into a percentage. Neither the Second mortgage means any mortgage (3) All mortgages flagged as HOEPA numerator nor the denominator shall that has a lien position subordinate only loans or subordinate lien loans shall be include Bank transactions or activities to the lien of the first mortgage. excluded; that are not AMA-approved mortgage Secondary residence means a (4) All mortgages with original purchases as defined by FHFA or that dwelling where the mortgagor maintains principal balances above the conforming are specifically excluded as ineligible (or will maintain) a part-time place of loan limits for single unit properties for under § 1281.13(b). abode and typically spends (or will the year being evaluated (rounded to the (1) The numerator. The numerator of spend) less than the majority of the nearest $1,000) shall be excluded; each fraction is the number of AMA- calendar year. A person may have more (5) All mortgages with rate spreads of approved mortgage purchases of a Bank than one secondary residence at a time. 300 basis points or more above the in a particular year that finance owner-

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occupied single-family properties that the new data until the start of the of a mortgage on a cooperative housing count toward achievement of a following quarter. unit (‘‘a share loan’’) or a mortgage on a particular single-family housing goal. condominium unit shall be treated as a § 1281.13 Special counting requirements. (2) The denominator. The mortgage purchase for purposes of the denominator of each fraction is the total (a) General. FHFA shall determine housing goals. number of AMA-approved mortgage whether a Bank shall receive full, (2) Seasoned mortgages. The purchase purchases of a Bank in a particular year partial, or no credit toward achievement of a seasoned mortgage by a Bank shall that finance owner-occupied, single- of any of the housing goals for a be treated as a mortgage purchase for family properties. A separate transaction that otherwise qualifies purposes of the housing goals, except denominator shall be calculated for under this part. where the Bank has already counted the (b) Not counted. The following purchase money mortgages and for mortgage under any current or previous transactions or activities shall not be refinancing mortgages. housing goal within the five years counted for purposes of the housing (b) Missing data or information for immediately preceding the current goals and shall not be included in the single-family housing goals.—(1) When numerator or the denominator in performance year. a Bank lacks sufficient data or calculating a Bank’s performance under (3) Purchase of refinancing mortgages. information to determine whether the the housing goals, even if the The purchase of a refinancing mortgage purchase of a mortgage originated after transaction or activity would otherwise by a Bank shall be treated as a mortgage 1992 counts toward achievement of a be counted under paragraph (c) of this purchase for purposes of the housing particular single-family housing goal, section: goals only if the refinancing is an arms- that mortgage purchase shall be (1) Purchases of non-conventional length transaction that is borrower- included in the denominator for that single-family mortgages; driven. housing goal and shall not be included (2) Commitments to buy mortgages at (d) HOEPA mortgages and mortgages in the numerator for that housing goal. a later date or time; with unacceptable terms or conditions. (2) Mortgage purchases financing (3) Options to acquire mortgages; The purchase by a Bank of HOEPA owner-occupied single-family properties (4) Rights of first refusal to acquire mortgages and mortgages with shall be evaluated based on the income mortgages; unacceptable terms or conditions, as of the mortgagors and the area median (5) Any interests in mortgages that the defined in § 1281.1, shall be treated as income at the time the mortgage was Director determines, in writing, shall mortgage purchases for purposes of the originated. To determine whether not be treated as interests in mortgages; housing goals and shall be included in mortgages may be counted under a (6) Mortgage purchases to the extent the denominator for each applicable particular family income level (i.e., low- they finance any dwelling units that are single-family housing goal, but such or very low-income), the income of the secondary residences; mortgages shall not be counted in the mortgagors is compared to the median (7) Single family refinancing numerator for any housing goal. mortgages that result from conversion of income for the area at the time of the (e) FHFA review of transactions. balloon notes to fully amortizing notes, mortgage application, using the FHFA may determine whether and how if a Bank already owns, or has an appropriate percentage factor provided any transaction or class of transactions interest in, the balloon note at the time under § 1281.1. shall be counted for purposes of the (c) Credit toward multiple goals. A conversion occurs; (8) Purchases of subordinate lien housing goals. FHFA will notify each mortgage purchase by a Bank in a Bank in writing of any determination particular year shall count toward the mortgages (second mortgages); (9) Purchases of mortgages that were regarding the treatment of any achievement of each housing goal for previously counted by a Bank under any transaction or class of transactions which such purchase qualifies in that current or previous housing goal; under the housing goals. year. (10) Purchases of mortgages where the (d) Application of median income. § 1281.14 Determination of compliance property has not been approved for with housing goals; notice of determination. For purposes of determining an area’s occupancy; and median income under § 1281.1, the area (11) Any combination of factors in (a) Determination of compliance with is: paragraphs (b)(1) through (b)(10) of this housing goals. On an annual basis, the (1) The metropolitan area, if the section. Director shall determine whether each property which is the subject of the (c) Other special rules. Subject to Bank has exceeded the volume mortgage is in a metropolitan area; and FHFA’s determination of whether a threshold. For each Bank that has (2) In all other areas, the county in Bank shall receive full, partial, or no exceeded the volume threshold in a which the property is located, except credit for a transaction toward year, the Director shall determine the that where the State nonmetropolitan achievement of any of the housing goals Bank’s performance under each housing median income is higher than the as provided in paragraph (a) of this goal. county’s median income, the area is the section, the transactions and activities (b) Failure to meet a housing goal. If State nonmetropolitan area. identified in this paragraph (c) shall be the Director determines that a Bank has (e) Sampling not permitted. treated as mortgage purchases as failed to meet any housing goal, the Performance under the housing goals for described. A transaction or activity that Director shall notify the Bank in writing each year shall be based on a complete is covered by more than one paragraph of such preliminary determination. Any tabulation of mortgage purchases for below must satisfy the requirements of notification to a Bank of a preliminary that year; a sampling of such purchases each such paragraph. The mortgages determination under this section shall is not acceptable. from each such transaction or activity provide the Bank with an opportunity to (f) Newly available data. When a Bank shall be included in the denominator in respond in writing in accordance with uses data to determine whether a calculating a Bank’s performance under the following procedures: mortgage purchase counts toward the housing goals, and shall be included (1) Notice. The Director shall provide achievement of any housing goal, and in the numerator, as appropriate. written notice to a Bank of a preliminary new data is released after the start of a (1) Cooperative housing and determination under this section, the calendar quarter, the Bank need not use condominiums. The purchase by a Bank reasons for such determination, and the

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information on which the Director based (4) Address any additional matters Subpart C—Reporting Requirements the determination. relevant to the plan as required, in (2) Response period.—(i) In general. writing, by the Director. § 1281.20 General. During the 30-day period beginning on (c) Deadline for submission. The Bank This subpart establishes data the date on which notice is provided shall submit the housing plan to the submission and reporting requirements under paragraph (b)(1) of this section, Director within 45 days after issuance of to provide the Director with the the Bank may submit to the Director any a notice requiring the Bank to submit a mortgage and other information relating written information that the Bank housing plan. The Director may extend to the Banks’ performance in connection considers appropriate for consideration the deadline for submission of a plan, in with the housing goals, as by the Director in finally determining writing and for a time certain, to the supplemented from time to time in the whether such failure has occurred or extent the Director determines an Banks’ Data Reporting Manual (DRM). whether the achievement of such goal extension is necessary. § 1281.21 Mortgage reports. was feasible. (d) Review of housing plan. The (ii) Extended period. The Director (a) Loan-level data elements. To Director shall review and approve or implement the data collection and may extend the period under paragraph disapprove a housing plan as follows: (b)(2)(i) of this section for good cause for submission requirements for mortgage (1) Approval. The Director shall not more than 30 additional days. data, and to assist the Director in review each submission by a Bank, (iii) Shortened period. The Director monitoring the Banks’ housing goal including a housing plan submitted may shorten the period under paragraph activities, each Bank shall collect and under this section and, not later than 30 (b)(2)(i) of this section for good cause. compile computerized loan-level data days after submission, approve or (iv) Failure to respond. The failure of on each AMA-approved mortgage disapprove the plan or other action. The a Bank to provide information during purchase, as described in the DRM. The Director may extend the period for the 30-day period under this paragraph Director may, from time to time, issue approval or disapproval for a single (b)(2), as extended or shortened, shall a list in the DRM specifying the loan- additional 30-day period if the Director waive any right of the Bank to comment level data elements to be collected and determines it necessary. The Director on the proposed determination or action maintained by the Banks and provided shall approve any plan that the Director of the Director. to the Director. The Director may revise determines is likely to succeed, and the DRM list by written notice to the (3) Consideration of information and conforms with the Bank Act, this part, final determination.—(i) In general. Banks. and any other applicable provision of (b) Semi-annual mortgage reports. After the expiration of the response law. period under paragraph (b)(2) of this Each Bank shall submit to the Director, section, or upon receipt of information (2) Notice of approval and on a semi-annual basis, a mortgage provided during such period by a Bank, disapproval. The Director shall provide report. The second semi-annual whichever occurs earlier, the Director written notice to a Bank submitting a mortgage report each year shall serve as shall issue a final determination on: housing plan of the approval or the annual mortgage report and shall be (A) Whether the Bank has failed to disapproval of the plan, which shall designated as such. Each mortgage meet the housing goal; and include the reasons for any disapproval report shall include: (B) Whether, taking into consideration of the plan, and of any extension of the (1) Aggregations of the loan-level market and economic conditions and period for approval or disapproval. mortgage data compiled by each Bank the financial condition of the Bank, the (e) Resubmission. If the Director under paragraph (a) of this section for achievement of the housing goal was disapproves an initial housing plan year-to-date AMA-approved mortgage feasible. submitted by a Bank, the Bank shall purchases, in the format specified in (ii) Considerations. In making a final submit an amended plan acceptable to writing by the Director; determination under paragraph (b)(3)(i) the Director not later than 15 days after (2) Year-to-date dollar volume, of this section, the Director shall take the Director’s disapproval of the initial number of units, and number of AMA- into consideration any relevant plan; the Director may extend the approved mortgages on owner-occupied information submitted by a Bank during deadline if the Director determines an properties purchased by each Bank that the response period. extension is in the public interest. If the do, and do not, qualify under each amended plan is not acceptable to the housing goal as set forth in this part; § 1281.15 Housing plans. Director, the Director may afford the and (a) Housing plan requirement. If the Bank 15 days to submit a new plan. (3) Year-to-date computerized loan- Director determines that a Bank has (f) Enforcement of housing plan. If the level data consisting of the data failed to meet any housing goal and that Director finds that a Bank has failed to elements required under paragraph (a) the achievement of the housing goal was meet any housing goal, and that the of this section. feasible, the Director may require the achievement of the housing goal was (c) Timing of reports. Each Bank shall Bank to submit a housing plan for feasible, and has required the Bank to submit its first semi-annual mortgage approval by the Director. submit a housing plan under this report within 45 days of the end of the (b) Nature of plan. If the Director section, the Director may issue a cease second quarter. Each Bank shall submit requires a housing plan, the housing and desist order, or impose civil money its annual mortgage report within 60 plan shall: penalties, if the Bank refuses to submit days after the end of the calendar year. (1) Be feasible; such a plan, fails to submit an (d) Revisions to reports. At any time (2) Be sufficiently specific to enable acceptable plan, or fails to comply with before submission of its annual the Director to monitor compliance the approved plan. In taking such mortgage report, a Bank may revise its periodically; action, the Director shall follow first semi-annual mortgage report for (3) Describe the specific actions that procedures consistent with those that year. the Bank will take to achieve the provided in 12 U.S.C. 4581 through (e) Format. The Banks shall submit to housing goal for the next calendar year; 4588 with respect to actions to enforce the Director computerized loan-level and the housing goals. data with the mortgage report, in the

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format specified in writing by the SUMMARY: This action proposes special If you want us to let you know we Director. conditions for the Cirrus Design received your comments on these Corporation SF50 airplane. This special conditions, send us a pre- § 1281.22 Periodic reports. airplane will have a novel or unusual addressed, stamped postcard on which Each Bank shall provide to the design feature(s) associated with the the docket number appears. We will Director such reports, information and complex design and performance stamp the date on the postcard and mail data as the Director may request from features consistent with larger airplanes. it back to you. time to time, or as may be supplemented The applicable airworthiness Background in the DRM. regulations do not contain adequate or On April 29, 2010, Cirrus Design § 1281.23 Bank data integrity. appropriate safety standards for this design feature. These proposed special Corporation applied for a type (a) Certification.—(1) The senior conditions contain the additional safety certificate for their new Model SF 50 officer of each Bank who is responsible standards that the Administrator ‘‘Vision’’ Jet. The SF50 is a low-wing, for submitting the annual mortgage considers necessary to establish a level five-plus-two-place (2 children), single- report, or for submitting any other of safety equivalent to that established engine turbofan-powered aircraft. It report(s), data or other information for by the existing airworthiness standards. incorporates an Electronic Flight which certification is requested in Information System (EFIS), pressurized DATES: We must receive your comments writing by the Director, shall certify cabin, retractable gear, and a V-tail. The by June 28, 2010. such report(s), data or information. turbofan engine is mounted on the (2) The certification shall state as ADDRESSES: Mail two copies of your upper fuselage/tail cone along the follows: ‘‘To the best of my knowledge comments to: Federal Aviation aircraft centerline. It is constructed and belief, the information provided Administration, Regional Counsel, largely of carbon and fiberglass herein is true, correct and complete.’’ ACE–7, 901 Locust, Kansas City, MO composite materials. Like other Cirrus (b) Adjustment to correct errors, 64106. You may deliver two copies to products, the SF50 includes a omissions or discrepancies. FHFA shall the Regional Counsel at the above ballistically deployed airframe determine on an annual basis the address. Mark your comments: Docket parachute. official housing goals performance No. CE308. You may inspect comments The model SF50 has a maximum figures for a Bank that is subject to the in the Rules Docket weekdays, except operating altitude of 28,000 feet, where housing goals. FHFA may resolve any Federal holidays, between 7:30 a.m. and it cruises at speeds up to 300 KTAS. Its error, omission or discrepancy by 4 p.m. VMO will not exceed 0.62 Mach. The adjusting the Bank’s official housing FOR FURTHER INFORMATION CONTACT: maximum takeoff weight will be at or goals performance figure. If the Director J. Lowell Foster, Federal Aviation below 6000 pounds with a range at determines that the year-end data Administration, Small Airplane economy cruise of roughly 1000 nm. reported by a Bank for a year preceding Directorate, Aircraft Certification Cirrus intends for the model SF50 to be the latest year for which data on Service, 901 Locust, Room 301, Kansas certified for single-pilot operations housing goals performance was reported City, MO 64106; telephone (816) 329– under 14 CFR part 91 and 14 CFR part to FHFA contained a material error, 4125; facsimile (816) 329–4090. 135 operating rules. The following omission or discrepancy, the Director SUPPLEMENTARY INFORMATION: operating conditions will be included: may increase the corresponding housing • Day and Night VFR. goal for the current year by the number Comments Invited • IFR. of mortgages that the Director • Flight into Known Icing. We invite interested persons to take determines were overstated in the prior submit such written data, views, or Discussion year’s goal performance. arguments as they desire. The most Before Amendment 3–4, Section 3.19 Dated: May 24, 2010. helpful comments reference a specific of Civil Air Regulation (CAR) part 3 Edward J. DeMarco, portion of the special conditions, required service testing of all airplanes Acting Director, Federal Housing Finance explain the reason for any type certificated on or after May 15, Agency. recommended change, and include 1947. The purpose of the testing was to [FR Doc. 2010–12849 Filed 5–27–10; 8:45 am] supporting data. We ask that you send ‘‘ascertain whether there is reasonable BILLING CODE 8070–01–P us two copies of written comments. assurance that the airplane, its We will file in the docket all components, and equipment are comments we receive, as well as a reliable, and function properly.’’ DEPARTMENT OF TRANSPORTATION report summarizing each substantive Amendment 3–4 to CAR part 3 public contact with FAA personnel became effective January 15, 1951, and Federal Aviation Administration about these special conditions. You may deleted the service test requirements in inspect the docket before and after the Section 3.19 for airplanes of 6,000 14 CFR Part 23 comment closing date. If you wish to pounds maximum weight or less. The review the docket in person, go to the introductory text published in [Docket No. CE308; Notice No. 23–10–02– address in the ADDRESSES section of this Amendment 3–4 explained that most of SC] preamble between 7:30 a.m. and 4 p.m., the significant changes in the Monday through Friday, except Federal amendment stemmed from ‘‘the desire Special Conditions: Cirrus Design holidays. for simplification of the rules in this Corporation Model SF50 Airplane; We will consider all comments we part with respect to the smaller Function and Reliability Testing receive by the closing date for airplanes, specifically those of 6,000 AGENCY: Federal Aviation comments. We will consider comments pounds maximum weight or less, which Administration (FAA), DOT. filed late if it is possible to do so would be expected to be used mainly as without incurring expense or delay. We personal airplanes.’’ The introductory ACTION: Notice of proposed special may change these special conditions material also stated the service test conditions. based on the comments we receive. requirement was removed for airplanes

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of 6,000 pounds maximum weight or are issued. Should the type certificate that was used to show compliance less because ‘‘experience seems to for that model be amended later to with— indicate that this rule imposes a burden include any other model that (1) Paragraph (b)(1) of this section; upon the manufacturers not incorporates the same novel or unusual and commensurate with the safety gained.’’ design feature, the special conditions (2) —. The requirement for Function and would also apply to the other model. (f) The flight tests prescribed in Reliability (F&R) testing, and the paragraph (b)(2) of this section must exception for airplanes of 6,000 pounds Novel or Unusual Design Features include— or less maximum weight, is now found The SF 50 will incorporate the (1) For aircraft incorporating turbine in 14 CFR part 21, section 21.35(b)(2). following novel or unusual design engines of a type not previously used in The decision to exempt airplanes of features: Complex design and a type certificated aircraft, at least 300 6,000 pounds maximum weight or less performance features consistent with hours of operation with a full from F&R testing was based on the state technologically advanced aircraft over complement of engines that conform to of technology envisioned in 1951. At 6,000 pounds. a type certificate; and that time, airplanes of 6,000 pounds (2) For all other aircraft, at least 150 Applicability maximum weight or less were expected hours of operation. to be used mainly as personal airplanes. As discussed above, these special Issued in Kansas City, Missouri on May 18, They used simple, ‘‘stand-alone’’ conditions are applicable to the SF50. 2010. systems whose failure was more likely Should Cirrus Design Corporation apply John Colomy, to be an inconvenience than an at a later date for a change to the type accident. The situation is different Acting Manager, Small Airplane Directorate, certificate to include another model Aircraft Certification Service. today. Technological advances allow incorporating the same novel or unusual [FR Doc. 2010–12875 Filed 5–27–10; 8:45 am] airplanes weighing less than 6,000 design feature, the special conditions pounds to be more complex and would apply to that model as well. BILLING CODE 4910–13–P integrated than some transports. New part 23 airplanes can incorporate Conclusion DEPARTMENT OF TRANSPORTATION sophisticated equipment not previously This action affects only certain novel used in a part 23 aircraft. Additionally, or unusual design features on model Federal Aviation Administration part 23 airplanes are being used for SF50 airplanes. It is not a rule of general business and commercial transportation. applicability and affects only the 14 CFR Part 71 They should no longer be envisioned applicant who applied to the FAA for mainly as personal airplanes. Therefore, approval of these features on the [Docket No. FAA–2010–0387; Airspace Docket No. 10–ANM–1] a special condition to require F&R airplane. testing for airplanes weighing 6,000 List of Subjects in 14 CFR Part 23 Proposed Revocation of Class E pounds or less is needed where the level Airspace; Eastsound, WA of sophistication is beyond evaluating Aircraft, Aviation safety, Signs and failures by inspection. symbols. AGENCY: Federal Aviation Type Certification Basis The authority citation for these Administration (FAA), DOT. special conditions is as follows: ACTION: Notice of proposed rulemaking Under the provisions of 14 CFR 21.17, (NPRM). Cirrus Design Corporation must show Authority: 49 U.S.C. 106(g), 40113 and 44701; 14 CFR 21.16 and 21.17; and 14 CFR that the SF50 meets the applicable SUMMARY: This action proposes to 11.38 and 11.19. provisions of part 23, as amended by remove Class E surface airspace at Orcas Amendment 23–1 through 23–59 The Proposed Special Conditions Island Airport, Eastsound, WA. thereto. Accordingly, the Federal Aviation Controlled airspace already exists in the If the Administrator finds that the Eastsound, WA, area to accommodate applicable airworthiness regulations Administration (FAA) proposes the following Special conditions as part of the safety and management of aircraft (i.e., part 23) do not contain adequate or operations at Orcas Island Airport. appropriate safety standards for the SF the type certification basis for Cirrus Design Corporation model SF50 DATES: Comments must be received on 50 because of a novel or unusual design or before July 12, 2010. feature, special conditions are airplanes. ADDRESSES: prescribed under the provisions of 1. Function and Reliability Testing Send comments on this § 21.16. Flight tests: In place of 14 CFR part proposal to the U.S. Department of In addition to the applicable 21.35(b)(2), the following applies: Transportation, Docket Operations, M– airworthiness regulations and special (b) Upon showing compliance with 30, West Building Ground Floor, Room conditions, the SF50 must comply with paragraph (a) of 14 CFR part 21.35(a), W12–140, 1200 New Jersey Avenue, SE., the fuel vent and exhaust emission the applicant must make all flight tests Washington, DC 20590; telephone (202) requirements of 14 CFR part 34 and the that the Administrator finds necessary— 366–9826. You must identify FAA noise certification requirements of 14 (2) For aircraft to be certificated under Docket No. FAA–2010–0387; Airspace CFR part 36; and the FAA must issue a this subchapter to determine whether Docket No. 10–ANM–1, at the beginning finding of regulatory adequacy under there is reasonable assurance that the of your comments. You may also submit § 611 of Public Law 92–574, the ‘‘Noise aircraft, its components, and its comments through the Internet at Control Act of 1972.’’ equipment are reliable and function http://www.regulations.gov. The FAA issues special conditions, as properly. FOR FURTHER INFORMATION CONTACT: defined in § 11.19, under § 11.38 and Additionally the provisions of 14 CFR Eldon Taylor, Federal Aviation they become part of the type part 21.35(c) and 21.35(f) then apply: Administration, Operations Support certification basis under § 21.17(a)(2). (c) Each applicant must, if practicable, Group, Western Service Center, 1601 Special conditions are initially make the tests described in paragraph Lind Avenue, SW., Renton, WA 98057; applicable to the model for which they (b)(2) of this section upon the aircraft telephone (425) 203–4537.

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SUPPLEMENTARY INFORMATION: business hours at the Northwest I, section 40103. Under that section, the Mountain Regional Office of the Federal FAA is charged with prescribing Comments Invited Aviation Administration, Air Traffic regulations to assign the use of the Interested parties are invited to Organization, Western Service Center, airspace necessary to ensure the safety participate in this proposed rulemaking Operations Support Group, 1601 Lind of aircraft and the efficient use of by submitting such written data, views, Avenue, SW., Renton, WA 98057. airspace. This regulation is within the or arguments, as they may desire. Persons interested in being placed on scope of that authority as it would Comments that provide the factual basis a mailing list for future NPRM’s should remove unnecessary controlled Airspace supporting the views and suggestions contact the FAA’s Office of Rulemaking, at Orcas Island Airport, Eastsound, WA. presented are particularly helpful in (202) 267–9677, for a copy of Advisory developing reasoned regulatory Circular No. 11–2A, Notice of Proposed List of Subjects in 14 CFR Part 71 decisions on the proposal. Comments Rulemaking Distribution System, which Airspace, incorporation by reference, are specifically invited on the overall describes the application procedure. Navigation (air). regulatory, aeronautical, economic, The Proposed Amendment environmental, and energy-related The Proposal aspects of the proposal. The FAA is proposing an amendment Accordingly, pursuant to the Communications should identify both to Title 14 Code of Federal Regulations authority delegated to me, the Federal docket numbers (FAA Docket No. FAA (14 CFR) part 71 by removing Class E Aviation Administration proposes to 2010–0387 and Airspace Docket No. 10– airspace at Orcas Island Airport, amend 14 CFR part 71 as follows: ANM–1) and be submitted in triplicate Eastsound, WA. The controlled airspace to the Docket Management System (see is unnecessary because existing PART 71—DESIGNATION OF CLASS A, B, C, D AND E AIRSPACE AREAS; AIR ADDRESSES section for address and controlled airspace upward from 700 phone number). You may also submit feet above the surface around the TRAFFIC SERVICE ROUTES; AND REPORTING POINTS comments through the Internet at Eastsound, WA, area accommodates http://www.regulations.gov. aircraft at Orcas Island Airport. This 1. The authority citation for 14 CFR Commenters wishing the FAA to action would enhance the safety and part 71 continues to read as follows: acknowledge receipt of their comments management of aircraft operations for Authority: 49 U.S.C. 106(g), 40103, 40113, on this action must submit with those the Eastsound, WA, area. 40120; E.O. 10854, 24 FR 9565, 3 CFR, 1959– comments a self-addressed stamped Class E airspace designations are 1963 Comp., p. 389. postcard on which the following published in paragraph 6002, of FAA statement is made: ‘‘Comments to FAA Order 7400.9T, signed August 27, 2009, § 71.1 [Amended] Docket No. FAA–2010–0387 and and effective September 15, 2009, which 2. The incorporation by reference in Airspace Docket No. 10–ANM–1’’. The is incorporated by reference in 14 CFR 14 CFR 71.1 of the FAA Order 7400.9T, postcard will be date/time stamped and 71.1. The Class E airspace designation Airspace Designations and Reporting returned to the commenter. listed in this document will be Points, signed August 27, 2009, and All communications received on or published subsequently in this Order. effective September 15, 2009, is before the specified closing date for The FAA has determined this amended as follows: comments will be considered before proposed regulation only involves an established body of technical Paragraph 6002 Class E airspace taking action on the proposed rule. The Designated as Surface Areas. regulations for which frequent and proposal contained in this action may * * * * * be changed in light of comments routine amendments are necessary to received. All comments submitted will keep them operationally current. ANM WA E2 Eastsound, WA [Removed] be available for examination in the Therefore, this proposed regulation; (1) Is not a ‘‘significant regulatory action’’ Issued in Seattle, Washington, on May 14, public docket both before and after the 2010. under Executive Order 12866; (2) is not closing date for comments. A report Clark Desing, summarizing each substantive public a ‘‘significant rule’’ under DOT Regulatory Policies and Procedures (44 Manager, Operations Support Group, Western contact with FAA personnel concerned Service Center. with this rulemaking will be filed in the FR 11034; February 26, 1979); and (3) [FR Doc. 2010–12879 Filed 5–27–10; 8:45 am] docket. does not warrant preparation of a regulatory evaluation as the anticipated BILLING CODE 4910–13–P Availability of NPRM’s impact is so minimal. Since this is a An electronic copy of this document routine matter that will only affect air may be downloaded through the traffic procedures and air navigation, it DEPARTMENT OF HOUSING AND Internet at http://www.regulations.gov. is certified this proposed rule, when URBAN DEVELOPMENT Recently published rulemaking promulgated, would not have a 24 CFR Part 1000 documents can also be accessed through significant economic impact on a the FAA’s Web page at http:// substantial number of small entities [Docket No. FR–5275–N–09] www.faa.gov/airports_airtraffic/ under the criteria of the Regulatory air_traffic/publications/ Flexibility Act. Native American Housing Assistance airspace_amendments/. The FAA’s authority to issue rules and Self-Determination You may review the public docket regarding aviation safety is found in Reauthorization Act of 2008: containing the proposal, any comments Title 49 of the U.S. Code. Subtitle 1, Negotiated Rulemaking Committee received, and any final disposition in section 106, describes the authority for Meetings person in the Dockets Office (see the the FAA Administrator. Subtitle VII, AGENCY: Office of the Assistant ADDRESSES section for the address and Aviation Programs, describes in more Secretary for Public and Indian phone number) between 9 a.m. and 5 detail the scope of the agency’s Housing, HUD. p.m., Monday through Friday, except authority. This rulemaking is ACTION: Notice of negotiated rulemaking federal holidays. An informal docket promulgated under the authority committee meetings. may also be examined during normal described in subtitle VII, part A, subpart

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SUMMARY: This document announces Reauthorization amends section 106 of anticipates no adverse comments. A two meetings of the negotiated NAHASDA to provide that HUD shall detailed rationale for the approval is set rulemaking committee that was initiate a negotiated rulemaking in order forth in the direct final rule. If no established pursuant to the Native to implement aspects of the 2008 adverse comments are received in American Housing Assistance and Self- Reauthorization Act that require response to this action, no further Determination Reauthorization Act of rulemaking. On January 5, 2010 (75 FR activity is contemplated. If EPA receives 2008. The primary purpose of the 423), HUD published a Federal Register adverse comments, the direct final rule committee is to discuss and negotiate a notice announcing the final list of will be withdrawn and all public proposed rule that would change the members of the negotiated rulemaking comments received will be addressed in regulations for the Indian Housing Block committee (the Native American a subsequent final rule based on this Grant (IHBG) program and the Title VI Housing Assistance & Self- proposed rule. EPA will not institute a Loan Guarantee program. Determination Negotiated Rulemaking second comment period. Any parties DATES: The fourth committee meeting Committee). interested in commenting on this action will be held on Tuesday, June 8, 2010, should do so at this time. Please note II. Negotiated Rulemaking Committee Wednesday, June 9, 2010, and that if EPA receives adverse comment Meeting Thursday, June 10, 2010. The fifth on an amendment, paragraph, or section committee meeting will be held on This document announces the fourth of this rule and if that provision may be Tuesday, July 20, 2010, Wednesday, and fifth meetings of the Native severed from the remainder of the rule, July 21, and Thursday, July 22, 2010. American Housing Assistance & Self- EPA may adopt as final those provisions The meetings will begin at 8 a.m. and Determination Negotiated Rulemaking of the rule that are not the subject of an are scheduled to end at 5 p.m. on each Committee. The committee meetings adverse comment. day. will take place as described in the DATES DATES: Comments must be received in ADDRESSES: The fourth meeting will and ADDRESSES sections of this writing by June 28, 2010. document. The meetings will be open to take place at the Hyatt at Olive 8, 1635 ADDRESSES: Submit your comments, 8th Avenue, Seattle, Washington 98101; the public without advance registration. identified by Docket ID Number EPA– telephone number 206–695–1234 (this Public attendance may be limited to the R03–OAR–2010–0320 by one of the is not a toll-free number). The fifth space available. Members of the public following methods: meeting will take place at the Crowne may be allowed to make statements A. http://www.regulations.gov. Follow Plaza Hotel Seattle, 1113 Sixth Avenue, during the meetings, to the extent time the on-line instructions for submitting Seattle, WA 98101; telephone number permits, and to file written statements comments. 206–464–1980 (this is not a toll-free with the committee for its B. E-mail: number). consideration. Written statements [email protected]. FOR FURTHER INFORMATION CONTACT: should be submitted to the address C. Mail: EPA–R03–OAR–2010–0320, Rodger J. Boyd, Deputy Assistant listed in the FOR FURTHER INFORMATION Cristina Fernandez, Associate Director, Secretary for Native American CONTACT section of this document. Office of Air Planning Programs, Programs, Office of Public and Indian Dated: May 24, 2010. Mailcode 3AP30, U.S. Environmental Housing, Department of Housing and T. Michael Andrews, Protection Agency, Region III, 1650 Urban Development, 451 Seventh Street, Director, Office of Headquarters Operations, Arch Street, Philadelphia, Pennsylvania SW., Room 4126, Washington, DC Office of Native American Programs. 19103. 20410; telephone number 202–401–7914 [FR Doc. 2010–12972 Filed 5–27–10; 8:45 am] D. Hand Delivery: At the previously- (this is not a toll-free number). Hearing BILLING CODE 4210–67–P listed EPA Region III address. Such or speech-impaired individuals may deliveries are only accepted during the access this number via TTY by calling Docket’s normal hours of operation, and the toll-free Federal Information Relay ENVIRONMENTAL PROTECTION special arrangements should be made Service at 1–800–877–8339. AGENCY for deliveries of boxed information. SUPPLEMENTARY INFORMATION: Instructions: Direct your comments to 40 CFR Part 52 Docket ID No. EPA–R03–OAR–2010– I. Background 0320. EPA’s policy is that all comments The Native American Housing [EPA–R03–OAR–2010–0320; FRL–9156–3] received will be included in the public Assistance and Self-Determination Approval and Promulgation of Air docket without change, and may be Reauthorization Act of 2008 (Pub. L. Quality Implementation Plans; District made available online at http:// 110–411, approved October 14, 2008) of Columbia; Transportation www.regulations.gov, including any (NAHASDA Reauthorization) Conformity Regulations personal information provided, unless reauthorizes The Native American the comment includes information Housing Assistance and Self- AGENCY: Environmental Protection claimed to be Confidential Business Determination Act of 1996 (25 U.S.C. Agency (EPA). Information (CBI) or other information 4101 et seq.) (NAHASDA) through ACTION: Proposed rule. whose disclosure is restricted by statute. September 30, 2013, and makes a Do not submit information that you number of amendments to the statutory SUMMARY: EPA proposes to approve the consider to be CBI (or otherwise requirements governing the Indian State Implementation Plan (SIP) protected) through http:// Housing Block Grant Program (IHBG) revision submitted by the District of www.regulations.gov or e-mail. The and Title VI Loan Guarantee programs. Columbia for Transportation Conformity http://www.regulations.gov Web site is For more information on the IHBG and Regulations. In the Final Rules section an anonymous access system, which Title VI of NAHASDA, please see the of this Federal Register, EPA is means EPA will not know your identity background section of the Notice of approving the District’s SIP submittal as or contact information unless you Negotiated Rulemaking Committee a direct final rule without prior proposal provide it in the body of your comment. Meeting published on February 22, 2010 because the Agency views this as a If you send an e-mail comment directly at (75 FR 7579). The NAHASDA noncontroversial submittal and to EPA without going through http://

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www.regulations.gov, your e-mail not publicly available, i.e., CBI or other SUPPLEMENTARY INFORMATION: For address will be automatically captured information whose disclosure is further information, please see the and included as part of the comment restricted by statute. Certain other information provided in the direct final that is placed in the public docket and material, such as copyrighted material, action, with the same title, that is made available on the Internet. If you is not placed on the Internet and will be located in the Rules and Regulations submit an electronic comment, EPA publicly available only in hard copy section of this Federal Register recommends that you include your form. Publicly available docket publication. Please note that if EPA name and other contact information in materials are available either receives adverse comment on an the body of your comment and with any electronically in http:// amendment, paragraph, or section of www.regulations.gov or in hard copy disk or CD–ROM you submit. If EPA this rule and if that provision may be during normal business hours at the Air cannot read your comment due to severed from the remainder of the rule, Protection Division, U.S. Environmental technical difficulties and cannot contact EPA may adopt as final those provisions you for clarification, EPA may not be Protection Agency, Region III, 1650 of the rule that are not the subject of an able to consider your comment. Arch Street, Philadelphia, Pennsylvania adverse comment. Electronic files should avoid the use of 19103. Copies of the State submittal are special characters, any form of available at the District of Columbia Dated: May 17, 2010. encryption, and be free of any defects or Department of Public Health, Air William C. Early, Quality Division, 51 N Street, NE., Fifth viruses. Acting Regional Administrator, Region III. Docket: All documents in the Floor, Washington, DC 20002. [FR Doc. 2010–12928 Filed 5–27–10; 8:45 am] electronic docket are listed in the http:// FOR FURTHER INFORMATION CONTACT: www.regulations.gov index. Although Martin Kotsch, (215) 814–3335, or by e- BILLING CODE 6560–50–P listed in the index, some information is mail at: [email protected].

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Notices Federal Register Vol. 75, No. 103

Friday, May 28, 2010

This section of the FEDERAL REGISTER Washington, DC, from 9 a.m. to 12 noon agents. It is created and submitted by contains documents other than rules or and from 1 p.m. to 4 p.m., Monday State and foreign program officials, peer proposed rules that are applicable to the through Friday (except official Federal review panel members, accredited public. Notices of hearings and investigations, holidays). Persons wanting to visit the certifying agents, organic inspectors, committee meetings, agency decisions and USDA South Building to view certified organic producers and rulings, delegations of authority, filing of petitions and applications and agency comments received in response to this handlers, those seeking accreditation or statements of organization and functions are notice are requested to make an certification, and parties interested in examples of documents appearing in this appointment in advance by calling (202) changing the National List. section. 720–3252. Additionally, it necessitates that all of FOR FURTHER INFORMATION CONTACT: Toni these entities have procedures and Strother, Agricultural Marketing space for recordkeeping. DEPARTMENT OF AGRICULTURE Specialist, Standards Division, USDA. USDA is the accrediting Telephone: (202) 720–3252. authority. USDA accredits domestic and Agricultural Marketing Service SUPPLEMENTARY INFORMATION: foreign certifying agents who certify [Doc. No. AMS–NOP–10–0046; NOP–10–02] Title: National Organic Program. domestic and foreign organic producers OMB Number: 0581–0191. and handlers, using information from National Organic Program Request for Expiration Date of Approval: October the agents documenting their business an Extension of a Currently Approved 31, 2010. operations and program expertise. Information Collection Type of Request: Extension of a USDA also permits States to establish currently approved information their own organic certification programs AGENCY: Agricultural Marketing Service, collection. after the programs are approved by the USDA. Abstract: The Organic Foods Secretary, using information from the ACTION: Notice and request for Production Act of 1990 (OFPA) as States documenting their ability to comments. amended (7 U.S.C. 6501–6522) operate such programs and showing that mandates that the Secretary develop a such programs meet the requirements of SUMMARY: In accordance with the NOP to accredit eligible State program’s OFPA and NOP. Paperwork Reduction Act of 1995 (44 governing State officials or private States. States may operate their own U.S.C. Chapter 35), this notice persons as certifying agents who would organic certification programs. State announces the Agricultural Marketing certify producers or handlers of officials obtain the Secretary’s approval Service’s intention to request approval agricultural products that have been of their programs by submitting from the Office of Management and produced using organic methods as information to USDA documenting their Budget, for an extension of the currently provided for in OFPA. This regulation: ability to operate such programs and approved information collection (1) Established national standards showing that such programs meet the National Organic Program (NOP) Record governing the marketing of certain requirements of OFPA and NOP. The Keeping Requirements. agricultural products as organically Secretary, or delegated representative, DATES: Comments received by July 27, produced products; (2) assures will review a State organic program not 2010 will be considered. consumers that organically produced less than once during each 5-year period ADDRESSES: Interested persons are products meet a consistent standard; following the date of the initial program invited to submit written comments and (3) facilitates interstate commerce approval. To date, one State organic concerning this notice. Comments must in fresh and processed food that is certification program is approved by be sent to Toni Strother, Agricultural organically produced. USDA. The initial burden for each State Marketing Specialist, National Organic Reporting and recordkeeping are organic certification program is an Program, AMS/USDA, 1400 essential to the integrity of the organic average of 40 hours or if calculated at Independence Ave., SW., Room 2646– certification system. They create a paper a rate of $32 per hour (rounded up to So., Ag Stop 0268, Washington, DC trail that is a critical element in carrying the next dollar) $1,280. State organic 20250–0268 or by Internet: http:// out the mandate of OFPA and NOP. certification programs require reporting www.regulations.gov. Written comments They serve the AMS mission, program and recordkeeping burdens similar to responding to this notice should be objectives, and management needs by those required by the NOP. The average identified with the document number providing information on the efficiency annual burden for States are 55 hours or AMS–NOP–10–0046; NOP–10–02. It is and effectiveness of the program. The if calculated at a rate of $32 per hour USDA’s intention to have all comments information affects decisions because it (rounded up to the next dollar) $1,760. concerning this notice, including names is the basis for evaluating compliance Certifying agents. Certifying agents are and addresses when provided, with OFPA and NOP, for administering State, private, or foreign entities who are regardless of submission procedure the program, for management decisions accredited by USDA to certify domestic used, available for viewing on the and planning, and for establishing the and foreign producers and handlers as Regulations.gov (http:// cost of the program. It supports organic in accordance with OFPA and www.regulation.gov) Internet site. administrative and regulatory actions in NOP. Each entity wanting to be an agent Comments submitted in response to this response to noncompliance with OFPA seeks accreditation from USDA, notice will also be available for viewing and NOP. submitting information documenting its in person at USDA–AMS, National In general, the information collected business operations and program Organic Program, Room 2624–South is used by USDA, State program expertise. Accredited agents determine Building, 1400 Independence Ave., SW., governing State officials, and certifying if a producer or handler meets organic

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requirements, using detailed Organic inspectors. Inspectors, on is included. Also included is the time information from the operation behalf of certifying agents, conduct on- spent deciding about use of the USDA documenting its specific practices and site inspections of certified operations seal, a State emblem, or the seal, logo, on-site inspection reports from organic and operations applying for or other identifying marks of a private inspectors. Initial estimates were based certification. They determine whether or certifying agent (§§ 205.300–205.310). on 59 entities applying for accreditation not certification should continue or be Because the labeling requirements are in (13 State certifiers, 36 private entities, granted and report their findings to the addition to Food and Drug 10 foreign entities). The initial burden certifying agent. Inspectors are the Administration and Food Safety and for each State certifier was an average of agents themselves, employees of the Inspection Service requirements, the 695 hours or if calculated at a rate of agents, or individual contractors. We burden measurement does not include $27 per hour (rounded up to the next estimate that about half are certifying the hours necessary to develop the dollar) $18,765. The initial burden for agents or their employees and half are entire label. For purposes of calculating each private or foreign entity was 700 individual contractors. Individuals who the burden, it is estimated that each hours or if calculated at a rate of $27 per apply for positions as inspectors submit handler develops 20 labels annually. hour (rounded up to the next dollar) to the agents information documenting Estimates: 8,532 certified handlers. The $18,900. Currently, 97 certifying agents their qualifications to conduct such annual burden for each certified handler (21 State certifiers, 33 private entities, inspections. Estimates: 293 inspectors is an average of 1 hour per product label 43 foreign entities) have been (147 certifying agents and their times 20 product labels per handler or accredited. The AMS anticipates employees, 146 individual contractors). if calculated at a rate of $32 per hour receiving approximately 3 new The annual burden for each inspector is (rounded up to the next dollar) $640. applications per year. Accredited an average of 1 hour or if calculated at Interested parties. Any interested certifying agents submit annual updates $32 per hour (rounded up to the next party may petition the National Organic with an annual burden, for each dollar) $32. Standards Board (NOSB) for the purpose certifying agent, of an average of 11 Producers and handlers. Producers of having a substance evaluated for hours or if calculated at a rate of $32 per and handlers, domestic and foreign, recommendation to the Secretary for hour (rounded up to the next dollar) apply to certifying agents for organic inclusion on or deletion from the $352. certification, submit detailed National List. Estimates: 25 interested Administrative costs for reporting, information documenting their specific parties may petition the NOSB. The disclosure of information, and practices, provide annual updates to annual burden for each interested party recordkeeping vary among certifying continue their certification, and report is an average of 104 hours or if agents. Factors affecting costs include changes in their practices. Producers calculated at $32 per hour (rounded up include farmers, livestock and poultry the number and size of clients, the to the next dollar) $3,328. producers, and wild crop harvesters. categories of certification provided, and Estimate of Burden: Public reporting Handlers include those who transport or the type of systems maintained. burden for this collection of information transform food and include millers, bulk is estimated to average 1.303 hours per When an entity applies for distributors, food manufacturers, accreditation as a certifying agent, it response. processors, repackagers, or packers. Respondents: Producers, handlers, must provide a copy of its procedures Some handlers are part of a retail certifying agents, inspectors and State, for complying with recordkeeping operation that processes organic Local or Tribal governments and requirements (§ 205.504(b)(3)). Once products in a location other than the interested parties. certified, agents have to make their premises of the retail outlet. Estimated Number of Respondents: records available for inspection and The OFPA requires certified operators 32,600. copying by authorized representatives of to maintain their records for 5 years. We Estimated Number of Responses: the Secretary (§ 205.501(a)(9)). The estimate: 36,147 total operators (31,000 776,407. USDA charges certifying agents for the certified and 5,147 exempt), including Estimated Number of Responses per time required to do these document 27,102 producers (22,128 certified and Respondent: 23.8. reviews. Audits require less time when 4,974 exempt) and 8,705 handlers (8,532 Estimated Total Annual Burden on the documents are well organized and certified and 173 exempt). The annual Respondents: 1,011,647. centrally located. recordkeeping burden for each certified Comments are invited on: (1) Whether Recordkeeping requirements for operator is an average of 5 hours or if the proposed collection of information certifying agents are divided into three calculated at $32 per hour (rounded up is necessary for the proper performance categories of records with varying to the next dollar) $160. of the functions of the agency, including retention periods: (1) Records created by Administrative costs for reporting and whether the information will have certifying agents regarding applicants recordkeeping vary among certified practical utility; (2) the accuracy of the for certification and certified operations, operators. Factors affecting costs agency’s estimate of the burden of the maintain 10 years, consistent with include the type and size of operation, proposed collection of information OFPA’s requirement for maintaining all and the type of systems maintained. including the validity of the records concerning activities of Research studies have indicated that methodology and assumptions used; (3) certifying agents; (2) records obtained operations using product labels ways to enhance the quality, utility, and from applicants for certification and containing the term ‘‘organic’’ handle an clarity of the information to be certified operations, maintain 5 years, average of 20 labels annually and that collected; and (4) ways to minimize the the same as OFPA’s requirement for the there are about 8,532 handlers with the burden of the collection of information retention of records by certified term organic on their label. An estimate on those who are to respond, including operations; and (3) records created or of the time needed to develop labels for the use of appropriate automated, received by certifying agents regarding products sold, labeled, or represented as electronic, mechanical, or other accreditation, maintain 5 years, ‘‘100 percent organic,’’ ‘‘organic,’’ ‘‘made technological collection techniques or consistent with OFPA’s requirement for with organic (specified ingredients),’’ or other forms of information technology. renewal of agent’s accreditation (§ 205.5 which use the term organic to modify an All responses to this notice will be 10(b)). ingredient in the ingredients statement summarized and included in the request

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for OMB approval. All comments will resources agencies to manage agency U.S. Geological Survey: Form 9–2080, become a matter of public record. volunteer programs. Information is USGS Individual Volunteer Agreement. Authority: 7 U.S.C. 6501–6522. collected from potential and selected National Park Service: Form 10–67, volunteers of all ages. Those under the Volunteer Claim for Reimbursement. Dated: May 24, 2010. age of 18 years must have written Estimate of Annual Burden: 15 Rayne Pegg, consent from a parent or guardian. minutes. Administrator, Agricultural Marketing Type of Respondents: Individuals. Participating Agencies Service. Estimated Annual Number of [FR Doc. 2010–12833 Filed 5–27–10; 8:45 am] The volunteer programs of the Respondents: 400,000. BILLING CODE P following natural resource agencies are Estimated Annual Number of included: Responses per Respondent: 5. Department of Agriculture: U.S. Estimated Total Annual Burden on DEPARTMENT OF AGRICULTURE Forest Service and Natural Resources Respondents: 500,000 hours. Conservation Service; Forest Service Comment is invited: Department of the Interior: National Comment is invited on: (1) Whether Information Collection; Volunteer Park Service, Fish and Wildlife Service, this collection of information is Application for Natural Resources Bureau of Land Management, Bureau of necessary for the stated purposes and Agencies Reclamation, and U.S. Geological the proper performance of the functions Survey; of the Agency, including whether the AGENCY: Forest Service, USDA. Department of Defense: U.S. Army information will have practical or ACTION: Notice; request for comment. Corps of Engineers; scientific utility; (2) the accuracy of the Department of Commerce: National SUMMARY: In accordance with the Agency’s estimate of the burden of the Oceanic and Atmospheric collection of information, including the Paperwork Reduction Act of 1995, the Administration. Forest Service is seeking comments validity of the methodology and from all interested individuals and Forms assumptions used; (3) ways to enhance the quality, utility, and clarity of the organizations on the extension with OF–301 Volunteer Application: information to be collected; and (4) revision of a currently approved Individuals interested in volunteering ways to minimize the burden of the information collection entitled, may access the National Federal collection of information on Volunteer Application for Natural volunteer opportunities Web site respondents, including the use of Resources Agencies. (http://www.volunteer.gov/gov/ automated, electronic, mechanical, or DATES: Comments must be received in index.cfm), individual agency Web other technological collection writing on or before July 27, 2010 to be sites, and/or contact agencies to request techniques or other forms of information assured of consideration. Comments a Volunteer Application (OF–301). received after that date will be Applicants provide name, address, technology. considered to the extent practicable. telephone number, age, preferred work All comments received in response to this notice, including names and ADDRESSES: Comments concerning this categories, available dates, preferred addresses when provided, will be a notice should be addressed to Merlene location, description of physical matter of public record. Comments will Mazyck, Youth & Volunteer Programs, limitations, and lodging preferences. be summarized and included in the Forest Service, USDA, 1400 Information collected using this form submission request toward Office of Independence Avenue, SW., Mailstop assists agency volunteer coordinators Management and Budget approval. 1136, Washington, DC 20250–1136. and other personnel in matching Comments also may be submitted via volunteers with agency opportunities Dated: May 24, 2010. e-mail to: [email protected]. appropriate for an applicant’s skills and William E. Timko, The public may inspect comments physical condition and availability. Acting Deputy Chief, National Forest System. received at Forest Service, USDA, 1621 Signature of a parent or guardian is [FR Doc. 2010–12945 Filed 5–27–10; 8:45 am] N. Kent Street, Rosslyn Plaza East, mandatory for applicants under 18 years BILLING CODE 3410–11–P Room 1010, Arlington, VA during of age. normal business hours. Visitors are OF–301A Volunteer Agreement: This encouraged to call ahead to 703–605– form is used by participating resource DEPARTMENT OF AGRICULTURE 4831 to facilitate entry to the building. agencies to document agreements for FOR FURTHER INFORMATION CONTACT: volunteer services between a Federal Animal and Plant Health Inspection Merlene Mazyck, Youth & Volunteer agency and individual or group Service volunteers, including international Programs, 202–205–0650. Individuals [Docket No. APHIS–2010–0047] who use telecommunication devices for volunteers. Signature of parent or the deaf (TDD) may call the Federal guardian is mandatory for applicants Environmental Impact Statement; Relay Service (FRS) at 1–800–877–8339, under 18 years of age. Determination of Nonregulated Status between 8 a.m. and 8 p.m., Eastern Forms unique to participating of Sugar Beet Genetically Engineered Standard time, Monday through Friday. agencies: The forms listed below gather for Tolerance to the Herbicide SUPPLEMENTARY INFORMATION: information necessary to reimburse Glyphosate Title: Volunteer Application for volunteers for approved, miscellaneous Natural Resources Agencies. expenses associated with volunteer AGENCY: Animal and Plant Health OMB Number: 0596–0080. assignments and record service time of Inspection Service, USDA. Expiration Date of Approval: volunteers. ACTION: Notice of intent to prepare an 10/31/2010. U.S. Forest Service: FS–6500–299, environmental impact statement and Type of Request: Extension with Volunteers Request for Reimbursement. proposed scope of study. Revision. U.S. Fish and Wildlife Service: Abstract: The collected information is Volunteer Time Sheet; SF–1164, Claim SUMMARY: We are advising the public needed by participating natural for Miscellaneous Expenses. that the Animal and Plant Health

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Inspection Service plans to prepare an produced through genetic engineering environmental analysis provided by the environmental impact statement in that are plant pests or that there is Environmental Protection Agency (EPA) connection with a court-mandated reason to believe are plant pests. Such and other data or analysis prepared by evaluation of the potential impacts on genetically engineered organisms and other agencies. APHIS has requested the human environment associated with products are considered ‘‘regulated that EPA serve as a cooperating agency. the Agency’s determination of articles.’’ The regulations in § 340.6(a) This notice identifies potential issues nonregulated status for a Monsanto/ provide that any person may submit a and reasonable alternatives that we are KWS SAAT AG sugar beet line, petition to the Animal and Plant Health considering addressing, and requests designated as event H7–1. This notice Inspection Service (APHIS) seeking a public comment on the inclusion of identifies the environmental and determination that an article should not these or related issues and alternatives interrelated economic issues raised by be regulated under 7 CFR part 340. in the EIS. the Court and other potential issues that Paragraphs (b) and (c) of § 340.6 Management practices for organic we may include in the environmental describe the form that a petition for a sugar beet, conventional sugar beet, and impact statement and requests public determination of nonregulated status glyphosate-tolerant sugar beet. What are comment to further delineate the scope must take and the information that must the management practices and of the issues and reasonable be included in the petition. associated costs of establishing, alternatives. On October 19, 2004, APHIS growing, harvesting, and marketing published a notice in the Federal DATES: We will consider all comments sugar beet, including selling prices and Register (69 FR 61466–61467, Docket premiums for the various types of sugar that we receive on or before June 28, No. 04–075–1) announcing receipt of a 2010. beet? What crop rotation regimes are petition from Monsanto/KWS SAAT AG used with sugar beet? ADDRESSES: You may submit comments requesting a determination of Production levels of organic and by either of the following methods: nonregulated status under 7 CFR part • conventional sugar beet, Swiss chard, Federal eRulemaking Portal: Go to 340 for sugar beet (Beta vulgaris ssp. and table beet by region, State, and http://www.regulations.gov/fdmspublic/ vulgaris) designated as event H7–1, county. What is the acreage of component/ which has been genetically engineered cultivated, volunteer, or feral sugar main?main=DocketDetail&d=APHIS– for tolerance to the herbicide beet? What is the acreage of Swiss chard 2010–0047 to submit or view public glyphosate. The petition stated that this and table beet? Which regions of the comments and to view supporting and article should not be regulated by country may be affected as a result of a related materials available APHIS because it does not present a determination of nonregulated status for electronically. plant pest risk. APHIS also announced glyphosate-tolerant sugar beet? What are • in that notice the availability of a draft Postal Mail/Commercial Delivery: the potential impacts on adjacent, environmental assessment (EA) for the Please send one copy of your comment nonagricultural lands such as natural proposed determination of nonregulated to Docket No. APHIS–2010–0047, areas, forested lands, or transportation status. Following review of public Regulatory Analysis and Development, routes that may result from the use of comments and completion of the EA, we PPD, APHIS, Station 3A–03.8, 4700 glyphosate-tolerant sugar beet? published another notice in the Federal River Road Unit 118, Riverdale, MD Potential impacts of glyphosate- Register on March 17, 2005 (70 FR 20737–1238. Please state that your tolerant sugar beet cultivation on comment refers to Docket No. APHIS– 13007–13008, Docket No. 04–075–2), advising the public of our livestock production systems. What are 2010–0047. the potential impacts of glyphosate- Reading Room: You may read any determination, effective March 4, 2005, tolerant sugar beet cultivation on comments that we receive on this that the Monsanto/KWS SAAT AG sugar conventional and organic livestock docket in our reading room. The reading beet event H7–1 was no longer production systems? room is located in room 1141 of the considered a regulated article under Potential impacts on food and feed. USDA South Building, 14th Street and APHIS regulations in 7 CFR part 340. Does glyphosate affect the Independence Avenue, SW., On September 21, 2009, the U.S. socioeconomic value of food or feed or Washington, DC. Normal reading room District Court for the Northern District its nutritional quality? What are the hours are 8 a.m. to 4:30 p.m., Monday of California issued a ruling in a lawsuit impacts, if any, on food or feed through Friday, except holidays. To be filed by two organic seed groups and socioeconomic value or its nutritional sure someone is there to help you, two nonprofit organizations challenging quality from the use of glyphosate? please call (202) 690–2817 before our decision to deregulate sugar beet Differences in weediness traits of coming. event H7–1 (referred to in the lawsuit as Roundup Ready® sugar beet), pursuant conventional sugar beet versus FOR FURTHER INFORMATION CONTACT: Dr. to the National Environmental Policy glyphosate-tolerant sugar beet. What are Andrea Huberty, Biotechnology Act (NEPA) of 1969, as amended (42 the differences, if any, in weediness Regulatory Services, APHIS, 4700 River U.S.C. 4321 et seq.), the Administrative traits of conventional sugar beet versus Road Unit 147, Riverdale, MD 20737– Procedure Act, and the Plant Protection glyphosate-tolerant sugar beet under 1236; (301) 734–0485. Act. Under the provisions of NEPA, managed crop production systems, as SUPPLEMENTARY INFORMATION: The agencies must examine the potential well as in unmanaged ecosystems? regulations in 7 CFR part 340, environmental impacts of proposed Occurrence of common and serious ‘‘Introduction of Organisms and Federal actions. The Court ruled that weeds found in organic sugar beet Products Altered or Produced Through APHIS’ EA failed to consider certain systems, in conventional sugar beet Genetic Engineering Which Are Plant environmental and interrelated systems, and in glyphosate-tolerant Pests or Which There Is Reason to economic impacts. As a result, the Court sugar beet systems. What are the Believe Are Plant Pests,’’ regulate, stated that APHIS is required to prepare impacts of weeds, herbicide-tolerant among other things, the introduction an environmental impact statement weeds, weed management practices, and (importation, interstate movement, or (EIS). Accordingly, APHIS plans to unmet weed management needs for release into the environment) of prepare an EIS. In doing so, APHIS will organic and conventional sugar beet organisms and products altered or utilize as appropriate any cultivation? How may the weed impacts

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change with the use of glyphosate- from other unwanted, unintended, or on threatened and endangered species tolerant sugar beet? unexpected sugar beet? as a result of displacing other Management practices for controlling Economic and social impacts on herbicides? weeds in organic sugar beet systems, in organic and conventional sugar beet, Potential health impacts. What are the conventional sugar beet systems, and in Swiss chard, and table beet farmers. potential health impacts to farmers or glyphosate-tolerant sugar beet systems. What are the economics of growing others who would be exposed to What are the potential changes in crop organic sugar beet, conventional sugar glyphosate-tolerant sugar beet? rotation practices and weed beet, or glyphosate-tolerant sugar beet as Can any potential negative management practices for control of well as the economics of growing environmental impacts of the action be volunteer sugar beet or herbicide- organic or conventional Swiss chard mitigated and what is the likelihood tolerant weeds in rotational crops that and table beet? What are the potential that such mitigation measures will be may occur with the use of glyphosate- impacts of the presence of glyphosate- successfully implemented and effective? tolerant sugar beet? What are the tolerant sugar beet caused by pollen What is the likely effectiveness of the potential effects on sugar beet stand movement or seed admixtures? What are stewardship measures, outlined in the termination and renovation practices the potential impacts of commingling petition, which are designed to reduce that may occur with the use of sugar beet seed with glyphosate-tolerant inadvertent gene flow to negligible glyphosate-tolerant sugar beet? sugar beet seed? What are the potential levels as well as to monitor and Cumulative impact on the changes in the economics of growing minimize the potential development of development of glyphosate-resistant and marketing organic and conventional glyphosate-tolerant weeds? Are there weeds. What glyphosate-resistant weeds sugar beet that may occur with the reasonable alternative stewardship or have been identified and what is their growing of glyphosate-tolerant sugar monitoring measures that may avoid or occurrence in crops and in non-crop beet? What are the potential changes in minimize reasonably foreseeable ecosystems? How would the addition of production levels of other crops that environmental impacts of a deregulation glyphosate-tolerant sugar beet impact may occur with the growing of decision? the occurrence of glyphosate-resistant glyphosate-tolerant sugar beet? Will the Impacts of the mitigation measures on weeds in sugar beet, in other crops, and cultivation of glyphosate-tolerant sugar coexistence with organic and in the environment? Which are the most beet result in more or fewer acres of conventional sugar beet production and likely weeds, if any, to gain glyphosate other crops? What are the potential on export markets. What are the changes in growing practices, resistance and why would they gain potential impacts of mitigation management practices, and crop such resistance with the use of measures on coexistence with organic rotational practices in the production of glyphosate-tolerant sugar beet? What are and conventional sugar beet production sugar beet seed for planting purposes the current and potentially effective and on export markets? Are there that may occur with the use of strategies for management of glyphosate- reasonable alternative measures that glyphosate-tolerant sugar beet? What are tolerant or other herbicide-tolerant may avoid or minimize reasonably the potential changes in the choice of weeds in glyphosate-tolerant sugar beet foreseeable impacts on organic and seeds available for organic and stands or in subsequent crops? What are conventional sugar beet production and conventional sugar beet farmers that the potential changes that may occur in on export markets that may be may occur with the use of glyphosate- glyphosate-tolerant sugar beet as to tolerant sugar beet? associated with a deregulation decision? susceptibility or tolerance to other Cumulative impact of potential Consideration of reasonable herbicides? increased glyphosate usage with the alternatives. The EIS will consider a Current or prospective herbicide- cultivation of glyphosate-tolerant crops. range of reasonable alternatives. These tolerant weed mitigation options. What What are the past, present, and future could include continued regulation of ® are the potential impacts of current or impacts of glyphosate usage on soil Roundup Ready sugar beets, ® prospective herbicide-tolerant weed quality, water quality, air quality, weed deregulating Roundup Ready sugar ® mitigation options, including those populations, crop rotations, soil beets, deregulating Roundup Ready addressed by the EPA-approved label microorganisms, diseases, insects, soil sugar beets in part with geographic for glyphosate herbicides? fertility, food or feed quality, crop restrictions, or deregulating Roundup ® Potential for gene flow from acreages, and crop yields as a result of Ready sugar beets in part with glyphosate-tolerant sugar beet to other the introduction of glyphosate-tolerant required separation distances from Beta species, including gene flow crops? Does the level of glyphosate sexually compatible crops. Comments between seed fields, root crops, and tolerance within glyphosate-tolerant that identify other reasonable feral plants. To what extent will sugar beet plants have an impact on the alternatives that should be examined in deregulation change hybridization amount of glyphosate applied on the the EIS would be especially helpful. between cultivated and feral sugar beet, glyphosate-tolerant sugar beet crop on a Sugar beet growth, crop management, sugar beet introgression or routine basis? and crop utilization may vary establishment outside of cultivated Impacts on threatened or endangered considerably by geographic region, and lands, and sugar beet persistence or species. What are the potential impacts therefore, when providing comments on weediness in situations where it is of glyphosate-tolerant sugar beet a topic or issue, please provide relevant unwanted, unintended, or unexpected? cultivation on listed threatened or information on the specific locality or What are the potential impacts endangered species, or on species region in question. Additionally, we associated with feral glyphosate-tolerant proposed for listing? What are the invite the participation of any affected sugar beet plants? Will the removal of potential impacts of glyphosate use on Federal, State, or local agencies or glyphosate-tolerant sugar beet, in listed threatened or endangered species Tribes. situations where it is unwanted, or species proposed for listing, All comments on this notice will be unintended, or unexpected, result in including glyphosate used on carefully considered in developing the adverse impacts? In such situations, glyphosate-tolerant sugar beet? What final scope of the EIS. Upon completion how will glyphosate-tolerant sugar beet impacts does the addition of glyphosate of the draft EIS, a notice announcing its be controlled or managed differently tolerance in sugar beet cultivation have availability and an invitation to

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comment on it will be published in the Dated: May 13, 2010. of sales at less than fair value in the Federal Register. Travis Moseley, antidumping duty investigation of Done in Washington, DC, this 25th day of District Ranger. certain seamless carbon and alloy steel May 2010. [FR Doc. 2010–12714 Filed 5–27–10; 8:45 am] standard, line, and pressure pipe Kevin Shea, BILLING CODE 3410–11–M (‘‘seamless pipe’’) from the People’s ‘‘ ’’ Acting Administrator, Animal and Plant Republic of China ( PRC ). As a result, Health Inspection Service. we are amending our preliminary [FR Doc. 2010–12997 Filed 5–26–10; 11:15 am] ARCTIC RESEARCH COMMISSION determination to correct certain significant ministerial errors with BILLING CODE 3410–34–P Notice of Meeting respect to the antidumping duty margins for a mandatory respondent and May 10, 2010. DEPARTMENT OF AGRICULTURE for exporters eligible for a separate rate. Notice is hereby given that the U.S. FOR FURTHER INFORMATION CONTACT: Forest Service Arctic Research Commission will hold Magd Zalok, Import Administration, its 93rd meeting in Washington, DC, on International Trade Administration, Kenai Peninsula-Anchorage Borough June 2–3, 2010. The business session, U.S. Department of Commerce, 14th Resource Advisory Committee open to the public, will convene June 3 Street and Constitution Avenue, NW, at 8:30 a.m. Washington, DC 20230; telephone: (202) AGENCY: Forest Service, USDA. The Agenda items include: 482–4162. (1) Call to order and approval of the ACTION: Notice of meeting. SUPPLEMENTARY INFORMATION: agenda. On April (2) Approval of the minutes from the 28, 2010, the Department published its SUMMARY: The Kenai Peninsula- affirmative preliminary determination Anchorage Borough Resource Advisory 92nd meeting. (3) Commissioners and staff reports. in this proceeding. See Certain Seamless Committee will convene for their first Carbon and Alloy Steel Standard, Line, formal meeting in Portage Valley, (4) Discussion and presentations concerning Arctic research activities. and Pressure Pipe From the People’s Alaska, for the purpose of establishing Republic of China: Preliminary the Committee through the development The focus of the meeting will be reports and updates on programs and Determination of Sales at Less Than of bylaws, a chairperson, and a future Fair Value, Affirmative Preliminary meeting schedule, under the provisions research projects affecting the Arctic. If you plan to attend this meeting, Determination of Critical of Title II of the Secure Rural Schools please notify us via the contact Circumstances, in Part, and and Community Self-Determination Act information below. Any person Postponement of Final Determination, of 2008 (Pub. L. 110–343). planning to attend who requires special 75 FR 22372 (April 28, 2010) DATES: The meeting will be held on accessibility features and/or auxiliary (‘‘Preliminary Determination’’). On May Saturday, June 12, 2010. aids, such as sign language interpreters, 3, 2010, Tianjin Pipe (Group) Corporation and Tianjin Pipe ADDRESSES: The meeting will take place must inform the Commission of those International Economic and Trading at the Begich Boggs Visitor’s Center, 800 needs in advance of the meeting. Corporation (collectively ‘‘TPCO’’) Portage Lake Loop, Portage, AK 99587. Contact person for further information: John Farrell, Executive submitted ministerial error allegations Send written comments to Kenai Director, U.S. Arctic Research with respect to the margin calculations Peninsula-Anchorage Borough Resource Commission, 703–525–0111 or TDD for TPCO in the Preliminary Advisory Committee, c/o USDA Forest 703–306–0090. Determination, alleging certain errors in Service, P.O. Box 390, Seward, AK conversion, arithmetic, and surrogate 99664 or electronically to John Farrell, value calculations. No other interested [email protected]. Executive Director. party submitted ministerial error FOR FURTHER INFORMATION CONTACT: [FR Doc. 2010–12712 Filed 5–27–10; 8:45 am] allegations. After reviewing TPCO’s Travis Moseley, Designated Federal BILLING CODE 7555–01–M allegations, we have determined that the Official, c/o USDA Forest Service, P.O. Preliminary Determination contains Box 390, Seward, AK 99664, telephone ministerial errors. We agree that the (907) 288–7730. DEPARTMENT OF COMMERCE ministerial errors are ‘‘significant’’ as that term is defined in 19 CFR SUPPLEMENTARY INFORMATION: The International Trade Administration 351.224(g). Therefore, pursuant to 19 agenda will include background on the [A–570–956] CFR 351.224(e), we have made changes provisions of Title II of the Secure Rural to the Preliminary Determination. Schools and Community Self- Certain Seamless Carbon and Alloy Scope of Investigation Determination Act of 2008 (Pub. L. 110– Steel Standard, Line, and Pressure 343) and an overview of the Federal Pipe from the People’s Republic of The merchandise covered by this Advisory Committee Act (FACA). In China: Amended Preliminary investigation is certain seamless carbon addition, the agenda will include time Determination of Sales at Less Than and alloy steel (other than stainless for the Committee to develop and adopt Fair Value steel) pipes and redraw hollows, less bylaws, a chairperson, and a future than or equal to 16 inches (406.4 mm) meeting schedule to discuss project AGENCY: Import Administration, in outside diameter, regardless of wall– proposals. International Trade Administration, thickness, manufacturing process (e.g., All Resource Advisory Committee Department of Commerce. hot–finished or cold–drawn), end finish Meetings are open to the public. The EFFECTIVE DATE: May 28, 2010. (e.g., plain end, beveled end, upset end, public input and comment forum will SUMMARY: The Department of Commerce threaded, or threaded and coupled), or take place in the afternoon of June 12, (‘‘Department’’) has determined that it surface finish (e.g., bare, lacquered or 2010. Interested citizens are encouraged made certain significant ministerial coated). Redraw hollows are any to attend. errors in the preliminary determination unfinished carbon or alloy steel (other

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than stainless steel) pipe or ‘‘hollow 7304.51.5060, 7304.59.6000, After reviewing the ministerial error profiles’’ suitable for cold finishing 7304.59.8010, 7304.59.8015, allegations submitted by TPCO in its operations, such as cold drawing, to 7304.59.8020, 7304.59.8025, May 3, 2010, submission, the meet the American Society for Testing 7304.59.8030, 7304.59.8035, Department agrees that some of the and Materials (‘‘ASTM’’) or American 7304.59.8040, 7304.59.8045, errors alleged by TPCO are ministerial Petroleum Institute (‘‘API’’) 7304.59.8050, 7304.59.8055, errors within the meaning of 19 CFR specifications referenced below, or 7304.59.8060, 7304.59.8065, and 351.224(f), and that these errors are comparable specifications. Specifically 7304.59.8070. significant pursuant to 19 CFR included within the scope are seamless Although the HTSUS subheadings are 351.224(e). We are amending the carbon and alloy steel (other than provided for convenience and customs Preliminary Determination to correct purposes, our written description of the stainless steel) standard, line, and these ministerial errors. See the merchandise subject to this scope is pressure pipes produced to the ASTM ‘‘Ministerial Error Memorandum, dispositive. A–53, ASTM A–106, ASTM A–333, Amended Preliminary Determination of ASTM A–334, ASTM A–335, ASTM A– Ministerial–Error Allegations Sales at Less Than Fair Value: Certain 589, ASTM A–795, ASTM A–1024, and A ministerial error is defined as an Seamless Carbon and Alloy Steel the API 5L specifications, or comparable error in addition, subtraction, or other Standard, Line, and Pressure Pipe from specifications, and meeting the physical arithmetic function, clerical error the People’s Republic of China,’’ dated parameters described above, regardless resulting from inaccurate copying, concurrently with this Federal Register of application, with the exception of the duplication, or the like, and any other notice, for a discussion of the exclusion discussed below. Specifically similar type of unintentional error ministerial error allegations. See also excluded from the scope of the which the Secretary considers Appendix I for a list of the ministerial investigation are unattached couplings. ministerial. See 19 CFR 351.224(f). A error allegations. The merchandise covered by the significant ministerial error is defined as The collection of bonds or cash investigation is currently classified in a ministerial error, the correction of deposits and suspension of liquidation the Harmonized Tariff Schedule of the which, singly or in combination with will be revised accordingly and parties United States (‘‘HTSUS’’) under item other errors, (1) would result in a will be notified of this determination, in numbers: 7304.19.1020, 7304.19.1030, change of at least five absolute 7304.19.1045, 7304.19.1060, percentage points in, but not less than accordance with section 733(d) and (f) 7304.19.5020, 7304.19.5050, 25 percent of, the weighted–average of the Act. 7304.31.6050, 7304.39.0016, dumping margin calculated in the Amended Preliminary Determination 7304.39.0020, 7304.39.0024, original (erroneous) preliminary 7304.39.0028, 7304.39.0032, determination; or (2) would result in a As a result of our correction of 7304.39.0036, 7304.39.0040, difference between a weighted–average significant ministerial errors in the 7304.39.0044, 7304.39.0048, dumping margin of zero or de minimis Preliminary Determination, we have 7304.39.0052, 7304.39.0056, and a weighted–average dumping determined that the following 7304.39.0062, 7304.39.0068, margin of greater than de minimis or weighted–average dumping margin 7304.39.0072, 7304.51.5005, vice versa. See 19 CFR 351.224(g). applies:

Tianjin Pipe International Economic and Trading Corporation ...... 22.67% Produced by:Tianjin Pipe (Group) Corporation. Xigang Seamless Steel Tube Co., Ltd...... 57.30% Produced by: Xigang Seamless Steel Tube Co., Ltd., and Wuxi Seamless Special Pipe Co., Ltd.. Jiangyin City Changjiang Steel Pipe Co., Ltd...... 57.30% Produced by: Jiangyin City Changjiang Steel Pipe Co., Ltd.. Pangang Group Chengdu Iron & Steel Co., Ltd...... 57.30% Produced by: Pangang Group Chengdu Iron & Steel Co., Ltd.. Yangzhou Lontrin Steel Tube Co., Ltd...... 57.30% Produced by: Yangzhou Lontrin Steel Tube Co., Ltd.. Yangzhou Chengde Steel Tube Co., Ltd...... 57.30% Produced by: Yangzhou Chengde Steel Tube Co., Ltd..

International Trade Commission sales (or the likelihood of sales) for products from the calculation of the Notification importation, of the subject merchandise. normal value. This determination is issued and Issue 3: Whether the Department In accordance with section 733(f) of published in accordance with sections correctly added rail freight to the value the Act, we have notified the 733(f) and 777(i)(1) of the Act and 19 of ferromanganese. International Trade Commission (‘‘ITC’’) CFR 351.224(e). Issue 4: Whether the Department of our amended preliminary Dated: May 21, 2010. correctly applied the appropriate price determination. If our final Ronald K. Lorentzen, corresponding to the type of blast determination is affirmative, the ITC Deputy Assistant Secretary for Import will determine before the later of 120 Administration. furnace pellets used by TPCO. days after the date of the preliminary Issue 5: Whether the Department used Appendix I determination or 45 days after our final the correct currency conversion for the determination whether the domestic Issue 1: Whether the Department inputs of EMAG, TEFRRO, MCARBON, industry in the United States is correctly added freight costs to the and LCFERRO. surrogate value for water. materially injured, or threatened with Issue 6: Whether the Department material injury, by reason of imports, or Issue 2: Whether the Department correctly deducted the value of by– correctly valued steel billets.

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Issue 7: Whether the Department’s airport terminals, a pipeline and two DEPARTMENT OF COMMERCE calculations correctly considered the off-site terminals and related pipelines weight of the green pipe caps. in Brisbane and South San Francisco; International Trade Administration Issue 8: Whether the Department should Site 3 (55 acres)—Selby Terminal adjust the adverse facts available rate petroleum facilities, 90 San Pablo Application(s) for Duty-Free Entry of applied to TPCO’s U.S. affiliate’s Avenue, Crockett; and, Site 4 (164 Scientific Instruments downstream sales. acres)—Martinez Terminal petroleum Pursuant to Section 6(c) of the [FR Doc. 2010–12960 Filed 5–27–10; 8:45 am] facilities, 2801 Waterfront Road, Educational, Scientific and Cultural BILLING CODE 3510–DS–S Martinez. Materials Importation Act of 1966 (Pub. The grantee’s proposed service area L. 89–651, as amended by Pub. L. 106– DEPARTMENT OF COMMERCE under the ASF would be the City and 36; 80 Stat. 897; 15 CFR part 301), we County of San Francisco and the County invite comments on the question of Foreign-Trade Zones Board of San Mateo, California, as described in whether instruments of equivalent the application. If approved, the grantee scientific value, for the purposes for [Docket 39–2010] would be able to serve sites throughout which the instruments shown below are the service area based on companies’ intended to be used, are being Foreign-Trade Zone 3—San Francisco, needs for FTZ designation. The manufactured in the United States. CA; Application for Reorganization proposed service area is within and Comments must comply with 15 CFR under Alternative Site Framework adjacent to the San Francisco Customs 301.5(a)(3) and (4) of the regulations and An application has been submitted to and Border Protection port of entry. be postmarked on or before June 17, the Foreign-Trade Zones (FTZ) Board The applicant is requesting authority 2010. Address written comments to (the Board) by the San Francisco Port to reorganize its existing zone project to Statutory Import Programs Staff, Room Commission, grantee of FTZ 3, include existing sites 2, 3 and 4 as 3720, U.S. Department of Commerce, requesting authority to reorganize the ‘‘usage-driven’’ sites. The applicant is Washington, DC 20230. Applications zone under the alternative site also requesting authority to remove Site may be examined between 8:30 a.m. and framework (ASF) adopted by the Board 1 from the zone project due to changed 5 p.m. at the U.S. Department of (74 FR 1170, 1/12/09; correction 74 FR circumstances. Because the ASF only Commerce in Room 3720. 3987, 1/22/09). The ASF is an option for pertains to establishing or reorganizing Docket Number: 10–010. Applicant: grantees for the establishment or a general-purpose zone, the application University of Maine System, 16 Central reorganization of general-purpose zones would have no impact on FTZ 3’s St., Bangor, ME 04401. Instrument: Live and can permit significantly greater authorized subzones. Color Cathodoluminescence detector flexibility in the designation of new accessory for Scanning Electron ‘‘usage-driven’’ FTZ sites for operators/ In accordance with the Board’s Microscope. Manufacturer: Gatan, UK. users located within a grantee’s ‘‘service regulations, Christopher Kemp of the Intended Use: The instrument will be area’’ in the context of the Board’s FTZ Staff is designated examiner to used to study the morphology and standard 2,000-acre activation limit for evaluate and analyze the facts and microstructure of primarily geological a general-purpose zone project. The information presented in the application but also some archaeological and application was submitted pursuant to and case record and to report findings biological materials. Techniques include the Foreign-Trade Zones Act, as and recommendations to the Board. imaging using three components of light amended (19 U.S.C. 81a–81u), and the Public comment is invited from (red, green, blue) split from a regulations of the Board (15 CFR part interested parties. Submissions (original panchromatic signal induced in the 400). It was formally filed on May 21, and 3 copies) shall be addressed to the sample by an incident electron beam 2010. Board’s Executive Secretary at the inside an SEM. This instrument offers FTZ 3 was approved by the Board on address below. The closing period for live color detectors, i.e., panchromatic March 10, 1948 (Board Order 12, 13 FR their receipt is July 27, 2010. Rebuttal cathodoluminescence detectors in 1459, 3/19/48) and the boundaries were comments in response to material which the intensity of the light across modified on July 31, 1950 (Board Order submitted during the foregoing period the entire visible spectrum is measured. 25, 15 FR 1653, 9/8/50) and on may be submitted during the subsequent Justification for Duty-Free Entry: There December 20, 1956 (Board Order 43, 21 15-day period to August 11, 2010. are no domestic manufacturers of this FR 10434, 12/28/56). FTZ 3 was A copy of the application will be instrument. Application accepted by relocated on May 5, 1958 (Board Order available for public inspection at the Commissioner of Customs: April 27, 46, 23 FR 3277, 5/14/58), an extension Office of the Executive Secretary, 2010. of the relocation granted May 5, 1965 Foreign-Trade Zones Board, Room 2111, Docket Number: 10–011. Applicant: (Board Order 66, 30 FR 6596, 5/13/65) U.S. Department of Commerce, 1401 Washington University in St. Louis, and the zone was relocated again on Constitution Avenue, NW., Washington, Purchasing Dept., 1 Brookings Drive, July 13, 1977 (Board Order 121, 42 FR DC 20230–0002, and in the ‘‘Reading Campus Box 1069, St. Louis, MO 63130. 38942, 8/1/77). FTZ 3 was expanded on Room’’ section of the Board’s Web site, Instrument: Electron Microscope. November 21, 2000 (Board Order 1129, which is accessible via http:// Manufacturer: Japanese Electron-Optics, 65 FR 76217, 12/6/00). www.trade.gov/ftz. For further Limited (JEOL), Japan. Intended Use: The current zone project includes the information, contact Christopher Kemp This instrument will be used to study a following sites: Site 1 (5.82 acres)—Pier at [email protected] or (202) complete range of medically relevant 19, Pier 23, Pier 50 and Pier 80 port 482–0862. cells, tissues, and molecules and facilities on the Embarcadero, San understand the molecular and cellular Francisco; Site 2 (42.50 acres)—San Dated: May 21, 2010. basis of a wide range of human diseases. Francisco International Airport jet-fuel Andrew McGilvray, The instrument allows for techniques storage and distribution system, which Executive Secretary. including advanced forms of biological consists of the airport hydrant and [FR Doc. 2010–12957 Filed 5–27–10; 8:45 am] specimen preparation, as well as more storage facilities, two adjacent off- BILLING CODE 3510–DS–P classical procedures for fixation,

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dehydration, plastic embedding and even unstained, low-contrast samples. image dislocation behavior of fully thin-sectioning of biological materials. The instrument also allows for crystalline nanostructured metals. The Justification for Duty-Free Entry: No observation and analyses of samples at instrument will provide detailed surface instruments of same general category are both room and liquid-nitrogen structures and faceting information. manufactured in the United States. temperature. Justification for Duty-Free Justification for Duty-Free Entry: No Application accepted by Commissioner Entry: There are no domestic instruments of same general category are of Customs: April 30, 2010. manufacturers of this type of electron manufactured in the United States. Docket Number: 10–012. Applicant: microscope. Application accepted by Application accepted by Commissioner California Institute of Technology, 1200 Commissioner of Customs: May 14, of Customs: May 17, 2010. E. California Blvd., M/C 127–72, 2010. Docket Number: 10–020. Applicant: Pasadena, CA 91125. Instrument: Docket Number: 10–016. Applicant: Howard Hughes Medical Institute, 4000 Electron Microscope. Manufacturer: FEI United States Geological Survey, 6th Jones Bridge Road, Chevy Chase, MD Company, Czech Republic. Intended Ave. & Kipling St., P.O. Box 25046, 20815. Instrument: Electron Microscope. Use: The instrument will be used to MS973, Denver Federal Center, Building Manufacturer: FEI Company, Czech improve researchers’ understanding of 20, Denver, CO 80225. Instrument: Republic. Intended Use: The instrument the structural dynamics of materials like Electron Microscope. Manufacturer: FEI will be used to examine portions of graphite, as well as ultrafast structural Company, Czech Republic. Intended vertebrate and invertebrate organisms changes over time in microscopy. Use: The instrument will be used for the embedded in plastic resins and cut into Techniques used with the instrument microanalysis of rocks, minerals and thin sections mounted on support grids include imaging, both in real space and other particulate matter. Analyses of the for examination. The objective is to using diffraction. Imaging is done using morphology, surface textures, grain examine, at high resolution, the light as opposed to thermal heating or boundaries, and other properties of the ultrastructural organization of complex field ionization. Justification for Duty- materials investigated include the use of biological structures to help elucidate Free Entry: There are no domestic chemical composition and function. The instrument can be used manufacturers of this type of electron crystallographic orientation and strain. for 2D and 3D imaging of stained or microscope. Application accepted by The low vacuum and low voltage even unstained, low-contrast samples. Commissioner of Customs: May 5, 2010. features of the instrument allows for the The instrument also allows for Docket Number: 10–013. Applicant: viewing of hydrated and un-coated observation and analyses of samples at Howard Hughes Medical Institute, 4000 samples with minimal sample both room and liquid-nitrogen Jones Bridge Road, Chevy Chase, MD degradation or alteration. The advantage temperature. Justification for Duty-Free 20815. Instrument: Electron Microscope. of this instrument is that it can operate Entry: There are no domestic Manufacturer: FEI Company, Czech at high vacuum and high acceleration manufacturers of this type of electron Republic. Intended Use: The instrument voltages as well as atmospheric microscope. Application accepted by will be used to examine portions of pressures and/or low accelerating Commissioner of Customs: May 12, vertebrate and invertebrate organisms voltages while still maintaining high 2010. embedded in plastic resins and cut into resolution and high beam currents. thin sections mounted on support grids Justification for Duty-Free Entry: There Dated: May 24, 2010. for examination. The objective is to are no domestic manufacturers of this Christopher Cassel, examine, at high resolution, the type of electron microscope. Director, IA Subsidies Enforcement Office. ultrastructural organization of complex Application accepted by Commissioner [FR Doc. 2010–12962 Filed 5–27–10; 8:45 am] biological structures to help elucidate of Customs: May 18, 2010. BILLING CODE 3510–DS–P function. The instrument can be used Docket Number: 10–017. Applicant: for 2D and 3D imaging of stained or University of Massachusetts Medical even unstained, low-contrast samples. School, Department of Cell Biology, Rm. DEPARTMENT OF COMMERCE The instrument also allows for S7–210, 55 Lake Avenue North, observation and analyses of samples at Worcester, MA 01655. Instrument: Foreign-Trade Zones Board both room and liquid-nitrogen Electron Microscope. Manufacturer: FEI [Order No. 1679] temperature. Justification for Duty-Free Company, Czech Republic. Intended Entry: There are no domestic Use: The instrument will enable the Expansion of Foreign-Trade Zone 272; manufacturers of this type of electron study of tissue cell structures at high Lehigh Valley, Pennsylvania microscope. Application accepted by resolution, the recording of images on Commissioner of Customs: May 12, the Eagle CCD camera, and the Pursuant to its authority under the Foreign- 2010. observation of cryo-fixed specimens at Trade Zones Act of June 18, 1934, as Docket Number: 10–014. Applicant: low temperatures. Justification for Duty- amended (19 U.S.C. 81a–81u), the Foreign- Howard Hughes Medical Institute, 4000 Free Entry: There are no domestic Trade Zones Board (the Board) adopts the Jones Bridge Road, Chevy Chase, MD manufacturers of this type of electron following Order: 20815. Instrument: Electron Microscope. microscope. Application accepted by Whereas, the Lehigh Valley Economic Manufacturer: FEI Company, Czech Commissioner of Customs: May 12, Development Corporation, grantee of Republic. Intended Use: The instrument 2010. Foreign-Trade Zone 272, submitted an will be used to examine portions of Docket Number: 10–018. Applicant: application to the Board for authority to vertebrate and invertebrate organisms Texas Tech University, Department of expand FTZ 272 to include a site in embedded in plastic resins and cut into Mechanical Engineering, 7th Street and Bethlehem, Pennsylvania, adjacent to thin sections mounted on support grids Boston Ave., Lubbock, TX 79409–1021. the Philadelphia Customs and Border for examination. The objective is to Instrument: Electron Microscope. Protection port of entry (FTZ Docket 37– examine, at high resolution, the Manufacturer: Japanese Electron-Optics, 2009, filed 9/9/2009); ultrastructural organization of complex Limited (JEOL), Japan. Intended Use: Whereas, notice inviting public biological structures to help elucidate The instrument will be used to probe comment has been given in the Federal function. The instrument can be used the crystalline structure of materials at Register (74 FR 47920–47921, for 2D and 3D imaging of stained or a magnification beyond that required to September 18, 2009) and the application

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has been processed pursuant to the FTZ Length Carbon-Quality Steel Plate DEPARTMENT OF COMMERCE Act and the Board’s regulations; and, Products From Italy: Preliminary Results Whereas, the Board adopts the of Antidumping Duty Administrative International Trade Administration findings and recommendations of the Review, 75 FR 4779 (January 29, 2010). Initiation of Antidumping and examiner’s report, and finds that the The review covers the period February Countervailing Duty Administrative requirements of the FTZ Act and 1, 2008, through January 31, 2009. The Reviews Board’s regulations are satisfied, and final results of this administrative that the proposal is in the public review were originally due no later than AGENCY: Import Administration, interest; May 29, 2010. As explained in the International Trade Administration, Now, therefore, the Board hereby memorandum from the Deputy Department of Commerce. orders: Assistant Secretary for Import SUMMARY: The Department of Commerce The application to expand FTZ 272 is Administration, the Department has (‘‘the Department’’) has received requests approved, subject to the FTZ Act and exercised its discretion to toll deadlines to conduct administrative reviews of the Board’s regulations, including various antidumping and countervailing Section 400.28, and to the Board’s for the duration of the closure of the Federal Government from February 5 duty orders and findings with April standard 2,000-acre activation limit for anniversary dates. In accordance with the overall general-purpose zone through February 12, 2010. Thus, the deadline for the final results of this the Department’s regulations, we are project, and further subject to a sunset initiating those administrative reviews. provision that would terminate administrative review has been DATES: Effective Date: May 28, 2010. authority on May 31, 2017 for Site 9 if extended by seven days, until June 5, FOR FURTHER INFORMATION CONTACT: no activity has occurred under FTZ 2010. See Memorandum to the Record procedures before that date. from Ronald Lorentzen, DAS for Import Sheila E. Forbes, Office of AD/CVD Administration, regarding ‘‘Tolling of Operations, Customs Unit, Import Signed at Washington, DC, this 13th day of Administration, International Trade May 2010. Administrative Deadlines As a Result of the Government Closure During the Administration, U.S. Department of Ronald K. Lorentzen, Recent Snowstorm,’’ dated February 12, Commerce, 14th Street and Constitution Deputy Assistant Secretary for Import 2010. Avenue, NW., Washington, DC 20230, Administration, Alternate Chairman, Foreign- telephone: (202) 482–4697. Trade Zones Board. Extension of Time Limit for Final SUPPLEMENTARY INFORMATION: Attest: Results Andrew McGilvray, Background Executive Secretary. Section 751(a)(3)(A) of the Tariff Act The Department has received timely [FR Doc. 2010–12958 Filed 5–27–10; 8:45 am] of 1930, as amended (the Act), requires requests, in accordance with 19 CFR BILLING CODE 3510–DS–P the Department to issue the final results 351.213(b), for administrative reviews of of an administrative review within 120 various antidumping and countervailing days after the date on which the duty orders and findings with April DEPARTMENT OF COMMERCE preliminary results are published. anniversary dates. However, if it is not practicable to International Trade Administration complete the review within this time Change to the Deadlines for No- period, section 751(a)(3)(A) of the Act Shipment Letters and Separate Rate [A–475–826] Certifications allows the Department to extend the Certain Cut–to–Length Carbon–Quality time limit for the final results up to 180 Effective with this Federal Register Steel Plate Products From Italy: days after the date on which the notice, the Department is changing the Extension of the Final Results of preliminary results are published. deadline for submission of No-Shipment Letters and Separate Rate Certifications Antidumping Duty Administrative The Department finds that it is not Review from 30-days after initiation to 60-days practicable to complete this review by after initiation, as indicated in the AGENCY: Import Administration, June 5, 2010, because the Department relevant sections of this Federal International Trade Administration, requires additional time to consider the Register notice. The Department Department of Commerce. extensive comments submitted by the requires that a company under review, EFFECTIVE DATE: May 28, 2010. interested parties in relation to the which currently has a separate rate, FOR FURTHER INFORMATION CONTACT: preliminary results of this review. submit either a No-Shipment Letter or a Dmitry Vladimirov, AD/CVD Consequently, in accordance with Separate Rate Certification, as relevant Operations, Office 5, Import section 751(a)(3)(A) of the Act, the to the company’s situation, as described Administration, International Trade Department is extending the time limit in the relevant sections of this Federal Administration, U.S. Department of for completion of the final results of this Register notice, below. If a company Commerce, 14th Street and Constitution administrative review by 60 days to under review that currently has a Avenue, NW, Washington, DC 20230; August 4, 2010. separate rate fails to submit either a No- telephone: (202) 482–0665. This notice is published in Shipment Letter, a Separate Rate SUPPLEMENTARY INFORMATION: accordance with section 751(a)(3)(A) of Certification, or a Separate Rate the Act and 19 CFR 351.213(h)(2). Application (as appropriate) for this Background POR, the company will not have Dated: May 20, 2010. On January 29, 2010, the Department demonstrated its eligibility to retain its of Commerce (the Department) John M. Andersen, separate rate status and will be published the preliminary results of the Acting Deputy Assistant Secretary for considered to be part of the China-wide administrative review of the Antidumping and Countervailing Duty entity for purposes of this antidumping duty order on certain cut– Operations. administrative review. The to-length carbon–quality steel plate [FR Doc. 2010–12963 Filed 5–27–10; 8:45 am] Department’s practice remains products from Italy. See Certain Cut–to– BILLING CODE 3510–DS–S unchanged for companies that do not

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have a separate rate, i.e., a separate rate the country are subject to government Entities that currently do not have a application is due 60-days after control and, thus, should be assigned a separate rate from a completed segment initiation. single antidumping duty deposit rate. It of the proceeding 1 should timely file a is the Department’s policy to assign all Separate Rate Application to Notice of No Sales exporters of merchandise subject to an demonstrate eligibility for a separate Under 19 CFR 351.213(d)(3), the administrative review in an NME rate in this proceeding. In addition, Department may rescind a review where country this single rate unless an companies that received a separate rate there are no exports, sales, or entries of exporter can demonstrate that it is in a completed segment of the subject merchandise during the sufficiently independent so as to be proceeding that have subsequently respective period of review (‘‘POR’’) entitled to a separate rate. made changes, including, but not listed below. If a producer or exporter To establish whether a firm is limited to, changes to corporate named in this initiation notice had no sufficiently independent from structure, acquisitions of new exports, sales, or entries during the government control of its export companies or facilities, or changes to POR, it must notify the Department activities to be entitled to a separate their official company name,2 should within 60 days of publication of this rate, the Department analyzes each timely file a Separate Rate Application notice in the Federal Register. The entity exporting the subject to demonstrate eligibility for a separate Department will consider rescinding the merchandise under a test arising from rate in this proceeding. The Separate review only if the producer or exporter, the Final Determination of Sales at Less Rate Application will be available on as appropriate, submits a properly filed Than Fair Value: Sparklers From the the Department’s Web site at http:// and timely statement certifying that it People’s Republic of China, 56 FR 20588 www.trade.gov/ia on the date of had no exports, sales, or entries of (May 6, 1991), as amplified by Final publication of this Federal Register subject merchandise during the POR. Determination of Sales at Less Than notice. In responding to the Separate All submissions must be made in Fair Value: Silicon Carbide From the Rate Application, refer to the accordance with 19 CFR 351.303 and People’s Republic of China, 59 FR 22585 instructions contained in the are subject to verification in accordance (May 2, 1994). In accordance with the application. Separate Rate Applications with section 782(i) of the Tariff Act of separate-rates criteria, the Department are due to the Department no later than 1930, as amended (‘‘the Act’’). Six copies assigns separate rates to companies in 60 calendar days of publication of this of the submission should be submitted NME cases only if respondents can Federal Register notice. The deadline to the Assistant Secretary for Import demonstrate the absence of both de jure and requirement for submitting a Administration, International Trade and de facto government control over Separate Rate Application applies Administration, Room 1870, U.S. export activities. equally to NME-owned firms, wholly Department of Commerce, 14th Street foreign-owned firms, and foreign sellers and Constitution Avenue, NW., All firms listed below that wish to qualify for separate-rate status in the that purchase and export subject Washington, DC 20230. Further, in merchandise to the United States. accordance with 19 CFR 351.303(f)(1)(i), administrative reviews involving NME For exporters and producers who a copy of each request must be served countries must complete, as submit a separate-rate status application on every party on the Department’s appropriate, either a separate-rate or certification and subsequently are service list. application or certification, as described below. For these administrative reviews, selected as mandatory respondents, Respondent Selection in order to demonstrate separate-rate these exporters and producers will no In the event the Department limits the eligibility, the Department requires longer be eligible for separate-rate status number of respondents for individual entities for whom a review was unless they respond to all parts of the examination for administrative reviews, requested, that were assigned a separate questionnaire as mandatory the Department intends to select rate in the most recent segment of this respondents. respondents based on U.S. Customs and proceeding in which they participated, Initiation of Reviews: Border Protection (‘‘CBP’’) data for U.S. to certify that they continue to meet the In accordance with section 19 CFR imports during the POR. We intend to criteria for obtaining a separate rate. The 351.221(c)(1)(i), we are initiating release the CBP data under Separate Rate Certification form will be administrative reviews of the following Administrative Protective Order available on the Department’s Web site antidumping and countervailing duty (‘‘APO’’) to all parties having an APO at http://www.trade.gov/ia on the date of orders and findings. We intend to issue within five days of publication of this publication of this Federal Register the final results of these reviews not initiation notice and to make our notice. In responding to the later than April 30, 2011. decision regarding respondent selection certification, please follow the ‘‘Instructions for Filing the Certification’’ within 20 days of publication of this 1 Such entities include entities that have not Federal Register notice. The in the Separate Rate Certification. participated in the proceeding, entities that were Department invites comments regarding Separate Rate Certifications are due to preliminarily granted a separate rate in any the CBP data and respondent selection the Department no later than 60 currently incomplete segment of the proceeding calendar days after publication of this (e.g., an ongoing administrative review, new within 10 calendar days of publication shipper review, etc.) and entities that lost their of this Federal Register notice. Federal Register notice. The deadline separate rate in the most recently completed and requirement for submitting a segment of the proceeding in which they Separate Rates Certification applies equally to NME- participated. In proceedings involving non-market owned firms, wholly foreign-owned 2 Only changes to the official company name, ‘‘ ’’ rather than trade names, need to be addressed via economy ( NME ) countries, the firms, and foreign sellers who purchase a Separate Rate Application. Information regarding Department begins with a rebuttable and export subject merchandise to the new trade names may be submitted via a Separate presumption that all companies within United States. Rate Certification.

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Period to be reviewed

Antidumping Duty Proceedings Brazil: Certain Hot-Rolled Flat-Rolled Carbon Quality Steel Products,3 A–351–828 ...... 3/1/09–2/28/10 Usinas Siderurgicas de Minas Gerais, S.A. (Usiminas) France: Sorbitol, A–427–001. Syral, S.A.S. 4/1/09–3/31/10 India: 1–Hydroxyethylidene-1, 1–Diphosphonic Acid (HEDP), A–533–847 ...... 4/23/09–3/31/10 Aquapharm Chemicals Pvt., Ltd. Russia: Magnesium Metal, A–821–819 ...... 4/1/09–3/31/10 PSC VSMPO–AVISMA Corporation Solikamsk Magnesium Works The People’s Republic of China: Certain Activated Carbon,45 A–570–904 ...... 4/1/09–3/31/10 AmeriAsia Advanced Activated Carbon Products Co., Ltd. Anhui Handfull International Trading (Group) Co., Ltd. Anhui Hengyuan Trade Co., Ltd. Anyang Sino-Shon International Trading Co., Ltd. Baoding Activated Carbon Factory Beijing Broad Activated Carbon Co., Ltd. Beijing Haijian Jiechang Environmental Protection Chemicals Beijing Hibridge Trading Co., Ltd. Beijing Pacific Activated Carbon Products Co., Ltd. Benbu Jiutong Trade Co., Ltd. Calgon Carbon (Tianjin) Co., Ltd. Changji Hongke Activated Carbon Co., Ltd. Chengde Jiayu Activated Carbon Factory Cherishmet Incorporated China National Building Materials and Equipment Import and Export Corp. China National Nuclear General Company Ningxia Activated Carbon Factory China Nuclear Ningxia Activated Carbon Plant Da Neng Zheng Da Activated Carbon Co., Ltd. Datong Carbon Corporation Datong Changtai Activated Carbon Co., Ltd. Datong City Zouyun County Activated Carbon Co., Ltd. Datong Fenghua Activated Carbon Datong Forward Activated Carbon Co., Ltd. Datong Fuping Activated Carbon Co., Ltd. Datong Guanghua Activated Carbon Co., Ltd. Datong Hongtai Activated Carbon Co., Ltd. Datong Huanqing Activated Carbon Co., Ltd. Datong Huaxin Activated Carbon Datong Huibao Active Carbon Co., Ltd. Datong Huibao Activated Carbon Co., Ltd. Datong Huiyuan Cooperative Activated Carbon Plant Datong Juqiang Activated Carbon Co., Ltd. Datong Kaneng Carbon Co. Ltd. Datong Locomotive Coal & Chemicals Co., Ltd. Datong Municipal Yunguang Activated Carbon Co., Ltd. Datong Tianzhao Activated Carbon Co., Ltd. DaTong Tri-Star & Power Carbon Plant Datong Weidu Activated Carbon Co., Ltd. Datong Xuanyang Activated Carbon Co. Ltd. Datong Yunguang Chemicals Plant Datong Zuoyun Biyun Activated Carbon Co., Ltd. Datong Zuoyun Fu Ping Activated Carbon Co., Ltd. Dezhou Jiayu Activated Carbon Factory Dongguan Baofu Activated Carbon Dongguan SYS Hitek Co., Ltd. Dushanzi Chemical Factory Fu Yuan Activated Carbon Co., Ltd. Fujian Jianyang Carbon Plant Fujian Nanping Yuanli Activated Carbon Co., Ltd. Fujian Yuanli Active Carbon Co., Ltd. Fuzhou Taking Chemical Fuzhou Yihuan Carbon Great Bright Industrial Hangzhou Hengxing Activated Carbon Hangzhou Hengxing Activated Carbon Co., Ltd. Hangzhou Linan Tianbo Material (HSLATB) Hangzhou Nature Technology Hebei Foreign Trade and Advertising Corporation Hebei Shenglun Import & Export Group Company Hegongye Ninxia Activated Carbon Factory Heilongjiang Provincial Hechang Import & Export Co., Ltd. Hongke Activated Carbon Co., Ltd.

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Period to be reviewed

Huaibei Environment Protection Material Plant Huairen Jinbei Chemical Co., Ltd. Huairen Huanyi Purification Material Co., Ltd. Huaiyushan Activated Carbon Group Huatai Activated Carbon Huzhou Zhonglin Activated Carbon Inner Mongolia Taixi Coal Chemical Industry Limited Company Itigi Corp. Ltd. J&D Activated Carbon Filter Co., Ltd. Jacobi Carbons AB Jiangle County Xinhua Activated Carbon Co., Ltd. Jiangsu Taixing Yixin Activated Carbon Technology Co., Ltd. Jiangxi Hansom Import Export Co. Jiangxi Huaiyushan Activated Carbon Jiangxi Huaiyushan Activated Carbon Group Co. Jiangxi Huaiyushan Suntar Active Carbon Co., Ltd. Jiangxi Jinma Carbon Jianou Zhixing Activated Carbon Jiaocheng Xinxin Purification Material Co., Ltd. Jilin Bright Future Chemicals Company, Ltd. Jilin Province Bright Future Industry and Commerce Co., Ltd. Jing Mao (Dongguan) Activated Carbon Co., Ltd. Kaihua Xingda Chemical Co., Ltd. Kemflo (Nanjing) Environmental Tech Keyun Shipping (Tianjin) Agency Co., Ltd. Kunshan Actview Carbon Technology Co., Ltd. Langfang Winfield Filtration Co. Link Link Shipping Limited Longyan Wanan Activated Carbon Mindong Lianyi Group Nanjing Mulinsen Charcoal Nantong Ameriasia Advanced Activated Carbon Product Co., Ltd. Ningxia Baota Active Carbon Plant Ningxia Baota Activated Carbon Co., Ltd. Ningxia Blue-White-Black Activated Carbon (BWB) Ningxia Fengyuan Activated Carbon Co., Ltd. Ningxia Guanghua A/C Co., Ltd. Ningxia Guanghua Activated Carbon Co., Ltd. Ningxia Guanghua Chemical Activated Carbon Co., Ltd. Ningxia Guanghua Cherishmet Activated Carbon Co., Ltd. Ningxia Haoqing Activated Carbon Co., Ltd. Ningxia Henghui Activated Carbon Ningxia Honghua Carbon Industrial Corporation Ningxia Huahui Activated Carbon Co., Ltd. Ningxia Huinong Xingsheng Activated Carbon Co., Ltd. Ningxia Jirui Activated Carbon Ningxia Lingzhou Foreign Trade Co., Ltd. Ningxia Luyuangheng Activated Carbon Co., Ltd. Ningxia Mineral & Chemical Limited Ningxia Pingluo County Yaofu Activated Carbon Plant Ningxia Pingluo County Yaofu Activated Carbon Factory Ningxia Pingluo Xuanzhong Activated Carbon Co., Ltd. Ningxia Pingluo Yaofu Activated Carbon Factory Ningxia Taixi Activated Carbon Ningxia Tianfu Activated Carbon Co., Ltd. Ningxia Tongfu Coking Co., Ltd. Ningxia Weining Active Carbon Co., Ltd. Ningxia Xingsheng Coal and Active Carbon Co., Ltd. Ningxia Xingsheng Coke and Activated Carbon Co., Ltd. Ningxia Yinchuan Lanqiya Activated Carbon Co., Ltd. Ningxia Yirong Alloy Iron Co., Ltd. Ningxia Zhengyuan Activated Nuclear Ningxia Activated Carbon Co., Ltd. OEC Logistic Qingdao Co., Ltd. Panshan Import and Export Corporation Pingluo Xuanzhong Activated Carbon Co., Ltd. Pingluo Yu Yang Activated Carbon Co., Ltd. Shanghai Activated Carbon Co. Ltd. Shanghai Coking and Chemical Corporation Shanghai Goldenbridge International Shanghai Jiayu International Trading (Dezhou Jiayu and Chengde Jiayu) Shanghai Jinhu Activated Carbon (Xingan Shenxin and Jiangle Xinhua) Shanghai Light Industry and Textile Import & Export Co., Ltd.

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Period to be reviewed

Shanghai Mebao Activated Carbon Shanhai Xingchang Activated Carbon Shanxi Blue Sky Purification Material Co., Ltd. Shanxi Carbon Industry Co., Ltd. Shanxi Dapu International Trade Co., Ltd. Shanxi DMD Corporation Shanxi Industry Technology Trading Co., Ltd. Shanxi Newtime Co., Ltd. Shanxi Qixian Foreign Trade Corporation Shanxi Qixian Hongkai Active Carbon Goods Shanxi Sincere Industrial Co., Ltd. Shanxi Supply and Marketing Cooperative Shanxi Tianli Ruihai Enterprise Co. Shanxi Xiaoyi Huanyu Chemicals Co., Ltd. Shanxi Xinhua Activated Carbon Co., Ltd. Shanxi Xinhua Chemical Co., Ltd. (formerly Shanxi Xinhua Chemical Factory) Shanxi Xinhua Protective Equipment Shanxi Xinshidai Import Export Co., Ltd. Shanxi Xuanzhong Chemical Industry Co., Ltd. Shanxi Zuoyun Yunpeng Coal Chemistry Shenzhen Sihaiweilong Technology Co. Sincere Carbon Industrial Co., Ltd. Sinoacarbon International Trading Co., Ltd. Taining Jinhu Carbon Tangshan Solid Carbon Co., Ltd. Tianchang (Tianjin) Activated Carbon Tianjin Century Promote International Trade Co., Ltd. Tianjin Jacobi International Trading Co. Ltd. Tianjin Maijin Industries Co., Ltd. Taiyuan Hengxinda Trade Co., Ltd. Tonghua Bright Future Activated Carbon Plant Tonghua Xinpeng Activated Carbon Factory Triple Eagle Container Line Uniclear New-Material Co., Ltd. United Manufacturing International (Beijing) Ltd. Valqua Seal Products (Shanghai) Co. VitaPac (HK) Industrial Ltd. Wellink Chemical Industry Xi Li Activated Carbon Co., Ltd. Xi’an Shuntong International Trade & Industrials Co., Ltd. Xiamen All Carbon Corporation Xingan County Shenxin Activated Carbon Factory Xinhua Chemical Company Ltd. Xuanzhong Chemical Industry Yangyuan Hengchang Active Carbon Yicheng Logistics Yinchuan Lanqiya Activated Carbon Co., Ltd. Zhejiang Quizhou Zhongsen Carbon Zhejiang Xingda Activated Carbon Co., Ltd. Zhejiang Yun He Tang Co., Ltd. Zhuxi Activated Carbon Zuoyun Bright Future Activated Carbon Plant The People’s Republic of China: Certain Steel Threaded Rod,6 A–570–932 ...... 10/8/08–3/31/10 Advanced Hardware Company Anhui Ningguo Zhongding Sealing Co. Ltd. Autocraft Industrial (Shanghai) Ltd. Beijing Peace Seasky International Billion Land Ltd. Century Distribution Systems Certified Products International Inc. China Jiangsu International Economic Technical Cooperation Corporation Dalian Americh International Trading Co., Ltd. Dalian Fortune Machinery Co., Ltd. Dalian Harada Industry Co., Ltd. EC International (Nantong) Co. Ltd. Ever Industries Co. Fastwell Industry Co. Ltd. Gem-Year Industrial Co., Ltd. Haining Light Industry Trade Co. Ltd. Haiyan County No. 1 Fasteners Factory (Hu-Hang Company) Haiyan Dayu Fasteners Co., Ltd. Haiyan Feihua Fasteners Co. Ltd. Haiyan Haiyu Hardware Co. Ltd.

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Period to be reviewed

Haiyan Julong Standard Part Co., Ltd. Haiyan Lianxiang Hardware Products Haiyan Sanhuan Import & Export Co. Haiyan Xiyue Electrical Appliances Co., Ltd. Haiyan Yida Fastener Co. Ltd. Handsun Industry General Co. Hangshou Daton Wind Power Hangshou Huayan Imp. and Exp. Co. Ltd. Hangzhou Everbright Imp & Exp Co. Ltd. Hangzhou Grand Imp. & Exp. Co., Ltd. Hangzhou Robinson Trading Co. Ltd. HD Supply Shanghai Distribution Center Hebei Richylin Trading Co Ltd. Honghua International Co. Ltd. Jiangsu Changzhou International Jiangsu Soho International Group Corp. Jiangsu Yanfei Special Steel Products Jiangxi Yuexin Standard Part Co. Ltd. Jiashan Lisan Metal Products Co. Ltd. Jiashan Zhongsheng Metal Products Co., Ltd. Jiaxing Brother Fastener Co., Ltd., IFI & Morgan Ltd. and RMB Fasteners Ltd. Jiaxing Pacific Trading Co. Ltd. Jiaxing Tsr Hardware Inc. Jiaxing Wonper Imp. & Exp. Co. Ltd. Jiaxing Xinyue Standard Part Co., Ltd. JS Fasteners Co. Ltd. Jun Valve Junshan Co. Ltd. Kewell Products Corporation Lanba Fasteners Co. Ltd. Nantong Harlan Machinery Co. Ltd. Ningbiao Bolts & Nuts Manufacturing Co. Ningbo ABC Fasteners Co. Ltd. Ningbo Beilun Fastening Co. Ltd. Ningbo Beilun Longsheng Ningbo Daxie Chuofeng Industrial Development Co., Ltd. Ningbo Etdz Holding Ltd. Ningbo Fengya Imp. & Exp. Co. Ltd. Ningbo Fourway Co. Ltd. Ningbo Haishu Wit Imp. & Exp. Co. Ltd. Ningbo Haobo Commerce Co. Ltd. Ningbo Jiansheng Metal Products Co. Ningbo Shareway Import and Export Co. Ltd. Ningbo Weiye Co. Ningbo Xinyang Weiye Ningbo Yinzhou Foreign Trade Co. Ltd. Ningbo Yonggang Fastener Co. Ltd. Ningbo Zhenghai Yongding Fastener Co. Ningbo Zhengyu Fasteners Co., Ltd. Ningbo Zhongbin Fastener Mfg. Co. Ltd. Ningbo Zhongjiang High Strength Ningbo Zhongjiang Petroleum Pipes & Machinery Co. Ltd. Orient International Enterprise Ltd. Penglai City Bohai Hardware Tool Co. Ltd. Pennengineering Automotive Fastener Pinghu City Zhapu Screw Cap Qingdao H.R. International Trading Co. Qingdao Hengfeng Development Trade Qingdao Huaqing Imp. and Exp. Co. Ltd. Qingdao Morning Bright Trading Qingdao Uni-trend Int’l Ltd. Roberts Co. R-union Enterprise Co. Ltd. Shaanxi Shcceed Trading Co. Ltd. Shanghai Foreign Trade Enterprises Pudong Co. Ltd. Shanghai Huiyi International Trade Shanghai Jiading Foreign Trade Co. Ltd. Shanghai Overseas International Trading Co. Ltd. Shanghai Prime Machinery Co. Ltd. Shanghai Recky International Trading Co., Ltd. Shanghai Shangdian Washer Co. Shanghai Shenguang High Strength Bolts Co. Ltd. Shanghai Sunrise International Co. Shanghai Tianying Metal Parts Co. Ltd.

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Period to be reviewed

Shanghai Wisechain Fastener Ltd. Shanghai Xianglong International Trading Co., Ltd. (Wangzhai Group) Shanghai Xiangrong International Trading Co., Ltd. Shenzhen Texinlong Trading Co. Shenzhen Xiguan Trading Ltd. Suntec Industries Co., Ltd. Suzhou Textile Silk Co. Ltd. Synercomp China Co. Ltd. T and C Fastener Co. Ltd. T and L Industry Co. Ltd. T&S Technology LLC Tong Ming Enterprise Tri-Star Trading Co. (Hong Kong) Unimax International Ltd. Wujiang Foreign Trade Corporation Wuxi Zontai International Yancheng Sanwei Imp. & Exp. Co. Ltd. Yi Chi Hsiung Ind. Corp. Yixunda Industrial Products Supply Yueyun Imp & Exp Co. Ltd. Yuyao Nanshan Development Co. Ltd. Zhapu Creative Standard Parts Material Co., Ltd. Zhejiang Guorui Industry Co., Ltd. Zhejiang Hailiang Co. Ltd. Zhejiang Huamao International Co. Ltd. Zhejiang Laibao Hardware Co. Ltd. Zhejiang Machinery & Equipment Co. Ltd. Zhejiang Minmetals Sanhe Import & Export Co. Ltd. Zhejiang Morgan Brother Zhejiang New Oriental Fastener Co., Ltd. Zhejiang Peace Industry and Trading Zhejiang Xingxing Optoelectron Zhejiang Zhenglian Corp. The People’s Republic of China: Frontseating Service Valves,7 A–570–933 ...... 10/22/08–3/31/10 AMTEK/CAG Inc. Anhui Technology Imp Exp Co., Ltd. Anhui Yingliu Casting Industrial Co. Anhui Yingliu Electromechanical Co. Ningbo Weitao Electrical Appliance Co., Ltd. Atico International (Asia) Ltd. Beijing KJL Int’l Cargo Agent Co., Ltd. Bergstrom China Group Bowen Casting Co Ltd Broad–Ocean Motor (Hong Kong) Co., Ltd. C.H. Robinson Worldwide Logistics (Dalian) Co., Ltd. Catic Fujian Co., Ltd. Ceiec International Electronics Service Company Changzhou Ranco Reversing Valve Co., Ltd. Changzhou Regal-Beloit Motor Co., Ltd. Chian International Electronics A China National Building Materials & Equipment Imp & Exp Corp Chongqing Jianshe Automobile Zhonghuan Mach. Factory CPI Motor Co. Dongyou International Co., Ltd. Egelhof Regelungstechnik (Suzhou) Fujitsui General (Shanghai) Co., Ltd. Gamela Enterprise Co Ltd GD Midea Air-Conditioning Equipment Co Ltd. Global PMX Co. Ltd Globe Express Services-NGB Grace Meng Guangdong Sanyo Air Conditioner Co., Ltd. Guangzhou Lai-Long Co, Ltd Hang Ji Industries International Co Hangzhou Chunjiang Valve Corporation Headwin Logistics Co., Ltd. Higher Hardware Co., Limited Jiangsu Wei Xi Group Co. Jiashan Sinhai Precision Casting Co., Ltd. Leyuan Kuo Enterprise Co Ltd LHMW Investment Corporation Long Quan Heng Feng Auto Air Accessories Co., Ltd.

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Period to be reviewed

Long Term Elec Co. Ltd Nantong Bochuang Fine Ceramic Co. Ltd. Netmotor (Mfg.) Ltd. New Centurion Import Export Ltd. Ningbo Chindr Industry Co., Ltd. Ningbo Gime Bicycle Co. Ltd. Ningbo IDC Int’l Trading Co., Ltd Ningbo Kaiyuan Shipping Co., Ltd. Ningbo ND Imp. Exp Co., Ltd. Ningbo Riyue Refri. Equip. Co., Ltd. Ningbo Silvertie Foreign Economic Trading Corp. Ningbo Waywell International Co., Ltd. Ningbo Yinzhou Along Imp Exp Co. On Time Taiwan Ltd. Orient Refrigeration Group Ltd. Pan Pacific Express Corp. Promac Intl Corp. No 35 Shanghai Haitai Precision Machine Co., Ltd. Shanghai Highly Group Trading Co., Ltd. Shanghai Huan Long Im Ex Co. Ltd. Shanghai Jing HE Worked Trade Ltd. Shanghai Research Institute OF Shanghai Sitico International Trading Co. Shanghai Velle Automobile Air Shenyang Henyi Enterprise Co., Ltd. Shenzhen Heg Import and Export Co., ltd. Shenzhen Pacific-Net Logistics, Ltd. Summit International Logistics, Ltd. Suzhou KF Valve Co., Ltd. Suzhou Samsung Electronic Co., Ltd. Taizhou Boxin Imp Exp Co., Ltd. Taizhou Chen’s Copper Co., Ltd. Taizhou DBW Metal Pipe Fittings Co., Ltd. Traffic Tech International Freight Tyconalloy Ind (Shenzhen) Co., Ltd. Uniauto Co., Ltd. Uniauto International Limited Uniauto International Ltd. Uniauto Intl Ltd WDI (Xiamen) Technology Inc. Weiss-Rohlig China Co., Ltd. Wudi County Import and Export Corp. Xiamen Chengeng Auto Parts Supplier Co., Ltd. Yancheng H&M Pressure Valve York International (Northern Asia) Ltd. Yuyao Dianbo Machinery Co., Ltd. Yuyao Shule Air Conditioning Equipment Co., Ltd. Yuyao Smart Mold Plastic Co Ltd Zhejiang Delisai Air Conditioner Co., Ltd. Zhejiang Dunan Hetian Metal Co., Ltd. Zhejiang Friendship Valve Co., Ltd. Zhejiang Pinghu Foreign Trade Zhejiang Sanhua Climate and Appliance Controls Group Co., Ltd. Zhejiang Sanhua Co., Ltd. Zhejiang Sanrong Refrigeration Zhejiang Tongxiang Zhejiang Yili Automobile Air Condition Co., Ltd. Zhejiang Yilida Ventilator Co., Ltd. The People’s Republic of China: 1-Hydroxyethylidene-1, 1-Diphosphonic Acid 8 (HEDP), A–570–934 ...... 4/23/09–3/31/10 Changzhou Wujin Fine Chemical Factory Co., Ltd. Jiangsu Jianghai Chemical Group Co., Ltd. The People’s Republic of China: Magnesium Metal,9 A–570–896 ...... 4/1/09–3/31/10 Tianjin Magnesium International Co., Ltd. The People’s Republic of China: Non-Malleable Cast Iron Pipe Fittings,10 A–570–875 ...... 4/1/09–3/31/10 NEP Tianjin Machinery Company The People’s Republic of China: Uncovered Innersprings Units,11 A–570–928 ...... 8/6/08–1/31/10

above referenced case was not listed. The correct Usiminas Siderurgicas de Minas Gerais, S.A. case name is listed above. Also in the same notice, (Usiminas). The correct spelling of the company 3 In the initiation notice that published on April the company Usinas Siderurgicas de Minas Gerais, name is listed above. 27, 2010 (75 FR 22108), the full case name for the S.A. (Usiminas) was incorrectly initiated as Continued

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Countervailing Duty Proceeding days of the date of publication of the Atmospheric Administration (NOAA), None. notice of initiation of the review, will Commerce. determine, consistent with FAG Italia ACTION: Notice. Suspension Agreements v.United States, 291 F.3d 806 (Fed. Cir. None. 2002), as appropriate, whether SUMMARY: In accordance with the During any administrative review antidumping duties have been absorbed Marine Mammal Protection Act covering all or part of a period falling by an exporter or producer subject to the (MMPA), NMFS hereby issues a permit between the first and second or third review if the subject merchandise is for a period of three years to authorize and fourth anniversary of the sold in the United States through an the incidental, but not intentional, publication of an antidumping duty importer that is affiliated with such taking of individuals of the Central order under section 351.211 or a exporter or producer. The request must North Pacific (CNP) stock of endangered determination under section include the name(s) of the exporter or humpback whales by the Hawaii-based 351.218(f)(4) to continue an order or producer for which the inquiry is longline fisheries (deep-set and shallow- suspended investigation (after sunset requested. set). This authorization is based on review), the Secretary, if requested by a For the first administrative review of determinations that mortality and domestic interested party within 30 any order, there will be no assessment serious injury of humpback whales of antidumping or countervailing duties incidental to commercial fishing will 4 If one of the above named companies does not on entries of subject merchandise have a negligible impact on the CNP qualify for a separate rate, all other exporters of entered, or withdrawn from warehouse, stock of humpback whales, that a Certain Activated Carbon from the People’s recovery plan has been developed, that Republic of China (‘‘PRC’’) who have not qualified for consumption during the relevant for a separate rate are deemed to be covered by this provisional-measures ‘‘gap’’ period, of a monitoring program is established, review as part of the single PRC entity of which the the order, if such a gap period is that vessels in the fisheries are named exporters are a part. applicable to the POR. registered, and that the MMPA does not 5 Petitioners, Calgon Carbon Corporation and require a take reduction plan (TRP) at Norit Americans Inc., also requested a review of Interested parties must submit fifteen additional companies, but were unable to applications for disclosure under this time. provide addresses for these companies. We are still administrative protective orders in DATES: This permit is effective for a 3– considering the appropriateness of initiating a accordance with 19 CFR 351.305. On year period beginning May 28, 2010. review on these fifteen companies. Therefore, at this time, we are not initiating a review with respect January 22, 2008, the Department ADDRESSES: Reference material for this to the following companies: Actview Carbon published Antidumping and permit is available on the Internet at the Technology Co., Ltd.; Alashan Yongtai Activated Countervailing Duty Proceedings: following address: http:// Carbon Co., Ltd.; Beijing Huapeng Environment Documents Submission Procedures; www.fpir.noaa.gov. Protection Materials; Datong Kangda Activated Carbon Factory; Datong Runmei Activated Carbon APO Procedures (73 FR 3634). Those Copies of the reference materials may Factory; Fangyuan Carbonization Co., Ltd.; Huaxin procedures apply to administrative also be obtained from the Protected Active Carbon Plant; Jilin Goodwill Activated reviews included in this notice of Resources Division, NMFS, Pacific Carbon Plant; Kaihua Xinghua Chemical Plant; initiation. Parties wishing to participate Islands Region, 1601 Kapiolani Blvd., Xingtai Coal Chemical Co., Ltd.; Xinyuan Carbon; Yinyuan Carbon; Yuanguang Activated Carbon Co., in any of these administrative reviews Suite 1110, Honolulu, HI, 96814 Ltd.; YunGuan Chemical Factory; and, Yuyang should ensure that they meet the Attention - Lisa Van Atta, Assistant Activated Carbon Co., Ltd. requirements of these procedures (e.g., Regional Administrator. 6 If one of the above named companies does not the filing of separate letters of FOR FURTHER INFORMATION CONTACT: Lisa qualify for a separate rate, all other exporters of appearance as discussed at 19 CFR Certain Steel Threaded Rod from the PRC who have Van Atta, Pacific Islands Region (808) not qualified for a separate rate are deemed to be 351.103(d)). 944–2257 or Tom Eagle, Office of covered by this review as part of the single PRC These initiations and this notice are Protected Resources, (301) 713–2322, entity of which the named exporters are a part. in accordance with section 751(a) of the ext. 105. 7 If one of the above named companies does not Tariff Act of 1930, as amended (19 qualify for a separate rate, all other exporters of SUPPLEMENTARY INFORMATION: Fronseating Service Valves from the PRC who have U.S.C. 1675(a)), and 19 CFR not qualified for a separate rate are deemed to be 351.221(c)(1)(i). Background covered by this review as part of the single PRC Dated: May 25, 2010. MMPA section 101(a)(5)(E) requires entity of which the named exporters are a part. NMFS to allow the taking of marine 8 If one of the above named companies does not John M. Andersen, qualify for a separate rate, all other exporters of Acting Deputy Assistant Secretary for mammals from species or stocks listed 1-Hydroxyethylidene-1, 1-Diphosphonic Acid Antidumping and Countervailing Duty as threatened or endangered under the (HEDP) from the PRC who have not qualified for a Operations. ESA (16 U.S.C. 1531 et seq.) incidental separate rate are deemed to be covered by this to commercial fishing operations if review as part of the single PRC entity of which the [FR Doc. 2010–13049 Filed 5–27–10; 8:45 am] named exporters are a part. BILLING CODE 3510–DS–P NMFS determines that: (1) incidental 9 If the above named company does not qualify mortality and serious injury will have a for a separate rate, all other exporters of Magnesium negligible impact on the affected species Metal from the People’s Republic of China who DEPARTMENT OF COMMERCE or stock; (2) a recovery plan has been have not qualified for a separate rate are deemed to be covered by this review as part of the single PRC developed or is being developed for entity of which the named exporters are a part. National Oceanic and Atmospheric such species or stock under the ESA; 10 If the above named company does not qualify Administration and (3) where required under section for a separate rate, all other exporters of non- 118 of the MMPA, a monitoring program RIN 0648–XU10 malleable cast iron pipe fittings from the People’s has been established, vessels engaged in Republic of China who have not qualified for a separate rate are deemed to be covered by this Taking of Threatened or Endangered such fisheries are registered in review as part of the single PRC entity of which the Marine Mammals Incidental to accordance with section 118 of the named exporters are a part. Commercial Fishing Operations; MMPA, and a take reduction plan has 11 In the initiation notice that published on March been developed or is being developed 30, 2010 (75 FR 15679), the review period for the Issuance of Permit above referenced case was incorrect. The period for such species or stock. listed above is the correct period of review for this AGENCY: National Marine Fisheries On February 24, 2010 (75 FR 8305), case. Service (NMFS), National Oceanic and NMFS proposed to issue a permit under

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MMPA section 101(a)(5)(E) to vessels threatened or endangered sea turtles the current permit. The Council and registered in the Hawaii-based longline taken incidental to longline fishing NMFS completed the Final fisheries (deep-set and shallow-set) to operations for Pacific pelagic species of Supplemental EIS for Amendment 18 to incidentally take individuals from the fish. Furthermore, participants in the the Fishery Management Plan for CNP stock of humpback whales, which fishery are required to hold a Federal Pelagic Fisheries of the Western Pacific are listed as endangered under the permit for fishing, and registration Region in March 2009, and the Assistant Endangered Species Act (ESA). The under MMPA section 118(c) has been Administrator for Fisheries (AA) signed Hawaii-based longline fisheries do not integrated into the fishery permitting the Record of Decision for this action on take other species or stocks of process. Accordingly, NMFS determines June 17, 2009. The Council and NMFS threatened or endangered marine that, as required by MMPA section 118, also completed a Final Programmatic mammals; therefore, no other species or a monitoring program is established for EIS toward an Ecosystem Approach for stocks were considered for this permit. these fisheries and that vessels engaged the Western Pacific Region: From There has been one serious injury (in in such fisheries are registered in Species-Based Fishery Management 2006) of a CNP humpback whale in the accordance with such section. Plans to Place-Based Fishery Ecosystem Hawaii-based shallow-set longline The purpose of a TRP is to reduce Plans in September 2009, and the AA fishery. mortality and serious injury incidental signed the Record of Decision for this No other mortality or serious injury of to commercial fisheries, and only action on December 11, 2009. Because humpback whales has been recorded Category I or II fisheries are subject to this permit does not modify any fishery incidental to the longline fishery (a take reduction requirements. Observer operation and the effects of the fishery single fishery under MMPA section 118 reports since 1994 confirm that there operations have been evaluated fully in from 1994 until 2004, and separated have been no serious injuries or accordance with NEPA, no additional into shallow-set and deep-set fisheries mortalities of a CNP humpback whale in NEPA analysis is required for this since 2004) since 1994. Consequently, the Hawaii-based deep-set longline permit. authorization only for harassment and fishery. Recent levels of mortality in the Section 7 of the ESA requires NMFS non-lethal injury of humpback whales is shallow-set fishery (0.2 whales per year) to consult with itself when agency necessary incidental to the deep-set are insignificant and average less than 1 actions may affect threatened or longline fishery. The proposed percent of the PBR of the CNP endangered marine species, including permitted lethal (serious injury or humpback whale stock. As a result of marine mammals. NMFS has evaluated mortality) taking of CNP humpback the current data, both the deep-set and numerous actions related to whales incidental to the Hawaii-based shallow-set fisheries would be listed in implementation of fishery management longline fisheries was limited to the the List of Fisheries as Category III plans for pelagic species by Hawaii- shallow-set fishery. Although humpback fisheries, but for the higher level of based fisheries, including the deep-set whales are taken incidental to fisheries taking of other marine mammals, not and shallow-set longline fisheries. The in Alaskan, as well as Hawaiian, waters listed under the ESA. Finally, MMPA two most recent biological opinions the proposed permit was limited to the section 118(f) provides that if there is (BiOp) related to deep-set and shallow- Hawaii-based longline fisheries. Alaska- insufficient funding available to develop set longline fisheries are (1) BiOp and based fisheries will be addressed in a and implement a take reduction plan for Incidental Take Statement on the future permitting procedure. stocks that interact with commercial Continued Authorization of the Hawaii- Category I and II fisheries, the Secretary based Pelagic, Deep-set, Tuna Longline Determinations for the Permit shall give highest priority to the Fishery Based on the Fishery The following determinations and development of TRP’s for species or Management Plan for Pelagic Fishing of supporting information were included stocks whose level of incidental the Western Pacific Region, October 4, in notice of the proposed permit (75 FR mortality and serious injury exceeds 2005; and (2) BiOp on Management 8305, February 24, 2010). As described PBR, those that have small population Modifications for the Hawaii-based in detail in the documentation for the size, and those that are declining most Shallow-set Longline Swordfish Fishery negligible impact determination (see rapidly. NMFS has evaluated Implementation of Amendment 18 to ADDRESSES), NMFS estimated that availability of TRT funding for the the Fishery Management Plan for the mortality and serious injury of CNP humpback whale under the statutory Pelagic Fisheries of the Western Pacific humpback whales incidental to criteria and determined that there is Region, October 15, 2008. NMFS commercial fishing operations in HI and insufficient funding available for a TRT. reviewed these BiOps and information AK totaled 5.4 whales per year, which Accordingly, NMFS determines that a related to issuing the permit and have is 26.5 percent of the stock’s Potential TRP is not required by MMPA section concluded that issuing the permit Biological Removal (PBR) level. NMFS 118 at this time. (See response to would not modify the activities of the concluded that incidental mortality and Comment 9.) fishery nor the effects of these fishing serious injury at this total rate will have The National Environmental Policy activities on ESA-listed species, a negligible impact on CNP humpback Act (NEPA) requires Federal agencies to including humpback whales, in a whales. evaluate the impacts of alternatives for manner that would cause adverse effects A recovery plan for humpback whales their actions on the human not previously evaluated and that there has been in place since November 1991. environment. NMFS and the Western has been no new listing of species or Accordingly, a recovery plan for Pacific Fishery Management Council designation of critical habitat that could humpback whales, including the CNP (Council) have analyzed the impacts of be affected by the action. Accordingly, stock, has been developed. fishing operations, including the deep- no additional analyses under the ESA An observer program is in place for set and shallow-set longline fisheries on are required at this time. the Hawaii-based longline fisheries. The the human environment. The current shallow-set fishery has 100 percent permit does not modify fishing Current Permit observer coverage. The deep-set fishery operations; therefore, the analyses NMFS has made determinations has at least 20 percent observer included in two recent Environmental under MMPA section 101(a)(5)(E) that coverage. These observer levels are Impact Statements (EIS) issued by (1) mortality and serious injury of CNP required under the ESA to protect NOAA evaluate the impacts of issuing humpback whales incidental to

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commercial fishing will have a humpback whales incidental to fishing MMPA section 101(a)(5)(E) requires negligible impact on the stock, (2) a operations. Taking of humpback whales NMFS to publish in the Federal recovery plan for humpback whales has incidental to the deep-set fishery is Register a list of fisheries that have been been developed, (3) as required by limited to non-lethal taking (harassment authorized to take threatened or MMPA section 118, a monitoring and injury). Taking of these whales endangered marine mammals. A list of program has been established in the incidental to the shallow-set fishery such fisheries was published, as Hawaii-based longline fisheries, and includes harassment and non-serious required, on October 26, 2007 (72 FR vessels in the fishery are registered, and injury, as well as serious injury and 60814), which authorized the taking of (4) no TRP is required by MMPA section mortality. If NMFS determines at a later threatened or endangered marine 118 to reduce mortality and serious date that incidental mortality and mammals to one Category I and two injury of CNP humpback whales serious injury from commercial fishing Category III fisheries along the west incidental to Hawaii-based longline is having more than a negligible impact coast of the U.S. With issuance of the fisheries. As required by MMPA section on the CNP stock of humpback whales, 101(a)(5)(E), NMFS hereby issues a NMFS may use its emergency authority current permit, NMFS adds the Hawaii- permit to vessels in the Hawaii-based under MMPA section 118 to protect the based deep-set and shallow-set longline longline fisheries (deep-set and shallow- stock and may modify the permit issued fisheries to this list (Table 1). set) authorizing the taking of CNP herein.

TABLE 1. LIST OF FISHERIES AUTHORIZED TO TAKE THREATENED AND ENDANGERED MARINE MAMMALS INCIDENTAL TO FISHING OPERATIONS.

Fishery Category Marine Mammal Stock

CA/OR Drift Gillnet Fishery I Fin whale, CA/OR/WA stock Humpback whale, ENP stock Sperm whale, CA/OR/WA stock

CA lobster, prawn, shrimp, rock crab, fish pot III Fin whale, CA/OR/WA stock Humpback whale, ENP stock Sperm whale, CA/OR/WA stock

WA/OR/CA crab pot III Fin whale, CA/OR/WA stock Humpback whale, ENP stock Sperm whale, CA/OR/WA stock

HI deep-set (tuna target) longline/set line I Humpback whale, CNP stock

HI shallow-set (swordfish target) longline/set line II Humpback whale, CNP stock

Comments and Responses Response: NMFS agrees to re-evaluate (5) There has been only one observed NMFS received letters containing these findings if the status review serious injury of a humpback whale in comments from four organizations, the indicated a new stock structure the shallow-set fishery only one Marine Mammal Commission modifying the current CNP humpback interaction of any kind observed in this (Commission), the Hawaii Longline whale stock. fishery with100 percent observer Association (HLA), the Council, and the Comment 3: HLA supported issuance coverage since 2004. Human Society of the United States of the proposed permit and supporting Response: NMFS agrees that the (HSUS). Each letter contained multiple documentation. HLA’s rationale for its available information supports the comments. support included the following: finding of negligible impact required by Comment 1: The Commission briefly (1) Abundance of the CNP stock has MMPA section 101(a)(5)(E). summarized NMFS’ findings for the substantially recovered from depressed Comment 4: HLA stated that NMFS proposed permit and recommended that levels resulting from commercial used a worst case analysis for the NMFS comply with MMPA section whaling, noting that the estimated negligible impact analysis and cited a 101(a)(5)(E) by issuing the permit to the annual rate of increase is 7 percent; decision by the Supreme Court (Bennett Hawaii-based deep-set and shallow-set (2) Mortality and serious injury of the v. Spear, 520 U.S. 154, 176–77 (1997)) longline fisheries to authorize the taking stock is less than the stock’s PBR, and related to the ESA. HLA also asserted of CNP humpback whales incidental to there has been no detectable adverse that NMFS’ analysis implementing their fishing operations. impact on the growth and recovery of MMPA section 101(a)(5)(E) reflects Response: NMFS agrees and is issuing the stock; exactly the kind of zealous, but the permit as required by the MMPA. (3) Interactions between the Hawaii- misguided, conservation bias that the Comment 2: The Commission noted based longline fisheries and the CNP definition of ‘‘negligible impact’’ and the that NMFS is currently conducting a stock are ‘‘extremely rare events≥; ‘‘best science’’ requirements proscribe. status review of humpback whales (4) There has been no observed Response: NMFS disagrees that the under the ESA and recommended that mortality or serious injury of humpback negligible impact analysis is a worst NMFS reexamine the findings related to whales incidental to the deep-set fishery case analysis and that the analysis is this permit if the status review indicates and only a single observed interaction of inconsistent with the MMPA. NMFS a new stock structure and factors that a humpback whale with this fishery maintains that the finding was based may compromise the conservation of since 2004 with observer coverage of 20 upon appropriate levels of precaution. those stocks. percent; and Although NMFS used a ‘‘worst case’’

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estimate of abundance to calculate PBR rather than the more stringent Criterion deep-set longline fishery is appropriate for this stock (see Allen and Angliss, 1 (10 percent of PBR), in concluding at this time. Despite continued 2010 Alaska Marine Mammal Stock that mortality and serious injury of CNP population growth in the CNP stock of Assessment Reports (SAR), 2009, NOAA humpback whales incidental to humpback whales, the long history of Tech. Mem. NMFS-AFSC–206.), NMFS commercial fishing was having a no documented lethal taking and of very also acknowledged in the SAR and in negligible impact on the population (see few takings of any kind suggests the the negligible impact determination for History of Applying Negligible Impact potential for increased mortality and this permit that mortality may have in Fisheries above). Accordingly, NMFS serious injury incidental to the deep-set been underestimated (minimum maintains that the negligible impact fishery, despite population growth over estimate). Estimates of mortality and determination contains an appropriate the 3–year duration of the MMPA serious injury were based upon level of precaution as required by the permit, is minimal. strandings and observations of MMPA. (Also, see Comment 8 and Comment 7: HSUS noted that NMFS entangled or injured free-swimming associated response.) included an incorrect Internet address humpback whales, and such data Comment 5: The Council supported for the supporting negligible impact sources may be underestimates because issuance of the proposed permit, noted determination in the notice of the not all entangled or injured whales are that the Hawaii-based deep-set longline proposed permit and located a draft observed, identified to source, and fishery had only 1 to 2 non-fatal negligible impact determination dated recorded. interactions with humpback whales, February 2010. HSUS noted the HLA incorrectly applies court rulings noted that only one humpback whale determination should be final before under the ESA to agency findings under had been observed seriously injured in issuing a permit to a fishery. the MMPA. In the original passage of the shallow-set longline fishery, and Response: NMFS acknowledges that the MMPA, the associated House of expressed that it was perplexed why the Internet address in the notice of the Representatives Report stated the NMFS waited so long to make a proposed permit was incorrect and that burden for permits as follows: ‘‘Before determination and issue a permit for HSUS and three other organizations any marine mammal may be taken, the taking CNP humpback whales were able to locate the draft negligible appropriate Secretary must first incidental to HI-based longline fishing. impact determination. The negligible establish general limitations on the Response: NMFS acknowledges the impact determination was available in taking, and must issue a permit which Council’s support for this permit. The draft form because the MMPA requires would allow that taking. In every case, delay in issuing this permit was related that such a determination be completed the burden is placed upon those seeking to several factors. First, a basin-wide after public review and comment. permits to show that the taking should abundance estimate was in progress as Accordingly, NMFS made the draft be allowed and will not work to the part of a large international study of available so that the public had the disadvantage of the species or stock of humpback whales, and this basin-wide opportunity to provide additional animals involved. If that burden is not estimate had to be partitioned by stocks information or insights before making a carried and it is by no means a light recognized under the MMPA. Second, final determination. The final negligible burden the permit may not be issued. as noted in the response to Comment 4, impact determination will be released The effect of this set of requirements is the requisite negligible impact concurrent with issuance of the permit. to insist that the management of the determination must include the effect of Comment 8: NMFS used a minimum animal populations be carried out with the total mortality and serious injury of estimate of mortality and serious injury the interests of the animals as the prime CNP humpback whales incidental to in its finding that mortality and serious consideration.’’ (House of commercial fishing rather than injury of CNP humpbacks incidental to Representatives Report No. 92–707, incidental to the Hawaii-based fisheries commercial fishing is having a December 4, 1971) only. Most mortality and serious injury negligible impact on the stock. HSUS For the provisions of MMPA section has been documented in Alaska rather noted that the take of large endangered 101(a)(5)(E), the associated House of than Hawaii, this mortality had to be whales in most fisheries is generally Representatives Report stated that evaluated and reconciled among several under-represented by fisher self-reports ‘‘These permits may extend for a documents, and fishery-caused or limited observer coverage; that NMFS maximum of three years and may be mortality and serious injury had to be did not include entanglements observed issued only if the Secretary determines evaluated in the context of other in Hawaii in the 2009 SAR for the CNP that the total of such [incidental to human-related sources of mortality and stock of humpback whales, upon which commercial fishing] taking will have a serious injury (due to the comparison to the negligible impact determination was negligible impact on the species or stock PBR, which includes consideration of based. Furthermore, large whales may . The Committee notes that the all removals other than natural become entangled in gear and break free ‘‘negligible impact’’ standard in the mortalities). Third, staffing limitations with gear attached; however, NMFS did MMPA is more stringent than the ‘‘no required conservation activities with the not include information on the jeopardy’’ standard in the ESA, and Pacific Islands Region to be address in percentage of trips where there are consequently provides more protection priority order, with activities directed reports of lost gear. for endangered or threatened marine toward species or stocks most at risk Response: NMFS acknowledged (in mammals under the MMPA than under receiving highest priority. the negligible impact determination and the ESA.’’ (House of Representatives Comment 6: The Council also noted within the SAR) that the estimate of Report No. 103–439, March 21, 1994). that the CNP humpback population is mortality and serious injury is Thus, a precautionary evaluation under increasing, which could result in more considered a minimum estimate. The the MMPA is appropriate. interactions with the HI longline fleet. extent of lost fishing gear was not In this determination, NMFS For this reason, NMFS must now reported because it is not available for evaluated uncertainties in abundance consider providing the HI-based deep- most fisheries; furthermore, gear may be and in mortality and serious injury, set fishery a permit including lethal as lost due to many factors other than large considered the increase in population well as non-lethal taking. whale entanglements. size in using Criterion 3 (PBR rather Response: NMFS disagrees that For several reasons, the finding of than 10 percent of the stock’s PBR) permitting lethal takes incidental to the negligible impact is reasonable in spite

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of the potential for underestimating commercial whaling that ceased before is aware that interactions between mortality and serious injury. First, PBR the MMPA was passed. Current human- odontocetes, including false killer is based upon conservative estimates of caused mortality of CNP humpback whales, and these Hawaii-based abundance and Rmax and has a whales is negligible, particularly longline fisheries appear related to recovery factor of 0.1. Second, the PBR mortality and serious injury resulting depredation of bait or catch in the approach was thoroughly tested in from longline fishing. fisheries. Humpback whale simulation trials and found to be robust MMPA 118(f)(2) provides that the goal entanglement is more likely due to to over-estimates of Rmax, of a TRP for a strategic stock is reduce accidental encounters with fishing gear underestimates of mortality, and low within 6 months of implementation the than depredation. Accordingly, NMFS precision of abundance and mortality serious injury and mortality in the concluded that including humpback estimates. Finally, the annual rate of course of commercial fishing operations whales within the scope of the TRP increase of the stock observed in Hawaii to levels less than PBR. The long-term would likely detract from the focus of is reported in the SAR to be 7 percent. goal of the plan is to reduce, within 5 the TRP, which is to reduce mortality Accordingly, in spite of all factors, years of its implementation, the and serious injury of false killer whales human-caused (including commercial incidental mortality and serious injury incidental to the deep-set longline fisheries) and natural, that may be in the course of commercial fishing fishery. affecting humpback whales in the North operations to insignificant levels Dated: May 24, 2010. Pacific Ocean, this stock is increasing approaching a zero mortality and rapidly. For these reasons, NMFS serious injury rate. Not only does the James H. Lecky, maintains that the negligible impact best available information indicate that Director, Office of Protected Resources, determination is based upon reasonable neither the deep-set nor shallow-set National Marine Fisheries Service. precaution. (Also, see Comment 4 and longline fishery incidentally kills or [FR Doc. 2010–12916 Filed 5–27–10; 8:45 am] the associated response.) seriously injures humpback whales at BILLING CODE 3510–22–S Comment 9: HSUS stated that NMFS levels that would require a TRP to be wrongly claims that the obligations to developed and implemented. The 2009 develop and implement a TRP are SAR for the CNP stock of humpback DEPARTMENT OF COMMERCE subject to the availability of funding. whales, which became available after International Trade Administration Rather, the MMPA requires NMFS to the 2010 LOF was prepared, shows that develop and implement a TRP for each there is no mortality and serious injury Civil Nuclear Trade Advisory strategic stock of marine mammals that of humpback whales incidental to the Committee Public Meeting interacts with fisheries that have deep-set longline fishery, and the PBR frequent (Category I) or occasional for the stock is 20.4. Information AGENCY: International Trade (Category II) incidental mortality and discussed in the notice of the proposed Administration, DOC. serious injury of marine mammals. permit and negligible impact ACTION: Notice of Federal Advisory Further, MMPA section 101(a)(5)(E) determination shows that mortality and Committee Meeting. clearly requires that a TRP regardless of serious injury of CNP humpback whales what priority NMFS assigns its incidental to the shallow-set longline SUMMARY: This notice sets forth the development must be in existence fishery (0.2 whales per year) is less than schedule and proposed agenda of the before incidental take may be 1 percent of the PBR of the stock. next meeting of the Civil Nuclear Trade authorized. If NMFS cannot develop or, Also, MMPA section 118(f) provides Advisory Committee (CINTAC). The at least initiate development of, a TRP that if there is insufficient funding members will discuss issues outlined in because it lacks funding, it cannot available to develop and implement a the following agenda. authorize incidental take. It would be a take reduction plan for stocks that DATES: The meeting is scheduled for: simple matter for NMFS to convene a interact with commercial Category I and Tuesday, June 15, 2010, from 1 p.m. to working group of the existing Take II fisheries, the Secretary shall give 4 p.m. Eastern Daylight Time (EDT). Reduction Team (TRT) for false killer highest priority to the development of ADDRESSES: The meeting will be held at whales, which includes the Hawaii- TRP’s for species or stocks whose level the U.S. Department of Commerce, based longline fisheries, to recommend of incidental mortality and serious Herbert Clark Hoover Building, 1401 measures to reduce likelihood of injury exceeds PBR, those that have Constitution Ave, NW., Washington, DC interactions with humpbacks. small population size, and those that are 20230. Response: The CNP stock of declining most rapidly. NMFS has FOR FURTHER INFORMATION CONTACT: Ms. humpback whales is strategic. The evaluated availability of TRT funding Sarah Lopp, Office of Energy & Hawaii-based longline fisheries are for the humpback whale under the Environmental Industries, International Category I (deep-set fishery) and statutory criteria and determined that Category II (shallow-set fishery). there is insufficient funding available Trade Administration, Room 4053, 1401 Moreover, the List of Fisheries for 2009 for a TRT. Accordingly NMFS Constitution Ave, NW., Washington, DC and 2010 noted that CNP stock of concludes that MMPA section 118 does 20230. (Phone: 202–482–3851; Fax: humpback whales was the marine not require a TRP to address mortality 202–482–5665; e-mail: mammal species or stock for which the and serious injury of CNP humpback [email protected]). shallow-set fishery had occasional whales incidental to either the deep-set SUPPLEMENTARY INFORMATION: mortality and serious injury. or shallow-set longline fishery at this Background: The CINTAC was However, NMFS’ analysis of the time. established under the discretionary MMPA requirements and the available A TRP for CNP humpback whales is authority of the Secretary of Commerce information does not support a low priority, and MMPA section 118 and in accordance with the Federal developing a TRP for humpback whales. does not require a TRP in this case. Advisory Committee Act (5 U.S.C. The CNP stock of humpback whales is However, NMFS considered, as HSUS App.), in response to an identified need strategic because humpback whales suggested, including humpback whales for consensus advice from U.S. industry were listed as an endangered species within the scope of the TRP being to the U.S. Government regarding the under the ESA due to the effects of developed for false killer whales. NMFS development and administration of

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programs to expand United States 1401 Constitution Ave NW., Although non-emergency issues not exports of civil nuclear goods and Washington, DC 20230. To be contained in this agenda may come services in accordance with applicable considered during the meeting, before this group for discussion, those United States regulations, including comments must be received no later issues may not be the subject of formal advice on how U.S. civil nuclear goods than 5 p.m. EDT on Friday, June 11, action during this meeting. Action will and services export policies, programs, 2010, to ensure transmission to the be restricted to those issues specifically and activities will affect the U.S. civil Committee prior to the meeting. identified in this notice and any issues nuclear industry’s competitiveness and Comments received after that date will arising after publication of this notice ability to participate in the international be distributed to the members but may that require emergency action under market. not be considered at the meeting. section 305(c) of the Magnuson-Stevens Topics to be considered: The agenda Copies of CINTAC meeting minutes Fishery Conservation and Management for the June 15, 2010, CINTAC meeting will be available within 90 days of the Act, provided the public has been is as follows: meeting. notified of the Council’s intent to take 1. Welcome and introduction of final action to address the emergency. members attending for the first time. Thomas Sobotta, 2. Discussion of civil nuclear trade Deputy Assistant Secretary for Special Accommodations priority issues. Manufacturing, Acting. This meeting is physically accessible 3. Discussion of subcommittee work [FR Doc. 2010–12814 Filed 5–27–10; 8:45 am] to people with disabilities. Requests for progress on domestic competitiveness, BILLING CODE 3510–DR–P sign language interpretation or other technologies, treaties and regulations, auxiliary aids should be directed to Paul advocacy, and talent and education. J. Howard (see ADDRESSES) at least 5 Public Participation: The meeting will DEPARTMENT OF COMMERCE days prior to the meeting date. be open to the public and the room is disabled-accessible. Public seating is National Oceanic and Atmospheric Authority: 16 U.S.C. 1801 et seq. limited and available on a first-come, Administration Dated: May 25, 2010. first-served basis. Members of the public Tracey L. Thompson, RIN 0648–XW66 wishing to attend the meeting must Acting Director, Office of Sustainable notify Ms. Sarah Lopp at the contact New England Fishery Management Fisheries, National Marine Fisheries Service. information above by 5 p.m. EDT on Council; Public Meeting [FR Doc. 2010–12935 Filed 5–27–10; 8:45 am] Friday, June 11, 2010, in order to pre- BILLING CODE 3510–22–S register for clearance into the building. AGENCY: National Marine Fisheries Please specify any requests for Service (NMFS), National Oceanic and reasonable accommodation at least five Atmospheric Administration (NOAA), DEPARTMENT OF COMMERCE business days in advance of the Commerce. National Oceanic and Atmospheric meeting. Last minute requests will be ACTION: Notice; public meeting. accepted, but may be impossible to fill. Administration A limited amount of time will be SUMMARY: The New England Fishery RIN 0648–XW65 available for pertinent brief oral Management Council’s (Council) VMS/ comments from members of the public Enforcement Committee will meet to New England Fishery Management attending the meeting. To accommodate consider actions affecting New England Council; Public Meeting as many speakers as possible, the time fisheries in the exclusive economic zone for public comments will be limited to (EEZ). AGENCY: National Marine Fisheries Service (NMFS), National Oceanic and two (2) minutes per person, with a total DATES: The meeting will be held on Atmospheric Administration (NOAA), public comment period of 30 minutes. Monday, June 21, 2010 at 9:30 a.m. Individuals wishing to reserve speaking Commerce. ADDRESSES: The meeting will be held at time during the meeting must contact ACTION: Notice of a public meeting. the Eastland Park Hotel, 157 High Ms. Lopp and submit a brief statement Street, Portland, ME 04101; telephone: SUMMARY: The New England Fishery of the general nature of the comments (207) 775–5411; fax: (207) 775–1066. Management Council’s (Council) and the name and address of the Council address: New England Groundfish Committee will meet to proposed participant by 5 p.m. EDT on Fishery Management Council, 50 Water consider actions affecting New England Friday, June 11, 2010. If the number of Street, Mill 2, Newburyport, MA 01950. fisheries in the exclusive economic zone registrants requesting to make (EEZ). statements is greater than can be FOR FURTHER INFORMATION CONTACT: Paul reasonably accommodated during the J. Howard, Executive Director, New DATES: The meeting will be held on meeting, the International Trade England Fishery Management Council; Wednesday, June 16, 2010 at 9 a.m. Administration (ITA) may conduct a telephone: (978) 465–0492. ADDRESSES: The meeting will be held at lottery to determine the speakers. SUPPLEMENTARY INFORMATION: The items the Holiday Inn, 31 Hampshire Street, Speakers are requested to bring at least of discussion in the committee’s agenda Mansfield, MA 02048; telephone: (508) 20 copies of their oral comments for are as follows: 339–2200; fax: (508) 339–1040. distribution to the participants and 1. Enforcement of sectors; how to Council address: New England public at the meeting. improve dockside monitoring; one Fishery Management Council, 50 Water Any member of the public may landing per calendar day vs. 24 hours; Street, Mill 2, Newburyport, MA 01950. submit pertinent written comments discuss including two state enforcement FOR FURTHER INFORMATION CONTACT: Paul concerning the CINTAC’s affairs at any people on the committee; marking of J. Howard, Executive Director, New time before and after the meeting. fixed fishing gear regulations and also England Fishery Management Council; Comments may be submitted to the discuss possibly reviewing and telephone: (978) 465–0492. Civil Nuclear Trade Advisory eliminating unnecessary or duplicative SUPPLEMENTARY INFORMATION: The items Committee, Office of Energy and regulations. of discussion in the committee(s agenda Environmental Industries, Room 4053, 2. Other business. are as follows:

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1. The Committee will review DEPARTMENT OF COMMERCE manufacturing process (e.g., hot groundfish action items for possible finished, cold-drawn, annealed), outer inclusion in management measures International Trade Administration surface (e.g., plain or enhanced with including: [A–201–838] grooves, ridges, fins, or gills), end finish •Georges Bank yellowtail flounder (e.g., plain end, swaged end, flared end, rebuilding time frame Seamless Refined Copper Pipe and expanded end, crimped end, threaded), • New sector requests Tube From Mexico: Correction to coating (e.g., plastic, paint), insulation, • Update on status of pollock if Notice of Preliminary Determination of attachments (e.g., plain, capped, preliminary results from the 2010 Stock Sales at Less Than Fair Value and plugged, with compression or other Assessment Review Committee (SARC) Postponement of Final Determination fitting), or physical configuration (e.g., are available straight, coiled, bent, wound on spools). •General category scallop dredge AGENCY: Import Administration, The scope of this investigation covers, exemption for yellowtail flounder in the International Trade Administration, but is not limited to, seamless refined Great South Channel Department of Commerce. copper pipe and tube produced or DATES: Effective Date: May 28, 2010. comparable to the American Society for 2. The Committee may also discuss FOR FURTHER INFORMATION CONTACT: Joy Testing and Materials (‘‘ASTM’’) ASTM– these additional groundfish Zhang or George McMahon, AD/CVD B42, ASTM–B68, ASTM–B75, ASTM– management issues: Operations, Office 3, Import B88, ASTM–B88M, ASTM–B188, •Party and charter boat limited entry Administration, International Trade ASTM–B251, ASTM–B251M, ASTM– control date B280, ASTM–B302, ASTM–B306, • Administration, U.S. Department of Accountability measures ASTM–359, ASTM–B743, ASTM–B819, •Gulf of Maine winter flounder zero Commerce, 14th Street and Constitution Avenue, NW., Washington, DC 20230; and ASTM–B903 specifications and possession and allocation meeting the physical parameters •Permit banks telephone: (202) 482–1168 or (202) 482– 1167, respectively. described therein. Also included within 3. The Committee will consider the the scope of this investigation are all SUPPLEMENTARY INFORMATION: possible initiation of an amendment to sets of covered products, including ‘‘line the Fishery Management Plan relating to Correction sets’’ of seamless refined copper tubes allocative effects and excessive control On May 12, 2010, the Department of (with or without fittings or insulation) of fishing privileges. Groundfish fleet suitable for connecting an outdoor air diversity issues and social and Commerce (‘‘the Department’’) published in the Federal Register the following conditioner or heat pump to an indoor economic objectives will also be evaporator unit. The phrase ‘‘all sets of addressed. notice: Seamless Refined Copper Pipe and Tube From Mexico: Notice of covered products’’ denotes any 4. Other business may also be combination of items put up for sale discussed, including a review of Preliminary Determination of Sales at Less Than Fair Value and Postponement that is comprised of merchandise seasonal rolling closures if available. subject to the scope. The Committee’s recommendations of Final Determination, 75 FR 26726 ‘‘Refined copper’’ is defined as: (1) will be delivered to the full Council at (May 12, 2010) (‘‘Mexico Preliminary Metal containing at least 99.85 percent its meeting in Portland, ME on June 22– Determination’’). Subsequent to the by weight of copper; or (2) metal 24, 2010. publication of the notice in the Federal containing at least 97.5 percent by Although non-emergency issues not Register, we identified an inadvertent weight of copper, provided that the contained in this agenda may come error in the Mexico Preliminary content by weight of any other element before this group for discussion, those Determination. Specifically, the does not exceed the following limits: issues may not be the subject of formal Department made an error by inadvertently modifying the text within action during this meeting. Action will Limiting content be restricted to those issues specifically the section titled ‘‘Scope of Element percent by weight identified in this notice and any issues Investigation,’’ which caused certain arising after publication of this notice terms (e.g., seamless, circular, and Ag—Silver ...... 0.25 that require emergency action under refined) to be deleted from portions of As—Arsenic ...... 0.5 section 305(c) of the Magnuson-Stevens the scope language that was previously Cd—Cadmium ...... 1.3 Fishery Conservation and Management included in the Initiation Notice. See Cr—Chromium ...... 1.4 Seamless Refined Copper Pipe and Tube Mg—Magnesium ...... 0.8 Act, provided the public has been Pb—Lead ...... 1.5 notified of the Council’s intent to take From the People’s Republic of China S—Sulfur ...... 0.7 final action to address the emergency. and Mexico: Initiation of Antidumping Sn—Tin ...... 0.8 Duty Investigations, 74 FR 55194, 55199 Special Accommodations Te—Tellurium ...... 0.8 (October 27, 2009) (‘‘Initiation Notice’’). Zn—Zinc ...... 1.0 This meeting is physically accessible For reference, below is the correct scope Zr—Zirconium ...... 0.3 to people with disabilities. Requests for language of the instant investigation. Other elements (each) .. 0.3 sign language interpretation or other Scope of Investigation auxiliary aids should be directed to Paul Excluded from the scope of this J. Howard (see ADDRESSES) at least 5 For the purpose of this investigation, investigation are all seamless circular days prior to the meeting date. the products covered are all seamless hollows of refined copper less than 12 Authority: 16 U.S.C. 1801 et seq. circular refined copper pipes and tubes, inches in length whose OD (actual) including redraw hollows, greater than exceeds its length. Dated: May 24, 2010. or equal to 6 inches (152.4 mm) in The products subject to this Tracey L. Thompson, length and measuring less than 12.130 investigation are currently classifiable Acting Director, Office of Sustainable inches (308.102 mm) (actual) in outside under subheadings 7411.10.1030 and Fisheries, National Marine Fisheries Service. diameter (‘‘OD’’), regardless of wall 7411.10.1090 of the Harmonized Tariff [FR Doc. 2010–12803 Filed 5–27–10; 8:45 am] thickness, bore (e.g., smooth, enhanced Schedule of the United States BILLING CODE 3510–22–S with inner grooves or ridges), (‘‘HTSUS’’). Products subject to this

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investigation may also enter under Northeast Region, NMFS, 55 Great Blainville’s beaked whale, bottlenose HTSUS subheadings 7407.10.1500, Republic Drive, Gloucester, MA 01930; dolphin (Tursiops truncatus), Risso’s 7419.99.5050, 8415.90.8065, and phone (978)281–9300; fax (978)281– dolphin, short-beaked common dolphin 8415.90.8085. Although the HTSUS 9333; and (Delphinus delphis), and Cuvier’s subheadings are provided for Southeast Region, NMFS, 263 13th beaked whale. The amendment would convenience and customs purposes, the Avenue South, Saint Petersburg, Florida be valid through the current expiration written description of the scope of this 33701; phone (727)824–5312; fax date of the permit. investigation is dispositive. (727)824–5309. In compliance with the National Conclusion FOR FURTHER INFORMATION CONTACT: Environmental Policy Act of 1969 (42 Tammy Adams or Carrie Hubard, U.S.C. 4321 et seq.), an initial The Department clarifies that the (301)713–2289. determination has been made that the ‘‘Scope of Investigation’’ section of the SUPPLEMENTARY INFORMATION: The activity proposed is categorically Mexico Preliminary Determination was excluded from the requirement to unintentionally modified and no subject amendment to Permit No. 14241 is requested under the authority of the prepare an environmental assessment or changes to the scope of this environmental impact statement. investigation have occurred pursuant to Marine Mammal Protection Act of 1972, Concurrent with the publication of the Mexico Preliminary Determination. as amended (16 U.S.C. 1361 et seq.), and this notice in the Federal Register, Therefore, the scope language stated in the regulations governing the taking and NMFS is forwarding copies of this the Initiation Notice reflects the scope of importing of marine mammals (50 CFR this investigation. This notice is issued part 216. application to the Marine Mammal and published in accordance with Permit No. 14241, issued on July 15, Commission and its Committee of sections 733(f) and 777(i)(1) of the Tariff 2009 (74 FR 3668), authorizes the Scientific Advisors. Act of 1930, as amended. permit holder to conduct research on Dated: May 24, 2010. cetacean behavior, sound production, Tammy C. Adams, Dated: May 21, 2010. and responses to sound. The research Ronald K. Lorentzen, Acting Chief, Permits, Conservation and methods include tagging marine Education Division, Office of Protected Deputy Assistant Secretary for Import mammals with an advanced digital Resources, National Marine Fisheries Service. Administration. sound recording tag that records the [FR Doc. 2010–12824 Filed 5–27–10; 8:45 am] [FR Doc. C1–2010–12959 Filed 5–27–10; 8:45 am] acoustic stimuli an animal hears and BILLING CODE 3510–22–S BILLING CODE 3510–DS–P measures vocalization, behavior, and physiological parameters. Research also involves conducting sound playbacks in DEPARTMENT OF COMMERCE DEPARTMENT OF COMMERCE a carefully controlled manner and measuring animals’ responses. The National Oceanic and Atmospheric National Oceanic and Atmospheric principal study species are beaked Administration Administration whales, especially Cuvier’s beaked RIN 0648–XO45 whale (Ziphius cavirostris), and large RIN 0648–XW44 delphinids such as long-finned pilot Marine Mammals; receipt of whales (Globicephala melas), although Schedules for Atlantic Shark application for permit amendment other small cetacean species may also be Identification Workshops and AGENCY: National Marine Fisheries studied. The locations for the field work Protected Species Safe Handling, Service (NMFS), National Oceanic and are the Mediterranean Sea, waters off of Release, and Identification Workshops Atmospheric Administration (NOAA), the mid-Atlantic United States, and AGENCY: Commerce. Cape Cod Bay. The permit is valid National Marine Fisheries Service (NMFS), National Oceanic and ACTION: Notice. through July 31, 2014. The permit holder is requesting the Atmospheric Administration (NOAA), SUMMARY: Notice is hereby given that Dr. permit be amended to: (1) include Commerce. Peter Tyack, Woods Hole authorization for collection of a skin ACTION: Notice of public workshops. Oceanographic Institution, Woods Hole, and blubber biopsy sample from some MA has applied for an amendment to animals that are already authorized to SUMMARY: Free Atlantic Shark Permit No. 14241 to conduct research be tagged; (2) add new species for Identification Workshops and Protected on marine mammals. existing projects involving tagging, Species Safe Handling, Release, and ADDRESSES: The application and related playbacks, and behavioral observations; Identification Workshops will be held in documents are available for review by and (3) modify and clarify tagging and July, August, and September of 2010. selecting ‘‘Records Open for Public playback protocols and mitigation for Certain fishermen and shark dealers are Comment’’ from the Features box on the when dependent calves are present. The required to attend a workshop to meet Applications and Permits for Protected new species for the Mediterranean Sea- regulatory requirements and maintain Species home page, https:// based project are Blainville’s beaked valid permits. Specifically, the Atlantic apps.nmfs.noaa.gov, and then selecting whale (Mesoplodon densirostris), Shark Identification Workshop is File No. 14241 from the list of available Cuvier’s beaked whale, short-finned mandatory for all federally permitted applications. pilot whale (Globicephala Atlantic shark dealers. The Protected These documents are also available macrorhynchus), long-finned pilot Species Safe Handling, Release, and upon written request or by appointment whale, Risso’s dolphin (Grampus Identification Workshop is mandatory in the following office(s): griseus), and false killer whale for vessel owners and operators who use Permits, Conservation and Education (Pseudorca crassidens). The new bottom longline, pelagic longline, or Division, Office of Protected Resources, species for the project based off Cape gillnet gear, and who have also been NMFS, 1315 East-West Highway, Room Hatteras, North Carolina are True’s issued shark or swordfish limited access 13705, Silver Spring, MD 20910; phone beaked whale (M. mirus), Gervais’ permits. Additional free workshops will (301)713–2289; fax (301)713–0376; beaked whale (M. europaeus), be held in 2010.

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DATES: The Atlantic Shark Identification prohibited from renewing a Federal Protected Species Safe Handling, Workshops will be held July 8, August shark dealer permit unless a valid Release, and Identification Workshops 5, and September 2, 2010. Atlantic Shark Identification Workshop Since January 1, 2007, shark limited- The Protected Species Safe Handling, certificate for each business location access and swordfish limited-access Release, and Identification Workshops which first receives Atlantic sharks has permit holders who fish with longline will be held July 21, July 28, August 11, been submitted with the permit renewal or gillnet gear have been required to August 25, September 15, and application. Additionally, trucks or submit a copy of their Protected Species September 22, 2010. other conveyances which are extensions Safe Handling, Release, and See SUPPLEMENTARY of a dealer’s place of business must Identification Workshop certificate in INFORMATION for further details. possess a copy of a valid dealer or proxy order to renew either permit (71 FR ADDRESSES: The Atlantic Shark Atlantic Shark Identification Workshop 58057; October 2, 2006). These Identification Workshops will be held in certificate. certificate(s) are valid for 3 years. As Jefferson, LA; Panama City, FL; and Workshop Dates, Times, and Locations such, vessel owners who have not Wilmington, NC. already attended a workshop and The Protected Species Safe Handling, 1. July 8, 2010, 12 p.m. - 5 p.m., received a NMFS certificate, or vessel Release, and Identification Workshops Rosedale Branch Library, 4036 Jefferson owners whose certificate(s) will expire will be held in Clearwater, FL; Corpus Highway, Jefferson, LA 70121. prior to the next permit renewal, must Christi, TX; Wilmington, NC; Boston, 2. August 5, 2010, 12 p.m. - 5 p.m., attend a workshop to fish with, or MA; Manahawkin, NJ; and Kenner, LA. National Marine Fisheries Service renew, their swordfish and shark See SUPPLEMENTARY Library, 3500 Delwood Beach Road, limited-access permits. Additionally, INFORMATION for further details on Panama City, FL 32408. new shark and swordfish limited-access workshop locations. 3. September 2, 2010, 12 p.m. - 5 p.m., permit applicants who intend to fish FOR FURTHER INFORMATION CONTACT: Comfort Inn (UNC-Wilmington), 151 with longline or gillnet gear must attend Richard A. Pearson by phone: (727) South College Road, Wilmington, NC a Protected Species Safe Handling, 824–5399, or by fax: (727) 824–5398. 28403. Release, and Identification Workshop and submit a copy of their workshop SUPPLEMENTARY INFORMATION: The Registration workshop schedules, registration certificate before either of the permits information, and a list of frequently To register for a scheduled Atlantic will be issued. Approximately 88 free asked questions regarding these Shark Identification Workshop, please Protected Species Safe Handling, workshops are posted on the Internet at: contact Eric Sander at Release, and Identification Workshops http://www.nmfs.noaa.gov/sfa/hms/ [email protected] or at (386) 852– have been conducted since 2006. workshops/. 8588. In addition to certifying vessel owners, at least one operator on board Atlantic Shark Identification Registration Materials vessels issued a limited-access Workshops To ensure that workshop certificates swordfish or shark permit that uses Since January 1, 2008, Atlantic shark are linked to the correct permits, longline or gillnet gear is required to dealers have been prohibited from participants will need to bring specific attend a Protected Species Safe receiving, purchasing, trading, or items to the workshop: Handling, Release, and Identification bartering for Atlantic sharks unless a • Atlantic shark dealer permit Workshop and receive a certificate. valid Atlantic Shark Identification holders must bring proof that the Vessels that have been issued a limited- Workshop certificate is on the premises attendee is an owner or agent of the access swordfish or shark permit and of each business listed under the shark business (such as articles of that use longline or gillnet gear may not dealer permit which first receives incorporation), a copy of the applicable fish unless both the vessel owner and Atlantic sharks (71 FR 58057; October 2, permit, and proof of identification. operator have valid workshop 2006). Dealers who attend and • Atlantic shark dealer proxies must certificates onboard at all times. The successfully complete a workshop are bring documentation from the permitted certificate(s) are valid for 3 years. As issued a certificate for each place of dealer acknowledging that the proxy is such, vessel operators who have not business that is permitted to receive attending the workshop on behalf of the already attended a workshop and received a NMFS certificate, or vessel sharks. These certificate(s) are valid for permitted Atlantic shark dealer for a operators whose certificate(s) will 3 years. Approximately 45 free Atlantic specific business location, a copy of the expire prior to their next fishing trip, Shark Identification Workshops have appropriate valid permit, and proof of must attend a workshop to operate a been conducted since January 2007. identification. vessel with swordfish and shark Currently permitted dealers may send Workshop Objectives limited-access permits that uses with a proxy to an Atlantic Shark longline or gillnet gear. Identification Workshop. However, if a The Atlantic Shark Identification dealer opts to send a proxy, the dealer Workshops are designed to reduce the Workshop Dates, Times, and Locations must designate a proxy for each place of number of unknown and improperly 1. July 21, 2010, 9 a.m. - 5 p.m., business covered by the dealer’s permit identified sharks reported in the dealer Holiday Inn, 3535 Ulmerton Road, which first receives Atlantic sharks. reporting form and increase the Clearwater, FL 33762. Only one certificate will be issued to accuracy of species-specific dealer- 2. July 28, 2010, 9 a.m. - 5 p.m., each proxy. A proxy must be a person reported information. Reducing the Holiday Inn, 5549 Leopard Street, who is currently employed by a place of number of unknown and improperly Corpus Christi, TX 78408. business covered by the dealer’s permit; identified sharks will improve quota 3. August 11, 2010, 9 a.m. - 5 p.m., is a primary participant in the monitoring and the data used in stock Hilton Garden Inn, 6745 Rock Spring identification, weighing, and/or first assessments. These workshops will train Road, Wilmington, NC 28405. receipt of fish as they are offloaded from shark dealer permit holders or their 4. August 25, 2010, 9 a.m. - 5 p.m., a vessel; and who fills out dealer proxies to properly identify Atlantic Hilton Inn (at Boston Logan airport), 1 reports. Atlantic shark dealers are shark carcasses. Hotel Drive, Boston, MA 02128.

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5. September 15, 2010, 9 a.m. - 5 p.m., whose certificates expire prior to the which the Federal government can Holiday Inn, 151 Route 72 East, next permit renewal or fishing trip must improve its programs to support exports Manahawkin, NJ 08020. attend a workshop, successfully of U.S. goods and services related to 6. September 22, 2010, 9 a.m. - 5 p.m., complete the course, and obtain a new renewable energy and energy efficiency; Hilton Inn (at New Orleans Louis certificate in order to fish with or renew Federal activities and programs that Armstrong airport), 901 Airline Drive, their limited-access shark and limited- would benefit from increased Kenner, LA 70062. access swordfish permits. Failure to interagency cooperation; and generally provide a valid NOAA workshop how the Federal government can better Registration certificate could result in a permit help U.S. businesses export more To register for a scheduled Protected denial. renewable energy and energy efficiency Species Safe Handling, Release, and Dated: May 24, 2010. technologies. Identification Workshop, please contact This input will be used to help guide Angler Conservation Education at (386) Emily H. Menashes, the TPCC in its formulation of the 682–0158. Acting Director, Office of Sustainable strategy that will support the NEI, with Fisheries, National Marine Fisheries Service. the goal of doubling U.S. exports by Registration Materials [FR Doc. 2010–12919 Filed 5–27–10; 8:45 am] 2015. To ensure that workshop certificates BILLING CODE 3510–22–S DATES: Comments must be received by are linked to the correct permits, 11:59 p.m. on July 10, 2010, to be participants will need to bring specific considered. items with them to the workshop: DEPARTMENT OF COMMERCE • Individual vessel owners must ADDRESSES: To provide input to the International Trade Administration bring a copy of the appropriate TPCC Renewable Energy and Energy Efficiency Working Group, please send swordfish and/or shark permit(s), a copy Department of Commerce: Trade of the vessel registration or comments by post, e-mail or fax to the Promotion Coordinating Committee attention of Julius Svoboda, Office of documentation, and proof of Renewable Energy and Energy identification. Energy & Environmental Industries, • Efficiency Export Strategy To Support International Trade Administration, Representatives of a business the National Export Initiative owned or co-owned vessel must bring U.S. Department of Commerce, 1401 proof that the individual is an agent of AGENCY: International Trade Constitution Ave., NW., Room 4053, the business (such as articles of Administration, Department of Washington, DC 20230; 202–482–4152; incorporation), a copy of the applicable Commerce. e-mail [email protected]; fax 202– swordfish and/or shark permit(s), and ACTION: Notice and request for comment. 482–5665. Electronic responses should proof of identification. be submitted in Microsoft Word format. • Vessel operators must bring proof SUMMARY: In order to support President Information identified as confidential of identification. Obama’s National Export Initiative will be protected to the extent permitted (NEI), the interagency Trade Promotion by law. Workshop Objectives Coordinating Committee’s (TPCC) SUPPLEMENTARY INFORMATION: On March The Protected Species Safe Handling, Renewable Energy and Energy 11, 2010, President Obama issued Release, and Identification Workshops Efficiency Working Group is developing Executive Order 13534, which created are designed to teach longline and a U.S. Renewable Energy and Energy the NEI in order to enhance and gillnet fishermen the required Efficiency Export Strategy (the Strategy) coordinate Federal efforts to facilitate techniques for the safe handling and to guide U.S. government programs the creation of jobs in the United States release of entangled and/or hooked supporting U.S. renewable energy and through the promotion of exports and to protected species, such as sea turtles, energy efficiency companies wishing to ensure the effective use of Federal marine mammals, and smalltooth compete for sales abroad. The Strategy resources in support of these goals, The sawfish. In an effort to improve focuses on increasing exports of goods Executive Order created the Export reporting, the proper identification of and services related to renewable energy Promotion Cabinet, which coordinates protected species will also be taught at and energy efficiency. Not included in with the TPCC, to provide the President these workshops. Additionally, this initiative are all goods and services a comprehensive plan within 180 days individuals attending these workshops that relate to the transport sector, to carry out the goals of the NEI. In will gain a better understanding of the including biofuels and biofuel response to Executive Order 13534, and requirements for participating in these feedstock. with a view to increasing the amount of fisheries. The overall goal of these The TPCC Renewable Energy and U.S. exports related to Renewable workshops is to provide participants Energy Efficiency Working Group seeks Energy and Energy Efficiency, the TPCC with the skills needed to reduce the input from private businesses, trade Working Group on Renewable Energy mortality of protected species, which associations, academia, labor and Energy Efficiency has agreed to may prevent additional regulations on organizations, non-governmental prepare, in conjunction with other these fisheries in the future. organizations, and other interested relevant TPCC Working Groups, a parties regarding foreign or domestic National Renewable Energy and Energy Grandfathered Permit Holders policies or conditions of competition Efficiency Export Strategy for Participants in the industry-sponsored that impede exports faced by exporters consideration by the Export Promotion workshops on safe handling and release of the relevant goods and services; Cabinet for inclusion in the NEI of sea turtles that were held in Orlando, effectiveness or ineffectiveness of implementation plan. The Strategy will FL (April 8, 2005), and in New Orleans, Federal government programs entail: (1) An evaluation of the current LA (June 27, 2005), were issued a supporting U.S. exports of renewable global renewable energy and energy NOAA workshop certificate in energy and energy efficiency efficiency energy market; (2) an analysis December 2006 that was valid for 3 technology, including specific of overlaps and gaps in Federal years. These workshop certificates have experiences with such Federal government programs designed to boost expired. Vessel owners and operators government programs; specific ways in exports related to renewable energy and

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energy efficiency; and (3) goals of the COMMITTEE FOR PURCHASE FROM Comments on this certification are TPCC Working Group on Renewable PEOPLE WHO ARE BLIND OR invited. Commenters should identify the Energy and Energy Efficiency SEVERELY DISABLED statement(s) underlying the certification supporting the sector. The Strategy will on which they are providing additional be completed in September 2010 to Procurement List Proposed Additions information. and Deletion coincide with the release of the first NEI End of Certification report to the President. AGENCY: Committee for Purchase From The following products are proposed The Trade Promotion Coordinating People Who Are Blind or Severely for addition to Procurement List to be Committee—The TPCC is an Disabled. furnished by the nonprofit agencies interagency committee that coordinates ACTION: Proposed Additions to and listed: Deletion From the Procurement List. the development of U.S. Government Products trade promotion policies and programs. SUMMARY: The Committee is proposing NSN: 7530–01–285–8355—Padded, yellow, 4 The TPCC is composed of to add to the Procurement List products x 6’’ unruled self stick notes. representatives from 20 Federal to be furnished by nonprofit agencies NSN: 7530–01–385–7560—Padded, bright, 1– agencies. The Department of Commerce employing persons who are blind or 1/2 x 2’’ self stick notes. and the Department of Energy co-chair have other severe disabilities, and to NPA: Association for the Blind & Visually the TPCC Renewable Energy and Energy delete a service previously furnished by Impaired & Goodwill Ind. of Greater Efficiency Working Group. Other such agency. Rochester, Rochester, NY. Contracting Activity: Federal Acquisition Working Group agencies include the COMMENTS MUST BE RECEIVED ON OR Service, GSA/FSS OFC SUP CTR—Paper Export-Import Bank, the Overseas BEFORE: 6/28/2010. Products, New York, NY. Private Investment Corporation, the U.S. ADDRESSES: Committee for Purchase Coverage: A–List for the Total Government Trade and Development Agency, the From People Who Are Blind or Severely Requirement as aggregated by the GSA/ Small Business Administration, the Disabled, Jefferson Plaza 2, Suite 10800, FSS OFC SUP CTR—Paper Products. Departments of Agriculture, State, and 1421 Jefferson Davis Highway, Peel N Stick Kit Labor, and the Office of the U.S. Trade Arlington, Virginia, 22202–3259. NSN: 7220–01–579–6870. Representative. FOR FURTHER INFORMATION OR TO SUBMIT NSN: 7220–01–579–6875. The TPCC Renewable Energy and COMMENTS CONTACT: Barry S. Lineback, NSN: 7220–01–579–6876. Telephone: (703) 603–7740, Fax: (703) NSN: 7220–01–579–6877. Energy Efficiency Working Group—The NSN: 7220–01–579–6880. Renewable Energy and Energy 603–0655, or e-mail [email protected]. NPA: Louisiana Association for the Blind, Efficiency Working Group is a sub- Shreveport, LA. group of the TPCC focused on the SUPPLEMENTARY INFORMATION: This Contracting Activity: Federal Acquisition coordination and development of notice is published pursuant to 41 Service, GSA/FSS Household and government-wide export assistance to U.S.C. 47(a)(2) and 41 CFR 51–2.3. Its Industrial Furniture, Arlington, VA. Coverage: B–List for the Broad Government goods and services related to renewable purpose is to provide interested persons an opportunity to submit comments on Requirement as aggregated by the GSA/ energy and energy efficiency. The FSS Household and Industrial Furniture. Renewable Energy and Energy the proposed actions. Pen, Ballpoint, Retractable Efficiency Working Group held its first Additions meeting on January 22, 2010. NSN: 7520–00–NIB–2091—3/PG, 1.0 mm If the Committee approves the medium point, blue ink. The National Export Initiative—NEI is proposed additions, the entities of the NSN: 7520–00–NIB–2092—3/PG, 1.0 mm an Obama Administration initiative to Federal Government identified in this medium point, black ink. improve conditions that directly affect notice will be required to furnish the NSN: 7520–00–NIB–2093—3/PG, 0.7 mm the private sector’s ability to export. The products listed below from nonprofit fine point, blue ink. NEI is intended to meet the agencies employing persons who are NSN: 7520–00–NIB–2094—3/PG, 0.7 mm blind or have other severe disabilities. fine point, black ink. Administration’s goal of doubling NSN: 7520–00–NIB–2097—6/PG, 1.0 mm exports over the next 5 years by working Regulatory Flexibility Act Certification medium point, black ink. to remove export barriers, by helping NSN: 7520–00–NIB–2098—6/PG, 1.0 mm firms—especially small businesses— I certify that the following action will medium point, blue ink. not have a significant impact on a overcome the hurdles to entering new Coverage: A–List for the Total Government substantial number of small entities. export markets, assisting with financing, Requirement as aggregated by the GSA/ The major factors considered for this FSS OFC SUP CTR—PAPER and in general by pursuing a certification were: PRODUCTS. government-wide approach to export 1. If approved, the action will not NSN: 7520–00–NIB–2099—6/PG, 1.0 mm advocacy abroad, among other steps. result in any additional reporting, medium point, asst. color ink—2 ea of 3 colors. Edward A. O’Malley, recordkeeping or other compliance requirements for small entities other Coverage: B–List for the Broad Government Director, Office of Energy and Environmental than the small organizations that will Requirement as aggregated by the GSA/ Industries, International Trade FSS OFC SUP CTR—Paper Products. Administration, U.S. Department of furnish the products to the Government. NPA: Industries for the Blind, Inc., West Commerce. 2. If approved, the action will result Allis, WI. in authorizing small entities to furnish [FR Doc. 2010–12982 Filed 5–27–10; 8:45 am] Contracting Activity: Federal Acquisition the products to the Government. Service, GSA/FSS OFC SUP CTR—Paper BILLING CODE P 3. There are no known regulatory Products, New York, NY. alternatives which would accomplish Deletion the objectives of the Javits-Wagner- O’Day Act (41 U.S.C. 46–48c) in Regulatory Flexibility Act Certification connection with the products proposed I certify that the following action will not for addition to the Procurement List. have a significant impact on a substantial

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number of small entities. The major factors on the current or most recent PLACE: 1155 21st St., NW., Washington, considered for this certification were: contractors, the Committee has DC, 9th Floor Commission Conference 1. If approved, the action will not result in determined that the service listed below Room. additional reporting, recordkeeping or other is suitable for procurement by the compliance requirements for small entities. STATUS: Closed. 2. If approved, the action may result in Federal Government under 41 U.S.C. MATTERS TO BE CONSIDERED: Surveillance authorizing small entities to provide a service 46–48c and 41 CFR 51–2.4. Matters. to the Government. Regulatory Flexibility Act Certification CONTACT PERSON FOR MORE INFORMATION: 3. There are no known regulatory Sauntia S. Warfield, 202–418–5084. alternatives which would accomplish the I certify that the following action will objectives of the Javits-Wagner-O’Day Act (41 not have a significant impact on a Sauntia S. Warfield, U.S.C. 46–48c) in connection with a service substantial number of small entities. Assistant Secretary of the Commission. proposed for deletion from the Procurement The major factors considered for this [FR Doc. 2010–13076 Filed 5–26–10; List. certification were: 4:15 pm] End of Certification 1. The action will not result in any BILLING CODE 6351–01–P The following service is proposed for additional reporting, recordkeeping or deletion from the Procurement List: other compliance requirements for small COMMODITY FUTURES TRADING Service entities other than the small organizations that will provide a service COMMISSION Service Type/Location: Food Service to the Government. Attendant, Brunswick Naval Air Station: Sunshine Act Meetings Building 201, New Brunswick, ME. 2. The action will result in NPA: Pathways, Inc., Auburn, ME. authorizing small entities to provide a TIME AND DATE: 11 a.m., Friday June 25, Contracting Activity: Dept. of the Navy, U.S. service to the Government. 2010. Fleet Forces Command, Norfolk, VA. 3. There are no known regulatory PLACE: 1155 21st St., NW., Washington, Barry S. Lineback, alternatives which would accomplish DC, 9th Floor Commission Conference the objectives of the Javits-Wagner- Director, Business Operations. Room. O’Day Act (41 U.S.C. 46–48c) in STATUS: Closed. [FR Doc. 2010–12898 Filed 5–27–10; 8:45 am] connection with this service proposed MATTERS TO BE CONSIDERED: BILLING CODE 6353–01–P for addition to the Procurement List. Surveillance Matters. End of Certification CONTACT PERSON FOR MORE INFORMATION: COMMITTEE FOR PURCHASE FROM Accordingly, the following service is Sauntia S. Warfield, 202–418–5084. PEOPLE WHO ARE BLIND OR added to the Procurement List: SEVERELY DISABLED Sauntia S. Warfield, Service Assistant Secretary of the Commission. Procurement List Addition Service Type: Contract Management [FR Doc. 2010–13082 Filed 5–26–10; 4:15 pm] AGENCY: Committee for Purchase From Administrative Support Services BILLING CODE 6351–01–P People Who Are Blind or Severely Associated with Contract Closeout. Service Locations: Specified Department of Disabled. Defense (DoD) locations. Requiring COMMODITY FUTURES TRADING ACTION: Addition to the Procurement activities and locations will be specified COMMISSION List. in this Notice or by Committee administrative action. Current DoD Sunshine Act Meetings SUMMARY: This action adds to the requiring activities and specified Procurement List a service to be locations are Fort Sam Houston, TX; JCC/ TIME AND DATE: 11 a.m., June 18, 2010. provided by nonprofit agencies IA Garcia Building, San Antonio, TX; PLACE: 1155 21st St., NW., Washington, employing persons who are blind or MICC–USAR–CENTER–FORT DIX, NJ DC, 9th Floor Commission Conference have other severe disabilities. (Offsite Location: 10360 Drummond Road Philadelphia, PA). Additional DoD Room. DATES: Effective Date: June 28, 2010. requiring activities and specified STATUS: Closed. ADDRESSES: Committee for Purchase locations will be identified in the MATTERS TO BE CONSIDERED: Surveillance From People Who Are Blind or Severely Committee’s Procurement List, available Matters. Disabled, Jefferson Plaza 2, Suite 10800, at http://www.abilityone.gov. 1421 Jefferson Davis Highway, Contracting Activity: Mission & Installation CONTACT PERSON FOR MORE INFORMATION: Arlington, Virginia, 22202–3259. Contracting Command Center, Fort Sauntia S. Warfield, 202–418–5084. Knox, KY. FOR FURTHER INFORMATION CONTACT: Sauntia S. Warfield, NPA: NIB. Barry S. Lineback, Telephone: (703) Assistant Secretary of the Commission. 603–7740, Fax: (703) 603–0655, or e- Barry S. Lineback, [FR Doc. 2010–13086 Filed 5–26–10; 4:15 pm] mail [email protected]. Director, Business Operations. BILLING CODE 6351–01–P SUPPLEMENTARY INFORMATION: [FR Doc. 2010–12899 Filed 5–27–10; 8:45 am] Addition BILLING CODE 6353–01–P COMMODITY FUTURES TRADING On 12/18/2009 (74 FR 67176–67177), COMMISSION the Committee for Purchase From People Who Are Blind or Severely COMMODITY FUTURES TRADING Sunshine Act Meetings Disabled published a notice of proposed COMMISSION addition to the Procurement List. TIME AND DATE: 2 p.m., Wednesday, June After consideration of the material Sunshine Act Meetings 16, 2010. presented to it concerning capability of PLACE: 1155 21st St., NW., Washington, qualified nonprofit agencies to provide TIME AND DATE: 11 a.m., Friday, June 4, DC, 9th Floor Commission Conference the service and impact of the addition 2010. Room.

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STATUS: Closed. COUNCIL ON ENVIRONMENTAL FOR FURTHER INFORMATION CONTACT: MATTERS TO BE CONSIDERED: QUALITY Horst Greczmiel, Associate Director for Enforcement Matters. NEPA Oversight, Council on Review of MMS NEPA Policies, Environmental Quality, at (202) 395– CONTACT PERSON FOR MORE INFORMATION: Practices, and Procedures for OCS Oil 5750. Sauntia S. Warfield, 202–418–5084. and Gas Exploration and Development SUPPLEMENTARY INFORMATION: Sauntia S. Warfield, AGENCY: Council on Environmental NEPA and Offshore Drilling Assistant Secretary of the Commission. Quality. [FR Doc. 2010–13084 Filed 5–26–10; 4:15 pm] ACTION: Notice of Review and Request Enacted in 1970, NEPA mandates that BILLING CODE 6351–01–P for Public Comment. Federal agencies consider the environmental impacts of their SUMMARY: On May 17, 2010, the Council proposed actions during all stages of COMMODITY FUTURES TRADING on Environmental Quality (CEQ) decision making, from planning to COMMISSION informed the Department of the Interior implementation. NEPA is a fundamental (DOI) that CEQ was conducting a 30 day decision-making tool used to harmonize Sunshine Act Meetings review National Environmental Policy our economic, environmental, and Act (NEPA) policies, practices, and social aspirations and is a cornerstone of TIME AND DATE: 11 a.m., Friday, June 11, procedures for the Minerals our Nation’s efforts to protect the 2010. Management Service (MMS) decisions environment. NEPA applies to every PLACE: 1155 21st St., NW., Washington, for Outer Continental Shelf (OCS) oil stage of Federal decision making related DC, 9th Floor Commission Conference and gas exploration and development. to offshore oil and gas exploration and Room. This review of MMS NEPA policies, development. When an agency proposes practices and procedures is being STATUS: Closed. an action, it must determine if the conducted as a result of the oil spill action has the potential to affect the MATTERS TO BE CONSIDERED: Surveillance from the Deepwater Horizon well and Matters. quality of the human environment. drilling rig in the Gulf of Mexico. The Agencies then apply one of three levels CONTACT PERSON FOR MORE INFORMATION: purpose of this review is to ascertain of NEPA analysis. They may: Prepare an Sauntia S. Warfield, 202–418–5084. how MMS applies NEPA in its Environmental Impact Statement (EIS) management of Outer Continental Shelf Sauntia S. Warfield, when the agency projects the proposed oil and gas exploration and action has the potential for significant Assistant Secretary of the Commission. development and make [FR Doc. 2010–13079 Filed 5–26–10; 4:15 pm] environmental impacts; apply a recommendations for revisions. The Categorical Exclusion (CE) when the BILLING CODE 6351–01–P scope of the review is intended to be agency has previously established a CE holistic, i.e. from leasing decisions to based on its determination that drilling and production. proposed action falls within the In line with CEQ’s effort to engage the categories of actions described in the CE CONSUMER PRODUCT SAFETY public in the NEPA process and the which the agency has found do not COMMISSION President’s Open Government Initiative, typically result in individually or this notice is also a solicitation for Sunshine Act Meetings cumulatively significant environmental public comment on the review process effects or impacts; or the agency undertaken by CEQ as well as on TIME AND DATE: Wednesday, June 2, prepares an Environmental Assessment current MMS NEPA policies, practices, 2010; 2 p.m.–4 p.m. (EA) to determine whether it can make and procedures regarding Outer a Finding of No Significant Impact or PLACE: Hearing Room 420, Bethesda Continental Shelf oil and gas proceed to prepare an EIS. Towers, 4330 East West Highway, exploration and development. Public Bethesda, Maryland. Under the Outer Continental Shelf participation in this review effort will Lands Act, MMS has implemented a STATUS: Closed to the Public. benefit this specific review process, the process for oil and gas development MMS NEPA implementation, CEQ’s Matters To Be Considered consisting of the following stages: (1) overall effectiveness in overseeing Preparing a nationwide 5-year oil and Compliance Status Report NEPA, and the environmental and gas development program, (2) planning The Commission staff will brief the social consequences of government for and holding a specific lease sale, (3) Commission on the status of compliance activity. approving a company’s exploration matters. DATES: Comments should be submitted plan, and (4) approving a company’s For a recorded message containing the as soon as possible on the CEQ review, development and production plan. latest agenda information, call (301) recognizing that the review is to be MMS is required to apply NEPA during 504–7948. completed June 17, 2010. each of these stages, beginning with the CONTACT PERSON FOR MORE INFORMATION: ADDRESSES: All relevant information initial planning of outer continental Todd A. Stevenson, Office of the related to MMS NEPA procedures and shelf leasing and ending with a decision Secretary, U.S. Consumer Product the review process is available at http:// on a specific well. The sequence of Safety Commission, 4330 East West www.whitehouse.gov/ceq/initiatives/ NEPA analyses is informed by the CEQ Highway, Bethesda, MD 20814 (301) nepa. Comments on the procedures and Regulations Implementing the 504–7923. review should be submitted Procedural Requirements of the electronically at the above URL or to National Environmental Policy Act, 40 Dated: May 25, 2010. [email protected] or in writing to CFR parts 1500–1508 available at Todd A. Stevenson, Associate Director for NEPA Oversight, http://ceq.hss.doe.gov/ceq_regulations/ Secretary. Council on Environmental Quality, 722 regulations.html. Specifically, 40 CFR [FR Doc. 2010–13064 Filed 5–26–10; 4:15 pm] Jackson Place NW., Washington, DC 1502.20, discusses ‘‘tiering,’’ a strategy BILLING CODE 6355–01–P 20503. used to avoid repetitive discussions of

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the same issues, and to prevent ceq_regulations/regulations.html). The specific agency NEPA actions unnecessary duplication of work by regulations require Federal agencies to illuminates areas where agency reviewers, as the NEPA reviews progress establish their own NEPA implementing reviewers may have overlooked or from a broad program to a site specific procedures (see 40 CFR 1507.3), and to misinterpreted portions of a submitted action. In the case of the Gulf of Mexico ensure that they have the capacity, in EIS or EA. leases, MMS prepared several tiered terms of personnel and other resources, Public participation in this review NEPA analyses (see NEPA to comply with NEPA (see 40 CFR environmental review documents 1507.2). process allows CEQ to similarly tap into available at http://www.mms.gov/5- CEQ periodically issues guidance and the collective wisdom of industry, year/2007–2012BackgroundDocs.htm other documents, such as guides and academia, state, local, and tribal and http://www.gomr.mms.gov/homepg/ handbooks for NEPA. CEQ also governments, and the rest of the private regulate/environ/nepa/ convenes meetings with Federal NEPA sector. CEQ is soliciting comments, nepaprocess.html). contacts to present CEQ’s interpretation questions, and other input about a Environmental Impact Statements of NEPA requirements and focus on number of specific issues focused on the (EIS), the most intensive level of how agencies can improve their NEPA NEPA review of OCS oil and gas analysis, were prepared at two decision analyses and documents. Through case exploration and development: points. First, in April 2007, MMS law, the Federal courts and the Supreme 1. What are substantive issues and at ‘‘ ’’ prepared a broad programmatic EIS on Court have established that the agencies what level should they be analyzed in the Outer Continental Shelf Oil and Gas can rely on CEQ’s interpretation of, and each of the tiered NEPA submissions, Leasing Program for 2007–2012. Also, in guidance on, NEPA. April 2007, MMS prepared an EIS for Agencies establish their own NEPA from National 5-Year Oil and Gas the Gulf of Mexico OCS Oil and Gas implementing procedures which tailor Program to an individual well permit? Lease Sales in the Western and Central the CEQ requirements to a specific 2. Does this sequence of permitting Planning Areas, the ‘‘multi-sale’’ EIS. agency’s authorities and decisionmaking stages (and associate NEPA In October 2007, MMS completed processes. MMS must comply with the submissions) allow for comprehensive another NEPA analysis, an Department of the Interior NEPA evaluation of all relevant issues? Environmental Assessment (EA), under regulations (available at http://www.doi. 3. What have been past industry and the multi-sale EIS, for Central Gulf of gov/oepc/nepafr.html) and the MMS agency experiences with the use of Mexico Lease Sale 206. This is the sale NEPA implementing procedures found in which the lease was issued for the in the Department of the Interior’s categorical exclusions for OCS oil and location that includes the Deepwater Director’s Manual 516 at Chapter 15 gas activities? Horizon well. MMS previously (available at http://elips.doi.gov/app_ 4. Has the use of the CER process been approved BP’s development operations DM/act_getfiles.cfm?relnum=3625). CEQ an effective tool for reducing based on a programmatic EA that MMS provides assistance when agency- unnecessary paperwork without prepared in December 2002. specific procedures, such as these DOI compromising the robustness of the Finally, for the Deepwater Horizon and MMS NEPA implementing NEPA analysis for OCS oil and gas well, MMS applied its existing procedures, are developed. An agency’s activities? Categorical Exclusion Review (CER) NEPA procedures are not official until process prior to the decision to approve CEQ reviews the proposed procedures 5. To what degree has public the Exploration Plan that included the and determines that they are in engagement been a part of MMS NEPA drilling of the Deepwater Horizon well. conformity with NEPA and the CEQ practice, particularly as it deals with The Categorical Exclusion used by MMS regulations. Any subsequent revisions categorical exclusions? for Deepwater Horizon was established or changes to the agency procedures are 6. What resources are available in more than 20 years ago. Under section subject to the same oversight process Federal, tribal, state, and local 11 of the Outer Continental Shelf Lands with CEQ. Periodically, CEQ also government agencies with a stake in Act, 43 U.S.C. section 1340, MMS had reviews the agency’s NEPA OCS oil and gas exploration and 30 days to complete its environmental implementing regulations and development to participate in NEPA review and act on the application to procedures. CEQ does not review every reviews? permit drilling. The Administration, in application of a Categorical Exclusion, its supplemental budget request sent to every agency project, or the NEPA In addition to input on the above Congress on May 12, 2010, seeks to review for every agency project. The issues, general comments and questions extend that 30-day timeline; however, CEQ review will review the NEPA are also welcome. Information relevant this review will consider the existing analyses conducted for the Deepwater to this MMS NEPA policy review can be statutory requirements applicable to Horizon well as well as the overall found on the CEQ Web site at http:// MMS decisions for OCS oil and gas NEPA process MMS uses for OCS oil www.whitehouse.gov/ceq/initiatives/ exploration and development. and gas exploration and development. nepa. The Role of CEQ in the NEPA Process Discussion of the Request for Public Public comments are requested as Comment soon as possible in light of the June 17, NEPA charges the Council on 2010, deadline for the CEQ review. Environmental Quality (CEQ) with the NEPA itself emphasizes public authority and responsibility to guide involvement in government actions Dated: May 25, 2010. Federal agencies on their affecting the environment by requiring Nancy Sutley, implementation of the Act. In 1978, that the environmental impacts or Chair, Council on Environmental Quality. CEQ issued regulations implementing effects associated with proposed actions [FR Doc. 2010–13111 Filed 5–27–10; 8:45 am] the procedural provisions of NEPA. be assessed and publicly disclosed. BILLING CODE 3125–W0–P These regulations apply to all Federal NEPA is steeped in the principle that agencies and establish the basic public accountability and oversight framework for all NEPA analyses makes government more effective. (available at http://ceq.hss.doe.gov/ Public access to and participation in

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DEPARTMENT OF DEFENSE SUMMARY: The Department of Defense is The following is a copy of a letter to publishing the unclassified text of a the Speaker of the House of Office of the Secretary section 36(b)(1) arms sales notification Representatives, Transmittal No. 10–22 [Transmittal No. 10–22] to fulfill the requirements of section 155 with attached transmittal and policy of Public Law 104–164 dated 21 July justification. 36(b)(1) Arms Sales Notification 1996. Dated: May 24, 2010. Mitchell S. Bryman, AGENCY: Defense Security Cooperation FOR FURTHER INFORMATION CONTACT: Ms. Agency, DoD. B. English, DSCA/DBO/CFM, (703) 601– Alternate OSD Federal Register Liaison Officer, Department of Defense. ACTION: Notice. 3740. BILLING CODE 5001–06–P

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[FR Doc. 2010–12765 Filed 5–27–10; 8:45 am] BILLING CODE 5001–06–C

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DEPARTMENT OF DEFENSE be appointed as experts and consultants All written statements shall be under the authority of 5 U.S.C. 3109 and submitted to the Designated Federal Office of the Secretary shall serve as special government Officer for the Threat Reduction employees. Advisory Committee, and this Federal Advisory Committee; Threat With the exception of travel and per individual will ensure that the written Reduction Advisory Committee diem for travel, Committee members statements are provided to the AGENCY: Department of Defense (DoD). shall normally serve without membership for their consideration. compensation, unless the Secretary of ACTION: Contact information for the Threat Renewal of Federal advisory Defense authorizes compensation for a Reduction Advisory Committee committee. particular member(s). The Under Secretary of Defense for Designated Federal Officer can be SUMMARY: Under the provisions of the obtained from the GSA’s FACA Federal Advisory Committee Act of Acquisition, Technology and Logistics shall select the Committee’s Database—https://www.fido.gov/ 1972, (5 U.S.C. Appendix), the facadatabase/public.asp. Government in the Sunshine Act of Chairperson from the Committee 1976 (5 U.S.C. 552b), and 41 CFR 102– membership at large. The Designated Federal Officer, With DoD approval, the Committee is 3.50, the Department of Defense gives pursuant to 41 CFR 102–3.150, will authorized to establish subcommittees, notice that it is renewing the charter for announce planned meetings of the as necessary and consistent with its the Threat Reduction Advisory Threat Reduction Advisory Committee. mission. These subcommittees or Committee (hereafter referred to as the The Designated Federal Officer, at that working groups shall operate under the Committee). time, may provide additional guidance provisions of the Federal Advisory on the submission of written statements FOR FURTHER INFORMATION CONTACT: Jim Committee Act of 1972, the Government that are in response to the stated agenda Freeman, Deputy Committee in the Sunshine Act of 1976 (5 U.S.C. for the planned meeting in question. Management Officer for the Department 552b), and other appropriate Federal of Defense, 703–601–6128. statutes and regulations. Dated: May 25, 2010. SUPPLEMENTARY INFORMATION: The Such subcommittees or workgroups Mitchell S. Bryman, Committee is a discretionary Federal shall not work independently of the Alternate OSD Federal Register Liaison advisory committee established to chartered Committee, and shall report Officer, Department of Defense. provide independent advice and all their recommendations and advice to [FR Doc. 2010–12927 Filed 5–27–10; 8:45 am] recommendations on matters relating to the Committee for full deliberation and combating weapons of mass destruction discussion. Subcommittees or BILLING CODE 5001–06–P to the Secretary of Defense through the workgroups have no authority to make Under Secretary of Defense for decisions on behalf of the chartered DEPARTMENT OF DEFENSE Acquisition, Technology and Logistics Committee nor can they report directly and the Director of the Defense Threat to the Department of Defense or any Office of the Secretary Reduction Agency on the following: Federal officers or employees who are a. Reducing the threat posed by not Committee members. Federal Advisory Committee; Defense nuclear, biological, chemical, Subcommittee members, who are not Task Force on Sexual Assault in the conventional and special weapons to Committee members, shall be appointed Military Services the United States, its military forces, in the same manner as the Committee allies and partners; members. AGENCY: Department of Defense (DoD). b. Combating weapons of mass The Committee shall meet at the call destruction to include non-proliferation, of the Committee’s Designated Federal ACTION: Termination of federal advisory counter proliferation and consequence Officer, in consultation with the committee. management; Chairperson. The estimated number of c. Nuclear deterrence transformation; Committee meetings is two per year. SUMMARY: Under the provisions of the d. Weapons effects; and The Designated Federal Officer, Federal Advisory Committee Act of e. Other Office of the Under Secretary pursuant to DoD policy, shall be a full- 1972, (5 U.S.C. Appendix), 41 CFR 102– of Defense for Acquisition, Technology time or permanent part-time DoD 3.55 and consistent with the Sunset and Logistics, and Defense Threat employee, and shall be appointed in Provisions of the National Defense Reduction Agency mission-related accordance with established DoD Authorization Act for Fiscal Year 2005, matters. policies and procedures. In addition, the subtitle K, section 576, Public Law 108– The Under Secretary of Defense for Designated Federal Officer is required to 375, the Department of Defense gives Acquisition, Technology and Logistics be in attendance at all meetings, notice that it is terminating the Defense shall be authorized to act upon the however, in the absence of the Task Force on Sexual Assault in the Committee’s advice and Designated Federal Officer, the recommendations. Alternate Designated Federal Officer Military Services, effective June 1, 2010. The Committee shall be comprised of shall attend the meeting. FOR FURTHER INFORMATION CONTACT: Jim not more than 30 members who are Pursuant to 41 CFR 102–3.105(j) and Freeman, Deputy Committee eminent authorities in the fields of 102–3.140, the public or interested Management Officer for the Department national defense, geopolitical and organizations may submit written of Defense, 703–601–6128. national security affairs, and weapons of statements to the Threat Reduction mass destruction. Advisory Committee’s membership Dated: May 25, 2010. The Committee members shall be about the Committee’s mission and Mitchell S. Bryman, appointed by the Secretary of Defense functions. Written statements may be Alternate OSD Federal Register Liaison and their appointments will be renewed submitted at any time or in response to Officer, Department of Defense. on an annual basis. Those members, the stated agenda of planned meeting of [FR Doc. 2010–12902 Filed 5–27–10; 8:45 am] who are not full-time or permanent part- the Threat Reduction Advisory BILLING CODE 5001–06–P time federal officers or employees, shall Committee.

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DEPARTMENT OF DEFENSE Meeting Accessibility time period no further public comments Pursuant to 5 U.S.C. 552b, as will be accepted. Anyone who signs up Office of the Secretary amended, and 41 CFR 102–3.140 to address the Panel, but is unable to do so due to the time limitation, may Federal Advisory Committee; Meeting through 102–3.165, and the availability of space this meeting is open to the submit their comments in writing; of the Uniform Formulary Beneficiary however, they must understand that Advisory Panel public. Seating is limited and will be provided only to the first 220 people their written comments may not be reviewed prior to the Panel’s AGENCY: Assistant Secretary of Defense signing in. All persons must sign in (Health Affairs), DoD. legibly. deliberation. Accordingly, the Panel recommends that individuals and ACTION: Notice of meeting. Administrative Work Meeting interested groups consider submitting written statements instead of addressing SUMMARY: Under the provisions of the Prior to the public meeting the Panel the Panel. Federal Advisory Committee Act of will conduct an Administrative Work 1972 (title 5, United States Code Meeting from 8 a.m. to 9 a.m. to discuss Dated: May 25, 2010. (U.S.C.), Appendix, as amended) and administrative matters of the Panel. The Mitchell S. Bryman, the Government in the Sunshine Act of Administrative Work Meeting will be Alternate OSD Federal Register Liaison 1976 (5 U.S.C. 552b, as amended) the held at the Naval Heritage Center (see Officer, Department of Defense. ADDRESSES Department of Defense announces that ). Pursuant to 41 CFR 102– [FR Doc. 2010–12867 Filed 5–27–10; 8:45 am] 3.160, the Administrative Work Meeting the Uniform Formulary Beneficiary BILLING CODE 5001–06–P Advisory Panel (hereafter referred to as will be closed to the public. the Panel) will meet on June 24, 2010, Written Statements DEPARTMENT OF DEFENSE in Washington, DC. The meeting is open Pursuant to 41 CFR 102–3.105(j) and to the public from 9 a.m. to 12 p.m., but 102–3.140, the public or interested Office of the Secretary seating is limited. A closed organizations may submit written Administrative Work Meeting will be statements to the membership of the [Docket ID: DOD–2010–OS–0069] held from 8 a.m. to 9 a.m. Panel at any time or in response to the Privacy Act of 1974; System of DATES: The open meeting will be held stated agenda of a planned meeting. Records on June 24, 2010, from 9 a.m.–12 p.m. Written statements should be submitted Prior to the open meeting the Panel will to the Panel’s Designated Federal Officer AGENCY: Defense Intelligence Agency, conduct an Administrative Work (see FOR FURTHER INFORMATION CONTACT). DoD. Meeting from 8 a.m. to 9 a.m. that is The Designated Federal Officer’s contact ACTION: Notice to delete a system of closed to the public. information can be obtained from the records. ADDRESSES: The meeting will be held at General Services Administration’s the Naval Heritage Center Theater, 701 Federal Advisory Committee Act SUMMARY: The Defense Intelligence Pennsylvania Avenue NW., Washington, Database—https://www.fido.gov/ Agency proposes to delete a system of DC 20004. facadatabase/public.asp. records notice in its existing inventory Written statements that do not pertain of records systems subject to the Privacy FOR FURTHER INFORMATION CONTACT: to the scheduled meeting of the Panel Act of 1974, (5 U.S.C. 552a), as Lieutenant Colonel Stacia Spridgen, may be submitted at any time. However, amended. Designated Federal Officer, Uniform if individual comments pertain to a DATES: This proposed action will be Formulary Beneficiary Advisory Panel, specific topic being discussed at a 2450 Stanley Road, Suite 208, Ft. Sam effective without further notice on June planned meeting, then these statements 28, 2010 unless comments are received Houston, TX 78234–6102, Telephone: must be submitted no later than 5 (210) 295–1271, Fax: (210) 295–2789, E- which result in a contrary business days prior to the meeting in determination. mail: [email protected]. question. The Designated Federal SUPPLEMENTARY INFORMATION: Officer will review all submitted written ADDRESSES: You may submit comments, identified by dock number and title, by Purpose of Meeting statements and provide copies to all the committee members. any of the following methods: The Panel will review and comment * Federal Rulemaking Portal: http:// on recommendations made to the Public Comments www.regulations.gov. Follow the Director, TRICARE Management In addition to written statements, the instructions for submitting comments. Activity, by the Pharmacy and Panel will set aside 1 hour for * Mail: Federal Docket Management Therapeutics Committee regarding the individuals or interested groups to System Office, 1160 Defense Pentagon, Uniform Formulary. address the Panel. To ensure Washington, DC 20301–1160. consideration of their comments, Instructions: All submissions received Meeting Agenda individuals and interested groups must include the agency name and Sign-In; Welcome and Opening should submit written statements as docket number for this Federal Register Remarks; Public Citizen Comments; outlined in this notice; but if they still document. The general policy for Scheduled Therapeutic Class Reviews— want to address the Panel, then they comments and other submissions from Alpha Blockers for Benign Prostatic will be afforded the opportunity to members of the public is of make these Hyperplasia, Antilipidemics I, register to address the Panel. The submissions available for public Designated Newly Approved Drugs and Panel’s Designated Federal Officer will viewing on the Internet at http:// Drugs recommended for non-formulary have a ‘‘Sign-Up Roster’’ available at the www.regulations.gov as they are placement due to non-compliance with Panel meeting, for registration on a first- received without change, including any Fiscal Year 2008 National Defense come, first-serve basis. Those wishing to personal identifiers or contact Authorization Act, Section 703; Panel address the Panel will be given no more information. Discussions and Vote; and comments than 5 minutes to present their FOR FURTHER INFORMATION CONTACT: Ms. following each therapeutic class review. comments, and at the end of the 1-hour Theresa Lowery at (202) 231–1193.

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SUPPLEMENTARY INFORMATION: The the authority of Section 209 (Puget associated economic activities along the Defense Intelligence Agency systems of Sound and Adjacent Waters) of the Elliott Bay shoreline from expected records notices subject to the Privacy Flood Control Act of 1962 (Pub. L. 87– future damages associated with coastal Act of 1974, (5 U.S.C. 552a), as 874). The Reconnaissance Study was storms, shoreline erosion and amended, have been published in the initiated following specific earthquake damage that could lead to Federal Register and are available from authorization by the Committee on failure of the existing seawall. the DIA Privacy Act Coordinator, Transportation and Infrastructure, U.S. DATES: Submit comments by July 19, Records Management Section, 200 House of Representatives, House 2010 on the scope of issues to be MacDill Blvd, Washington DC 20340. Resolution 2704, dated September 25, addressed in the Environmental Impact The Agency proposes to delete a 2002. The Feasibility Study was Statement (DEIS). system of records notice in its inventory initiated in August 2004 with signing of ADDRESSES: Address all comments of record systems subject to the Privacy a Feasibility Cost Sharing Agreement concerning this notice to Mr. Patrick Act of 1974 (5 U.S.C. 552a), as amended. between U.S. Army Corps of Engineers, Cagney, U.S. Army Corps of Engineers, The proposed deletion is not within the Seattle District (USACE) and the City of Seattle District, P.O. Box 3755, Seattle, purview of subsection (r) of the Privacy Seattle, Washington (City). The WA 98124–3755. Submit electronic Act of 1974, (5 U.S.C. 552a), as Feasibility Study authority was comments and supporting data to amended, which requires the subsequently modified in Section [email protected] submission of a new or altered system 4096(a) of WRDA 2007 to include an FOR FURTHER INFORMATION CONTACT: report. evaluation of reducing future damages to the seawall from seismic activity. Questions regarding the scoping process Dated: May 25, 2010. The existing Elliott Bay Seawall or preparation of the DEIS may be Mitchell S. Bryman, (seawall) provides protection to Seattle’s directed to Mr. Patrick Cagney, Alternate OSD Federal Register Liaison downtown waterfront from storm waves telephone (206) 764–3654, email Officer, Department of Defense. and the erosive tidal forces of Puget [email protected] . SUPPLEMENTARY INFORMATION: Deletions Sound. It supports Seattle’s waterfront LDIA 05–0001 surface street, Alaskan Way and other 1. Proposed Action: The Elliott Bay critical transportation infrastructure Seawall extends for a distance of SYSTEM NAME: (including the Burlington Northern— approximately 7,166 feet along Seattle’s Human Resources Management Santa Fe Railway main line) and waterfront, between Washington Street System (HRMS) (August 19, 2009; 74 FR utilities that serve downtown Seattle to the south and Broad Street to the 41874). (including water, electric, gas/ north. The proposed action would involve an extensive structural rebuild REASON: petroleum, steam, communications, sanitary sewers and storm water or replacement of the seawall in order The records collected and maintained drainage). The Seawall also protects to reduce damage resulting from storms, in this system are covered under OPM/ numerous commercial, public and tidal forces, erosion and earthquakes. GOVT–1, General Personnel Records residential structures and facilities, The proposed action was previously (June 19, 2006; 71 FR 35342) and OPM/ including the Washington State Ferry considered along with the proposed GOVT–5, Recruiting, Examining, and Terminal at Coleman Dock, Seattle’s replacement of the State Route (SR) 99 Placement Records (June 19, 2006; 71 busiest fire station, the Seattle Alaskan Way Viaduct, which runs FR 35351). Aquarium, and the Port of Seattle. The parallel to a portion of the seawall. The [FR Doc. 2010–12961 Filed 5–27–10; 8:45 am] seawall is 75 years old and is reaching SR 99 Alaskan Way Viaduct and BILLING CODE 5001–06–P the end of its useful design life. The Seawall Replacement Project Draft timber elements of the structure have Environmental Impact Statement experienced significant decay and (AWVSRP DEIS) was issued by the U.S. DEPARTMENT OF DEFENSE deterioration from continued exposure Department of Transportation Federal to storm waves and tides, leading to Highway Administration (FHWA), Department of the Army; Corps of potential structural instability. Seawall Washington State Department of Engineers structural instability, and the likely Transportation (WSDOT), and City of Seattle on April 9, 2004 (69 FR 18898). Notice of Intent To Prepare an further deterioration from future waves A Supplemental Draft Environmental Environmental Impact Statement for and tidal forces, is putting a tremendous Impact Statement (AWVSRP SDEIS 1) the Elliott Bay Seawall Project, Seattle, amount of public and private was issued by the same parties on July WA infrastructure, residential and business development, and transportation 28, 2006 (72 FR 42846). The AWVSRP AGENCY: Department of the Army, U.S. facilities at risk of being damaged from DEIS and SDEIS 1 included evaluation Army Corps of Engineers, DoD. several different types of failure. An of the rebuilding of the Alaskan Way ACTION: Notice of intent. earthquake of moderate intensity and/or Seawall because it is essential to the duration can cause liquefaction of the function of transportation facilities and SUMMARY: Pursuant to section 102(2)(C) soils supported by the wall, resulting in is at risk of collapsing in a large of the National Environmental Policy loading conditions for which the earthquake. The geographic area Act (NEPA) of 1969, as amended, the structure was not designed. Failure of covered in the AWVSRP DEIS and U.S. Army Corps of Engineers (USACE) the seawall under any of these SDEIS 1 was virtually the same as the will prepare an Environmental Impact circumstances would result in a high study area proposed by the USACE. Statement (EIS) for a proposed seawall risk to public safety and substantial The USACE EIS will evaluate the replacement project along the Elliott environmental degradation from seawall from a coastal storm and Bay shoreline in Seattle, WA. The City subsequent storm-generated waves and earthquake damage reduction of Seattle is the non-Federal sponsor for tidal forces. perspective; the seawall is the primary the project. The purpose of the proposed focus of the analysis. The USACE is The Feasibility Study for the Elliott rehabilitation effort is to protect public reviewing the existing body of work and Bay Seawall is being conducted under safety, critical infrastructure and coordinating closely with the city of

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Seattle, FHWA, and WSDOT to taken between 6 and 7 p.m. Verbal accessible format (e.g., braille, large incorporate all relevant material from (maximum 3 minutes) or written print, audiotape, or computer diskette) their NEPA efforts, share information, comments will be accepted at the on request to the contact persons listed and reduce duplication of efforts. scoping meeting or written comments under FOR FURTHER INFORMATION 2. Alternatives: A number of seawall may be sent by regular or electronic CONTACT. replacement alternatives are being mail to EIS Scoping Comments c/o SUPPLEMENTARY INFORMATION: The considered including the no action Patrick Cagney (see ADDRESSES). following list identifies correspondence alternative. Several structural, non- Ongoing communication with agencies, from the Department issued from structural and construction technique Native American tribes, public interest October 1, 2009 through December 31, options will be considered including groups, and interested citizens will take 2009. Included on the list are those soil improvement, secant piles, and place throughout the EIS development letters that contain interpretations of the buttress fill, among others; more than through the use of public meetings, requirements of the IDEA and its one option may be included in the mailings, and the Internet. Additional implementing regulations, as well as preferred alternative. Additionally; in meetings will be scheduled upon letters and other documents that the conjunction with any of the structural completion of the DEIS. Department believes will assist the options, the seawall alignment will be 5. Other Environmental Review public in understanding the considered; examining where the Coordination and Permit Requirements: seawall face can be reconstructed in the The environmental review process will requirements of the law and its existing alignment or if it can be pulled be comprehensive and will satisfy the regulations. The date of and topic back landward. Similarly, habitat requirements of both NEPA and the addressed by each letter are identified, restoration and recreational access Washington State Environmental Policy and summary information is also options will be considered with any of Act (SEPA) per preparation of a joint provided, as appropriate. To protect the the structural options. Public input is NEPA/SEPA document with the City of privacy interests of the individual or specifically invited regarding the Seattle. All other relevant Federal, State individuals involved, personally reasonableness of the build alternatives and local environmental laws will be identifiable information has been and whether any additional alternatives complied with during the feasibility redacted, as appropriate. are appropriate for consideration. and/or design phases of the project. Part B—Assistance for Education of All 3. Scoping and Public Involvement: Dated: May 20, 2010. Children With Disabilities An initial notice of intent for this Anthony Wright, project was issued on March 31, 2006 Section 611—Authorization; Allotment; (71 FR 16293). Since that time, the Colonel, Corps of Engineers, District Use of Funds; Authorization of Commander. scope of the project has changed to Appropriations [FR Doc. 2010–12878 Filed 5–27–10; 8:45 am] include the evaluation of seismic Topic Addressed: State Administration BILLING CODE 3720–58–P damages and to consider additional Æ alternatives. This present notice of Letters dated November 13, 2009 to intent formally re-commences the Senator Lamar Alexander, Senator scoping process under NEPA. As part of DEPARTMENT OF EDUCATION Richard M. Burr, Senator Tom Coburn, the scoping process, all affected Federal, Senator Michael B. Enzi, Senator Judd Office of Special Education and State and local agencies, Native Gregg, Senator Orrin G. Hatch, and Rehabilitative Services; List of American Tribes, private organizations, Senator Johnny Isakson, regarding the Correspondence and the public are invited to comment Secretary’s authority to adjust the statutory caps on State administration on the scope of the EIS. To date, the AGENCY: Department of Education. for Federal fiscal year 2009 under following issues of concern have been ACTION: List of Correspondence from identified for in-depth analysis in the section 611 of the IDEA and Title I of October 1, 2009 through December 31, the Elementary and Secondary draft EIS: (1) Construction impacts, 2009. particularly those related to noise, Education Act of 1965, as amended, to transportation, and effects to businesses SUMMARY: The Secretary is publishing help defray the costs of implementing and residences within/adjacent to the the following list pursuant to section the data collection requirements construction zone; (2) impacts 607(f) of the Individuals with associated with the American Recovery associated with potential variations of Disabilities Education Act (IDEA). and Reinvestment Act of 2009 (ARRA). the existing seawall alignment; (3) Under section 607(f) of the IDEA, the Topic Addressed: Use of Funds potential impacts to historical Secretary is required, on a quarterly Æ properties; and (4) potential benefits to basis, to publish in the Federal Register Letter dated October 27, 2009 to the Elliott Bay aquatic ecosystem. a list of correspondence from the U.S. National Association of Private Special 4. Scoping Meeting: One public Department of Education (Department) Education Centers Executive Director scoping meeting will be held to identify received by individuals during the and CEO Sherry L. Kolbe, clarifying issues of major concern, identify studies previous quarter that describes the when Part B, IDEA funds may be used that might be needed in order to analyze interpretations of the Department of the for professional development activities and evaluate impacts, and obtain public IDEA or the regulations that implement for private school personnel and input on the range and acceptability of the IDEA. contractors serving children with disabilities placed in private schools by alternatives. This meeting will be held FOR FURTHER INFORMATION CONTACT: public agencies. at the Bell Harbor International Laurel Nishi or Mary Louise Dirrigl. Conference Center, Pier 66 on Telephone: (202) 245–7468. Section 612—State Eligibility Wednesday, June 16, 2010. An informal If you use a telecommunications open house will be held between 4 and device for the deaf (TDD), you can call Topic Addressed: Maintenance of State 5:30 p.m. A presentation to summarize the Federal Relay Service (FRS), toll Financial Support the purpose of scoping and existing free, at 1–800–877–8339. Æ Office of Special Education information will be made between 5:30 Individuals with disabilities can Programs Memorandum 10–5, dated and 6 p.m. Then, testimony will be obtain a copy of this notice in an December 2, 2009 to Chief State School

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Officers and State Directors of Special Part C—Infants and Toddlers With Dated: May 24, 2010. Education, regarding the State funds Disabilities Alexa Posny, that must be included in the calculation Assistant Secretary for Special Education and Section 635—Requirements for Rehabilitative Services. of State financial support for special Statewide System education and related services. [FR Doc. 2010–12946 Filed 5–27–10; 8:45 am] Topic Addressed: Complaint Resolution BILLING CODE 4000–01–P Topic Addressed: Children in Private Schools Æ Letter dated October 27, 2009 to Nevada Aging and Disability Services Æ DEPARTMENT OF EDUCATION Letter dated December 8, 2009 to Division Part C Coordinator Wendy New York Attorney Lawrence D. Whipple, regarding the obligation of the Submission for OMB Review; Weinberg, regarding whether parents State lead agency to provide Comment Request can obtain reimbursement under Part B compensatory services under Part C of of the IDEA for the cost of a private the IDEA for children who were denied AGENCY: Department of Education. placement for a child not previously early intervention services, even after SUMMARY: The Acting Director, found eligible for special education and they moved out of the State. Information Collection Clearance related services. Division, Regulatory Information Section 639—Procedural Safeguards Management Services, Office of Section 613—Local Educational Agency Topic Addressed: Evaluations, Parental Management invites comments on the Eligibility Consent, and Reevaluations submission for OMB review as required by the Paperwork Reduction Act of Topic Addressed: Maintenance of Effort Æ Letter dated November 13, 2009 to 1995. Æ Letter dated October 29, 2009 to California Early Start Part C Coordinator DATES: Interested persons are invited to Learning Disabilities Association of Rick Ingraham, regarding when parental submit comments on or before June 28, Connecticut Board of Directors consent must be obtained for changes in 2010. the individualized family service plan. Secretary Diane Willcutts, regarding the ADDRESSES: Written comments should use of ARRA Part B, IDEA funds by Other Letters That Do Not Interpret the be addressed to the Office of local educational agencies (LEAs) and Idea But May Be of Interest To Readers Information and Regulatory Affairs, LEA maintenance of effort requirements. Attention: Education Desk Officer, Æ Topic Addressed: Seclusion and Office of Management and Budget, 725 Letter dated November 13, 2009 to Restraint Iowa Department of Education Chief 17th Street, NW., Room 10222, New Lana Michelson and Legal Consultant Æ Letter dated December 8, 2009 to Executive Office Building, Washington, Thomas A. Mayes, reaffirming the Senator Christopher J. Dodd, DC 20503, be faxed to (202) 395–5806 or Representative George Miller, and e-mailed to Department’s position that a State _ educational agency (SEA) must prohibit Congresswoman Cathy McMorris oira [email protected] with a cc: to [email protected]. an LEA from taking advantage of the Rodgers, outlining principles for LEA maintenance of effort reduction if Congress to consider in developing SUPPLEMENTARY INFORMATION: Section the SEA identifies the LEA as having legislation to limit the use of physical 3506 of the Paperwork Reduction Act of significant disproportionality. restraint and seclusion in schools and 1995 (44 U.S.C. Chapter 35) requires other educational settings that receive that the Office of Management and Section 616—Monitoring, Technical Federal funds. Budget (OMB) provide interested Assistance, and Enforcement Federal agencies and the public an early Electronic Access To This Document opportunity to comment on information Topic Addressed: State Determinations You can view this document, as well collection requests. OMB may amend or on the Performance of Each Local waive the requirement for public Educational Agency as all other Department of Education documents published in the Federal consultation to the extent that public Æ Letter dated October 21, 2009 to Register, in text or Adobe Portable participation in the approval process would defeat the purpose of the Chief State School Officers and State Document Format (PDF) on the Internet information collection, violate State or Directors of Special Education urging at the following site: http://www.ed.gov/ Federal law, or substantially interfere States to maintain high standards and news/fedregister/index.html. with any agency’s ability to perform its not compromise the determination To use PDF you must have Adobe statutory obligations. The Acting process under section 616(d)(2) of the Acrobat Reader, which is available free Director, Information Collection IDEA. at this site. If you have questions about Clearance Division, Regulatory Æ Letter dated October 30, 2009 to using PDF, call the U.S. Government Information Management Services, Montana Office of Public Instruction Printing Office (GPO), toll-free, at 1– Office of Management, publishes that Director of Special Education Tim 888–293–6498; or in the Washington, notice containing proposed information Harris, clarifying that an SEA must DC area at (202) 512–1530. collection requests prior to submission prohibit an LEA that receives a Note: The official version of this document of these requests to OMB. Each determination of ‘‘needs assistance,’’ is the document published in the Federal proposed information collection, ‘‘needs intervention,’’ or ‘‘needs Register. Free Internet access to the official grouped by office, contains the substantial intervention’’ pursuant to edition of the Federal Register and the Code following: (1) Type of review requested, of Federal Regulations is available on GPO section 616(d)(2) of the IDEA from e.g. new, revision, extension, existing or Access at: http://www.gpoaccess.gov/nara/ reinstatement; (2) Title; (3) Summary of taking advantage of the 50 percent LEA index.html. maintenance of effort reduction. the collection; (4) Description of the (Catalog of Federal Domestic Assistance need for, and proposed use of, the Number 84.027, Assistance to States for information; (5) Respondents and Education of Children with Disabilities) frequency of collection; and (6)

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Reporting and/or Recordkeeping should be electronically mailed to On page 18178, in the third column, burden. OMB invites public comment. [email protected]. Individuals who under the heading use a telecommunications device for the Dated: May 25, 2010. A. Address To Request Application deaf (TDD) may call the Federal James Hyler, Package: Information Relay Service (FIRS) at 1– Acting Director, Information Collection 1. Correct the third sentence to read: Clearance Division, Regulatory Information 800–877–8339. Management Services, Office of Management. [FR Doc. 2010–12903 Filed 5–27–10; 8:45 am] ‘‘To obtain a copy from ED Pubs, write, BILLING CODE 4000–01–P fax or call the following: Education Office of Elementary and Secondary Publications Center, P.O. Box 22207, Education Alexandria, VA 22304.’’ Type of Review: New. DEPARTMENT OF EDUCATION 2. Correct the fifth sentence to read: Title: Striving Readers Comprehensive ‘‘FAX: (703) 605–6794.’’ Literacy State Formula Grant Overview Information Program Authority: American Recovery Application. and Reinvestment Act of 2009, Division A, Race to the Top Fund Assessment Frequency: Annually. Section 14006, Public Law 111–5. Affected Public: State, Local, or Tribal Program Electronic Access to This Document Gov’t, SEAs or LEAs. Catalog of Federal Domestic Assistance Reporting and Recordkeeping Hour (CFDA) Numbers: 84.395B (Comprehensive You may view this document, as well Burden: Assessment Systems grants) and 84.395C as all other Department of Education Responses: 52. (High School Course Assessment Programs documents published in the Federal Burden Hours: 5,200. grants). Register, in text or Adobe Portable Abstract: The Striving Readers AGENCY: Office of Elementary and Document Format (PDF) on the Internet Comprehensive Literacy program is Secondary Education, Department of at the following site: http://www.ed.gov/ authorized as part of the FY 2010 Education. news/fedregister/index.html. To use Consolidated Appropriations Act (Pub. ACTION: Notice inviting applications for PDF you must have Adobe Acrobat L. No. 111–117) under the Title I new awards for fiscal year (FY) 2010; Reader, which is available free at this demonstration authority (Part E, Section correction. site. 1502 of the Elementary and Secondary Note: The official version of this document Education Act (ESEA). The FY 2010 SUMMARY: On April 9, 2010, the is the document published in the Federal Appropriations Act provides $250 Department of Education published in Register. Free Internet access to the official million under Section 1502 of the ESEA the Federal Register (75 FR 18171) a edition of the Federal Register and the Code for a comprehensive literacy notice inviting applications for new of Federal Regulations is available on GPO development and education program to awards for FY 2010 (NIA) for the Race Access at: http://www.gpoaccess.gov/nara/ index.html. advance literacy skills for students from to the Top Fund Assessment Program. birth through grade 12. The Act reserves This notice makes two corrections to the Dated: May 25, 2010. April 9 NIA. $10 million for formula grants to assist Thelma Mele´ndez de Santa Ana, FOR FURTHER INFORMATION CONTACT: States in creating or maintaining a State Assistant Secretary for Elementary and Literacy Team with expertise in literacy James Butler, U.S. Department of Secondary Education. development and education for children Education, 400 Maryland Avenue, SW., [FR Doc. 2010–12953 Filed 5–27–10; 8:45 am] from birth through grade 12 and to assist room 3C108, Washington, DC 20202– States in developing a comprehensive 6400. Telephone: (202) 453–7246 or by BILLING CODE 4000–01–P literacy plan. This request includes e-mail: [email protected]. information collection activity covered If you use a telecommunications DEPARTMENT OF EDUCATION under the Paperwork Reduction Act device for the deaf (TDD), call the (PRA). The activities consist of a new Federal Relay Service (FRS), toll free, at Teacher Incentive Fund application for an SEA to submit to the 1–800–877–8339. Department to apply for FY 2010 funds Individuals with disabilities can Catalog of Federal Domestic Assistance under the 2010 Appropriations Act. obtain this document in an accessible (CFDA) Numbers: 84.385 and 84.374. Requests for copies of the information format (e.g., braille, large print, AGENCY: Office of Elementary and collection submission for OMB review audiotape, or computer diskette) on Secondary Education, Department of may be accessed from http:// request to the contact listed in this Education. edicsweb.ed.gov, by selecting the section. ACTION: Notice inviting applications for ‘‘Browse Pending Collections’’ link and SUPPLEMENTARY INFORMATION: new awards for fiscal year (FY) 2010; by clicking on link number 4262. When correction. you access the information collection, Correction click on ‘‘Download Attachments’’ to On page 18178, we provided a SUMMARY: On May 21, 2010, the view. Written requests for information mailing address, telephone number, and Department of Education published in should be addressed to U.S. Department fax number for the Education the Federal Register (75 FR 28740) a of Education, 400 Maryland Avenue, Publications Center (ED Pubs), from notice inviting applications for new SW., LBJ, Washington, DC 20202–4537. which prospective applicants can obtain awards for FY 2010 (NIA) for the Requests may also be electronically an application package for either grant Teacher Incentive Fund. This notice mailed to the Internet address category under the Race to the Top makes a correction to the May 21 NIA. [email protected] or faxed to 202– Fund Assessment Program competition. FOR FURTHER INFORMATION CONTACT: 401–0920. Please specify the complete The mailing address and fax number April Lee, U.S. Department of title of the information collection when that we provided were incorrect. To Education, 400 Maryland Avenue, SW., making your request. correct these errors, the Department Room 3E120, Washington, DC 20202. Comments regarding burden and/or makes the following corrections to the Telephone: (202) 205–5224, or by e- the collection activity requirements April 9 NIA: mail: [email protected].

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If you use a telecommunications Dated: May 25, 2010. docket may do so through eSubscription device for the deaf (TDD), call the Thelma Mele´ndez de Santa Ana, at http://www.ferc.gov/docs-filing/ Federal Relay Service (FRS), toll free, at Assistant Secretary for Elementary and esubscription.asp. In addition, all 1–800–877–8339. Secondary Education. comments and FERC issuances may be Individuals with disabilities can [FR Doc. 2010–12949 Filed 5–27–10; 8:45 am] viewed, printed or downloaded obtain this document in an accessible BILLING CODE 4000–01–P remotely through FERC’s eLibrary at: format (e.g., braille, large print, http://www.ferc.gov/docs-filing/elibrary. audiotape, or computer diskette) on asp, by searching on Docket Nos. IC10– request to the contact listed in this DEPARTMENT OF ENERGY 917 and IC10–918. For user assistance, section. contact FERC Online Support by e-mail SUPPLEMENTARY INFORMATION: Federal Energy Regulatory at [email protected], or by Commission phone, toll-free, at: (866) 208–3676, or Correction [Docket Nos. IC10–917–000 and IC10–918– (202) 502–8659 for TTY. On page 28745 of the May 21 NIA, we 000] FOR FURTHER INFORMATION CONTACT: requested that applicants submit a short Ellen Brown may be reached by e-mail e-mail as a notice of intent to apply by Commission Information Collection at [email protected], telephone at June 1 to allow us to develop a more Activities; Comment Request; (202) 502–8663, and fax at (202) 273– efficient process for reviewing grant Extension 0873. applications. We incorrectly stated, however, that the ‘‘short e-mail should May 20, 2010. SUPPLEMENTARY INFORMATION: On provide (1) the applicant organization’s AGENCY: Federal Energy Regulatory February 17, 2007, the Commission name and address, (2) the type of grant Commission. issued Order No. 890 to address and for which the applicant intends to ACTION: Notice of proposed information remedy opportunities for undue apply, (3) the one absolute priority the collections and request for comments. discrimination under the pro forma applicant intends to address, and (4) all Open Access Transmission Tariff SUMMARY: In compliance with the competitive preference priorities the (OATT) adopted in 1996 by Order No. requirements of section 3506(c)(2)(A) of 1 applicant intends to address.’’ We are 888. Through Order No. 890, the the Paperwork Reduction Act of 1995, correcting the May 21 NIA to provide Commission: 44 U.S.C. 3506(c)(2)(A) (2006), (Pub. L. applicants with the correct information (1) Adopted pro forma OATT 104–13), the Federal Energy Regulatory about what the notice of intent to apply provisions necessary to keep imbalance Commission (Commission or FERC) is should include. charges closely related to incremental On page 28745, first column, first soliciting public comment on the costs; paragraph, under the heading Notice of proposed information collections (2) Increased nondiscriminatory described below. Intent to Apply, the third sentence is access to the grid by requiring public corrected to read ‘‘This short e-mail DATES: Comments in consideration of utilities, working through the North should provide the applicant the collections of information are due American Electric Reliability organization’s name and address and July 27, 2010. Corporation (NERC), to develop whether the applicant intends to apply ADDRESSES: Comments may be filed consistent methodologies for available for the Evaluation or Main TIF either electronically (eFiled) or in paper transfer capability (ATC) calculation competition.’’ format, and should refer to Docket Nos. and to publish those methodologies to IC10–917–000 and IC10–918–000. For increase transparency. Program Authority: The Departments of comments that only pertain to one of the Labor, Health and Human Services, and (3) Required an open, transparent, and Education, and Related Agencies collections, specify the appropriate coordinated transmission planning Appropriations Act, 2008, Division G, Title collection and related docket number. process thereby increasing the ability of III, Pub. L. 110–161; Departments of Labor, Documents must be prepared in an customers to access new generating Health and Human Services, and Education, acceptable filing format and in resources and promote efficient and Related Agencies Appropriations Act, compliance with Commission utilization of transmission. 2010, Division D, Title III, Pub. L. 111–117; submission guidelines at http://www. and the American Recovery and (4) Gave the right to customers to ferc.gov/help/submission-guide.asp. request from transmission providers, Reinvestment Act of 2009, Division A, Title eFiling instructions are available at: VIII, Pub. L. 111–5. studies addressing congestion and/or http://www.ferc.gov/docs-filing/efiling. integration of new resource loads in Electronic Access to This Document asp. First time users must follow areas of the transmission system where You may view this document, as well eRegister instructions at: http://www. they have encountered transmission as all other Department of Education ferc.gov/docs-filing/eregistration.asp, to problems due to congestion or where documents published in the Federal establish a user name and password they believe upgrades and other Register, in text or Adobe Portable before eFiling. The Commission will investments may be necessary to reduce Document Format (PDF) on the Internet send an automatic acknowledgement to the sender’s e-mail address upon receipt at the following site: http://www.ed.gov/ 1 Promoting Wholesale Competition Through news/fedregister/index.html. To use of eFiled comments. Commenters Open Access Non-discriminatory Transmission PDF you must have Adobe Acrobat making an eFiling should not make a Services by Public Utilities; Recovery of Stranded Reader, which is available free at this paper filing. Commenters that are not Costs by Public Utilities and Transmitting Utilities, able to file electronically must send an Order No. 888, 61 FR 21540 (May 10, 1996), FERC site. Stats. & Regs. ¶ 31,036 (1996), order on reh’g, Order original and two (2) paper copies of No. 888–A, 62 FR 12274 (Mar. 14, 1997), FERC Note: The official version of this document their comments to: Federal Energy is the document published in the Federal Stats. & Regs. ¶ 31,048 (1997), order on reh’g, Order No. 888–B, 81 FERC ¶ 61,248 (1997), order on reh’g, Register. Free Internet access to the official Regulatory Commission, Secretary of the Commission, 888 First Street, NE., Order No. 888–C, 82 FERC ¶ 61,046 (1998), aff’d edition of the Federal Register and the Code in relevant part sub nom. Transmission Access of Federal Regulations is available on GPO Washington, DC 20426. Policy Study Group v. FERC, 225 F.3d 667 (DC Cir. Access at: http://www.gpoaccess.gov/nara/ Users interested in receiving 2000), aff’d sub nom. New York v. FERC, 535 U.S. index.html. automatic notification of activity in this 1 (2002).

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congestion and to integrate new Attachment L must specify the Commission’s OASIS standards and resources. qualitative and quantitative criteria that other electric industry business (5) Required both the transmission the transmission provider uses to practices. These practices and provider’s merchant function and determine the level of secured and procedures benefit from the network customers to include a unsecured credit required. implementation of generic industry statement with each application for The Commission required a NERC/ standards. network service or to designate a new 2 NAESB team to draft and review Order The Commission’s Order No. 890 network resource that attests, for each No. 890 reliability standards and regulations can be found in 18 CFR network resource identified, that the business practices. The team was to 35.28 (pro forma tariff requirements), transmission customer owns or has solicit comment from each utility on and 37.6 and 37.7 (OASIS committed to purchase the designated developed standards and practices and requirements). network resource and the designated utilities were to implement each, after network resource comports with the Commission approval. Public utilities, Action: The Commission is requesting requirements for designated network working through NERC, were to revise a three-year extension of the current resources. The network customer reliability standards to require the FERC–917 and FERC–918 (Order No. includes this attestation in the exchange of data and coordination 890) reporting requirements, with no customer’s comment section of the among transmission providers and, change to the existing requirements. request when it confirms the request on working through NAESB, were to Burden Statement: FERC–917 and the Open Access Same-Time develop complementary business FERC–918 are both included in OMB Information System (OASIS). practices. Control Number 1902–0233. The (6) Required with regard to capacity Required OASIS postings included: estimated annual public reporting reassignment that: (a) All sales or (1) Explanations for changes in ATC burdens for FERC–917 (requirements in assignments of capacity be conducted values; 18 CFR 35.28) and FERC–918 through or otherwise posted on the (2) Capacity benefit margin (CBM) (requirements in 18 CFR 37.6 and 37.7) transmission provider’s OASIS on or reevaluations and quarterly postings; are reduced from the original estimates before the date the reassigned service (3) OASIS metrics and accepted/ made three years ago. The reductions commences; (b) assignees of denied requests; transmission capacity execute a service (4) Planning redispatch offers and are due to the incorporation and agreement prior to the date on which reliability redispatch data; completion of: (1) One-time pro forma the reassigned service commences; and (5) Curtailment data; tariff changes by utilities in existence at (c) transmission providers aggregate and (6) Planning and system impact that time; (2) completed development summarize in an electric quarterly studies; and comment solicitation of the report the data contained in these (7) Metrics for system impact studies; required NERC/NAESB reliability service agreements. (8) All rules. standards and business practices; and (7) Adopted an operational penalties Incorporating the Order No. 890 (3) the transfer of burden associated annual filing that provides information standards into the Commission’s with the implementation of some of the regarding the penalty revenue the regulations benefits wholesale electric NERC/NAESB business practices, in transmission provider has received and customers by streamlining utility Order No. 729, issued November 11, distributed. business practices, transactional 2009,3 to the Commission’s FERC–725A (8) Required creditworthiness processes, and OASIS procedures, and information collection (OMB Control information to be included in a by adopting a formal ongoing process Number 1902–0244). The estimated transmission provider’s OATT. for reviewing and upgrading the annual figures follow.

Average No. Annual No. of of reponses Average bur- Total annual FERC Information collection respondents per respond- den hours per burden hours ent response

(1) (2) (3) (1) × (2) × (3)

18 CFR 35.28 (FERC–917)

Conforming tariff changes ...... 6 1 25 150 Revision of Imbalance Charges ...... 6 1 5 30 ATC revisions ...... 6 1 40 240 Planning (Attachment K) ...... 134 1 100 13,400 Congestion studies ...... 134 1 300 40,200 Attestation of network resource commitment ...... 134 1 1 134 Capacity reassignment ...... 134 1 100 13,400 Operational Penalty annual filing ...... 134 1 10 1,340 Creditworthiness—include criteria in the tariff ...... 6 1 40 240

FERC–917—Sub Total Part 35 ...... 69,134

2 NAESB is the North American Energy Standards Reliability Standards for the Bulk-Power System, Docket Nos. IC10–917 and IC10–918. The FERC– Board. Order No. 729, 74 FR 64884 (Dec. 3, 2009) 129 725A reporting and recordkeeping requirements in 3 Mandatory Reliability Standards for the FERC ¶ 61,155. Order 729 (Docket No. RM08–19, et. al.) were Calculation of Available Transfer Capability, The FERC–725A requirements (Mandatory approved by OMB (in ICR Number 200912–1902– Capacity Benefit Margins, Transmission Reliability Reliability Standards for the Bulk-Power System, 005) on 3/12/2010. Margins, Total Transfer Capability, and Existing which now includes the utilities’ implementation) Transmission Commitments and Mandatory are separate and are not a subject of this Notice in

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Average No. Annual No. of of reponses Average bur- Total annual FERC Information collection respondents per respond- den hours per burden hours ent response

(1) (2) (3) (1) × (2) × (3)

18 CFR 37.6 & 37.7 (FERC–918)

ATC-related standards: NERC/NAESB Team to develop ...... 0 0 0 0 Review and comment by utility ...... 0 0 0 0 Implementation by each utility 3 ...... 0 0 0 3 0 Mandatory data exchanges ...... 134 1 80 10,720 Explanation of change of ATC values ...... 134 1 100 13,400 Reevaluate CBM and post quarterly ...... 134 1 20 2,680 Post OASIS metrics; requests accepted/denied ...... 134 1 90 12,060 Post planning redispatch offers and reliability redispatch data ...... 134 1 20 2,680 Post curtailment data ...... 134 1 10 1,340 Post Planning and System Impact Studies ...... 134 1 5 670 Posting of metrics for System Impact Studies ...... 134 1 100 13,400 Post all rules to OASIS ...... 134 1 5 670

FERC–918—Sub Total of Part 37 Reporting Requirements ...... 57,620 FERC–918—Recordkeeping Requirements ...... 134 1 40 5,360

FERC–918—Sub Total of Reporting and Recordkeeping Requirements ...... 62,980

Total FERC–917 and FERC–918 (Part 35 + Part 37, Reporting and Recordkeeping Requirements) ...... 132,114

Total combined annual burden for training personnel to respond to the information technology, e.g., permitting FERC–917 and FERC–918 is 132,114 collections of information; (5) searching electronic submission of responses. hours (126,754 reporting hours + 5,360 data sources; (6) completing and Kimberly D. Bose, recordkeeping hours). This is a reviewing the collections of reduction of 24,922 hours from the information; and (7) transmitting or Secretary. combined FERC–917 and FERC–918 otherwise disclosing the information. [FR Doc. 2010–12853 Filed 5–27–10; 8:45 am] burden OMB previously approved. The estimate of cost for respondents BILLING CODE 6717–01–P Total combined estimated annual cost is based upon salaries for professional for FERC–917 and FERC–918 is and clerical support, as well as direct 4 DEPARTMENT OF ENERGY $21,941,076. This includes: and indirect overhead costs. Direct costs (1) Reporting costs of $14,449,956; include all costs directly attributable to (126,754 hours @ $114 an hour (average Federal Energy Regulatory providing this information, such as Commission cost of attorney ($200 per hour), administrative costs and the cost for consultant ($150), technical ($80), and information technology. Indirect or [Docket No. AD10–12–000] administrative support ($25)) and overhead costs are costs incurred by an Improving Market and Planning (2) Recordkeeping (labor and storage) organization in support of its mission. Efficiency Through Improved Software; costs of $7,491,120; (labor = $91,120; These costs apply to activities which 5,360 hours × $17/hour (file/record Notice of Agenda and Procedures for benefit the whole organization rather clerk @ $17 an hour) and off-site storage Staff Technical Conference than any one particular function or costs = $7,400,000; (8,000 sq. ft. × $925/ activity. sq. ft.). May 20, 2010. The reporting burden includes the Comments are invited on: (1) Whether This notice establishes the agenda and total time, effort, or financial resources the proposed collections of information procedures for the staff technical expended to generate, maintain, retain, are necessary for the proper conference to be held on June 2, 2010 disclose, or provide the information performance of the functions of the and June 3, 2010, to discuss issues including: (1) Reviewing instructions; Commission, including whether the related to unit commitment software. (2) developing, acquiring, installing, and information will have practical utility; The technical conference will be held utilizing technology and systems for the (2) the accuracy of the agency’s estimate from 8 a.m. to 5:30 p.m. (EDT) on June purposes of collecting, validating, of the burden of the proposed 2, 2010, and from 8 a.m. to 5 p.m. (EDT) verifying, processing, maintaining, collections of information, including the on June 3, 2010 at the Federal Energy disclosing, and providing information; validity of the methodology and Regulatory Commission, 888 First (3) adjusting the existing ways to assumptions used; (3) ways to enhance Street, NE., Washington, DC 20426, in comply with any previously applicable the quality, utility and clarity of the the Commission Meeting Room. All instructions and requirements; (4) information to be collected; and (4) interested persons are invited to attend, ways to minimize the burden of the and registration is not required. 4 Using the hourly rate figures of the Bureau of collections of information on those who The agenda for this conference is Labor Statistics, occupational series and market are to respond, including the use of attached. The presentations will be rates as applicable, the hourly rate is a composite appropriate automated, electronic, technical in nature, and approximately of the respondents who will be responsible for implementing and responding to the collection of mechanical, or other technological 20 minutes in length with 5 to 10 information (support staff, engineering, and legal). collection techniques or other forms of minutes for questions. Equipment will

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be available for computer presentations. event in the calendar. The event will 8659 (TTY), or send a fax to 202–208– Presenters who wish to include contain a link to its webcast. The 2106 with the required comments, presentations, or handouts Capitol Connection provides technical accommodations. in the record for this proceeding should support for the free webcasts. It also For further information about this file their comments with the offers access to this event via television conference, please contact: Commission. Comments may either be in the DC area and via phone bridge for Eric Krall (Technical Information), filed on paper or electronically via the a fee. If you have any questions, visit Office of Energy Policy and eFiling link on the Commission’s Web http://www.CapitolConnection.org or Innovation, (202) 502–6214, site at http://www.ferc.gov. call (703) 993–3100. [email protected]; Tom Dautel (Technical Information), A free webcast of this event is FERC conferences are accessible Office of Energy Policy and available through http://www.ferc.gov. under section 508 of the Rehabilitation Innovation, (202) 502–6196, Anyone with Internet access who Act of 1973. For accessibility [email protected]. desires to view this event can do so by accommodations please send an e-mail navigating to http://www.ferc.gov’s to [email protected] or call toll free Kimberly D. Bose, Calendar of Events and locating this 1–866–208–3372 (voice) or 202–208– Secretary.

AGENDA FOR AD10–12 STAFF TECHNICAL CONFERENCE ON UNIT COMMITMENT SOFTWARE FEDERAL ENERGY REGULATORY COMMISSION

June 2, 2010

8 a.m...... Richard O’Neill, FERC—Welcome and Introduction 8:20 a.m...... Session A—Unit Commitment Models in ISO Markets Andy Ott, PJM Mark Rothleder, California ISO Rana Mukerji, NYISO 9:25 a.m...... Session B—Experience, Challenges, and Future Directions in Unit Commitment Models Art Cohen and Chien-Ning Yu, ABB William Hogan, Harvard 11:40 a.m...... Lunch 12:40 p.m...... Boris Gisin, PowerGEM 1:50 p.m...... Session C—Advances in Hardware and Software Jeremy Bloom and John Gregory, IBM Alkis Vazacopoulos, FICO 3 p.m...... Session D—New Designs and Advanced Unit Commitment Models Kory Hedman, Arizona State University Jianhui Wang, Argonne National Laboratory Eugene Litvinov, J. Zhao, and T. Zheng ISO–NE 4:55 p.m...... Session E—Test Model Data Sets Avnaesh Jayantilal, Areva and Jim Waight, Siemens Richard O’Neill and Eric Krall, FERC 5:30 p.m...... Richard O’Neill, FERC—Day 1 Conclusion

June 3, 2010

8 a.m...... Richard O’Neill, FERC—Day 2 Welcome 8:05 a.m...... Session F—Special Topics Paul Gribik and Li Zhang, Midwest ISO Gary Stern, Southern California Edison 9:25 a.m...... Session G—Variable Energy Resources and Demand Resources in Unit Commitment Models Erik Ela, National Renewable Energy Laboratory Jayant Kalagnanam, IBM Marija Ilic, Carnegie Mellon Dhiman Chatterjee, Midwest ISO 11:55 a.m...... Session H—Modeling Uncertainty and Flexibility in Unit Commitment Models David Sun, Alstom 12:30 p.m...... Lunch 1:20 p.m...... Jianhui Wang and Audun Botterud, Argonne National Laboratory Mohammad Shahidehpour, Illinois Institute of Technology Pablo Ruiz, CRA Avnaesh Jayantilal, Areva T&D 3:50 p.m...... Session I—Forecasting for Market Operations Audun Botterud, Argonne National Laboratory Victor M. Zavala, Emil Constantinescu, and Mihai Anitescu, Argonne National Laboratory 5 p.m...... Richard O’Neill, FERC—Conclusion and Next Steps

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[FR Doc. 2010–12851 Filed 5–27–10; 8:45 am] only comments, click on ‘‘Quick Delano, CA 93216; telephone (661) 725– BILLING CODE 6717–01–P Comment.’’ For assistance, please 0610. contact FERC Online Support at Fergus Morrissey, Orange Cove [email protected]; call toll- Irrigation District, 1130 Park Boulevard, DEPARTMENT OF ENERGY free at (866) 208–3676; or, for TTY, Orange Cove, CA 93646; telephone (559) contact (202) 502–8659. Although the 626–4461. Federal Energy Regulatory Commission strongly encourages i. FERC Contact: Linda Stewart, Commission electronic filing, documents may also be telephone: (202) 502–6680, and e-mail [Project No. 13678–000] paper-filed. To paper-file, mail an address: [email protected]. original and eight copies to: Kimberly D. j. Deadline for filing motions to Hydrodynamics, Inc.; Notice of Bose, Secretary, Federal Energy intervene and protests, comments, Preliminary Permit Application Regulatory Commission, 888 First recommendations, terms and Accepted for Filing and Soliciting Street, NE., Washington, DC 20426. conditions, and fishway prescriptions is Comments, Motions To Intervene, and More information about this project, 60 days from the issuance of this notice; Competing Applications including a copy of the application, can reply comments are due 105 days from be viewed or printed on the ‘‘eLibrary’’ the issuance date of this notice. All May 21, 2010. link of Commission’s Web site at documents (original and eight copies) On March 4, 2010, Hydrodynamics, http://www.ferc.gov/docs-filing/elibrary. should be filed with: Secretary, Federal Inc. filed an application for a asp. Enter the docket number (P–13678) Energy Regulatory Commission, 888 preliminary permit, pursuant to section in the docket number field to access the First Street, NE., Washington, DC 20426. 4(f) of the Federal Power Act, proposing document. For assistance, contact FERC Please include the project number (P– to study the feasibility of the Dry Creek Online Support. 11068–014) on any comments or Canal Irrigation Hydroelectric Project. motions filed. The sole purpose of a preliminary Kimberly D. Bose, k. Description of Request: Friant permit, if issued, is to grant the permit Secretary. Power Authority and Orange Cove holder priority to file a license [FR Doc. 2010–12859 Filed 5–27–10; 8:45 am] Irrigation District (licensees) propose to application during the permit term. A BILLING CODE 6717–01–P construct a different powerhouse from preliminary permit does not authorize the one authorized in the October 13, the permit holder to perform any land- 2006 Order Amending License. Instead disturbing activities or otherwise enter DEPARTMENT OF ENERGY of constructing a new powerhouse upon lands or waters owned by others containing a single turbine generating without the owners’ express permission. Federal Energy Regulatory unit with an installed capacity of 1.8 The proposed project would consist Commission megawatts (MW) and hydraulic capacity of: (1) A new reinforced concrete intake [Project No. 11068–014] of 130 cubic feet per second (cfs), the structure; (2) a new 36-inch-diameter, licensees propose to construct a new 2,600-foot-long [polyethylene and/or Friant Power Authority Orange Cove powerhouse containing a single turbine steel or PVC] penstock; (3) a new Irrigation District; Notice of Application generating unit with an installed approximately 35-foot by 35-foot Accepted for Filing, Soliciting Motions capacity of 7.0 MW and hydraulic powerhouse, housing one turbine/ To Intervene and Protests, Ready for capacity of 370 cfs. The proposed new generator unit (with an installed Environmental Analysis, and Soliciting powerhouse would be constructed at a capacity of 500 kilowatts); (4) a new Comments, Recommendations, Terms location different from the location substation; and (5) a 100-foot long, 12.47 and Conditions, and Fishway authorized in the license. kilovolt transmission line which will Prescriptions l. Locations of the Application: A interconnect with an existing Park copy of the application is available for Electric utility line. The estimated May 20, 2010. inspection and reproduction at the annual generation for this project is 1.7 Take notice that the following Commission’s Public Reference Room, gigawatt hours. hydroelectric application has been filed located at 888 First Street, NE., Room Applicant Contact: Jason M. Cohn, with the Commission and is available 2A, Washington, DC 20426, or by calling Project Engineer, Hydrodynamics, Inc., for public inspection: (202) 502–8371. This filing may also be 521 East Peach St., Suite 2B, Bozeman, a. Application Type: Amendment of viewed on the Commission’s Web site at MT 59715. license to increase the installed http://ferc.gov using the ‘‘eLibrary’’ link. FERC Contact: Kelly Wolcott, 202– capacity. Enter the docket number excluding the 502–6480. b. Project No.: 11068–014. last three digits in the docket number Deadline for filing comments, motions c. Date Filed: February 22, 2010, and field to access the document. You may to intervene, competing applications supplemented on May 13, 2010. also register online at http://www.ferc. (without notices of intent), or notices of d. Applicant: Friant Power Authority gov/docs-filing/esubscription.asp to be intent to file competing applications: 60 and Orange Cove Irrigation District. notified via e-mail of new filings and days from the issuance of this notice. e. Name of Project: Fishwater Release issuances related to this or other Competing applications and notices of Hydroelectric Project. pending projects. For assistance, call 1– intent must meet the requirements of 18 f. Location: The project is located at 866–208–3676 or e-mail CFR 4.36. Comments, motions to the Bureau of Reclamation’s Friant Dam [email protected], for TTY, intervene, notices of intent, and on the San Joaquin River in Fresno call (202) 502–8659. A copy is also competing applications may be filed County, California. available for inspection and electronically via the Internet. See 18 g. Filed Pursuant to: Federal Power reproduction at the address in item (h) CFR 385.2001(a)(1)(iii) and the Act, 16 USC 791a–825r. above. instructions on the Commission’s Web h. Applicant Contact: Bill Carlisle, m. Individuals desiring to be included site (http://www.ferc.gov/docs-filing/ General Manager, Friant Power on the Commission’s mailing list should ferconline.asp) under the ‘‘eFiling’’ link. Authority, c/o South San Joaquin so indicate by writing to the Secretary For a simpler method of submitting text Municipal Utility District, P.O. Box 279, of the Commission.

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n. Comments, Protests, or Motions to on which the certifying agency received Support at Intervene: Anyone may submit the request; or (3) evidence of waiver of [email protected] or toll- comments, a protest, or a motion to water quality certification. free at 1–866–208–3676, or for TTY, intervene in accordance with the q. e-Filing: Motions to intervene, (202) 502–8659. requirements of Rules of Practice and protests, comments, recommendations, You may also register online at Procedure, 18 CFR 385.210, .211, .214. terms and conditions, and fishway http://www.ferc.gov/docs-filing/ In determining the appropriate action to prescriptions may be filed electronically esubscription.asp to be notified via e- take, the Commission will consider all via the Internet in lieu of paper. See, 18 mail of new filings and issuances protests or other comments filed, but CFR 385.2001(a)(1)(iii) and the related to this or other pending projects. only those who file a motion to instructions on the Commission’s Web For assistance, contact FERC Online intervene in accordance with the site at http://www.ferc.gov under the ‘‘e- Support. Commission’s Rules may become a Filing’’ link. Any comments should be filed within party to the proceeding. Any comments, 30 days from the date of this notice. protests, or motions to intervene must Kimberly D. Bose, Comments may be filed electronically be received on or before the specified Secretary. via the Internet. See 18 CFR comment date for the particular [FR Doc. 2010–12852 Filed 5–27–10; 8:45 am] 385.2001(a)(1)(iii) and the instructions application. BILLING CODE 6717–01–P on the Commission’s Web site (http:// o. Filing and Service of Responsive www.ferc.gov/docs-filing/ferconline.asp) Documents: All filings must (1) bear in under the ‘‘eFiling’’ link. For a simpler all capital letters the title ‘‘PROTEST’’, DEPARTMENT OF ENERGY method of submitting text-only ‘‘MOTION TO INTERVENE’’, comments, click on ‘‘Quick Comment.’’ ‘‘COMMENTS,’’ ‘‘REPLY COMMENTS,’’ Federal Energy Regulatory Commission For assistance, please contact FERC ‘‘RECOMMENDATIONS,’’ ‘‘TERMS AND Online Support at CONDITIONS,’’ or ‘‘FISHWAY [Project No. 2211–004] [email protected]; call toll- PRESCRIPTIONS’’; (2) set forth in the free at (866) 208–3676; or, for TTY, heading the name of the applicant and Duke Energy Indiana, Inc.; Indiana; contact (202) 502–8659. Although the the project number of the application to Notice of Availability of Environmental Commission strongly encourages which the filing responds; (3) furnish Assessment electronic filing, documents may also be the name, address, and telephone paper-filed. To paper-file, mail an number of the person protesting or May 21, 2010. In accordance with the National original and eight copies to: Kimberly D. intervening; and (4) otherwise comply Bose, Secretary, Federal Energy with the requirements of 18 CFR Environmental Policy Act of 1969 and the Federal Energy Regulatory Regulatory Commission, 888 First 385.2001 through 385.2005. All Street, NE., Washington, DC 20426. comments, recommendations, terms and Commission’s (Commission) regulations, 18 CFR part 380 (Order No. Please affix Project No. 2211–004 to all conditions or prescriptions must set comments. forth their evidentiary basis and 486, 52 FR 47897), the Office of Energy Projects has reviewed the application For further information, contact otherwise comply with the requirements Dianne Rodman at (202) 502–6077. of 18 CFR 4.34(b). All comments, for a new license for the Markland recommendations, terms and conditions Hydroelectric Project, located at the U.S. Kimberly D. Bose, or prescriptions should relate to project Army Corps of Engineers’ (Corps) Secretary. works which are the subject of the existing Markland Locks and Dam on [FR Doc. 2010–12850 Filed 5–27–10; 8:45 am] license amendment. Agencies may the Ohio River in Switzerland County, BILLING CODE 6717–01–P obtain copies of the application directly Indiana, and has prepared an from the applicant. A copy of any Environmental Assessment (EA) for the protest or motion to intervene must be project. Parts of the project occupy 6.21 DEPARTMENT OF ENERGY served upon each representative of the acres of federal land administered by applicant specified in the particular the Corps; Duke Energy Indiana, Inc. Federal Energy Regulatory application. If an intervener files proposes changing the project boundary Commission comments or documents with the to include a total of 10.2 acres of federal [Project No. 2088–075] Commission relating to the merits of an land to accommodate new and existing issue that may affect the responsibilities project facilities. South Feather Water and Power of a particular resource agency, they The EA contains the staff’s analysis of Agency; Notice of Availability of must also serve a copy of the document the potential environmental impacts of Environmental Assessment on that resource agency. A copy of all continued operation and maintenance of other filings in reference to this the project and concludes that May 20, 2010. application must be accompanied by relicensing the project, with appropriate In accordance with the National proof of service on all persons listed in environmental protective measures, Environmental Policy Act of 1969, as the service list prepared by the would not constitute a major federal amended, and the Federal Energy Commission in this proceeding, in action that would significantly affect the Regulatory Commission’s (Commission) accordance with 18 CFR 4.34(b) and quality of the human environment. regulations, (18 CFR Part 380), 385.2010. A copy of the EA is available for Commission staff has prepared an p. As provided for in 18 CFR review at the Commission in the Public environmental assessment (EA) 4.34(b)(5)(i), a license applicant must Reference Room or may be viewed on regarding South Feather Water and file, no later than 60 days following the the Commission’s Web site at http:// Power Agency’s (SFWPA) request to date of issuance of this notice of www.ferc.gov using the ‘‘eLibrary’’ link. raise the dam crest and modify the acceptance and ready for environmental Enter the docket number excluding the spillway at Sly Creek Dam, part of the analysis: (1) A copy of the water quality last three digits in the docket number Sly Creek development of the South certification; (2) a copy of the request for field to access the document. For Feather Power Project (FERC No. 2088). certification, including proof of the date assistance, contact FERC Online Sly Creek is located on Sly Creek

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Reservoir, which receives water from to intervene or to protest this filing must Assistance Rules, particularly the Lost Creek, and the Slate Creek and file in accordance with Rules 211 and regulations that deal with programmatic South Fork Feather River diversion 214 of the Commission’s Rules of changes, and DOE policies and tunnels in Butte, Yuba and Plumas Practice and Procedure (18 CFR 385.211 procedures on the use of warranted counties, California. and 385.214). Protests will be Contracting Officers to administer SFWPA’s Proposed Action includes: considered by the Commission in financial assistance agreements, has (1) Raising Sly Creek Dam determining the appropriate action to be been approved for the Energy Efficiency approximately 10 feet through the use of taken, but will not serve to make and Conservation Block Grant (EECBG) mechanically stabilized earth walls protestants parties to the proceeding. program. This class deviation gives constructed from approximately 20,000 Any person wishing to become a party authority to EECBG Program Managers cubic yards of fill from an onsite borrow must file a notice of intervention or to approve the following processes for area; (2) modifying the spillway crest motion to intervene, as appropriate. financial assistance agreements made structure; (3) replacing the spill gate; Such notices, motions, or protests must using Recovery Act funding to State, and (4) altering roadway approaches to be filed on or before the date as city, county, and Tribal recipients in the Sly Creek Dam crest and re-paving indicated below. Anyone filing an support of the formula EECBG program: the road to improve drainage conditions intervention or protest must serve a Administer financial assistance awards in the adjacent campground and borrow copy of that document on the Applicant. for approval of programmatic changes site. Anyone filing an intervention or protest under the Changes section of the The EA contains Commission staff’s on or before the intervention or protest Financial Assistance Rules; review of analysis of the potential environmental date need not serve motions to intervene subsequent budget submittals for effects of the Proposed Action and or protests on persons other than the consistency with the requirements of concludes that the Proposed Action, Applicant. Office of Management and Budget’s with the implementation of The Commission encourages (OMB) Cost Principles for State, Local environmental protective measures, electronic submission of protests and and Indian Tribal Governments would not constitute a major federal interventions in lieu of paper using the (questions on allowability, allocability action significantly affecting the quality ‘‘eFiling’’ link at http://www.ferc.gov. and reasonableness of budgets and of the human environment. Persons unable to file electronically individual cost elements will be A copy of the EA is available for should submit an original and 14 copies forwarded to the Contracting Officer for review at the Commission’s Public of the protest or intervention to the adjudication), remove and/or modify Reference Room, or it may be viewed on Federal Energy Regulatory Commission, National Environmental Policy Act the Commission’s Web site at http:// 888 First Street, NE., Washington, DC (NEPA) restrictions, including guidance www.ferc.gov using the ‘‘eLibrary’’ link. 20426. on NEPA requirements; and amend Enter the docket number (P–2088) in the This filing is accessible on-line at agreements for administrative activities docket number field to access the http://www.ferc.gov, using the such as lifting conditions based on document. Additional information ‘‘eLibrary’’ link and is available for approval of Strategies. The class about the project is available from the review in the Commission’s Public deviation does not apply to non-formula Commission’s Web site using the Reference Room in Washington, DC. awards. There is an ‘‘eSubscription’’ link on the eLibrary link. For assistance with DATES: This class deviation is effective eLibrary, contact Web site that enables subscribers to June 14, 2010. receive e-mail notification when a [email protected] or toll- FOR FURTHER INFORMATION CONTACT: document is added to a subscribed Mr. free at (866) 208–3676; for TTY, contact Tyler Huebner, U.S. Department of (202) 502–8659. docket(s). For assistance with any FERC Online service, please e-mail Energy, Office of Weatherization and Kimberly D. Bose, [email protected], or call Intergovernmental Programs, Mailstop Secretary. (866) 208–3676 (toll free). For TTY, call EE–2K, 1000 Independence Avenue, SW., Washington, DC 20585–0121. E- [FR Doc. 2010–12858 Filed 5–27–10; 8:45 am] (202) 502–8659. mail: [email protected]. BILLING CODE 6717–01–P Comment Date: 5 p.m. Eastern Time on Friday, May 28, 2010. SUPPLEMENTARY INFORMATION: I. Background Kimberly D. Bose, DEPARTMENT OF ENERGY II. Discussion Secretary. III. Determination Federal Energy Regulatory [FR Doc. 2010–12861 Filed 5–27–10; 8:45 am] Commission BILLING CODE 6717–01–P I. Background The DOE, Office of Energy Efficiency [Docket No. PR10–25–000] and Renewable Energy (EERE), has Consumers Energy Company; Notice DEPARTMENT OF ENERGY experienced historic growth and of Baseline Filing unprecedented workload challenges as a Office of Energy Efficiency and result of the passage of the American May 21, 2010. Renewable Energy; Energy Efficiency Recovery and Reinvestment Act of 2009 Take notice that on May 17, 2010, and Conservation Block Grant (Recovery Act). The Recovery Act Consumers Energy Company Program provides critical funding to be spent in (Consumers) submitted a baseline filing AGENCY: Office of Energy Efficiency and support of the economy, creating jobs of its Statement of Operating Conditions Renewable Energy, Department of and serving the public purpose by for the interruptible transportation Energy. advancing the development and services provided under section ACTION: Notice. adoption of renewable and energy 311(a)(2) of the Natural Gas Policy Act efficiency technology. of 1978 (‘‘NGPA’’). SUMMARY: This document advises the The Recovery Act included Any person desiring to participate in public that a class deviation to the conditions on the use of its funding for this rate proceeding must file a motion Department of Energy (DOE) Financial all awards. These conditions included

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applying the Davis-Bacon Act to risk of misuse of Recovery Act funds, it conditions based on approval of financial assistance and adding Buy creates a tremendous workload on the Strategies. American requirements for steel, iron program and procurement offices. In order to ensure that the grant file and manufactured goods. In addition, Although numerous standard is complete and there is a record of the Recovery Act did not provide for processes have been streamlined and/or approvals, the EECBG Program Manager waivers or deviations from any statutory waived, including lifting NEPA approval must be in writing and the or regulatory requirement normally restrictions via a letter issued by the Contracting Officer must be copied on associated with acquisitions and Contracting Officer (rather than through all such approvals. financial assistance activities. Of a grant amendment) and waiving Each program manager must have particular importance for the EECBG approval of budget changes as filed either a public financial disclosure Program, waivers or deviations were not authorized by 10 CFR 600.230(c), report (SF 278) or a confidential provided from the National additional relief is necessary to ensure financial disclosure report (OGE 450), Environmental Policy Act (NEPA) or the that the funds are released to the depending upon the individual’s Office of Management and Budget grantees expeditiously in accordance position at the Department, and it must (OMB) Guidance for Grants and with the intent of the Recovery Act. be confirmed that the individual does not have any conflicts of interest that Agreements. II. Discussion Under the Recovery Act, EERE is have not been remedied. Prior to charged with spending over $16 billion According to DOE’s Financial receiving a delegation as discussed dollars across the entire EERE portfolio, Assistance Rules, 10 CFR Part 600, and herein, each program manager must including $2.7 billion for EECBG as reflected in the DOE’s Guide to have completed two financial assistance Program. The EECBG Program, funded Financial Assistance, a warranted classes (Basic Financial Assistance and for the first time by the Recovery Act, Contracting Officer is required to sign Cost Principles—see the Acquisition represents a Presidential priority to all financial assistance awards and Career Management Program Manual for deploy the cheapest, cleanest, and most amendments including awards to States, further information). EECBG must reliable energy technologies we have— cities, counties and Tribes receiving provide a written request to the Head of energy efficiency and conservation— formula funds as part of the EECBG the Contracting Activity (HCA) for the across the country. The EECBG Program, program. For EECBG, this may require Golden Field Office identifying the authorized in title V, subtitle E, of the as many as 10,000 actions to release person, demonstrating satisfaction of Energy Independence and Security Act conditions fully on the awards and these qualifications, and stating the of 2007 (EISA), is intended to assist U.S. permit use of Recovery Act funds. Given need for the delegation. For awards cities, counties, States, territories, and the limited number of Contracting administered by other than the Golden Indian Tribes to develop, promote, Officers within DOE and particularly Field Office, that office’s cognizant HCA implement, and manage energy within the procurement offices will be asked to concur on the EECBG efficiency and conservation projects and processing EECBG workload, there is a Program Manager’s delegation of programs designed to: limit to the number of awards that can authority for awards under that office’s • Reduce fossil fuel emissions; be made or amended in the near term purview. • Reduce the total energy use of the under the current regulatory Although there are risks that the eligible entities; and requirements and DOE policies. funds may be used inappropriately, • Improve energy efficiency in the EERE has examined the financial overall EECBG awards are generally transportation, building, and other assistance award and administration low-risk awards. The awards are to appropriate sectors. process to determine what additional cities, counties, States and Tribes which See EISA section 542(b). Through approaches can be used in the short are generally low risk recipients. Many formula and competitive grants, the term to support timely processing of the of the recipients have other Federal EECBG Program empowers local extraordinary workload while awards and have established processes communities to make strategic maintaining the due diligence and rigor that provide systemic support for proper investments to meet the nation’s long- that expenditures of public funds use of Federal funds. The total dollar term goals for energy independence and requires. EERE recommended that the amount of each award is established by leadership on climate change. DOE Senior Procurement Executive/ a formula that limits the DOE’s liability In support of the EECBG Program, Director, Office of Procurement and for cost overruns or underestimation of EERE and the procurement offices Assistance Management approve a class costs included in the proposed budget. (Procurement) at the Golden Field deviation to allow EECBG Program Risk is further limited as the grantee Office, Oak Ridge Operations Office, Managers to have the authority to must first have an approved energy and Yucca Mountain Project Office have approve the following processes: efficiency and conservation strategy been charged with managing over 2,200 (1) Administer financial assistance pursuant to EISA 545(b) (hereafter, block grants to cities, counties, States awards for approval of programmatic Strategy). Projects must be for an and Tribal governments. In order to changes under 10 CFR 600.230(d); eligible activity under EISA 544 and obligate funds quickly and expedite the (2) Review of subsequent budget require DOE approval for work to begin. process of developing strategies and submittals for consistency with the Each entity expending over $500,000 in budgets, the majority of the grants were requirements of OMB Circular A–87. a fiscal year is subject to the Single awarded on a partially conditioned Questions on allowability, allocability Audit Act, and DOE has the right to basis. That is, awards were conditioned and reasonableness of budgets and perform other nonduplicative audits on upon NEPA approval and included individual cost elements will be the grants. Together, these measures requirements for post-award submission forwarded to the Contracting Officer for limit the risk to DOE of misuse of funds. of strategies and budgets. To lift all adjudication. To limit the risk of misuse of funds conditions so that grantees may expend (3) Remove and/or modify NEPA associated with the delegation of all grant funds, awards must be restrictions, including guidance on authority to approve certain post-award amended at least once and often NEPA requirements; and processes to EECBG Program Managers, multiple times. While this practice of (4) Amend agreements for the following actions remain conditioning the awards may reduce the administrative activities such as lifting unchanged:

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(1) Contracting Officers will review called the Retrofit Ramp-Up program Department of Energy, Office of Energy the initial award package (including will not be following the same processes Efficiency and Renewable Energy budget and proposed activities) and for full unrestricted use of funds. (EERE)’s request for a class deviation. issue the initial award obligating the This modified financial assistance EERE has experienced historic growth funds. administration process would provide and unprecedented workload challenges (2) The annual audit contained in for due diligence in review of initial and as a result of the passage of the OMB Circular A–133 remains in effect final scopes of the work performed American Recovery and Reinvestment and will serve as additional oversight of under the EECBG formula, in keeping Act of 2009 (Recovery Act). Changes to expenditures. with the goals and objectives of the normal procedures are required to meet (3) A NEPA Compliance Officer Recovery Act while operating in the goals and objectives of the Recovery (NCO) will determine whether the accordance with DOE’s Financial Act. NEPA requirements have been satisfied Assistance Rules and OMB guidance on a. The Contracting Officer is defined for a recipient’s project. financial assistance. in 10 CFR 600.3 as the DOE authorizing The process for approving the actions III. Determination official to execute awards on behalf of that occur after a Contracting Officer has DOE and who is responsible for the made the initial award is the following: At the request of the Office of EERE business management and non-program (1) Upon receiving a package from the on May 12, 2010, the Senior aspects of the financial assistance recipient, the agreement’s assigned Procurement Executive of the process. Federal Technical Project Officer (TPO) Department of Energy and as the Acting b. Recipients are required by 10 CFR determines if the package involves one Director of the Office of Procurement 600.230 to obtain the prior approval of of the actions listed above (i.e., approval and Assistance Management (OPAM), the awarding agency whenever any of of the Strategy, award modification such Patrick M. Ferraro, executed the the following actions is anticipated: as a scope change, or NEPA letter ‘‘Determination and Findings to Deviate (1) Any revision of the scope or modification). from 10 CFR Part 600’’ which authorizes objectives of the project (regardless of (2) If the TPO determines the package a class deviation to Department of whether there is an associated budget involves one of the above actions, (s)he Energy policies and procedures as revision requiring prior approval). completes a technical evaluation (or described therein. As required by 10 (2) Need to extend the period of drafts a letter lifting the NEPA CFR 600.4(d), that Determination is set availability of funds. condition), along with a brief risk forth below, and will take effect on June (3) Changes in key persons in cases assessment of the grantee (see OWIP 14, 2010. where specified in an application or a Monitoring Plan and the DOE Guide to Issued in Washington, DC, on May 21, grant award. In research projects, a Financial Assistance), completes a 2010. change in the project director or review of the recipient’s budget Cathy Zoi, principal investigator shall always consistent with OMB Circular A–87, Assistant Secretary, Energy Efficiency and require approval unless waived by the and submits the documentation to the Renewable Energy. awarding agency. EECBG Program Manager. (4) Under nonconstruction projects, (3) The cognizant EECBG Program U.S. Department of Energy contracting out, subgranting (if Manager reviews the technical Office of Energy Efficiency and authorized by law) or otherwise evaluation and risk assessment and Renewable Energy obtaining the services of a third party to either approves via signature, or perform activities which are central to Energy Efficiency Conservation Block requests the TPO to: the purposes of the award. This Grant Program Determination and a. Revise the technical evaluation, approval requirement is in addition to Findings To Deviate From 10 CFR Part and/or gather more information from the the approval requirements of § 600.236 600 grantee; but does not apply to the procurement b. Submit the package to a Specialist In accordance with paragraph 2.8 of of equipment, supplies, and general in Procurement for a peer-review prior the delegation of authority from the support services. to approval by the EECBG Program Secretary of Energy to the Director, c. The Recovery Act appropriated $2.7 Manager or designee; or Office of Procurement and Assistance billion dollars for the Energy Efficiency c. Submit the package to Procurement Management (OPAM) as Senior and Conservation Block Grant (EECBG) for full review and approval by a Procurement Executive of the program. The EECBG is intended to Contracting Officer, per 10 CFR part Department of Energy, the Director may: assist U.S. cities, counties, States, 600. Enter into, approve, administer, modify, territories, and Indian Tribes, to (4) Following approval by the EECBG close-out, terminate and take such other develop, promote, implement, and Program Manager, the TPO will actions as may be necessary and appropriate manage energy efficiency and maintain a file with information on the with respect to any financial assistance conservation projects and programs action including a memo explaining the agreement, sales contract, or similar designed to: change and any award documents (e.g., transaction, whether or not binding DOE to • Reduce fossil fuel emissions; budget). The TPO notifies Procurement the obligation and expenditure of public • Reduce the total energy use of the funds. Such action shall include the of the completed action, providing a eligible entitles; and rendering of approvals, determinations, and • copy of the approval as noted above. decisions, except those required by law or Improve energy efficiency in the (5) As a part of the closeout process, regulation to be made by other authority. transportation, building, and other a Contracting Officer will incorporate appropriate sectors. The DOE Financial Assistance Rules, at 10 d. The EECBG program is carried out the EECBG Program Manager’s CFR 600.4(c)(ii), authorize the Director of approvals into the award so that the OPAM to approve or deny requests for a class through the award of formula grants. final electronic record is complete. deviation. The program regulations define the The competitive portion of the EECBG eligible applicants and the formula for program is not included in this Findings the total amount of the awards. The deviation request. The twenty-five This memorandum presents all competitive award portion of the EECBG awards made under what is now being findings associated with U.S. is not included in this deviation.

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e. The EECBG program has DEPARTMENT OF ENERGY baseline tariff filing format. As provided dramatically increased the workload in Order No. 714, this requirement is placed on DOE procurement offices to Federal Energy Regulatory not limited to tariffs or to modifications award and administer the grants Commission of the baseline tariff filing, but executed for the program. [Docket No. RM01–5–000] encompasses all the company’s other tariffs, rate schedules, and jurisdictional f. Delegation of certain non-monetary agreements, and all filings revising, administrative actions to DOE program Electronic Tariff Filings; Notice of Posting Regarding Filing Procedures withdrawing, or otherwise affecting managers will increase the speed of for Electronically Filed Tariffs such documents or the effective dates of expenditures of Recovery Act funds such provisions. For example, natural under the EECBG to speed goals of the May 21, 2010. gas negotiated rate agreements and non- Recovery Act. Take Notice that the attached conforming service agreements, electric g. Appropriate controls, oversight and document ‘‘Filing Procedures For rate schedules, transmission, power monitoring are available to decrease the Electronically Filed Tariffs, Rate sale, and ancillary service agreements, risk of misuse of funds by the recipients Schedules And Jurisdictional interconnection agreements, and all without the Contracting Officers Agreements’’ has been posted on the other jurisdictional agreements are involvement in approval of eTariff Web site (http://www.ferc.gov/ covered by this requirement. As programmatic changes and other docs-filing/etariff.asp) under described below, this requirement also administrative actions. Commission Orders and Notices at applies to tariff filings related to periods http://www.ferc.gov/docs-filing/etariff/ earlier than the baseline filing. Once the Determination com-order.asp. Office of the Secretary accepts a For further information, please company’s baseline tariff filing for Based on the above findings and in contact Keith Pierce at 202–502–8525 or processing, the company should not accordance with the authority granted to Andre Goodson at 202–502–8560, or make any further tariff related filings on me as the Senior Procurement Executive through e-mail to [email protected]. paper or electronically in a format that of the Department of Energy and as the does not comply with the electronic Director of OPAM, I have determined Kimberly D. Bose, filing format required by Order No. 714. that a class deviation to Department of Secretary. • Required Tariff Documents To Be Energy policies and procedures Filing Procedures for Electronically Included With an Electronic Tariff governing financial assistance is Filed Tariffs, Rate Schedules and Filing. appropriate and necessary to meet the Jurisdictional Agreements As part of an electronic tariff filing, companies must include as tariff records goals and objectives of the Recovery Act In Order No. 714,1 the Commission while at the same time providing 1) a copy of the proposed tariff adopted regulations requiring that, provision, and 2) the plain text of the required due diligence and rigor that starting April 1, 2010, and for a tariff provision. In addition as support DOE’s execution of its fiduciary transition period through September 30, attachments, companies must include 3) responsibilities. 2010, all tariffs, rate schedules, and a clean copy of the tariff provision and I have determined the deviation to 10 jurisdictional agreements, and revisions 4) the marked text of the provision CFR Part 600, in particular 10 CFR to such documents, filed with the (when required). 600.230, and DOE policies and Commission must be filed electronically • Electronic Tariff Filings for Periods procedures on the use of warranted according to a format provided in the Earlier Than the Baseline Filing. Contracting Officers to administer Implementation Guide.2 Based on issues The electronic tariff software will not financial assistance agreements is in the that have arisen on some of the baseline accept electronic tariff filings with tariff best interest of the EECBG program and tariff filings, and inquiries, this notice records that have a proposed effective the use of Recovery Act funds. The describes procedures for making date earlier than the effective date 3 deviation is approved subject to the electronic tariff filings. Electronic tariff associated with the tariff identification filings that do not comply with these above findings and the process outlined number for the baseline filing. requirements are subject to rejection. in the attached memorandum. Companies may have outstanding • Once a Baseline Tariff Filing Has compliance obligations or rates for This class deviation applies to Been Made, All Tariff Filings Must be prior, locked-in periods that need to be financial assistance agreements made Made Electronically Pursuant to the filed with the Commission or may need using Recovery Act funding to State, Order No. 714 Guidelines. to propose changes to parts of a city, county or Tribal recipients in Once a company makes its baseline company’s tariffs that were not part of support of the EECBG program. It does tariff filing in compliance with Order the baseline tariff filing. Such filings not apply to non-formula awards. No. 714, the company must make all should be made in the following subsequent filings of tariffs, rate manner: This class deviation is not effective Æ until fifteen days after a notice is schedules, and jurisdictional The compliance or other agreements in the Order No. 714 published in the Federal Register; see provision applicable to the period after the baseline tariff filing has been 10 CFR 600.4(d). 1 Electronic Tariff Filings, Order No. 714, FERC accepted by the Secretary for processing Patrick M. Ferraro, Stats. & Regs. ¶ 31,276 (2008). must be made in the electronic tariff 2 The data elements and communication protocol filing format required by Order No. 714. Acting Director, Office of Procurement and are described in the Implementation Guide for Æ Tariff provisions governing Assistance Management. Electronic Filing of Parts 35, 154, 284, 300, and 341 Tariff Filing (Implementation Guide), available at periods earlier than the baseline filing [FR Doc. 2010–12886 Filed 5–27–10; 8:45 am] http://www.ferc.gov/docs-filing/etariff/ must be included either as part of the BILLING CODE 6450–01–P implementation-guide.pdf. transmittal letter or as a separate 3 As indicated in Order No. 714, this phrase is intended to encompass rate schedule and attachment, unless the company and its jurisdictional agreement filings as well. Order No. customers have waived the need to file 714, at P 13 n.11. tariff provisions for the earlier periods.

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As an example, if a company with a of that document on the Applicant and comment date. On or before the baseline tariff effective April 15, 2010, all the parties in this proceeding. comment date, it is not necessary to has an outstanding compliance filing The Commission encourages serve motions to intervene or protests with an effective date of January 1, electronic submission of protests and on persons other than the Applicant. 2010, that the Commission accepts, the interventions in lieu of paper using the The Commission encourages company must file the compliance tariff ‘‘eFiling’’ link at http://www.ferc.gov. electronic submission of protests and provisions as tariff records in Persons unable to file electronically interventions in lieu of paper using the accordance with the electronic file should submit an original and 14 copies ‘‘eFiling’’ link at http://www.ferc.gov. format of Order No. 714 with an of the protest or intervention to the Persons unable to file electronically effective date of April 15, 2010. The Federal Energy Regulatory Commission, should submit an original and 14 copies company also should file the tariff 888 First Street, NE., Washington, DC of the protest or intervention to the provisions with a January 1, 2010, 20426. Federal Energy Regulatory Commission, effective date either as part of the This filing is accessible on-line at 888 First Street, NE., Washington, DC transmittal letter or as a separate http://www.ferc.gov, using the 20426. attachment. ‘‘eLibrary’’ link and is available for This filing is accessible on-line at • FASTR Requirements for Natural review in the Commission’s Public http://www.ferc.gov, using the Gas Pipelines. Reference Room in Washington, DC. ‘‘eLibrary’’ link and is available for FASTR will be retired after the There is an ‘‘eSubscription’’ link on the review in the Commission’s Public baseline tariff filings have been made Web site that enables subscribers to Reference Room in Washington, DC. and the current FASTR configuration for receive e-mail notification when a There is an ‘‘eSubscription’’ link on the each company as of September 30, 2010, document is added to a subscribed Web site that enables subscribers to will be added to the Commission’s docket(s). For assistance with any FERC receive e-mail notification when a database as historical records. Once a Online service, please e-mail document is added to a subscribed baseline tariff filing has been made, [email protected], or call docket(s). For assistance with any FERC pipelines are no longer required to (866) 208–3676 (toll free). For TTY, call Online service, please e-mail submit records in FASTR format. (202) 502–8659. [email protected], or call However, companies that wish to Comment Date: 5 p.m. Eastern Time (866) 208–3676 (toll free). For TTY, call update their FASTR records for past on June 4, 2010. (202) 502–8659. Comment Date: 5 p.m. Eastern Time periods may submit an electronic Kimberly D. Bose, on May 21, 2010. version in the FASTR ASCII file format Secretary. as an attachment. Kimberly D. Bose, [FR Doc. 2010–12863 Filed 5–27–10; 8:45 am] [FR Doc. 2010–12860 Filed 5–27–10; 8:45 am] Secretary. BILLING CODE 6717–01–P BILLING CODE 6717–01–P [FR Doc. 2010–12854 Filed 5–27–10; 8:45 am] BILLING CODE 6717–01–P DEPARTMENT OF ENERGY DEPARTMENT OF ENERGY Federal Energy Regulatory DEPARTMENT OF ENERGY Federal Energy Regulatory Commission Commission Federal Energy Regulatory [Docket No. ER10–1281–000] Commission [Docket Nos. TS04–179–000; TS10–1–000] Hudson Transmission Partners, LLC; [Docket No. EL10–56–000] Cross-Sound Cable Company, LLC; Notice of Filing Western Electric Coordinating Council; Notice of Filing May 20, 2010. Notice of Institution of Proceeding and May 21, 2010. Take notice that on May 19, 2010, Refund Effective Date Take notice that on December 18, Hudson Transmission Partners, LLC May 20, 2010. 2009, Cross-Sound Cable Company, LLC filed an application requesting the On May 20, 2010, the Commission filed a motion notifying the Commission Commission to grant it a limited waiver issued an order that instituted a of certain changed circumstances and of PJM Interconnection, LLC, and time proceeding in Docket No. EL05–56–000, seeking confirmation that is still entitled to post deferred security under section pursuant to section 206 of the Federal to waiver of the standards of conduct 212.4(c) and Attachment O, section 6.5 Power Act (FPA), 16 U.S.C. 824e, requirements of Part 358. of the PJM Open Access Transmission concerning the spot market energy price Any person desiring to intervene or to Tariff, PJM OATT 212.4(c), Att. O 6.5 cap in the Western Electric Coordinating protest this filing must file in (the pro forma ISA). Council outside the California accordance with Rules 211 and 214 of Any person desiring to intervene or to Independent System Operator the Commission’s Rules of Practice and protest this filing must file in Corporation. Western Electric Procedure (18 CFR 385.211, 385.214). accordance with Rules 211 and 214 of Coordinating Council, 131 FERC ¶ Protests will be considered by the the Commission’s Rules of Practice and 61,145 (2010). Commission in determining the Procedure (18 CFR 385.211, 385.214). The refund effective date in Docket appropriate action to be taken, but will Protests will be considered by the No. EL10–56–000, established pursuant not serve to make protestants parties to Commission in determining the to section 206(b) of the FPA, will be the the proceeding. Any person wishing to appropriate action to be taken, but will date of publication of this notice in the become a party must file a notice of not serve to make protestants parties to Federal Register. intervention or motion to intervene, as the proceeding. Any person wishing to appropriate. Such notices, motions, or become a party must file a notice of Kimberly D. Bose, protests must be filed on or before the intervention or motion to intervene, as Secretary. comment date. Anyone filing a motion appropriate. Such notices, motions, or [FR Doc. 2010–12855 Filed 5–27–10; 8:45 am] to intervene or protest must serve a copy protests must be filed on or before the BILLING CODE 6717–01–P

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DEPARTMENT OF ENERGY To Know?’’ is available for viewing on pipeline, utility, or road rights-of-way. the FERC Web site (http:// Over 71 percent of the planned pipeline Federal Energy Regulatory www.ferc.gov). This fact sheet addresses route would cross public lands managed Commission a number of typically asked questions, by the Allegheny National Forest, the [Docket No. PF10–14–000] including the use of eminent domain Pennsylvania Bureau of Forestry, and and how to participate in the the Pennsylvania Game Commission. National Fuel Gas Supply Corporation; Commission’s proceedings. The EA Process Notice of Intent To Prepare an Summary of the Planned Project Environmental Assessment for the The National Environmental Policy Planned West to East—Overbeck to National Fuel plans to construct and Act (NEPA) requires the Commission to Leidy Project and Request for operate about 78.4 miles of 24-inch- take into account the environmental Comments on Environmental Issues diameter pipeline and related facilities impacts that could result from an action in Elk, Jefferson, Clearfield, Cameron, whenever it considers the issuance of a May 20, 2010. and Clinton Counties, Pennsylvania. Certificate of Public Convenience and The staff of the Federal Energy National Fuel would also build two Necessity. NEPA also requires us 2 to Regulatory Commission (FERC or compressor stations totally 25,000 discover and address concerns the Commission) will prepare an horsepower (hp) of compression and a public may have about proposals. This environmental assessment (EA) that will new meter station. The West to East— process is referred to as scoping. The discuss the environmental impacts of Overbeck to Leidy Project would main goal of the scoping process is to the West to East—Overbeck to Leidy provide about 425,000 dekatherms per focus the analysis in the EA on the Project involving construction and day (dth/d) of natural gas from the important environmental issues. By this operation of facilities by National Fuel Marcellus producing area to the Leidy, notice, the Commission requests public Gas Supply Corporation (National Fuel) Pennsylvania hub. According to comments on the scope of the issues to in Elk, Jefferson, Clearfield, Cameron, National Fuel, its project would enable address in the EA. All comments and Clinton Counties, Pennsylvania. National Fuel to provide firm received will be considered during the This EA will be used by the transportation services requested by preparation of the EA. Commission in its decision-making producers from new and existing In the EA we will discuss impacts that process to determine whether the producer interconnects in the Marcellus could occur as a result of the project is in the public convenience and Shale region in central Pennsylvania to construction and operation of the necessity. the interstate pipeline hub of Leidy at planned project under these general This notice announces the opening of Tamarack, Pennsylvania. The West to headings: the scoping process the Commission East—Overbeck to Leidy Project would • Geology and soils; will use to gather input from the public consist of the following facilities: • Blasting; and interested agencies on the project. • About 78.4 miles of 24-inch- • Land use (including public lands); Your input will help the Commission diameter pipeline; • Water resources, fisheries, and • staff determine what issues need to be The Elk Compressor Station in Elk wetlands; evaluated in the EA. Please note that the County, totaling about 7,000 hp of • Cultural resources; scoping period will close on June 21, compression; • Vegetation and wildlife, including • 2010. This is not your only public input The Millstone Compressor Station migratory birds; opportunity; please refer to the in Jefferson County, totaling about • Air quality and noise; Environmental Review Process flow 18,000 hp of compression; • Endangered and threatened species; • chart in Appendix 1. One new meter station at the Leidy and This notice is being sent to the Hub in Clinton County; • • Public safety. Commission’s current environmental Four mainline valve assemblies; We will also evaluate reasonable mailing list for this project. State and and • alternatives to the planned project or local government representatives are Access roads. portions of the project, and make The general location of the project asked to notify their constituents of this recommendations on how to lessen or facilities is shown in Appendix 2.1 planned project and encourage them to avoid impacts on the various resource comment on their areas of concern. Land Requirements for Construction areas. If you are a landowner receiving this Construction of the planned facilities Although no formal application has notice, you may be contacted by a been filed, we have already initiated our pipeline company representative about would disturb approximately 1,025 acres of land for the aboveground NEPA review under the Commission’s the acquisition of an easement to pre-filing process. The purpose of the construct, operate, and maintain the facilities and the pipeline. Following construction, approximately 425 acres pre-filing process is to encourage early planned facilities. The company would involvement of interested stakeholders seek to negotiate a mutually acceptable would be maintained for permanent operation of the project’s facilities; the and to identify and resolve issues before agreement. However, if the project is an application is filed with the FERC. approved by the Commission, that remaining acreage would be restored and allowed to revert to former uses. As part of our pre-filing review, we have approval conveys with it the right of begun to contact some federal and state eminent domain. Therefore, if easement About 97 percent of the planned pipeline route parallels existing agencies to discuss their involvement in negotiations fail to produce an the scoping process and the preparation agreement, the pipeline company could 1 The appendices referenced in this notice are not of the EA. See Appendix 1 for an initiate condemnation proceedings being printed in the Federal Register. Copies of overview of the Commission’s Pre-Filing where compensation would be appendices were sent to all those receiving this Environmental Review Process. determined in accordance with state notice in the mail and are available at http:// Our independent analysis of the law. www.ferc.gov using the link called ‘‘eLibrary’’ or from the Commission’s Public Reference Room, 888 issues will be presented in the EA. The A fact sheet prepared by the FERC First Street, NE., Washington, DC 20426, or call entitled ‘‘An Interstate Natural Gas (202) 502–8371. For instructions on connecting to 2 ‘‘We’’, ‘‘us’’, and ‘‘our’’ refer to the environmental Facility On My Land? What Do I Need eLibrary, refer to the last page of this notice. staff of the Commission’s Office of Energy Projects.

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EA will be placed in the public record Washington, DC on or before June 21, mailing list for public review and and, depending on the comments 2010. comment. If you would prefer to receive received during the scoping process, For your convenience, there are three a paper copy of the document instead of may be published and distributed to the methods you can use to submit your the CD version or would like to remove public. A comment period will be comments to the Commission. In all your name from the mailing list, please allotted if the EA is published for instances, please reference the project return the attached Information Request review. We will consider all comments docket number (PF10–14–000) with (Appendix 3). on the EA before we make our your submission. The Commission recommendations to the Commission. encourages electronic filing of Becoming an Intervenor To ensure your comments are comments and has expert eFiling staff considered, please carefully follow the available to assist you at (202) 502–8258 Once National Fuel files its instructions in the Public Participation or [email protected]. application with the Commission, you section beginning on page 5. (1) You may file your comments may want to become an ‘‘intervenor,’’ With this notice, we are asking electronically by using the Quick which is an official party to the agencies with jurisdiction and/or Comment feature, which is located at Commission’s proceeding. Intervenors special expertise with respect to http://www.ferc.gov under the link play a more formal role in the process environmental issues to formally called ‘‘Documents and Filings’’. A and are able to file briefs, appear at cooperate with us in the preparation of Quick Comment is an easy method for hearings, and be heard by the courts if the EA. These agencies may choose to interested persons to submit text-only they choose to appeal the Commission’s participate once they have evaluated the comments on a project; final ruling. An intervenor formally proposal relative to their (2) You may file your comments participates in the proceeding by filing responsibilities. Agencies that would electronically by using the ‘‘eFiling’’ a request to intervene. Instructions for feature that is listed under the like to request cooperating agency status becoming an intervenor are included in ‘‘Documents and Filings’’ link. eFiling should follow the instructions for filing the User’s Guide under the ‘‘e-filing’’ involves preparing your submission in comments provided under the Public link on the Commission’s Web site. Participation section of this notice. the same manner as you would if filing on paper, and then saving the file on Please note that you may not request Currently, the Army Corps of Engineers intervenor status at this time. You must and the Allegheny National Forest have your computer’s hard drive. You will attach that file to your submission. New wait until a formal application for the expressed their intention to possibly project is filed with the Commission. participate as a cooperating agency in eFiling users must first create an the preparation of the EA to satisfy their account by clicking on the links called Additional Information NEPA responsibilities related to this ‘‘Sign up’’ or ‘‘eRegister’’. You will be project. asked to select the type of filing you are Additional information about the making. A comment on a particular project is available from the Consultations Under Section 106 of the project is considered a ‘‘Comment on a Commission’s Office of External Affairs, National Historic Preservation Act Filing’’; or at (866) 208–FERC, or on the FERC Web In accordance with the Advisory (3) You may file a paper copy of your site (http://www.ferc.gov) using the Council on Historic Preservation’s comments at the following address: eLibrary link. Click on the eLibrary link, implementing regulations for the section Kimberly D. Bose, Secretary, Federal click on ‘‘General Search’’ and enter the 106 process, we are using this notice to Energy Regulatory Commission, 888 docket number, excluding the last three solicit the views of the public on the First Street, NE., Room 1A, Washington, digits in the Docket Number field (i.e., project’s potential effects on historic DC 20426. PF10–14). Be sure you have selected an 3 properties. We will document our Environmental Mailing List appropriate date range. For assistance, findings on the impacts on cultural please contact FERC Online Support at resources and summarize the status of The environmental mailing list includes federal, state, and local [email protected] or toll free consultations under section 106 of the at (866) 208–3676, or for TTY, contact National Historic Preservation Act in government representatives and (202) 502–8659. The eLibrary link also our EA. agencies; elected officials; environmental and public interest provides access to the texts of formal Public Participation groups; Native American Tribes; other documents issued by the Commission, You can make a difference by interested parties; and local libraries such as orders, notices, and providing us with your specific and newspapers. This list also includes rulemakings. comments or concerns about the project. all affected landowners (as defined in In addition, the Commission offers a Your comments should focus on the the Commission’s regulations) who are free service called eSubscription which potential environmental effects, potential right-of-way grantors, whose allows you to keep track of all formal reasonable alternatives, and measures to property may be used temporarily for issuances and submittals in specific project purposes, or who own homes avoid or lessen environmental impacts. dockets. This can reduce the amount of within certain distances of aboveground The more specific your comments, the time you spend researching proceedings more useful they will be. To ensure that facilities, and anyone who submits comments on the project. We will by automatically providing you with your comments are timely and properly notification of these filings, document recorded, please send your comments so update the environmental mailing list as summaries and direct links to the that they will be received in the analysis proceeds to ensure that we send the information related to this documents. Go to http://www.ferc.gov/ 3 The Advisory Council on Historic Preservation’s environmental review to all individuals, esubscribenow.htm. regulations are at Title 36, Code of Federal organizations, and government entities Finally, public meetings or site visits Regulations, Part 800. Historic properties are interested in and/or potentially affected will be posted on the Commission’s defined in those regulations as any prehistoric or historic district, site, building, structure, or object by the planned project. calendar located at http://www.ferc.gov/ included in or eligible for inclusion in the National If the EA is published for distribution, Register for Historic Places. copies will be sent to the environmental

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EventCalendar/EventsList.aspx along Commission proposes to draft in contact (202) 502–8659. Although the with other related information. consultation with certain parties listed Commission strongly encourages below. The executed programmatic electronic filing, documents may also be Kimberly D. Bose, agreement would be incorporated into paper-filed. To paper-file, mail an Secretary. any Order issuing a license. original and eight copies to: Kimberly D. [FR Doc. 2010–12862 Filed 5–27–10; 8:45 am] South Carolina Electric & Gas Bose, Secretary, Federal Energy BILLING CODE 6717–01–P Company, as licensee for Saluda Regulatory Commission, 888 First Hydroelectric Project No. 516, the Street, NE., Washington, DC 20426. Catawba Indian Nation, and the Eastern DEPARTMENT OF ENERGY If no such motions are filed, the Band of Cherokee Indians have restricted service list will be effective at Federal Energy Regulatory expressed an interest in this preceding the end of the 15 day period. Otherwise, Commission and are invited to participate in a further notice will be issued ruling on consultations to develop the any motion or motions filed within the [Project No. 516–459–South Carolina] programmatic agreement. 15 day period. For purposes of commenting on the South Carolina Electric & Gas programmatic agreement, we propose to Kimberly D. Bose, Company Saluda Hydroelectric restrict the service list for the Secretary. Project; Notice of Proposed Restricted aforementioned project as follows: [FR Doc. 2010–12857 Filed 5–27–10; 8:45 am] Service List for a Programmatic John Eddins or Representative, Advisory BILLING CODE 6717–01–P Agreement for Managing Properties Council on Historic Preservation, The Included In or Eligible for Inclusion In Old Post Office Building, Suite 803, the National Register of Historic Places 1100 Pennsylvania Avenue, NW., DEPARTMENT OF ENERGY May 20, 2010. Washington, DC 20004. Rebekah Dobrasko or Representative, Federal Energy Regulatory Rule 2010 of the Federal Energy Commission Regulatory Commission’s (Commission) Review and Compliance Coordinator, Rules of Practice and Procedure Archives & History Center, 8301 provides that, to eliminate unnecessary Parklane Road, Columbia, SC 29223. [Project No. 516–459] Tyler Howe or Representative, Eastern expense or improve administrative South Carolina Electric and Gas efficiency, the Secretary may establish a Band of Cherokee Indians, Qualla Boundary, P.O. Box 455, Cherokee, Company; Saluda Hydroelectric restricted service list for a particular Project; Notice of Teleconference With 1 NC 28719. phase or issue in a proceeding. The the National Marine Fisheries Service restricted service list should contain the Mr. William R. Argentieri or Representative, South Carolina Regarding Preparation of a Biological names of persons on the service list Assessment for the Saluda Project who, in the judgment of the decisional Electric & Gas Company, 111 Research authority establishing the list, are active Drive, Columbia, South Carolina May 20, 2010. participants with respect to the phase or 29203. On June 16, 2010, there will be a issue in the proceeding for which the Dr. Wenonah G. Haire or Representative, teleconference concerning the above list is established. Catawba Indian Nation THPO, 1536 referenced proceeding, initiated from The Commission staff is consulting Tom Stevens Rd., Rock Hill, SC Federal Energy Regulatory Commission with the South Carolina State Historic 29730. (FERC) Headquarters, commencing at 2 Preservation Officer (hereinafter, South Any person on the official service list p.m. (Eastern Standard Time [EST]) and Carolina SHPO), and the Advisory for the above-captioned proceeding may concluding by 4 p.m. EST. Council on Historic Preservation request inclusion on the restricted (hereinafter, Council) pursuant to the service list, or may request that a The purpose of the meeting is to gain Council’s regulations, 36 CFR Part 800, restricted service list not be established, a better understanding of why and what implementing section 106 of the by filing a motion to that effect within is being requested by the National National Historic Preservation Act, as 15 days of this notice date. In a request Marine Fisheries Service (NMFS) amended (16 U.S.C. section 470 f), to for inclusion, please identify the regarding their request for FERC to prepare and execute a programmatic reason(s) why there is an interest to be prepare a biological assessment for agreement for managing properties included. Also please identify any shortnose sturgeon for the Saluda included in, or eligible for inclusion in, concerns about historic properties, Hydroelectric Project. The South the National Register of Historic Places including Traditional Cultural Carolina Electric and Gas Company will at the Saluda Hydroelectric Project No. Properties. If historic properties are to also participate in the teleconference. 516–459. be identified within the motion, please All local, state, and federal agencies, The programmatic agreement, when use a separate page, and label it NON- Indian tribes, and other interested executed by the Commission and the PUBLIC Information. parties are invited to listen by South Carolina SHPO would satisfy the Any such motions may be filed telephone. The FERC contact for the Commission’s section 106 electronically via the Internet. See 18 Saluda Hydroelectric Project is Lee responsibilities for all individual CFR385.2001(a)(1)(iii) and the Emery. Please call Lee Emery at (202) undertakings carried out in accordance instructions on the Commission’s Web 502–8379 by 4 p.m. EST, June 11, 2010, with the license until the license expires site (http://www.ferc.gov/docs-filing/ or by e-mail at [email protected], to or is terminated (36 CFR 800.13[e]). The ferconline.asp) under the ‘‘eFiling’’ link. receive specific instructions on how to Commission’s responsibilities pursuant For a simpler method of submitting text participate in the teleconference. to section 106 for the Saluda Project only comments, click on ‘‘Quick would be fulfilled through the Comment.’’ For assistance, please Kimberly D. Bose, programmatic agreement, which the contact FERC Online Support at Secretary. [email protected]; call toll- [FR Doc. 2010–12856 Filed 5–27–10; 8:45 am] 1 18 CFR section 385.2010. free at (866) 208–3676; or, for TTY, BILLING CODE 6717–01–P

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ENVIRONMENTAL PROTECTION Plasma Mass Spectrometry (ICP–MS) with December, 2008. Provisions concerning AGENCY Heated Ultrasonic Nitric and Hydrochloric modification of such methods by users Acid Filter Extraction.’’ are specified under Section 2.8 [FRL–9156–1] In this method, total suspended (Modifications of Methods by Users) of Office of Research and Development; particulate matter (TSP) is collected on Appendix C to 40 CFR Part 58. Ambient Air Monitoring Reference and glass fiber filters according to 40 CFR Consistent or repeated Equivalent Methods: Designation of Appendix B to part 50, EPA Reference noncompliance with the method One New Equivalent Method Method for the Determination of procedure/SOP should be reported to: Suspended Particulate Matter in the Director, Human Exposure and AGENCY: Environmental Protection Atmosphere (High-Volume Method), Atmospheric Sciences Division (MD– Agency. extracted with a solution of nitric and E205–01), National Exposure Research ACTION: Notice of the designation of one hydrochloric acids, heated to 80 °C and Laboratory, U.S. Environmental new equivalent method for monitoring sonicated for one hour, and brought to Protection Agency, Research Triangle ambient air quality. a final volume of 40 mL. The lead Park, North Carolina 27711. content of the sample extract is Designation of this new equivalent SUMMARY: Notice is hereby given that analyzed by Inductively Coupled method is intended to assist the States the Environmental Protection Agency Plasma-Mass Spectrometry (ICP–MS) in establishing and operating their air (EPA) has designated, in accordance based on EPA SW–846 Method 6020A. quality surveillance systems under 40 with 40 CFR Part 53, one new The application for an equivalent CFR Part 58. Questions concerning the equivalent method for measuring method determination for this method technical aspects of the method should concentrations of lead (Pb) in total was submitted by the Office of Air be directed to the applicant. suspended particulate matter (TSP) in Quality Planning and Standards, U.S. Dated: May 7, 2010. the ambient air. Environmental Protection Agency, Jewel F. Morris, FOR FURTHER INFORMATION CONTACT: Research Triangle Park, NC 27711 and Surender Kaushik, Human Exposure was received by the Office of Research Acting Director, National Exposure Research and Atmospheric Sciences Division and Development on October 29, 2009. Laboratory. (MD–D205–03), National Exposure The analytical procedure of this [FR Doc. 2010–12912 Filed 5–27–10; 8:45 am] Research Laboratory, U.S. EPA, method has been tested in accordance BILLING CODE 6560–50–P Research Triangle Park, North Carolina with the applicable test procedures 27711. Phone: (919) 541–5691, e-mail: specified in 40 CFR Part 53, as amended ENVIRONMENTAL PROTECTION [email protected]. on November 12, 2008. After reviewing the results of those tests and other AGENCY SUPPLEMENTARY INFORMATION: In information submitted in the [ER–FRL–8990–6] accordance with regulations at 40 CFR application, EPA has determined, in Part 53, the EPA evaluates various accordance with Part 53, that this Environmental Impacts Statements; methods for monitoring the method should be designated as an Notice of Availability concentrations of those ambient air equivalent method for lead. The pollutants for which EPA has information in the application will be Responsible Agency: Office of Federal established National Ambient Air kept on file, either at EPA’s National Activities, General Information (202) Quality Standards (NAAQSs) as set Exposure Research Laboratory, Research 564–1399 or http://www.epa.gov/ forth in 40 CFR Part 50. Monitoring Triangle Park, North Carolina 27711 or compliance/nepa/. methods that are determined to meet in an approved archive storage facility, Weekly receipt of Environmental Impact specific requirements for adequacy are and will be available for inspection Statements designated by the EPA as either (with advance notice) to the extent reference methods or equivalent Filed 05/17/2010 Through 05/21/2010 consistent with 40 CFR Part 2 (EPA’s Pursuant to 40 CFR 1506.9. methods (as applicable), thereby regulations implementing the Freedom permitting their use under 40 CFR Part of Information Act). Notice: In accordance with Section 58 by States and other agencies for As a designated equivalent method, 309(a) of the Clean Air Act, EPA is determining compliance with the this method is acceptable for use by required to make its comments on EISs NAAQSs. States and other air monitoring agencies issued by other Federal agencies public. The EPA hereby announces the under the requirements of 40 CFR Part Historically, EPA has met this mandate designation of one new equivalent 58, Ambient Air Quality Surveillance. by publishing weekly notices of method for measuring Pb in TSP in the For such purposes, the method must be availability of EPA comments, which ambient air. This designation is made used in strict accordance with the includes a brief summary of EPA’s under the provisions of 40 CFR Part 53, complete operating procedure (SOP) comment letters, in the Federal as amended on November 12, 2008 (73 associated with the method and subject Register. Since February 2008, EPA has FR 67057–67059). to any specifications and limitations been including its comment letters on The new equivalent method for Pb is specified in the procedure. EISs on its website at: http://www.epa. a manual method that uses the sampling Use of the method should also be in gov/compliance/nepa/eisdata.html. procedure specified in the Reference general accordance with the guidance Including the entire EIS comment letters Method for the Determination of and recommendations of applicable on the website satisfies the Section Suspended Particulate Matter in the sections of the ‘‘Quality Assurance 309(a) requirement to make EPA’s Atmosphere (High-Volume Method), 40 Handbook for Air Pollution comments on EISs available to the CFR Part 50, Appendix B, with an Measurement Systems, Volume I,’’ EPA/ public. Accordingly, on March 31, 2010, alternative extraction and analytical 600/R–94/038a and ‘‘Quality Assurance EPA discontinued the publication of the procedure. The method is identified as Handbook for Air Pollution notice of availability of EPA comments follows: Measurement Systems, Volume II, in the Federal Register. EQL–0510–191, ‘‘Determination of Lead Ambient Air Quality Monitoring EIS No. 20100184, Draft EIS, NPS, 00, Concentration in TSP by Inductively Coupled Program’’ EPA–454/B–08–003, Brucellosis Remote Vaccination

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Program for Bison Project, EIS No. 20100192, Final EIS, FHWA, Laurie McGilray 301–713–3155 Ext. Implementation, Yellowstone WA, East Lake Sammamish Master 158. National Park, ID, MT and WY, Plan Trail, Design and Construct an EIS No. 20100199, Draft EIS, USMC, 00, Comment Period Ends: 07/26/2010, Alternative Non-Motorized East Coast Basing of the F–35B Contact: Rick Wallen 307–344–2207 Transportation and Multi-Use Project, Construction, Demolition EIS No. 20100185, Draft EIS, USACE, Recreational Trail, Funding and US and/or Modification Airfield Facilities CA, West Sacramento Levee Army COE Section 404 Permit, King and Infrastructure, SC and NC, Improvements Program, To Protect County, WA, Wait Period Ends: 06/ Comment Period Ends: 07/12/2010, Human Health and Safety and Prevent 28/2010, Contact: Pete Jilek 360–753– Contact: Linda Blount 757–341–0491. 9550. Adverse Effect on Property and its EIS No. 20100200, Final EIS, WAPA, EIS No. 20100193, Final EIS, FRA, CA, Economy, 408 Permission, Yolo and SD, Deer Creek Station Energy Facility Adoption—March 2004 Transbay Solano Counties, CA, Comment Project, Proposed 300-megawatt (MW) Period Ends: 07/12/2010, Contact: Terminal/Caltrain Downtown Extension/Redevelopment Program Natural Gas-Fired Generation Facility, John Suazo 916–557–6719. Brookings County, SD, Wait Period EIS No. 20100186, Draft EIS, FHWA, (Transbay Program) Phase 1, San Francisco, San Mateo and Santa Clara, Ends: 06/28/2010, Contact: Matt WA, WA–520 Bridge Replacement Marsh 406–247–7395. and HOV Program, To Build the New CA, Wait Period Ends: 06/28/2010, Pontoon Construction Facility, Gray Contact: Jerome Wiggins 415–744– Dated: May 25, 2010. Harbor and Pierce Counties, WA, 3115 US DOT/FRA has adopted the Robert W. Hargrove, Comment Period Ends: 07/12/2010, FTA’s FEIS #20040148, filed 03/26/ Director, NEPA Compliance Division, Office Contact: Allison Hanson 206–382– 2004. FRA was not a Cooperating of Federal Activities. 5279. Agency for the above FEIS. [FR Doc. 2010–12918 Filed 5–27–10; 8:45 am] EIS No. 20100187, Draft EIS, BPA, WA, Recirculation of the document is BILLING CODE 6560–50–P Whistling Ridge Energy Project, necessary under Section 1506.3(b) of Construction and Operation of a 75- the CEQ Regulations. EIS No. 20100194, Draft EIS, USFS, CA, megawatt (MW) Wind Turbine Hi-Grouse Project, Proposes to Treat Facility, City of White Salmon, FARM CREDIT ADMINISTRATION Ponderosa Pine and Mixed Conifer Skamania County, WA, Comment Stands to Improve Long-Term Forest Sunshine Act Meeting Period Ends: 07/19/2010, Contact: Health and Reduce Fuels within the Andrew M. Montano 503–230–4145 . Goosenest Adaptive Management AGENCY: Farm Credit Administration. EIS No. 20100188, Final EIS, BLM, MT, Area, Goosenest Ranger District, Indian Creek Mine Expansion, SUMMARY: Pursuant to the Government Klamath National Forest, Siskiyou Co, in the Sunshine Act (5 U.S.C. Proposed Mine Expansion would CA,Comment Period Ends: 07/12/ include Quarry Areas, Mine Facilities, 552b(e)(3)), the Farm Credit 2010, Contact: Wendy Dosrowalski Administration gave notice on May 24, Ore Storage Sites, Soil Salvage 530–398–4391. Stockpiles, Haul Roads, and 2010 (75 FR 28806) of the regular EIS No. 20100195, Final EIS, BR, CA, meeting of the Farm Credit Overburden Disposal Areas, Issuing Cachuma Lake Resource Management Operating Permit #00105 and Plan of Administration Board (Board) Plan, Implementation, Cachuma Lake, scheduled for June 10, 2010. This notice Operation #MTM78300, Broadwater Santa Barbara County, CA, Wait County, MT, Wait Period Ends: 06/28/ is to amend the agenda by adding an Period Ends: 06/28/2010, Contact: item to the open session of that meeting. 2010, Contact: David Williams 406– Jack Collins 559–349=4544. 533–7655 . EIS No. 20100196, Draft EIS, NPS, FL, FOR FURTHER INFORMATION CONTACT: EIS No. 20100189, Final EIS, BLM, AK, Everglades National Park Tamiami Roland E. Smith, Secretary to the Farm LEGISLATIVE—Glacier Bay National Trail Modifications: Next Steps Credit Administration Board, (703) 883– Park Project, Authorize Harvest of Project, To Restore More Natural 4025, TTY (703) 883–4056. Glaucous-Winged Gull Eggs by the Water Flow to Everglades National ADDRESSES: Farm Credit Huna Tlingit,Implementation, AK, Parks and Florida Bay, FL, Comment Administration, 1501 Farm Credit Drive, Wait Period Ends: 06/28/2010, Period Ends: 07/19/2010, Contact: McLean, Virginia 22102–5090. Contact: Cherry Payne 907–697–2230. Dan Kimball 305–242–7712. EIS No. 20100190, Final EIS, USFS, OR, EIS No. 20100197, Final EIS, USFS, WI, SUPPLEMENTARY INFORMATION: Parts of Westside Rangeland Analysis Project, Honey Creek-Padus Project, Proposes this meeting of the Board will be open Proposal to Allocate Forage for to Harvest Timber, Regenerate Stands, to the public (limited space available), Commercial Livestock Grazing on Six Plant and Protect Tree Seedlings and and parts of this meeting will be closed Alternatives, Mud and Tope Creeks, Manage Access on Approximately to the public. The agenda for June 10, Wallowa Valley Ranger District, 6,702 Acres, Lakewood-Laona Ranger 2010, is amended by adding an item to Wallowa-Whitman National Forest, District, Chequamegon-National the open session to read as follows: Wallowa County, OR, Wait Period Forest, Forest County, WI, Wait Period Open Session Ends: 06/28/2010, Contact: Alicia Ends: 06/28/2010, Contact: Marilee Glassford 541–426–5689. Houlter 715–276–6333. C. Reports EIS No. 20100191, Draft EIS, FTA, AK, EIS No. 20100198, Draft EIS, NOAA, WI, • Young, Beginning, and Small Hatcher Pass Recreation Area Access Lake Superior National Estuarine Farmer Mission Performance—2009 Trails, and Transit Facilities, To Research Reserves to be known as the Results. Develop Transportation Access and Lake Superior Reserve Proposed Transit-Related Infrastructure, Designation, To Provide Greater Dated: May 26, 2010. Northern and Southern Areas, Protection, Research and Education Roland E. Smith, Hatcher Pass, AK, Comment Period Opportunities to 16,697 Acres of the Secretary, Farm Credit Administration Board. Ends: 07/12/2010, Contact: Erin Green St. Louis River Estuary, WI, Comment [FR Doc. 2010–13102 Filed 5–26–10; 4:15 pm] 206–220–7430. Period Ends: 07/12/2010, Contact: BILLING CODE 6705–01–P

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FEDERAL COMMUNICATIONS OMB Number: 3060–0180. Rico Telephone Company, Inc. (PRTC) COMMISSION Title: Section 73.1610, Equipment requesting that the Commission Tests. reconsider its decision declining to Notice of Public Information Collection Form Number: N/A. establish a new universal service high- Being Reviewed by the Federal Type of Review: Extension of a cost support mechanism for non-rural Communications Commission for currently approved collection. insular carriers. PRTC says the Extension Under Delegated Authority, Respondents: Business or other for– Commission should expeditiously Comments Requested profit entities; Not–for–profit reconsider its decision and adopt an institutions insular mechanism that will provide May 25, 2010. Number of Respondents and explicit universal service loop support SUMMARY: The Federal Communications Responses: 500 respondents and 500 to address its elevated costs to deploy Commission, as part of its continuing responses. wireline infrastructure. effort to reduce paperwork burden Estimated Hours per Response: 0.5 DATES: Interested parties may file invites the general public and other hours. comments on the petition for Federal agencies to take this Frequency of Response: On occasion reconsideration no later than June 14, opportunity to comment on the reporting requirement. 2010. Reply comments may be filed no following information collection, as Total Annual Burden: 250 hours. later than June 22, 2010. required by the Paperwork Reduction Total Annual Cost: None. Act (PRA) of 1995, 44 U.S.C. 3501 – Obligation to Respond: Required to ADDRESSES: You may submit comments, 3520. Comments are requested obtain or retain benefits. The statutory identified by WC Docket No. 05–337, by concerning: (a) whether the proposed authority for this information collection any of the following methods: • Federal eRulemaking Portal: http:// collection of information is necessary is contained in Section 154(i) of the www.regulations.gov. Follow the for the proper performance of the Communications Act of 1934, as amended. instructions for submitting comments. functions of the Commission, including • Federal Communications Nature and Extend of Confidentiality: whether the information shall have Commission’s Web Site: http://fjallfoss. There is no need for confidentiality with practical utility; (b) the accuracy of the fcc.gov/ecfs2/. Follow the instructions Commission’s burden estimate; (c) ways this collection of information. Privacy Impact Assessment: No for submitting comments. to enhance the quality, utility, and • People with Disabilities: Contact the impact(s). clarity of the information collected; (d) FCC to request reasonable ways to minimize the burden of the Needs and Uses: 47 CFR 73.1610 requires a permittee of a new broadcast accommodations (accessible format collection of information on the documents, sign language interpreters, respondents, including the use of station to notify the FCC of its plans to conduct equipment tests for the purpose CART, etc.) by e-mail: [email protected] automated collection techniques or or phone: (202) 418–0530 or TTY: (202) other forms of information technology, of making adjustments and measurements as may be necessary to 418–0432. and (e) ways to further reduce the For detailed instructions for assure compliance with the terms of the information collection burden for small submitting comments and additional construction permit and applicable business concerns with fewer than 25 information on the rulemaking process, engineering standards. The data is used employees. see the SUPPLEMENTARY INFORMATION by FCC staff to assure compliance with The FCC may not conduct or sponsor section of this document. a collection of information unless it the terms of the construction permit and applicable engineering standards. FOR FURTHER INFORMATION CONTACT: displays a currently valid control Katie King or Ted Burmeister, number. No person shall be subject to Federal Communications Commission. Telecommunications Access Policy any penalty for failing to comply with Marlene H. Dortch, Division, Wireline Competition Bureau, a collection of information subject to the (202) 418–7400, TTY: (202) 418–0484. Paperwork Reduction Act (PRA) that Secretary, SUPPLEMENTARY INFORMATION: does not display a currently valid OMB Office of the Secretary, In a public control number. Office of Managing Director. notice in this proceeding released on May 21, 2010, the Wireline Competition DATES: Written Paperwork Reduction [FR Doc. 2010–12907 Filed 5–27–10 8:45 am] Bureau invites interested parties to Act (PRA) comments should be BILLING CODE 6712–01–S comment on a petition filed by Puerto submitted on or before July 27, 2010. If Rico Telephone Company, Inc. (PRTC) you anticipate that you will be requesting that the Commission FEDERAL COMMUNICATIONS submitting PRA comments, but find it reconsider its decision declining to COMMISSION difficult to do so within the period of establish a new universal service high- time allowed by this notice, you should [WC Docket No. 05–337; DA 10–910] cost support mechanism for non-rural advise the FCC contact listed below as insular carriers. In an order in WC soon as possible. Comment Sought on the Puerto Rico Docket No. 05–337, CC Docket No. 96– ADDRESSES: Direct all PRA comments to Telephone Company, Inc. Petition for 45, and WC Docket No. 03–109 (75 FR Nicholas A. Fraser, Office of Reconsideration of the Commission’s 25113, May 7, 2010), the Commission Management and Budget, via fax at 202– Universal Service High-Cost Insular concluded that dramatic increases in 395–5167 or via email to Support Order telephone subscribership in Puerto Rico [email protected] and AGENCY: Federal Communications over the last several years made it to the Federal Communications Commission. unnecessary to adopt a new high-cost Commission via email to [email protected] support mechanism for non-rural and [email protected]. ACTION: Notice; solicitation of comments. insular carriers as proposed by PRTC. FOR FURTHER INFORMATION CONTACT: For Pursuant to §§ 1.415 and 1.419 of the additional information, contact Cathy SUMMARY: In this document, the Commission’s rules, 47 CFR 1.415, Williams on (202) 418–2918. Wireline Competition Bureau seeks 1.419, interested parties may file SUPPLEMENTARY INFORMATION: comment on a petition filed by Puerto comments and reply comments on or

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before the dates indicated on the first People with Disabilities: To request interested person may submit written page of this document. Comments may materials in accessible formats for comments concerning the alteration of be filed using: (1) The Commission’s people with disabilities (Braille, large this system of records on or before June Electronic Comment Filing System print, electronic files, audio format), 28, 2010. The Office of Management and (ECFS), (2) the Federal Government’s send an e-mail to [email protected] or call Budget (OMB), which has oversight eRulemaking Portal, or (3) by filing the Consumer & Governmental Affairs responsibility under the Privacy Act to paper copies. See Electronic Filing of Bureau at (202) 418–0530 (voice) or review the system of records, may Documents in Rulemaking Proceedings, (202) 418–0432 (TTY). Contact the FCC submit comments on or before July 7, 63 FR 24121, May 1, 1998. to request reasonable accommodations 2010. The proposed altered system of • Electronic Filers: Comments may be for filing comments (accessible format records will become effective on July 7, filed electronically using the Internet by documents, sign language interpreters, 2010 unless the FCC receives comments accessing the ECFS: http://www.fcc.gov/ CART, etc.) by e-mail: [email protected]; that require a contrary determination. cgb/ecfs/ or the Federal eRulemaking phone: (202) 418–0530 or (202) 418– The Commission will publish a Portal: http://www.regulations.gov. 0432 (TTY). document in the Federal Register Filers should follow the instructions Filings and comments are also notifying the public if any changes are provided on the Web site for submitting available for public inspection and necessary. As required by 5 U.S.C. comments. copying during regular business hours 552a(r) of the Privacy Act, the FCC is • Paper Filers: Parties who choose to at the FCC Reference Information submitting reports on this proposed file by paper must file an original and Center, Portals II, 445 12th Street, SW., altered system to OMB and to both four copies of each filing. If more than Room CY–A257, Washington, DC 20554. Houses of Congress. one docket or rulemaking number Copies may also be purchased from the ADDRESSES: Address comments to Leslie appears in the caption of this Commission’s duplicating contractor, F. Smith, Privacy Analyst, Performance proceeding, filers must submit two BCPI, 445 12th Street, SW., Room CY– Evaluation and Records Management additional copies for each additional B402, Washington, DC 20554. (PERM), Room 1–C216, Federal docket or rulemaking number. Customers may contact BCPI through its Communications Commission (FCC), Filings can be sent by hand or Web site: www.bcpiweb.com, by e-mail 445 12th Street, SW., Washington, DC messenger delivery, by commercial at [email protected], by telephone at 20554, (202) 418–0217, or via the overnight courier, or by first-class or (202) 488–5300 or (800) 378–3160 Internet at [email protected]. overnight U.S. Postal Service mail (voice), (202) 488–5562 (TTY), or by FOR FURTHER INFORMATION CONTACT: (although we continue to experience facsimile at (202) 488–5563. Contact Leslie F. Smith, Performance delays in receiving U.S. Postal Service Jennifer K. McKee, Evaluation and Records Management mail). All filings must be addressed to Acting Division Chief, Telecommunications (PERM), Room 1–C216, Federal the Commission’s Secretary, Office of Access Policy Division, Federal Communications Commission, 445 12th the Secretary, Federal Communications Communications Commission. Street, SW., Washington, DC 20554, Commission. [FR Doc. 2010–12932 Filed 5–27–10; 8:45 am] (202) 418–0217 or via the Internet at Æ All hand-delivered or messenger- BILLING CODE 6712–01–P [email protected]. delivered paper filings for the SUPPLEMENTARY INFORMATION: As Commission’s Secretary must be required by the Privacy Act of 1974, as delivered to FCC Headquarters at 445 FEDERAL COMMUNICATIONS amended, 5 U.S.C. 552a(e)(4) and 12th St., SW., Room TW–A325, COMMISSION (e)(11), this document sets forth notice Washington, DC 20554. The filing hours of the proposed alteration of one system are 8 a.m. to 7 p.m. All hand deliveries Privacy Act System of Records of records maintained by the FCC, must be held together with rubber bands AGENCY: Federal Communications revision of one routine use, and or fasteners. Any envelopes must be Commission (FCC or Commission). addition of one new routine use. The disposed of before entering the building. ACTION: FCC previously gave complete notice of Æ Notice; one altered Privacy Act Commercial overnight mail (other system of records; revision of one the system of records (FCC/WTB–7, than U.S. Postal Service Express Mail routine use; and addition of one new ‘‘Remedy Action Request System and Priority Mail) must be sent to 9300 routine use. (RARS)’’ covered under this Notice by East Hampton Drive, Capitol Heights, publication in the Federal Register on MD 20743. SUMMARY: Pursuant to subsection (e)(4) April 5, 2006 (71 FR 17234, 17273). This Æ U.S. Postal Service first-class, of the Privacy Act of 1974, as amended notice is a summary of the more Express, and Priority mail should be (‘‘Privacy Act’’), 5 U.S.C. 552a, the FCC detailed information about the proposed addressed to 445 12th Street, SW., proposes to alter one system of records, altered system of records, which may be Washington, DC 20554. FCC/WTB–7, ‘‘Remedy Action Request viewed at the location given above in In addition, one copy of each System (RARS).’’ The FCC will alter the the ADDRESSES section. The purposes for pleading must be sent to each of the security classification; categories of altering FCC/WTB–7, ‘‘Remedy Action following: individuals; the categories of records; Request System (RARS),’’ are to revise • The Commission’s duplicating the purposes for which the information the security classification; to revise the contractor, Best Copy and Printing, Inc, is maintained; one routine use (and add categories of individuals; to revise the 445 12th Street, SW., Room CY–B402, a new routine use); the storage, categories of records; to revise the Washington, DC 20554; Web site: retrievability, access, safeguard, and purposes for which the information is http://www.bcpiweb.com; phone: 1– retention and disposal procedures; the maintained; to revise one routine use 800–378–3160; and record source categories; and make and add a new routine use; to revise the • Charles Tyler, Telecommunications other edits and revisions as necessary to procedures for the storage, retrieval, Access Policy Division, Wireline comply with the requirements of the access, safeguards, and retention and Competition Bureau, 445 12th Street, Privacy Act. disposal of information; to revise the SW., Room 5–A452, Washington, DC DATES: In accordance with subsections record source categories; and to make 20554; e-mail: [email protected]. (e)(4) and (e)(11) of the Privacy Act, any other edits and revisions as necessary to

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update the information and to comply public inspection after redaction of records in the system, for clarity and to with the requirements of the Privacy information that could identify the add that the electronic data, files, and Act. correspondent, i.e., name, telephone records may be retrieved by searching The FCC will achieve these purposes number, ITIN, and e-mail address. electronically using a variety of by altering this system of records notice Limited public access to certain records parameters including the requester’s (SORN) with these changes: may be available via the Internet at: name, entity name, licensee, applicant Revision of the language explaining https://esupport.fcc.gov/request.htm. or unlicensed individual, call sign, file the Security Classification, for clarity This information includes the status of number, problem type, FRN, ITIN, e- and to add that the FCC’s Security request, request ID number, and the mail address, and/or subject matter; Operations Center (SOC) has not agent’s number who took the call or Revision of the language regarding the assigned a security classification to this electronic request for support. Public policies and practices for retrieving the system of records; users who have contacted FCC records in the system, for clarity and to Revision of the language regarding the personnel via telephone, e-mail, or add that the electronic data, files, and categories of individuals covered by the electronic submission may access the records may be retrieved by searching system, for clarity and to add that the system to retrieve a status on the ticket electronically using a variety of categories of individuals in the RARS assigned to their request. They will be parameters including the requester’s system include individuals who request given this ticket/request number name, entity name, licensee, applicant help using the FCC’s licensing systems generated by the Remedy Action or unlicensed individual, call sign, file and related Commission research tools, Request System (RARS) upon number, problem type, FRN, ITIN, information systems, and electronic submission of a request. This number e-mail address, and/or subject matter; databases, i.e., Integrated Spectrum may be entered into the appropriate Revision of the language regarding the Auction Systems (ISAS), Antenna field on the FCC Web site to check the policies and practices for accessing and Registration System (ARS), and status of the ticket. Only the status of safeguarding the records in the system, Commission Registration System that ticket will be released to the public for clarity and to add that the (CORES), etc., and other subsystems by entering the ticket number—no information in the RARS information included in, or as part of, these systems, personal or confidential information is system’s electronic documents, files, etc.; available to the public; and records is housed in the FCC’s Revision of the language regarding the Addition of a new Routine Use (6) to computer network databases. Access to categories of records in the system, for comply with OMB Memorandum M–07– the information in these databases is clarity and to add that the categories of 16 (May 22, 2007) governing ‘‘breach restricted to authorized WTB records in the RARS system include (1) notifications’’: supervisors, staff, and contractors in requests for assistance by the requester’s Routine Use (6) Breach Notification— WTB and to staff and contractors in the first name, last name, telephone number allows disclosure to appropriate Information Technology Center (ITC), and extension, alternative telephone agencies, entities, and persons when (1) who maintain the FCC’s computer number and extension, fax number, the Commission suspects or has network databases. Those who have e-mail address(es), computer operating confirmed that the security or access to the computer networks are system, Web browser, FCC Registration confidentiality of information in the assigned a secured log-in ID and Number (FRN), and/or Individual system of records has been password maintained in the RARS Taxpayer Identification Number (ITIN), compromised; (2) the Commission has information system. Other employees and personal security question and determined that as a result of the and contractors may be granted access answer; and (2) records verifying suspected or confirmed compromise on a ‘‘need-to-know’’ basis. The network identity information by the individual’s there is a risk of harm to economic or computers are located in secured areas, first name, last name, contact telephone property interests, identity theft or and they are protected by the FCC’s number, FRN, and/or ITIN, and personal fraud, or harm to the security or security protocols, which include security question and answer; integrity of this system or other systems controlled access, passwords, and other Revision of the language regarding the or programs (whether maintained by the security features. Information resident purposes for which the information is Commission or another agency or entity) on the database servers is backed-up maintained, for clarity and to add that that rely upon the compromised routinely onto magnetic media. Back-up (1) the FCC staff uses the records in the information; and (3) the disclosure tapes are stored on-site and at a secured, RARS information system to record and made to such agencies, entities, and off-site location; process requests from individuals or persons is reasonably necessary to assist Revision of the language regarding the groups for technical help, i.e., technical in connection with the Commission’s policies and practices for the retention questions, password requests, etc., using efforts to respond to the suspected or and disposal of records in the system, the FCC’s licensing systems and related confirmed compromise and prevent, for clarity and to add that the Commission research tool, information minimize, or remedy such harm. information in the RARS information systems, and electronic databases; and Revisions of the language regarding system is maintained for 11 years after (2) the FCC management uses the RARS the policies and practices for storage of an individual ceases to be a user of the information system software to ensure the records in the system, for clarity and system. The electronic records, files, good customer service and problem to add that information in the RARS and data are destroyed physically resolution. information system consists of (electronic storage media) or by Revision of Routine Use (1) to add the electronic data, files, and records, which electronic erasure. The paper Internet Web address at: https:// are housed in the FCC’s computer documents are destroyed by shredding esupport.fcc.gov/request.htm, which is network databases. Any paper after they are scanned into the RARS where limited public access to certain documents that WTB receives are information system’s electronic records may be made available for scanned into the electronic database databases. public users: upon receipt, then the paper documents Revision of the language regarding the Routine Use (1) Public Access— are destroyed; records source categories, for clarity and allows that the records in this system Revision of the language regarding the to add that information in the RARS will be made available upon request for policies and practices for retrieving the information system is provided by

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RARS user customers who request address(es), computer operating system, 2. Adjudication and Litigation— assistance with the FCC’s licensing Web browser, FCC Registration Number Where by careful review, the agency systems and related Commission (FRN), and/or Individual Taxpayer determines that the records are both research tools, information systems, and Identification Number (ITIN), and relevant and necessary to litigation and electronic databases, i.e., Integrated personal security question and answer. the use of such records is deemed by the Spectrum Auctions System (ISAS), 2. Records verifying identity agency to be for a purpose that is Antenna Registration System (ARS), and information by the individual’s first compatible with the purpose for which Commission Registration System name, last name, contact telephone the agency collected the records, these (CORES), etc., and other subsystems number, FRN and/or ITIN, and personal records may be used by a court or included in, or as part of, these systems, security question and answer. adjudicative body in a proceeding when: (a) The agency or any component etc. AUTHORITY FOR MAINTENANCE OF THE SYSTEM: The FCC’s staff in WTB will use the thereof; or (b) any employee of the Sec. 151, 154, 258, 301, 303, 309(e), information in the RARS information agency in his or her official capacity; or 312, 362, 364, 386, 507 of the system to record and process requests (c) any employee of the agency in his or Communications Act of 1934, as from individuals or groups for technical her individual capacity where the amended, 47 U.S.C. 151, 154, 226, 258, help, i.e., technical questions, password agency has agreed to represent the 301, 303, 309(e), 312, 362, 364, 386, 507; requests, etc., using the FCC’s licensing employee; or (d) the United States and 29 U.S.C. 794, 794(d). systems and related Commission Government is a party to litigation or research tools, information systems and PURPOSE(S): has an interest in such litigation; electronic databases; and the FCC 1. The FCC staff uses the records in 3. Law Enforcement and management will use the RARS the RARS information system to record Investigation—Where there is an information system software to ensure and process requests from individuals indication of a violation or potential good customer service and problem or groups for technical help, i.e., violation of a statute, regulation, rule, or resolution. technical questions, password requests, order, records from this system may be This notice meets the requirement etc., using the FCC’s licensing systems shared with appropriate Federal, State, documenting the change to the systems and related Commission research tools, or local authorities either for purposes of records that the FCC maintains, and information systems and electronic of obtaining additional information provides the public, OMB, and Congress databases; and relevant to a FCC decision or for an opportunity to comment. 2. The FCC management uses the referring the record for investigation, RARS information system software to enforcement, or prosecution by another FCC/WTB–7 ensure good customer service and agency; problem resolution. 4. Congressional Inquiries—When SYSTEM NAME: requested by a Congressional office in Remedy Action Request System ROUTINE USES OF RECORDS MAINTAINED IN THE response to an inquiry by an individual (RARS). SYSTEM, INCLUDING CATEGORIES OF USERS AND made to the Congressional office for THE PURPOSES OF SUCH USES: SECURITY CLASSIFICATION: their own records; and Information about individuals in this 5. Government-wide Program The FCC’s Security Operations Center system of records may routinely be Management and Oversight—When (SOC) has not assigned a security disclosed under the following requested by the National Archives and classification to this system of records. conditions: Records Administration (NARA) for the 1. Public Access—Records in this SYSTEM LOCATION: purpose of records management system will be made available upon Wireless Telecommunications Bureau inspections conducted under authority request for public inspection after of 44 U.S.C. 2904 and 2906; when the (WTB), Federal Communications redaction of information that could Commission (FCC), 445 12th Street, U.S. Department of Justice (DOJ) is identify the correspondent, i.e., name, contacted in order to obtain that SW., Washington, DC 20554. telephone number, ITIN, and e-mail department’s advice regarding CATEGORIES OF INDIVIDUALS COVERED BY THE address. Limited public access to certain disclosure obligations under the SYSTEM: records may be available via the Internet Freedom of Information Act; or when The categories of individuals in the at: https://esupport.fcc.gov/request.htm. the Office of Management and Budget RARS system include individuals who This information includes the status of (OMB) is contacted in order to obtain request help using the FCC’s licensing request, request ID number, and the that office’s advice regarding obligations systems and related Commission agent’s number who took the call or under the Privacy Act; research tools, information systems, and electronic request for support. Public 6. Breach Notification—A record from electronic databases, i.e., Integrated users who have contacted FCC this system may be disclosed to Spectrum Auctions System (ISAS), personnel via telephone, e-mail, or appropriate agencies, entities, and Antenna Registration System (ARS), and electronic submission may access the persons when (1) the Commission Commission Registration System system to retrieve a status on the ticket suspects or has confirmed that the (CORES), etc., and other subsystems assigned to their request. They will be security or confidentiality of included in, or as part of, these systems, given this ticket/request number information in the system of records has etc. generated by the Remedy Action been compromised; (2) the Commission Request System (RARS) upon has determined that as a result of the CATEGORIES OF RECORDS IN THE SYSTEM: submission of a request. This number suspected or confirmed compromise The categories of records in the RARS may be entered into the appropriate there is a risk of harm to economic or system include: field on the FCC Web site to check the property interests, identity theft or 1. Requests for assistance by the status of the ticket. Only the status of fraud, or harm to the security or requester’s first name, last name, that ticket will be released to the public integrity of this system or other systems telephone number and extension, by entering the ticket number—no or programs (whether maintained by the alternative telephone number and personal or confidential information is Commission or another agency or entity) extension, fax number, e-mail available to the public; that rely upon the compromised

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information; and (3) the disclosure RETENTION AND DISPOSAL: FEDERAL RESERVE SYSTEM made to such agencies, entities, and The information in the RARS persons is reasonably necessary to assist Change in Bank Control Notices; information system is maintained for 11 in connection with the Commission’s Acquisition of Shares of Bank or Bank years after an individual ceases to be a efforts to respond to the suspected or Holding Companies user of the system. The electronic confirmed compromise and prevent, minimize, or remedy such harm. records, files, and data are destroyed The notificants listed below have physically (electronic storage media) or applied under the Change in Bank In each of these cases, the FCC will by electronic erasure. Control Act (12 U.S.C. 1817(j)) and determine whether disclosure of the Paper documents are destroyed by § 225.41 of the Board’s Regulation Y (12 records is compatible with the purpose CFR 225.41) to acquire a bank or bank for which the records were collected. shredding after they are scanned into the RARS information system’s holding company. The factors that are considered in acting on the notices are DISCLOSURE TO CONSUMER REPORTING electronic databases. AGENCIES: set forth in paragraph 7 of the Act (12 U.S.C. 1817(j)(7)). None. SYSTEMS MANAGER(S) AND ADDRESS: The notices are available for Address inquiries to the Wireless POLICIES AND PRACTICES FOR STORING, immediate inspection at the Federal RETRIEVING, ACCESSING, RETAINING, AND Telecommunications Bureau (WTB), Reserve Bank indicated. The notices DISPOSING OF RECORDS IN THE SYSTEM: Federal Communications Commission also will be available for inspection at (FCC), 445 12th Street, SW., the office of the Board of Governors. STORAGE: Washington, DC 20554. Interested persons may express their Information in the RARS information views in writing to the Reserve Bank system consists of electronic data, files, NOTIFICATION PROCEDURE: indicated for that notice or to the offices and records, which are housed in the Address inquiries to the Wireless of the Board of Governors. Comments FCC’s computer network databases. Any Telecommunications Bureau (WTB), must be received not later than June 15, paper documents that WTB receives are 2010. Federal Communications Commission scanned into the electronic database (FCC), 445 12th Street, SW., A. Federal Reserve Bank of St. Louis upon receipt, and then the paper Washington, DC 20554. (Glenda Wilson, Community Affairs documents are destroyed. Officer) P.O. Box 442, St. Louis, Missouri 63166–2034: RETRIEVABILITY: RECORD ACCESS PROCEDURES: 1. Todd C. Green, individually to The electronic data, files, and records Address inquiries to the Wireless become the largest shareholder, and as may be retrieved by searching Telecommunications Bureau (WTB), member of the Green Family Control electronically using a variety of Federal Communications Commission Group, which consists of Todd C. Green; parameters including the requester’s (FCC), 445 12th Street, SW., Ramon J. Green, as trustee of the Ramon name, entity name, licensee, applicant Washington, DC 20554. J. Green Trust No. 11–01 U/A dated or unlicensed individual, call sign, file November 26, 2001; and as co–trustee of number, problem type, FRN, ITIN, CONTESTING RECORD PROCEDURES: the Beverly J. Green Trust No. 11–01 U/ e-mail address, and/or subject matter. Address inquiries to the Wireless A dated November 26, 2001; Beverly J. Green, all in Springfield, Illinois, as co– SAFEGUARDS: Telecommunications Bureau (WTB), Federal Communications Commission trustee of the Beverly J. Green Trust No. 11–01 U/A dated November 26, 2001; The information in the RARS (FCC), 445 12th Street, SW., information system’s electronic Jeffrey J. Green, Peoria, Illinois; Jill A. Washington, DC 20554. documents, files, and records is housed Green, East Moline, Illinois, as trustee of the Jill A. Green Trust U/A dated April, in the FCC’s computer network RECORD SOURCE CATEGORIES: databases. Access to the information in 6, 2001; Gail A. Green, Peoria, Illinois, these databases is restricted to Information in the RARS information as trustee of the Gail A. Green Trust authorized WTB supervisors, staff, and system is provided by RARS user UTA dated March 23, 2009, and Green contractors in WTB and to staff and customers who request assistance with Enterprises, LP, Springfield, Illinois; to contractors in the Information the FCC’s licensing systems and related retain control of West Plains Investors, Technology Center (ITC), who maintain Commission research tools, information Inc., and thereby indirectly retain voting the FCC’s computer network databases. systems, and electronic databases, i.e., shares of Premier Bank of Jacksonville, Those who have access to the computer Integrated Spectrum Auctions System both in Jacksonville, Illinois. networks are assigned a secured log-in (ISAS), Antenna Registration System B. Federal Reserve Bank of Kansas ID and password maintained in the (ARS), and Commission Registration City (Dennis Denney, Assistant Vice RARS information system. Other System (CORES), etc., and other President) 1 Memorial Drive, Kansas employees and contractors may be subsystems included in, or as part of, City, Missouri 64198–0001: granted access on a ‘‘need-to-know’’ these systems, etc. 1. Christopher Key Jordan and Crystal basis. Lynn Jordan, both in Stigler, Oklahoma, The network computers are located in EXEMPTIONS CLAIMED FOR THE SYSTEM: as trustees of the Christopher Key secured areas, and they are protected by Jordan 2008 Trust; and Kelly Dawn the FCC’s security protocols, which None. Jordan–Davis and Steven Scott Davis, include controlled access, passwords, Marlene H. Dortch, both in Indianola, Oklahoma, as trustees and other security features. Information Secretary, Federal Communications of the Kelly Dawn Jordan–Davis 2008 resident on the database servers is Commission. Trust; to acquire voting shares of F.S.B. backed-up routinely onto magnetic Properties, Inc., and thereby indirectly [FR Doc. 2010–12934 Filed 5–27–10; 8:45 am] media. Back-up tapes are stored on-site acquire voting shares of Farmers State and at a secured, off-site location. BILLING CODE 6712–01–P Bank, both in Quinton, Oklahoma.

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Board of Governors of the Federal Reserve The Federal Open Market Committee noted, nonbanking activities will be System, May 25, 2010. seeks monetary and financial conditions conducted throughout the United States. Robert deV. Frierson, that will foster price stability and Additional information on all bank Deputy Secretary of the Board. promote sustainable growth in output. holding companies may be obtained [FR Doc. 2010–12914 Filed 5–27–10; 8:45 am] To further its long–run objectives, the from the National Information Center BILLING CODE 6210–01–S Committee seeks conditions in reserve website at www.ffiec.gov/nic/. markets consistent with federal funds Unless otherwise noted, comments trading in a range from 0 to 1⁄4 percent. regarding each of these applications FEDERAL RESERVE SYSTEM The Committee directs the Desk to must be received at the Reserve Bank engage in dollar roll transactions as indicated or the offices of the Board of Change in Bank Control Notices; necessary to facilitate settlement of the Governors not later than June 21, 2010. Acquisition of Shares of Bank or Bank Federal Reserve’s agency MBS A. Federal Reserve Bank of San Holding Companies transactions. The System Open Market Francisco (Kenneth Binning, Vice President, Applications and The notificants listed below have Account Manager and the Secretary will Enforcement) 101 Market Street, San applied under the Change in Bank keep the Committee informed of Control Act (12 U.S.C. 1817(j)) and ongoing developments regarding the Francisco, California 94105–1579: 1. Castle Creek Capital Partners III, § 225.41 of the Board’s Regulation Y (12 System’s balance sheet that could affect LP, Castle Creek Capital III LLC, CFR 225.41) to acquire a bank or bank the attainment over time of the Eggemeyer Capital LLC, Ruh Capital holding company. The factors that are Committee’s objectives of maximum LLC, and Legions IV Advisory Corp, all considered in acting on the notices are employment and price stability. of Rancho Santa Fe, California; to set forth in paragraph 7 of the Act (12 By order of the Federal Open Market acquire an additional 38.96 percent, for U.S.C. 1817(j)(7)). Committee, May 21, 2010. a total of 85.00 percent, of the voting The notices are available for Brian F. Madigan, immediate inspection at the Federal shares of First Chicago Bancorp, and Secretary, Federal Open Market Committee. thereby indirectly acquire voting shares Reserve Bank indicated. The notices [FR Doc. 2010–12955 Filed 5–27–10; 8:45 am] also will be available for inspection at of First Chicago Bank & Trust Company, BILLING CODE 6210–01–S the office of the Board of Governors. both of Chicago, Illinois. Interested persons may express their Board of Governors of the Federal Reserve views in writing to the Reserve Bank FEDERAL RESERVE SYSTEM System, May 24, 2010. indicated for that notice or to the offices Robert deV. Frierson, of the Board of Governors. Comments Formations of, Acquisitions by, and Deputy Secretary of the Board. must be received not later than June 11, Mergers of Bank Holding Companies [FR Doc. 2010–12807 Filed 5–27–10; 8:45 am] 2010. BILLING CODE 6210–01–S A. Federal Reserve Bank of Atlanta The companies listed in this notice (Clifford Stanford, Vice President) 1000 have applied to the Board for approval, Peachtree Street, N.E., Atlanta, Georgia pursuant to the Bank Holding Company FEDERAL RESERVE SYSTEM 30309: Act of 1956 (12 U.S.C. 1841 et seq.) 1. Stafford Lester Scaff, Jr., and Anne (BHC Act), Regulation Y (12 CFR Part Notice of Proposals to Engage in Csercsics Scaff, both of Lake City, 225), and all other applicable statutes Permissible Nonbanking Activities or Florida, to retain current, and acquire and regulations to become a bank to Acquire Companies that are additional, voting shares of First holding company and/or to acquire the Engaged in Permissible Nonbanking Columbia Bancorp, Inc., and thereby assets or the ownership of, control of, or Activities indirectly retain current, and accquire the power to vote shares of a bank or bank holding company and all of the The companies listed in this notice additional, voting shares of Columbia have given notice under section 4 of the Bank, both of Lake City, Florida. banks and nonbanking companies owned by the bank holding company, Bank Holding Company Act (12 U.S.C. Board of Governors of the Federal Reserve including the companies listed below. 1843) (BHC Act) and Regulation Y (12 System, May 24, 2010. The applications listed below, as well CFR Part 225) to engage de novo, or to Robert deV. Frierson, as other related filings required by the acquire or control voting securities or Deputy Secretary of the Board. Board, are available for immediate assets of a company, including the [FR Doc. 2010–12808 Filed 5–27–10; 8:45 am] inspection at the Federal Reserve Bank companies listed below, that engages BILLING CODE 6210–01–S indicated. The applications also will be either directly or through a subsidiary or available for inspection at the offices of other company, in a nonbanking activity the Board of Governors. Interested that is listed in § 225.28 of Regulation Y FEDERAL RESERVE SYSTEM persons may express their views in (12 CFR 225.28) or that the Board has writing on the standards enumerated in determined by Order to be closely Federal Open Market Committee; the BHC Act (12 U.S.C. 1842(c)). If the related to banking and permissible for Domestic Policy Directive of April 27 proposal also involves the acquisition of bank holding companies. Unless and 28, 2010 a nonbanking company, the review also otherwise noted, these activities will be In accordance with § 271.25 of its includes whether the acquisition of the conducted throughout the United States. rules regarding availability of nonbanking company complies with the Each notice is available for inspection information (12 CFR part 271), there is standards in section 4 of the BHC Act at the Federal Reserve Bank indicated. set forth below the domestic policy (12 U.S.C. 1843). Unless otherwise The notice also will be available for directive issued by the Federal Open inspection at the offices of the Board of Market Committee at its meeting held and 28, 2010, which includes the domestic policy Governors. Interested persons may 1 directive issued at the meeting, are available upon express their views in writing on the on April 27 and 28, 2010. request to the Board of Governors of the Federal Reserve System, Washington, D.C. 20551. The question whether the proposal complies 1 Copies of the Minutes of the Federal Open minutes are published in the Federal Reserve with the standards of section 4 of the Market Committee at its meeting held on April 27 Bulletin and in the Board’s annual report. BHC Act. Additional information on all

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bank holding companies may be comments regarding this burden for-profit institutions; Number of obtained from the National Information estimate or any other aspect of this Respondents: 5,508; Total Annual Center website at www.ffiec.gov/nic/. collection of information, including any Responses: 5,508; Total Annual Hours: Unless otherwise noted, comments of the following subjects: (1) The 275,400. (For policy questions regarding regarding the applications must be necessity and utility of the proposed this collection contact Gail Duncan at received at the Reserve Bank indicated information collection for the proper 410–786–7278. For all other issues call or the offices of the Board of Governors performance of the agency’s functions; 410–786–1326.) not later than June 15, 2010. (2) the accuracy of the estimated 3. Type of Information Collection A. Federal Reserve Bank of Chicago burden; (3) ways to enhance the quality, Request: Extension of a currently (Colette A. Fried, Assistant Vice utility, and clarity of the information to approved collection; Title of President) 230 South LaSalle Street, be collected; and (4) the use of Information Collection: Home Health Chicago, Illinois 60690–1414: automated collection techniques or Agency Cost Report; Use: These cost 1. NC Bancorp, Inc., Chicago, Illinois; other forms of information technology to report forms are filed annually by to continue to engage de novo in minimize the information collection freestanding providers participating in making, acquiring, brokering or burden. the Medicare program to effect year end servicing loans or other extensions of 1. Type of Information Collection cost settlement for providing services to credit, pursuant to section 225.28(b)(1) Request: New collection; Title of Medicare beneficiaries. The data of Regulation Y. Information Collection: Medicare submitted on the cost reports supports B. Federal Reserve Bank of San Savings Program Protection from management of Federal programs. Francisco (Kenneth Binning, Vice Medicaid Estate Recovery—State Plan Providers receiving Medicare President, Applications and Pre-print under Title XIX. Form No: reimbursement must provide adequate Enforcement) 101 Market Street, San CMS–10314 (OMB# 0938–New); Use: cost data based on financial and Francisco, California 94105–1579: Section 115 of the Medicare statistical records which can be verified 1. Mission Community Bancorp, San Improvements for Patients and by qualified auditors. The data from Luis Obispo, California; Carpenter Fund Providers Act (MIPPA)—2008, provides these cost reporting forms will be used Manager GP, LLC; Carpenter Fund new protections from Medicaid estate for the purpose of evaluating current Management, LLC; Carpenter recovery for limited categories of dual levels of Medicare reimbursement. Form Community Bancfund, L.P.; Carpenter eligibles age 55 and over. To offer these Number: CMS–1728–94 (OMB#: 0938– Community Bancfund–A, L.P.; protections, States have to amend their 0022); Frequency: Yearly; Affected Carpenter Community Bancfund–CA, Medicaid State plans to reflect these Public: Business or other for-profits and L.P.; CCFW, Inc.; and SCJ, Inc., all of new limits on estate recovery. To reduce Not-for-profit institutions; Number of Irvine, California; to acquire Mission paperwork burden and expedite this Respondents: 7,479; Total Annual Asset Management, Inc., San Luis process, CMS is providing States with a Responses: 7,479; Total Annual Hours: Obispo, California, and thereby egnage pre-printed document (i.e., a State plan 1,690,254. (For policy questions in extending credit and servicing loans, preprint) which neither needs nor regarding this collection contact Angela pursuant to section 225.28(b)(1) of requires any insertion of language or Havrilla at 410–786–4516. For all other Regulation Y. even completion of a check-off box. As issues call 410–786–1326.) Section 115 simply mandates 4. Type of Information Collection Board of Governors of the Federal Reserve compliance (there is no option not to Request: Revision of a currently System, May 25, 2010. comply), States only need return the approved collection; Title of Robert deV. Frierson, preprint page (as prepared by CMS) to Information Collection: Data Collection Deputy Secretary of the Board. CMS, as a requested amendment to their for the Nursing Home Value-Based [FR Doc. 2010–12913 Filed 5–27–10; 8:45 am] State Plan. This is a one-time only Purchasing (NHVBP) Demonstration; BILLING CODE 6210–01–S submission, with little burden Use: The goal of the NHVBP imposition and complete electronic Demonstration is to use financial routing to and from States. Frequency: incentives to improve the quality of care DEPARTMENT OF HEALTH AND Reporting—Once; Affected Public: State, in nursing homes. The main purpose of HUMAN SERVICES Local or Tribal Governments; Number of the NHVBP data collection effort is to Respondents: 51; Total Annual gather information that will enable CMS Centers for Medicare & Medicaid Responses: 51; Total Annual Hours: to determine which nursing homes will Services 102. (For policy questions regarding this be eligible to receive incentive collection contact Nancy Dieter at 410– payments under the NHVBP [Document Identifier: CMS–10314, CMS– 786–7219. For all other issues call 410– Demonstration. Information will be 264–94, CMS–1728–94, CMS–10240 and collected from nursing homes CMS–P–0015A] 786–1326.) 2. Type of Information Collection participating in the demonstration on an Agency Information Collection Request: Extension of a currently ongoing basis. CMS will collect payroll- Activities: Proposed Collection; approved collection; Title of based staffing, agency staffing and Comment Request Information Collection: Independent resident census information to help Renal Dialysis Facility Cost Report; Use: assess the quality of care in AGENCY: Centers for Medicare & The Independent Renal Dialysis Facility participating nursing homes. CMS will Medicaid Services. Cost Report, is filed annually by determine which homes qualify for an In compliance with the requirement providers participating in the Medicare incentive payment based on their of section 3506(c)(2)(A) of the program to identify the specific items of relative performance in terms of quality. Paperwork Reduction Act of 1995, the cost and statistics of facility operation Form Number: CMS–10240 (OMB#: Centers for Medicare & Medicaid that independent renal dialysis facilities 0938–1039); Frequency: Quarterly; Services (CMS) is publishing the are required to report. Form Number: Affected Public: Business or other for- following summary of proposed CMS–265–94 (OMB#: 0938–0236); profits and Not-for-profit institutions; collections for public comment. Frequency: Yearly; Affected Public: Number of Respondents: 178; Total Interested persons are invited to send Business or other for-profits and Not- Annual Responses: 712; Total Annual

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Hours: 5,530. (For policy questions this collection contact William Long at DEPARTMENT OF HEALTH AND regarding this collection contact Ron 410–786–7927. For all other issues call HUMAN SERVICES Lambert at 410–786–6624. For all other 410–786–1326.) issues call 410–786–1326.) To obtain copies of the supporting Administration for Children and 5. Type of Information Collection statement and any related forms for the Families Request: Revision of a currently proposed paperwork collections approved collection; Title of referenced above, access CMS’ Web Site Proposed Information Collection Information Collection: Medicare at http://www.cms.hhs.gov/ Activity; Comment Request Current Beneficiary Survey; Use: The PaperworkReductionActof1995, or Medicare Current Beneficiary Survey E-mail your request, including your Proposed Projects (MCBS) serves to measure what impact address, phone number, OMB number, Title: Child Care and Development the changes have on the program and its and CMS document identifier, to beneficiaries. The MCBS is a [email protected], or call the Block Grant Reporting Requirements— comprehensive data collection effort Reports Clearance Office on (410) 786– ACF–700. that fills an information gap in the 1326. OMB No.: 0980–0241. Centers for Medicare and Medicaid In commenting on the proposed Description: The Child Care and Services, and is depended on to help information collections please reference Development Fund (CCDF) report the document identifier or OMB control manage the program. Being able to requests annual Tribal aggregate examine various characteristics and to number. To be assured consideration, comments and recommendations must information on services provided chart evolving trends offers policy through the CCDF, which is required by makers a reliable tool for making be submitted in one of the following the CCDF Final Rule (45 FR parts 98 and informed decisions. The MCBS is used ways by July 27, 2010: 99). Tribal Lead Agencies (TLAs) are to identify potential new policy 1. Electronically. You may submit required to submit annual aggregate data direction or modifications to the your comments electronically to http:// Medicare program and once those www.regulations.gov. Follow the appropriate to Tribal programs on program enhancements are instructions for ‘‘Comment or children and families receiving CCDF- implemented, monitor the impact of Submission’’ or ‘‘More Search Options’’ funded child care services. The CCDF those changes. The central goals of the to find the information collection statute and regulations also require MCBS are to determine medical care document(s) accepting comments. TLAs to submit a supplemental expenditures and sources of payment 2. By regular mail. You may mail narrative as part of the ACF–700 report. for all services, including copayments, written comments to the following This narrative describes child care deductibles, and non-covered services; address: CMS, Office of Strategic activities and actions in the TLA’s to ascertain all types of health insurance Operations and Regulatory Affairs, service area. Information from the ACF– coverage and relate coverage to actual Division of Regulations Development, 700 and supplemental narrative report payments; and to trace processes over Attention: Document Identifier/OMB will be included in the Secretary’s time, such as changes in health status, Control Number, Room C4–26–05, 7500 Report to Congress, as appropriate, and Security Boulevard, Baltimore, spending down to Medicaid eligibility, will be shared with all TLAs to inform Maryland 21244–1850. and the impacts of program changes. them of CCDF-funded activities in other Form Number: CMS–P–0015A (OMB#: Dated: May 21, 2010. Tribal programs. 0938–0568); Frequency: Yearly; Affected Martique Jones, Respondents: Tribal Governments. Public: Business or other for-profits and Director, Regulations Development Division- Not-for-profit institutions; Number of B, Office of Strategic Operations and Respondents: 16,217; Total Annual Regulatory Affairs. Responses: 48,650; Total Annual Hours: [FR Doc. 2010–12624 Filed 5–27–10; 8:45 am] 57,062. (For policy questions regarding BILLING CODE 4120–01–P

ANNUAL BURDEN ESTIMATES

Number of Number of responses Average Total burden Instrument respondents per respond- burden hours hours ent per response

ACF–700 Report ...... 260 1 38 9,880

Estimated Total Annual Burden Families, Office of Administration, whether the information shall have Hours: 9,880. Office of Information Services, 370 practical utility; (b) the accuracy of the In compliance with the requirements L’Enfant Promenade, SW., Washington, agency’s estimate of the burden of the of Section 506(c)(2)(A) of the Paperwork DC 20447, Attn: ACF Reports Clearance proposed collection of information; (c) Reduction Act of 1995, the Officer. E-mail address: the quality, utility, and clarity of the Administration for Children and [email protected]. All requests information to be collected; and (d) Families is soliciting public comment should be identified by the title of the ways to minimize the burden of the on the specific aspects of the information collection. collection of information on information collection described above. The Department specifically requests respondents, including through the use Copies of the proposed collection of comments on: (a) Whether the proposed of automated collection techniques or information can be obtained and collection of information is necessary other forms of information technology. comments may be forwarded by writing for the proper performance of the Consideration will be given to to the Administration for Children and functions of the agency, including

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comments and suggestions submitted Reports Clearance Officer at (301) 443– Data for the OPTN data system are within 60 days of this publication. 1129. collected from transplant hospitals, Dated: May 25, 2010. Comments are invited on: (a) The organ procurement organizations, and proposed collection of information for tissue-typing laboratories. The Robert Sargis, the proper performance of the functions information is used to indicate the Reports Clearance Officer. of the agency; (b) the accuracy of the disease severity of transplant [FR Doc. 2010–12877 Filed 5–27–10; 8:45 am] agency’s estimate of the burden of the candidates, to monitor compliance of BILLING CODE 4184–01–P proposed collection of information; (c) member organizations with OPTN rules ways to enhance the quality, utility, and and requirements, and to report clarity of the information to be periodically on the clinical and DEPARTMENT OF HEALTH AND collected; and (d) ways to minimize the scientific status of organ donation and HUMAN SERVICES burden of the collection of information transplantation in this country. Data are on respondents, including through the used to develop transplant, donation Health Resources and Services use of automated collection techniques and allocation policies, to determine if Administration or other forms of information institutional members are complying technology. with policy, to determine member Agency Information Collection specific performance, to ensure patient Activities: Proposed Collection: Proposed Project: Organ Procurement safety and to fulfill the requirements of Comment Request and Transplantation Network and the OPTN Final Rule. The practical Scientific Registry of Transplant utility of the data collection is further In compliance with the requirement Recipients Data System (OMB No. enhanced by requirements that the for opportunity for public comment on 0915–0157)—Extension OPTN data must be made available, proposed data collection projects Section 372 of the Public Health consistent with applicable laws, for use (section 3506(c)(2)(A) of Title 44, United Service (PHS) Act requires that the by OPTN members, the Scientific States Code, as amended by the Secretary, by contract, provide for the Registry of Transplant Recipients, the Paperwork Reduction Act of 1995, Pub. establishment and operation of an Organ Department of Health and Human L. 104–13), the Health Resources and Procurement and Transplantation Services, and others for evaluation, Services Administration (HRSA) Network (OPTN). The OPTN, among research, patient information, and other publishes periodic summaries of other responsibilities, operates and important purposes. proposed projects being developed for maintains a national waiting list of No revisions of the 26 data collection submission to the Office of Management individuals requiring organ transplants, forms are proposed at this time; and Budget (OMB) under the Paperwork maintains a computerized system for however, the OPTN is currently Reduction Act of 1995. To request more matching donor organs with transplant undergoing a review of the forms and information on the proposed project or candidates on the waiting list, and expects to submit proposed revisions to obtain a copy of the data collection operates a 24-hour system to facilitate within the next year. plans and draft instruments, e-mail matching organs with individuals The annual estimate of burden is as [email protected] or call the HRSA included in the list. follows:

Responses Form Number of per Total Hours per Total burden respondents respondents responses response hours

Deceased Donor Registration ...... 58 216 12,528 0.7500 9,396.00 Death referral data ...... 58 12 696 10.0000 6,960.00 Death Notification Referral—Eligible ...... 58 161 9338 0.2000 1,867.60 Death Notification Referral—Imminent ...... 58 168 9744 0.5000 4,872.00 Living Donor Registration ...... 308 39 12,012 0.6500 7,807.80 Living Donor Follow-up ...... 308 50 15,400 0.5000 7,700.00 Donor Histocompatibility ...... 156 131 20,436 0.1000 2,043.60 Recipient Histocompatibility ...... 156 196 30,576 0.2000 6,115.20 Heart Candidate Registration ...... 127 35 4,445 0.5000 2,222.50 Lung Candidate Registration ...... 68 42 2,856 0.5000 1,428.00 Heart/Lung Candidate Registration ...... 51 2 102 0.5000 51.00 Thoracic Registration ...... 127 36 4,572 0.7500 3,429.00 Thoracic Follow-up ...... 127 320 40,640 0.6500 26,416.00 Kidney Candidate Registration ...... 241 183 44,103 0.5000 22,051.50 Kidney Registration ...... 241 83 20,003 0.7500 15,002.25 Kidney Follow-up * ...... 241 742 178,822 0.5500 98,352.10 Liver Candidate Registration ...... 129 109 14,061 0.5000 7,030.50 Liver Registration ...... 129 58 7,482 0.6500 4,863.30 Liver Follow-up ...... 129 519 66,951 0.5000 33,475.50 Kidney/Pancreas Candidate Registration ...... 143 14 2,002 0.5000 1,001.00 Kidney/Pancreas Registration ...... 143 7 1,001 0.9000 900.90 Kidney/Pancreas Follow-up ...... 143 85 12,155 0.8500 10,331.75 Pancreas Candidate Registration ...... 143 7 1,001 0.5000 500.50 Pancreas Registration ...... 143 3 429 0.7500 321.75 Pancreas Follow-up ...... 143 20 2,860 0.6500 1,859.00 Intestine Candidate Registration ...... 44 7 308 0.5000 154.00 Intestine Registration ...... 44 5 220 0.9000 198.00 Intestine Follow-up ...... 44 28 1,232 0.8500 1,047.20 Post Transplant Malignancy ...... 684 10 6,840 0.2000 1,368.00

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Responses Form Number of per Total Hours per Total burden respondents respondents responses response hours

Total ...... 463 ...... 522,815 ...... 278,765.95 * Includes an estimated 2,500 kidney transplant patients transplanted prior to the initiation of the data system.

E-mail comments to Administration, 1350 Piccard Dr., PI50– version of the form and the electronic [email protected] or mail the HRSA 400B, Rockville, MD 20850, 301–796– system known as the Food Facility Reports Clearance Officer, Room 10–33, 3793. Registration Module, which is available Parklawn Building, 5600 Fishers Lane, SUPPLEMENTARY INFORMATION: In at http://www.access.fda.gov. The Rockville, MD 20857. Written comments compliance with 44 U.S.C. 3507, FDA agency strongly encourages electronic should be received within 60 days of has submitted the following proposed registration because it is faster and more this notice. collection of information to OMB for convenient. The system the agency has Dated: May 25, 2010. review and clearance. developed can accept electronic registrations from anywhere in the Sahira Rafiullah, Registration of Food Facilities Under world 24 hours a day, 7 days a week. A Director, Division of Policy and Information the Public Health Security and registering facility will receive Coordination. Bioterrorism Preparedness and confirmation of electronic registration [FR Doc. 2010–12964 Filed 5–27–10; 8:45 am] Response Act of 2002— (OMB Control and its registration number BILLING CODE 4165–15–P Number 0910–0502)—Extension instantaneously once all the required The Public Health Security and fields on the registration screen are filled in. However, paper registrations DEPARTMENT OF HEALTH AND Bioterrorism Preparedness and will be accepted. Form FDA 3537 is HUMAN SERVICES Response Act of 2002 (the Bioterrorism Act) added section 415 of the Federal available for download for registration Food and Drug Administration Food, Drug, and Cosmetic Act (the act) by mail, fax, or CD–ROM. Registration (21 U.S.C. 350d), which requires by mail may take several weeks to [Docket No. FDA–2010–N–0119] domestic and foreign facilities that several months, depending on the speed manufacture, process, pack, or hold of the mail system and the number of Agency Information Collection paper registrations that FDA will have Activities; Submission for Office of food for human or animal consumption in the United States to register with to enter manually. Management and Budget Review; Information FDA requires on the Comment Request; Registration of FDA. Sections 1.230 through 1.235 of FDA’s regulations (21 CFR 1.230 registration form includes the name and Food Facilities Under the Public Health through 1.235) set forth the procedures full address of the facility; emergency Security and Bioterrorism for registration of food facilities. contact information; all trade names the Preparedness and Response Act of Information provided to FDA under facility uses; applicable food product 2002 these regulations will help the agency to categories identified in § 170.3 (21 CFR AGENCY: Food and Drug Administration, notify quickly the facilities that might 170.3), unless ‘‘most/all’’ human food HHS. be affected by a deliberate or accidental categories ‘‘or none of the above mandatory categories’’ is selected as a ACTION: Notice. contamination of the food supply. Description of Respondents: The response; and a certification statement SUMMARY: The Food and Drug respondents to this information that includes the name of the individual Administration (FDA) is announcing collection include owners, operators, or authorized to submit the registration that a proposed collection of agents in charge of domestic or foreign form. Additionally, facilities are information has been submitted to the facilities that manufacture/process, encouraged to submit their preferred Office of Management and Budget pack, or hold food for human or animal mailing address; type of activity (OMB) for review and clearance under consumption in the United States. conducted at the facility; food categories the Paperwork Reduction Act of 1995. Domestic facilities are required to not included under § 170.3, but which DATES: Fax written comments on the register whether or not food from the are helpful to FDA for responding to an collection of information by June 28, facility enters interstate commerce. incident; type of storage, if the facility 2010. Foreign facilities that manufacture/ is primarily a holding facility; and process, pack, or hold food also are approximate dates of operation if the ADDRESSES: To ensure that comments on required to register unless food from facility’s business is seasonal. the information collection are received, that facility undergoes further In addition to registering, a facility is OMB recommends that written processing (including packaging) by required to submit timely updates comments be faxed to the Office of another foreign facility before the food within 60 days of a change to any Information and Regulatory Affairs, is exported to the United States. required information on its registration OMB, Attn: FDA Desk Officer, FAX: However, if the subsequent foreign form, using Form FDA 3537 (§ 1.234), 202–395–7285, or e-mailed to _ facility performs only a minimal and to cancel its registration when the oira [email protected]. All activity, such as putting on a label, both facility ceases to operate or is sold to comments should be identified with the facilities are required to register. new owners or ceases to manufacture/ OMB control number 0910–0502. Also FDA’s regulations require that each process, pack, or hold food for include the FDA docket number found facility that manufactures, processes, consumption in the United States, using in brackets in the heading of this packs, or holds food for human or Form FDA 3537a (§ 1.235). document. animal consumption in the United In the Federal Register of March 16, FOR FURTHER INFORMATION CONTACT: States register with FDA using Form 2010 (75 FR 12547), FDA published a Denver Presley, Jr., Office of Information FDA 3537 (§ 1.231). The term ‘‘Form 60-day notice requesting public Management, Food and Drug FDA 3537’’ refers to both the paper comment on the proposed collection of

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information. FDA received one letter, link the registration to the false facilities that manufacture, process, containing multiple comments, in registrant. Persons who might attempt to pack, or hold food for human or animal response to the notice. intentionally contaminate the U.S. food consumption in the United States to (Comment 1) One comment supply would be deterred, by the register with FDA. contended that it was unnecessary for creation of additional evidence that (Comment 3) One comment stated companies to have to register their might be used against them, from that, to lessen the burden of the facilities with FDA. starting a business in the food supply regulation, FDA should not require (Response) FDA disagrees. In the chain. Persons who might intentionally firms to update their registration Preliminary Regulatory Impact Analysis contaminate the food supply but refuse information, but only to cancel their (PRIA) for the proposed rule (see the to register would be subject to criminal registration when the facility stops Federal Register of Feburary 3, 2003 (68 and civil sanctions and, if foreign, holding food. FR 5378 at 5387 to 5413)), FDA asserted would risk having their product held at that requiring registration of a U.S. port. With emergency contact (Response) FDA disagrees with the manufacturers/ processors, packers, and information and product categories, suggested change to its regulations. holders of food would aid in deterring FDA can quickly call or e-mail the Requiring registrants to update the and limiting the effects of foodborne emergency contact at both domestic and registration information for their outbreaks in four ways. One, by foreign facilities that may be targeted by facilities will directly enhance FDA’s requiring registration, persons who a specific food threat. If FDA suspects ability to satisfy the agency’s obligation might intentionally contaminate the a particular product is at risk, the to maintain an up-to-date list of food supply would be deterred from agency can quickly identify which registered facilities, as required by entering the food production chain. facilities to contact. This rapid section 415(a)(4) of the act. FDA has Two, if FDA is aware of a specific food communication ability will allow balanced the greater efficiency of the threat, a registration database would facilities to respond quickly to a threat agency’s having specific information make FDA better able to inform the and possibly limit the effect of a regarding food manufactured/processed, facilities potentially affected by the deliberate strike on the food supply, as packed, or held at each facility against threat. Three, FDA would be able to well as public health emergencies due the burden on facilities to submit deploy more efficiently its domestic to accidental contamination of food. initially and update this information as compliance and regulatory resources. (Comment 2) One comment stated circumstances change. Without updated Four, FDA inspectors, using prior notice that facilities that hold food should not emergency contact information and and registration, would be better able to be required to register. product categories, the agency’s ability identify shipments offered for import for (Response) FDA disagrees with the to quickly call or e-mail the emergency inspection. suggested change to its regulations. The contact at facilities that may be targeted Registering with FDA creates a paper agency’s regulations implement the food by a specific food threat would be trail, which would, even if the facility registration requirements in negatively impacted. information in the registration were section 305 of the Bioterrorism Act, FDA estimates the burden of this falsified, provide evidence that could which requires domestic and foreign collection of information as follows:

TABLE 1.—ESTIMATED ANNUAL REPORTING BURDEN1

21 CFR No. of Annual Frequency Total Annual Hours Section FDA Form No. Respondents per Response Responses per Response Total Hours

New Facilities

Domestic

1.230–1.233 FDA 35372 13,560 1 13,560 2.5 33,900

Foreign

1.230–1.233 FDA 3537 23,370 1 23,370 8.5 198,645

New Facility Registration Subtotal 232,545

Previously Registered Facilities-Updates (Form 3537) and Cancellations (Form 3537a)

1.234 FDA 3537 118,530 1 118,530 1 118,530

1.235 FDA 3537a 6,390 1 6,390 1 6,390

Updates or Cancellations to Existing Registration Subtotal 124,920

Total Hours Annually 357,465 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 The term ‘‘Form FDA 3537’’ refers to both the paper version of the form and the electronic system known as the Food Facility Registration Module, which is available at http://www.access.fda.gov.

This estimate is based on FDA’s years. FDA received 12,681 new FDA estimates the annual number of experience and the average number of domestic facility registrations during new domestic facility registrations will new facility registrations, updates and 2006; 14,629 during 2007; and 13,378 be 13,560. FDA estimates that listing the cancellations received in the past 3 during 2008. Based on this experience, information required by the

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Bioterrorism Act and presenting it in a access. Thus, the total annual burden for collection of information to OMB for format that will meet the agency’s cancelling registrations is estimated to review and clearance. registration regulations will require a be 6,390 hours. Cosmetic Labeling Regulations—(OMB burden of approximately 2.5 hours per Dated: May 25, 2010. Control Number 0910–0599)—Extension average domestic facility registration. Leslie Kux, The average domestic facility burden The Federal Food, Drug, and Cosmetic Acting Assistant Commissioner for Policy. hour estimate of 2.5 hours takes into Act (the act) and the Fair Packaging and account that some respondents [FR Doc. 2010–13003 Filed 5–27–10; 8:45 am] Labeling Act (the FPLA) require that completing the registration may not BILLING CODE 4160–01–S cosmetic manufacturers, packers, and have readily available Internet access. distributors disclose information about Thus, the total annual burden for new themselves or their products on the DEPARTMENT OF HEALTH AND domestic facility registrations is labels or labeling of their products. HUMAN SERVICES estimated to be 33,900 hours (13,560 x Sections 201, 502, 601, 602, 603, 701, 2.5 hours). Food and Drug Administration and 704 of the act (21 U.S.C. 321, 352, FDA received 25,513 new foreign 361, 362, 363, 371, and 374) and facility registrations during 2006; 23,302 [Docket No. FDA–2010–N–0120] sections 4 and 5 of the FPLA (15 U.S.C. during 2007; and 21,281 during 2008. 1453 and 1454) provide authority to Based on this experience, FDA estimates Agency Information Collection FDA to regulate the labeling of cosmetic the annual number of new foreign Activities; Submission for Office of products. Failure to comply with the facility registrations will be 23,370. FDA Management and Budget Review; requirements for cosmetic labeling may estimates that listing the information Comment Request; Cosmetic Labeling render a cosmetic adulterated under required by the Bioterrorism Act and Regulations section 601 of the act or misbranded presenting it in a format that will meet under section 602 of the act. the agency’s registration regulations will AGENCY: Food and Drug Administration, FDA’s cosmetic labeling regulations require a burden of approximately 8.5 HHS. are published in part 701 (21 CFR part hours per average foreign facility ACTION: Notice. 701). Four of the cosmetic labeling registration. The average foreign facility regulations have information collection SUMMARY: burden hour estimate of 8.5 hours The Food and Drug provisions. Section 701.3 requires the includes an estimate of the additional Administration (FDA) is announcing label of a cosmetic product to bear a burden on a foreign facility to obtain a that a proposed collection of declaration of the ingredients in U.S. agent, and takes into account that information has been submitted to the descending order of predominance. for some foreign facilities the Office of Management and Budget Section 701.11 requires the principal respondent completing the registration (OMB) for review and clearance under display panel of a cosmetic product to may not be fluent in English and/or not the Paperwork Reduction Act of 1995 bear a statement of the identity of the have readily available Internet access. (the PRA). product. Section 701.12 requires the Thus, the total annual burden for new DATES: Fax written comments on the label of a cosmetic product to specify foreign facility registrations is estimated collection of information by June 28, the name and place of business of the to be 198,645 hours (23,370 x 8.5 hours). 2010.. manufacturer, packer, or distributor. FDA received 114,199 updates to ADDRESSES: To ensure that comments on Section 701.13 requires the label of a facility registrations during 2006; the information collection are received, cosmetic product to declare the net 128,070 during 2007; and 113,318 OMB recommends that written quantity of contents of the product. during 2008. Based on this experience, comments be faxed to the Office of FDA’s cosmetic labeling regulations FDA estimates that it will receive Information and Regulatory Affairs, remain unchanged by this notice. FDA 118,530 updates annually. FDA also OMB, Attn: FDA Desk Officer, FAX: is publishing this notice in compliance estimates that updating a registration 202–395–7285, or e-mailed to with the PRA. This notice does not will, on average, require a burden of [email protected]. All represent any new regulatory initiative. approximately 1 hour, taking into comments should be identified with the In the Federal Register of March 16, account fluency in English and Internet OMB control number 0910–0599. Also 2010 (75 FR 12546), FDA published a access. Thus, the total annual burden for include the FDA docket number found 60-day notice requesting public updating all registrations is estimated to in brackets in the heading of this comment on the proposed collection of be 118,530 hours. document. information. FDA received one letter, FDA received 5,703 cancellations of containing multiple comments, in facility registrations during 2006; 5,578 FOR FURTHER INFORMATION CONTACT: response to the notice. One comment during 2007; and 7,888 during 2008. Denver Presley, Jr., Office of Information expressed strong support for the Based on this experience, FDA estimates Management, Food and Drug labeling of cosmetics. Additional the annual number of cancellations will Administration, 1350 Piccard Dr., PI50– comments were outside the scope of the be 6,390. FDA also estimates that 400B, Rockville, MD 20850, 301–796– four collection of information topics on cancelling a registration will, on 3793. which the notice solicits comments and, average, require a burden of SUPPLEMENTARY INFORMATION: In thus, will not be addressed here. approximately 1 hour, taking into compliance with 44 U.S.C. 3507, FDA FDA estimates the annual burden of account fluency in English and Internet has submitted the following proposed this collection of information as follows:

TABLE 1.—ESTIMATED ANNUAL THIRD PARTY DISCLOSURE BURDEN1

No. of Annual Frequency Total Annual Hours per 21 CFR Section Respondents of Disclosure Disclosures Disclosure Total Hours

701.3 1,518 21 31,878 1 31,878

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TABLE 1.—ESTIMATED ANNUAL THIRD PARTY DISCLOSURE BURDEN1—Continued

No. of Annual Frequency Total Annual Hours per 21 CFR Section Respondents of Disclosure Disclosures Disclosure Total Hours

701.11 1,518 24 36,432 1 36,432

701.12 1,518 24 36,432 1 36,432

701.13 1,518 24 36,432 1 36,432

Total 141,174 1 There are no capital costs or operating and maintenance costs associated with this collection of information.

The hour burden is the additional or per year. Therefore, FDA estimates that ADDRESSES: To ensure that comments on incremental time that establishments the annual frequency of response will be the information collection are received, need to design and print labeling that 21 (31,878 SKUs) for § 701.3 and 24 OMB recommends that written includes the following required each (36,432 SKUs) for §§ 701.11, comments be faxed to the Office of elements: A declaration of ingredients 701.12, and 701.13. Information and Regulatory Affairs, in decreasing order of predominance, a FDA estimates that each of the OMB, Attn: FDA Desk Officer, FAX: statement of the identity of the product, required label elements may add 202–395–7285, or e-mailed to a specification of the name and place of approximately 1 hour to the label design [email protected]. All business of the establishment, and a process. FDA bases this estimate on the comments should be identified with the declaration of the net quantity of hour burdens the Agency has previously OMB control number 0910–0520. Also contents. These requirements increase estimated for food, drug, and medical include the FDA docket number found the time establishments need to design device labeling and on the Agency’s in brackets in the heading of this labels because they increase the number knowledge of cosmetic labeling. document. of label elements that establishments Therefore, FDA estimates that the total FOR FURTHER INFORMATION CONTACT: must take into account when designing hour burden on members of the public Denver Presley, Jr., Office of Information labels. These requirements do not for this information collection is Management, Food and Drug generate any recurring burden per label 141,174 hours per year. Administration, 1350 Piccard Dr., PI50– because establishments must already Dated: May 25, 2010. 400B, Rockville, MD 20850, 301–796– print and affix labels to cosmetic Leslie Kux, 3793. products as part of normal business SUPPLEMENTARY INFORMATION: In practices. Acting Assistant Commissioner for Policy. compliance with 44 U.S.C. 3507, FDA According to the 2001 census, there [FR Doc. 2010–13075 Filed 5–27–10; 8:45 am] BILLING CODE 4160–01–S has submitted the following proposed are 1,518 cosmetic product collection of information to OMB for establishments in the United States review and clearance. (U.S. Census Bureau, http:// DEPARTMENT OF HEALTH AND Prior Notice of Imported Food Under www.census.gov/epcd/susb/2001/us/ HUMAN SERVICES US32562.HTM). FDA calculates label the Public Health Security and design costs based on stockkeeping Food and Drug Administration Bioterrorism Preparedness and units (SKUs) because each SKU has a Response Act of 2002—(OMB Control unique product label. Based on data Number 0910–0520)—Extension [Docket No. FDA–2010–N–0118] available to the Agency and on The Public Health Security and communications with industry, FDA Agency Information Collection Bioterrorism Preparedness and estimates that cosmetic establishments Activities; Submission for Office of Response Act of 2002 (the Bioterrorism will offer 94,800 SKUs for retail sale in Management and Budget Review; Act) added section 801(m) of the 2010. This corresponds to an average of Comment Request; Prior Notice of Federal Food, Drug, and Cosmetic Act 62 SKUs per establishment. Imported Food Under the Public Health (the act) (21 U.S.C. 381(m)), which One of the four provisions that FDA Security and Bioterrorism requires that FDA receive prior notice discusses in this information collection, Preparedness and Response Act of for food, including food for animals, § 701.3, applies only to cosmetic 2002 that is imported or offered for import products offered for retail sale. into the United States. Sections 1.278 However, the other three provisions, AGENCY: Food and Drug Administration, through 1.282 of FDA’s regulations (21 §§ 701.11, 701.12, and 701.13, apply to HHS. CFR 1.278 through 1.282) set forth the all cosmetic products, including non- ACTION: Notice. requirements for submitting prior retail professional-use-only products. notice; §§ 1.283(d) and 1.285(j) (21 CFR FDA estimates that including SUMMARY: The Food and Drug 1.283(d) and 1.285(j)) set forth the professional-use-only cosmetic products Administration (FDA) is announcing procedure for requesting FDA review increases the total number of SKUs by that a proposed collection of after an article of food has been refused 15 percent to 109,020. This corresponds information has been submitted to the admission under section 801(m)(1) of to an average of 72 SKUs per Office of Management and Budget the act or placed under hold under establishment. (OMB) for review and clearance under section 801(l) of the act; and § 1.285(i) Finally, based on the Agency’s the Paperwork Reduction Act of 1995. (21 CFR 1.285(i)) sets forth the experience with other products, FDA DATES: Fax written comments on the procedure for post-hold submissions. estimates that cosmetic establishments collection of information by June 28, Advance notice of imported food allows may redesign up to one-third of SKUs 2010. FDA, with the support of the U.S.

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Customs and Border Protection (CBP), to country from which the article of food FDA has confirmed a prior notice target import inspections more is shipped or, if the food is imported by submission for review (e.g., if the effectively and help protect the nation’s international mail, the anticipated date identity of the manufacturer changes) food supply against terrorist acts and of mailing and country from which the (§ 1.282). However, changes in the other public health emergencies. food is mailed; the anticipated arrival estimated quantity, anticipated arrival Any person with knowledge of the information or, if the food is imported information, or planned shipment required information may submit prior by international mail, the U.S. recipient; information do not require resubmission notice for an article of food. Thus, the the importer, owner, and ultimate of prior notice after FDA has confirmed respondents to this information consignee, except for food imported by a prior notice submission for review collection may include importers, international mail or transshipped (§ 1.282(a)(1)(i) through (a)(1)(iii)). In owners, ultimate consignees, shippers, through the United States; the carrier the event that an article of food has been and carriers. and mode of transportation, except for refused admission under section FDA’s regulations require that prior food imported by international mail; 801(m)(1) or placed under hold under notice of imported food be submitted and planned shipment information, section 801(l) of the act, §§ 1.283(d) and electronically using CBP’s Automated except for food imported by 1.285(j) set forth the procedure for Broker Interface of the Automated international mail (§ 1.281). requesting FDA review and the Commercial System (ABI/ACS) Much of the information collected for information required to be included in (§ 1.280(a)(1)) or the FDA Prior Notice prior notice is identical to the a request for review. In the event that an (PN) System Interface (Form FDA 3540) information collected for FDA’s article of food has been placed under (§ 1.280(a)(2)). The term ‘‘Form FDA importer’s entry notice, which has been hold under section 801(l) of the act, 3540’’ refers to the electronic system approved under OMB control number § 1.285(i) sets forth the procedure for known as the FDA PN System Interface, 0910–0046. The information in FDA’s and the information to be included in a which is available at http:// importer’s entry notice is collected post-hold submission. www.access.fda.gov. Prior notice must electronically via CBP’s ABI/ACS at the In accordance with 5 CFR 1320.8(d), be submitted electronically using either same time the respondent files an entry in the Federal Register of March 16, ABI/ACS or the FDA PN System for import with CBP. To avoid double- 2010 (75 FR 12549), FDA published a Interface. Information collected by FDA counting the burden hours are already 60-day notice requesting public in the prior notice submission includes: accounted for in the importer’s entry comment on the proposed collection of The submitter and transmitter (if notice information collection, and the information. FDA received one letter, different from the submitter); entry type burden hour analysis in table 1 of this containing multiple comments, in and CBP identifier; the article of food, document reflects the reduced burden response to this notice. These comments including complete FDA product code; for prior notice submitted through ABI/ were outside the scope of the four the manufacturer, for an article of food ACS in the column labeled ‘‘Hours per collection of information topics on no longer in its natural state; the grower, Response.’’ which the notice solicits public if known, for an article of food that is In addition to submitting a prior comment and, thus, will not be in its natural state; the FDA Country of notice, a submitter should cancel a prior addressed here. Production; the shipper, except for food notice and must resubmit the FDA estimates the burden of this imported by international mail; the information if information changes after collection of information as follows:

TABLE 1.—ESTIMATED ANNUAL REPORTING BURDEN1

21 CFR FDA No. of Annual Frequency Total Annual Hours per Section No. Form No. Respondents per Response Responses Response Total Hours

Prior Notice Submissions

Prior Notice submitted through ABI/ACS

1.280 through 1.281 None 6,500 1,290 8,385,000 0.15 1,257,7502

Prior Notice submitted through PN System Interface

1.280 through 1.281 FDA 35403 21,500 73 1,569,500 0.37 580,715

New Prior Notice Submissions Subtotal 1,838,465

Prior Notice Cancellations

Prior Notice cancelled through ABI/ACS

1.282 FDA 3540 6,500 3 19,500 0.25 4,875

Prior Notice cancelled through PN System Interface

1.282 and 1.283(a)(5) FDA 3540 21,500 3 64,500 0.25 16,125

Prior Notice Cancellations Subtotal 21,000

Prior Notice Requests for Review and Post-hold Submissions

1.283(d) and 1.285(j) None 1 1 1 8 8

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TABLE 1.—ESTIMATED ANNUAL REPORTING BURDEN1—Continued

21 CFR FDA No. of Annual Frequency Total Annual Hours per Section No. Form No. Respondents per Response Responses Response Total Hours

1.285(i) None 1 1 1 1 1

Prior Notice Requests for Review and Post-hold Submissions Subtotal 9

Total Hours Annually 1,859,474 1 There are no capital costs or operating and maintenance costs associated with this collection of information. 2 To avoid double-counting, an estimated 396,416 burden hours already accounted for in the Importer’s Entry Notice information collection ap- proved under OMB control number 0910–0046 are not included in this total. 3The term ‘‘Form FDA 3540’’ refers to the electronic system known as the FDA PN System Interface, which is available at http:// www.access.fda.gov.

This estimate is based on FDA’s already counted in the information System Interface to be 15 minutes, or experience and the average number of collection approval for FDA’s importer’s 0.25 hours, per cancellation, for a total prior notice submissions, cancellations, entry notice, as previously discussed in burden of 16,125 hours. and requests for review received in the this document. FDA has not received any requests for past 3 years. FDA has also reduced its estimate of review under §§ 1.283(d) or 1.285(j) in On November 7, 2008, FDA and CBP the hours per response for prior notices the last 3 years (2007 through August issued the prior notice final rule (73 FR received through the PN System 26, 2009); therefore, the agency 66294), which finalized the prior notice Interface from 23 minutes to 22 minutes. estimates that one or fewer requests for interim final rule (IFR) (68 FR 58894, FDA received 1,744,287 prior notices review will be submitted annually. FDA October 10, 2003). From the IFR to the through the PN System Interface during estimates that it will take a requestor final rule, FDA removed a few of the 2007; 1,662,033 during 2008; and about 8 hours to prepare the factual and required prior notice data elements. 989,708 as of August 26, 2009. Based on legal information necessary to prepare a Specifically, submitters no longer need this experience, FDA estimates that request for review. Thus, FDA has to include the fax number of the approximately 21,500 registered users of estimated a total reporting burden of 8 submitter and transmitter, the the PN System Interface will submit an hours. anticipated border crossing, the country average of 73 prior notices annually, for FDA has not received any post-hold of the carrier, or the 6-digit HTS code a total of 1,569,500 prior notices submissions under § 1.285(i) in the last in their prior notices. Other changes received annually through the PN 3 years (2007 through August 26, 2009); include the addition of the registration System Interface. FDA estimates the therefore, the agency estimates that one number of the transshipper for articles reporting burden for a prior notice or fewer post-hold submissions will be of food for transshipment, storage and submitted through the PN System submitted annually. FDA estimates that export, or manipulation and export; Interface to be 22 minutes, or 0.366 it will take about 1 hour to prepare the flexibility in submitting the registration hours (rounded to 0.37 hours), per written notification described in number and the city and country of the notice, for a total burden of 580,715 § 1.285(i)(2)(i). Thus, FDA has estimated manufacturer and shipper instead of full hours. a total reporting burden of 1 hour. addresses of these entities; and the FDA received 16,215 cancellations of Dated: May 24, 2010. option of submitting the tracking prior notices through ABI/ACS during number for articles of food arriving by 2007; 16,673 during 2008; and 16,045 as Leslie Kux, express consignment instead of of August 26, 2009. Based on this Acting Assistant Commissioner for Policy. anticipated arrival information when experience, FDA estimates that [FR Doc. 2010–12866 Filed 5–27–10; 8:45 am] the prior notice is submitted through PN approximately 6,500 users of ABI/ACS BILLING CODE 4160–01–S System Interface (73 FR 66294 at will submit an average of 2.64 (rounded 66402). to 3) cancellations annually, for a total Accordingly, FDA has reduced its of 19,500 cancellations received DEPARTMENT OF HEALTH AND estimate of the hours per response for annually through ABI/ACS. FDA HUMAN SERVICES prior notices received through ABI/ACS estimates the reporting burden for a Administration for Children and from 10 minutes, or 0.167 hours, per cancellation submitted through ABI/ Families notice, to 9 minutes, or 0.15 hours, per ACS to be 15 minutes, or 0.25 hours, per notice. FDA received 8,144,419 prior cancellation, for a total burden of 4,875 Office of Administration; Matching notices through ABI/ACS during 2007; hours. Requirements on Grants Awarded 8,266,200 during 2008; and 5,221,549 as FDA received 58,345 cancellations of Under Children’s Bureau Funding of August 26, 2009. Based on this prior notices through the PN System Opportunity Announcement for Fiscal experience, FDA estimates that Interface during 2007; 63,779 during Year 2010 approximately 6,500 users of ABI/ACS 2008; and 55,019 as of August 26, 2009. will submit an average of 1,290 prior Based on this experience, FDA estimates AGENCY: Division of Grants Policy, notices annually, for a total of 8,385,000 that approximately 21,500 registered Office of Financial Services, Office of prior notices received annually through users of the PN System Interface will Administration, Administration for ABI/ACS. FDA estimates the reporting submit an average of 3.24 (rounded to 3) Children and Families (ACF), burden for a prior notice submitted cancellations annually, for a total of Department of Health and Human through ABI/ACS to be 9 minutes, or 64,500 cancellations received annually Services (HHS). 0.15 hours, per notice, for a total burden through the PN System Interface. FDA ACTION: Notice. of 1,257,750 hours. This estimate takes estimates the reporting burden for a into consideration the burden hours cancellation submitted through the PN CFDA Number: 93.648.

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Legislative Authority: Section 426 of gives notice to the public that the opportunity announcement for Fiscal the Social Security Act [42 U.S.C. following program within the Agency Year 2010: 626(a)(2)]. will administratively impose a matching SUMMARY: The Administration for requirement on grants awarded under Children and Families (ACF) hereby the following program title and funding

Funding oppor- Funding oppor- Fiscal CFDA Composition of Program office tunity number tunity title year Program title number Match percentage match

Administration for HHS–2010–ACF– Initiative to Re- 2010 Child Welfare 93.648 10 percent of Cash and In-Kind. Children, Youth ACYF–CA– duce Long- Training. Total Approved and Families— 0022. Term Foster Project Cost. Children’s Bu- Care. reau.

Historically, ACF has found that the found on the Grants Forecast Web site Time: 9 a.m. to 5 p.m. imposition of a matching requirement at http://www.hhs.gov/grantsforecast/. Agenda: To review and evaluate contract on awards under certain programs result Published ACF funding opportunity proposals. in an increased level of community announcements are available on http:// Place: Bethesda Marriott Suites, 6711 www.Grants.gov and on the ACF Grant Democracy Boulevard, Bethesda, MD 20817. support and, often, a higher profile in Contact Person: Carol J. Goter-Robinson, the community. This can contribute to Opportunities Web page at http:// PhD, Scientific Review Officer, Review the success and sustainability of the www.acf.hhs.gov/grants/index.html. Branch, DEA, NIDDK, National Institutes of project. The Fiscal Year 2010 funding FOR FURTHER INFORMATION CONTACT: Health, Room 748, 6707 Democracy opportunity announcement for the Karen Shields, Grants Policy Specialist, Boulevard, Bethesda, MD 20892–5452, (301) Initiative to Reduce Long-Term Foster Office of Administration, Division of 594–7791, Care program will advise applicants on Grants Policy, 370 L’Enfant Promenade, [email protected]. the percentage of funds that must be SW., 6th Floor East, Washington, DC This notice is being published less than 15 contributed through non-Federal 20447, or by telephone at 202–401–5112 days prior to the meeting due to the timing or [email protected]. limitations imposed by the review and resources, the composition of the match, funding cycle. and whether the merit of the match will February 24, 2010. (Catalogue of Federal Domestic Assistance be taken into consideration as a Tony Hardy, Program Nos. 93.847, Diabetes, criterion in the competitive review. The Acting Deputy Assistant Secretary for Endocrinology and Metabolic Research; administratively imposed matching Administration, Administration for Children 93.848, Digestive Diseases and Nutrition requirement will apply only to new and Families. Research; 93.849, Kidney Diseases, Urology grants and their continuation grants, [FR Doc. 2010–12826 Filed 5–27–10; 8:45 am] and Hematology Research, National Institutes of Health, HHS) awarded under funding opportunity BILLING CODE 4184–01–P announcement HHS–2010–ACF–ACYF– Dated: May 24, 2010. CA–0022. Jennifer Spaeth, This matching requirement does not DEPARTMENT OF HEALTH AND Director, Office of Federal Advisory represent an addition to any existing HUMAN SERVICES Committee Policy. matching requirements on awards made [FR Doc. 2010–12923 Filed 5–27–10; 8:45 am] under other funding opportunity National Institutes of Health announcements issued in Fiscal Year BILLING CODE 4140–01–P 2008 or before. The amount and National Institute of Diabetes and acceptable types of non-Federal Digestive and Kidney Diseases; Notice of Closed Meeting DEPARTMENT OF HEALTH AND resources allowed is not negotiable. HUMAN SERVICES However, matching may be provided as Pursuant to section 10(d) of the direct or indirect costs. Specific Federal Advisory Committee Act, as National Institutes of Health information related to the matching amended (5 U.S.C. App.), notice is requirement and the competitive review hereby given of the following meeting. National Center for Complementary process will be provided in the The meeting will be closed to the and Alternative Medicine; Notice of published funding opportunity public in accordance with the Closed Meetings announcement. Any unmatched Federal provisions set forth in sections funds will be disallowed. Costs borne by 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Pursuant to section 10(d) of the matching contributions are subject to as amended. The contract proposals and Federal Advisory Committee Act, as the regulations governing allowability the discussions could disclose amended (5 U.S.C. App.), notice is found under 45 CFR 74.23 and 45 CFR confidential trade secrets or commercial hereby given of the following meetings. 92.24. property such as patentable material, The meetings will be closed to the Notices of planned grant and personal information concerning public in accordance with the opportunities proposed by HHS’s individuals associated with the contract provisions set forth in sections Operating Divisions are available at the proposals, the disclosure of which 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., HHS Forecast Web site. Each Forecast would constitute a clearly unwarranted as amended. The grant applications and record contains actual or estimated invasion of personal privacy. the discussions could disclose dates and funding levels for grants that confidential trade secrets or commercial Name of Committee: National Institute of the agency intends to award during the Diabetes and Digestive and Kidney Diseases property such as patentable material, fiscal year. Additional details about Special Emphasis Panel; K–12 Diabetes and personal information concerning ACF planned FY 2010 funding Prevention Curriculum Development. individuals associated with the grant opportunity announcements can be Date: June 16, 2010. applications, the disclosure of which

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would constitute a clearly unwarranted amended (5 U.S.C. App.), notice is amended (5 U.S.C. App.), notice is invasion of personal privacy. hereby given of the following meetings. hereby given of the following meeting. Name of Committee: National Center for The meetings will be closed to the The meeting will be closed to the Complementary and Alternative Medicine public in accordance with the public in accordance with the Special Emphasis Panel; Education Panel. provisions set forth in sections provisions set forth in sections Date: June 24–25, 2010. 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., Time: 5:30 p.m. to 5 p.m. as amended. The grant applications and as amended. The grant applications and Agenda: To review and evaluate grant the discussions could disclose the discussions could disclose applications, confidential trade secrets or commercial confidential trade secrets or commercial Place: Hotel Monaco, 700 F Street, NW., property such as patentable material, property such as patentable material, Washington, DC 20001. and personal information concerning and personal information concerning Contact Person: Peter Kozel, PhD, individuals associated with the grant Scientific Review Officer, NCCAM, 6707 individuals associated with the grant Democracy Boulevard, Suite 401, Bethesda, applications, the disclosure of which applications, the disclosure of which MD 20892–5475, 301–496–8004, would constitute a clearly unwarranted would constitute a clearly unwarranted [email protected]. invasion of personal privacy. invasion of personal privacy. Name of Committee: National Center for Name of Committee: National Institute of Name of Committee: National Center for Complementary and Alternative Medicine Allergy and Infectious Diseases Special Research Resources Special Emphasis Panel; Special Emphasis Panel; RFA AT–01–001 Emphasis Panel; NIAID Science Education Research on Integrity in Collaborative ‘‘Translational Tools For Clinical Studies of Awards. Research. CAM Interventions’’. Date: June 23, 2010. Date: July 15, 2010. Date: June 28–29, 2010. Time: 11 a.m. to 1 p.m. Time: 8 a.m. to 5 p.m. Time: 7 a.m. to 12 p.m. Agenda: To review and evaluate grant Agenda: To review and evaluate grant Agenda: To review and evaluate grant applications. applications. applications. Place: National Institutes of Health, 6700B Place: Hilton Rockville, 1750 Rockville Place: Bethesda Marriott Suites, 5151 Rockledge Drive, Bethesda, MD 20817. Pike, Roosevelt, Rockville, MD 20852. Pooks Hill Road, Bethesda, MD 20814. Contact Person: Nancy Lewis Ernst, PhD, Contact Person: Barbara J. Nelson, PhD, Contact Person: Ray Bramhall, PhD, Scientific Review Official, Scientific Review Scientific Review Officer, Office of Review, Scientific Review Officer, National Center for Program, Division of Extramural Activities, NCRR, National Institutes of Health, 6701 Complementary and Alternative Medicine, National Institutes of Health/NIAID, 6700B Democracy Blvd., 1 Democracy Plaza, Room 6707 Democracy Blvd., Suite 401, Bethesda, Rockledge Drive, MSC 7616, Bethesda, MD 1080, MSC 4874, Bethesda, MD 20892–4874, 20892–7616, 301–451–7383, MD 20892, 301–451–6570, 301–435–0806. [email protected]. [email protected]. (Catalogue of Federal Domestic Assistance Name of Committee: Microbiology, Name of Committee: National Center for Program Nos. 93.306, Comparative Medicine; Infectious Diseases and AIDS Initial Review Complementary and Alternative Medicine 93.333, Clinical Research; 93.371, Biomedical Group; Acquired Immunodeficiency Special Emphasis Panel; PA–10–067 Technology; 93.389, Research Infrastructure; Syndrome Research Review Committee. ‘‘Research Project Grant (Parent R01) 93.306, 93.333, 93.702, ARRA Related Date: July 14, 2010. Date: June 29, 2010. Construction Awards; National Institutes of Time: 8 a.m. to 5 p.m. Time: 1 p.m. to 5 p.m. Health, HHS) Agenda: To review and evaluate grant Agenda: To review and evaluate grant applications. Dated: May 24, 2010. applications. Place: Hyatt Regency Bethesda, One Place: Bethesda Marriott Suites, 5151 Jennifer Spaeth, Bethesda Metro Center, 7400 Wisconsin Pooks Hill Road, Bethesda, MD 20814. Director, Office of Federal Advisory Avenue, Bethesda, MD 20814. Contact Person: Ray Bramhall, PhD, Committee Policy. Contact Person: Sujata Vijh, PhD, Scientific Scientific Review Officer, National Center for Review Officer, Scientific Review Program, [FR Doc. 2010–12941 Filed 5–27–10; 8:45 am] Complementary and Alternative Medicine, Division of Extramural Activities, National BILLING CODE 4140–01–P 6707 Democracy Blvd., Suite 401, Bethesda, Institutes of Health/NIAID, 6700B Rockledge MD 20892, 301–451–6570, Drive, MSC 7616, Bethesda, MD 20892–7616, [email protected]. 301–594–0985, [email protected]. DEPARTMENT OF HEALTH AND (Catalogue of Federal Domestic Assistance (Catalogue of Federal Domestic Assistance HUMAN SERVICES Program Nos. 93.213, Research and Training Program Nos. 93.855, Allergy, Immunology, in Complementary and Alternative Medicine, and Transplantation Research; 93.856, Centers for Disease Control and National Institutes of Health, HHS) Microbiology and Infectious Diseases Prevention Dated: May 21, 2010. Research, National Institutes of Health, HHS) Disease, Disability, and Injury Jennifer Spaeth, Dated: May 24, 2010. Prevention and Control Director, Office of Federal Advisory Jennifer Spaeth, Committee Policy. Director, Office of Federal Advisory Special Emphasis Panel (SEP): [FR Doc. 2010–12924 Filed 5–27–10; 8:45 am] Committee Policy. Member Conflict Review, Program BILLING CODE 4140–01–P [FR Doc. 2010–12938 Filed 5–27–10; 8:45 am] Announcement (PA) 07–318, Initial BILLING CODE 4140–01–P Review DEPARTMENT OF HEALTH AND In accordance with Section 10(a)(2) of HUMAN SERVICES the Federal Advisory Committee Act DEPARTMENT OF HEALTH AND (Pub. L. 92–463), the Centers for Disease National Institutes of Health HUMAN SERVICES Control and Prevention (CDC) announces the aforementioned meeting: National Institute of Allergy and National Institutes of Health Time and Date: 1:30 p.m.–3 p.m., July 28, Infectious Diseases; Notice of Closed National Center for Research 2010 (Closed). Meetings Resources; Notice of Closed Meeting Place: National Institute for Occupational Safety and Health (NIOSH), CDC, 1095 Pursuant to section 10(d) of the Pursuant to section 10(d) of the Willowdale Road, Morgantown, West Federal Advisory Committee Act, as Federal Advisory Committee Act, as Virginia 26506, telephone: (304) 285–6143.

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Status: The meeting will be closed to the Acquired Pneumonia during the Deadline for Submitting Requests for public in accordance with provisions set Influenza Season, FOA IP10–007’’. Special Accommodations: Requests for forth in Section 552b(c) (4) and (6), Title 5 Contact Person for More Information: special accommodations must be U.S.C., and the Determination of the Director, Gregory Anderson, M.S., M.P.H., received no later than 5 p.m., E.S.T. on Management Analysis and Services Office, Scientific Review Officer, CDC, 1600 CDC, pursuant to Public Law 92–463. July 16, 2010. Matters to be Discussed: The meeting will Clifton Road, NE., Mailstop E60, Deadline for Submission of Written include the initial review, discussion, and Atlanta, GA 30333, Telephone: (404) Comments: Interested parties may evaluation of ‘‘Member Conflict Review, PA 498–2293. submit written comments on the 07–318.’’ The Director, Management Analysis proposed payment determinations by Contact Person for More Information: M. and Services Office, has been delegated September 24, 2010, to the address Chris Langub, PhD, Scientific Review the authority to sign Federal Register specified in the ADDRESSES section of Administrator, Office of Extramural notices pertaining to announcements of this notice. Programs, National Institute for Occupational meetings and other committee ADDRESSES: The public meeting will be Safety and Health, CDC, 1600 Clifton Road, management activities, for both CDC NE., Mailstop E74, Atlanta, Georgia 30333; held in the main auditorium of the and the Agency for Toxic Substances central building of the Centers for Telephone: (404)498–2543. and Disease Registry. The Director, Management Analysis and Medicare & Medicaid Services (CMS), Services Office, has been delegated the Dated: May 20, 2010. 7500 Security Boulevard, Baltimore, authority to sign Federal Register notices Elaine L. Baker, Maryland 21244–1850. pertaining to announcements of meetings and Director, Management Analysis and Services FOR FURTHER INFORMATION CONTACT: other committee management activities, for Office, Centers for Disease Control and Glenn McGuirk, (410) 786–5723. both CDC and the Agency for Toxic Prevention. Substances and Disease Registry. SUPPLEMENTARY INFORMATION: [FR Doc. 2010–12827 Filed 5–27–10; 8:45 am] Dated: May 20, 2010. BILLING CODE 4163–18–P I. Background Elaine L. Baker, Section 531(b) of the Medicare, Director, Management Analysis and Services Medicaid, and SCHIP Benefits Office, Centers for Disease Control and DEPARTMENT OF HEALTH AND Improvement and Protection Act of Prevention. HUMAN SERVICES 2000 (BIPA) (Pub. L. 106–554) requires [FR Doc. 2010–12829 Filed 5–27–10; 8:45 am] Centers for Medicare & Medicaid the Secretary to establish procedures for BILLING CODE 4163–18–P Services coding and payment determinations for new clinical diagnostic laboratory tests [CMS–1340–N] under Part B of title XVIII of the Social DEPARTMENT OF HEALTH AND Security Act (the Act) that permit public HUMAN SERVICES Medicare Program; Public Meeting in consultation in a manner consistent Calendar Year 2010 for New Clinical with the procedures established for Centers for Disease Control and Laboratory Tests Payment Prevention implementing coding modifications for Determinations International Classification of Diseases Disease, Disability, and Injury AGENCY: Centers for Medicare & (ICD–9–CM). The procedures and public Prevention and Control Medicaid Services (CMS), HHS. meeting announced in this notice for ACTION: Notice. new clinical laboratory tests are in Special Emphasis Panel (SEP): accordance with the procedures Effectiveness of Empiric Antiviral SUMMARY: This notice announces a published on November 23, 2001 in the Treatment for Hospitalized Community public meeting to receive comments and Federal Register (66 FR 58743) to Acquired Pneumonia during the recommendations (including implement section 531(b) of BIPA. Influenza Season, Funding Opportunity accompanying data on which Section 942(b) of the Medicare Announcement (FOA) IP10–007, Initial recommendations are based) from the Prescription Drug, Improvement, and Review public on the appropriate basis for Modernization Act of 2003 (MMA) (Pub. In accordance with Section 10(a)(2) of establishing payment amounts for a L. 108–173) added section 1833(h)(8) of the Federal Advisory Committee Act specified list of new Clinical Procedural the Act. Section 1833(h)(8)(A) of the Act (Pub. L. 92–463), the Centers for Disease Terminology (CPT) codes for clinical states that such new tests are any Control and Prevention (CDC) laboratory tests in calendar year (CY) clinical diagnostic laboratory tests with announces the aforementioned meeting: 2011. The meeting provides a forum for respect to which a new or substantially Time and Date: 12 p.m.–2 p.m., June interested parties to make presentations revised Healthcare Common Procedures 15, 2010 (Closed). and submit written comments on the Coding System (HCPCS) code is Place: Teleconference. new codes that will be included in assigned on or after January 1, 2005 Status: The meeting will be closed to Medicare’s Clinical Laboratory Fee (hereinafter referred to as, ‘‘new test’’ or the public in accordance with Schedule for CY 2011, which will be ‘‘new clinical laboratory test’’). Section provisions set forth in Section 552b(c) effective on January 1, 2011. The 1833(h)(8)(B) of the Act sets forth the (4) and (6), Title 5 U.S.C., and the development of the codes for clinical methods for determining payment bases Determination of the Director, laboratory tests is largely performed by for new tests. Pertinent to this notice, Management Analysis and Services the CPT Editorial Panel and will not be section 1833(h)(8)(B)(i) and (ii) of the Office, CDC, pursuant to Public Law 92– further discussed at the meeting. Act requires the Secretary to make 463. DATES: Meeting Date: The public available to the public a list that Matters to be Discussed: The meeting meeting is scheduled for Thursday, July includes new tests for which will include the initial review, 22, 2010 from 9 a.m. to 2 p.m., Eastern establishment of a payment amount is discussion, and evaluation of Standard Time (E.S.T.). being considered for a year and, on the applications received in response to Deadline for Registration of same day that the list is made available, ‘‘Effectiveness of Empiric Antiviral Presenters: All presenters for the public to publish in the Federal Register a Treatment for Hospitalized Community meeting must register by July 16, 2010. notice of a meeting to receive comments

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and recommendations (including to the public. The on-site check-in for on our Web site in October 2010. Each accompanying data on which visitors will be held from 8:30 a.m., determination will include a rationale, recommendations are based) from the E.S.T. to 9 a.m., E.S.T., followed by data on which the determination is public on the appropriate basis for opening remarks. Registered persons based, and responses to comments and establishing payment amounts for new from the public may discuss and suggestions received from the public. tests. Section 1833(h)(8)(B)(iii) of the recommend payment determinations for After the final payment Act requires that we convene a public specific new test codes for the CY 2011 determinations have been posted on our meeting not less than 30 days after Clinical Laboratory Fee Schedule. Web site, the public may request publication of the notice in the Federal Presentations must be brief and reconsideration of the payment Register. These requirements are accompanied by three written copies. determinations as set forth in 42 CFR codified at 42 CFR part 414, subpart G. CMS recommends that presenters make 414.509. We also refer readers to the A newly created Current Procedural copies available for approximately 50 November 27, 2007 final rule (72 FR Terminology (CPT) code can represent meeting participants, since CMS will 66275 through 66280). either a refinement or modification of not be providing additional copies. existing test methods, or a substantially Before the annual meeting on July 22, III. Registration Instructions new test method. The preliminary list of 2010, presentations must also be The Division of Ambulatory Services newly created CPT codes for calendar electronically submitted to CMS on or in CMS is coordinating the public year (CY) 2011 will be published on our before July 2, 2010. Presentations meeting registration. Beginning June 22, Web site at http://www.cms.hhs.gov/ should be sent via e-mail to Glenn 2010, registration may be completed on- ClinicalLabFeeSched upon publication McGuirk, at line at the following Web address: of this notice in the Federal Register. [email protected]. Once the http://www.cms.hhs.gov/ Two methods are used to establish presentations are collected, CMS will ClinicalLabFeeSched. The following payment amounts for new tests post them on the Clinical Laboratory information must be submitted when included in the CY 2011 Clinical Web site at http://www.cms.hhs.gov/ registering: Laboratory Fee Schedule. The first ClinicalLabFeeSched. Presenters should • Name; method, called ‘‘cross-walking,’’ is used address the following items: • Company name; when a new test is determined to be • New test code(s) and descriptor; • Address; comparable to an existing test, multiple • Test purpose and method; • Telephone number(s); and existing test codes, or a portion of an • Costs; • E-mail address(es). existing test code. The new test code is • Charges; and When registering, individuals who then assigned to the related existing • Make a recommendation with want to make a presentation must also local fee schedule amounts and the rationale for one of two methods (cross- specify on which new clinical related existing national limitation walking or gap-fill) for determining laboratory test code(s) they will be amount. Payment for the new test is payment for new tests. presenting comments. A confirmation made at the lesser of the local fee Additionally, the presenters should will be sent upon receipt of the schedule amount or the national provide the data on which their registration. Individuals must register by limitation amount. recommendations are based. the date specified in the DATES section The second method, called ‘‘gap- Presentations that do not address the of this notice. filling,’’ is used when no comparable above five items may be considered existing test is available. When using incomplete and may not be considered IV. Security, Building, and Parking this method, instructions are provided by CMS when making a payment Guidelines to each Medicare carrier or Part A and determination. CMS may request The meeting will be held in a Federal Part B Medicare Administrative missing information following the government building; therefore, Federal Contractor (MAC) to determine a meeting in order to prevent a security measures are applicable. In payment amount for its geographic recommendation from being considered planning your arrival time, we area(s) for use in the first year. These incomplete. recommend allowing additional time to determinations are based on the A summary of the proposed new test clear security. It is suggested that you following sources of information, if codes and the payment arrive at the CMS facility between 8:15 available: Charges for the test and recommendations that are presented a.m and 8:30 a.m., E.S.T. so that you routine discounts to charges; resources during the public meeting will be will be able to arrive promptly at the required to perform the test; payment posted on the CMS Web site by early meeting by 9 a.m., E.S.T. Individuals amounts determined by other payers; September 2010 and can be accessed at who are not registered in advance will and charges, payment amounts, and http://www.cms.hhs.gov/ not be permitted to enter the building resources required for other tests that ClinicalLabFeeSched. and will be unable to attend the may be comparable or otherwise In addition, the summary on the CMS meeting. The public may not enter the relevant. The carrier-specific amounts Web site will also include a list of all building earlier than 8:15 a.m., E.S.T. are used to establish a national comments received by August 6, 2010 (45 minutes before the convening of the limitation amount for the following (15 days after the meeting). The meeting). years. For each new clinical laboratory summary will also display our proposed Security measures include the test code, a determination must be made payment determinations, an explanation following: to either cross-walk or gap-fill. of the reasons for each determination, • Presentation of government-issued and the data on which the photographic identification to the II. Format determinations are based. Interested Federal Protective Service or Guard This meeting to receive comments parties may submit written comments Service personnel. Persons without and recommendations (including on the proposed payment proper identification may be denied accompanying data on which determinations by September 24, 2010, access to the building. recommendations are based) on the to the address specified in the • Interior and exterior inspection of appropriate payment basis for the ADDRESSES section of this notice. Final vehicles (this includes engine and trunk specified list of new CPT codes is open payment determinations will be posted inspection) at the entrance to the

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grounds. Parking permits and Medicare Education (the Panel) in requiring the Secretary to provide instructions will be issued after the accordance with the Federal Advisory informational materials to Medicare vehicle inspection. Committee Act. The Panel advises and beneficiaries about the Medicare • Passing through a metal detector makes recommendations to the program, and section 1851(d) of the Act, and inspection of items brought into the Secretary of Health and Human Services requiring the Secretary to provide for building. We note that all items brought and the Administrator of the Centers for ‘‘activities * * * to broadly disseminate to CMS, whether personal or for the Medicare & Medicaid Services on information to [M]edicare beneficiaries purpose of demonstration or to support opportunities to enhance the * * * on the coverage options provided a demonstration, are subject to effectiveness of consumer education under [Medicare Advantage] in order to inspection. We cannot assume strategies concerning the Medicare promote an active, informed selection responsibility for coordinating the program. This meeting is open to the among such options.’’ receipt, transfer, transport, storage, set- public. The Panel is also authorized by up, safety, or timely arrival of any DATES: Meeting Date: Tuesday, June 22, section 1114(f) of the Act (42 U.S.C. personal belongings or items used for 2010 from 8:30 a.m. to 3 p.m., eastern 1311(f)) and section 222 of the Public demonstration or to support a daylight time (e.d.t.). Health Service Act (42 U.S.C. 217a). The demonstration. Deadline for Meeting Registration, Secretary signed the charter establishing this Panel on January 21, 1999 (64 FR V. Special Accommodations Presentations and Comments: Tuesday, June 15, 2010, 5 p.m., e.d.t. 7899, February 17, 1999) and approved Individuals attending the meeting Deadline for Requesting Special the renewal of the charter on January 21, who are hearing or visually impaired Accommodations: Tuesday, June 8, 2009 (74 FR 13442, March 27, 2009). and have special requirements, or a 2009, 5 p.m., e.d.t. The Panel advises and makes condition that requires special ADDRESSES: Meeting Location: Hilton recommendations to the Secretary and assistance, should provide the Washington Hotel Embassy Row, 2015 the Administrator of the Centers for information upon registering for the Massachusetts Avenue, NW., Medicare & Medicaid Services (CMS) on meeting. The deadline for such Washington, DC 20036. opportunities to enhance the registrations is listed in the DATES Meeting Registration, Presentations, effectiveness of consumer education section of this notice. and Written Comments: Cindy Falconi, strategies concerning the Medicare program. VI. Collection of Information Acting Designated Federal Official (DFO), Division of Forum and The goals of the Panel are as follows: Requirements • To provide recommendations on Conference Development, Office of This document does not impose the development and implementation of External Affairs, Centers for Medicare & information collection and a national Medicare education program Medicaid Services, 7500 Security recordkeeping requirements. that describes benefit options under Boulevard, Mailstop S1–13–05, Consequently, it need not be reviewed Medicare. Baltimore, MD 21244–1850 or contact by the Office of Management and • To enhance the Federal Ms. Falconi via e-mail at Budget under the authority of the government’s effectiveness in informing [email protected]. the Medicare consumer. Paperwork Reduction Act of 1995 (44 Registration: The meeting is open to U.S.C. 35). • To make recommendations on how the public, but attendance is limited to to expand outreach to vulnerable and (Catalog of Federal Domestic Assistance the space available. Persons wishing to Program No. 93.773, Medicare—Hospital underserved communities, including attend this meeting must register by racial and ethnic minorities, in the Insurance; and Program No. 93.774, contacting the DFO at the address listed Medicare—Supplementary Medical context of a national Medicare in the ADDRESSES section of this notice Insurance Program) education program. or by telephone at number listed in the • To assemble an information base of Dated: May 7, 2010. FOR FURTHER INFORMATION CONTACT best practices for helping consumers Marilyn Tavenner, section of this notice, by the date listed evaluate benefit options and build a Acting Administrator and Chief Operating in the DATES section of this notice. community infrastructure for Officer, Centers for Medicare & Medicaid FOR FURTHER INFORMATION CONTACT: information, counseling, and assistance. Services. Cindy Falconi, (410) 786–6452. Please The current members of the Panel are: [FR Doc. 2010–12458 Filed 5–27–10; 8:45 am] refer to the CMS Advisory Committees’ Gwendolyn T. Bronson, SHINE/SHIP BILLING CODE 4120–01–P Information Line (1–877–449–5659 toll Counselor, Massachusetts SHINE free)/(410–786–9379 local) or the Program; Yanira Cruz, PhD, President Internet (http://www.cms.hhs.gov/ and Chief Executive Officer, National DEPARTMENT OF HEALTH AND FACA/04_APME.asp) for additional Hispanic Council on Aging; Stephen P. HUMAN SERVICES information and updates on committee Fera, M.B.A., Vice President, Social Centers for Medicare & Medicaid activities. Press inquiries are handled Mission Programs, Independence Blue Services through the CMS Press Office at (202) Cross; Nan-Kirsten Forte, Executive Vice 690–6145. President, Consumer Services, WebMD; [CMS–7018–N] SUPPLEMENTARY INFORMATION: Section Richard C. Frank, M.D., Director, Cancer 9(a)(2) of the Federal Advisory Research, Whittingham Cancer Center; Medicare Program; Meeting of the Committee Act authorizes the Secretary Cathy C. Graeff, R.Ph., M.B.A., Partner, Advisory Panel on Medicare Education of Health and Human Services (the Sonora Advisory Group; Carmen R. June 22, 2010. Secretary) to establish an advisory panel Green, M.D., Professor, Anesthesiology AGENCY: Centers for Medicare & if the Secretary determines that the and Associate Professor, Health, Medicaid Services (CMS), HHS. panel is ‘‘in the public interest in Management, and Policy, University of ACTION: Notice of meeting. connection with the performance of Michigan; Jessie C. Gruman, PhD, duties imposed * * * by law.’’ Such President, Center for Advancing Health; SUMMARY: This notice announces a duties are imposed by section 1804 of Cindy Hounsell, J.D., President, meeting of the Advisory Panel on the Social Security Act (the Act), Women’s Institute for a Secure

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Retirement; Kathy Hughes, Vice of Pub. L. 92–463 (5 U.S.C. App. 2, sec. 10(a) both CDC and the Agency for Toxic Chairwoman, Oneida Nation; Gail Hunt, and 41 CFR 102–3). Substance and Disease Registry. President and Chief Executive Officer, (Catalog of Federal Domestic Assistance Dated: May 20, 2010. National Alliance for Caregiving; Program No. 93.733, Medicare—Hospital Elaine L. Baker, Insurance Program; and Program No. 93.774, Warren Jones, M.D., F.A.A.F.P., Director, Management Analysis and Services Medicare—Supplementary Medical Executive Director, Mississippi Institute Office, Centers for Disease Control and Insurance Program) for Improvement of Geographic Prevention. Minority Health; Sandy Markwood, Dated: May 13, 2010. [FR Doc. 2010–12818 Filed 5–27–10; 8:45 am] Chief Executive Officer, National Marilyn Tavenner, BILLING CODE 4160–18–P Association of Area Agencies on Aging; Acting Administrator, Centers for Medicare David W. Roberts, M.P.A., Vice & Medicaid Services. President, Government Relations, [FR Doc. 2010–12457 Filed 5–27–10; 8:45 am] DEPARTMENT OF HEALTH AND Healthcare Information and BILLING CODE 4120–01–P HUMAN SERVICES Management System Society; Julie Boden Schmidt, M.S., Associate Vice Centers for Disease Control and President, Training and Technical DEPARTMENT OF HEALTH AND Prevention Assistance, National Association of HUMAN SERVICES Community Health Centers; Rebecca P. Partnerships To Advance the National Snead, Chief Executive Officer and Centers for Disease Control and Occupational Research Agenda Executive Vice President, National Prevention (NORA) Alliance of State Pharmacy Associations AGENCY: The National Institute for and APME Chair; Donna Yee, PhD, Advisory Committee on Immunization Occupational Safety and Health Chief Executive Officer, Asian Practices (ACIP) (NIOSH) of the Centers for Disease Community Center of Sacramento In accordance with section 10(a)(2) of Valley; Deeanna Jang, Policy Director, Control and Prevention (CDC), the Federal Advisory Committee Act Department of Health and Human Asian and Pacific Islander American (Pub. L. 92–463), the Centers for Disease Health Forum; Andrew Kramer, M.D., Services (HHS). Control and Prevention (CDC) ACTION: Notice of public meeting. Professor of Medicine, Division of announces the following meeting of the Health Care Policy and Research, aforementioned committee: SUMMARY: The National Institute for University of Colorado, Denver; John Occupational Safety and Health Lui, PhD, M.B.A., Executive Director, Times and Dates: (NIOSH) of the Centers for Disease Stout Vocational Rehabilitation 8 a.m.–6 p.m., June 23, 2010. Control and Prevention (CDC) Institute. 8 a.m.–3 p.m., June 24, 2010. The agenda for the June 22, 2010 Place: CDC, Tom Harkin Global announces the following public Communications Center, 1600 Clifton Road, ‘‘ meeting will include the following: meeting: Partnerships to Advance the • NE., Building 19, Kent ‘‘Oz’’ Nelson National Occupational Research Agenda Recap of the previous (March 31, Auditorium, Atlanta, Georgia 30333. 2010) meeting. (NORA)’’. • Status: Open to the public, limited only by Public Meeting Time and Date: Subgroup Committee Work the space available. Summary. Purpose: The committee is charged with 10 a.m.–4 p.m. EDT, June 16, 2010. • Medicare Outreach and Education advising the Director, CDC, on the Place: Patriots Plaza, 395 E. Street, Strategies. appropriate uses of immunizing agents. In SW., Conference Room 9000, • Public Comment. addition, under 42 U.S.C. 1396s, the Washington, DC 20201. • Listening Session with CMS committee is mandated to establish and Purpose of Meeting: The National Leadership. periodically review and, as appropriate, Occupational Research Agenda (NORA) • Next Steps. revise the list of vaccines for administration has been structured to engage partners Individuals or organizations that wish to vaccine-eligible children through the with each other and/or with NIOSH to to make a 5-minute oral presentation on Vaccines for Children (VFC) program, along advance NORA priorities. The NORA with schedules regarding the appropriate an agenda topic should submit a written periodicity, dosage, and contraindications Liaison Committee continues to be an copy of the oral presentation to the DFO applicable to the vaccines. opportunity for representatives from at the address listed in the ADDRESSES Matters To Be Discussed: The agenda will organizations with national scope to section of this notice by the date listed include discussions on: Evidence based learn about NORA progress and to in the DATES section of this notice. The recommendations; human papillomavirus suggest possible partnerships based on number of oral presentations may be (HPV) vaccines; 13-valent pneumococcal their organization’s mission and limited by the time available. conjugate vaccine; meningococcal vaccine; contacts. This opportunity is now Individuals not wishing to make a hepatitis vaccines; a vaccine supply update; structured as a public meeting via the presentation may submit written respiratory syncytial virus immunoprophylaxis vaccine; rotavirus internet to attract participation by a comments to the DFO at the address vaccines; pertussis vaccine; and influenza larger number of organizations and to listed in the ADDRESSES section of this vaccines. Agenda items are subject to change further enhance the success of NORA. notice by the date listed in the DATES as priorities dictate. Some of the types of organizations of section of this notice. Contact Person for More Information: national scope that are especially Individuals requiring sign language Antonette Hill, Immunization Services encouraged to participate are employers, interpretation or other special Division, National Center for Immunization unions, trade associations, labor accommodations should contact the and Respiratory Diseases, CDC, 1600 Clifton associations, professional associations, DFO at the address listed in the Road, NE., (E–05), Atlanta, Georgia 30333, and foundations. Others are welcome. ADDRESSES section of this notice by the telephone 404/639–8836, fax 404/639–8905. The Director, Management Analysis and This meeting will include updates date listed in the DATES section of this Services Office, has been delegated the from NIOSH leadership on NORA as notice. authority to sign Federal Register notices well as updates from approximately half Authority: Sec. 222 of the Public Health pertaining to announcements of meetings and of the NORA Sector Councils on their Service Act (42 U.S.C. 217a) and sec. 10(a) other committee management activities for progress, priorities, and implementation

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plans to date, including the NORA research and moving the results into 1–800–741–8138 (301–443–0572 in the Construction, Manufacturing, Public widespread practice. During 2008–2009, Washington, DC area), code Safety, Services, and Wholesale and most of these Councils have posted draft 3014512542. Please call the Information Retail Trade Councils. Updates will also strategic plans for public comment. Line for up-to-date information on this be given on cross-sector activities in the Seven have posted finalized National meeting. A notice in the Federal areas of Healthy People 2020 and the Sector Agendas after considering Register about last minute modifications WorkLife Initiative. After each update, comments on the drafts. For more that impact a previously announced there will be time to discuss partnership information, see the link above and advisory committee meeting cannot opportunities. choose ‘‘Sector-based Approach,’’ always be published quickly enough to Status: The meeting is open to the ‘‘NORA Sector Councils,’’ ‘‘Sector provide timely notice. Therefore, you public, limited only by the capacities of Agendas’’ and ‘‘Comment on Draft Sector should always check the agency’s Web the conference call and conference room Agendas’’ from the right-side menu. site and call the appropriate advisory facilities. There is limited space FOR FURTHER INFORMATION CONTACT: committee hot line/phone line to learn available in the meeting room (capacity Sidney C. Soderholm, PhD, NORA about possible modifications before 34). Therefore, information to allow Coordinator, E-mail coming to the meeting. participation in the meeting through the [email protected], telephone Agenda: On July 20, 2010, the internet (to see the slides) and a (202) 245–0665. committee will discuss supplemental teleconference call (capacity 50) will be biologics license applications (sBLAs) provided to registered participants. Dated: May 20, 2010. 125085/191 and 192 for AVASTIN Participants are encouraged to consider Tanja Popovic, (bevacizumab), manufactured by attending by this method. Each Deputy Associate Director for Science, Genentech, Inc. The two proposed participant is requested to register for Centers for Disease Control and Prevention. indications (uses) for this product are: the free meeting by sending an e-mail to [FR Doc. 2010–12743 Filed 5–27–10; 8:45 am] (1) First-line treatment of a subgroup of [email protected] containing the BILLING CODE 4163–19–P women with metastatic breast cancer participant’s name, organization name, known as HER2-negative breast cancer, contact telephone number on the day of in combination with the chemotherapy the meeting, and preference for DEPARTMENT OF HEALTH AND drug docetaxel; and (2) first-line participation by Web meeting HUMAN SERVICES treatment of HER2-negative metastatic (requirements include: Computer, breast cancer in combination with one internet connection, and telephone, Food and Drug Administration of two classes of chemotherapy drugs, preferably with ‘mute’ capability) or in [Docket No. FDA–2010–N–0001] known as taxanes and anthracyclines, or person. An e-mail confirming with the chemotherapy drug, registration will include the details Oncologic Drugs Advisory Committee; capecitabine. In addition to the needed to participate in the Web Notice of Meeting discussion of these two indications, the meeting. Non-US citizens are committee will also consider the impact encouraged to participate in the web AGENCY: Food and Drug Administration, of the submitted studies on the meeting. Non-US citizens who do not HHS. conversion from accelerated to regular register to attend in person on or before ACTION: Notice. approval of the indication for the June 2, 2010, will not be granted access treatment, in combination with the to the meeting site and will not be able This notice announces a forthcoming chemotherapy drug paclitaxel, of to attend the meeting in-person due to meeting of a public advisory committee patients who have not received mandatory security clearance of the Food and Drug Administration chemotherapy for their locally recurrent procedures at the Patriots Plaza facility. (FDA). The meeting will be open to the or metastatic HER2 negative breast Background: NORA is a partnership public. cancer. program to stimulate innovative Name of Committee: Oncologic Drugs FDA intends to make background research in occupational safety and Advisory Committee. material available to the public no later health leading to improved workplace General Function of the Committee: than 2 business days before the meeting. practices. Unveiled in 1996, NORA has To provide advice and If FDA is unable to post the background become a research framework for the recommendations to the agency on material on its Web site prior to the nation. Diverse parties collaborate to FDA’s regulatory issues. meeting, the background material will identify the most critical issues in Date and Time: The meeting will be be made publicly available at the workplace safety and health. Partners held on July 20, 2010, from 8 a.m. to 3 location of the advisory committee then work together to develop goals and p.m. meeting, and the background material objectives for addressing those needs Location: Hilton Washington DC will be posted on FDA’s Web site after and to move the research results into North/Gaithersburg, The Ballrooms, 620 the meeting. Background material is practice. The NIOSH role is facilitator of Perry Pkwy., Gaithersburg, MD. The available at http://www.fda.gov/ the process. For more information about hotel telephone number is 301–977– AdvisoryCommittees/Calendar/ NORA, see http://www.cdc.gov/niosh/ 8900. default.htm. Scroll down to the nora/about.html. Contact Person: Nicole Vesely, c/o appropriate advisory committee link. Since 2006, NORA has been Melanie Whelan, Food and Drug Procedure: Interested persons may structured according to industrial Administration, 10903 New Hampshire present data, information, or views, sectors. Eight major sector groups have Ave., Bldg. 51, rm. 6100, Silver Spring, orally or in writing, on issues pending been defined using the North American MD 20993–0002, FAX: 301–847–8737, before the committee. Written Industrial Classification System to reach by telephone before June 8, submissions may be made to the contact (NAICS). After receiving public input 2010, please call 301–827–7001; to person on or before July 6, 2010. Oral through the web and town hall reach by telephone after June 8, 2010, presentations from the public will be meetings, ten NORA Sector Councils please call 301–796–9001, e-mail: scheduled between approximately 12:30 have been working to define sector- [email protected], or FDA p.m. to 1:30 p.m. Those desiring to specific strategic plans for conducting Advisory Committee Information Line, make formal oral presentations should

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notify the contact person and submit a confidential trade secrets or commercial 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., brief statement of the general nature of property such as patentable material, as amended. The grant applications and the evidence or arguments they wish to and personal information concerning the discussions could disclose present, the names and addresses of individuals associated with the grant confidential trade secrets or commercial proposed participants, and an applications, the disclosure of which property such as patentable material, indication of the approximate time would constitute a clearly unwarranted and personal information concerning requested to make their presentation on invasion of personal privacy. individuals associated with the grant or before June 25, 2010. Time allotted Name of Committee: National Institute of applications, the disclosure of which for each presentation may be limited. If Allergy and Infectious Diseases Special would constitute a clearly unwarranted the number of registrants requesting to Emphasis Panel; Review of proposals invasion of personal privacy. speak is greater than can be reasonably received in response to NIH–NHLBI–HB–11– Name of Committee: National Institute of accommodated during the scheduled 02. Child Health and Human Development Initial open public hearing session, FDA may Date: June 22, 2010. Review Group; Biobehavioral and Behavioral conduct a lottery to determine the Time: 1 p.m. to 5 p.m. Sciences Subcommittee. Agenda: To review and evaluate contract speakers for the scheduled open public Date: June 23–24, 2010. proposals. Time: 9 a.m. to 5:30 p.m. hearing session. The contact person will Place: National Institutes of Health, notify interested persons regarding their Agenda: To review and evaluate grant Rockledge 6700, 6700B Rockledge Drive, applications. request to speak by June 28, 2010. 3137, Bethesda, MD 20817 (Telephone Place: Washington Plaza Hotel, 10 Thomas Persons attending FDA’s advisory Conference Call) . Circle, Washington, DC 20005. committee meetings are advised that the Contact Person: Quirijn Vos, PhD, Contact Person: Marita R. Hopmann, PhD, agency is not responsible for providing Scientific Review Officer, Scientific Review Scientific Review Administrator, Division of access to electrical outlets. Program, Division of Extramural Activities, Scientific Review, Eunice Kennedy Shriver National Institutes of Health/NIAID, 6700B FDA welcomes the attendance of the National Institute of Child Health and Rockledge Drive, MSC 7616, Bethesda, MD Human Development, NIH, 6100 Executive public at its advisory committee 20892–7616, 301–451–2666, meetings and will make every effort to Blvd., Room 5b01, Bethesda, MD 20892, 301– [email protected]. 435–6911, [email protected]. accommodate persons with physical Name of Committee: National Institute of disabilities or special needs. If you Allergy and Infectious Diseases Special (Catalogue of Federal Domestic Assistance Program Nos. 93.864, Population Research; require special accommodations due to Emphasis Panel; Genetics Autoimmunity. Date: June 22, 2010. 93.865, Research for Mothers and Children; a disability, please contact Nicole 93.929, Center for Medical Rehabilitation Vesely at least 7 days in advance of the Time: 12 p.m. to 3:30 p.m. Agenda: To review and evaluate grant Research; 93.209, Contraception and meeting. applications. Infertility Loan Repayment Program, National FDA is committed to the orderly Place: National Institutes of Health, 6700B Institutes of Health, HHS) conduct of its advisory committee Rockledge Drive, Bethesda, MD 20817 Dated: May 24, 2010. meetings. Please visit our Web site at (Telephone Conference Call) . Jennifer Spaeth, http://www.fda.gov/Advisory Contact Person: Sujata Vijh, PhD, Scientific Review Officer, Scientific Review Program, Director, Office of Federal Advisory Committees/AboutAdvisoryCommittees/ Committee Policy. ucm111462.htm for procedures on Division of Extramural Activities, NIAID/ [FR Doc. 2010–12940 Filed 5–27–10; 8:45 am] public conduct during advisory NIH/DHHS, 6700B Rockledge Drive, MSC 7616, Bethesda, MD 20892, 301–594–0985, BILLING CODE 4140–01–P committee meetings. [email protected]. Notice of this meeting is given under (Catalogue of Federal Domestic Assistance the Federal Advisory Committee Act (5 Program Nos. 93.855, Allergy, Immunology, DEPARTMENT OF HEALTH AND U.S.C. app. 2). and Transplantation Research; 93.856, HUMAN SERVICES Dated: May 25, 2010. Microbiology and Infectious Diseases Jill Hartzler Warner, Research, National Institutes of Health, HHS) Centers for Medicare & Medicaid Acting Associate Commissioner for Special Dated: May 24, 2010. Services Medical Programs. Jennifer Spaeth, [CMS–2316–N] [FR Doc. 2010–12870 Filed 5–27–10; 8:45 am] Director, Office of Federal Advisory BILLING CODE 4160–01–S Committee Policy. DEPARTMENT OF LABOR [FR Doc. 2010–12942 Filed 5–27–10; 8:45 am] BILLING CODE 4140–01–P Employee Benefits Security DEPARTMENT OF HEALTH AND Administration HUMAN SERVICES DEPARTMENT OF HEALTH AND Medicaid and CHIP Programs; Meeting National Institutes of Health HUMAN SERVICES of the CHIP Working Group—June 14, 2010 National Institute of Allergy and National Institutes of Health Infectious Diseases; Notice of Closed AGENCY: Centers for Medicare & Meetings Eunice Kennedy Shriver National Medicaid Services (CMS), Department Institute of Child Health & Human of Health and Human Services (DHHS); Pursuant to section 10(d) of the Development; Notice of Closed Employee Benefits Security Federal Advisory Committee Act, as Meeting Administration (EBSA), Department of amended (5 U.S.C. App.), notice is Labor (DOL). hereby given of the following meetings. Pursuant to section 10(d) of the ACTION: Notice. The meetings will be closed to the Federal Advisory Committee Act, as public in accordance with the amended (5 U.S.C. App.), notice is SUMMARY: This notice announces the provisions set forth in sections hereby given of the following meeting. second meeting of the Medicaid, 552b(c)(4) and 552b(c)(6), Title 5 U.S.C., The meeting will be closed to the Children’s Health Insurance Program as amended. The grant applications and public in accordance with the (‘‘CHIP’’), and Employer-Sponsored the discussions could disclose provisions set forth in sections Coverage Coordination Working Group

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(referred to as the ‘‘CHIP Working May 1, 2009 (74 FR 20323). The CHIP register with the DFO by the date listed Group’’). The CHIP Working Group will Working Group will meet two times to in the DATES section of this notice. meet to address objectives specified develop a model coverage coordination Testimony is limited to agenda topics under section 311(b)(1)(C) of the disclosure form for group health plan only. The number of oral testimonies Children’s Health Insurance Program administrators to send to States upon may be limited by the time available. A Reauthorization Act of 2009. This request regarding benefits available written copy of the presenter’s oral meeting is open to the public. under the plan. This notice will enable remarks must be submitted to the DFO DATES: Meeting Date: Monday, June 14, States to determine the availability and for distribution to CHIP Working Group 2010 from 9 a.m. to 5 p.m., Eastern cost-effectiveness of providing premium members for review before the meeting Standard Time (e.s.t.). assistance to individuals eligible for by the date listed in the ‘‘DATES’’ Deadline for Registration without Oral benefits under titles XIX or XXI of the section of this notice. Presentation: June 12, 2010, 12 p.m., Social Security Act (the Act) to enable them to enroll in group health plans. III. Meeting Registration and Security e.s.t. Information Deadline for Registration of Oral The CHIP Working Group will identify Presentations: June 10, 2010, 12 p.m., and report on the impediments to the The meeting is open to the public, but e.s.t. effective coordination of coverage attendance is limited to the space Deadline for Submission of Oral available to families that include available. Persons wishing to attend this Remarks and Written Comments: June employees of employers that maintain meeting must register by contacting the 10, 2010, 12 p.m., e.s.t. group health plans and members who DFO at the address listed in the Deadline for Requesting Special are eligible for medical assistance under ADDRESSES section of this notice or by Accommodations: June 10, 2010, 12 title XIX of the Act or child health telephone at the number listed in the p.m., e.s.t. assistance or other health benefits FOR FURTHER INFORMATION CONTACT ADDRESSES: Meeting Location: The coverage under title XXI of the Act. section of this notice by the date meeting will be held at the Grand Hyatt Not later than August 5, 2010, the specified in the DATES section of this Washington, 1000 H Street NW., CHIP Working Group must submit to the notice. Washington, DC 20001. Secretary of Labor and the Secretary of Individuals requiring sign language Submission of Testimony: Health and Human Services the model interpretation or other special Testimonies should be mailed to Stacey coverage coordination disclosure form accommodations must contact the DFO Green, Designated Federal Official and the report containing via the contact information specified in (DFO), Centers for Medicare & Medicaid recommendations for appropriate the FOR FURTHER INFORMATION CONTACT Services, 7500 Security Boulevard, Mail measures for addressing the section of this notice by the date listed stop C2–04–04, Baltimore, MD 21244– impediments to the effective in the DATES section of this notice. coordination of coverage. 1850, or contact the DFO via e-mail at Authority: (Section 1868 of the Social [email protected]. II. Meeting Format and Agenda Security Act (42 U.S.C. 1395ee) and section FOR FURTHER INFORMATION CONTACT: 10(a) of Pub. L. 92–463 (5 U.S.C. App. 2, The meeting will commence with section 10(a)).) Stacey Green, DFO, Centers for welcoming remarks from the CHIP Medicare & Medicaid Services, Health Working Group by Departmental Dated: May 21, 2010. and Human Services at (410) 786–6102, representatives. In addition, the agenda Marilyn Tavenner, or Amy Turner, Employee Benefits will focus on the following: Acting Administrator and Chief Operating Security Administration, DOL at (202) • Introductions from Chair and Co- Officer, Centers for Medicare & Medicaid 693–8335. News media representatives Chair. Services. must contact the CMS Press Office, • Review of the draft model coverage Dated: May 21, 2010. (202) 690–6145. Please refer to the coordination disclosure form for plan Michael L. Davis Internet at http://www.cms.hhs.gov/ administrators of group health plans. Deputy Assistant Secretary, Employee FACA, or http://www.dol.gov/ebsa/ The draft form is available for members Benefits Security Administration, Department CHIP.html for additional information of the public to review at http:// of Labor. and updates on committee activities. www.dol.gov/ebsa/CHIP.html. To [FR Doc. 2010–12952 Filed 5–27–10; 8:45 am] SUPPLEMENTARY INFORMATION: submit written comments, follow the BILLING CODE 4120–01–P–4510–29–P instructions listed in the ADDRESSES I. Background section of this notice. In accordance with section 10(a) of • Review of report containing DEPARTMENT OF HEALTH AND the Federal Advisory Committee Act recommendations for appropriate HUMAN SERVICES (FACA), this notice announces the measures for addressing the second meeting of the Medicaid, CHIP, impediments to the effective Administration for Children and and Employer-Sponsored Coverage coordination of coverage between group Families Coordination Working Group (‘‘CHIP health plans and title XIX and XXI State Working Group’’). The Secretary of plans. Migrant and Seasonal Farmworkers Health and Human Services and the • An opportunity for public comment Study Secretary of Labor are required under and testimony. AGENCY: Office of Head Start. section 311(b)(1)(C) of the Children’s For additional information and ACTION: Notice of Public Comment. Health Insurance Program clarification on these topics, contact the Reauthorization Act (CHIPRA) of 2009 DFO as provided in the FOR FURTHER SUMMARY: The following Notice of (Pub. L. 111–3), enacted February 4, INFORMATION CONTACT section of this Public Comment is in response to 2009, to jointly establish a CHIP notice. Individual or organizational Section 649(f) Sub-Section (3) of the Working Group. The membership of the stakeholders that represent the focus 2007 Head Start School Readiness Act group is based on nominations area of the CHIP Working Group (the Act) requiring the Secretary to submitted in response to a Federal wishing to present a 5-minute oral publish in the Federal Register a plan Register solicitation notice published on testimony on agenda issues must of how the Secretary will carry out

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section 649 Sub-Section (f) Sub- Department of Health and Human changed geographical locations within Paragraph (1) and shall provide a period Services (HHS), Health Resources and the past 24 months. For both migrant for public comment. Services Administration (HRSA), Office and seasonal farmworkers, acceptable DATES: To ensure consideration, written of Migrant Health; the HHS farmwork includes production and comments must be submitted on or Administration for Children and harvesting of tree and field crops. before 60 days after this notice is Families, Office of Head Start (OHS), Production and harvesting of tree and published. Migrant and Seasonal Head Start, and field crops include preparing the soil, To Comment on This Document, or the Office of Planning, Research and planting, cultivating, picking, packing, for Further Information Contact: Evaluation. The purpose of the meeting canning, and processing. Agricultural MigrantFederalRegister@ was to engage these agencies in work that supports the crop production HeadStartinfo.org. discussing their efforts in collecting, such as irrigation, crop protection, and reporting, and sharing data and lessons operation of farm machinery are also SUPPLEMENTARY INFORMATION: Pursuant learned to enhance coordination among included. Production and harvesting of to the Improving Head Start for School agencies at the Federal, State, and local greenhouse and nursery products may Readiness Act of 2007, Public Law 110– levels. This meeting resulted in the also be included. Eligible children range 134, Section 649 [42 U.S.C. 9801]—Sub- organization of a series of Interagency in age from newborn up to compulsory Section 649(h)(1)(A–B), notice is hereby Roundtables on Migrant and Seasonal school age. Income requirements for given of a plan to conduct a set of Farmworkers. families are based on poverty guidelines activities designed to focus on the The Roundtables will look at: updated annually in the Federal Migrant and Seasonal Farmworker Head • Data collection efforts affecting Register by the U.S. Department of Start-eligible population. As required by migrant and seasonal farmworker Health and Human Services. The the Act, the Secretary shall work in children and their families, including income of migrant and seasonal eligible collaboration with providers of Migrant efforts to maintain and coordinate their families must be primarily derived from and Seasonal Head Start programs, the health and education records: How are agricultural work. Secretary of Agriculture, the Secretary data efforts pursued and maintained? As OHS has been asked to account for of Labor, the Bureau of Migrant Health, How are data collected and reported? the total number of MSHS-eligible and the Secretary of Education to What are the lessons learned from children, it reviewed the data collection undertake the activities addressed in previous attempts at coordinating data resources of other Federal agencies that this notice. The notice is required to collection efforts? are also currently serving or observing present: (1) A plan to ‘‘collect, report, • Accounting for the number of migrant and seasonal farmworkers. and share data, within a coordinated eligible children/workers, as well as the These included the Enumeration system, on children of migrant and number of children/workers who Studies of Migrant Health; Reports of seasonal farmworkers and their families, receive services: How do various Migrant Health Clinics; Data including health records and organizations identify gaps in their Transferring Efforts of Migrant educational documents of such services? How can these approaches be Education; and the National children, in order to adequately account improved? and Agricultural Workers Survey (NAWS) of for the number of children of migrant • Identifying barriers that prevent the Department of Labor. and seasonal farmworkers who are eligible migrant and seasonal The methodology of the Enumeration eligible for Head Start services and farmworkers and their families from Profiles (Larson Assistance Services, determine how many of such children accessing migrant and seasonal services: Vashon Island; 1990; 2001; 2002) was receive the services;’’ (2) a plan to How can these barriers be reduced, very individualized per State and ‘‘identify barriers that prevent children ameliorated or eliminated? involved intensive effort. The results of migrant and seasonal farmworkers After a first planning meeting with presented estimates of the number of who are eligible for Head Start services agencies involved, the first Roundtable farmworkers within a State and, when from accessing Head Start services;’’ and was held in April 2009 and focused on possible, by county and across age (3) ‘‘develop a plan for eliminating such the Department of Education’s Migrant groups. The resulting profile estimations barriers, including certain requirements Student Information Exchange (MSIX) were based on secondary data analyses relating to tracking, health records, and and the Department of Labor’s National and the opinions of invested experts; educational documents, and increasing Agricultural Worker’s Survey (NAWS). the validity and reliability of the enrollment.’’ The second half of the day involved information was therefore undermined active discussions between the Federal by the inherent variations in quality and Migrant and Seasonal Head Start representatives, addressing the topical quantity of data from State to State. (MSHS) Plans questions in light of the presented There are 154 Federally funded (1) Collaboration across Federal information. An additional meeting was migrant health center (MHC) entities, agencies in order to adequately account held on March 17, 2010. sponsored by the Office of Migrant for the number of children of migrant Health, that collectively operate more and seasonal farmworkers who are Systematic Data Collection: Accounting than 500 satellite service sites that eligible for Head Start services and for the Number of Children Eligible comprise a loosely knit network of determine how many of such children Farmworkers are eligible for MSHS independent organizations serving receive the services. services based on mobility, migrant and seasonal farmworkers. Interagency Meetings. On December 5, employment, age of the children, and Their annual reports present the 2008, ACF convened a meeting of income. For the eligibility of migrants, national and State number of representatives from the United States the family must be primarily engaged in farmworkers served by the clinic sites: (U.S.) Department of Education (ED), agricultural work and have changed http://bphc.hrsa.gov/uds/2007data/ Office of Elementary and Secondary geographical locations within the past National/migrant/ Education, Office of Migrant Education; 24 months in pursuit of agricultural NationalTable3Amhc.htm. However, the U.S. Department of Labor, work. For seasonal farmworkers eligible methodological and definitional issues Employment and Training for MSHS, the parents must be primarily currently undermine the possibility of Administration; and the U.S. engaged in farmwork but need not have using Migrant Health Clinic data to

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account for numbers of MSHS-eligible population. NAWS interviewers travel Additional Systematic Data Collection: nationally. The HRSA definition of to randomly selected counties, Design for MSHS Survey farmworkers eligible for service is contacting an annual sample of A team of researchers, led by CDM, similar to the MSHS definition in terms approximately 500 agricultural Inc., contracted in September 2007, to of the types of farmwork allowable and employers to obtain cooperation for the design the methodology for an MSHS the mobility requirements. However, survey. At the randomly selected Survey. The plans will detail multiple HRSA does not require the whole family agricultural establishments, options for gathering descriptive data at to engage in agricultural work or to interviewers draw a random sample of varied levels of the MSHS organization change geographical location in order to farmworkers and then administer the (i.e., program, center, staff, children receive services. Methodologically, questionnaire. DOL calculates estimates and/or families). The development programs do not consistently share data of each State’s share of the Migrant activities included gathering of insight across sites, so the cumulative count of and suggestions from program staff, individuals served may include workers Seasonal Farmworkers population based administrators and families who are who are counted more than one time as on a formula that includes several data currently or previously served by they migrate for work. Further, sources, including the Census of information about the entire family is Agriculture, U.S. Department of MSHS. Topics that could be addressed not reported for each individual, so Agriculture’s (USDA) Quarterly by the survey and the methods outlined siblings that might be eligible for MSHS Agricultural Labor Survey and NAWS. for gathering the data have been are not identified. Finally, migrant Strengths and weaknesses of each of substantially shaped and refined by this clinics are scattered across the U.S., but these datasets are outlined in Steirman, input from program stakeholders. After their distribution does not necessarily Kissam, and Nakamoto, 1998. completion of the contract and review reflect a geographically representative by ACF leadership, the report for the Estimating the national number of Design for MSHS Survey project will be profile of farmworkers in the U.S. eligible MSHS children using NAWS Migrant Education of ED uses an placed online in late 2010. data is a multi-step process. The first extensive network of recruiters to step is to calculate a size estimate for (1) A Plan To Identify Obstacles and actively identify eligible students in Barriers each area. The Migrant Education the national farmworker population program uses a data transferring system (typically done using either the USDA Focus Groups. As a first step in to coordinate records across schools for Farm Labor Survey or the USDA Census developing a plan to identify barriers, children of migrant farmworkers. Again, of Agriculture). The second step is to ACF consulted with MSHS advocates, definitional and methodological issues identify the percent of the farmworker grantees, families and researchers reduce the usefulness of these data for population eligible for MSHS and the attending the thirty-eighth and thirty- identifying the number of MSHS- average number of infant through pre- ninth Annual Migrant and Seasonal eligible nationally. Migrant Education school aged children per family (using Head Start Conferences in Washington, services are available for children who three-year averages of NAWS data D.C. Potential themes regarding traveled with their families within the regarding percentages of farmworker obstacles and barriers will be explored past three years for purposes of a family families meeting eligibility by providing venues that will allow member’s temporary or seasonal requirements). From steps one and two, opportunities for comment by key employment with agricultural, fishing, it is possible to estimate the national stakeholders. These discussions will be used to seek examples of high-quality farming or logging. Further, Migrant average of eligible migrant and seasonal recruitment and outreach efforts, details Education recruiters are primarily children. To further refine these of families’ and programs’ perceptions interested in identifying eligible three- numbers to agricultural regions, it is year-olds through high school aged. of barriers, and potential solutions for necessary to incorporate data regarding reducing or eliminating barriers. The Given these definitions, the number of the proportion of farmworkers within children eligible for Migrant Education information gained through these each region (USDA Farm Labor Survey), will differ markedly from those eligible venues is being analyzed and will be and multiply the national average of for MSHS. made available to Federal partners, OHS also reviewed an additional eligible by these proportions. Migrant and Seasonal Head Start established methodology for accounting Upon review of these methods, the grantees, and advocacy groups for for the national population of migrant NAWS methodology was identified as comment and validation. and seasonal farmworkers: The National an established, carefully designed, large Efforts for additional discussions with Agricultural Worker’s Survey (NAWS). scale approach to estimating numbers of stakeholders are continually explored. NAWS is a national, random sample agricultural workers nationally and by Systematic Data Collection: survey of crop farmworkers in the agricultural regions. Beginning in Identification of Obstacles and Barriers continental U.S. that is housed at the February 2008, ACF partnered with U.S. Department of Labor (DOL). The DOL to use this established survey to As discussed extensively above, the NAWS is a national, random sample data is collected directly from gather a national estimate of MSHS- survey of crop farmworkers in the agricultural workers, on an annual basis, eligible children (both migrant and using field survey methods. Estimates continental U.S. that is housed at DOL. seasonal). Estimates for seven multi- and data from this effort have been used Beginning in February 2008, ACF state agricultural regions will also be by HRSA, Migrant Education, and DOL- partnered with DOL to pilot a Farmworkers Job Programs. calculated. In June 2009, the results questionnaire supplement to NAWS, Topics covered by NAWS have from the pilot year of NAWS will be aimed at families with children under included farmworker work histories and made available to OHS for review and the age of six. The questionnaire tasks, as well as health and housing. discussion. Further minor refinement of supplement asks about: The survey methodology is complex, the NAWS–MSHS questions will be • Child care options used by the with sampling occurring three times per ongoing, to ensure that children who parents in recent months, year to capture seasonal and geographic match to the MSHS definition of eligible • Reasons for those choices, variations in the farmworker can be accurately identified. • Parents’ knowledge of MSHS,

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• Families’ participation in MSHS, DEPARTMENT OF HOMELAND (2) Evaluate the accuracy of the and SECURITY agency’s estimate of the burden of the • Any perceived obstacles to collection of information, including the U.S. Citizenship and Immigration participation. validity of the methodology and Services assumptions used; The resulting information can be collected for multiple cycles of NAWS Agency Information Collection (3) Enhance the quality, utility, and data, identifying potential issues in Activities: Form N–648, Revision of an clarity of the information to be various agricultural regions over the Existing Information Collection collected; and course of the seasons. If continued for Request; Comment Request (4) Minimize the burden of the multiple years, it should be possible to collection of information on those who ACTION: 30-Day Notice of Information identify trends in farmworker family Collection Under Review: Form N–648, are to respond, including through the child care use for their young children Medical Certification for Disability use of appropriate automated, and family perceptions of MSHS. Exceptions. OMB Control No. 1615– electronic, mechanical, or other technological collection techniques, or Systematic Data Collection: 0060. other forms of information technology, Incorporation of Related Questions in The Department of Homeland e.g., permitting electronic submission of Design of MSHS Survey Security, U.S. Citizenship and responses. Immigration Services (USCIS) has The design options for the MSHS submitted the following information Overview of this information Survey will include components that collection request to the Office of collection: OHS could use to gather information Management and Budget (OMB) for (1) Type of Information Collection: regarding obstacles and barriers. review and clearance in accordance Revision of an existing information Possible routes identified thus far with the Paperwork Reduction Act of collection. include record reviews that could 1995. The information collection was (2) Title of the Form/Collection: provide insight (e.g., review of local previously published in the Federal Medical Certification for Disability community needs assessments and Register on February 1, 2010, at 75 FR program recruitment methods); 5099, allowing for a 60-day public Exceptions. gathering staff and parent opinions comment period. USCIS received (3) Agency form number, if any, and regarding obstacles and barriers to comments from three commenters. The the applicable component of the MSHS participation; or direct comments and USCIS’ response can be Department of Homeland Security interviews with community partners found in the supporting statement on sponsoring the collection: Form N–648. and local advocacy organizations. The www.regulations.gov. U.S. Citizenship and Immigration design contract will illuminate The purpose of this notice is to allow Services (USCIS). an additional 30 days for public methodological and logistical (4) Affected public who will be asked considerations for collecting these types comments. Comments are encouraged and will be accepted until June 28, or required to respond, as well as a brief of data, and will be useful as OHS 2010. This process is conducted in abstract: Primary: Individuals or considers future data collection accordance with 5 CFR 1320.10. households. USCIS uses Form N–648 strategies. Written comments and/or suggestions issued by the medical professional to (1) A Plan for Eliminating Identified regarding the item(s) contained in this substantiate a claim for an exception to Barriers and for Increasing Enrollment notice, especially regarding the the requirements of section 312(a) of the of Eligible Children estimated public burden and associated Act. response time, should be directed to the (5) An estimate of the total number of Based on the information obtained Department of Homeland Security respondents and the amount of time from the Migrant and Seasonal (DHS), and to the Office of Management estimated for an average respondent to Roundtables, and input from MSHS and Budget (OMB) USCIS Desk Officer. respond: 20,000 responses at 2 hours Comments may be submitted to: USCIS, grantees, families, researchers, and per response. private organizations involved in Chief, Regulatory Products Division, (6) An estimate of the total public advocating for Migrant and Seasonal Clearance Office, 111 Massachusetts burden (in hours) associated with the families, ACF will develop a plan that Avenue, Washington, DC 20529–2210. collection: 40,000 annual burden hours. will articulate barriers identified Comments may also be submitted to DHS via facsimile to 202–272–8352 or through (1) and (2) above, propose If you need a copy of the information via e-mail at [email protected], and OMB methods for dealing with them that are collection instrument, please visit the USCIS Desk Officer via facsimile at 202– Web site at: http://www.regulations.gov. within ACF’s legislative purview, and 395–5806 or via e-mail at incorporate methods that require action [email protected]. We may also be contacted at: USCIS, by other Federal agencies or statutory When submitting comments by e-mail Regulatory Products Division, 111 changes. The plan for eliminating please make sure to add OMB Control Massachusetts Avenue, NW., identified barriers will form the basis for Number 1615–0060 in the subject box. Washington, DC 20529–2210, a strategy to increase the enrollment of Written comments and suggestions from Telephone number 202–272–8377. eligible children in MSHS, as the public and affected agencies should Dated: May 24, 2010. appropriate. address one or more of the following Stephen Tarragon, Dated: May 21, 2010. four points: (1) Evaluate whether the collection of Deputy Chief, Regulatory Products Division, Yvette Sanchez Fuentes, information is necessary for the proper U.S. Citizenship and Immigration Services. Director, Office of Head Start. performance of the functions of the [FR Doc. 2010–12816 Filed 5–27–10; 8:45 am] [FR Doc. 2010–12795 Filed 5–27–10; 8:45 am] agency, including whether the BILLING CODE 9111–97–P BILLING CODE 4184–40–P information will have practical utility;

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DEPARTMENT OF HOUSING AND the use of appropriate automated surplus Federal property reviewed by URBAN DEVELOPMENT collection techniques or other forms of HUD for suitability for possible use to information technology, e.g., permitting assist the homeless. [Docket No. FR–5380–N–22] electronic submission of responses. DATES: Effective Date: May 28, 2010. Notice of Proposed Information This Notice also lists the following FOR FURTHER INFORMATION CONTACT: Collection: Comment Request; Section information: Kathy Ezzell, Department of Housing Title of Proposal: Section 202 202 Supportive Housing for the Elderly and Urban Development, 451 Seventh Supportive Housing for the Elderly Application Submission Requirement Street, SW., Room 7262, Washington, Application Submission Requirement. DC 20410; telephone (202) 708–1234; AGENCY: Office of the Assistant OMB Control Number, if applicable: 2502–0267. TTY number for the hearing- and Secretary for Housing, HUD. speech-impaired (202) 708–2565, (these ACTION: Notice. Description of the need for the information and proposed use: The telephone numbers are not toll-free), or SUMMARY: The proposed information collection of this information is call the toll-free Title V information line collection requirement described below necessary to the Department to assist at 800–927–7588. will be submitted to the Office of HUD in determining applicant SUPPLEMENTARY INFORMATION: In Management and Budget (OMB) for eligibility and ability to develop accordance with the December 12, 1988 review, as required by the Paperwork housing for the elderly within statutory court order in National Coalition for the Reduction Act. The Department is and program criteria. A thorough Homeless v. Veterans Administration, soliciting public comments on the evaluation of an applicant’s submission No. 88–2503–OG (D.D.C.), HUD subject proposal. is necessary to protect the Government’s publishes a Notice, on a weekly basis, DATES: Comments Due Date: July 27, financial interest. identifying unutilized, underutilized, 2010. Agency form numbers, if applicable: excess and surplus Federal buildings HUD–92015–CA, HUD–96010, HUD and real property that HUD has ADDRESSES: Interested persons are 92041, SF–424, SF–424–Supplemental, reviewed for suitability for use to assist invited to submit comments regarding SF–LLL, HUD–2880, HUD–2990, HUD– the homeless. Today’s Notice is for the this proposal. Comments should refer to 2991, HUD–92042, HUD–96010, HUD– purpose of announcing that no the proposal by name and/or OMB 96011, & HUD–2994–A. additional properties have been Control Number and should be sent to: Estimation of the total numbers of determined suitable or unsuitable this Leroy McKinney Jr., Departmental hours needed to prepare the information week. Reports Management Officer, QDAM, collection including number of Dated: May 20, 2010. Department of Housing and Urban respondents, frequency of response, and Mark R. Johnston, Development, 451 7th Street, SW., hours of response: The estimated Washington, DC 20410; e-mail number of burden hours needed to Deputy Assistant Secretary for Special Needs. [email protected] or telephone prepare the information collection is [FR Doc. 2010–12574 Filed 5–27–10; 8:45 am] (202) 402–5564 or the number for the 12,001; the number of respondents is BILLING CODE 4210–67–P Federal Information Relay Service (1– 300 generating approximately 300 800–877–8339). annual responses; the frequency of FOR FURTHER INFORMATION CONTACT: response is on occasion; and the DEPARTMENT OF THE INTERIOR Willie Spearmon, Director, Office of estimated time needed to prepare the Housing Assistance and Grant response varies from 30 minutes to 21.5 Bureau of Land Management Administration, Department of Housing hours. [F–14989–B, F–14989–C, F–14989–E2, F– and Urban Development, 451 7th Street, Status of the proposed information 14989–G2, F–14989–K2, F–14989–L2; SW., Washington, DC 20410, telephone collection: This is an extension of a LLAK965000–L14100000–KC0000–P] (202) 708–3000 (this is not a toll free currently approved collection. Alaska Native Claims Selection number) for copies of the proposed Authority: The Paperwork Reduction Act forms and other available information. of 1995, 44 U.S.C., Chapter 35, as amended. AGENCY: Bureau of Land Management, SUPPLEMENTARY INFORMATION: The Dated: May 25, 2010. Interior. Department is submitting the proposed Ronald Y. Spraker, ACTION: Notice of decision approving information collection to OMB for lands for conveyance. review, as required by the Paperwork Associate General Deputy Assistant Secretary for Housing. Reduction Act of 1995 (44 U.S.C. SUMMARY: As required by 43 CFR Chapter 35, as amended). [FR Doc. 2010–12970 Filed 5–27–10; 8:45 am] 2650.7(d), notice is hereby given that This Notice is soliciting comments BILLING CODE 4210–67–P the Bureau of Land Management (BLM) from members of the public and affected will issue an appealable decision agencies concerning the proposed DEPARTMENT OF HOUSING AND approving the conveyance of the surface collection of information to: (1) Evaluate URBAN DEVELOPMENT estate for certain lands to Danzhit whether the proposed collection is Hanlaii Corporation, pursuant to the necessary for the proper performance of [Docket No. FR–5375–N–20] Alaska Native Claims Settlement Act. the functions of the agency, including The subsurface estate in these lands will whether the information will have Federal Property Suitable as Facilities be conveyed to Doyon, Limited when practical utility; (2) Evaluate the To Assist the Homeless the surface estate is conveyed to Danzhit accuracy of the agency’s estimate of the AGENCY: Office of the Assistant Hanlaii Corporation. The lands are in burden of the proposed collection of Secretary for Community Planning and the vicinity of Circle, Alaska, and are information; (3) Enhance the quality, Development, HUD. located in: utility, and clarity of the information to ACTION: Notice. be collected; and (4) Minimize the Fairbanks Meridian, Alaska burden of the collection of information SUMMARY: This Notice identifies T. 13 N., R. 16 E., on those who are to respond; including unutilized, underutilized, excess, and Secs. 1 to 14.

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Containing approximately 8,753 acres. Nomans Land Island National Wildlife Nomans Land Island NWR is a 628- T. 10 N., R. 17 E., Refuge (NWR) for a 30-day public acre roadless island located Secs. 9, 10, and 11; review and comment period. In this approximately 3 miles south of Martha’s Secs. 14 to 23; draft CCP/EA, we describe three Vineyard, Massachusetts. It was Sec. 29. alternatives, including our Service- established for the conservation and Containing approximately 8,750 acres. preferred Alternative C, for managing management of migratory birds. The T. 12 N., R. 17 E., this refuge for the next 15 years. Also Service first began managing a portion Secs. 33 and 34. available for public review and of the eastern side of the island in 1975 Containing approximately 1,280 acres. comment is the draft wilderness review, as an ‘‘overlay’’ refuge under a Joint Aggregating approximately 18,783 acres. which is included as Appendix C in the Management Agreement between the Notice of the decision will also be draft CCP/EA. U.S. Department of the Interior and the published four times in the Fairbanks DATES: To ensure our consideration of U.S. Department of the Navy (DoN), Daily News-Miner. your written comments, please send while it was still under DoN ownership. DATES: The time limits for filing an them by June 28, 2010. We will also In 1998, management responsibility for appeal are: hold at least one public meeting in the island was transferred to the Service 1. Any party claiming a property Chilmark, Massachusetts, during the 30- and became Nomans Land Island NWR. interest which is adversely affected by day review period to receive comments This island has a unique history, from the decision shall have until June 28, and provide information on the draft use by Native Americans as a summer 2010 to file an appeal. plan. We will announce and post details camp, to sheep grazing when the island 2. Parties receiving service of the about public meetings in local news was privately owned in the 1800s, to decision by certified mail shall have 30 media, via our project mailing list, and use as a bombing range to train DoN days from the date of receipt to file an on our regional planning Web site, pilots during and after World War II. appeal. http://www.fws.gov/northeast/planning/ The refuge provides diverse habitats Parties who do not file an appeal in nomansland/ccphome.html. accordance with the requirements of 43 that include intertidal, freshwater ADDRESSES: Send your comments or CFR part 4, subpart E, shall be deemed wetland, grassland and shrubland requests for more information by any of to have waived their rights. habitats, and serves an important role the following methods. for nesting landbirds and colonial ADDRESSES: A copy of the decision may Agency Web site: View or download waterbirds and as a stopover habitat for be obtained from: Bureau of Land the draft document at http:// migratory birds and raptors such as the Management, Alaska State Office, 222 www.fws.gov/northeast/planning/ peregrine falcon. West Seventh Avenue, #13, Anchorage, nomansland/ccphome.html. Public access has never been allowed Alaska 99513–7504. Electronic mail: FOR FURTHER INFORMATION CONTACT: The on the refuge due to unexploded [email protected]. Include ordnance (UXO), therefore, none of the BLM by phone at 907–271–5960, or by ‘‘Nomans Land Island NWR CCP/EA’’ in e-mail at six priority uses of the National Wildlife the subject line of the message. Refuge System (NWRS) established by [email protected]. Persons U.S. Postal Service: Eastern who use a telecommunication device Congress in the Act occur on the island. Massachusetts NWR Complex, 73 Weir Off-site interpretation opportunities (TTD) may contact the BLM by calling Hill Road, Sudbury, MA 01776. the Federal Information Relay Service exist with potential partners such as the In-Person Drop-off, Viewing, or Town of Chilmark, the Wampanoag (FIRS) at 1–800–877–8339, 24 hours a Pickup: Call 978–443–4661 to make an day, 7 days a week. Tribe of Gay Head (Aquinnah) (the appointment during regular business Tribe), and the Aquinnah Cultural Jason Robinson, hours at the above address. Center. Land Law Examiner, Land Transfer Facsimile: Attn: Carl Melberg, 978– Adjudication II Branch. 443–2898. Background [FR Doc. 2010–12840 Filed 5–27–10; 8:45 am] FOR FURTHER INFORMATION CONTACT: Carl The CCP Process BILLING CODE 4310–JA–P Melberg, Planning Team Leader, at 978– 443–4661 extension 32. The Act requires us to develop a CCP SUPPLEMENTARY INFORMATION: for each national wildlife refuge. The DEPARTMENT OF THE INTERIOR purpose for developing CCPs is to Introduction provide refuge managers with 15-year Fish and Wildlife Service With this notice, we continue the CCP plans for achieving refuge purposes and [FWS–R5–R–2009–N185; BAC–4311–K9–S3] process for Nomans Land Island NWR the mission of the NWRS, in in Chilmark, Massachusetts, which we conformance with sound principles of Nomans Land Island National Wildlife started with the notice of intent (NOI) fish and wildlife management, Refuge, Town of Chilmark, MA that was published in the Federal conservation, legal mandates, and our AGENCY: Fish and Wildlife Service, Register (73 FR 76376) on December 16, policies. In addition to outlining broad Interior. 2008. We prepared the draft CCP in management direction on conserving wildlife and their habitats, CCPs ACTION: Notice of availability of draft compliance with the National comprehensive conservation plan and Environmental Policy Act of 1969 (42 identify priority wildlife-dependent environmental assessment; request for U.S.C. 4321 et seq.) (NEPA) and the recreational opportunities available to comments. National Wildlife Refuge System the public, including opportunities for Administration Act of 1966 (16 U.S.C. hunting, fishing, wildlife observation SUMMARY: We, the U.S. Fish and 668dd–668ee), as amended by the and photography, and environmental Wildlife Service (Service), announce the National Wildlife Refuge System education and interpretation. We will availability of the draft comprehensive Improvement Act of 1997 (Act). This review and update each CCP at least conservation plan (CCP) and draft refuge is one of eight refuges in the every 15 years, in accordance with the environmental assessment (EA) for Eastern Massachusetts NWR Complex. Act.

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The Wilderness Review asked attendees specific questions about other shorebird, colonial waterbird, and Service planning policy (602 FW 3) their views on the refuge’s wildlife and seabird species identified as species of requires that we conduct a wilderness habitat values, how they view the conservation concern. We would review in association with the refuge, and their suggestions for future continue to enforce the no public access development of a refuge CCP, pursuant refuge management. policy along the shoreline to prevent Some of the key issues we identified to the Wilderness Act (16 U.S.C. 1131 et public use activities that may pose were the management of migratory birds seq.). The purpose of the wilderness safety risks due to UXO. and their habitats including shrubland, We would continue to work with our review is to identify and describe rocky shoreline and wetlands, partners to monitor these habitats for wilderness values and evaluate coordination with the DoN to ensure invasive plants and disease, and we appropriate management alternatives. safety, UXO removal, enforcement of no would treat the vegetation to fight The wilderness review process has three public access, better communication invasive species if we have available phases: Inventory, study, and with the public about the refuge and our funding and staffing. Our biological recommendation. After first identifying management activities, and protection monitoring and inventory program and lands and waters that meet the of cultural resources. habitat and trail management would minimum criteria for wilderness during continue at its current minimal level, CCP Alternatives, Including Selected the inventory phase, the resulting and would be limited by safety concerns Alternative wilderness study areas (WSAs) are and UXO removal conducted by the further evaluated to determine if they We developed three management DoN. merit recommendation from the Service alternatives based on the purposes for We would continue to protect cultural to the Secretary of the Interior establishing the refuge, its vision and resources by strengthening our (Secretary) for inclusion in the National goals, and the issues and concerns relationships with the Tribe and the Wilderness Preservation System identified by the public, State agencies, Chilmark Historical Commission. We (NWPS). the Tribe, and the Service during the would consult with the DoN Regional Public Outreach planning process. The alternatives have Archeologist prior to any ground- some actions in common, such as disturbing activities. There is a long planning history for protecting and monitoring fish and Our visitor services programs would this CCP. On February 24, 1999, a NOI wildlife species, managing the extensive not change, as minimal off-site to prepare a CCP and environmental shrubland habitat, controlling invasive interpretation now occurs via our Web impact statement (EIS) for what was plants and wildlife diseases, protecting site and virtual tour. Our staffing and then known as Great Meadows NWR cultural resources, planning for limited facilities would remain the same. Complex, of which Nomans Land Island Tribal use of the island, developing a Existing staff for the refuge complex NWR is a part, was printed in the partnership agreement with the Tribe, would remain in place, and the Federal Register. In 2001, we maintaining a no public use policy, and headquarters would remain at the determined it was not feasible to distributing refuge revenue sharing Sudbury, Massachusetts office. No new prepare one plan for eight refuges, and payments to the Town of Chilmark. staff would be hired specifically for this on February 15, 2001, another notice Other actions distinguish the refuge. was printed in the Federal Register alternatives. The draft CCP/EA describes indicating that a CCP/EIS would be the alternatives in detail, and relates Alternative B (Enhanced Management prepared for Monomoy, Nantucket, and them to the issues and concerns and Habitat Diversity) Nomans Land Island NWRs. However, identified. Highlights are as follows: In this alternative, the Service takes a no work was done on those plans at that more active role in managing habitats, time. On December 13, 2004, another Alternative A (Current Management) research, monitoring, and inventorying NOI was printed in the Federal Register This alternative is the ‘‘No Action’’ its priority natural and cultural to indicate that the planning process for alternative required by NEPA. resources. Nomans Land Island NWR and Alternative A defines our current We would coordinate with the DoN Monomoy NWR was being re-initiated, management activities, and serves as the on all management activities and and that comments already received baseline against which to compare the provide additional trails for monitoring under previous notices would be other alternatives. Our current habitat and management access throughout the considered. In 2008, because of the management focuses on allowing island. Under this alternative, we would different issues facing the refuges, the natural processes and prescribed burns establish a fire-based management Service determined it to be more conducted by the DoN for UXO removal regime with prescribed burns to efficient to proceed separately with the operations to maintain the diversity of maintain 400 acres of desired shrubland Nomans Land Island NWR CCP/EA. the maritime shrubland habitat that habitat conditions in order to support Scoping began in 1999 with public supports migratory and nesting birds of focal nesting bird species and provide meetings and the solicitation of public conservation concern such as the critical shrubland stop-over habitat for comments via planning workbooks. In eastern towhee and gray catbird. Other migrating landbirds and butterflies. We April 2005, two scoping meetings were than some invasive species would also explore the potential to held in Chilmark, Massachusetts. management, only natural processes introduce the New England cottontail Interagency, stakeholder, and public affect the ponds and wetlands on the on the refuge in support of regional scoping was re-initiated through partner refuge that provide important breeding recovery efforts for this species of State and public meetings held on October 14, habitat for Virginia rail and other and regional conservation concern. 2008, at the Chilmark Library, followed species of conservation concern. We would manage the 15 acres of by a comment period ending November We would continue to maintain the herbaceous upland vegetation that 14, 2008. Federal and State natural 15 acres of herbaceous upland and 100 provides habitat for shorebirds and resource agency staff, current and acres of intertidal beach and rocky shore terns, and the 100 acres of marine potential refuge partners, and members to provide suitable habitat conditions intertidal beach and rocky shore of the general public attended these for nesting American oystercatcher, habitats to benefit marine mammals and meetings. During these meetings, we piping plover, and terns, as well as nesting and migrating shorebirds. We

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would manage the 100 to 150 acres of while also preserving wilderness announcements electronically and freshwater wetland communities to character and natural values for future provide information about opportunities support breeding marsh birds and native generations. Use of motorized vehicles, for public review and comment on our plant and animal communities, and motorized equipment, mechanical Web site and in local newspapers with control non-native invasive species and transport on the island would be the contact information below. You can predators as necessary to support allowed for emergency purposes, and obtain the schedule from the planning nesting focal species of conservation when necessary to meet minimum team leader or project leader (see concern. We would create a habitat map requirements for the administration of ADDRESSES). You may also submit for the refuge, and conduct inventories, the area as wilderness, and to comments anytime during the planning research, and monitoring on rare and accomplish refuge purposes. The island process by mail, electronic mail, or special concern species. would continue to be accessible by facsimile (SEE ADDRESSES). For specific Since no public use is allowed, we motorboat. information, including dates, times, and would increase visitor services The information and analyses in the locations, contact the planning team programming off-site with CCP/EA would be used to compile a leader (see ADDRESSES) or visit our Web environmental education and wilderness study report and legislative site at http://www.fws.gov/northeast/ interpretation by developing EIS to accompany the wilderness planning/nomansland/ccphome.html. partnerships with the Tribe, Town of recommendation. Since Congress has Chilmark, and the Aquinnah Cultural reserved the authority to make final Public Availability of Comments Center. We would work with partners to decisions on wilderness designation, the Before including your address, phone conduct shoreline surveys for wilderness recommendation is a number, electronic mail address, or archeological resources at risk from preliminary administrative other personal identifying information erosion and develop protocols for determination that would receive in your comments, you should be aware collection and repository of artifacts and further review and possible that your entire comment—including remains. modification by the Director, the your personal identifying information— We would increase refuge complex Secretary, or the President. We would may be made available to the public at staff by three new positions—Biological, conduct some survey, inventory, any time. While you can ask us in your Visitor Services, and Law Enforcement. research, and monitoring of focal comment to withhold your personal Under this alternative, we would focus species such as common and roseate identifying information from public on strengthening partnerships with the terns, and would implement necessary review, we cannot guarantee that we Tribe for ceremonial access. We would measures to protect any colonies larger will be able to do so. also increase access and management than 50 pairs. We would work with Dated: April 26, 2010. throughout the refuge with the partners on specific priority efforts, James G. Geiger, cooperation of the DoN. such as analyzing the feasibility of New England cottontail introduction. We Acting Regional Director, Northeast Region, Alternative C (Natural Processes U.S. Fish and Wildlife Service, Hadley, Emphasis-Service Preferred Alternative) would track vegetation changes and Massachusetts. invasive species, and control those that [FR Doc. 2010–12669 Filed 5–27–10; 8:45 am] This alternative is the one we propose threaten healthy ecosystems. Under as the best way to manage this refuge Alternative C, we would primarily allow BILLING CODE 4310–55–P over the next 15 years. It includes an coastal processes of wind and wave array of less active management actions action to shape the refuge habitats, but DEPARTMENT OF THE INTERIOR that, in our professional judgment, would consider using fire to maintain works best toward achieving the refuge shrubland stopover habitat for migratory Bureau of Land Management purposes, our vision and goals, and the birds, if necessary. We would focus our goals of other State and regional efforts to provide quality habitat on the [LLWY930000 L16100000.DS0000] conservation plans. We also believe it refuge for landbirds, including raptors, Notice of Intent To Prepare an most effectively addresses the key issues during fall migration. that arose during the planning process. Environmental Impact Statement and This alternative resembles Alternative Resource Management Plan Lastly, it is the most realistic, given the A in its minimal management approach, relatively modest increase in staffing Amendments for the Casper, refuge administration, and facilities. We Kemmerer, Pinedale, Rock Springs, and funding that is anticipated over the would provide oversight and next 15 years. Newcastle, and Rawlins Field Offices, coordination to the DoN contaminant WY This alternative acknowledges that and UXO cleanup, pursue a partnership the refuge meets the minimum criteria agreement with the Tribe that provides, AGENCY: Bureau of Land Management, for a WSA. Under this alternative, a in part, access to the refuge for Interior. Nomans Land Island WSA would be ceremonial purposes, and work with ACTION: Notice of Intent. recommended as suitable for partners on cultural resource protection. designation and inclusion in the NWPS. As with Alternative B, we would SUMMARY: In compliance with the The analysis of environmental enhance visitor services to provide National Environmental Policy Act consequences is based on the additional off-site opportunities for (NEPA) of 1969, as amended, and the assumption that Congress would accept interpretation and communication, Federal Land Policy and Management the recommendation and designate since no public access is allowed on the Act of 1976, as amended, the Bureau of Nomans Land Island NWR as refuge. Staffing would remain the same Land Management (BLM) Wyoming wilderness. The Nomans Land Island as in Alternative A. State Office intends to prepare Resource WSA would be managed according to Management Plan (RMP) amendments the provisions of the Wilderness Act Public Meetings with an associated Environmental and Service Wilderness Stewardship The public will have the opportunity Impact Statement (EIS) for the Casper, Policy (610 FW 1–3). The wilderness to provide input at one public meeting Kemmerer, Pinedale, Rock Springs, area would be managed to accomplish in Chilmark, Massachusetts. We will Newcastle, and Rawlins Resource refuge purposes and the NWRS mission, release mailings, news releases, and Management Plans (RMPs) and by this

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notice is announcing the beginning of Newcastle, and Rawlins RMPs, cannot guarantee that we will be able to the scoping process to solicit public announces the beginning of the scoping do so. The minutes and list of attendees comments and identify issues. The RMP process, and seeks public input on for each scoping meeting will be amendments will revise sage-grouse and issues and planning criteria. The available to the public and open for 30 sagebrush management direction in the planning area is located in Converse, days after the meeting to any participant existing Casper, Kemmerer, Pinedale, Goshen, Natrona, and Platte counties who wishes to clarify the views he or Rock Springs, Newcastle, and Rawlins (Casper Field Office); Lincoln, she expressed. The BLM will evaluate RMPs to incorporate policies set forth in Sweetwater, and Uinta counties identified issues to be addressed in the BLM Wyoming Instruction Memoranda (Kemmerer Field Office); Sublette, plan amendments, and will place them (IM) 2010–012 and 2010–013. The IMs Lincoln, and Fremont counties into one of three categories: may be accessed at the following Web (Pinedale Field Office); Albany, Carbon, 1. Issues to be resolved in the address: http://www.blm.gov/wy/st/en/ Laramie, and Sweetwater counties amendments; programs/wildlife.html. (Rawlins Field Office); Sweetwater, 2. Issues to be resolved through policy DATES: This notice initiates the public Sublette and Fremont counties (Rock or administrative action; or scoping process for the RMP Springs Field Office); and Niobrara, 3. Issues beyond the scope of these amendments with associated EIS. Weston and Crook counties (Newcastle amendments. Comments on issues may be submitted Field Office) in Wyoming. The planning The BLM will provide an explanation in writing until June 28, 2010. The area encompasses approximately 15 in the Draft RMP amendments/EIS as to date(s) and location(s) of any scoping million acres of public land. The why an issue was placed in category meetings will be announced at least 15 purpose of the public scoping process is two or three. The public is also days in advance through local media to determine relevant issues that will encouraged to help identify any and the BLM Web site at: http:// influence the scope of the management questions and concerns www.blm.gov/wy/st/en/programs/ environmental analysis, including that should be addressed in the Planning/amendments/ alternatives, and guide the planning amendments. The BLM will work sage-grouse.html. In order to be process. Preliminary issues for the collaboratively with interested parties to included in the Draft RMP amendments, planning area have been identified by identify the management decisions that all comments must be received prior to BLM personnel; Federal, state, and local are best suited to local, regional, and the close of the scoping period or 15 agencies; and other stakeholders. The national needs and concerns. The BLM days after the last public meeting, issues include: Sagebrush habitat will use an interdisciplinary approach whichever is later. We will provide management practices directly to develop the amendments in order to additional opportunities for public applicable to protection of the sage consider the variety of resource issues participation upon publication of the grouse, sagebrush habitat management and concerns identified. Specialists Draft RMP amendments. science directly applicable to protection with expertise in the following disciplines will be involved in the ADDRESSES: You may submit comments of the sage grouse, and the effects of planning process: Rangeland on issues and planning criteria related sagebrush habitat management on other management, minerals and geology, to the Casper, Kemmerer, Pinedale, public land resources. Preliminary outdoor recreation, archaeology, Rock Springs, Newcastle, and Rawlins planning criteria include: Incorporation paleontology, wildlife and fisheries, RMP amendments by any of the of sage-grouse policies in Wyoming IMs lands and realty, hydrology, soils, following methods: 2010–012 and 2010–013; incorporation sociology, and economics. • Web site: http://www.blm.gov/wy/ of the policies established by the st/en/programs/Planning/amendments/ Wyoming Governor’s Executive Order Authority: 40 CFR 1501.7, 43 CFR 1610.2. on sage-grouse (Wyoming EO 2008–2), sage-grouse.html; Donald A. Simpson, • as appropriate; and consideration of and E-mail: State Director. [email protected]; consistency with the BLM National [FR Doc. 2010–12838 Filed 5–27–10; 8:45 am] • Fax: (307) 352–0329; and Sage-Grouse Habitat Conservation • Mail: BLM Wyoming State Office Strategy (November 2004). The RMP BILLING CODE 4310–22–P (WY 930), 5353 Yellowstone Rd., amendment process will comply with NEPA, the Federal Land Policy and Cheyenne, Wyoming 82003. DEPARTMENT OF THE INTERIOR Documents pertinent to this proposal Management Act (FLPMA), and other may be examined at the Casper, applicable laws and policies. You may Bureau of Land Management submit comments on issues and Kemmerer, Pinedale, Rock Springs, [LLMTB07200–L51100000.GN0000 Newcastle, and Rawlins field offices. planning criteria in writing or orally to the BLM at any public scoping meeting, LVEMCE070000 252X; MTM78300] FOR FURTHER INFORMATION CONTACT: For or you may submit them to the BLM Notice of Availability of the Final further information and/or to have your using one of the methods listed in the Environmental Impact Statement for name added to our mailing list, contact ADDRESSES section above. To be most the Graymont Western U.S., Inc. Bill Hill, Deputy State Director, helpful, you should submit comments Proposed Mine Expansion, Broadwater Resources Policy and Management; at within 30 days after the last public County, MT (307) 775–6113; 5353 Yellowstone meeting. Before including your address, Road, Cheyenne, Wyoming 82003; e- phone number, e-mail address, or other AGENCY: Bureau of Land Management, mail: personal identifying information in your Interior. [email protected]. comment, you should be aware that ACTION: Notice of Availability. SUPPLEMENTARY INFORMATION: This your entire comment—including your document provides notice that the BLM personal identifying information—may SUMMARY: In accordance with the Wyoming State Office intends to be made publicly available at any time. National Environmental Policy Act of prepare RMP amendments with an While you may ask us in your comment 1969 and the Federal Land Policy and associated EIS for the Casper, to withhold your personal identifying Management Act of 1976, a Final Kemmerer, Pinedale, Rock Springs, information from public review, we Environmental Impact Statement (EIS)

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has been prepared for the Graymont permitted 735 acres of disturbance, and request nominations from the public for Western U.S., Inc. Proposed Mine the mine would continue to operate membership on the SMAC. Nomination Expansion. The mine permit is until it reached the permitted limits, forms may be obtained from the BLM administered by the Bureau of Land probably in 7 to 12 years. The Proposed Burns District Office. Applicants must Management (BLM) Butte Field Office Action Alternative would allow for an be qualified through education, training, and the Montana Department of additional 1,313 acres of disturbance knowledge, or experience to give Environmental Quality (DEQ). and allow operations to continue for 35 informed advice regarding an industry, Operations on public lands in the to 50 years. The Modified Pit Backfill discipline, or interest to be represented. permit area are on mining claims Alternative modifies reclamation at the Nominees must also demonstrate a located in accordance with the General site to provide for more diverse commitment to collaborative resource Mining Law of 1872, as amended. topography and soils that favor winter- decision-making. The Obama DATES: The Final EIS will be available browse species but does not change the Administration prohibits individuals for review for 30 days following the date proposed disturbance acreage or years of who are currently federally registered the Environmental Protection Agency future operations. lobbyists from serving on all Federal publishes the Notice of Availability in Advisory Committee Act (FACA) and Richard M. Hotaling, the Federal Register. A Record of non-FACA boards, committees or Decision will be prepared following the Butte Field Manager. councils. Any individual may nominate 30-day public availability period. [FR Doc. 2010–12789 Filed 5–27–10; 8:45 am] himself/herself or others to serve on the ADDRESSES: Copies of the Final EIS have BILLING CODE 4310–DN–P Council. Nomination applications may been sent to affected Federal, State, and be obtained at the Burns District BLM local government agencies and to Office or by going to http:// DEPARTMENT OF THE INTERIOR interested parties. Copies of the Final www.blm.gov/or/districts/burns/ EIS are available for public inspection at Bureau of Land Management index.php. All nomination applications the Montana Department of should include reference letters and/or Environmental Quality, 1520 East 6th Notice of Intent To Solicit recommendations from the represented Avenue, Helena, MT 59620–0901 and Nominations: Steens Mountain interests or organizations, and any other the Bureau of Land Management, Butte Advisory Council, OR information explaining the nominee’s Field Office, 106 N. Parkmont, Butte, qualifications (e.g., resume, curriculum MT 59701. Interested parties may also AGENCY: Bureau of Land Management, vitae). Nominations may be made for review the Final EIS on the internet at Interior. the following categories of interest: http://www.deq.mt.gov. ACTION: Notice of Call for Nominations. • A person with No Financial Interest FOR FURTHER INFORMATION CONTACT: Greg in the CMPA to represent statewide SUMMARY: The Secretary is requesting Hallsten, Montana Department of interests (appointed from nominees nominations for four representatives for Environmental Quality, PO Box 200901, submitted by the Governor of Oregon); the Steens Mountain Advisory Council Helena, MT 59620–0901, or David • A person who holds a Federal (SMAC). The Council will advise the Williams, Bureau of Land Management, Grazing Permit for lands in the CMPA Secretary on planning in the Steens Butte Field Office, 106 N. Parkmont, (appointed from nominees submitted by Mountain Cooperative Management and Butte, MT 59701. the County Court of Harney County); Protection Area (CMPA), through the • A member and representative of the SUPPLEMENTARY INFORMATION: Graymont Bureau of Land Management (BLM). Western U.S., Inc. submitted a Plan of Burns Paiute Tribe (appointed from DATES: Submit nomination packages on Operations on February 22, 2006, to the nominees submitted by the Burns Paiute or before: June 28, 2010. BLM and the DEQ to expand its existing Tribe); limestone quarry operation, which is ADDRESSES: Send completed Advisory • A person who participates in located on unpatented mining claims on Council nominations to Burns District Mechanized or Consumptive Recreation, public lands west of Townsend, BLM Office; 28910 Highway 20 West; such as hunting, off-road driving, hang Montana. This proposal is a Hines, Oregon 97738–9424. Nomination gliding, or parasailing in the CMPA continuation of mining along a forms are also available at the Burns (appointed from nominees submitted by prominent limestone ridge which forms District Office. the Oregon State Director of the BLM); the crest of the ‘‘Limestone Hills.’’ The FOR FURTHER INFORMATION CONTACT: The specific category the nominee Notice of Intent to prepare the EIS was Christi Courtemanche, BLM, Burns wishes to represent should be identified published in the Federal Register on District Office, 28910 Highway 20 West, in the nomination letter. The BLM May 18, 2007, and the Notice of Hines, Oregon 97738, (541) 573–4541 or Burns District Office will collect the Availability of the Draft EIS was [email protected]. nomination forms and reference letters announced in the Federal Register on SUPPLEMENTARY INFORMATION: The and distribute them to the officials December 19, 2008. Mining was SMAC was appointed by the Secretary responsible for submitting nominations originally permitted in the area of the Interior on August 14, 2001, (County Court of Harney County, the beginning in 1981 and has continued pursuant to the Steens Mountain Governor of Oregon, and the BLM). The since that time. The principal concern, Cooperative Management and Protection BLM will then forward recommended developed through public meetings and Act of 2000 (Pub. L. 106–399). The nominations to the Secretary of the agency review, was potential loss of SMAC’s purpose is to provide Interior, who has responsibility for mule deer and bighorn sheep habitat representative counsel and advice to the making the appointments. and winter-browse vegetation, BLM regarding new and unique Members of the SMAC are appointed principally mountain mahogany. The approaches to management of the land to 3-year terms. All positions will expire Final EIS evaluated three alternatives: within the bounds of the Steens in October 2013. Members serve without No Action, the Proposed Action, and Mountain Cooperative Management and monetary compensation, but will be Alternative A, Modified Pit Backfill. Protection Area. The BLM is publishing reimbursed for travel and per diem The No Action Alternative would limit this notice under Section 9 (a)(2) of the expenses at current rates for Federal mine disturbance to the currently Federal Advisory Committee Act, to employees. The SMAC shall meet only

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at the call of the Designated Federal and Hickory St on the W, Mountain Home, Fernwood Ave, Woodman Park, Culver Rd, Official, but not less than once a year. 10000348 and Waring Rd, Rochester, 10000360 CALIFORNIA Norton Village Historic District, (Rochester Kenny McDaniel, Plan Veterans Housing TR) Norton St., District Manager. Santa Clara County Norton Village Ln, Village Way, and [FR Doc. 2010–12841 Filed 5–27–10; 8:45 am] Palo Alto Medical Clinic, 300 Homer Ave, Veteran St, Rochester, 10000362 BILLING CODE 4310–33–P Palo Alto, 10000357 Ramona Park Historic District, (Rochester Plan Veterans Housing TR) Ramona Park, CONNECTICUT Rochester, 10000363 DEPARTMENT OF THE INTERIOR Litchfield County Onondaga County Hollister, Homestead, The, 294–300 Nettleton National Park Service Niagra Hudson Building, The, 300 Erie Blvd Hollow Rd, Washington, 10000350 W, Syracuse, 10000361 National Register of Historic Places; DISTRICT OF COLUMBIA NORTH DAKOTA Notification of Pending Nominations District of Columbia Nelson County and Related Actions Earley, John J., Office and Studio, 2131 G St, Old Settler’s Pavilion, 63 Pavilion Rd, Pekin, NW, Washington, 10000367 Nominations for the following 10000366 Everglades, The, (Apartment Buildings in properties being considered for listing Washington, DC, MPS) 2223 H St, NW, VERMONT or related actions in the National Washington, 10000368 Register were received by the National Rutland County Flagler, The, (Apartment Buildings in St. Stanislaus Kostka School and Convent Park Service before May 8, 2010. Washington, DC, MPS) 736 22nd St, NW, Pursuant to section 60.13 of 36 CFR Part House, (Educational Resources of Vermont Washington, 10000369 MPS) 95 & 113 Barnes St, West Rutland, 60, written comments are being Keystone, The, (Apartment Buildings in 10000349 accepted concerning the significance of Washington, DC, MPS) 2150 Pennsylvania In the interest of preservation the comment the nominated properties under the Ave, NW, Washington, 10000370 period for the following action has been National Register criteria for evaluation. Milton Hall, (Apartment Buildings in waived or shortened to (3) three days. Comments are also being accepted on Washington, DC, MPS) 2222 I St, NW, the following properties being Washington, 10000371 CALIFORNIA considered for removal pursuant to 36 Munson Hall, (Apartment Buildings in Marin County CFR 60.15. Comments may be Washington, DC, MPS) 2212 H St, NW, Dipsea Trail, The, Throckmorton Ave, forwarded by United States Postal Washington, 10000372 Sequoia Valley Rd., Panoramic Hwy., State Service, to the National Register of ILLINOIS Rt 1, Mill Valley and Stinson Beach, Historic Places, National Park Service, 10000356 Woodford County 1849 C St. NW., 2280, Washington, DC [FR Doc. 2010–12837 Filed 5–27–10; 8:45 am] Eureka College Campus Historic District, 300 20240; by all other carriers, National BILLING CODE P Register of Historic Places, National College Ave, Eureka, 10000365 Park Service,1201 Eye St. NW., 8th MISSOURI floor, Washington DC 20005; or by fax, DEPARTMENT OF THE INTERIOR St. Louis Independent City 202–371–6447. Written or faxed comments should be submitted by June North Broadway Wholesale and Warehouse Fish and Wildlife Service 14, 2010. District, 1400–1600 and 1609–1629 N Broadway, St. Louis, 10000352 [FWS–R1–ES–2010–N098; 80221–1112– Before including your address, phone 0000–F2] number, e-mail address, or other NEW JERSEY personal identifying information in your Hunterdon County Proposed Issuance of an Incidental Take Permit to Energy Northwest for comment, you should be aware that Rosemont Rural Agricultural District, County your entire comment—including your Routes 519 and 604; Sanford Rd; Covered Construction and Operation of the personal identifying information—may Bridge Rd, Delaware, 10000354 Radar Ridge Wind Project LLC be made publicly available at any time. Monmouth County AGENCY: Fish and Wildlife Service, While you can ask us in your comment Interior. to withhold your personal identifying Allenhurt Residential Historic District, ACTION: Notice of intent to conduct 30- information from public review, we Roughly bounded by the Atlantic Ocean, Main St, Cedar Ave, Hume St, and Elberon day public scoping period and prepare cannot guarantee that we will be able to Ave, Allenhurst, 10000353 an Environmental Impact Statement do so. NEW YORK (EIS). J. Paul Loether, Chenango County SUMMARY: We, the U.S. Fish and Chief, National Register of Historic Places/ National Historic Landmarks Program. Chenango Canal Prism and Lock 107, Wildlife Service (USFWS), intend to (Historic and Engineering Resources of the prepare an Environmental Impact ARIZONA Chenango Canal MPS) River Rd, Chenango Statement (EIS), under the National Pima County Forks, 10000359 Environmental Policy Act (NEPA) Rillito Race Track at the J. Rukin Jelks Stud Greene County regarding an application from Radar Farm Historic Site, 4502 N First Ave and Ridge LLC for an incidental take permit Rushmore Farm, 8748 US 9W, Athens, for take of the threatened marbled 1090 E River Rd, Tucson, 10000351 10000364 murrelet (Brachyramphus marmoratus) ARKANSAS Monroe County in accordance with the Endangered Baxter County Alcoa Care-free Home, 1589 Clover St, Species Act of 1973, as amended (Act). Mountain Home Commercial Historic Rochester, 10000358 Radar Ridge LLC is proposing to District, Roughly bounded on the N by E Fernwood Park Historic District, (Rochester construct and operate the Radar Ridge 5th St, E 9th St on the S, S St on the E, Plan Veterans Housing TR) Bounded by Wind Project near Naselle, Washington.

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The project would consist of up to 32 Background not a covered activity of the WDNR wind turbines with a generating Radar Ridge LLC is requesting an HCP. Consequently, Radar Ridge LLC is capacity of 82 megawatts (MW) of incidental take permit for a period of 40 developing a separate HCP to address electricity. Power generated by the wind years to authorize incidental take of incidental take of marbled murrelets turbines would be transmitted to the marbled murrelets in conjunction with that could result from the Radar Ridge existing Bonneville Power the construction, operation, Wind Project. Radar Ridge Wind Project LLC, a Administration substation at Naselle, maintenance, and decommissioning of wholly owned subsidiary of Energy Washington. We are furnishing this the Radar Ridge Wind Project. Northwest, has received a 40-year notice to announce the initiation of a The project is proposed in a rural, conditional lease for the project from 30-day public scoping period, during forested area approximately 10 miles the WDNR that covers approximately which we invite other agencies, and the north of the Columbia River and 12 3,360 acres. It is the WDNR’s opinion public, to provide comments on the miles east of the Pacific Ocean. The that it has the unilateral right to range of alternatives and scope of issues small community of Naselle, terminate the lease if, in the State’s to be included in the EIS. Washington, is approximately 3 miles opinion, the proposed activity poses too DATES south of the project. Radar Ridge ranges : Comments: To ensure large a risk and could jeopardize its in elevation from approximately less consideration, please submit your continued operation of the Forest than 1,000 feet to 1,900 feet. Some of the comments by June 28, 2010. Practices HCP, Incidental Take Permit ridge has gravel roads that are used for Public Meeting Dates and Locations and Implementation Agreement with logging or assessing the existing the USFWS and the National Marine 1. Tuesday, June 15, 2010, 7–9 p.m. at communication facility at the south end Fisheries Service. the USFWS office at 510 Desmond Dr., of the ridge. The ridge also contains an Radar Ridge Wind Project LLC, a Lacey, WA 98503. operating gravel quarry used by the wholly owned subsidiary of Energy 2. Wednesday, June 16, 2010, 7–9 Washington State Department of Natural Northwest, has received a 40-year p.m. at Naselle High School, 793 State Resources (WDNR) as a source of gravel conditional lease for the project from Route 4, Naselle, WA 98638. for its roads. The forests on the ridge the WDNR that covers approximately within the project area are generally 3,360 acres. It is the WDNR’s opinion ADDRESSES: You may submit comments second growth conifer forests, mostly by one of the following methods: that it has the unilateral right to younger than 60 years old. terminate the lease if, in the State’s 1. U.S. mail or hand delivery to: Mr. Construction for the project will opinion, the proposed activity poses too Mark Ostwald, U.S. Fish and Wildlife require forest clearing, upgrade of large a risk and could jeopardize its Service, Washington Fish and Wildlife existing roads, construction of new continued operation of the Forest Office, 510 Desmond Drive, SE., Suite roads, a new project substation on the Practices HCP, Incidental Take Permit 102, Lacey, WA 98503–1263; or ridge, and a new overhead transmission and Implementation Agreement with 2. E-mail to: line (adjacent to an existing BPA power- the USFWS and the National Marine [email protected]. line) from the project substation to an Fisheries Service. existing BPA substation in Naselle, FOR FURTHER INFORMATION CONTACT: The WDNR Forest Practices HCP and Mr. Washington. Within the project area, up Mark Ostwald, at (360) 753–9564, e-mail Incidental Take Permit provides _ to 32 wind turbines would be located in incidental take coverage for the marbled at Mark [email protected], or on the a single row along the approximately Internet at http://www.fws.gov/wafwo. murrelet for the WDNR. When the 4.35-mile ridge-top. The project WDNR HCP was written in 1997, there SUPPLEMENTARY INFORMATION: In footprint is approximately 500 feet wide was not sufficient information available accordance with section 10(a)(2)(A) of by 4.35 miles long on the top of the on the conservation needs of the the Endangered Species Act of 1973, as ridge. The wind turbines will be set on marbled murrelet on WDNR lands. For amended (Act; 16 U.S.C. 1531 et seq.), towers up to 265 feet tall with a possible that reason the WDNR developed an Radar Ridge LLC is preparing a habitat rotor diameter ranging from 254 to 333 interim HCP strategy for this species. conservation plan in support of an feet. Using the largest diameter rotor, The interim conservation strategy application for a permit from the the maximum total wind turbine height required the DNR to do a habitat USFWS to incidentally take the marbled from tower base to blade tip would be relationship study and locate marbled murrelet in conjunction with the 430 feet. The project might also include murrelet occupied sites on their lands construction, operation, maintenance, one permanent freestanding (no guy (HCP, page IV. 39). Once the necessary and decommissioning of the Radar wires) meteorological tower with a steps of the interim strategy were Ridge Wind Project. The marbled height equivalent to the wind turbine completed, the WDNR would transition murrelet is listed as threatened under tower/hub height. to a long-term marbled murrelet the Act. The USFWS has determined The Radar Ridge Wind Project is conservation strategy (HCP, page IV. 40). that an EIS should be prepared under planned on forest lands owned and The WDNR HCP states that the long- NEPA as part of the USFWS managed by the WDNR in Pacific term conservation strategy would ‘‘result consideration of the permit application. County, southwest Washington. These in a comprehensive, detailed landscape- The USFWS will be the lead agency (40 lands are currently included in the 1997 level plan that would help meet the CFR 1501.5) for preparation of the EIS. WDNR Forest Practices Habitat recovery objectives of the USFWS, The Bonneville Power Administration Conservation Plan (HCP), which covers contribute to the conservation efforts of (BPA) is a cooperating agency (40 CFR 1.8 million acres of forest land. The the President’s Northwest Forest Plan, 1501.6) in the NEPA process. The EIS marbled murrelet, northern spotted owl and make a significant contribution to will analyze the impacts of both (Strix occidentalis), and several other maintaining and protecting marbled agencies’ proposed actions: USFWS’s listed species are covered by the WDNR murrelet populations in western issuance of an incidental take permit, HCP. The WDNR HCP provides the Washington over the life of the HCP.’’ and BPA’s approval of an WDNR with incidental take coverage for The WDNR has completed the interim interconnection to its transmission forest management activities and some strategy for southwest Washington and facilities. non-timber activities. Wind energy is the Olympic Peninsula and is now

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required to develop a long-term agencies, the scientific community, Dated: May 10, 2010. conservation strategy to be consistent Tribes, industry, or any other interested Carolyn A. Bohan, with their HCP. party on this notice. We will consider Deputy Regional Director, U.S. Fish and To help develop a scientifically all comments we receive in complying Wildlife Service, Region 1, Portland, Oregon. credible long-term marbled murrelet with the requirements of NEPA and in [FR Doc. 2010–12906 Filed 5–27–10; 8:45 am] conservation strategy, the WDNR the development of the HCP and ITP. BILLING CODE 4310–55–P convened a science team to develop We particularly seek comments murrelet conservation recommendations concerning: for WDNR lands in southwest (1) The direct, indirect, and DEPARTMENT OF THE INTERIOR Washington and the Olympic Peninsula. cumulative effects that implementation This team published their findings in of any reasonable alternative could have Bureau of Land Management 2008 as a report entitled on endangered and threatened species; Recommendations and Supporting Analysis of Conservation Opportunities (2) Other reasonable alternatives, and [LLMT922200–10–L13100000–FI0000–P; for the Marbled Murrelet Long-Term their associated effects; MTM 98343] Conservation Strategy. This report rated (3) Measures that would minimize the 13,748-acre Nemah Block as the and mitigate potentially adverse effects Notice of Proposed Reinstatement of most important WDNR landscape in of the proposed project; Terminated Oil and Gas Lease MTM southwest Washington for marbled (4) Baseline environmental conditions 98343 murrelet conservation. The proposed in and adjacent to the project; wind project would be located on Radar AGENCY: Bureau of Land Management, (5) Biological information regarding Interior. Ridge, which is within the Nemah the marbled murrelet; block. To date, the WDNR has not ACTION: Notice. completed its final long-term (6) Monitoring and adaptive conservation strategy for the marbled management that might be relevant to the project; SUMMARY: Per 30 U.S.C. 188(d), Kykuit murrelet. Resources, LLC timely filed a petition To our knowledge, there is no forest (7) Other plans or projects that might on the ridge-top within the project be relevant to this project; for reinstatement of competitive oil and gas lease MTM 98343, Fergus County, footprint that resembles mature or old (8) Pertinent information concerning Montana. The lessee paid the required growth forest that might provide nesting wind energy and wildlife response; and habitat for the marbled murrelet. rental accruing from the date of (9) Pertinent information concerning termination. However, through the use of radar wind energy and its relationship to the surveys, Radar Ridge LLC has human environment. No leases were issued that affect these documented the presence of marbled The EIS will analyze the effects that lands. The lessee agrees to new lease murrelets flying over the ridge, terms for rentals and royalties of $10 per primarily above proposed wind turbine the various alternatives would have on the marbled murrelet as well as all other acre and 16–2/3 percent. The lessee heights, both during the summer paid the $500 administration fee for the breeding season and during the winter. aspects of the human environment, including but not limited to geology and reinstatement of the lease and the $163 There are 89 murrelet-occupied nest cost for publishing this Notice. sites within 30 miles of the project area soils, land use, air quality, water and the northwest end of the project is quality, wetlands, socioeconomics, The lessee met the requirements for within approximately 1,800 feet of the recreation, cultural resources, noise, reinstatement of the lease per Sec. 31(d) South Nemah Natural Resources visual resources, climate change, and and (e) of the Mineral Leasing Act of Conservation Area, the highest known cumulative impacts from the proposed 1920 (30 U.S.C. 188). We are proposing marbled murrelet nesting use site in action. A notice of availability is to reinstate the lease, effective the date Washington. While the project footprint expected to be published in the Federal of termination subject to: Register in early 2011 and the DEIS will does not appear to have any suitable • The original terms and conditions nesting habitat for the species, marbled be circulated for public review and comment. The USFWS will consider of the lease; murrelets have been documented flying • over the project location, likely and respond to comments received on The increased rental of $10 per commuting to and from nest sites. Some the draft EIS in the final EIS. The final acre; of these birds would be at risk of EIS is expected to be published • The increased royalty of 16–2/3 collision with the wind project. sometime later in 2011. The USFWS percent; and and BPA will each document their • Environmental Impact Statement decision in a Record of Decision The $163 cost of publishing this Notice. We will conduct an environmental following completion of the final EIS. review of the permit application, Reasonable Accommodation FOR FURTHER INFORMATION CONTACT: Teri including the HCP. We will prepare an Bakken, Chief, Fluids Adjudication EIS in accordance with NEPA Persons needing reasonable Section, Bureau of Land Management accommodations to attend and requirements, as amended (40 U.S.C. Montana State Office, 5001 Southgate participate in public meetings should 4321 et seq.), and NEPA implementing Drive, Billings, Montana 59101–4669, regulations (40 CFR 1500–1508), and in contact Mark Ostwald (see FOR FURTHER 406–896–5091. accordance with other Federal laws and INFORMATION CONTACT) as soon as regulations, and the policies and possible. To allow sufficient time to Teri Bakken, procedures of the USFWS for process requests, please call no later Chief, Fluids Adjudication Section. compliance with those regulations. than one week before the public [FR Doc. 2010–12843 Filed 5–27–10; 8:45 am] We request data, comments, new meeting. Information regarding this information, or suggestions from the proposed action is available in BILLING CODE 4310–DN–P public, other concerned governmental alternative formats upon request.

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DEPARTMENT OF THE INTERIOR SUMMARY: Following receipt of a request contact the Office of the Secretary at from the United States Senate 202–205–2000. Bureau of Land Management Committee on Finance (Committee) Background: The Commission has [LLMT922200–10–L13100000–FI0000–P; dated April 19, 2010, the U.S. instituted this investigation for the MTM 97526 and MTM 97527] International Trade Commission purpose of preparing the second report (Commission) instituted investigation requested by the Committee. Based on Notice of Proposed Reinstatement of No. 332–519, China: Effects of an analysis of data and other Terminated Oil and Gas Leases MTM Intellectual Property Infringement and information from available sources, 97526 and MTM 97527, Montana Indigenous Innovation Policies on the including a survey of U.S. firms, and the U.S. Economy, for the purpose of application of the analytical frameworks AGENCY: Bureau of Land Management, preparing the second of two reports outlined in the first report, in the Interior. requested by the Committee, and has second report, the Commission will: • ACTION: Notice. scheduled a public hearing in Describe the size and scope of connection with investigations relating reported IPR infringement in China; SUMMARY: Per 30 U.S.C. 188(d), Panther • to both reports for June 15–16, 2010. Provide a quantitative analysis of Energy Company, LLC timely filed a the effect of reported IPR infringement DATES: June 1, 2010: Deadline for filing petition for reinstatement of competitive in China on the U.S. economy and U.S. requests to appear at the public hearing. oil and gas leases MTM 97526 and MTM jobs, including on a sectoral basis, as June 3, 2010: Deadline for filing pre- 97527, Richland County, Montana. The well as potential effects on sales, profits, hearing briefs and statements. lessee paid the required rental accruing royalties, and license fees of U.S. firms June 15, 2010: Public hearing from the date of termination. globally, to the extent primary data can No leases were issued that affect these (continued on June 16 if needed). June 22, 2010: Deadline for filing be collected; and lands. The lessee agrees to new lease • Discuss actual, potential, and post-hearing briefs and statements. terms for rentals and royalties of $10 per reported effects of China’s indigenous November 16, 2010: Deadline for acre and 162⁄3 percent. The lessee paid innovation policies on the U.S. filing all other written submissions. the $500 administration fee for the May 2, 2011: Transmittal of report to economy and U.S. jobs, and quantify reinstatement of each lease and the $163 the Senate Committee on Finance. these effects, to the extent feasible. cost for publishing this Notice. As requested by the Committee, the ADDRESSES: The lessee met the requirements for All Commission offices, Commission will deliver this second reinstatement of the lease per Sec. 31(d) including the Commission’s hearing report by May 2, 2011. The Commission and (e) of the Mineral Leasing Act of rooms, are located in the United States will deliver its first report by November 1920 (30 U.S.C. 188). We are proposing International Trade Commission 19, 2010. The report on the first to reinstate the lease, effective the date Building, 500 E Street, SW., investigation, No. 332–514, China: of termination subject to: Washington, DC. All written Intellectual Property Infringement, • The original terms and conditions submissions should be addressed to the Indigenous Innovation Policies, and of the lease; Secretary, United States International Frameworks for Measuring the Effects • The increased rental of $10 per Trade Commission, 500 E Street, SW., on the U.S. Economy, will describe the acre; Washington, DC 20436. The public principal types of reported IPR record for this investigation may be • The increased royalty of 162⁄3 infringement in China, describe China’s percent; and viewed on the Commission’s electronic indigenous innovation policies, and • The $163 cost of publishing this docket (EDIS) at http://www.usitc.gov/ outline analytical frameworks for Notice. secretary/edis.htm. determining the quantitative effects of FOR FURTHER INFORMATION CONTACT: the infringement and indigenous FOR FURTHER INFORMATION CONTACT: Teri Project Leaders Alexander Hammer innovation policies on the U.S. Bakken, Chief, Fluids Adjudication ([email protected], 202– economy as a whole and on sectors of Section, Bureau of Land Management 205–3271) or Katherine Linton the U.S. economy, including lost U.S. Montana State Office, 5001 Southgate ([email protected], 202–205– jobs. The Commission published its Drive, Billings, Montana 59101–4669, 3393) or Deputy Project Leader Jeremy notice of institution of that investigation 406–896–5091. Wise ([email protected], 202–205– in the Federal Register of May 10, 2010 Teri Bakken, 3190) for information specific to this (75 FR 25883); a copy may be viewed on Chief, Fluids Adjudication Section. investigation. For information on the the Commission’s Web site at http:// [FR Doc. 2010–12845 Filed 5–27–10; 8:45 am] legal aspects of these investigations, www.usitc.gov/secretary/ _ _ BILLING CODE 4310–DN–P contact William Gearhart of the fed reg notices/332/ Commission’s Office of the General 332_514_institution05052010.pdf. Counsel (202–205–3091 or Public Hearing: The Commission will INTERNATIONAL TRADE [email protected]). The media hold a public hearing in connection COMMISSION should contact Margaret O’Laughlin, with both investigations at the U.S. Office of External Relations (202–205– International Trade Commission [Investigation No. 332–519] 1819 or [email protected]). Building, 500 E Street, SW., Hearing-impaired individuals may Washington, DC, beginning at 9:30 a.m. China: Effects of Intellectual Property obtain information on this matter by on June 15, 2010 (continuing on June Infringement and Indigenous contacting the Commission’s TDD 16, 2010, if needed). Requests to appear Innovation Policies on the U.S. terminal at 202–205–1810. General at the public hearing should be filed Economy information concerning the Commission with the Secretary, no later than 5:15 AGENCY: United States International may also be obtained by accessing its p.m., June 1, 2010, in accordance with Trade Commission. Internet server (http://www.usitc.gov). the requirements in the ‘‘Submissions’’ Persons with mobility impairments who section below. All pre-hearing briefs ACTION: Institution of investigation and will need special assistance in gaining and statements should be filed not later scheduling of hearing. access to the Commission should than 5:15 p.m., June 3, 2010; and all

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post-hearing briefs and statements In its request letter, the Committee DEPARTMENT OF JUSTICE should be filed not later than 5:15 p.m., stated that it intends to make the [OMB Number 1103–NEW] June 22, 2010. Briefs and statements Commission’s reports available to the should identify the investigation to public in their entirety, and asked that Office of Community Oriented Policing which the brief or statement pertains, the Commission not include any Services; Agency Information including both if that is the case. In the confidential business information or Collection Activities: Proposed event that, as of the close of business on national security classified information collection; comments requested June 1, 2010, no witnesses are in the reports that the Commission scheduled to appear at the hearing, the sends to the Committee. Any ACTION: 30-Day Notice of Information hearing will be canceled. Any person confidential business information Collection Under Review: COPS’ Rural interested in attending the hearing as an received by the Commission in this Law Enforcement National Training observer or nonparticipant may call the investigation and used in preparing this Assessment. Secretary to the Commission (202–205– report will not be published in a manner 2000) after June 4, 2010, for information that would reveal the operations of the The Department of Justice (DOJ) concerning whether the hearing will be firm supplying the information. Office of Community Oriented Policing Services (COPS) has submitted the held. By order of the Commission. Written Submissions: In lieu of or in following information collection request Issued: May 25, 2010. to the Office of Management and Budget addition to participating at the hearing, William R. Bishop, interested parties are invited to submit (OMB) for review and approval in Acting Secretary to the Commission. written statements concerning this accordance with the Paperwork investigation. All written submissions [FR Doc. 2010–12947 Filed 5–27–10; 8:45 am] Reduction Act of 1995. The proposed concerning this investigation should be BILLING CODE P information collection is published to addressed to the Secretary, and should obtain comments from the public and be received not later than 5:15 p.m., affected agencies. This proposed INTERNATIONAL TRADE November 16, 2010. All written information collection was previously COMMISSION submissions must conform with the published in the Federal Register provisions of section 201.8 of the Volume 75, Number 56, Pages 14183– Commission’s Rules of Practice and [USITC SE–10–017] 14184, on March 24, 2010, allowing a 60 Procedure (19 CFR 201.8). Section 201.8 day comment period. Government in the Sunshine Act The purpose of this notice is to allow requires that a signed original (or a copy Meeting Notice for 30 days for public comment until so designated) and fourteen (14) copies June 28, 2010. This process is of each document be filed. In the event conducted in accordance with 5 CFR that confidential treatment of a AGENCY HOLDING THE MEETING: United 1320.10. document is requested, at least four (4) States International Trade Commission. If you have comments especially on additional copies must be filed, in TIME AND DATE: June 8, 2010 at 11 a.m. the estimated public burden or which the confidential information associated response time, suggestions, must be deleted (see the following PLACE: Room 101, 500 E Street, SW., or need a copy of the proposed paragraph for further information Washington, DC 20436, Telephone: information collection instrument with regarding confidential business (202) 205–2000. instructions or additional information, information). The Commission’s rules STATUS: Open to the public. please contact Ashley Hoornstra, authorize filing submissions with the Department of Justice Office of Secretary by facsimile or electronic MATTERS TO BE CONSIDERED: Community Oriented Policing Services, means only to the extent permitted by 1. Agenda for future meetings: None. 1100 Vermont Avenue, NW., section 201.8 of the rules (see Handbook 2. Minutes. Washington, DC 20530. for Electronic Filing Procedures, http:// 3. Ratification List. Written comments and suggestions www.usitc.gov/secretary/ _ _ 4. Inv. Nos. 731–TA–1043–1045 from the public and affected agencies fed reg notices/rules/documents/ concerning the proposed collection of handbook_on_electronic_filing.pdf). (Review) (Polyethylene Retail Carrier Bags from China, Malaysia, and information are encouraged. Your Persons with questions regarding comments should address one or more electronic filing should contact the Thailand)—briefing and vote. (The Commission is currently scheduled to of the following four points: Secretary (202–205–2000). —Evaluate whether the proposed Any submissions that contain transmit its determinations and Commissioners’ opinions to the collection of information is necessary confidential business information must for the proper performance of the also conform with the requirements of Secretary of Commerce on or before June 22, 2010.) functions of the agency, including section 201.6 of the Commission’s Rules whether the information will have of Practice and Procedure (19 CFR 5. Outstanding action jackets: none. practical utility; 201.6). Section 201.6 of the rules In accordance with Commission —Evaluate the accuracy of the agency’s requires that the cover of the document policy, subject matter listed above, not estimate of the burden of the and the individual pages be clearly disposed of at the scheduled meeting, proposed collection of information, marked as to whether they are the may be carried over to the agenda of the including the validity of the ‘‘confidential’’ or ‘‘non-confidential’’ following meeting. methodology and assumptions used; version, and that the confidential —Enhance the quality, utility, and By order of the Commission. business information be clearly clarity of the information to be identified by means of brackets. All Issued: May 25, 2010. collected; and written submissions, except for William R. Bishop, —Minimize the burden of the collection confidential business information, will Hearings and Meetings Coordinator. of information on those who are to be made available for inspection by [FR Doc. 2010–12965 Filed 5–26–10; 11:15 am] respond, including through the use of interested parties. BILLING CODE 7020–02–P appropriate automated, electronic,

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mechanical, or other technological of response, and estimated total burden deceased Federal employees which collection techniques or other forms may be obtained from the RegInfo.gov verify dependents status when making a of information technology, e.g., Web site at http://www.reginfo.gov/ claim for benefits and on a periodic permitting electronic submission of public/do/PRAMain or by contacting basis in accepted claims. Some of the responses. Darrin A. King on 202–693–4129 (this is forms are used to obtain information on not a toll-free number)/e-mail: claimed dependents in disability cases. Overview of This Information [email protected]. For additional information, see related Collection Interested parties are encouraged to notice published in the Federal Register (1) Type of Information Collection: send comments to the Office of on January 28, 2010 (75 FR 4587). New collection. Information and Regulatory Affairs, Agency: Office of Workers’ (2) Title of the Form/Collection: Attn: OMB Desk Officer for the Compensation Programs (OWCP). COPS’ Rural Law Enforcement National Department of Labor—Office of Type of Review: Extension without Training Assessment. Workers’ Compensation Programs change of a currently approved (3) Agency form number, if any, and (OWCP), Office of Management and collection. the applicable component of the Budget, Room 10235, Washington, DC Title of Collection: Certification By Department sponsoring the collection: 20503, Telephone: 202–395–7316/Fax: School Official. None. U.S. Department of Justice Office 202–395–5806 (these are not toll-free OMB Control Number: 1240–0031. of Community Oriented Policing numbers), E-mail: Agency Form Number: CM–981. Services. [email protected] within Affected Public: Individuals or (4) Affected public who will be asked 30 days from the date of this publication Households. or required to respond, as well as a brief in the Federal Register. In order to Total Estimated Number of abstract: Primary: Law enforcement ensure the appropriate consideration, Respondents: 300. agencies. comments should reference the OMB Total Estimated Annual Burden (5) An estimate of the total number of Control Number (see below). Hours: 50. respondents and the amount of time The OMB is particularly interested in Total Estimated Annual Costs Burden estimated for an average respondent to comments which: (Operation and Maintenance): $0. respond/reply: • Evaluate whether the proposed Description: CM–981 is completed by It is estimated that approximately collection of information is necessary a school official to verify whether a 6569 respondents biannually will for the proper performance of the Black Lung beneficiary’s dependent, complete the form within 27 minutes. functions of the agency, including aged 18 to 23, qualifies as a full-time (6) An estimate of the total public whether the information will have student. For additional information, see burden (in hours) associated with the practical utility; related notice published in the Federal collection: 2954.5 total burden hours. • Evaluate the accuracy of the Register on January 28, 2010 (75 FR If additional information is required agency’s estimate of the burden of the 4585). contact: Lynn Bryant, Department proposed collection of information, Darrin A. King, Clearance Officer, United States including the validity of the Department of Justice, Justice methodology and assumptions used; Departmental Clearance Officer. Management Division, Policy and • Enhance the quality, utility, and [FR Doc. 2010–12944 Filed 5–27–10; 8:45 am] Planning Staff, Patrick Henry Building, clarity of the information to be BILLING CODE 4510–27–P Suite 1600, 601 D Street, NW., collected; and Washington, DC 20530. • Minimize the burden of the DEPARTMENT OF LABOR Dated: May 24, 2010. collection of information on those who are to respond, including through the Lynn Bryant, use of appropriate automated, Office of the Secretary Department Clearance Officer, PRA, U.S. electronic, mechanical, or other Department of Justice. Submission for OMB Review: technological collection techniques or Comment Request [FR Doc. 2010–12939 Filed 5–27–10; 8:45 am] other forms of information technology, BILLING CODE 4410–AT–P e.g., permitting electronic submission of May 24, 2010. responses. The Department of Labor (DOL) Agency: Office of Workers’ hereby announces the submission of the DEPARTMENT OF LABOR Compensation Programs (OWCP). following public information collection Type of Review: Extension without requests (ICR) to the Office of Office of the Secretary change of a currently approved Management and Budget (OMB) for collection. review and approval in accordance with Submission for OMB Review: Title of Collection: Claim for Comment Request the Paperwork Reduction Act of 1995 Compensation by Dependents (Pub. L. 104–13, 44 U.S.C. chapter 35). Information Reports. May 25, 2010. A copy of each ICR, with applicable OMB Control Number: 1240–0013. The Department of Labor (DOL) Agency Form Numbers: CA–5; CA–5b; supporting documentation; including hereby announces the submission of the CA–1031; and CA–1074. among other things a description of the following public information collection Affected Public: Individuals or likely respondents, proposed frequency requests (ICR) to the Office of Households. of response, and estimated total burden Management and Budget (OMB) for Total Estimated Number of may be obtained from the RegInfo.gov review and approval in accordance with Respondents: 1,358. Web site at http://www.reginfo.gov/ the Paperwork Reduction Act of 1995 Total Estimated Annual Burden public/do/PRAMain or by contacting (Pub. L. 104–13, 44 U.S.C. chapter 35). Hours: 870. Darrin A. King on 202–693–4129 (this is A copy of each ICR, with applicable Total Estimated Annual Costs Burden not a toll-free number)/e-mail: supporting documentation; including (Operation and Maintenance): $638. [email protected]. among other things a description of the Description: These reports request Interested parties are encouraged to likely respondents, proposed frequency information from the survivors of send comments to the Office of

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Information and Regulatory Affairs, employees who die from injuries DEPARTMENT OF LABOR Attn: OMB Desk Officer for the incurred in connection with service Department of Labor—Office of with an Armed Force in a contingency Employment and Training Workers’ Compensation Programs operation. Section 8102a also permits Administration (OWCP), Office of Management and agencies to authorize retroactive Budget, Room 10235, Washington, DC payment of the death gratuity for [TA–W–71,494] 20503, Telephone: 202–395–7316/Fax: employees who died on or after October 202–395–5806 (these are not toll-free 7, 2001, in service with an Armed Force Johns Manville, Engineered Products numbers), E-mail: in the theater of operations of Operation Division, Spartanburg, SC; Notice of [email protected] within Enduring Freedom and Operation Iraqi Affirmative Determination Regarding 30 days from the date of this publication Freedom. Form CA–40 requests the Application for Reconsideration in the Federal Register. In order to information necessary from the ensure the appropriate consideration, employee to accomplish this variance. By application dated May 2, 2010, a comments should reference the OMB Form CA–41 provides the means for petitioner requested administrative Control Number (see below). those named beneficiaries and possible reconsideration of the negative The OMB is particularly interested in recipients to file claims for those determination regarding workers’ comments which: benefits and requests information from eligibility to apply for Trade Adjustment • Evaluate whether the proposed such claimants so that OWCP may Assistance (TAA) applicable to workers collection of information is necessary determine their eligibility for payment. and former workers of the subject firm. for the proper performance of the Further, the statute and regulations functions of the agency, including The determination was issued on April require agencies to notify OWCP whether the information will have 16, 2010. The Notice of Determination immediately upon the death of a practical utility; will soon be published in the Federal • Evaluate the accuracy of the covered employee. CA–42 provides the Register. agency’s estimate of the burden of the means to accomplish this notification The initial investigation resulted in a and requests information necessary to proposed collection of information, negative determination based on the administer any claim for benefits including the validity of the finding that imports of polyester non- resulting from such a death. For methodology and assumptions used; woven fabrics did not contribute • additional information, see related Enhance the quality, utility, and importantly to worker separations at the notice published in the Federal Register clarity of the information to be subject firm and no shift of production on January 28, 2010 (75 FR page 4586). collected; and to a foreign source occurred. • Minimize the burden of the Agency: Office of Workers’ In the request for reconsideration, the collection of information on those who Compensation Programs (OWCP). are to respond, including through the petitioner provided additional use of appropriate automated, Type of Review: Revision and information pertaining to the operations electronic, mechanical, or other Extension of a currently approved and customer base of the subject firm. collection. technological collection techniques or The Department has carefully other forms of information technology, Title of Collection: Claim for reviewed the request for reconsideration e.g., permitting electronic submission of Reimbursement-Assisted and the existing record and has responses. Reemployment. determined that the Department will Agency: Office of Workers’ OMB Control Number: 1240–0018. conduct further investigation to Compensation Programs (OWCP). determine if the workers meet the Type of Review: Revision and Agency Form Number: CA–2231. eligibility requirements of the Trade Act Extension of a currently approved Affected Public: Business or other for- of 1974. collection. profits. Title of Collection: Death Gratuity. Conclusion OMB Control Number: 1240–0017. Total Estimated Number of Agency Form Numbers: CA–40; CA– Respondents: 25. After careful review of the 41; and CA–42. Total Estimated Annual Burden application, I conclude that the claim is Affected Public: Individuals or Hours: 50. of sufficient weight to justify Households and Federal Government. Total Estimated Annual Costs Burden reconsideration of the U.S. Department Total Estimated Number of (Operation and Maintenance): $47. of Labor’s prior decision. The Respondents: 2,600. application is, therefore, granted. Total Estimated Annual Burden Description: To aid in the Hours: 659. employment of Federal employees with Signed at Washington, DC, this 14th day of Total Estimated Annual Costs Burden disabilities related to an on-the-job May 2010. (Operation and Maintenance): $12. injury, employers submit the Form CA– Del Min Amy Chen, Description: The National Defense 2231 to claim reimbursement for wages Certifying Officer, Division of Trade Authorization Act for Fiscal Year 2008, paid under the assisted reemployment Adjustment Assistance. Public Law 110–181, was enacted on project. This information allows for a [FR Doc. 2010–12894 Filed 5–27–10; 8:45 am] January 28, 2008. Section 1105 of Public prompt decision on payment. For BILLING CODE 4510–FN–P Law 110–181 amended the Federal additional information, see related Employees’ Compensation Act (FECA) notice published in the Federal Register creating a new section 8102a effective on February 18, 2010 (75 FR page 7291). upon enactment. This section establishes a new FECA death gratuity Darrin A. King, benefit of up to $100,000 for eligible Departmental Clearance Officer. beneficiaries of federal employees and [FR Doc. 2010–12832 Filed 5–27–10; 8:45 am] Non-Appropriated Fund Instrumentality BILLING CODE 4510–27–P

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DEPARTMENT OF LABOR assistance under Chapter 2 of Title II of the consumer goods, telecommunication Trade Act of 1974, as amended. and industrial applications to Mexico. Employment and Training Signed in Washington, DC, this 13th day of The amended notice applicable to Administration May, 2010. TA–W–71,805 is hereby issued as Del Min Amy Chen, follows: [TA–W–72,861] Certifying Officer, Division of Trade ‘‘All workers of Autosplice, Inc., including Stanley Furniture Company, Inc., Adjustment Assistance. on-site leased workers from Select Temporary Services and Payrolling.com, and Including On-Site Leased Workers [FR Doc. 2010–12889 Filed 5–27–10; 8:45 am] BILLING CODE 4510–FN–P including an employee in support of From Ameristaff Employment and Autosplice, Inc., San Diego, California Staffing Solutions, Stanleytown, VA; working off site in Farmingdale, New York Amended Certification Regarding (TA–W–71,805A), who became totally or DEPARTMENT OF LABOR Eligibility To Apply for Worker partially separated from employment on or Adjustment Assistance after July 23, 2008 through October 28, 2011, Employment and Training and all workers in the group threatened with In accordance with Section 223 of the Administration total or partial separation from employment Trade Act of 1974, as amended (‘‘Act’’), [TA–W–71,805, TA–W–71,805A] on date of certification through two years 19 U.S.C. 2273, the Department of Labor from the date of certification, are eligible to issued a Certification of Eligibility to Autosplice, Inc. Including On-Site apply for adjustment assistance under Leased Workers From Select Chapter 2 of Title II of the Trade Act of 1974, apply for Worker Adjustment Assistance as amended.’’ on May 5, 2010, applicable to workers Temporary Services and of the subject firm. The Department’s Payrolling.Com, San Diego, CA; Signed in Washington, DC, this 18th day of May 2010. Notice will soon be published in the Including an Employee in Support of Federal Register. Autosplice, Inc. San Diego, CA, Michael W. Jaffe, At the request of the State Agency, the Working Out of Farmingdale, NY; Certifying Officer, Division of Trade Department reviewed the certification Amended Certification Regarding Adjustment Assistance. for workers of the subject firm. The Eligibility To Apply for Worker [FR Doc. 2010–12896 Filed 5–27–10; 8:45 am] workers are engaged in activities related Adjustment Assistance BILLING CODE 4510–FN–P to the production of household furniture In accordance with Section 223 of the and furnishings. Workers of the subject Trade Act of 1974, as amended (‘‘Act’’), DEPARTMENT OF LABOR firm were eligible to apply for Trade 19 U.S.C. 2273, the Department of Labor Adjustment Assistance (TAA) under issued a Certification of Eligibility to Employment and Training TA–W–62,313A (expired on October 30, Apply for Worker Adjustment Administration 2009). On-site leased workers, however, Assistance on October 28, 2009, [TA–W–61,810] were not covered under TA–W– applicable to workers of Autosplice, 62,313A. Inc., including on-site leased workers B.G. Sulzle, Inc., Currently Known as Based on these findings, the from Select Temporary Services and Angiotech America, Inc., Including On- Department is amending this Payrolling.com. The notice was Site Leased Workers From certification to clarify that workers of published in the Federal Register Contemporary Personnel Services the subject firm who were partially or December 11, 2009 (74 FR 65795). (CPS), Staffworks and Tyteffco totally separated from employment on At the request of a State Agency, the Industries, North Syracuse, NY; or before October 30, 2009 must apply Department reviewed the certification Amended Certification Regarding for TAA under TA–W–62,313A, that for workers of the subject firm. The Eligibility To Apply for Worker workers of the subject firm who are workers are engaged in the production Adjustment Assistance and Alternative separated on or after October 31, 2009 of electrical connectors used in medical, Trade Adjustment Assistance through May 5, 2012 must apply for transportation, automotive, consumer TAA under TA–W–72,861, and that goods, telecommunication and In accordance with Section 223 of the leased workers from Ameristaff industrial applications. Trade Act of 1974 (19 U.S.C. 2273), and Employment and Staffing Solutions New information shows that a worker Section 246 of the Trade Act of 1974 (26 working on-site at the subject firm who separation has occurred involving an U.S.C. 2813), as amended, the are partially or totally separated from employee in support of the San Diego, Department of Labor issued a employment on or after November 16, California location of Autosplice, Inc., Certification Regarding Eligibility to 2008 through May 5, 2012 must apply working out of Farmingdale, New York. Apply for Worker Adjustment for TAA under TA–W–72,861. Ms. Pamela J. Sokol provided sales and Assistance and a Negative The amended notice applicable to the marketing functions supporting the San Determination Regarding Eligibility to TA–W–72,861 is hereby issued as Diego, California production facility of Apply for Alternative Trade Adjustment follows: the subject firm. Assistance on August 7, 2007, All workers of Stanley Furniture Company, Based on these findings, the applicable to workers of B.G. Sulzle, Inc., Stanleytown, Virginia, who became Department is amending this Inc., including on-site leased workers totally or partially separated from certification to include an employee in from Contemporary Personnel Services employment on or after October 31, 2009 support of the San Diego, California and Staffworks, North Syracuse, New through May 5, 2012, and all on-site leased facility working out of Farmingdale, York. The notice was published in the workers from Ameristaff Employment and New York. Federal Register on August 27, 2007 (72 Staffing Solutions, who became partially or The intent of the Department’s FR 49024). The notice was amended on totally separated from employment on or after November 16, 2008 through May 5, certification is to include all workers of September 12, 2008 to include workers 2012, and all workers in the group threatened the subject firm who were adversely wages are report under a separated with total or partial separation from affected by a shift in production of Unemployment Insurance (UI) tax employment on May 5, 2010 through May 5, electrical connectors used in for account for Angiotech America, Inc. The 2012, are eligible to apply for adjustment medical, transportation, automotive, notice as published in the Federal

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Register on September 23, 2008 (73 FR DEPARTMENT OF LABOR for adjustment assistance under Section 223 54860). of the Trade Act of 1974, and are also eligible Employment and Training to apply for alternative trade adjustment At the request of the State agency, the Administration assistance under Section 246 of the Trade Act Department reviewed the certification of 1974.’’ [TA–W–65,762] for workers of the subject firm. The Signed at Washington, DC this 14th day of workers are engaged in employment May 2010. related to the production of stainless Chrysler, LLC, Sterling Heights Assembly Plant Including On-Site Richard Church, steel surgical needles. Leased Workers From Caravan Knight Certifying Officer, Division of Trade New information shows that workers Facilities Management LLC and Adjustment Assistance. leased from Tyteffco Industries were Resource Technologies, Sterling [FR Doc. 2010–12893 Filed 5–27–10; 8:45 am] employed on-site at the North Syracuse, Heights, MI; Amended Certification BILLING CODE 4510–FN–P New York location of B.G. Sulzle, Inc. Regarding Eligibility To Apply for The Department has determined that Worker Adjustment Assistance and these workers were sufficiently under Alternative Trade Adjustment DEPARTMENT OF LABOR the control of B.G. Sulzle, Inc. to be Assistance Employment and Training considered leased workers. In accordance with Section 223 of the Administration Based on this finding, the Department Trade Act of 1974 (19 U.S.C. 2273), and is amending this certification to include Section 246 of the Trade Act of 1974 (26 [TA–W–71,705] workers leased from Tyteffco Industries U.S.C. 2813), as amended, the working on-site at the North Syracuse, Department of Labor issued a Arcelor Mittal, Including On-Site New York location of the subject firm. Certification of Eligibility to Apply for Leased Workers From Adecco, ESW, The intent of the Department’s Worker Adjustment Assistance and Inc., Guardsmark, Hudson Global certification is to include all workers Alternative Trade Adjustment Resources, Multi Serv and Quaker Chemical, Hennepin, IL; Amended employed at B.G. Sulzle, Inc., North Assistance on April 27, 2009, applicable Certification Regarding Eligibility To Syracuse, New York who were to workers of Chrysler, LLC, Sterling Apply for Worker Adjustment adversely affected by increased imports Heights Assembly Plant, Sterling Heights, Michigan. The notice was Assistance of stainless steel surgical needles. published in the Federal Register on In accordance with Section 223 of the The amended notice applicable to May 18, 2009 (74 FR 23214). The notice Trade Act of 1974, as amended (‘‘Act’’), TA–W–61,810 is hereby issued as was amended on June 29, 2009 to 19 U.S.C. 2273, the Department of Labor follows: include on-site leased workers of issued a Certification of Eligibility to Caravan Knight Facilities Management All workers of B.G. Sulzle, Inc., currently Apply for Worker Adjustment LLC. The notice was published in the known as Angiotech America, Inc., including Assistance on March 26, 2010, Federal Register on July 14, 2009. on-site leased workers from Contemporary applicable to workers of Arcelor Mittal, At the request of the State agency, the Personnel Services (CPS), Staffworks, and including on-site leased workers from Department reviewed the certification Tyteffco Industries, North Syracuse, New Adecco, ESW, Inc., Guardsmark, for workers of the subject firm. The York, who became totally or partially Hudson Global Resources, Hennepin, workers assembled the Chrysler Sebring, separated from employment on or after July Illinois. The notice was published in the Chrysler Sebring Convertible and the 9, 2006, through August 7, 2009, are eligible Federal Register on April 23, 2010 (75 Dodge Avenger. to apply for adjustment assistance under FR 21355). The notice was amended on Section 223 of the Trade Act of 1974, and are New information shows that workers leased from Resource Technologies were April 27, 2010 to include on-site leased also eligible for alternative trade adjustment workers from Multi Serv. The notice assistance under Section 246 of the Trade Act employed on-site at the Sterling, was published in the Federal Register of 1974. Michigan location of Chrysler, LLC, Sterling Heights Plant. The Department on May 12, 2010 (75 FR 26793) Signed at Washington, DC, this 14th day of At the request of the State, the May 2008. has determined that these workers were sufficiently under the control of the Department reviewed the certification Richard Church, subject firm to be considered leased for workers of the subject firm. The Certifying Officer, Division of Trade workers. workers are engaged in activities in Adjustment Assistance. Based on these findings, the production of hot and cold rolled steel. [FR Doc. 2010–12892 Filed 5–27–10; 8:45 am] Department is amending this The company reports that workers leased from Quaker Chemical were BILLING CODE 4510–FN–P certification to include workers leased from Resource Technologies working employed on-site at the Hennepin, on-site at the Sterling, Michigan Illinois location of Arcelor Mittal. The location of Chrysler, LLC, Sterling Department has determined that these Heights Plant. workers were sufficiently under the The amended notice applicable to control of the subject firm to be TA–W–65,762 is hereby issued as considered leased workers. follows: Based on these findings, the Department is amending this ‘‘All workers of Chrysler, LLC, Sterling certification to include workers leased Heights Plant, including on-site leased from Quaker Chemical working on-site workers from Caravan Knight Facilities Management LLC and Resource at the Hennepin, Illinois location of Technologies, Sterling, Michigan, who Arcelor Mittal. became totally or partially separated from The amended notice applicable to employment on or after March 8, 2008, TA–W–71,705 is hereby issued as through April 27, 2011, are eligible to apply follows:

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All workers Arcelor Mittal, including on- parts produced outside the United (1) A significant number or proportion site leased workers from Adecco, ESW, Inc., States that are like or directly of the workers in the workers’ firm have Guardsmark, Hudson Global Resources, competitive with imports of articles become totally or partially separated, or Multi Serv and Quaker Chemical Hennepin, incorporating one or more component are threatened to become totally or Illinois, who became totally or partially separated from employment on or after July parts produced by such firm have partially separated; 6, 2008, through March 26, 2012, and all increased; (2) The workers’ firm is a Supplier or workers in the group threatened with total or (D) Imports of articles like or directly Downstream Producer to a firm that partial separation from employment on the competitive with articles which are employed a group of workers who date of certification through two years from produced directly using services received a certification of eligibility the date of certification, are eligible to apply supplied by such firm, have increased; under Section 222(a) of the Act, and for adjustment assistance under Chapter 2 of and such supply or production is related to Title II of the Trade Act of 1974, as amended. (4) The increase in imports the article or service that was the basis Signed at Washington, DC, this 17th day of contributed importantly to such for such certification; and May 2010. workers’ separation or threat of (3) Either— Richard Church, separation and to the decline in the (A) The workers’ firm is a supplier Certifying Officer, Division of Trade sales or production of such firm; or and the component parts it supplied to Adjustment Assistance. II. Section 222(a)(2)(B) all of the the firm described in paragraph (2) [FR Doc. 2010–12895 Filed 5–27–10; 8:45 am] following must be satisfied: accounted for at least 20 percent of the (1) A significant number or proportion BILLING CODE 4510–FN–P production or sales of the workers’ firm; of the workers in such workers’ firm or have become totally or partially (B) A loss of business by the workers’ DEPARTMENT OF LABOR separated, or are threatened to become firm with the firm described in totally or partially separated; paragraph (2) contributed importantly to Employment and Training (2) One of the following must be the workers’ separation or threat of Administration satisfied: separation. (A) There has been a shift by the In order for an affirmative Notice of Determinations Regarding workers’ firm to a foreign country in the determination to be made for adversely Eligibility To Apply for Worker production of articles or supply of affected workers in firms identified by Adjustment Assistance services like or directly competitive the International Trade Commission and with those produced/supplied by the a certification issued regarding In accordance with Section 223 of the workers’ firm; eligibility to apply for worker Trade Act of 1974, as amended (19 (B) There has been an acquisition adjustment assistance, each of the group U.S.C. 2273) the Department of Labor from a foreign country by the workers’ eligibility requirements of Section 222(f) herein presents summaries of firm of articles/services that are like or of the Act must be met. determinations regarding eligibility to directly competitive with those apply for trade adjustment assistance for produced/supplied by the workers’ firm; (1) The workers’ firm is publicly workers by (TA–W) number issued and identified by name by the International during the period of May 10, 2010 (3) The shift/acquisition contributed Trade Commission as a member of a through May 14, 2010. importantly to the workers’ separation domestic industry in an investigation In order for an affirmative or threat of separation. resulting in— determination to be made for workers of In order for an affirmative (A) An affirmative determination of a primary firm and a certification issued determination to be made for adversely serious injury or threat thereof under regarding eligibility to apply for worker affected workers in public agencies and section 202(b)(1); adjustment assistance, each of the group a certification issued regarding (B) An affirmative determination of eligibility requirements of Section eligibility to apply for worker market disruption or threat thereof 222(a) of the Act must be met. adjustment assistance, each of the group under section 421(b)(1); or I. Under Section 222(a)(2)(A), the eligibility requirements of Section (C) An affirmative final determination following must be satisfied: 222(b) of the Act must be met. of material injury or threat thereof under (1) A significant number or proportion (1) A significant number or proportion section 705(b)(1)(A) or 735(b)(1)(A) of of the workers in such workers’ firm of the workers in the public agency have the Tariff Act of 1930 (19 U.S.C. have become totally or partially become totally or partially separated, or 1671d(b)(1)(A) and 1673d(b)(1)(A)); separated, or are threatened to become are threatened to become totally or (2) The petition is filed during the 1- totally or partially separated; partially separated; year period beginning on the date on (2) The sales or production, or both, (2) The public agency has acquired which— of such firm have decreased absolutely; from a foreign country services like or (A) A summary of the report and directly competitive with services submitted to the President by the (3) One of the following must be which are supplied by such agency; and International Trade Commission under satisfied: (3) The acquisition of services section 202(f)(1) with respect to the (A) Imports of articles or services like contributed importantly to such affirmative determination described in or directly competitive with articles workers’ separation or threat of paragraph (1)(A) is published in the produced or services supplied by such separation. Federal Register under section 202(f)(3); firm have increased; In order for an affirmative or (B) Imports of articles like or directly determination to be made for adversely (B) Notice of an affirmative competitive with articles into which one affected secondary workers of a firm and determination described in or more component parts produced by a certification issued regarding subparagraph (1) is published in the such firm are directly incorporated, eligibility to apply for worker Federal Register; and have increased; adjustment assistance, each of the group (3) The workers have become totally (C) Imports of articles directly eligibility requirements of Section or partially separated from the workers’ incorporating one or more component 222(c) of the Act must be met. firm within—

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(A) The 1-year period described in Engineering, Roseville, MI: June 29, TA–W–73,135: Hewlett-Packard paragraph (2); or 2008. Company, Enterprise Business, (B) Notwithstanding section 223(b)(1), TA–W–72,284: Intermatic Incorporated, Storage Works Division, Solutions the 1-year period preceding the 1-year Intermatic Distribution Center, Platform Division, Marlboro, MA: period described in paragraph (2). American Staffing Resource, Spring December 15, 2008. Grove, IL: September 10, 2008. TA–W–73,218: International Business Affirmative Determinations for Worker TA–W–72,781: World Color (USA), LLC, Machines Corporation (IBM), ITD Adjustment Assistance Formerly Know As Quebecor World, Business Unit, Division 7, E-mail The following certifications have been Leased Workers from Randstad and Collaboration Group, etc., issued. The date following the company Temporary, Covington, TN: Armonk, NY: January 6, 2009. name and location of each November 4, 2008. TA–W–73,289: Rainbow Play Systems determination references the impact TA–W–73,017: Clark Equipment Incorporated, Albert Lea, MN: date for all workers of such Company, Bobcat Division, January 14, 2009. determination. Bismarck, ND: December 2, 2008. TA–W–73,423: The Berry Company LLC, The following certifications have been TA–W–73029A: Faurecia Exhaust Local Insight Media Holdings etc., issued. The requirements of Section Systems, West Plant, Troy, OH: Miamisburg, OH: February 1, 2009. 222(a)(2)(A) (increased imports) of the December 7, 2008. TA–W–73,424: The Berry Company LLC, Trade Act have been met. TA–W–73,029: Faurecia Exhaust A Subsidiary of Local Insight Media Systems, East Plant, Troy, OH: TA–W–72,288: Caterpillar, Americas Holdings, Inc., Cincinnati, OH: December 7, 2008. February 1, 2009. Operations Division—Aurora Plant, TA–W–73,112: Sundance Spas, Inc., Aurora, IL: September 8, 2008. TA–W–73,425: The Berry Company LLC, Leased Workers from Personnel Local Insight Media Holdings, TA–W–72,331: Industrial Nut Plus, Chino, CA: December 15, Corporation, Sandusky, OH: Dayton, OH: February 1, 2009. 2008. TA–W–73,563: International Business September 12, 2008. TA–W–73,183: Halliburton Company, TA–W–72,347: Genesis Furniture Machines (IBM), Global Business Carrolton Mfg. & Technology, Services, Division 6C, Application Industries, Inc., Spruce Pine, NC: Leased Workers from Kelly Services, September 10, 2008. Services), Sterling Forest, NY: Icon, Carrolton, TX: December 16, February 24, 2009. TA–W–72,711: Wire Products Company, 2008. Inc, Cleveland, OH: October 27, TA–W–72,378: Dow Jones & Company, TA–W–73,409: Sumitomo Electric Inc., Information Technology 2008. Wiring Systems, Inc., A Subsidiary Department, Aerotech, Monmouth TA–W–73,362: Leggett and Platt, Inc., of Sumitomo Electric Industries, Adjustable Bed Division, Junction, NJ: September 22, 2008. LTD., Wiring Harness Division, TA–W–72,570: Michaels Stores, Inc., Winchester, KY: January 20, 2009. Bowling Green, KY: February 2, TA–W–71,046: Dresser Waukesha, Accounts Payable Office, Tata 2009. Consulting Services, Grand Prairie, Division of Dresser, Inc. Leased TA–W–73,742: Covidien, Medical TX: October 5, 2008. Workers from Stivers Staffing Supplies Division, Leased Workers TA–W–73,371: The State Media Services, Waukesha, WI: June 5, Kelly Services, First Choice Staffing, Company, Finance Division, Leased 2008. Oriskany Falls, NY: March 17, 2009. TA–W–72,472: Crane Merchandising TA–W–73,792: Kenkel Corporation, Workers from John Shell Associates Systems, North American Vending Adhesives Division, Leased Workers and Roper etc., Columbia, SC: Solutions, Leased Workers Labor from Spherion and Agile 1, Buffalo, January 22, 2009. TA–W–73,727: Berry, Local Insight Ready, Michener etc., Bridgeton, NY: March 17, 2009. Media Holdings, Inc., Leased MO: September 30, 2008. TA–W–73,120: SPX Corporation, Flow TA–W–73,027: Picture Source, Leased Technology Division, Buffalo, NY: Workers from Kelly Services, Workers From Labor Works, Seattle, December 16, 2008. Honolulu, HI: March 10, 2009. TA–W–73,728: The Berry Company, WA: November 25, 2008. TA–W–73,558: Robert Bosch, LLC, On Leased Workers form Bosch LLC, Local Insight Media Holdings, The following certifications have been Inc., FKS Local Insight Yellow issued. The requirements of Section Management Services NA, Quaker Chemical etc., Johnson City, TN: Pages, St. Peters, MO: March 10, 222(a)(2)(B) (shift in production or 2009. services) of the Trade Act have been February 23, 2009. TA–W–71450A: Hewlett Packard TA–W–73,729: The Berry Company, LLC met. Company, Imaging and Printing (LIYP), Local Insight Media TA–W–72,411: Emerson Power Group, World Wide Product Data Holdings, Inc., FKS Local Insight Transmission, Division of Emerson Management Operation, Fort Yellow Pages, La Crosse, WI: March Electric Co., Leased Workers from Collins, CO: June 24, 2008. 10, 2009. Challenge Industries etc, Ithaca, TA–W–71,450: Hewlett Packard TA–W–73,730: The Berry Company, LLC NY: September 21, 2008. Company, Imaging and Printing (LIYP), Local Insight Media TA–W–73,047: United States Steel Group, World Wide Product Data Holdings, Inc., FKS Local Insight Corporation, Minnesota Ore Management Operation, Boise, ID: Yellow Pages, Federal Way, WA: Operations Division, Leased June 24, 2008. March 10, 2009. Workers from Manpower, Inc., TA–W–72,602: AT&T Operations, Inc., TA–W–73,732: The Berry Company, Keewatin, MN: December 7, 2008. Network Management Center, LLC, Local Insight Media Holdings, TA–W–71,229: Diamond Chain Leased Wkrs Artech Information Inc., FKS Local Insight Yellow Company, Division of Amsted Systems, LLC, Greenwood Village, Pages, Rochester, NY: March 10, Industries, Leased Workers from CO: October 8, 2008. 2009. Manpower, Indianapolis, IN: June TA–W–72,706: Berry Company, Local TA–W–73,733: The Berry Company, 11, 2008. Insight Media Holdings, Inc., FKS LLC, Local Insight Media Holdings, TA–W–71,636: Tri-Way Manufacturing, Local Insight Yellow Pages, Erie, Inc., FKA Local Insight Yellow, Inc., D/B/A Tri-Way Mold and PA: June 22, 2008. Matthews, NC: March 10, 2009.

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TA–W–73,519: SV Probe, Inc., Gilbert, The investigation revealed that the I hereby certify that the aforementioned AZ: February 16, 2009. criteria under paragraphs (a)(2)(A)(i) determinations were issued during the period The following certifications have been (decline in sales or production, or both) of May 10, 2010 through May 14, 2010. and (a)(2)(B) (shift in production or Copies of these determinations may be issued. The requirements of Section requested under the Freedom of Information 222(c) (supplier to a firm whose workers services to a foreign country) of section Act. Requests may be submitted by fax, are certified eligible to apply for TAA) 222 have not been met. courier services, or mail to FOIA Disclosure of the Trade Act have been met. TA–W–72,477: Peterbilt Motors Officer, Office of Trade Adjustment TA–W–71,829: Cameron Measurement Company, Nashville Plant, Assistance (ETA), U.S. Department of Labor, Systems, Including leased Workers Madison, TN. 200 Constitution Avenue, NW., Washington, of Express Personnel, Duncan, OK: The investigation revealed that the DC 20210 or to [email protected]. These determinations also are available on the June 27, 2008. criteria under paragraphs (a)(2)(A) Department’s Web site at http:// TA–W–72,022: Heidtman Steel (increased imports) and (a)(2)(B) (shift www.doleta.gov/tradeact under the Products, Incorporated, Leased in production or services to a foreign searchable listing of determinations. Workers from Phoenix Personnel, country) of section 222 have not been Dated: May 20, 2010. Erie, MI: July 13, 2008. met. Elliott S. Kushner, TA–W–72,406: Innovative Wood TA–W–71,900: MacGregor Golf North Products, Inc., Taylorsville, NC: America, Macgregor Golf Company, Certifying Officer, Division of Trade Adjustment Assistance. September 16, 2008. Albany, GA. TA–W–72,444: Toppan Photomasks, TA–W–72,154: Elcam, Inc., Clearfield, [FR Doc. 2010–12891 Filed 5–27–10; 8:45 am] Inc., Santa Clara, CA: September PA. BILLING CODE 4510–FN–P 23, 2008. TA–W–72,229A: Microfibres, Inc., TA–W–73,276: Vail Forest Area, Belden, MS. Division of Western Timberlands, TA–W–72,229: Microfibres, Inc., DEPARTMENT OF LABOR Weyerhaeuser NR, Rainier, WA: Winston Salem, NC. January 12, 2009. TA–W–72,350: Gits Manufacturing Employment and Training TA–W–73,398: Fuel Total Systems Company, Creston, IA. Administration TA–W–72,793: Gates Corporation, Fluid Company Ltd, Fuel Total Systems, Notice of Determinations Regarding California Corporation, Manpower, Power Division, Boone, IA. TA–W–72,881: Smart Paper, Hamilton, Eligibility To Apply for Worker Lathrop, CA: February 1, 2009. Adjustment Assistance TA–W–73,502: McFarland Logging, OH. Clinton, MT: February 10, 2009. TA–W–71,306: Sprint Nextel, Service In accordance with Section 223 of the TA–W–72,001A: Briggs-Shaffner and Repair Division, Grand Prairie, Trade Act of 1974, as amended (19 Acquisition Company, TX. U.S.C. 2273) the Department of Labor Simpsonville, SC: August 6, 2008. TA–W–71,836: Interstate Lift Trucks, herein presents summaries of TA–W–72,001: Briggs-Shaffner Inc., Interlift Enterprises, Inc., determinations regarding eligibility to Acquisition Company, Cleveland, OH. apply for trade adjustment assistance for Simpsonville, SC: August 6, 2008. Determinations Terminating workers by (TA–W) number issued TA–W–72,391: Ranal, Inc., DBA Ranal, Investigations of Petitions for Worker during the period of April 26, 2010 Inc., On-Site Independent Adjustment Assistance through May 7, 2010. Contractors, Auburn Hills, MI: In order for an affirmative After notice of the petitions was September 20, 2008. determination to be made for workers of published in the Federal Register and TA–W–73,043: Weyerhaeuser Company a primary firm and a certification issued on the Department’s Web site, as NR, Albany Trucking Division, regarding eligibility to apply for worker required by Section 221 of the Act (19 Weyerhaeuser Co, Albany, OR: adjustment assistance, each of the group U.S.C. 2271), the Department initiated December 4, 2008. eligibility requirements of Section TA–W–73,260: Supplier Link Services, investigations of these petitions. The following determinations 222(a) of the Act must be met. Including Leased Workers of I. Under Section 222(a)(2)(A), the Superior Staffing, Lafayette, CA: terminating investigations were issued because the petitioner has requested following must be satisfied: January 12, 2009. (1) A significant number or proportion that the petition be withdrawn. TA–W–73,261: Toyota Logistics of the workers in such workers’ firm Services, Leased Workers from TA–W–72,508: American Axle and have become totally or partially Harbor Services, Vascor LTD, Manufacturing, Detroit, MI. separated, or are threatened to become TA–W–72,714: General Motors Aerotek, Inc., etc., Fremont, CA: totally or partially separated; January 12, 2009. Company, Paint and Polymers (2) The sales or production, or both, Engineering Division, Warren, MI. of such firm have decreased absolutely; Negative Determinations for Worker TA–W–73,068: Grede Foundries, Adjustment Assistance and Incorporated, Vassar Foundry, (3) One of the following must be In the following cases, the Vassar, MI. satisfied: investigation revealed that the eligibility The following determinations (A) Imports of articles or services like criteria for worker adjustment assistance terminating investigations were issued or directly competitive with articles have not been met for the reasons because the petitioning groups of produced or services supplied by such specified. workers are covered by active firm have increased; The investigation revealed that the certifications. Consequently, further (B) Imports of articles like or directly criterion under paragraph (a)(1), or investigation in these cases would serve competitive with articles into which one (b)(1), or (c)(1) (employment decline or no purpose since the petitioning group or more component parts produced by threat of separation) of section 222 has of workers cannot be covered by more such firm are directly incorporated, not been met. than one certification at a time. have increased; TA–W–73,531: Titanium Metal TA–W–73,661: Maersk Agency USA, (C) Imports of articles directly Corporation, Toronto, OH. Inc., Charlotte, NC. incorporating one or more component

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parts produced outside the United (1) A significant number or proportion (A) The 1-year period described in States that are like or directly of the workers in the workers’ firm have paragraph (2); or competitive with imports of articles become totally or partially separated, or (B) Notwithstanding section 223(b)(1), incorporating one or more component are threatened to become totally or the 1-year period preceding the 1-year parts produced by such firm have partially separated; period described in paragraph (2). increased; (2) The workers’ firm is a Supplier or Affirmative Determinations for Worker (D) Imports of articles like or directly Downstream Producer to a firm that Adjustment Assistance competitive with articles which are employed a group of workers who produced directly using services received a certification of eligibility The following certifications have been supplied by such firm, have increased; under Section 222(a) of the Act, and issued. The date following the company and such supply or production is related to name and location of each (4) The increase in imports the article or service that was the basis determination references the impact contributed importantly to such for such certification; and date for all workers of such workers’ separation or threat of (3) Either— determination. The following certifications have been separation and to the decline in the (A) The workers’ firm is a supplier issued. The requirements of Section sales or production of such firm; or and the component parts it supplied to 222(a)(2)(A) (increased imports) of the II. Section 222(a)(2)(B) all of the the firm described in paragraph (2) Trade Act have been met. following must be satisfied: accounted for at least 20 percent of the (1) A significant number or proportion production or sales of the workers’ firm; TA–W–72,943: General Motors, LLC, f/n/ of the workers in such workers’ firm or s General Motors Corporation, Hamtramck Assembly Plant, have become totally or partially (B) A loss of business by the workers’ separated, or are threatened to become Detroit, MI: November 23/2008 firm with the firm described in TA–W–73,294: Elizabeth Carbide Die totally or partially separated; paragraph (2) contributed importantly to (2) One of the following must be Co., McKeesport, PA: January 5, the workers’ separation or threat of 2009. satisfied: separation. (A) There has been a shift by the TA–W–73,358: Red Wing Shoe In order for an affirmative workers’ firm to a foreign country in the Company, Inc., Danville, KY: determination to be made for adversely production of articles or supply of January 15/2009 affected workers in firms identified by services like or directly competitive TA–W–71,503A: ArcelorMittal USA Inc., the International Trade Commission and with those produced/supplied by the Long Products Division, Leased a certification issued regarding workers’ firm; Workers of Adecco, East Chicago, eligibility to apply for worker (B) There has been an acquisition IN: June 29/2008 adjustment assistance, each of the group from a foreign country by the workers’ TA–W–71,503B: ArcelorMittal USA Inc., eligibility requirements of Section 222(f) firm of articles/services that are like or Indiana Harbor East Division, of the Act must be met. directly competitive with those Leased Workers of ACMS, Adecco, produced/supplied by the workers’ firm; (1) The workers’ firm is publicly Advansys, etc., East Chicago, IN: and identified by name by the International June 29, 2008 (3) The shift/acquisition contributed Trade Commission as a member of a TA–W–71,558: Atlas Pressed Metals, importantly to the workers’ separation domestic industry in an investigation Leased Workers from Spherion, or threat of separation. resulting in— DuBois, PA: June 18, 2008 In order for an affirmative (A) An affirmative determination of TA–W–71,652: Cooper Tools, Hicksville, OH: July 13, 2008 determination to be made for adversely serious injury or threat thereof under TA–W–71,928: Broward Casting affected workers in public agencies and section 202(b)(1); (B) An affirmative determination of Foundry, Ft. Lauderdale, FL: August a certification issued regarding 4, 2009 eligibility to apply for worker market disruption or threat thereof under section 421(b)(1); or TA–W–71,956: Anvil International, Inc., adjustment assistance, each of the group Beck Manufacturing, Aurora, OH: eligibility requirements of Section (C) An affirmative final determination of material injury or threat thereof under July 22, 2008 222(b) of the Act must be met. TA–W–72,149: Knight Celotex, LLC, A section 705(b)(1)(A) or 735(b)(1)(A) of (1) A significant number or proportion Subsidiary of Knight Industries, the Tariff Act of 1930 (19 U.S.C. of the workers in the public agency have LLC, Lisbon Falls, ME: August 22, 1671d(b)(1)(A) and 1673d(b)(1)(A)); become totally or partially separated, or 2008 are threatened to become totally or (2) The petition is filed during the 1- TA–W–72,177: Heus Manufacturing, partially separated; year period beginning on the date on LLC, New Holstein, WI: August 19, (2) The public agency has acquired which— 2008 from a foreign country services like or (A) A summary of the report TA–W–72,187: Accuride—Cuyahoga directly competitive with services submitted to the President by the Falls, Aluminum Wheels Div., which are supplied by such agency; and International Trade Commission under Adecco, Cuyahoga Falls, OH: (3) The acquisition of services section 202(f)(1) with respect to the August 31, 2008 contributed importantly to such affirmative determination described in TA–W–72,226: NSI International Inc., workers’ separation or threat of paragraph (1)(A) is published in the Leased Workers from the Creative separation. Federal Register under section 202(f)(3); Group, Farmingdale, NY: June 28, In order for an affirmative or 2009 determination to be made for adversely (B) Notice of an affirmative TA–W–72,328: Summit Machine, Inc., affected secondary workers of a firm and determination described in Shoreview, MN: September 15, 2008 a certification issued regarding subparagraph (1) is published in the TA–W–72,516: Phoenix Engineering eligibility to apply for worker Federal Register; and Corp., Baldwin, WI: October 5, 2008 adjustment assistance, each of the group (3) The workers have become totally TA–W–72,540: Komatsu Forest, LLC, A eligibility requirements of Section or partially separated from the workers’ Subsidiary of Komatsu Forest, AB, 222(c) of the Act must be met. firm within— Shawano, WI: September 25, 2008

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TA–W–72,870: Boise Cascade, LLC, VA, Leased Workers Bender TA–W–73,411: MAPA Spontex, Inc., Oakdale, LA: November 16, 2008 Consulting etc., Richmond, VA: Total, S.A., Leased Workers from TA–W–72,880: Intermet—Archer Creek, June 5, 2008 Express Employment Professionals, Intermet Corporation, Lynchburg, TA–W–71,501A: Sony Electronics, Inc., Columbia, TN: February 2, 2009 VA: July 10, 2009 Leased Workers of Selectremedy, TA–W–73,417: TimeMed Labeling TA–W–73,100: Superior Tire and Staffmark, San Jose, CA: June 22, Systems, Inc., A Subsidiary of Rubber Corporation, Leased 2008 Precision Dynamics Corporation, Workers from Accent Human TA–W–71,501B: Sony Electronics, Inc., Burr Ridge, IL: February 1, 2009 Resources, Warren, PA: November Leased Workers Willstaff, Danco TA–W–73,418: TimeMed Labeling 30, 2008 Industrial Contractors etc., Dothan, Systems, Inc., A Subsidiary of TA–W–73,206: Smurfit-Stone Container AL: June 22, 2008 Precision Dynamics Corporation, Corporation, Containerboard Mill, TA–W–71,501C: Sony Electronics, Inc., Dallas, TX: February 1, 2009 Ontonagon, MI: December 18, 2008 Leased Workers Selectremedy, TA–W–73,463: Work-Fit, Inc., New TA–W–73,247: Mercer Tool Corporation, Itasca, IL: 6/22/2008 United Motor Manufacturing, Inc., St. Marys, OH: January 6, 2009 TA–W–71,501: Sony Electronics, Inc., Fremont, CA: February 4, 2009 TA–W–72,576: Alpha Polishing, Inc., SEL Headquarters, Leased Workers TA–W–73,468: Emerson Network Power, dba General Plating Co. and Brite of Selectremedy, Staffmark, San Energy Systems, Leased Workers Plating, Inc., Los Angeles, CA: Diego, CA: 6/22/2008 from Express Employment October 12, 2008 TA–W–72,005: Decca Classic Professionals etc., LaGrange, GA: TA–W–72,807: E.T. Lowe Publishing Upholstery, LLC, High Point, NC: January 27, 2009 Company, Nashville, TN: November August 10, 2008 TA–W–73,546: Beiersdorf, Inc., Leased 5, 2008 TA–W–72,010: Vesuvius USA, FKA Workers from First Temp, Inc., TA–W–72,514: Metal Creations, Div. Foseco Metallurgical, Inc., Cookson Norwalk, CT: February 18, 2009 Carsons, Inc., Bradley Personnel, Group, PLC, Conneaut, OH: August TA–W–73,665: Peek Traffic Corporation, Recruiting, High Point, NC: October 10, 2008 Signal Division, Bedford, PA: March 6, 2008 TA–W–72,171A: Hawker Beechcraft 8, 2009 TA–W–71,003: Endless Summer, Inc., Corporation, Salina, KS: August 27, TA–W–73,666: Badger Meter, Inc., dba Alroe Apparel, Springfield, 2008 Including On-Site Leased Workers TA–W–72,689: Freescale MO: May 20, 2008 from Sourcepoint Staffing, Semiconductor, Inc., Hardware/ TA–W–72,121: General Motors Milwaukee, WI: February 22, 2009 Software Design and Manufacturing Company, Technical Center, Leased TA–W–73,671: Vygon US LLC, A Wholly A, Austin, TX: October 19, 2008 Workers of Aerotek, Bartech Group, Owed Subsidiary of Vygon CDI Professional, Warren, MI: TA–W–72,981: TEVA Pharmaceuticals, IVAX Division, Congers, NY: Corporation, NKA Sophysa SA, August 14, 2008 Norristown, PA: February 26, 2009 TA–W–72,141: C.R. Laine Furniture, November 20, 2009 TA–W–73,144: Trimble Navigation, Ltd., TA–W–73,701: Acuity Brands Lighting, Hickory, NC: 8/20/2008 Inc., Leased Workers from TA–W–72,212: General Motors Corvallis, OR: December 16, 2008 TA–W–73,147: Shaw Fabricator, Addis, Sizemore, Cochran, GA: March 11, Company, f/n/a General Motors 2009 Corporation, Bowling Green LA: December 22, 2008 TA–W–73,167: Veeco Process TA–W–72,597: GE Healthcare Systems, Assembly Plant, Bowling Green, KY: Equipment, Inc., Mechanical Leased Workers from Adecco, August 31, 2008 Milwaukee, WI: October 12, 2008 TA–W–72,375: Commercial Furniture Process Equipment Division, Leased Workers from Aerotek, Camarillo, TA–W–72,623: Alienware Corporation, Group, Inc., f/k/a Falcon Products A Subsidiary of Dell, Inc., Miami, and Shelby Williams, Morristown, CA: December 24, 2008 TA–W–73,259: PPG Industries, Inc., FL: October 16, 2008 TN: September 21, 2008 Working on Site at New United TA–W–73,390: Mahoning Glass Plant, TA–W–72,861: Stanley Furniture Motor Manufacturing, Fremont, CA: GE Appliances and Lighting Div., Company, Inc., Including On-site January 12, 2009 General Electric, Niles, OH: March Leased Workers from Americastaff TA–W–73,307: Simclar International 29, 2010 Employment and Staffing, Corporation, Kenosha, WI: January TA–W–71,398: Yazaki North America, Stanleytown, VA: November 16, 14, 2009 Inc., Leased Workers from Kelly 2008 TA–W–73,317A: Sappi Fine Paper N.A., Services, Universal Staffing, TA–W–73,414: Russell Brands, LLC, SPPI Ltd., Leased Workers from Omnisource etc., Canton, MI: June Columbus Distribution Center, Fruit Alternative Solutions, Manpower 4, 2008 of the Loom, Midland, GA: January and Adecco, Westbrook, ME: TA–W–72,221A: AEES, Inc., El Paso, 29, 2009 January 20, 2009 TX: August 24, 2008 TA–W–73,415: Russell Brands, LLC, A TA–W–73,321: Associated Spring, TA–W–72,221: AEES, Inc., San Antonio, Subsidiary of Fruit of the Loom, Central Lake, Barnes Group, Leased TX: August 24, 2008 Reno, NV: January 29, 2009 Workers from Manpower, Inc., TA–W–72,390: Acme Electric, Actuant The following certifications have been Central Lake, MI: January 19, 2009 Corp., Leased Workers from issued. The requirements of Section TA–W–73,332: Mine Safety Appliances Enterforce & Temporary Design etc., 222(a)(2)(B) (shift in production or (MSA), Murrysville-Soft Goods, Spring Grove, IL: October 23, 2009 services) of the Trade Act have been Leased Workers from Advantage TA–W–72,507: Cypress Semiconductor met. Technical Resourcing, Murrysville, Corporation, Human Resources TA–W–71,694: Arcelor Mittal, f/n/a PA: 1/21/2009 Department, Leased Workers of Mittal Steel Walker Wire, Leased TA–W–73,391: Dakkota Integrated Doherty Staffing Solutions, San Workers from Leasing Systems, Systems, LLC, New United Motor Jose, CA: October 5, 2008 Ferndale, MI: July 15, 2008 Mfg., Leased Workers from Nelson TA–W–72,810: Durez Corporation, TA–W–71,058: WellPoint, Inc., DBA Staffing, Freemont, CA: January 25, Research & Development Div., Anthem Blue Cross Blue Shield of 2009 Sumitomo Bakelite North America

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Holding, North Tonawanda, NY: TA–W–72,877N: Avaya Inc., Avaya Appleone, Houston, TX: January 28, November 4, 2008 Professional Services (APS), Avaya 2009 TA–W–72,848A: Ingersoll-Rand PLC, Worldwide Services Group, King of TA–W–73,645: Bimbo Bakeries USA, Residential Solutions, Formerly Prussia, PA: November 12, 2008 Inc., Financial Shared Services, Doing Business as Trane TA–W–72,877O: Avaya Inc., Avaya Grupo Bimbo, Leased Workers Engineering Service, Fort Smith, Professional Services (APS), Avaya Comet Employment Agency, AR: November 13, 2008 Worldwide Services Group, Montebello, CA: January 28, 2009 TA–W–72,848: Ingersoll-Rand PLC, Alpharette, GA: November 12, 2008 TA–W–73,670: Bimbo Bakeries USA, Residential Solutions, Formerly TA–W–72,877P: Avaya Inc., Avaya Inc., Financial Shared Services Doing Business as Trane Professional Services (APS), Avaya Office, Grupo Bimbo S.A.B DE C. V., Engineering Service, Tyler, TX: Worldwide Services Group, Fort Worth, TX: January 28, 2009 November 13, 2008 Norcross, GA: November 12, 2008 TA–W–73,725: Michaels Stores Inc., TA–W–72,877A: Avaya Inc., Avaya TA–W–72,877Q: Avaya Inc., Avaya Information Systems, Irving, TX: Professional Services (APS), Avaya Professional Services (APS), Avaya March 10, 2009 Worldwide Services Group, Worldwide Services Group, Chesire, TA–W–72,163: Direct Brands, Inc., a Highlands Ranch, CO: November CT: November 12, 2008 Subsidiary of JMCK Corporation, 12, 2008 TA–W–72,877R: Avaya Inc., Avaya Indianapolis, IN: August 28, 2008 TA–W–72,877B: Avaya Inc., Avaya Professional Services (APS), Avaya TA–W–72,286: Unisys Corporation, Professional Services (APS), Avaya Worldwide Services Group, Tampa, Technology Bus. Unisys Infor., Fka Worldwide Services Group, FL: November 12, 2008 Bett, Leased Workers Hexaware Southfield, MI: November 12, 2008 TA–W–72,877S: Avaya Inc., Avaya Technologies, Plymouth, MI: TA–W–72,877C: Avaya Inc., Avaya Professional Services (APS), Avaya September 11, 2008 Professional Services (APS), Avaya Worldwide Services Group, St. TA–W–72,724: Freedom Eastern North Worldwide Services Group, Coppell, Petersburg, FL: November 12, 2008 Carolina Communications, Inc., dba TX: November 12, 2008 TA–W–72,877: Avaya Inc., Avaya The Daily News, Accounting TA–W–72,877D: Avaya Inc., Avaya Professional Services (APS), Avaya Division, Jacksonville, NC: October Professional Services (APS), Avaya Worldwide Services Group, Basking 28, 2008 Worldwide Services Group, Ridge, NJ: November 12, 2008 TA–W–73,039: OCE Imagistics Inc., Westminster, CO: November 12, TA–W–73,066: Nortel Networks, Oracle Support Team, Trumbull, 2008 Departments CA23 And 3R30, CT: November 26, 2008 TA–W–72,877E: Avaya Inc., Avaya Research Triangle Park, NC: TA–W–73,196: GMAC Insurance Professional Services (APS), Avaya December 9, 2008 Management Corporation, Billing Worldwide Services Group, TA–W–73,118: The Regulus Group, Div. Division, Leased Workers from Bellevue, WA: November 12, 2008 3i Infotech DBA First Remittance Comsys, Indox Services etc., TA–W–72,877F: Avaya Inc., Avaya Processing, Leased Workers from Maryland Heights, MO: December Professional Services (APS), Avaya Spherion, Louisville, KY: December 29, 2008 Worldwide Services Group, 16, 2008 TA–W–73,226: Freedom Colorado Indianapolis, IN: November 12, TA–W–73,127: Freescale Information, Inc., dba The Gazette, 2008 Semiconductor, Inc., Finance Division, Colorado Springs, TA–W–72,877G: Avaya Inc., Avaya Microcontroller Solutions Group CO: January 6, 2009 Professional Services (APS), Avaya (MSG), Austin, TX: December 9, TA–W–73,237: Ashland, Inc., Accounts Worldwide Services Group, 2008 Payable Division, Leased Workers Herndon, VA: November 12, 2008 TA–W–73,200: Sabre Holdings, Inc., from Express Personnel, Dublin, TA–W–72,877H: Avaya Inc., Avaya Travel Network Billing Department, OH: January 11, 2009 Professional Services (APS), Avaya Southlake, TX: December 31, 2008 TA–W–73,394: Varco Pruden Buildings, Worldwide Services Group, Drexel TA–W–73,233: The Berry Company LLC, Design and Detail Department, Hill, PA: November 12, 2008 Local Insight Media Holdings, Local Subsidiary of Bluescope, Evansville, TA–W–72,877I: Avaya Inc., Avaya Insight Yellow Pages, Lease Workers WI: January 26, 2009 Professional Services (APS), Avaya Kelly, Hudson, OH: January 7, 2009 Worldwide Services Group, Reston, TA–W–73,244: Sears Holdings The following certifications have been VA: November 12, 2008 Management Corporation, Dallas issued. The requirements of Section TA–W–72,877J: Avaya Inc., Avaya Support Center, Leased Workers 222(c) (supplier to a firm whose Professional Services (APS), Avaya from Snelling, Dallas, TX: January workers are certified eligible to Worldwide Services Group, 11, 2009 apply for TAA) of the Trade Act Milpitas, CA: November 12, 2008 TA–W–73,295: Weatherford have been met. TA–W–72,877K: Avaya Inc., Avaya International Ltd., Shared Services TA–W–71,252: Mold Base Industries, Professional Services (APS), Avaya Division, Benbrook, TX: January 14, Harrisburg, PA: June 15, 2008 Worldwide Services Group, 2009 TA–W–71,569: BBI, Sidney, OH: June Chelmsford, MA: November 12, TA–W–73,355: EMC Corporation, 24, 2008 2008 Information Infrastructure TA–W–71,575: A–Stamp Industries, TA–W–72,877L: Avaya Inc., Avaya Products, Ionix Software Engineers, Bryan, OH: July 6, 2008 Professional Services (APS), Avaya Hopkinton, MA: January 18, 2009 TA–W–71,627: Circuit Board Express, Worldwide Services Group, TA–W–73,506: Allstate Insurance Inc., Haverhill, MA: July 6, 2008 Overland Park, KS: November 12, Company, Allstate Financial TA–W–71,642: SPS Technologies 2008 Annuity Contact Center, Kelly, Waterford Company, Waterford, MI: TA–W–72,877M: Avaya Inc., Avaya Lincoln, NE: February 11, 2009 July 8, 2008 Professional Services (APS), Avaya TA–W–73,639: Bimbo Bakeries USA, TA–W–71,759: Meridian Automotive Worldwide Services Group, Norfolk, Inc., Financial Shared Services, Systems, Inc., Shelbyville, IN: July VA: November 12, 2008 Grupo Bimbo, Leased Workers of 3, 2008

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TA–W–72,040: Therm-O–Disc, Inc., TA–W–71,682: Eaton Aeroquip, LLC, TA–W–72,614: Parker-Hannifin Emerson Electric Co., Leased Division of Fluid Conveyance, Corporation, Cylinder Division, Workers of Kelly Services, Leased Workers from Manpower, Portland, OR Mansfield, OH: August 10, 2008 Van Wert, OH: July 13, 2008 TA–W–72,666: Kerry, Inc., Sweet TA–W–72,063: Outokumpu Stainless TA–W–73,216: Penske Logistics LLC, A Systems and Flavors Division, aka Plate, Inc., New Castle, IN: August Wholly Owned Subsidiary of Penske Kerry Ingredients and Flavors, 17, 2008 Truck Leasing Company, LP, Tualatin, OR TA–W–72,136: EMF Corporation, Evansville, IN: January 5, 2009 TA–W–72,737: General Electric Burkesville, KY: 8/25/2008 TA–W–73,646: International Automotive Company, Transportation Division, TA–W–72,425: Duro-Life Corporation, A Components, Warren, MI: March 1, Emporium, PA Division of Wells Manufacturing 2009 TA–W–72,787: Visual Systems Inc., DBA Lehigh Phoenix, A Subsidiary of Company, Leased Workers of and The following certifications have been Visant Corporation, Leased Workers Staffing, Algonquin, IL: September issued. The requirements of Section of Site Staffing, Inc., etc, 25, 2008 222(f) (firms identified by the Milwaukee, WI TA–W–72,551: American Tube and International Trade Commission) of the TA–W–72,927: IC Bus, LLC, Subsidiary Paper Company, Totowa, NJ: Trade Act have been met. of Navistar, Inc., Conway, AR October 7, 2008 TA–W–72,948: Cooper Tire & Rubber TA–W–72,690: Whirlaway Cincinnati, A TA–W–72,997: Precedent Furniture, Company, Cedar Rapids, IA: June Division of Sherrill, Leased Workers Subsidiary of Whirlaway 25, 2008 Corporation, Hamilton, OH: from the People Connection, October 1, 2008 Negative Determinations For Worker Newton, NC TA–W–73,175: Caraco Pharmaceutical TA–W–72,776: Masters Tool & Die, Inc., Adjustment Assistance Laboratories, Ltd., Sun Saginaw, MI: October 14, 2008 In the following cases, the Pharmaceutical Industries, Ltd., TA–W–72,961: Inteva Products, LLC, investigation revealed that the eligibility Leased Workers from Select Adrian, MI: November 3, 2008 criteria for worker adjustment assistance Staffing, Detroit, MI TA–W–73,250: Stein Steel Mill Services, have not been met for the reasons TA–W–73,186: The North Carolina Inc., Working On-Site at United specified. Moulding Company, Lexington, NC States Steel Corporation, Granite The investigation revealed that the TA–W–73,416: Desoto Mills, LLC, Fruit City, IL: July 8, 2008 criterion under paragraph (a)(1), or of the Loom, Fort Payne, AL TA–W–73,324A: Toyota Tsusho (b)(1), or (c)(1) (employment decline or TA–W–71,486: Northwest Metals, Inc., America, Inc., 41460 & 41320 Boyce threat of separation) of section 222 has Okolona, OH Rd., Leased Workers Benchmark, not been met. TA–W–72,008: Metro One Performance Staffing, Fremont, CA: TA–W–72,171: Hawker Beechcraft Telecommunications Inc., January 19, 2009 Corporation, Wichita, KS Beaverton, OR TA–W–73,324: Toyota Tsusho America, TA–W–73,384: B & K Trucking, Iraan, TA–W–72,341: Services Parts Inc., Working on-site at New United TX Operations (SPO)—Columbus, Motor Manufacturing, Inc., Subsidiary of General Motors The investigation revealed that the Fremont, CA: January 19, 2009 Company, Groveport, OH TA–W–73,545: TG California criteria under paragraphs (a)(2)(A)(i) TA–W–72,458: Veeder-Root Company, Automotive Sealing Inc., Toyoda (decline in sales or production, or both) Danaher Corporation, Altoona, PA Gosei Co., Leased Workers from and (a)(2)(B) (shift in production or TA–W–72,644: C & R Oilfield Services, Aerotek Processional Services, services to a foreign country) of section Inc., San Angelo, TX Hayward, CA: February 22, 2009 222 have not been met. TA–W–72,661: Air Comp, LLC, San TA–W–73,614: Technimark, LLC, Leased TA–W–72,983: R&M Manufacturing, Angelo, TX Workers of Mega Force Staffing Inc., Milton, WI TA–W–72,684: McMullin Chevrolet Group, Fayetteville, NC: February The investigation revealed that the Pontiac Oldsmobile, Inc., Dallas, 26, 2009 criteria under paragraphs (a)(2)(A) OR TA–W–71,726: Design Systems, (increased imports) and (a)(2)(B) (shift TA–W–72,709: Master Lock Company, Incorporated, Leased Workers from in production or services to a foreign LLC, A Division of Fortune Brands, 3P Engineering Services etc., country) of section 222 have not been Inc., Milwaukee, WI Farmington Hills, MI: July 10, 2008 met. TA–W–72,741: Landmark Automotive TA–W–72,504: Penske Logistics, LLC, LLC, Lawrenceburg, TN TA–W–71,032: Agy Holding TA–W–73,060: Harley-Davidson Motor Penske Truck Leasing Company Corporation, Huntingdon, PA Company Operations, Inc., York, L.P., Leased Workers from Randstad TA–W–71,261: Interlake Material PA and Transforce, Spring Hill, TN: Handling, Naperville, IL TA–W–73,099: Siemens Medical October 2, 2008 TA–W–71,503: ArcelorMittal Riverdale Solutions USA, Inc., Working on- TA–W–72,699: EMCOR Facility Services, Inc., A Subsidiary of ArcelorMittal site at Jefferson Regional Medical On-Site at Dell Products, LP, USA, Inc., Leased Workers of Center, Pittsburgh, PA Winston Salem, NC: October 27, Adecco and Ivara, Riverdale, IL TA–W–73,223: American Bridge 2008 TA–W–71,665: Future Visions, Micron Manufacturing, Reedsport, OR TA–W–73,136: Everett Sales, Inc., Fort Technology, Manassas, VA TA–W–73,317: Sappi Fine Paper N.A., Payne, AL: December 16, 2008 TA–W–71,895: Warn Industries, Inc., a SPPI Ltd., Leased Workers from The following certifications have been Subsidiary of Dover Corporation, Alternative Solutions, Manpower issued. The requirements of Section Clackamas, OR and Adecco, South Portland, ME 222(c) (downstream producer for a firm TA–W–72,264: Greenway Lumber TA–W–73,323: US Airways, Inc., whose workers are certified eligible to Company, Waynesboro, TN Passenger Service agents, Pittsburgh apply for TAA) of the Trade Act have TA–W–72,369: Gentex Corporation, International Airport, Pittsburgh, been met. Carbondale, PA PA

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TA–W–73,328: Sandy Corporation, TA–W–73,044: Avaya Inc., Avaya DEPARTMENT OF LABOR General Physics Corporation, Troy, Worldwide Services Group, Global MI Support Services (GSS) Employment and Training TA–W–73,369: Key Energy Pressure Organization, Coppell, TX Administration Pumping Services, LLC, Midland, TA–W–73,051: Maco, Inc., Shelby, NC [TA–W–72,247] TX TA–W–73,407: Express Energy Services TA–W–73,115: Solvay Advanced National Briquetting Corporation, a Operating, L.P., San Angelo, Texas Polymers, Marietta, OH Subsidiary of Harsco, Also Known as Division, San Angelo, TX TA–W–73,188: Hagemeyer North Performix East Chicago, East Chicago, TA–W–73,454: Ickes Chevrolet Cadillac America, working on Site at IN; Notice of Negative Determination Company, Inc., Robinson, IL Cummis Filtration, Lake Mills, IA Regarding Application for TA–W–73,521A: Citizens Gas Utility Reconsideration District, Wartburg, TN TA–W–73,439: A&S Building Systems, A TA–W–73,521B: Citizens Gas Utility Division NCI Building Systems, Inc., By application dated May 11, 2010, a District, Deerlodge, TN Rocky Mount, NC petitioner requested administrative TA–W–73,521: Citizens Gas Utility TA–W–73,572: Track Corporation, reconsideration of the Department’s District, Helenwood, TN Spring Lake, MI negative determination regarding TA–W–73,536: Allstate Insurance eligibility to apply for Trade Adjustment Company, Altoona Express Market TA–W–73,580: Rotodie Company, Inc., Assistance (TAA), applicable to workers Claim Office, Kelly, Altoona, PA dba Rotometrics, Meadows of Dan, and former workers of the subject firm. TA–W–73,597: Tandy Brands VA The denial notice was signed on April Accessories, Inc., Yoakum TA–W–73,653: Heartland Companies, 16, 2010, and will soon be published in Distribution Center, Yoakum, TX LTD., San Francisco, CA the Federal Register. TA–W–73,784A: Ferrania USA, Inc., TA–W–73,678: NPA Coatings, Inc., Pursuant to 29 CFR 90.18(c) reconsideration may be granted under D/B/A Ferrania Technologies, St. Leased from New United Motor Paul, MN the following circumstances: Manufacturing, Inc., Fremont, CA TA–W–73,784: Ferrania USA, Inc., (1) If it appears on the basis of facts D/B/A Ferrania Technologies, TA–W–73,699: ABM Janitorial, not previously considered that the Weatherford, OK Sacramento, CA determination complained of was TA–W–73,785: Ferrania USA, Inc., TA–W–73,720: Apria Healthcare, Irving, erroneous; D/B/A Ferrania Technologies, TX (2) If it appears that the determination Murrow, OH complained of was based on a mistake TA–W–73,786: Ferrania USA, Inc., TA–W–73,852: General Motors in the determination of facts not D/B/A Ferrania Technologies, Lake Corporation, Vehicle Manufacturing previously considered; or Worth, FL Division, Shreveport Assembly (3) If in the opinion of the Certifying TA–W–73,787: Ferrania USA, Inc., Plant, Shreveport, LA Officer, a misinterpretation of facts or of D/B/A Ferrania Technologies, TA–W–73,858: Hugo Boss Cleveland, the law justified reconsideration of the Eagan, MN Inc., Brooklyn, OH decision. The negative determination of the Determinations Terminating I hereby certify that the aforementioned TAA petition filed on behalf of workers Investigations of Petitions for Worker determinations were issued during the period at National Briquetting Corporation, a Adjustment Assistance of April 26, 2010 through May 7, 2010. subsidiary of Harsco, also known as After notice of the petitions was Copies of these determinations may be Performix East Chicago, East Chicago, published in the Federal Register and requested under the Freedom of Information Indiana, was based on the finding that on the Department’s Web site, as Act. Requests may be submitted by fax, there has been no increase in imports by required by Section 221 of the Act (19 courier services, or mail to FOIA Disclosure the subject firm or its customers, or a U.S.C. 2271), the Department initiated Officer, Office of Trade Adjustment shift/acquisition to a foreign country by Assistance (ETA), U.S. Department of Labor, investigations of these petitions. the subject firm; and that the subject 200 Constitution Avenue, NW., Washington, The following determinations firm did not produce an article or DC 20210 or to [email protected]. These terminating investigations were issued supply a service that was used by a firm determinations also are available on the because the petitioner has requested with a TAA-certified worker group in Department’s Web site at http:// that the petition be withdrawn. production of an article that was the www.doleta.gov/tradeact under the TA–W–70,982: Rexam Beverage Can searchable listing of determinations. basis for TAA certification. Company, Oklahoma City, OK In the request for reconsideration the TA–W–71,468: Electronic Data Systems, Dated: May 21, 2010. petitioner stated that the workers of the Auburn Hills, MI Elliott S. Kushner, subject firm should be eligible for TAA TA–W–71,718: DSFI, Honesdale, PA Certifying Officer, Division of Trade because of an increase in slag TA–W–71,984: Seagroatt Floral Adjustment Assistance. conditioner (another product of the Company, Inc., Albany, NY [FR Doc. 2010–12890 Filed 5–27–10; 8:45 am] subject firm) being exported to a foreign firm that is one of the subject firm’s TA–W–72,255: Optimal, Inc. and BILLING CODE 4510–FN–P Populus Group, Working on-site at primary customers, and that has itself General Motors Tech Center in begun to do the processing that had Warren, MI, Warren, MI previously been done by the subject TA–W–72,387: Sony Electronics, Inc., firm. Dothan, AL However, the conducting by a foreign TA–W–72,986: Wardwell Braiding customer in a foreign country of a Machine Company, Central Falls, RI production process formerly carried out TA–W–73,038: Vaquero Services, LP, in the United States by the subject firm Godley, TX cannot be the basis for certification of

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the subject firm since: (1) The subject DATES: Wednesday, June 30, 2010, NUCLEAR REGULATORY firm has not imported the products like 9 a.m. to 5:30 p.m.; and Thursday, COMMISSION and directly competitive with those it July 1, 2010, 9 a.m. to 3 p.m. EDT. [Docket No. 72–9; NRC–2010–0188] formerly produced—the products are ADDRESSES: NASA Headquarters, 300 E being manufactured in an offshore Notice of Docketing, Proposed Action, location and, rather than being imported Street, SW., Room 3H46, Washington, DC 20546. and Opportunity for a Hearing for into this country, are being consumed Renewal of Special Nuclear Material outside of the United States; and (2) the FOR FURTHER INFORMATION CONTACT: Ms. License No. SMN–2504 customer itself and not the subject firm Marian Norris, Science Mission has shifted production to an offshore Directorate, NASA Headquarters, AGENCY: Nuclear Regulatory location. Washington, DC 20546, (202) 358–4452, Commission. The petitioner did not supply facts fax (202) 358–4118, or ACTION: Notice. not previously considered; nor provide [email protected]. additional documentation indicating DATES: A request for hearing and/or that there was either (1) a mistake in the SUPPLEMENTARY INFORMATION: The petition for leave to intervene must be determination of facts not previously meeting will be open to the public up to filed no later than 60 days from May 28, considered or (2) a misinterpretation of the capacity of the room. The agenda for 2010. facts or of the law justifying the meeting includes the following FOR FURTHER INFORMATION CONTACT: reconsideration of the initial topics: Christopher M. Staab, Project Manager, determination. Licensing Branch, Division of Spent After careful review of the request for —Heliophysics Division Overview and Fuel Storage and Transportation, Office reconsideration, the Department Program Status of Nuclear Material Safety and determines that 29 CFR 90.18(c) has not —Senior Review of Operating Missions Safeguards, U.S. Nuclear Regulatory been met. —Research and Analysis Program Commission, Washington, DC 20555– Conclusion 0001. Telephone: (301) 492–3321; fax —Assessment of Heliophysics Division number: (301) 492–3348; e-mail: After review of the application and Science Accomplishments [email protected]. investigative findings, I conclude that It is imperative that the meeting be SUPPLEMENTARY INFORMATION: there has been no error or held on these dates to accommodate the misinterpretation of the law or of the I. Introduction scheduling priorities of the key facts which would justify The U.S. Nuclear Regulatory reconsideration of the Department of participants. Attendees will be requested to sign a register and to Commission (NRC or Commission) is Labor’s prior decision. Accordingly, the considering an application dated application is denied. comply with NASA security requirements, including the November 10, 2009, from the Signed in Washington, DC this 14th day of presentation of a valid picture ID, before Department of Energy (applicant or May 2010. receiving an access badge. Foreign DOE) for the renewal of its Special Del Min Amy Chen, Nuclear Material License No. SNM– nationals attending this meeting will be 2504, under the provisions of 10 CFR Certifying Officer, Division of Trade required to provide a copy of their Adjustment Assistance. Part 72, for the receipt, possession, passport, visa, or green card in addition [FR Doc. 2010–12897 Filed 5–27–10; 8:45 am] storage and transfer of spent fuel, to providing the following information BILLING CODE 4519–FN–P reactor-related Greater than Class C no less than 10 working days prior to (GTCC) waste and other radioactive the meeting: full name; gender; date/ materials associated with spent fuel place of birth; citizenship; visa/green storage at the Fort St. Vrain Independent NATIONAL AERONAUTICS AND card information (number, type, Spent Fuel Storage Installation (ISFSI), SPACE ADMINISTRATION expiration date); passport information located at the Fort St. Vrain site in (number, country, expiration date); Platteville, Colorado. If granted, the [Notice (10–061)] employer/affiliation information (name renewed license will authorize the of institution, address, country, NASA Advisory Council; Science applicant to continue to store spent fuel Committee; Heliophysics telephone); title/position of attendee. To in a dry cask storage system at the Subcommittee; Meeting expedite admittance, attendees with applicant’s Fort St. Vrain ISFSI. U.S. citizenship can provide identifying Pursuant to the provisions of 10 CFR AGENCY: National Aeronautics and information 3 working days in advance 72.42, the renewal term of the license Space Administration. by contacting Marian Norris via e-mail for the ISFSI would be twenty (20) ACTION: Notice of meeting. at [email protected] or by telephone at years. This application was docketed (202) 358–4452. under 10 CFR Part 72; the ISFSI Docket SUMMARY: The National Aeronautics and No. is 72–9. Space Administration (NASA) Dated: May 24, 2010. An NRC acknowledgment review, announces a meeting of the P. Diane Rausch, documented in an electronic mail to Heliophysics Subcommittee of the Advisory Committee Management Officer, DOE dated December 22, 2009, found NASA Advisory Council (NAC). This National Aeronautics and Space that the application contains sufficient Subcommittee reports to the Science Administration. information for the NRC staff to begin its Committee of the NAC. The Meeting [FR Doc. 2010–12813 Filed 5–27–10; 8:45 am] technical review. The Commission will will be held for the purpose of soliciting BILLING CODE P approve the license renewal application from the scientific community and other if it determines that the application persons scientific and technical meets the standards and requirements of information relevant to program the Atomic Energy Act of 1954, as planning. amended (the Act) and the

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Commission’s regulations, including the issued digital ID certificate). Based upon their counsel or representative) must findings required by 10 CFR 72.40. this information, the Secretary will apply for and receive a digital ID These findings will be documented in a establish an electronic docket for the certificate before a hearing request/ Safety Evaluation Report. The NRC will hearing in this proceeding if the petition to intervene is filed so that they complete an environmental evaluation, Secretary has not already established an can obtain access to the document via in accordance with 10 CFR Part 51, to electronic docket. the E-Filing system. determine if the preparation of an Information about applying for a A person filing electronically using environmental impact statement is digital ID certificate is available on the agency’s adjudicatory E-Filing warranted or if an environmental NRC’s public Web site at http:// system may seek assistance by assessment and finding of no significant www.nrc.gov/site-help/e-submittals/ contacting the NRC Meta System Help impact are appropriate. This action will apply-certificates.html. System Desk through the ‘‘Contact Us’’ link be the subject of a subsequent notice in requirements for accessing the E– located on the NRC Web site at http:// the Federal Register. Submittal server are detailed in NRC’s www.nrc.gov/site-help/e- ‘‘Guidance for Electronic Submission,’’ submittals.html, by e-mail at II Opportunity To Request a Hearing which is available on the agency’s [email protected], or by a toll- The NRC hereby provides notice that public Web site at http://www.nrc.gov/ free call at (866) 672–7640. The NRC this is a proceeding on an application site-help/e-submittals.html. Participants Meta System Help Desk is available for the renewal of Special Nuclear may attempt to use other software not between 8 a.m. and 8 p.m., Eastern Material License No. SNM–2504 issued listed on the Web site, but should note Time, Monday through Friday, to DOE for its ISFSI located at the Fort that the NRC’s E-Filing system does not excluding government holidays. St. Vrain site in Platteville, Colorado. support unlisted software, and the NRC Participants who believe that they Any person whose interest may be Meta System Help Desk will not be able have a good cause for not submitting affected by this proceeding, and who to offer assistance in using unlisted documents electronically must file an desires to participate as a party, must software. exemption request, in accordance with file a request for a hearing and a If a participant is electronically 10 CFR 2.302(g), with their initial paper specification of the contentions which submitting a document to the NRC in filing requesting authorization to the person seeks to have litigated in the accordance with the E-Filing rule, the continue to submit documents in paper hearing, in accordance with the NRC E– participant must file the document format. Such filings must be submitted Filing rule, which the NRC promulgated using the NRC’s online, Web-based by: (1) First class mail addressed to the on August 28, 2007 (72 FR 49139). submission form. In order to serve Office of the Secretary of the All documents filed in NRC documents through EIE, users will be Commission, U.S. Nuclear Regulatory adjudicatory proceedings, including a required to install a Web browser plug- Commission, Washington, DC 20555– request for hearing, a petition for leave in from the NRC Web site. Further 0001, Attention: Rulemaking and to intervene, any motion or other information on the Web-based Adjudications Staff; or (2) courier, document filed in the proceeding prior submission form, including the express mail, or expedited delivery to the submission of a request for installation of the Web browser plug-in, service to the Office of the Secretary, hearing or petition to intervene, and is available on the NRC’s public Web Sixteenth Floor, One White Flint North, documents filed by interested site at http://www.nrc.gov/site-help/e- 11555 Rockville Pike, Rockville, governmental entities participating submittals.html. Maryland, 20852, Attention: under 10 CFR 2.315(c), must be filed in Once a participant has obtained a Rulemaking and Adjudications Staff. accordance with the NRC E–Filing rule digital ID certificate and a docket has Participants filing a document in this (72 FR 49139, August 28, 2007). The E– been created, the participant can then manner are responsible for serving the Filing process requires participants to submit a request for hearing or petition document on all other participants. submit and serve all adjudicatory for leave to intervene. Submissions Filing is considered complete by first- documents over the internet, or in some should be in Portable Document Format class mail as of the time of deposit in cases to mail copies on electronic (PDF) in accordance with NRC guidance the mail, or by courier, express mail, or storage media. Participants may not available on the NRC public Web site at expedited delivery service upon submit paper copies of their filings http://www.nrc.gov/site-help/e- depositing the document with the unless they seek an exemption in submittals.html. A filing is considered provider of the service. A presiding accordance with the procedures complete at the time the documents are officer, having granted an exemption described below. submitted through the NRC’s E-Filing request from using E-Filing, may require To comply with the procedural system. To be timely, an electronic a participant or party to use E-Filing if requirements of E–Filing, at least ten filing must be submitted to the E-Filing the presiding officer subsequently (10) days prior to the filing deadline, the system no later than 11:59 p.m. Eastern determines that the reason for granting participant should contact the Office of Time on the due date. Upon receipt of the exemption from use of E-Filing no the Secretary by e-mail at a transmission, the E-Filing system longer exists. [email protected], or by telephone time-stamps the document and sends Documents submitted in adjudicatory at (301) 415–1677, to request (1) a the submitter an e-mail notice proceedings will appear in NRC’s digital ID certificate, which allows the confirming receipt of the document. The electronic hearing docket which is participant (or its counsel or E-Filing system also distributes an e- available to the public at http:// representative) to digitally sign mail notice that provides access to the ehd.nrc.gov/EHD_Proceeding/home.asp, documents and access the E–Submittal document to the NRC Office of the unless excluded pursuant to an order of server for any proceeding in which it is General Counsel and any others who the Commission, or the presiding participating; and (2) advise the have advised the Office of the Secretary officer. Participants are requested not to Secretary that the participant will be that they wish to participate in the include personal privacy information, submitting a request or petition for proceeding, so that the filer need not such as social security numbers, home hearing (even in instances in which the serve the documents on those addresses, or home phone numbers in participant, or its counsel or participants separately. Therefore, their filings, unless an NRC regulation representative, already holds an NRC- applicants and other participants (or or other law requires submission of such

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information. With respect to environmental report and safety report) contention belongs with a separate copyrighted works, except for limited that the requestor or petitioner disputes designation for that category. excerpts that serve the purpose of the and the supporting reasons for each Requestors or petitioners should, adjudicatory filings and would dispute or, if the requestor or petitioner when possible, consult with each other constitute a Fair Use application, believes the application fails to contain in preparing contentions and combine participants are requested not to include information on a relevant matter as similar subject matter concerns into a copyrighted materials in their required by law, the identification of joint contention, for which one of the submission. each failure and the supporting reasons Petitions for leave to intervene must for the requestor’s or petitioner’s belief. co-sponsoring requestors or petitioners be filed no later than 60 days from May In addition, in accordance with 10 is designated the lead representative. 28, 2010. Non-timely filings will not be CFR 2.309(f)(2), contentions must be Further, in accordance with 10 CFR entertained absent a determination by based on documents or other 2.309(f)(3), any requestor or petitioner the presiding officer that the petition or information available at the time the that wishes to adopt a contention request should be granted or the request or petition is to be filed, such as proposed by another requestor or contentions should be admitted, based the application, supporting safety petitioner must do so, in accordance on a balancing of the factors specified in analysis report, environmental report or with the E-Filing rule, within ten days 10 CFR 2.309(c)(1)(i)–(viii). other supporting document filed by the of the date the contention is filed, and In addition to meeting other applicant, or otherwise available to the designate a representative who shall applicable requirements of 10 CFR requestor or petitioner. On issues arising have the authority to act for the 2.309, the general requirements under the National Environmental requestor or petitioner. involving a request for a hearing filed by Policy Act, the requestor or petitioner In accordance with 10 CFR 2.309(g), a person other than an applicant must shall file contentions based on the a request for hearing or a petition for state: applicant’s environmental report. The leave to intervene may also address the 1. The name, address, and telephone requestor or petitioner may amend those number of the requestor; selection of hearing procedures, taking contentions or file new contentions if into account the provisions of 10 CFR 2. The nature of the requestor’s right there are data or conclusions in the NRC 2.310. under the Act to be made a party to the draft or final environmental impact proceeding; statement or if appropriate, the III. Further Information 3. The nature and extent of the environmental assessment and requestor’s property, financial or other associated draft or final finding of no Documents related to this action, interest in the proceeding; significant impact, or any supplements including the application for 4. The possible effect of any decision relating thereto, that differ significantly amendment and supporting or order that may be issued in the from the data or conclusions in the documentation, are available proceeding on the requestor’s interest; applicant’s documents. Otherwise, electronically at the NRC’s Electronic and contentions may be amended or new Reading Room at http://www.nrc.gov/ 5. The circumstances establishing that contentions filed after the initial filing reading-rm/adams.html. From this site, the request for a hearing is timely in only with leave of the presiding officer. you can access the NRC’s Agencywide accordance with 10 CFR 2.309(b). Each contention shall be given a In accordance with 10 CFR 2.309(f)(1), Document Access and Management separate numeric or alpha designation a request for hearing or petitions for System (ADAMS), which provides text within one of the following groups: leave to intervene must set forth with and image files of NRC’s public particularity the contentions sought to 1. Technical—primarily concerns documents. The ADAMS accession be raised. For each contention, the issues relating to matters discussed or numbers for the documents related to request or petition must: referenced in the Safety Evaluation this notice are: License Renewal 1. Provide a specific statement of the Report for the proposed action. Application dated November 10, 2009 issue of law or fact to be raised or 2. Environmental—primarily concerns (ML093230788) and the controverted; issues relating to matters discussed or acknowledgement review electronic 2. Provide a brief explanation of the referenced in the Environmental Report mail dated December 22, 2008 basis for the contention; for the proposed action. (ML093561315). If you do not have 3. Demonstrate that the issue raised in 3. Emergency Planning—primarily access to ADAMS or if there are concerns issues relating to matters the contention is within the scope of the problems in accessing the documents discussed or referenced in the proceeding; located in ADAMS, contact the NRC 4. Demonstrate that the issue raised in Emergency Plan as it relates to the proposed action. Public Document Room (PDR) Reference the contention is material to the staff at 1–800–397–4209, 301–415–4737 findings that the NRC must make to 4. Physical Security—primarily or by e-mail to [email protected]. support the action that is involved in concerns issues relating to matters the proceeding; discussed or referenced in the Physical These documents may also be viewed 5. Provide a concise statement of the Security Plan as it relates to the electronically on the public computers alleged facts or expert opinions which proposed action. located at the NRC’s PDR, O–1 F21, One support the requestor’s or petitioner’s 5. Miscellaneous—does not fall into White Flint North, 11555 Rockville position on the issue and on which the one of the categories outlined above. If Pike, Rockville, MD 20852. The PDR requestor or petitioner intends to rely to the requestor or petitioner believes a reproduction contractor will copy support its position on the issue; and contention raises issues that cannot be documents for a fee. 6. Provide sufficient information to classified as primarily falling into one of Dated at Rockville, Maryland, this 13th day show that a genuine dispute exists with these categories, the requestor or of May, 2010. the applicant on a material issue of law petitioner must set forth the contention or fact. This information must include and supporting bases, in full, separately references to specific portions of the for each category into which the application (including the applicant’s requestor or petitioner asserts the

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For the Nuclear Regulatory Commission. that are open to the public. Detailed The Subcommittee will gather Chris Staab, procedures for the conduct of and information, analyze relevant issues and Project Manager, Licensing Branch, Division participation in ACRS meetings were facts, and formulate proposed positions of Spent Fuel Storage and Transportation, published in the Federal Register on and actions, as appropriate, for Office of Nuclear Material Safety and October 14, 2009, (74 FR 58268–58269). deliberation by the Full Committee. Safeguards. Detailed meeting agendas and meeting Members of the public desiring to [FR Doc. 2010–12764 Filed 5–27–10; 8:45 am] transcripts are available on the NRC provide oral statements and/or written BILLING CODE 7590–01–P Web site at http://www.nrc.gov/reading- rm/doc-collections/acrs. Information comments should notify the Designated regarding topics to be discussed, Federal Official (DFO), Mrs. Christina NUCLEAR REGULATORY changes to the agenda, whether the Antonescu (Telephone 301–415–6792 or COMMISSION meeting has been canceled or E-mail [email protected]) rescheduled, and the time allotted to five days prior to the meeting, if Advisory Committee on Reactor present oral statements can be obtained possible, so that appropriate Safeguards (ACRS); Meeting of the from the website cited above or by arrangements can be made. Thirty-five ACRS Subcommittee on ESBWR contacting the identified DFO. hard copies of each presentation or The ACRS Subcommittee on Moreover, in view of the possibility that handout should be provided to the DFO Economic Simplified Boiling Water the schedule for ACRS meetings may be thirty minutes before the meeting. In Reactor (ESBWR) will hold a meeting on adjusted by the Chairman as necessary addition, one electronic copy of each June 22, 2010, Room T–2B1, 11545 to facilitate the conduct of the meeting, presentation should be emailed to the Rockville Pike, Rockville, Maryland. persons planning to attend should check DFO one day before the meeting. If an The entire meeting will be open to with these references if such electronic copy cannot be provided public attendance, with the exception of rescheduling would result in a major within this timeframe, presenters a portion that may be closed to protect inconvenience. should provide the DFO with a CD information that is proprietary to Dated: May 21, 2010. containing each presentation at least General Electric—Hitachi Nuclear Cayetano Santos, thirty minutes before the meeting. Americas, LLC (GEH) and its contractors Electronic recordings will be permitted pursuant to 5 U.S.C. 552b(c)(4). Chief, Reactor Safety Branch A, Advisory The agenda for the subject meeting Committee on Reactor Safeguards. only during those portions of the shall be as follows: [FR Doc. 2010–12900 Filed 5–27–10; 8:45 am] meeting that are open to the public. BILLING CODE 7590–01–P Detailed procedures for the conduct of Tuesday, June 22, 2010—8:30 a.m. until and participation in ACRS meetings 6 p.m. were published in the Federal Register The Subcommittee will discuss NUCLEAR REGULATORY on October 14, 2009, (74 FR 58268– Chapters 5, 8, 11, 13, 17, 19, and 22 of COMMISSION 58269). the Final Safety Evaluation Report Advisory Committee On Reactor Detailed meeting agendas and meeting (FSER) associated with the ESBWR Safeguards (ACRS); Meeting of the transcripts are available on the NRC design certification. The Subcommittee ACRS Subcommittee On Digital I&C Web site at http://www.nrc.gov/reading- will hear presentations by and hold Systems discussions with representatives of the rm/doc-collections/acrs. Information regarding topics to be discussed, NRC staff, General Electric, and other The ACRS Subcommittee on Digital changes to the agenda, whether the interested persons regarding this matter. Instrumentation and Control (DI&C) The Subcommittee will gather Systems will hold a meeting on June 23, meeting has been canceled or information, analyze relevant issues and 2010, Room T–2B1, 11545 Rockville rescheduled, and the time allotted to facts, and formulate proposed positions Pike, Rockville, Maryland. present oral statements can be obtained and actions, as appropriate, for The entire meeting will be open to from the website cited above or by deliberation by the Full Committee. public attendance. contacting the identified DFO. Members of the public desiring to The agenda for the subject meeting Moreover, in view of the possibility that provide oral statements and/or written shall be as follows: the schedule for ACRS meetings may be comments should notify the Designated adjusted by the Chairman as necessary Federal Official (DFO), Christopher Wednesday, June 23, 2010—8:30 a.m. until 12:30 p.m. to facilitate the conduct of the meeting, Brown (Telephone 301–415–7111 or E- persons planning to attend should check mail [email protected]) five The Subcommittee will review the with these references if such days prior to the meeting, if possible, so current NRC efforts in the area of Digital rescheduling would result in a major that appropriate arrangements can be Instrumentation and Control (DI&C) inconvenience. made. Thirty-five hard copies of each Probabilistic Risk Assessment (PRA). presentation or handout should be Topics will include the results from the Dated: May 20, 2010. provided to the DFO thirty minutes Brookhaven National Laboratory’s (BNL) Antonio Dias, before the meeting. In addition, one evaluation of quantitative software Chief, Reactor Safety Branch B, Advisory electronic copy of each presentation reliability methods (QSRMs), NUREG/ Committee on Reactor Safeguards. should be emailed to the DFO one day CR—6997, ‘‘Modeling a Digital [FR Doc. 2010–12904 Filed 5–27–10; 8:45 am] before the meeting. If an electronic copy Feedwater Control System Using BILLING CODE 7590–01–P cannot be provided within this Traditional Probabilistic Risk timeframe, presenters should provide Assessment Methods,’’ and the outcome the DFO with a CD containing each from the PRA software workshop held presentation at least thirty minutes in May 2008. The Subcommittee will before the meeting. Electronic hear presentations by and hold recordings will be permitted only discussions with NRC staff and other during those portions of the meeting interested persons regarding this matter.

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NUCLEAR REGULATORY Rockville Pike (first floor), Rockville, (‘‘SEC’’ or ‘‘Commission’’) the proposed COMMISSION Maryland. rule change as described in Items I, II, [Docket No. 50–271; NRC–2010–0191] Dated at Rockville, Maryland this 20th day and III, below, which Items have been of May 2010. prepared by the Exchange. The Entergy Nuclear Operations, Inc.; For the Nuclear Regulatory Commission. Commission is publishing this notice to Entergy Nuclear Vermont Yankee, LLC; Eric J. Leeds, solicit comments on the proposed rule Vermont Yankee Nuclear Power Director, Office of Nuclear Reactor change from interested persons. Station; License No. DPR–28; Receipt Regulation. I. Self-Regulatory Organization’s of Request for Action Under 10 CFR [FR Doc. 2010–12884 Filed 5–27–10; 8:45 am] 2.206 Statement of the Terms of Substance of BILLING CODE 7590–01–P the Proposed Rule Change Notice is hereby given that by petition dated April 19, 2010, Congressman Paul The Exchange is filing with the W. Hodes (the Petitioner) has requested SECURITIES AND EXCHANGE Commission a proposal to modify that pursuant to Title 10 of the Code of COMMISSION Commentary .05 to Phlx Rule 1012 Federal Regulations (10 CFR) 2.206, (Series of Options Open for Trading) to ‘‘Requests for Action under this Sunshine Act Meeting expand the Exchange’s $1 Strike Price Subpart,’’ the U.S. Nuclear Regulatory Notice is hereby given, pursuant to Program (the ‘‘$1 Strike Program’’ or Commission (NRC) take action with the provisions of the Government in the ‘‘Program’’) 3 to allow the Exchange to regard to the Vermont Yankee Nuclear Sunshine Act, Public Law 94–409, that select 150 individual stocks on which Power Station (Vermont Yankee). The the Securities and Exchange options may be listed at $1 strike price Petitioner requested that the NRC not Commission will hold a market intervals. allow Vermont Yankee, operated by structure roundtable on Wednesday, Entergy Nuclear Operations, Inc. The text of the proposed rule change June 2, 2010 at 9:30 a.m., in the is available on the Exchange’s Web site (Entergy or the licensee), to restart after Auditorium at SEC headquarters at 100 its scheduled refueling outage until all at http:// F Street, NE. in Washington, DC. The nasdaqomxphlx.cchwallstreet.com/ environmental remediation work and roundtable will be open to the public relevant reports on leaking tritium at the NASDAQOMXPHLX/Filings/, at the with seating on a first-come, first-served principal office of the Exchange, and at plant have been completed. Specifically, basis. Visitors will be subject to security the Petitioner requested that Vermont the Commission’s Public Reference checks. Yankee be prevented from resuming The roundtable discussion will focus Room. power production until the following on key market structure issues, work has been completed to the II. Self-Regulatory Organization’s including high-frequency trading, Commission’s satisfaction: (1) The Statement of the Purpose of, and undisplayed liquidity, and the tritiated groundwater remediation Statutory Basis for, the Proposed Rule appropriate metrics for evaluating process; (2) the soil remediation process Change market structure performance. scheduled to take place during the For further information, please In its filing with the Commission, the refueling outage, to remove soil contact the Office of the Secretary at Exchange included statements containing not only tritium, but also (202) 551–5400. radioactive isotopes of cesium, concerning the purpose of and basis for manganese, zinc, and cobalt; (3) Dated: May 26, 2010. the proposed rule change and discussed Entergy’s ongoing Root Cause Analysis; Elizabeth M. Murphy, any comments it received on the and (4) the Commission’s review of the Secretary. proposed rule change. The text of these documents presented by Entergy in [FR Doc. 2010–13006 Filed 5–26–10; 11:15 am] statements may be examined at the places specified in Item IV below. The response to the Commission’s demand BILLING CODE 8010–01–P for information, which was issued on Exchange has prepared summaries, set March 1, 2010. forth in sections A, B, and C below, of The NRC is treating the request under SECURITIES AND EXCHANGE the most significant aspects of such 10 CFR 2.206 of the Commission’s COMMISSION statements. regulations. The request has been referred to the Director of the Office of [Release No. 34–62151; File No. SR–Phlx– 2010–72] Nuclear Reactor Regulation (NRR). By 3 The $1 Strike Program was initially approved on letter dated May 20, 2010, the Director Self-Regulatory Organizations; Notice June 11, 2003 as pilot, and was then extended denied the Petitioner’s request to of Filing of Proposed Rule Change by several times until June 5, 2008. See Securities maintain Vermont Yankee shut down. Exchange Act Release Nos. 48013 (June 11, 2003), NASDAQ OMX PHLX, Inc. to Make 68 FR 35933 (June 17, 2003) (SR–Phlx–2002–55) As provided by 10 CFR 2.206, the NRC Changes to Expand the $1 Strike will take appropriate action on this (approval of pilot program); 49801 (June 3, 2004), Program 69 FR 32652 (June 10, 2004) (SR–Phlx–2004–38); petition within a reasonable time. 51768 (May 31, 2005), 70 FR 33250 (June 7, 2005) A copy of the petition is available to May 21, 2010. (SR–Phlx–2005–35); 53938 (June 5, 2006), 71 FR the public from the NRC’s Agencywide Pursuant to Section 19(b)(1) of the 34178 (June 13, 2006) (SR–Phlx–2006–36); and Documents Access and Management Securities Exchange Act of 1934 55666 (April 25, 2007), 72 FR 23879 (May 1, 2007) System (ADAMS) in the public (‘‘Act’’) 1, and Rule 19b–4 2 thereunder, (SR–Phlx–2007–29). The program was subsequently Electronic Reading Room on the NRC notice is hereby given that on May 7, expanded and made permanent in 2008. See Web site at http://www.nrc.gov/reading- 2010, NASDAQ OMX PHLX, Inc. Securities Exchange Act Release No. 57111 (January rm/adams.html under ADAMS 8, 2008), 73 FR 2297 (January 14, 2008) (SR–Phlx– (‘‘Phlx’’ or ‘‘Exchange’’) filed with the 2008–01). The program was last expanded in 2009. Accession No. ML101120663, and is Securities and Exchange Commission See Securities Exchange Act Release No. 59590 available for inspection at the (March 17, 2009), 74 FR 12412 (March 24, 2009) Commission’s Public Document Room, 1 15 U.S.C. 78s(b)(1). (SR–Phlx–2009–21). The $1 Strike Program is found located at One White Flint North, 11555 2 17 CFR 240.19b–4. in Commentary .05 to Rule 1012.

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A. Self-Regulatory Organization’s The $1 Strike Program has been that are outside the $1 Strike Program. Statement of the Purpose of, and extremely successful since it was These include high volume options Statutory Basis for, the Proposed Rule initiated as a pilot program in 2003, such as, for example, Winstream Corp, Change with no substantive problems attributed The Mosaic Company, and General to the Program or listing and trading Growth PPTYS Inc. that traded 26,013 1. Purpose options at $1 strike intervals. During the contracts, 9,826 contracts, and 20,107 The purpose of this proposed rule time that the $1 Strike Program was a contracts (23-day average volume), change is to modify Commentary .05 to pilot, the Exchange submitted three respectively. Because of the numerical Phlx Rule 1012 to allow the Exchange pilot reports to the Commission in limitation on how many issues may be to select 150 individual stocks on which which the Exchange discussed, among chosen by the Exchange to be in the $1 options may be listed at $1 strike price other things, the strength and efficacy of Strike Program, however, these low cost intervals. the Program based upon the steady options must trade at $2.50 or wider Currently, the $1 Strike Program increase in volume and open interest of strike price increments. allows Phlx to select a total of 55 options traded on the Exchange at $1 The wide strike price increments for individual stocks on which option strike price intervals; and that the low cost options, when compared to the series may be listed at $1 strike price Program had not and, in the future, price of underlying issues, often lead to intervals. In order to be eligible for should not create capacity problems for significant negative impact on investors. selection into the Program, the the Phlx or the Options Price Reporting As an example: • underlying stock must close below $50 Authority (‘‘OPRA’’) systems.7 This has Sanofi Aventis (SNY), which has in its primary market on the previous not changed. Moreover, the number of recently traded at a low of about $33 per trading day. If selected for the Program, $1 strike options traded on the share, is not currently in the $1 Strike the Exchange may list strike prices at $1 Exchange has continued to increase Program. This means that options on intervals from $3 to $50, but no $1 strike since the inception of the Program such Sanofi Aventis are offered at strike price price may be listed that is greater than that these options are now among some intervals of $2.50. If an investor desired $5 from the underlying stock’s closing of the most popular products traded on to protect 100 shares of Sanofi Aventis price in its primary market on the the Exchange. in the event of a 10% drop in the SNY previous day. The Exchange may also There are now approximately 326 $1 share price for an intermediate time list $1 strikes on any other option class strike price option classes listed (and period, the investor ideally would want designated by another securities traded) across all options exchanges the ability to choose between buying a exchange that employs a similar including Phlx; 55 of which are classes September 30 SNY put option, Program under their respective rules. chosen by Phlx for the $1 Strike September 29 put option, or September The restrictions in the current $1 28 put option. Today, however, at $2.50 Program. The Exchange has received Strike Program remain and are not strike price intervals the investor would repeated requests from its members to proposed to be modified by this filing. only have the choice of buying list more issues at $1 strike intervals, The Exchange may not list $1 strike September 30 put options offered at that is, to expand the $1 Strike Program. intervals on any issue where the strike $1.65 or September 25 puts offered at However, the Exchange is constrained price is greater than $50. The Exchange $0.45 (approximate numbers). Having from doing so because it has reached the may not list long-term option series the ability (choice) to buy 28 strike or limit of 55 individual stocks on which (‘‘LEAPS’’) 4 at $1 strike price intervals 29 strike puts could significantly lower option series may be listed at $1 strike for any class selected for the Program, the investor’s monetary outlay to price intervals per Commentary .05 to except as specified in subparagraph (C) purchase the desired insurance Rule 1012. It is for this reason that the of Commentary .05.5 The Exchange is premium. This is because, as opposed to Exchange proposes to expand the also restricted from listing series with September 30 puts priced at $1.65, Program to allow Phlx to select a total $1 intervals within $0.50 of an existing September 29 puts would be priced at of 150 individual stocks on which strike price in the same series, except approximately $1.10 and September 28 option series may be listed at $1 strike that strike prices of $2, $3, and $4 shall puts would be priced at approximately price intervals. The proposal would be permitted within $0.50 of an existing $0.90, which would potentially reduce expand $1 strike offerings to market strike price for classes also selected to the hedging cost to the investor by about participants (e.g. traders and retail participate in the $0.50 Strike Program.6 a third. Clearly, options on Sanofi investors) and thereby enhance their Aventis priced at $1 intervals could ability to tailor investing and hedging 4 LEAPS are long-term options that generally have significantly improve the menu of up to thirty-nine months from the time they are strategies and opportunities in a volatile hedging choices to the benefit of an listed until expiration. Commentary .03 to Rule market place. The $1 Strike Program investor in this issue. 1012. Long-term FLEX options and index options (including the existing restrictions such • are considered separately in Rules 1079(a)(6) and Tenaris S A (TS), which has 1101A(b)(iii), respectively. as not listing any series that would recently traded at about $38 per share, 5 Subsection (C) of Commentary .05 states that: result in strike prices being $0.50 apart) is not currently in the $1 Strike The Exchange may list $1 strike prices up to $5 in would otherwise remain unchanged. Program. As such, strike intervals for TS LEAPS(R) in up to 200 option classes on individual Currently, there are more than 2,000 are mostly in $5 (as well as $2.50) stocks. See Securities Exchange Act Release No. options trading on issues priced below 61277 (January 4, 2010), 75 FR 1442 (January 11, increments. If an investor sought to 2009) (SR–Phlx–2009–108)(notice of filing and $50 (generally, the ‘‘low cost options’’) enhance his yield from owning 100 immediate effectiveness). shares of Tenaris S A, the investor could 6 Regarding the $0.50 Strike Program, which concurrent listing of $3.50 and $4 strikes for classes sell a call option with a strike price allows $0.50 strike price intervals for options on that participate in both the $0.50 Strike Program stocks trading at or below $3.00, see Commentary and the $1 Strike Program). approximately 10% higher than the .05(a)(ii) to Rule 1012 and Securities Exchange Act 7 See Securities Exchange Act Release Nos. 49801 current underlying issue price. Ideally, Release No. 60694 (September 18, 2009), 74 FR (June 3, 2004), 69 FR 32652 (June 10, 2004) (SR– the investor could choose between the 49048 (September 25, 2009) (SR–Phlx–2009– Phlx–2004–38); 51768 (May 31, 2005), 70 FR 33250 September 45 calls, the September 44 65)(order approving). See also Securities Exchange (June 7, 2005) (SR–Phlx–2005–35); 53938 (June 5, Act Release No. 61630 (March 2, 2010), 75 FR 2006), 71 FR 34178 (June 13, 2006) (SR–Phlx–2006– calls, or the September 43 calls. Not 11211 (March 10, 2010) (SR–Phlx–2010–26) (notice 36); and 55666 (April 25, 2007), 72 FR 23879 (May being in the $1 Strike Program, of filing and immediate effectiveness allowing 1, 2007) (SR–Phlx–2007–29). however, the September 44 and

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September 43 call strikes would not be negatively impacted the system capacity III. Date of Effectiveness of the available. And, like the Sanofi Aventis of the Exchange or OPRA. Proposed Rule Change and Timing for example, the lack of the September 44 With regard to the impact of this Commission Action and September 43 strikes would limit proposal on system capacity, Phlx has Within 35 days of the date of the investor’s choices to maximize analyzed its capacity and represents that publication of this notice in the Federal returns or execute the simplest of it and OPRA have the necessary systems Register or within such longer period (i) strategies. capacity to handle the potential as the Commission may designate up to By expanding the $1 Strike Program, 90 days of such date if it finds such such investors would be able to better additional traffic associated with the listing and trading of an expanded longer period to be appropriate and enhance returns and manage risk. The publishes its reasons for so finding or Exchange feels that, having received number of series in the $1 Strike Program. (ii) as to which the Exchange consents, requests to expand the Program and in the Commission will: (a) By order light of the disparity between non $1 The Exchange believes that the $1 approve such proposed rule change, or strike prices and stock prices underlying Strike Program has provided investors (b) institute proceedings to determine low-cost options, expanding the with greater trading opportunities and whether the proposed rule change Program as requested would be greatly flexibility and the ability to more should be disapproved. beneficial to investors and the financial closely tailor their investment and risk IV. Solicitation of Comments community. management strategies and decisions to As stated in the Commission order the movement of the underlying Interested persons are invited to that initially approved Phlx’s Program submit written data, views, and and in subsequent Program extension security. Furthermore, the Exchange has not detected any material proliferation arguments concerning the foregoing, and expansion approval orders and including whether the proposed rule 8 of illiquid options series resulting from filings (the ‘‘prior orders’’), the change is consistent with the Act. the narrower strike price intervals. For Exchange believes that $1 strike price Comments may be submitted by any of these reasons, the Exchange requests an intervals provide investors with the following methods: significantly greater flexibility in the expansion of the current Program and trading of equity options that overlie the opportunity to provide investors Electronic Comments lower price stocks by allowing investors with additional strikes for investment, • Use the Commission’s Internet to establish equity options positions that trading, and risk management purposes. comment form (http://www.sec.gov/ are better tailored to meet their rules/sro.shtml); or investment, trading and risk 2. Statutory Basis • Send an e-mail to rule- management objectives. These prior The Exchange believes that its [email protected]. Please include File orders recognized, as we have noted proposal is consistent with Section 6(b) Number SR–Phlx–2010–72 on the pursuant to this proposal, that member of the Act 11 in general, and furthers the subject line. firms representing customers have objectives of Section 6(b)(5) of the Act 12 Paper Comments repeatedly requested that Phlx seek to in particular, in that it is designed to expand the Program in terms of the • Send paper comments in triplicate number of classes on which option promote just and equitable principles of to Elizabeth M. Murphy, Secretary, series may be listed at $1 strike price trade, to remove impediments to and Securities and Exchange Commission, intervals. In addition, market conditions perfect the mechanism of a free and 100 F Street, NE., Washington, DC have led to an increase in the number open market and a national market 20549–1090. of securities trading below $50, further system, and, in general to protect All submissions should refer to File warranting the proposed comparatively investors and the public interest. The Number SR–Phlx–2010–72. This file modest expansion of the $1 Strike Exchange believes that expanding the number should be included on the Program.9 current $ 1 Strike Program will result in subject line if e-mail is used. To help the The Exchange notes that, in addition a continuing benefit to investors by Commission process and review your to options classes that are trading giving them more flexibility to closely comments more efficiently, please use pursuant to the $1 strike programs of tailor their investment decisions in only one method. The Commission will options exchanges, there are also greater number of securities. post all comments on the Commission’s options trading at $1 strike intervals on Internet Web site (http://www.sec.gov/ approximately 282 Exchange Traded B. Self-Regulatory Organization’s rules/sro.shtml). Copies of the Fund Shares (‘‘ETFs’’),10 ETF options Statement on Burden on Competition submission, all subsequent trading at $1 intervals has not, however, amendments, all written statements The Exchange does not believe that with respect to the proposed rule the proposed rule change will impose 8 See supra note 3. change that are filed with the 9 See, c.f., Securities Exchange Act Release No. any burden on competition not Commission, and all written 59590 (March 17, 2009), 74 FR 12412 (March 24, necessary or appropriate in furtherance communications relating to the 2009) (SR–Phlx–2009–21) (more than five-fold of the purposes of the Act. proposed rule change between the increase in the number of individual stocks on which options may be listed at $1 intervals). C. Self-Regulatory Organization’s Commission and any person, other than 10 those that may be withheld from the Options on ETFs have been trading for about Statement on Comments on the a decade. See Securities Exchange Act Release Nos. public in accordance with the Proposed Rule Change Received From 34– (July 1, 1998), 63 FR 37426 (July 10, 1998) (SR– provisions of 5 U.S.C. 552, will be AMEX–96–44) (approval order regarding, among Members, Participants, or Others other things, $1 strike price intervals for ETFs); and available for Web site viewing and 44055 (March 8, 2001), 66 FR 15310 (March 16, No written comments were either printing in the Commission’s Public 2001) (SR–Phlx–01–32) (notice of filing and solicited or received. Reference Room, 100 F Street, NE., immediate effectiveness regarding, among other Washington, DC 20549, on official things, $1 strike price intervals for ETFs). See also Commentary .05 to Rule 1012(a)(iv) allowing $1 business days between the hours of 10 strike price intervals for ETF options where the 11 15 U.S.C. 78f(b). a.m. and 3 p.m. Copies of the filing also strike price is $200 or less. 12 15 U.S.C. 78f(b)(5). will be available for inspection and

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copying at the principal office of the II. Self-Regulatory Organization’s on the Exchange. This existing RMP Exchange. All comments received will Statement of the Purpose of, and interface will be retired in September be posted without change; the Statutory Basis for, the Proposed Rule 2010. Commission does not edit personal Change In connection with these identifying information from In its filing with the Commission, the enhancements, the Exchange proposes submissions. You should submit only Exchange included statements to rename the RMP interface as the information that you wish to make concerning the purpose of and basis for Clearing Trade Interface (‘‘CTI’’). This available publicly. All submissions the proposed rule change and discussed proposed interface will provide should refer to File Number SR–Phlx– any comments it received on the increased throughput and significantly 2010–72 and should be submitted on or proposed rule change. The text of these lower latency for clearing trade 6 before June 18, 2010. statements may be examined at the updates. In addition, the new interface For the Commission, by the Division of places specified in Item IV below. The will contain an indicator which will 7 Trading and Markets, pursuant to delegated Exchange has prepared summaries, set distinguish electronic and non- 8 9 authority.13 forth in Sections A, B, and C below, of electronically delivered orders. This Florence E. Harmon, the most significant aspects of such information will be available to Deputy Secretary. statements. members on a real-time basis. [FR Doc. 2010–12871 Filed 5–27–10; 8:45 am] The Exchange is proposing to A. Self-Regulatory Organization’s continue to provide real-time clearing BILLING CODE 8010–01–P Statement of the Purpose of, and trade updates, referred to as CTI, with Statutory Basis for, the Proposed Rule significantly lower latency as well as SECURITIES AND EXCHANGE Change additional information, such as trade COMMISSION 1. Purpose detail information that distinguishes electronically and non-electronically The purpose of the proposed rule delivered orders. This new CTI will be [Release No. 34–62155; File No. SR–Phlx– change is to propose a series of made available to users promptly after 2010–67] enhancements to the interface for successful testing with the Exchange. receiving real-time clearing trade 10 Self-Regulatory Organizations; CTI will be available to all members. updates. A real-time clearing trade NASDAQ OMX PHLX, Inc.; Notice of The Exchange is not proposing any rule update is a message that is sent to a Filing and Immediate Effectiveness of changes. member after an execution has occurred a Proposed Rule Change Relating to and contains trade details. The message 2. Statutory Basis the Risk Management Interface containing the trade details is also The Exchange believes that its May 24, 2010. simultaneously sent to the The Options proposal is consistent with Section 6(b) Pursuant to Section 19(b)(1) of the Clearing Corporation. of the Act 11 in general, and furthers the The Exchange currently provides 12 Securities Exchange Act of 1934 objectives of Section 6(b)(5) of the Act Exchange members with real-time (‘‘Act’’) 1 and Rule 19b–4 thereunder,2 in particular, in that it is designed to clearing trade updates through a Risk notice is hereby given that on May 17, promote just and equitable principles of Management Feed known as the 2010, NASDAQ OMX PHLX, Inc. trade, to remove impediments to and ‘‘RMP’’.3 The updates include the (‘‘Phlx’’ or ‘‘Exchange’’) filed with the perfect the mechanism of a free and members clearing trade messages on a Securities and Exchange Commission open market and a national market low latency, real-time basis. The trade (‘‘Commission’’) the proposed rule system, and, in general to protect messages are routed to a member’s change as described in Items I and II investors and the public interest, by connection containing certain below, which Items have been prepared providing members more efficient real- information.4 The administrative and by the Exchange. The Commission is time clearing trade updates. This market event messages include, but are publishing this notice to solicit proposal is not a burden on competition not limited to: System event messages to comments on the proposed rule change and serves to protect investors and the communicate operational-related from interested persons. public interest, in that CTI is a tool for events; options directory messages to members to receive real-time trade I. Self-Regulatory Organization’s relay basic option symbol and contract details and utilize that information to Statement of the Terms of Substance of information for options traded on the the Proposed Rule Change Exchange; complex strategy messages to 6 The Exchange will post the technical relay information for those strategies specifications on its Web site and testing will be The Exchange proposes to effect an traded on the Exchange;5 and trading available. The Exchange intends to send an Options information-related enhancement to the Technical Update to notify members of the new action messages to inform market current Risk Management Feed Interface interface and testing availability. participants when a specific option or 7 in Phlx XL II. The Exchange is not Electronically delivered orders do not include strategy is halted or released for trading orders delivered through the Floor Broker proposing any rule changes. Management System, but rather are delivered The text of the proposed rule change 3 The Exchange assesses its members a Real-time utilizing PHLX XL II. is available on the Exchange’s Web site Risk Management Fee of $.003 per contract for 8 An order that is represented on the trading floor at http://nasdaqtrader.com/ receiving this information. The Exchange is not by a floor broker. See Exchange Rule 1063. 9 micro.aspx?id=PHLXfilings, at the proposing to amend this fee. Members that apply for this interface will 4 The information includes, among other things, continue to receive only their own trade data and principal office of the Exchange, at the the following: (i) The Clearing Member Trade data for their customers. Members utilizing RMP Commission’s Public Reference Room, Agreement or ‘‘CMTA’’ or The Options Clearing only receive their own trade data and data for their and on the Commission’s Web site at Corporation or ‘‘OCC’’ number; (ii) Exchange badge customers. http://www.sec.gov. or house number; and (iii) the Exchange internal 10 The Exchange assesses a Real-Time Risk firm identifier. Management Fee of $.003 per contract to receive 5 The information related to complex order this information. Currently RMP is available to all 13 17 CFR 200.30–3(a)(12). strategy messages includes information that lists the members. 1 15 U.S.C. 78s(b)(1). legs and the leg ratios, which uniquely defines this 11 15 U.S.C. 78f(b). 2 17 CFR 240.19b–4. strategy for an underlying. 12 15 U.S.C. 78f(b)(5).

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capture fees on a real-time basis and provide members an increased period of Commission does not edit personal also receive information on whether the time to test and migrate to the CTI identifying information from orders were electronically or non- before the retirement of the RMP in submissions. You should submit only electronically delivered. This September 2010. information that you wish to make information will provide members more At any time within 60 days of the publicly available. All submissions transparency on the fees assessed on filing of such proposed rule change, the should refer to File Number SR–Phlx– transactions. The clearing trade updates Commission may summarily abrogate 2010–67 and should be submitted on or are and will continue to be available to such rule change if it appears to the before June 18, 2010. all members. Commission that such action is For the Commission, by the Division of necessary or appropriate in the public B. Self-Regulatory Organization’s Trading and Markets, pursuant to delegated interest, for the protection of investors, 16 Statement on Burden on Competition authority. or otherwise in the furtherance of the Florence E. Harmon, The Exchange does not believe that purposes of the Act. Deputy Secretary. the proposed rule change will impose any burden on competition not IV. Solicitation of Comments [FR Doc. 2010–12873 Filed 5–27–10; 8:45 am] necessary or appropriate in furtherance Interested persons are invited to BILLING CODE 8010–01–P of the purposes of the Act. submit written data, views, and arguments concerning the foregoing, SECURITIES AND EXCHANGE C. Self-Regulatory Organization’s including whether the proposed rule COMMISSION Statement on Comments on the change is consistent with the Act. Proposed Rule Change Received From Comments may be submitted by any of [Release No. 34–62158; File No. SR–CBOE– Members, Participants or Others the following methods: 2008–88] No written comments were either solicited or received. Electronic Comments Self-Regulatory Organizations; • Use the Commission’s Internet Chicago Board Options Exchange, III. Date of Effectiveness of the comment form (http://www.sec.gov/ Incorporated; Notice of Filing of Proposed Rule Change and Timing for rules/sro.shtml); or Amendment No. 1 and Order Granting Commission Action • Send an e-mail to rule- Accelerated Approval of Proposed Because the foregoing proposed rule [email protected]. Please include File Rule Change as Modified by change does not: (1) Significantly affect Number SR–Phlx–2010–67 on the Amendment No. 1 Relating to the the protection of investors or the public subject line. Demutualization of Chicago Board interest; (2) impose any significant Options Exchange, Incorporated burden on competition; and (3) become Paper Comments operative for 30 days from the date on • Send paper comments in triplicate May 24, 2010. which it was filed, or such shorter time to Elizabeth M. Murphy, Secretary, I. Introduction as the Commission may designate if Securities and Exchange Commission, On August 21, 2008, pursuant to consistent with the protection of Station Place, 100 F Street, NE., Section 19(b)(1) of the Securities investors and the public interest, it has Washington, DC 20549–1090. Exchange Act of 1934 (‘‘Act’’),1 and Rule become effective pursuant to Section All submissions should refer to File 19b–4 thereunder,2 the Chicago Board 13 19(b)(3)(A) of the Act and Rule 19b– Number SR–Phlx–2010–67. This file Options Exchange, Incorporated 14 4(f)(6) thereunder. number should be included on the (‘‘CBOE’’ or ‘‘Exchange’’) filed with the Phlx has requested that the subject line if e-mail is used. To help the Securities and Exchange Commission Commission waive the 30-day operative Commission process and review your (‘‘Commission’’) a proposed rule change delay. The Commission hereby grants comments more efficiently, please use in connection with its plan to 15 that request. The Commission believes only one method. The Commission will demutualize and restructure from a that waiving the 30-day operative delay post all comments on the Commission’s Delaware non-stock corporation to a is consistent with the protection of Internet Web site (http://www.sec.gov/ Delaware stock corporation that would investors and the public interest. The rules/sro.shtml). Copies of the be a wholly-owned subsidiary of CBOE Commission notes that the Exchange submission, all subsequent Holdings, Inc. (‘‘CBOE Holdings’’), a proposes to allow members to test the amendments, all written statements holding company organized as a CTI immediately, and to migrate to the with respect to the proposed rule Delaware stock corporation (the CTI upon successful testing. The change that are filed with the ‘‘Restructuring Transaction’’).3 To Exchange proposes to retire the RMP in Commission, and all written accommodate the Restructuring September 2010. Waiving the operative communications relating to the Transaction, CBOE proposed a delay will thus allow the Exchange to proposed rule change between the Certificate of Incorporation and Bylaws Commission and any person, other than for the newly formed CBOE Holdings, a 13 15 U.S.C. 78s(b)(3)(A). those that may be withheld from the new Certificate of Incorporation for 14 17 CFR 240.19b–4(f)(6). When filing a proposed public in accordance with the rule change pursuant to Rule 19b–4(f)(6) under the CBOE, and to replace CBOE’s existing Act, an Exchange is required to give the provisions of 5 U.S.C. 552, will be Constitution with new Bylaws. Finally, Commission written notice of its intent to file the available for Web site viewing and CBOE proposed amendments to its rules proposed rule change, along with a brief description printing in the Commission’s Public to address, among other things, trading and text of the proposed rule change, at least five Reference Room, 100 F Street, NE., business days prior to the date of filing of the proposed rule change, or such shorter time as Washington, DC 20549, on official 16 17 CFR 200.30–3(a)(12). designated by the Commission. The Exchange has business days between the hours of 10 1 15 U.S.C. 78s(b)(1). met this requirement. a.m. and 3 p.m. Copies of such filing 2 17 CFR 240.19b–4. 15 For the purposes only of waiving the operative also will be available for inspection and 3 The term ‘‘Restructuring Transaction’’ is defined date of this proposal, the Commission has in proposed CBOE Rule 1.1(hhh) as ‘‘the considered the proposed rule’s impact on copying at the principal office of the restructuring of the Exchange from a non-stock efficiency, competition, and capital formation. See Exchange. All comments received will corporation to a stock corporation and wholly- 15 U.S.C. 78c(f). be posted without change; the owned subsidiary of CBOE Holdings, Inc.’’

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access to the Exchange after the CBOE would transfer to CBOE Holdings Class A common stock of CBOE Restructuring Transaction. The all of the shares or interests CBOE Holdings would represent an equity proposed rule change was published for currently owns in its subsidiaries, other ownership interest in CBOE Holdings, comment in the Federal Register on than CBOE Stock Exchange, LLC, but would not provide its holders with September 4, 2008.4 The Commission (‘‘CBSX’’), thereby making them wholly- physical or electronic access to CBOE received no comments on the proposal. owned subsidiaries of CBOE Holdings.9 and its trading facilities. In addition, On May 21, 2010, the Exchange filed CBSX, which is an equity trading Class B common stock of CBOE Amendment No. 1 to the proposal.5 This facility of CBOE, would remain a facility Holdings would be issued in the order provides notice of filing of of CBOE in which CBOE would Restructuring Transaction in connection Amendment No. 1 and grants continue to hold a 50% interest.10 CBOE with the settlement of the litigation accelerated approval to the proposed would continue to be a self-regulatory relating to the exercise right. rule change, as modified by Amendment organization (‘‘SRO’’) and to operate its B. CBOE Holdings No. 1. exchange business and facilities. CBOE has proposed a new Certificate After the Restructuring Transaction, II. Discussion and Commission of Incorporation and Bylaws that are CBOE Holdings would become the Findings similar to the CBOE’s current Certificate parent company and sole shareholder of After careful review of the proposal, of Incorporation and Constitution, CBOE. The proposed Certificate of the Commission finds that the proposed except that they reflect CBOE’s Incorporation and Bylaws of CBOE rule change, as amended, is consistent proposed new structure. CBOE also has Holdings would govern the activities of with the requirements of the Act and the proposed to adopt a Certificate of CBOE Holdings. rules and regulations thereunder Incorporation and Bylaws for CBOE (1) Governing Structure applicable to a national securities Holdings that would address, among CBOE Holdings Board of Directors. exchange.6 In particular, as discussed in other things, the operation of the The CBOE Holdings Board of Directors more detail below, the Commission Exchange as an SRO in a holding (‘‘CBOE Holdings Board’’) would be finds that the proposed rule change is company structure.11 Finally, CBOE has composed of between 11 and 23 consistent with Section 6(b) of the Act.7 proposed amendments to certain rules directors. Except with respect to the of the Exchange to reflect, among other A. The Restructuring Transaction initial CBOE Holdings Board, the exact things, the use of Trading Permits12 to number would be established by the (1) Overview of the Proposed Corporate access the Exchange and its facilities. CBOE Holdings Board.14 The initial Structure (2) Conversion of Memberships CBOE Holdings Board would be CBOE proposes to restructure from a After the Restructuring Transaction, composed of the 22 directors of CBOE Delaware non-stock corporation owned the owners of membership interests in immediately prior to the Restructuring by its members to a Delaware stock 15 CBOE would become stockholders of Transaction. corporation that would be a wholly- CBOE Holdings through the conversion Except with respect to the initial owned subsidiary of CBOE Holdings, a of their memberships into shares of CBOE Holdings Board, the Nominating holding company organized as a 16 common stock of CBOE Holdings. Each and Governance Committee would Delaware stock corporation. As a result transferable CBOE membership existing of the Restructuring Transaction, CBOE conversion at the time of a pubic offering would be on the date of the Restructuring Holdings would become the sole subject to a 180-day transfer restriction following Transaction would be converted into a stockholder of CBOE.8 In addition, the offering and Class A–2 common stock would be certain number of shares of Class A subject to a 360-day transfer restriction. Upon common stock of CBOE Holdings.13 The expiration of the restrictions, Class A–1 and Class 4 See Securities Exchange Act Release No. 58425 A–2 common stock would convert to unrestricted (August 26, 2008), 73 FR 51652 (‘‘Notice’’). common stock of CBOE Holdings. See id. Similarly, 5 The substance of the proposed rule change and Exchange Act Release No. 61152 (December 10, the Class B common stock of CBOE Holdings that its filing with the Commission were approved by 2009), 74 FR 66699 (December 16, 2009) (order will be issued in the Restructuring Transaction in the Board of Directors of the Exchange prior to approving application of C2 Options Exchange, connection with the settlement of the litigation filing. At that time, the Exchange had not yet Incorporated). relating to the exercise right would also be issued obtained approval from its members for the changes 9 These subsidiaries are: CBOE Futures Exchange, in a single class designated as Class B common set forth in the proposal. On May 21, 2010, the LLC, which operates an electronic futures exchange; stock. To ensure compliance with the transfer Exchange obtained the requisite approval from its Chicago Options Exchange Building Corporation, restrictions, Class A, Class A–1, Class A–2 and members. Amendment No. 1, among other things, which owns the building in which CBOE operates; Class B common stock may only be recorded on the reflects the membership’s approval of this proposed CBOE, LLC, which holds a 24.01% interest in books and records of CBOE Holdings in the name rule change. See infra notes and text following note OneChicago, LLC, a security futures exchange; of the owner of the shares. See id. CBOE Holdings 172 for a discussion of Amendment No. 1 in greater CBOE II, LLC, which has no assets or activities; would have the ability to issue preferred stock and detail. DerivaTech Corporation, which owns certain unrestricted common stock including in connection 6 In approving the proposed rule change, the educational software; Market Data Express, LLC, with a public offering of shares of stock to investors Commission has considered its impact on which distributes various types of market data; and who were not members of CBOE prior to the efficiency, competition, and capital formation. See The Options Exchange, Incorporated, which Restructuring Transaction and who would not be 15 U.S.C. 78c(f). currently has no assets or activities. Trading Permit holders following the Restructuring 7 15 U.S.C. 78f. 10 The remaining 50% interest in CBSX currently Transaction. According to the Exchange, CBOE 8 In Amendment No. 1, CBOE revised the is owned by five registered broker-dealers. Holdings has no current intention to issue any proposed CBOE Holdings’ Certificate of 11 See infra note 51 and accompanying text shares of its preferred stock. See id. Incorporation to include the term ‘‘Regulated (discussing CBOE’s role in considering amendments 14 See proposed Article Seventh(b) of the CBOE Securities Exchange Subsidiary’’ in the places that to CBOE Holdings’ corporate documents). Holdings Certificate of Incorporation and proposed had referenced CBOE. A ‘‘Regulated Securities 12 See infra note 118 and accompanying text Article 3.2 of the CBOE Holdings Bylaws. Exchange Subsidiary’’ is defined as ‘‘any national (describing Trading Permits). 15 See Amendment No. 1 at 5–6 (concerning the securities exchange, controlled, directly or 13 See Amendment No. 1 at 3. In the event of a size of the initial CBOE Holdings Board). CBOE indirectly, by CBOE Holdings, including, but not future public offering by CBOE Holdings, each currently has a 23-person Board with one vacancy limited to CBOE.’’ This change in terminology outstanding share of Class A common stock would that the CBOE Board does not intend to fill prior addresses CBOE’s other national securities be converted to one-half of one share of Class A– to the consummation of the Restructuring exchange C2 Options Exchange, Incorporated and 1 common stock and one-half share of one share of Transaction. would accommodate ownership of more than one Class A–2 common stock, each of which would be 16 See ‘‘Nominating and Governance Committee,’’ national securities exchange by CBOE Holdings. See subject to certain transfer restrictions. Specifically, infra Section II.B.2. (describing composition of Amendment No. 1 at 4. See also Securities Class A–1 common stock resulting from a Nomination and Governance Committee).

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nominate candidates for the CBOE members of each committee would be would have the duties or powers or both Holdings Board.17 Each holder of CBOE selected by the CBOE Holdings Board. set out in the CBOE Holdings Bylaws, as Holdings voting stock would be entitled The Executive Committee would have well as such other duties or powers or to one vote for each share of voting all the powers and authority of the both as the CBOE Holdings Board or the stock held, except as otherwise CBOE Holdings Board in the Chief Executive Officer may from time provided by the General Corporation management of the business and affairs to time prescribe.29 Law of the State of Delaware or the of CBOE Holdings, except it would not The Commission finds that the Certificate of Incorporation or Bylaws of have the power or authority of the CBOE proposed provisions relating to the CBOE Holdings.18 Holdings Board in reference to, among CBOE Holding Board are consistent other things, amending the CBOE with the Act, particularly Section The CBOE Holdings Board would be Holdings Certificate of Incorporation, 6(b)(1), which requires an exchange to subject to a heightened independence adopting an agreement of merger or be so organized and have the capacity requirement, with at least two-thirds of consolidation, approving the sale, lease to carry out the purposes of the Act.30 the directors satisfying the or exchange of all or substantially all of In particular, these provisions will assist independence requirements adopted by the CBOE Holdings’ property and assets, the Exchange in fulfilling its self- the CBOE Holdings Board, as may be or approving the dissolution of CBOE regulatory obligations and in amended from time to time, which shall Holdings or a revocation of a administering and complying with the satisfy the independence requirements dissolution.24 The Executive Committee requirements of the Act. in the listing standards of the New York would include the Chairman of the (2) Ownership and Voting Restrictions Stock Exchange (‘‘NYSE’’) or The Nasdaq Board (who would serve as the Stock Market.19 CBOE Holdings Chairman of the Executive Committee), The proposed Certificate of directors would serve one-year terms.20 the Chief Executive Officer (if a Incorporation of CBOE Holdings places certain ownership and voting limits on The CBOE Holdings Board would director), the Lead Director, if any, and the holders of CBOE Holdings stock and appoint one of its directors to serve as such directors as the CBOE Holdings their Related Persons.31 These Chairman,21 Board deems appropriate, provided that and may also appoint an restrictions are intended to address the independent director to serve as Lead Executive Committee must at all times have a majority of independent possibility that a person holding a Director, who would perform such controlling interest in an entity that duties and possess such powers as the directors. The Nominating and Governance owns an SRO could use that interest to CBOE Holdings Board may from time to affect the SRO’s regulatory 22 time prescribe. Committee would recommend members 32 of CBOE Holdings’ Executive, Audit, responsibilities. Committees of CBOE Holdings. CBOE Ownership Limitation. No person and Compensation Committees for (either alone or together with its Related Holdings would have an Executive approval by the CBOE Holdings Persons) may beneficially own more Committee, an Audit Committee, a Board.25 The Nominating and than 10% of the total outstanding shares Compensation Committee, a Nominating Governance Committee would consist of and Governance Committee, and such of CBOE Holdings stock. In the event of at least five directors, all of whom a public offering of common stock, the other committees that the CBOE would be Independent Directors.26 23 permissible ownership percentage Holdings Board establishes. The Officers of CBOE Holdings. CBOE threshold would increase from 10% to Holdings would have a Chief Executive 33 17 See proposed Article 2.11 of the CBOE 20%. If a person, either alone or Officer, a Chief Financial Officer, a together with its Related Persons, Holdings Bylaws. Pursuant to proposed Article President, one or more Vice-Presidents 2.11, the CBOE Holdings Board or a committee exceeds these thresholds, such person thereof each year would nominate candidates for (as determined by the CBOE Holdings and its Related Persons would be the directors standing for election at the CBOE Board), a Secretary, a Treasurer, and obligated to sell promptly, and CBOE Holdings annual meeting of shareholders. See also such other officers as the CBOE Amendment No. 1 at 6–7 (discussing director Holdings would be obligated to redeem nominees). In addition, subject to certain Holdings Board may determine, promptly, the number of shares of stock conditions, stockholders also have the right under including an Assistant Secretary or necessary so that such person, together this provision to nominate persons for the CBOE Assistant Treasurer.27 The Chief Holdings Board. with its Related Persons, would fall Executive Officer would have general 34 18 below the applicable threshold. See proposed Article 2.8 of the CBOE Holdings charge and supervision of the business Bylaws. The Commission notes that there are no 28 provisions in the proposed CBOE Holdings of CBOE Holdings. Other officers 29 See proposed Articles 5.3, 5.4, 5.5, 5.6 and 5.7 corporate documents providing for anything other of the CBOE Holdings Bylaws. than one vote for each share of voting stock held. 24 See proposed Article 4.2 of the CBOE Holdings 30 See Section 6(b)(1) of the Act, 15 U.S.C. 19 See Amendment No. 1 at 6. See proposed Bylaws. 78f(b)(1). Article 3.3 of the CBOE Holdings Bylaws. See also 25 See proposed Articles 4.2, 4.3 and 4.4 of the 31 The term ‘‘Related Person’’ is defined in Sections 303A.01 and 303A.02 of the NYSE’s Listed CBOE Holdings Bylaws. proposed Article Fifth(a)(ix) of the CBOE Holdings Company Manual and Nasdaq Stock Market Rule 26 See Article 4.5 of the CBOE Holdings Bylaws. Certificate of Incorporation and includes, among 5605. See also Amendment No. 1 at 6–7 (decreasing the other things, persons associated with a Trading 20 See Amendment No. 1 at 6 (changing term size of the committee from seven to five). With the Permit Holder. duration from two years, as initially proposed, to exception of the initial committee, all committee 32 The Commission notes that CBOE has received one year). members would be recommended by the a legal opinion that the proposed ownership and 21 See proposed Article 3.6 of the CBOE Holdings Nominating and Governance Committee for voting limitations, as well as the provisions Bylaws. The proposed CBOE Holdings Bylaws approval by the CBOE Holdings Board. See providing for the redemption of shares held by a would not restrict the Chief Executive Officer of proposed Article 4.5 of the CBOE Holdings Bylaws. person (either alone or together with its Related CBOE Holdings from serving in this role. See The initial Nominating and Governance Committee Persons) in excess of the ownership limitation, are proposed Article 5.1 of the CBOE Holdings Bylaws. after the Restructuring Transaction would be valid under Delaware law. See Letter from Richards, 22 See proposed Article 3.7 of the CBOE Holdings selected by the CBOE Board or a committee thereof, Layton & Finger to CBOE Holdings, Inc. dated Bylaws. consistent with the committee’s composition August 15, 2008. 23 See proposed Article 4.1 of the CBOE Holdings requirements. 33 See proposed Article Sixth(b) of the CBOE Bylaws. The CBOE Holdings Board would designate 27 See proposed Article 5.1 of the CBOE Holdings Holdings Certificate of Incorporation. the members of these other committees and may Bylaws. 34 See proposed Article Sixth(b) of the CBOE designate a Chairman and a Vice-Chairman of each 28 See proposed Articles 5.1 and 5.2 of the CBOE Holdings Certificate of Incorporation. CBOE committee. Holdings Bylaws. Holdings would redeem such stock at a price equal

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Voting Limitation. No person (either responsibilities under the Act and the The Commission believes that these alone or together with its Related rules and regulations thereunder and is provisions are consistent with the Act. Persons) would be entitled to vote or otherwise in the best interests of CBOE These requirements are designed to cause the voting of shares of stock Holdings and its stockholders and minimize the potential that a person beneficially owned by that person or CBOE; could improperly interfere with or those Related Persons to the extent that • The acquisition would not impair restrict the ability of the Commission or those shares would represent in the the Commission’s ability to enforce the the Exchange to effectively carry out aggregate more than 10% of the total Act; their regulatory oversight under the Act. number of votes entitled to be cast on • Neither the person obtaining the Members that trade on an exchange any matter. Further, no person (either waiver nor any of its Related Persons is traditionally have had ownership alone or together with its Related subject to any statutory disqualification interests in the exchange, particularly at Persons) would be entitled to vote more (as defined in Section 3(a)(39) of the mutually-held entities like CBOE.42 than 10% of the total number of votes Act); 38 and However, as the Commission has noted entitled to be cast on any matter by • For so long as CBOE Holdings in the past, a member’s interest in an virtue of agreements entered into by that directly or indirectly controls CBOE, exchange or an entity that controls an person or those Related Persons with neither the person obtaining the waiver exchange could become so large as to other persons not to vote shares of nor any of its Related Persons is a cast doubt on whether the exchange can outstanding stock. In the event a public Trading Permit Holder.39 fairly and objectively exercise its self- offering of common stock, these regulatory responsibilities with respect The CBOE Holdings Board would 43 permissible voting percentage have the right to require any person and to that member. A member that is a thresholds would increase from 10% to its Related Persons that the Board controlling shareholder of an exchange, 20%.35 Any attempted votes in the reasonably believes to be subject to the or an entity that controls an exchange, excess of such thresholds would be voting or ownership restrictions might be tempted to exercise that 36 controlling influence by directing the disregarded. summarized above to provide to CBOE exchange to refrain from, or the Waiver of Ownership or Voting Holdings complete information on all exchange may hesitate to, diligently Limitations. The CBOE Holdings Board shares of CBOE Holdings stock that such monitor and surveil the member’s may waive the ownership and voting stockholder beneficially owns, as well conduct or diligently enforce its rules limits and may impose conditions or as any other information relating to the and the Federal securities laws with restrictions by means of a resolution applicability to such stockholder of the respect to conduct by the member that expressly permitting ownership or voting and ownership requirements violates such provisions. The proposed voting rights in excess of such limits, outlined above as may reasonably be ownership and voting limitations for subject to a determination of the Board requested.40 37 persons with an equity interest in CBOE that: In addition, any changes to the CBOE • The acquisition would not impair Holdings are designed to limit a Holdings Certificate of Incorporation, the ability of CBOE to discharge its person’s ability to obtain and exercise including any change in the provision such a controlling influence. that identifies CBOE Holdings as the to the par value of such shares of stock and to the (3) Self-Regulatory Function and extent that funds are legally available for such sole owner of CBOE, must be filed with redemption. If shares of CBOE Holdings stock and approved by the Commission Oversight of CBOE beneficially owned by any Person or its Related pursuant to Section 19 of the Act before Although CBOE Holdings will not Persons are held of record by any other Person, this it could become effective.41 Further, provision would be enforced against such record itself carry out regulatory functions, its owner by requiring the redemption of shares of pursuant to the Exchange’s proposed activities with respect to the operation CBOE Holdings stock held by such record owner in Certificate of Incorporation, CBOE of CBOE must be consistent with, and a manner that would accomplish the ownership Holdings may not sell, transfer, or not interfere with, the Exchange’s self- limitation applicable to such Person and its Related assign, in whole or in part, its Persons. See id. regulatory obligations. The proposed 35 See proposed Article Sixth(a) of the CBOE ownership interest in CBOE. Any such CBOE Holdings Certificate of Holdings Certificate of Incorporation. The voting purported action would trigger an Incorporation contains various limitation does not apply to a solicitation of a amendment both to CBOE Holdings’ and provisions designed to protect the revocable proxy by any CBOE Holdings stockholder CBOE’s governing documents, which in independence of the self-regulatory on behalf of CBOE Holdings or by directors or officers of CBOE Holdings on behalf of CBOE turn would be subject to consideration function of CBOE, enable the Exchange Holdings or to a solicitation of a revocable proxy by the Commission pursuant to the rule to operate in a manner that complies by a stockholder in accordance with Regulation 14A filing procedure under Section 19 of the with the Federal securities laws, under the Act. 17 CFR 240.14A. This exception, Act. however, would not apply to a solicitation by a 42 With the proposed demutualization of CBOE, stockholder pursuant to Rule 14a-2(b)(2) under the all registered national securities exchanges will Act, which permits a solicitation made otherwise 38 15 U.S.C. 78c(a)(39). have converted to or been founded as non-mutually 39 ‘‘ ’’ than on behalf of CBOE Holdings where the total A Trading Permit Holder is defined in held entities. number of persons solicited is not more than 10. Section 1.1(f) of the Bylaws of the Exchange as: Any 43 See Securities Exchange Act Release Nos. 36 individual, corporation, partnership, limited See proposed Article Sixth(a) of the CBOE 58375 (August 18, 2008), 73 FR 49498 (August 21, liability company or other entity authorized by the Holdings Certificate of Incorporation. If and to the 2008) (File No. 10–182) (order approving Rules that holds a Trading Permit. If a Trading extent that shares of CBOE Holdings stock application of BATS Exchange, Inc. for registration beneficially owned by any person or its Related Permit Holder is an individual, the Trading Permit as an SRO); 53382 (February 27, 2006), 71 FR 11251 ‘‘ Persons are held of record by any other person, this Holder may also be referred to an individual (March 6, 2006) (SR–NYSE–2005–77) (order provision would be enforced against such record Trading Permit Holder.’’ If a Trading Permit Holder approving merger of New York Stock Exchange, Inc. owner by limiting the votes entitled to be cast by is not an individual, the Trading Permit Holder may and Archipelago, and demutualization of New York such record owner in a manner that would also be referred to as a ‘‘TPH organization.’’ A Stock Exchange, Inc.; 53128 (January 13, 2006), 71 accomplish the voting limitation applicable to such Trading Permit Holder is a ‘‘member’’ solely for FR 3550 (January 23, 2006) (File No. 10–131); 51149 person and its Related Persons. purposes of the Act; however, one’s status as a (February 8, 2005), 70 FR 7531 (February 14, 2005) 37 See proposed Articles Sixth(a) and (b) of the Trading Permit Holder does not confer on that (SR–CHX–2004–26); 49718 (May 17, 2004), 69 FR CBOE Holdings Certificate of Incorporation. Any Person any ownership interest in the Exchange. 29611 (May 24, 2004) (SR–PCX–2004–08); 49098 such resolution must be filed with the Commission 40 See proposed Article Sixth(d) of the CBOE (January 16, 2004), 69 FR 3974 (January 27, 2004) under Section 19 of the Act prior to becoming Holdings Certificate of Incorporation. (SR–Phlx-2003–73); and 49067 (January 13, 2004), effective. 41 See 15 U.S.C. 78s. 69 FR 2761 (January 20, 2004) (SR–BSE–2003–19).

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including the objectives of Sections 6(b) trading data, trading practices, and obligations of CBOE and facilitate the and 19(g) of the Act, facilitate the ability audit information) contained in the ability of CBOE to effectively carry out of the Exchange and the Commission to books and records of CBOE that comes its regulatory responsibilities under the fulfill their regulatory and oversight into the possession of CBOE Holdings: Act. obligations under the Act. (1) Could not be made available to any The Commission notes that under For example, the proposed CBOE persons other than to those officers, Section 20(a) of the Act,52 any person Holdings Certificate of Incorporation directors, employees and agents of with a controlling interest in CBOE contains a provision requiring each CBOE Holdings that have a reasonable would be jointly and severally liable director of the CBOE Holdings Board to need to know the contents thereof; (2) with and to the same extent that CBOE take into consideration the effect that would be retained in confidence by is liable under any provision of the Act, CBOE Holdings’ actions would have on CBOE Holdings and the officers, unless the controlling person acted in CBOE’s ability to carry out its directors, employees and agents of good faith and did not directly or responsibilities under the Act.44 CBOE Holdings; and (3) could not be indirectly induce the act or acts Similarly, for so long as CBOE Holdings used for any commercial purposes.48 constituting the violation or cause of controls CBOE, each officer, director, The proposed CBOE Holdings action. In addition, Section 20(e) of the and employee of CBOE Holdings must Certificate of Incorporation also requires Act,53 creates aiding and abetting give due regard to the preservation of CBOE Holdings to take reasonable steps liability for any person who knowingly the independence of the self-regulatory to cause its directors, officers, and provides substantial assistance to function of CBOE and to its obligations employees, prior to accepting such another person in violation of any under the Act and such persons are position with CBOE Holdings, to provision of the Act or rule thereunder. prohibited from taking any actions that consent in writing to the applicability to Further, Section 21C of the Act 54 they reasonably should have known them of Article Fourteenth, Article authorizes the Commission to enter a would interfere with the effectuation of Fifteenth, and Sections (c) and (d) of cease-and-desist order against any any decisions by the Board of Directors Article Sixteenth of the CBOE Holdings person who has been ‘‘a cause of’’ a of CBOE (‘‘CBOE Board’’) relating to Certificate of Incorporation, as violation of any provision of the Act CBOE’s regulatory functions, including applicable, with respect to their through an act or omission that the disciplinary matters, or would adversely activities related to CBOE.49 In addition, person knew or should have known affect CBOE’s ability to carry out its CBOE Holdings would take reasonable would contribute to the violation. These responsibilities under the Act.45 steps necessary to cause its agents, prior provisions are applicable to CBOE Further, the proposed CBOE Holdings to accepting such a position with CBOE Holdings’ dealings with CBOE. Certificate of Incorporation provides Holdings, to be subject to the same C. CBOE that CBOE Holdings, its directors, provisions, as applicable, with respect officers, agents, and employees 50 Following the Restructuring to their activities related to CBOE. Transaction, CBOE would become a irrevocably submit to the jurisdiction of In addition, for so long as CBOE the U.S. Federal courts, the Delaware for-profit stock corporation Holdings controls CBOE, CBOE wholly-owned by CBOE Holdings. Commission, and CBOE and CBOE Holdings would be required to submit to Holdings, its directors, officers, agents, CBOE would issue a total of 1,000 the CBOE Board any proposed shares of common stock, all of which and employees, would waive any claims amendment to or repeal of any or defenses that they are not personally would be owned by CBOE Holdings.55 provision of the CBOE Holdings CBOE would continue to be registered subject to the jurisdiction of the Certificate of Incorporation or CBOE Commission, as well as any defenses as a national securities exchange under Holdings Bylaws and to file such with Section 6 of the Act and, accordingly, relating to inconvenient forum, the Commission before it may become 46 would continue to be an SRO improper venue, or jurisdiction. effective.51 Further, so long as CBOE Holdings responsible for enforcing compliance by The Commission finds that the its members (i.e., Trading Permit controls CBOE, the books, records, proposed governing documents for premises, officers, directors, and Holders) with the Federal securities CBOE Holdings, discussed above, are laws and with CBOE Rules.56 Likewise, employees of CBOE Holdings would be designed to protect the independence of deemed to be the books, records, CBOE would continue as a participant the self-regulatory function of CBOE and and voting member in the following premises, officers, directors, and clarify the Commission’s and CBOE’s employees of CBOE for purposes of and national market system plans: The jurisdiction with respect to CBOE Options Price Reporting Authority Plan, subject to oversight pursuant to the Act Holdings in a manner consistent with 47 the Consolidated Tape Association, the to the extent that they relate to CBOE. the Act. Accordingly, these provisions In addition, all confidential Consolidated Quotation Plan, the should help ensure CBOE Holdings’ Nasdaq Unlisted Trading Privileges information pertaining to the self- attention to the self-regulatory regulatory function of CBOE (including Plan, the Options Order Protection and but not limited to disciplinary matters, Locked/Crossed Market Plan, the 48 Notwithstanding this restriction, nothing in the Options Regulatory Surveillance CBOE Holdings Certificate of Incorporation would 44 See proposed Article Sixteenth(d) of the CBOE be interpreted so as to limit or impede the rights Holdings Certificate of Incorporation. of the Commission or CBOE to access and examine 52 15 U.S.C. 78t(a). 45 See proposed Article Sixteenth(c) of the CBOE such confidential information or to limit or impede 53 15 U.S.C. 78t(e). Holdings Certificate of Incorporation. the ability of any officers, directors, employees or 54 15 U.S.C. 78u–3. 46 See proposed Article Fourteenth of the CBOE agents of CBOE Holdings to disclose such 55 Any sale, transfer or assignment by CBOE Holdings Certificate of Incorporation. confidential information to the Commission or Holdings of any shares of CBOE common stock 47 The books and records of CBOE Holdings CBOE. See proposed Article Fifteenth of the CBOE would require an amendment to the proposed relating to the exchange business of CBOE would Holdings Certificate of Incorporation. CBOE Certificate of Incorporation and consequently be subject at all times to inspection and copying by 49 See proposed Article Sixteenth(b) of the CBOE would be subject to prior approval by the the Commission and CBOE. See id. In addition, the Holdings Certificate of Incorporation. Commission pursuant to the rule filing procedure CBOE Holdings Bylaws provide that the books of 50 See id. under Section 19 of the Act (15 U.S.C. 78s). See CBOE Holdings must be kept within the United 51 See proposed Article Eleventh of the CBOE proposed Article Fourth of the CBOE Certificate of States. See proposed Section 1.3 of the CBOE Holdings Certificate of Incorporation and proposed Incorporation. Holdings Bylaws. Article 10.2 of the CBOE Holdings Bylaws. 56 15 U.S.C. 78f.

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Authority Plan, and the Options Listing Subcommittee (directors selected consistent with the applicable proposed Procedures Plan.57 through this process are referred to as compositional requirements.71 CBOE’s current Certificate of ‘‘Representative Directors’’).64 Directors Industry-Director Subcommittee. The Incorporation, Constitution (which would serve for one-year terms ending Industry-Director Subcommittee of the would be replaced by the proposed on the annual meeting following the Nominating and Governance Bylaws), and selected rules are meeting at which such directors were Committee, composed of all of the proposed to be amended to reflect, elected.65 Industry Directors then serving on the among other things, CBOE’s status as The CBOE Board would appoint one Nominating and Governance wholly-owned subsidiary of CBOE of its directors to serve as Chairman, Committee, would be responsible for Holdings. which could be the Chief Executive recommending a number of Officer of CBOE.66 Each year following Representative Directors that equals (1) CBOE Board and Committees the annual election of the directors, the 20% of the total number of directors The business and affairs of CBOE CBOE Board would select, from among serving on the CBOE Board.72 The would continue to be managed under the Industry Directors, a Vice Chairman subcommittee would provide a the direction of the CBOE Board. The of the CBOE Board to serve for a term mechanism for Trading Permits Holders CBOE Board would be composed of of one year.67 The CBOE Board also may to provide input with respect to between 11 and 23 directors as fixed by appoint one of the Non-Industry nominees for the Representative the CBOE Board from time to time.58 Directors to serve as Lead Director, who Directors. The subcommittee would also The initial CBOE Board would be would perform such duties and possess issue a circular to Trading Permit composed of the 22 individuals who are such powers as the CBOE Board may Holders identifying the Representative the directors of CBOE immediately prior from time to time prescribe.68 Director nominees.73 to the Restructuring Transaction.59 The proposed Nominating and Thus, the CBOE Board following the (2) Nomination and Election of Directors Governance Committee would be bound Restructuring Transaction would be Qualified individuals would be to accept and nominate the composed of CBOE’s Chief Executive nominated for election to the CBOE Representative Directors recommended Officer, twelve Non-Industry 60 Board by CBOE’s Nominating and by the Industry-Director Subcommittee, Directors, and ten Industry 61 Governance Committee.69 The provided that the Representative Directors.62 committee would consist of at least Directors so nominated by the Industry- The number of Non-Industry Directors seven directors, with a majority being Director Subcommittee are not opposed and Industry Directors may be increased Non-Industry Directors,70 all of whom by a petition candidate. If such from time to time by resolution of the would be recommended by the then- Representative Directors are opposed by CBOE Board, but the number of Industry serving Nominating and Governance a petition candidate, then the Directors could not constitute less than Committee for approval by the Board. Nominating and Governance Committee 30% of the CBOE Board and in no event The initial Nominating and Governance would be bound to accept and nominate would the number of Non-Industry Committee after the Restructuring the Representative Directors who Directors constitute less than a majority Transaction would be selected by the receive the most votes pursuant to a 63 of the CBOE Board. In addition, at CBOE Board or a committee thereof, ‘‘Run-off Election,’’ as described least 20% of the directors must be below.74 Industry Directors nominated (or 64 See proposed Section 3.1 of the CBOE Bylaws. Petition Process. Trading Permit otherwise selected through the petition 65 See Amendment No. 1 at 9–10. Holders may nominate alternative process) by the Industry-Director 66 See proposed Section 3.6 of the CBOE Bylaws. See also proposed Section 5.1(a) of the CBOE candidates for election to the Bylaws (concerning the ability of the CEO to serve Representative Director positions by 57 These plans are joint industry plans entered as Chairman of the CBOE Board). submitting a petition signed by into by SROs for the purpose of providing for, 67 See proposed Section 3.7 of the CBOE Bylaws. respectively, (i) last sale and quotation reporting in individuals representing not less than The Vice Chairman would: (i) Preside over the options and equities, (ii) intermarket options 10% of the total outstanding Trading meetings of the CBOE Board in the event the trading, (iii) the joint surveillance, investigation and Chairman of the Board is absent or unable to do so, Permits at that time. If one or more valid detection of insider trading on the options (ii) serve as chair the Trading Advisory Committee, petitions are received, a Run-off exchanges, and (iv) the listing of standardized (iii) except as otherwise provided in the Rules or options. Election would be held. In any Run-off resolution of the CBOE Board, appoint, subject to 58 See Amendment No. 1 at 7. See also proposed the approval of the CBOE Board, the individuals to Article Fifth(b) of the CBOE Certificate of serve on all Trading Permit Holder committees 71 The composition of the proposed new Incorporation and proposed Section 3.1 of the established in the Rules or by resolution of the Nominating and Governance Committee differs CBOE Bylaws. Board, and (iv) exercise such other powers and from the composition of CBOE’s current 59 See Amendment No. 1 at 7. perform such other duties as are delegated to the Nominating Committee in that the current 60 A ‘‘Non-Industry Director’’ would be defined as Vice Chairman of the Board by the CBOE Board. Nominating Committee consists of a majority of a person who is not an Industry Director. See 68 See proposed Section 3.8 of the CBOE Bylaws. ‘‘industry’’ members and is not tasked with proposed Section 3.1 of the CBOE Bylaws. The CBOE Board currently has a Lead Director, and responsibility for governance issues. In addition, 61 See Notice, supra 4, 73 FR at 51658, n.58. as provided in proposed Section 3.8 of the CBOE the current Nominating Committee is not a 62 See proposed Article Fifth(b) of the Amended Bylaws, CBOE has the ability to continue the committee of the current CBOE Board, but rather is and Restated Certificate of Incorporation and practice after the Restructuring Transaction. a separate committee elected by the voting members proposed Section 3.1 of the CBOE Bylaws. In 69 See id. In performing this function, the of the Exchange. See Section 4.1 of the current comparison, the current CBOE Board has 23 Nominating and Governance Committee would CBOE Constitution. directors, consisting of eleven public directors, determine, subject to review by the Board, whether 72 See proposed Section 3.2 of the CBOE Bylaws. eleven directors from the industry, and the a director candidate satisfies the applicable If 20% of the directors then serving on the CBOE Chairman of the Board (who is the CEO of CBOE). qualifications for election as a director, and the Board is not a whole number, such number of See Notice, supra note 4, 73 FR at 51658 (discussing decision of that committee shall, subject to review, Representative Directors would be rounded up to the composition of the current CBOE Board). if any, by the Board, be final. See proposed Section the next whole number. See proposed Section 3.2 63 At all times, at least one Non-Industry Director 3.1 of the CBOE Bylaws. CBOE anticipates that the of the CBOE Bylaws. Industry Directors not selected would be a Non-Industry Director exclusive of the Nominating and Governance Committee would use by the Industry-Director Subcommittee would be exceptions provided for in proposed Section 3.1 of director questionnaires in connection with selected by the Nominating and Governance the CBOE Bylaws and would have no material determining the qualifications of director Committee. See proposed Section 3.2 of the CBOE business relationship with a broker or dealer or the candidates. See Notice, supra note 4, 73 FR at Bylaws. Exchange or any of its affiliates. See proposed 51659, n.74. 73 See id. Section 3.1 of the CBOE Bylaws. 70 See proposed Section 4.5 of the CBOE Bylaws. 74 See id.

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Election, each Trading Permit Holder process. The Commission believes that Nominating and Governance Committee would have one vote for each public directors can provide unique, for approval by the Board.86 The Representative Director position; unbiased perspectives, which should Executive Committee 87 would consist provided, however, that no Trading enhance the ability of the CBOE Board of the Chairman and Vice Chairman of Permit Holder, either alone or together to address issues in a non- the CBOE Board, the Chief Executive with its affiliates, may account for more discriminatory fashion and foster the Officer (if a director), the Lead Director than 20% of the votes cast for a integrity of the Exchange.80 The (if any), at least one Representative candidate. Any votes cast by a Trading Commission also believes that the Director, and such other number of Permit Holder, either alone or together proposed CBOE Board satisfies the directors that the Board deems with its affiliates, in excess of this 20% requirements in Section 6(b)(3) of the appropriate, provided that at all times limitation would be disregarded.75 Act,81 which requires that one or more the majority of the directors serving on The winner(s) of the Run-off Election directors be representative of issuers the Executive Committee are Non- would be nominated as the and investors and not be associated with Industry Directors.88 Representative Director(s) by the a member of the exchange, or with a Member Committees. In addition to Nominating and Governance Committee broker or dealer. In particular, at least these CBOE Board-level committees, for that year. In addition, CBOE and one Non-Industry Director would be a CBOE would have certain Exchange- CBOE Holdings have entered into a Non-Industry Director exclusive of any level committees, including a Trading Voting Agreement pursuant to which exceptions and would have no material Advisory Committee and such other CBOE Holdings has committed to vote business relationship with a broker or committees as may be provided from in favor of the Representative Directors dealer or the Exchange or any of its time to time.89 The proposed Trading recommended by the Nominating and affiliates. Advisory Committee would advise the 76 Office of the Chairman regarding Governance Committee. (3) Committees of CBOE The Commission believes that the matters of interest to Trading Permit requirements in the proposed CBOE In addition to the Nominating and Holders.90 The majority of the Bylaws that 20% of the CBOE Board be Governance Committee discussed Representative Directors and the means above, CBOE would have an Executive 86 See proposed Section 4.6 of the CBOE Bylaws. 87 by which they are chosen by members Committee, an Audit Committee, a CBOE noted that its current Executive Compensation Committee, a Regulatory Committee (as well as the proposed new Executive provides for the fair representation of Committee) generally does not make a decision members in the selection of directors Oversight Committee, and such other unless there is a need for a CBOE Board-level and the administration of the Exchange standing and special committees as may decision between CBOE Board meetings due to the consistent with the requirements of be approved by the CBOE Board. Except time sensitivity of the matter. See Notice, supra as may be otherwise provided in the note 4, 73 FR at 51660–61. In addition, in situations Section 6(b)(3) of the Act.77 As the when the current Executive Committee does make Commission has previously noted, this CBOE Bylaws, the Board would have a decision between CBOE Board meetings, CBOE requirement helps to ensure that the authority to remove committee noted that the CBOE Board is generally aware ahead 82 of time of the potential that the Executive members have a voice in the use of the members. Director Committees. Director Committee may need to make the decision. See id. SRO’s self-regulatory authority, and that CBOE notes that the current CBOE Board is, and candidates for CBOE’s Executive, Audit, an exchange is administered in a way after the Restructuring Transaction would continue and Compensation Committees would to be, fully informed of any decision made by the that is equitable to all those who trade be recommended by the Nominating current (and new) Executive Committee at its next on its market or through its facilities.78 and Governance Committee for approval meeting and can always decide to review that The Commission has previously decision and take different action. See id. by the CBOE Board.83 The Audit stated its belief that the inclusion of 88 See proposed Section 4.2 of the CBOE Bylaws. Committee and the Compensation public, non-industry representatives on If the Vice Chairman is a Representative Director, Committee would each consist of at the requirement to have at least one Representative exchange oversight bodies is critical to least three directors, all of whom would Director on the new Executive Committee would be an exchange’s ability to protect the satisfied by the Vice Chairman’s participation on be Non-Industry Directors.84 The public interest.79 Further, public non- that committee. The Executive Committee would Regulatory Oversight Committee, which have all the powers and authority of the CBOE industry representatives help to ensure would be charged with overseeing the Board in the management of the business and affairs that no single group of market of CBOE, except it would not have the power and independence and integrity of the authority of the Board to, among others: (i) Approve participants has the ability to regulatory functions of the Exchange, disadvantage other market participants or adopt or recommend to the stockholders any would consist of at least three action or matter (other than the election or removal through the exchange governance directors,85 all of whom would be Non- of directors) expressly required by Delaware law to Industry Directors recommended by the be submitted to stockholders for approval, 75 See proposed Section 3.1 of the CBOE Bylaws. including without limitation, amending the In any Run-off Election, Trading Permits Non-Industry Directors on the proposed CBOE Certificate of Incorporation, representing one-third of the total outstanding adopting an agreement of merger or consolidation, Trading Permits entitled to vote, when present in 80 See, e.g., BATS Exchange Registration Order approving a sale, lease or exchange of all or person or represented by proxy, would constitute a and Nasdaq Exchange Registration Order, supra substantially all of CBOE’s property and assets, or quorum for purposes of the Run-off Election. See id. note 78, 73 FR at 49501 and 71 FR at 3553, approval of a dissolution of CBOE or revocation of a dissolution, or (ii) adopt, alter, amend or repeal 76 CBOE included the proposed Voting respectively. any bylaw of CBOE. See proposed Section 4.2 of the 81 15 U.S.C. 78f(b)(3). Agreement as Exhibit 5F to its proposed rule CBOE Bylaws. change. 82 See proposed Section 4.1(a) of the CBOE 89 See proposed Section 4.1(b) of the CBOE 77 Bylaws. 15 U.S.C. 78f(b)(3). Bylaws. ‘‘Exchange committees’’ refers to 83 78 See, e.g., Securities Exchange Act Release Nos. See proposed Sections 4.2, 4.3 and 4.4 of the committees that are not solely composed of 58375 (August 18, 2008), 73 FR 49498 (August 21, CBOE Bylaws. The selection and composition of the directors from the CBOE Board. Except as may be 2008) (File No. 10–182) (‘‘BATS Exchange Nominating and Governance Committee is otherwise provided in the CBOE Bylaws, the rules Registration Order’’); 53128 (January 13, 2006), 71 discussed above. or the resolution of the CBOE Board establishing FR 3550 (January 23, 2006) (File No. 10–131) 84 See proposed Section 4.3 of the CBOE Bylaws any such other committee, the Vice Chairman of the (‘‘Nasdaq Exchange Registration Order’’). (Audit Committee) and Section 4.4 of the CBOE Board, with the approval of the CBOE Board, would 79 See, e.g., Regulation of Exchanges and Bylaws (Compensation Committee). appoint the members of such Exchange committees Alternative Trading Systems, Securities Exchange 85 See Amendment No. 1 at 11 (changing the (other than the committees of the CBOE Board) and Act Release No. 40760 (December 8, 1998), 63 FR number of directors required from four to three to may designate, with the approval of the Board, a 70844 (December 22, 1998) (‘‘Regulation ATS allow for greater flexibility in the designation of the Chairman and a Vice-Chairman thereof. Release’’). committee). 90 See proposed Section 4.7 of the CBOE Bylaws.

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committee would be individuals provide that no Representative Director continue to be registered as a national involved in trading either directly or may be removed from office at any time securities exchange under Section 6 of through their firms. The Vice Chairman except for cause.95 the Act and thus would continue to be would serve as the Chairman of the 101 (5) Officers of CBOE an SRO. As an SRO, CBOE is committee and would appoint, with the obligated to carry out its statutory approval of the CBOE Board, the other CBOE would have a Chief Executive responsibilities, including enforcing Officer, a Vice Chairman, a President, a members of the committee. The compliance by Trading Permit Holders Chief Financial Officer, one or more proposed Trading Advisory Committee with the provisions of the Federal Vice-Presidents, a Secretary, a would serve as the replacement for securities laws and the rules of CBOE. CBOE’s current Floor Directors Treasurer, and such other officers as the CBOE Board may determine, including In addition, CBOE would continue to be Committee, which advises CBOE required to file with the Commission, regarding trading and floor-related an Assistant Secretary and Assistant 96 pursuant to Section 19(b) of the Act 102 issues. Treasurer. In general, the officers and Rule 19b–4 thereunder,103 any In addition, CBOE would continue to would have the duties and powers set maintain a Business Conduct Committee forth in the CBOE Bylaws, as well as proposed changes to its rules and (‘‘BCC’’), which would remain involved such other duties or powers or both as governing documents. with the hearing of disciplinary the CBOE Board or, as applicable, the The proposed CBOE Certificate of matters.91 CBOE is not proposing any Chief Executive Officer may from time Incorporation contains various 97 material changes to the structure or to time prescribe. provisions designed to protect the self- function of the BCC.92 Contrary to the current CBOE regulatory functions of CBOE in light of Constitution,98 the proposed CBOE The Commission believes that the the proposed new corporate structure. Bylaws would not restrict an officer compositional requirements with For example, each director would be respect to the committees discussed from being a Trading Permit Holder or a person associated with a Trading required to take into consideration the above are designed to ensure that effect that his or her actions would have members are protected from unfair, Permit Holder or a broker or a dealer in securities or commodities or an on CBOE’s ability to carry out its unfettered actions by the Exchange responsibilities under the Act.104 The pursuant to its rules, and that, in associated person of such broker or dealer. The Exchange notes that there proposed CBOE Certificate of general, the Exchange is administered in Incorporation also includes provisions a way that is equitable to all those who are other protections in place that limit designed to protect confidential trade on its market or through its the potential conflicts between the information pertaining to the self- facilities. The Commission believes that Exchange as an SRO and Trading Permit regulatory function of the Exchange.105 the proposed compositional balance of Holders, including, among other things, the existence of a Regulatory Oversight these CBOE committees is consistent In addition, proposed CBOE Rule 2.51 Committee as a committee of the Board with the Section 6(b)(3) of the Act, requires that any revenue CBOE receives that consists solely of Non-Industry because it provides for the fair from regulatory fees or penalties would Directors.99 representation of Trading Permit only be applied to fund the legal, The Commission finds that this Holders in the administration of the proposed change consistent with the regulatory, and surveillance operations affairs of CBOE. Act, including Section 6(b)(2) of the of the Exchange and would not be used (4) Filling of Vacancies and Removal for Act,100 which requires that a national to pay dividends to CBOE Holdings, Cause securities exchange have rules that except in the event of liquidation of CBOE, in which case CBOE Holdings Any vacancy in the CBOE Board provide that any registered broker or dealer may become a member. The would be entitled to the distribution of could be filled by vote of a majority of CBOE’s remaining assets.106 the directors then in office or by a sole Commission finds that there are remaining director, provided such new sufficient safeguards in place to limit The Commission believes that the director qualifies for the category in potential conflicts of interest between Exchange’s proposed provisions which the vacancy exists.93 In the event the Exchange as an SRO and Trading concerning the self-regulatory function the CBOE Board needs to fill a vacancy Permit Holders. of CBOE are consistent with the Act, in a Representative Director position, (6) Self-Regulatory Function and particularly, with Section 6(b)(1), which the Industry-Director Subcommittee of Oversight requires an Exchange to be so organized the Nominating and Governance As noted above, following the and have the capacity to carry out the 107 Committee would either (i) recommend Restructuring Transaction, CBOE would purposes of the Act. In particular, an individual to the CBOE Board to be CBOE’s proposed governing documents elected to fill such vacancy or (ii) 95 See proposed Section 3.4(c) of the CBOE are designed to assist the Exchange in provide a list of recommended Bylaws. fulfilling its self-regulatory obligations individuals to the CBOE Board from 96 See proposed Section 5.1(a) of the CBOE and in administering and complying which the Board shall elect the Bylaws. with the requirements of the Act. individual to fill such vacancy.94 In 97 See proposed Sections 5.3, 5.4, 5.5, 5.6, 5.7 and 5.8 of the CBOE Bylaws. A few notable differences addition, the proposed CBOE Bylaws concerning CBOE’s officers following the 101 15 U.S.C. 78f. Restructuring Transaction include the following: (1) 102 15 U.S.C. 78s(b). 91 See CBOE Rule 2.1(a). See also infra II.D The Chief Executive Officer may, but would not 103 17 CFR 240.19b–4. (discussing the BCC). have to, be a director or the Chairman of the CBOE 104 See proposed Article Fifth(d) of the CBOE 92 See Notice, supra note 4, 73 FR at 51663. Board; (2) the CBOE Board, as opposed to the Certificate of Incorporation. 93 See proposed Section 3.5(a) of the CBOE membership, would select the Vice Chairman; and 105 See proposed Article Eleventh of the CBOE Bylaws. (3) the position of Chief Financial Officer would be Certificate of Incorporation. 94 See proposed Section 3.5(b) of the CBOE formally incorporated into the CBOE Bylaws. 106 Bylaws. Any individual recommended by the 98 See Section 8.1(b) of the current CBOE See Notice, supra note 4, 73 FR at 51662, and Industry-Director Subcommittee to fill the vacancy Constitution. Amendment No. 1 at 14 (codifying this provision of a Representative Director position must qualify 99 See Notice, supra note 4, 73 FR at 51662. in proposed Rule 2.51). as an Industry Director. 100 15 U.S.C. 78f(b)(2). 107 See 15 U.S.C. 78f(b)(1).

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(7) Paragraph (b) of Article Fifth of the Article Fifth(b). Without opining on the also would remain unchanged. Since CBOE Certificate of Incorporation merits of any claims arising solely under the CBOE Board would continue to be While the content of the Exchange’s State law, the Commission finds that responsible for approving rule changes, new Certificate of Incorporation and CBOE has articulated a sufficient basis including changes to trading and 114 Bylaws would be similar to the content to support its proposed changes. disciplinary rules, Trading Permit Holders would have a voice in the of the Exchange’s old Certificate of D. Disciplinary Matters and Trading and review of these rules through their Incorporation and Constitution, the new Disciplinary Rule Changes Certificate of Incorporation would not representation on the CBOE Board. In include, among other things, paragraph An exchange must be organized and addition, the proposed Trading (b) of Article Fifth of the current CBOE have the capacity to carry out the Advisory Committee, which would Certificate of Incorporation (‘‘Article purposes of the Act. Specifically, an replace the existing Floor Directors Fifth(b)’’).108 Article Fifth(b) provides exchange must be able to enforce Committee, would assume that prior the right for full members of The Board compliance by its members and persons committee’s responsibility for the of Trade of the City of Chicago, Inc. associated with its members with review of many of CBOE’s proposed rule ‘‘ ’’ Federal securities laws and the rules of changes (particularly trading rules) in ( CBOT ) to become members of CBOE 111 without having separately to purchase the exchange. CBOE’s current process an advisory capacity. Accordingly, the or lease a membership.109 for the hearing of disciplinary matters, Trading Advisory Committee would Article Fifth(b) further provides that and the rules governing that process, provide a mechanism for Trading Permit no amendment may be made to it would remain substantively unchanged Holders to provide input on trading without the prior approval of not less after the Restructuring Transaction. rules. than 80% of both (i) the regular Under CBOE Rule 17.6(a), the hearing of The Commission finds that the members of the Exchange admitted a disciplinary matter currently is Exchange’s amended By-Laws and rules pursuant to Article Fifth(b) and (ii) the conducted by one or more members of concerning its disciplinary and regular members of the Exchange the BCC. It has been the BCC’s general oversight programs are consistent with practice to use three-person BCC the Act, including the requirements of admitted other than pursuant to Article 115 Fifth(b), with each category voting as a hearing panels that include both Sections 6(b)(6) of the Act, which separate class. CBOE has received a industry and public representation, and requires the rules of an exchange to legal opinion from its Delaware counsel CBOE is not proposing to change this provide for the appropriate discipline of 112 that under Delaware law, because the process following demutualization. its members and persons associated Restructuring Transaction is structured Consistent with CBOE Rule 17.9, any with members for violations of the decision of a BCC hearing panel that is Federal securities laws and exchange as a merger, this provision of Article 116 Fifth(b) would not be triggered and the not composed of at least a majority of rules, and Section 6(b)(7), which demutualization and related the BCC is reviewed by the full BCC. requires the rules of an exchange to amendments to the Exchange’s In addition, the current process for provide a fair procedure for the governing documents could be effected the review of appeals of disciplinary disciplining of members and persons through a simple majority vote of actions, and the rules governing that associated with members, in that they members.110 process, would remain substantively are designed to provide fair procedures In approving this proposal, the unchanged. Under current Rule for the disciplining of members and Commission is relying on CBOE’s 17.10(b), the CBOE Board is vested with persons associated with members. The representation that its approach is the authority to review appeals of Commission further finds that the appropriate under Delaware State law. disciplinary actions. The CBOE Board proposal is designed to provide the The Commission is also relying on may appoint a committee of the Board Exchange with the ability to comply, CBOE’s letter of counsel that concludes composed of at least 3 directors to and with the authority to enforce that the Restructuring Transaction review the appeal, but the decision of compliance by its members and persons constitutes a merger and thus does not that committee must be ratified by the associated with its members, with the require the 80% vote contemplated in CBOE Board. Thus, after the provisions of the Act, the rules and Restructuring Transaction, Trading regulations thereunder, and the rules of 117 108 As a result of this change, the Exchange is Permit Holders would have a say in the Exchange. review of such appeals through their proposing to delete CBOE Rule 3.16, which E. Trading Permits addresses certain issues related to Article Fifth(b). representation on the CBOE Board.113 109 On January 15, 2008, the Commission The current process for the review of Prior to the Restructuring Transaction, approved an interpretation of Article Fifth(b) proposed trading and disciplinary rules Exchange memberships provided (‘‘Article Fifth(b) Interpretation’’) that addressed the impact of the acquisition of CBOT by Chicago trading access to the Exchange. After the Mercantile Exchange Holdings Inc. (‘‘CME/CBOT 111 See 15 U.S.C. 78f(b)(1). Restructuring Transaction, ‘‘Trading Transaction’’) on the eligibility of persons to become 112 See Notice, supra note 4, 73 FR at 51661. Permits’’ would provide trading access or remain members of CBOE (‘‘exerciser members’’) 113 As CBOE previously noted, it has been the to the Exchange.118 A person or entity pursuant to Article Fifth(b) (the right provided CBOE Board’s general practice to appoint a cross- under this provision is sometimes referred to as the section of directors to the CBOE Board committees 114 See proposed Section 10.1 of the CBOE ‘‘exercise right’’). See Securities Exchange Act that review appeals of disciplinary actions. See Bylaws. Release No. 57159 (January 15, 2008), 73 FR 3769 Notice, supra note 4, 73 FR at 51662. These 115 (January 22, 2008) (order approving File No. SR– committees usually consist of a floor or at-large 15 U.S.C. 78f(b)(6). CBOE–2006–106). Under that interpretation, the director, an off-floor director, and a public director. 116 15 U.S.C. 78f(b)(7). consummation of the CME/CBOT Transaction See id. CBOE is not proposing to change this 117 See Section 6(b)(1) of the Act, 15 U.S.C. resulted in no person any longer qualifying as a general practice and would expect that CBOE Board 78f(b)(1). member of the CBOT within the meaning of Article committees that review disciplinary decision 118 See proposed CBOE Rule 1.1(ggg) (defining Fifth(b) and therefore resulted in the elimination of appeals after the Restructuring Transaction would Trading Permit). ‘‘Trading Permits’’ would be any person’s eligibility to qualify thereafter to generally consist of an Industry Director who or defined as licenses issued by the Exchange that become or remain an exerciser member of the whose firm is engaged in trading on the Exchange, grant the holders or the holders’ nominee the right Exchange. an Industry Director whose firm is significantly to access the Exchange or one or more of its 110 See Letter from Richards, Layton & Finger to engaged in conducting a securities business with facilities for the purpose of effecting transactions in Chicago Board Options Exchange, Incorporated public customers, and a Non-Industry Director. See securities traded on the Exchange without the dated August 20, 2008. id. services of another person acting as broker, and

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that holds a Trading Permit would be charges as are established by the Trading Permits could not be leased referred to as a ‘‘Trading Permit Exchange from time to time.125 or transferred to any person except that Holder.’’ 119 Trading Permit Holders The Exchange would have the an organization holding a Trading would meet the definition of ‘‘member’’ authority to increase the number of any Permit may change the designation of in Section 3(a)(3)(A) of the Act.120 As type of Trading Permit it has the nominee in respect of each Trading members under the Act, Trading Permit determined to issue.126 The Exchange Permit it holds or a Trading Permit Holders and their nominees would be also would have the authority to limit Holder may, with the prior written subject to the regulatory jurisdiction of or reduce the number of any type of consent of the Exchange, transfer a the Exchange, including the Exchange’s Trading Permit it has determined to Trading Permit to a Trading Permit disciplinary jurisdiction under Chapter issue,127 although the Exchange would Holder organization or to an XVII of the CBOE Rules.121 be prohibited from eliminating or organization approved to be a TPH A Trading Permit would not convey reducing the ability to trade one or more organization which is an affiliate or any ownership interest in the Exchange, product(s) of a person currently trading which continues substantially the same would only be available through the such product(s) and would be business without regard to the form of Exchange, and would be subject to the prohibited from eliminating or reducing the transaction used to achieve such terms and conditions set forth in the ability to act in one or more trading continuation.131 proposed CBOE Rule 3.1. As a result of function(s) of a person currently acting the Exchange’s proposed new structure in such trading function(s), unless the (2) Issuance of Trading Permits in which ownership would be separated Exchange is permitted to do so pursuant In connection with the Restructuring from trading access, the Exchange is to a rule filing submitted to Commission Transaction, each current member of the 128 planning to propose separately to under Section 19(b) of the Act. The Exchange that has the ability to trade replace the term ‘‘member’’ throughout Exchange would announce in a circular would be eligible to receive a Trading its rules with the term ‘‘Trading Permit any limitation or reduction in the 122 Permit. Specifically, provided such Holder.’’ number of Trading Permits it seeks to person submits a post-Restructuring impose. In addition, the Exchange (1) Features of Trading Permits Transaction trading application to the would have the authority, pursuant to a 132 The Exchange would have the Exchange, is in good standing as of rule filing submitted to the Commission the date of the Restructuring authority to issue different types of under Section 19(b) of the Act,129 to Trading Permits that allow holders Transaction, complies with the establish objective standards that must application procedures established by thereof to trade one or more products be met to obtain or renew a Trading the Exchange, and pays any applicable authorized for trading on the Exchange Permit.130 and to act in one or more authorized fees, the Exchange would issue to such person a Trading Permit in respect of: trading functions. Trading Permits 125 See proposed CBOE Rule 3.1(a)(v). The would be for set terms specified by the Exchange would be required to file proposed rule (A) Each membership not subject to an Exchange.123 The Exchange expects changes under Section 19(b) of the Act, 15 U.S.C. effective lease as of the date of the initially to offer Trading Permits for 78s(b), including, as applicable, Section Restructuring Transaction that is owned 19(b)(3)(A)(ii), 15 U.S.C. 78s(b)(3)(A)(ii), to establish by the applicant; (B) each membership terms of one month, three months, and or change the fees for the types of Trading Permits one year, and would announce in a it determines to issue. that is leased as a lessee by the circular the types of permits it has 126 See proposed CBOE Rule 3.1(a)(vii). applicant as of the date of the determined to offer.124 Trading Permits 127 See proposed CBOE Rule 3.1(a)(vi). The Restructuring Transaction; (C) each Exchange would only be permitted to limit or trading permit issued by the Exchange would be subject to such fees and reduce the number of any type of Trading Permit in a manner that complies with Section 6(c)(4) of prior to the Restructuring Transaction 133 otherwise to access the Exchange or its facilities for the Act (15 U.S.C. 78f(c)(4)). See proposed CBOE that is held by the applicant, purposes of trading or reporting transactions or Rule 3.1(a)(vi). The Exchange would retain the provided that in the case of a CBSX transmitting orders or quotations in securities authority to take any action (remedial or otherwise) trading permit, the Exchange would traded on the Exchange, or to engage in other under the Act, the Bylaws, and the Rules. For activities that, under CBOE rules, may only be example, the Exchange would continue to have the issue a Trading Permit in respect of the engaged in by holders of Trading Permits, provided authority to take disciplinary action against a CBSX trading permit that only provides that the holder or the holder’s nominee, as person over which the Exchange has jurisdiction. the right to effect transactions on the applicable, satisfies any applicable qualification See proposed CBOE Rule 3.1(a)(ix). CBSX; 134 and (D) each Temporary requirements to exercise those rights. As noted in a letter submitted by the Exchange 119 See proposed Section 1.1(f) of the CBOE to the Commission in connection with SR–CBOE– Bylaws (defining Trading Permit Holder) and 2006–106, CBOE has been unable to locate records would eliminate or restrict the Exchange’s authority proposed CBOE Rule 1.1(gg) (defining Trading that reflect with certainty the number of CBOE to delist any product or to take any action under Permit Holder). A ‘‘Trading Permit Holder’’ could be memberships on May 1, 1975. See Letter from the Act, the Bylaws and the Rules. See proposed an individual, corporation, partnership, limited Joanne Moffic-Silver, Executive Vice President, CBOE Rule 3.1(a)(ix). liability company, or other entity authorized by the General Counsel and Corporate Secretary, CBOE, to 131 See proposed CBOE Rule 3.1(d)(ii). CBOE rules to hold a permit. Richard Holley III, Senior Special Counsel, Division 132 See proposed CBOE Rule 3.1A(a). 120 15 U.S.C. 78c(a)(3)(A). As described in Section of Market Regulation, Commission, dated November 133 See Securities Exchange Act Release No. II.C.2 above (Nomination and Election of Directors), 2, 2007 (http://www.sec.gov/comments/sr-cboe– 58178 (July 17, 2008), 73 FR 42634 (July 22, 2008) the selection process for Representative Directors 2006-106/cboe2006106-161.pdf). The closest date to (SR–CBOE–2008–40) (approving issuance of 50 for the CBOE Board addresses the fair May 1, 1975 for which CBOE has been able to locate Interim Trading Permits ‘‘ITPs’’). Pursuant to Rule representation requirement for members contained records that CBOE believes can be relied upon to 3.27, the Exchange was authorized to issue ITPs to in Section 6(b)(3) of the Act. 15 U.S.C. 78f(b)(3). See establish this information is June 30, 1975. address the demand for trading access to the also supra note 39 (defining ‘‘Trading Permit Specifically, CBOE has financial statements as of Exchange to the extent that a shortage exists from Holder’’). June 30, 1975, the end of its then fiscal year, which time to time in the number of transferable Exchange 121 See proposed CBOE Rule 3.1(a)(iii). set forth this information as of that date. The memberships available for lease. 122 This change will cause a significant number of number of CBOE memberships on June 30, 1975 134 CBOE Rule 3.26, which currently provides for the Exchange’s rules to be amended. The Exchange was 1,025. the issuance of CBSX trading permits, would be intends to submit a separate filing to change the 128 15 U.S.C. 78s(b). deleted as part of this rule filing because all Trading term ‘‘member’’ to ‘‘Trading Permit Holder’’ in the 129 15 U.S.C. 78s(b). Permits after the Restructuring Transaction would remainder of its rules and forms, as well as to make 130 See proposed CBOE Rule 3.1(a)(viii). Rule 3.1 be issued under proposed CBOE Rule 3.1. For the certain other related conforming changes. provides that notwithstanding Rule 3.1 and Rule same reason, CBOE Rule 3.27, which currently 123 See proposed CBOE Rule 3.1(a)(iv). 3.1A (which addresses the issuance of Trading provides for the issuance of Interim Trading 124 See Notice, supra note 4, 73 FR at 51663. Permits to current members) nothing in those rules Permits, also would be deleted.

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Membership held pursuant to demand for such permits, in which case to that member such tier appointment, Interpretation and Policy .02 of CBOE permits would be made available provided that the Exchange is notified Rule 3.19.135 Trading Permits also through the order in time process.140 of that member’s desire to hold such a would be available, pursuant to an The Exchange would automatically tier appointment.149 Tier appointments application process, to persons seeking renew a Trading Permit for the same would be in addition to the current trading access to the Exchange for the term as the expiring term,141 unless, appointment cost process set forth in first time, as well as persons seeking to with advance notice to the Exchange CBOE Rule 8.3, which would remain obtain additional Trading Permits. and in a form and manner prescribed by unchanged.150 Persons who are issued Trading the Exchange, the holder seeks to Market-makers would be required to Permits as set forth above would have terminate the permit 142 or seeks to designate a Trading Permit with which the ability pursuant to those Trading change the type of Trading Permit a tier appointment would be associated Permits to continue trading any product, held.143 and could designate no more than one and acting in any trading function, that The Commission finds that the tier appointment per Trading Permit.151 those persons traded, or acted in, at the proposed CBOE rules governing the Tier appointments would be for the time of the Restructuring nature and issuance of Trading Permits same term as the Trading Permit with Transaction.136 are consistent with the Act, including which the tier appointment is The Exchange would have the ability Section 6(b)(2) of the Act,144 which associated. Termination, change, to issue one or more types of Trading requires that a national securities renewal, and transfer of tier Permits through either a random lottery exchange have rules that provide that appointments would be subject to the process or an order in time process.137 any registered broker or dealer may same terms and conditions as the In connection with an issuance of such become a member and any person may processes for Trading Permits.152 The Trading Permits, a Qualified Person 138 become associated with an exchange Exchange would have the authority to and any affiliated Qualified Person member.145 The Commission notes that establish, increase, limit, or reduce the would be eligible to receive no more pursuant to Section 6(c) of the Act,146 number of a type of tier appointment than the greater of 10 such Trading an exchange must deny membership to and to establish objective standards for Permits or 20% of the number of non-registered broker-dealers and a market-maker to be issued, or to have Trading Permits issued at any given registered broker-dealers that do not renewed, a particular type of tier time.139 This limit, however, would not satisfy certain standards, such as appointment.153 Tier appointments apply in the event the number of financial responsibility or operational would be subject to such fees and permits to be issued exceeds the capacity. charges as are established by the Exchange from time to time.154 135 A person who was eligible to receive Trading (3) Tier Appointments Permit(s) pursuant to any of these provisions but The Exchange has proposed a new 149 See proposed CBOE 3.1A(b). who failed to comply with the application or other type of appointment called a ‘‘tier 150 In general, under that process, the number of requirements must submit an application for a new ’’ memberships owned or leased by a market-maker Trading Permit and must go through the approval appointment for a market-maker serves as the basis for determining the number/ process to hold a Trading Permit. See proposed seeking to trade one or more options types of options classes that the market-maker can CBOE Rule 3.1A(c). classes.147 Tier appointments would be trade. In this regard, each membership held by a 136 This guarantee is subject to Rule 3.1(a)(iv), subject to an application process similar market-maker has an appointment credit of 1.0, and which provides that nothing in Rules 3.1 or 3.1A each option listed on the Exchange has an assigned would eliminate or restrict the Exchange’s authority to the process applicable for Trading appointment cost. Under that process, for example, to delist any product or to take any action (remedial Permits (i.e., the random lottery or order a market-maker with one membership could trade or otherwise) under the Act, the Bylaws, and the in time processes).148 Notwithstanding options on the Nasdaq 100 Index, which has an Rules, including without limitation the Exchange’s this application requirement, in the appointment cost of .50, and options on the CBOE authority to take disciplinary or market Volatility Index, which also has an appointment performance actions against a person with respect event a current member of the Exchange cost of .50. See Notice, supra note 4, 73 FR at to which the Exchange has jurisdiction under the at the time of the Restructuring 51665. Act, the Bylaws, and the Rules. See supra note 130. Transaction is trading an options class 151 See proposed CBOE Rule 8.3(e). In addition, this guarantee is subject to the with respect to which the Exchange is 152 For example, if a holder of a tier appointment continuing satisfaction of any applicable establishing a tier appointment, the does not notify the Exchange that the holder wants qualification requirements, as well as to the to terminate that tier appointment and does not file Exchange’s ability discussed above to limit or Exchange in connection with the an application to replace that tier appointment, that reduce the number of any type of Trading Permit Restructuring Transaction would issue tier appointment would be renewed along with its pursuant to a rule filing with the Commission. See associated Trading Permit for the same term as the proposed CBOE Rules 3.1A(a) and 3.1(a)(vi). 140 See id. expiring term of that Trading Permit. 137 See proposed CBOE Rule 3.1(b)(iii). The 153 141 See proposed CBOE Rule 3.1(c)(iii). In See proposed Rule 8.3 that provides that Exchange also would have the authority to modify renewing a Trading Permit, the Exchange would notwithstanding the rule, nothing therein would these processes or to establish any other objective have the authority to issue one or more Trading eliminate or restrict the Exchange’s authority to process to issue Trading Permits pursuant to a rule Permits that represent the same or more trading delist any product or to take any action under the filing submitted to the Commission under Section right(s) as the expiring permit. See proposed CBOE Act, the Bylaws and the Rules. The application 19(b) of the Act (15 U.S.C. 78s(b)). Rule 3.1(c)(ii). To the extent the Exchange process and issuance of tier appointments as The Exchange in its discretion may maintain a determines to issue one or more Trading Permits specified in Rule 8.3 would be in accordance with, waiting list to be used to issue Trading Permits that represent the same or more trading right(s) as and subject to the same terms and conditions as, the pursuant to the order in time process. See proposed an expiring Trading Permit, the Exchange would issuance process set forth for Trading Permits in CBOE Rule 3.1(b)(ii). If the Exchange maintains a provide all holders of that type of expiring Trading Rule 3.1(b). Termination, change, renewal, and waiting list, Qualified Persons would be placed on Permit with the new Trading Permit(s). transfer of tier appointments would be in that waiting list based on the order in time that such 142 See proposed CBOE Rule 3.1(c)(i). accordance with, and subject to the same terms and persons submitted applications, and such persons conditions as, the process set forth for Trading 143 See proposed CBOE Rule 3.1(c)(ii). may at any time voluntarily withdraw from that Permits in Rule 3.1(c) and (d). If it seeks to limit 144 waiting list. A person on the waiting list would be 15 U.S.C. 78f(b)(2). or reduce the number of a type of tier appointment, permitted to adjust the number of Trading Permits 145 See, e.g., BATS Exchange Registration Order or establish other objective standards governing that such person would like to receive at any time and Nasdaq Exchange Registration Order, supra, issuance and/or renewal of a particular type of tier prior to an announcement of an issuance of such note 78, 73 FR at 59502 and 71 FR at 3555, appointment, the Exchange first would need to file Trading Permits. respectively. with the Commission a proposed rule change under 138 See proposed CBOE Rule 8.1(b)(i) (defining 146 15 U.S.C. 78f(c). Section 19(b) of the Act, 15 U.S.C. 78s(b). Qualified Person). 147 See proposed CBOE Rule 8.3. 154 The Exchange would be required to file 139 See proposed CBOE Rule 3.1(b)(iii). 148 See proposed CBOE Rule 8.3(e). proposed rule changes under Section 19(b) of the

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The Commission finds that the clarifying the manner of appointment to Trading Permits without changing the proposed CBOE rules governing tier such committees to reflect the fact that substance of these rules.166 In addition, appointments are consistent with the the Vice Chairman of the Board, with the process for designating nominees for Act, including Section 6(b)(2) of the the approval of the CBOE Board, would Trading Permits in CBOE Rule 3.8 Act,155 which requires that a national appoint the chairmen and members of would be amended to require an securities exchange have rules that committees (other than the BCC) 158 organization to designate as its nominee provide that any registered broker or unless otherwise provided by the rules an associated person who is an dealer may become a member. In of CBOE or by the CBOE Board.159 individual holder of a Trading particular, the proposal would preserve CBOE has also proposed to streamline Permit.167 Further, the Exchange the existing appointments of current the process for filling vacancies on proposes to streamline the process of CBOE market-makers, and any new or Exchange committees (other than the designating nominees for organizations expanded tier appointments would be BCC) 160 and would provide that a that have multiple Trading Permits in allocated in accordance with, and majority would generally constitute a their name. As modified, CBOE Rule subject to the same terms and quorum for committee meetings.161 The 3.8(a)(ii) would allow organizations to conditions as, the issuance process set proposed revision would also clarify designate the same individual to be the forth for Trading Permits in Rule 3.1(b). that committees could take all types of nominee for Trading Permits held in its To the extent the Exchange seeks to actions, not only ‘‘informal’’ actions, name, including Trading Permits used limit or reduce any type of tier pursuant to written consent.162 for trading in open outcry on the trading appointment, the Commission notes that Further, CBOE has proposed to clarify floor.168 the Exchange would need to do so in an certain aspects of the authority of the The Exchange also is deleting the equitable and not unfairly CBOE Board over committees, including requirement in CBOE Rule 3.7(g) that a discriminatory manner and file any a clarification that the CBOE Board may member keep and maintain a current such proposal with the Commission delegate powers and duties to the copy of the CBOE Constitution and rules pursuant to Section 19 of the Act. committees and that each Exchange in a readily accessible place and committee is subject to the control and available for examination by customers. F. Other Changes to the Rules supervision of the CBOE Board.163 CBOE believes that, because it is (1) Chapter I of the Rules CBOE proposed to clarify that the CBOE required to maintain a copy of its The Exchange has proposed amended Board has the authority to review, governing documents and rules online, modify, suspend, or overrule any and all this requirement is no longer definitions in Chapter I to reflect the use 169 of Trading Permits.156 The Exchange actions of any committee, officer, necessary. Finally, the Exchange is also proposed a definition of its new representative, or designee of the amending CBOE Rule 3.9 to, among ‘‘TPH Department,’’ 157 which would Exchange taken pursuant to the rules in other things, delete the requirement that accordance with any applicable review the Exchange post notices of serve as the successor to CBOE’s 164 Membership Department and would procedures specified in the rules. applications on the Exchange Bulletin continue the functions of that Finally, CBOE proposed conforming 166 department, such as processing changes to the rules in Chapter II to For example, rules relating to the sale, reflect the use of the term Trading transfer, and lease of memberships, and to the applications for Trading Permits. The 165 member death benefit would be deleted, because Commission finds the proposed changes Permits. they would not be applicable to Trading Permits. The Commission finds that the to Chapter I of CBOE’s rules to be See, e.g., CBOE Rules 3.12–3.15. CBOE Rules 3.24 proposed changes to Chapter II of (regarding member death benefit) and 3.25 consistent with the Act as they are CBOE’s rules are consistent with the Act (regarding transfer of memberships in trust) would necessary to update the terms used in in that they clarify the operation of also be deleted. In addition, CBOE Rule 3.1, which the rules and would assist Trading was designed to, among other things, ensure that Exchange committees and the authority Permit Holders and the public in memberships were used for trading on the of the CBOE Board and also update the Exchange, would be replaced with a new version understanding the application and terms used in the rules to reflect the as this requirement would not be necessary in the scope of CBOE’s rules. context of Trading Permits that, unlike proposed Restructuring Transaction, memberships, are directly linked to having a (2) Chapter II of the Rules therein clarifying the application and trading function on the Exchange. Other conforming CBOE has proposed several clarifying scope of CBOE’s rules. changes are being proposed to CBOE Rules 3.2 and 3.3 (relating to the qualifications to be a member or amendments to CBOE Rule 2.1, (3) Chapter III of the Rules member organization, and the application process including limiting its scope to Exchange CBOE has proposed conforming to become a member; 3.5 (relating to the authority committees (i.e., committees that are not of the Exchange to deny or condition persons from changes to certain rules in Chapter III to solely composed of CBOE directors) and becoming or being associated with Trading Permit reflect the change from memberships to Holders); 3.18 (regarding statutory disqualification); and Rule 3.10 (regarding status of Trading Permit Act, 15 U.S.C. 78s(b), including, as applicable, Holders). 158 After the Restructuring Transaction, the Section 19(b)(3)(A)(ii), 15 U.S.C. 78s(b)(3)(A)(ii), to 167 President, with approval of the Board, would See CBOE Rule 3.8(a). References to establish and change the fees for the types of registering a membership for a member organization Trading Permits it has determined to issue. continue to have the authority to appoint members to the Business Conduct Committee. See proposed would be deleted because that concept would have 155 15 U.S.C. 78f(b)(2). CBOE Rules 2.1(a). See also Notice, supra note 4, no application once Trading Permits are used to 156 For example, the Exchange proposed to delete 73 FR at 51666. provide trading access to the Exchange. See the terms ‘‘Lessor’’ and ‘‘Lessee’’ (since these proposed CBOE Rule 3.8. The Exchange also would 159 See proposed CBOE Rule 2.1(a). concepts would not exist after the Restructuring make this change to other rules in Chapters I–III 160 Transaction) and added proposed definitions of See id. and to CBOE Rule 8.3. See Notice, supra note 4, 73 ‘‘person,’’ ‘‘Trading Permit,’’ and ‘‘Trading Permit 161 See proposed CBOE Rule 2.1(b). FR at 51667, n.180. Holder.’’ See proposed CBOE Rules 1.1(ff) and (gg). 162 See proposed CBOE Rule 2.1(b). 168 Under the existing rule, a member A ‘‘person’’ would be defined as an individual, 163 See proposed CBOE Rules 2.1(d) and 2.1(e). organization that has multiple memberships in its partnership (general or limited), joint stock 164 See proposed CBOE Rule 2.2. name can designate the same individual to be the company, corporation, limited liability company, 165 For example, references to the term ‘‘dues’’ nominee for those memberships, except that for trust or unincorporated organization, or any have been deleted in CBOE Rules 2.20, 2.22, and each membership used for trading in open outcry governmental entity or agency or political 2.23 because this term generally refers to payments on the trading floor, the member organization must subdivision thereof. made by members in a membership organization. designate a different individual to be the nominee 157 See proposed CBOE Rule 1.1(iii) (defining This change also has been made to other rules in for each of those memberships. TPH Department). Chapters I–III. See, e.g., CBOE Rule 1.1(jj). 169 See Notice, supra note 4, 73 FR at 51667.

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Board, as it believes that use of a Commission finds good cause for for one year the date of the first annual physical bulletin board at the Exchange approving the proposal, as modified by meeting of CBOE stockholders, and thus to notify persons is outdated in the era Amendment No. 1, prior to the thirtieth the first election of post-Restructuring of electronic and remote trading.170 day after publishing notice of Transaction directors; (3) modify the Amendment No. 1 in the Federal ‘‘for cause’’ removal standard applicable G. Request for Commission Approval Register.172 to directors in light of the change to one- Under Section 15.16 of the CBSX In Amendment No. 1, CBOE proposed year terms for directors; (4) delete the Operating Agreement the following modifications to the requirement that at least one director on Under the CBSX Operating proposed CBOE Holdings governing the CBOE Compensation Committee be Agreement, CBOE is defined as one of documents: (1) Issuance of a single class the beneficial owner of CBOE Holdings the ‘‘Owners’’ of CBSX. Section 15.16 of of common stock of CBOE Holdings, stock; (5) change the requisite number of the CBSX Operating Agreement rather than different series of common directors on the Regulatory Oversight provides that, in the event that a person stock as was originally proposed; (2) Committee from four to three; (6) revise acquires a 25% or greater interest in an minor revisions to the transfer the provision dealing with the duties Owner that owns a 20% or greater restrictions on common stock; (3) and powers of the CBOE Treasurer to interest in CBSX, that person must incorporation of the term ‘‘Regulated make the provision the same as a similar execute an amendment to the Operating Securities Exchange Subsidiary,’’ rather provision set forth in the CBOE Agreement in which that person agrees than ‘‘CBOE,’’ to accommodate the Holdings corporate documents; and (7) to be a party to the Operating Agreement potential future ownership of more than correct non-substantive typographical and to abide by all of the provisions of one national securities exchange by errors. the Operating Agreement. Section 15.16 CBOE Holdings; (4) requiring that shares Finally, Amendment No. 1 seeks to also provides that Commission approval of stock issued in connection with the make the following changes to the under Section 19 of the Act is required Restructuring Transaction be recorded proposed CBOE Rules: (1) Adopt a rule in connection with such an amendment on the books and records of CBOE governing the permissible uses of to the Operating Agreement.171 Because Holdings only in the name of the owner regulatory revenues; and (2) make CBOE owns a 50% interest in CBSX, the of the shares to ensure compliance with certain changes to reflect intervening establishment of CBOE Holdings as the the transfer restrictions; (5) changes to proposed rule changes that have been sole shareholder of CBOE would trigger the size of the CBOE Holdings Board submitted since CBOE filed its proposal. and term of its Directors; (6) defer for this Commission approval requirement. The Commission believes that the one year the date of the first annual Consistent with this requirement in changes contained in Amendment No. 1 meeting of CBOE Holdings stockholders, Section 15.16 of the CBSX Operating are consistent with the Act. The and thus the first election of post- Agreement, CBOE has requested as part Commission notes that the changes Restructuring Transaction directors; (7) of this proposed rule change that the proposed in Amendment No. 1 are changes to the content of the notice Commission provide such approval. either not material or are otherwise stockholders must submit in connection The provision in the CBSX Operating responsive to the concerns of the with director nominations or Agreement requiring Commission Commission and do not raise any approval of an amendment to the CBSX stockholder requests to bring matters before the annual stockholder meeting; regulatory concerns. In addition, the Operating Agreement to effectuate a Commission notes that the initial change in control was designed to (8) the ability to set separate record dates for stockholder notice of a proposed rule change was published for involve the Commission and CBOE in comment with a comment period assessing the potential conflicts of stockholder meeting and for voting purposes; (9) specify that two-thirds of ending on September 25, 2008 and the control that could arise. In the case of Commission did not receive any the Restructuring Transaction, CBOE CBOE Holdings directors must satisfy the independence requirements comments on the proposal. Accordingly, would become wholly-owned by CBOE the Commission finds that good cause Holdings. However, as discussed in contained in the listing standards of either NYSE or The Nasdaq Stock exists for approving the proposed rule detail above, CBOE Holdings would be change, as amended, on an accelerated subject to a number of conditions Market; (10) modify the ‘‘for cause’’ removal standard applicable to directors basis, pursuant to Section 19(b)(2) of the designed to protect the regulatory Act.173 independence of CBOE in recognition of in light of the change to one-year terms its status as an SRO. Accordingly, the for directors; (11) delete the requirement III. Solicitation of Comments Commission finds that the amendment that at least one director on the CBOE Holdings Compensation Committee be Interested persons are invited to to the CBSX Operating Agreement with submit written data, views, and respect to the change in control of CBOE the beneficial owner of CBOE Holdings stock; (12) changes to the size of the arguments concerning Amendment No. in connection with the Restructuring 1, including whether Amendment No. 1 Transaction is consistent with the Act. CBOE Holdings Nominating and Governance Committee; and (13) make is consistent with the Act. Comments H. Accelerated Approval certain technical, non-substantive may be submitted by any of the following methods: CBOE has asked the Commission to wording changes. grant accelerated approval of the In addition, Amendment No. 1 Electronic Comments proposal, as modified by Amendment proposes the following changes to the • Use the Commission’s Internet No. 1. As set forth below, the proposed CBOE governing documents: (1) Changes to the size of the CBOE comment form (http://www.sec.gov/ 170 Board and term of its Directors; (2) defer rules/sro.shtml); or The information would continue to be • published in the electronic Exchange Bulletin. See Send an e-mail to rule- CBOE Rule 3.9(e). The Exchange also would post 172 15 U.S.C. 78s(b)(2). Pursuant to Section [email protected]. Please include File notices of the effectiveness of Trading Permit 19(b)(2) of the Act, the Commission may not Number SR–CBOE–2008–88 on the Holder status or approval of a trading function in approve any proposed rule change, or amendment subject line. the Exchange Bulletin. See proposed CBOE Rule thereto, prior to the thirtieth day after the date of 3.11. publication of notice thereof, unless the 171 15 U.S.C. 78s. Commission finds good cause for so doing. 173 15 U.S.C. 78s(b)(2).

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Paper Comments SECURITIES AND EXCHANGE For the Commission, by the Division of COMMISSION Trading and Markets, pursuant to delegated • Send paper comments in triplicate authority.6 to Elizabeth M. Murphy, Secretary, Florence E. Harmon, Securities and Exchange Commission, [Release No. 34–62157; File No. SR– NYSEArca–2010–28] Deputy Secretary. 100 F Street, NE., Washington, DC [FR Doc. 2010–12874 Filed 5–27–10; 8:45 am] 20549–1090. Self-Regulatory Organizations; NYSE BILLING CODE 8010–01–P All submissions should refer to File Arca, Inc.; Order Approving Proposed Number SR–CBOE–2008–88. This file Rule Amending Its Schedule of Fees number should be included on the SECURITIES AND EXCHANGE subject line if e-mail is used. To help the May 24, 2010. COMMISSION Commission process and review your On April 12, 2010, NYSE Arca, Inc. [Release No. 34–62152; File No. SR–ISE– comments more efficiently, please use (‘‘NYSE Arca’’) filed with the Securities 2010–41] only one method. The Commission will and Exchange Commission post all comments on the Commission’s (‘‘Commission’’), pursuant to Section Self-Regulatory Organizations; Internet Web site (http://www.sec.gov/ 19(b)(1) of the Securities Exchange Act International Securities Exchange, rules/sro.shtml). Copies of the of 1934 (‘‘Act’’) 1 and Rule 19b–4 LLC; Notice of Filing and Immediate submission, all subsequent thereunder,2 a proposed rule change to Effectiveness of Proposed Rule amendments, all written statements extend a pilot program capping Change Relating to Professional with respect to the proposed rule transaction fees for strategy executions. Customer Fees change that are filed with the Under this pilot program, strategy May 21, 2010. Commission, and all written executions are capped at $750 per Pursuant to Section 19(b)(1) of the communications relating to the transaction, and $25,000 per month per Securities Exchange Act of 1934 (the proposed rule change between the initiating firm. This proposed rule ‘‘Act’’),1 and Rule 19b–4 thereunder,2 Commission and any person, other than change retroactively extended the notice is hereby given that on May 5, those that may be withheld from the duration of this pilot program from 2010, the International Securities public in accordance with the March 1, 2010 through April 1, 2010. Exchange, LLC (the ‘‘Exchange’’ or the provisions of 5 U.S.C. 552, will be The proposed rule change was ‘‘ISE’’) filed with the Securities and available for Web site viewing and published for comment in the Federal Exchange Commission the proposed printing in the Commission’s Public Register on April 19, 2010.3 The rule change, as described in Items I, II, Reference Room, 100 F Street, NE., Commission received no comments and III below, which items have been Washington, DC 20549, on official regarding the proposal. prepared by the self-regulatory business days between the hours of 10 The Commission has carefully organization. The Commission is a.m. and 3 p.m. Copies of such filing reviewed the proposed rule change and publishing this notice to solicit also will be available for inspection and finds that the proposed rule change is comments on the proposed rule change copying at the principal office of the consistent with the requirements of the from interested persons. CBOE. All comments received will be Act and the rules and regulations posted without change; the Commission I. Self-Regulatory Organization’s thereunder applicable to a national does not edit personal identifying Statement of the Terms of Substance of securities exchange 4 and, in particular, information from submissions. You the Proposed Rule Change Section 6(b)(5) of the Act,5 which should submit only information that requires that an exchange have rules The ISE is proposing to amend its you wish to make available publicly. All designed to prevent fraudulent and Schedule of Fees. The text of the submissions should refer to File manipulative acts and practices, proposed rule change is available on the Number SR–CBOE–2008–88 and should promote just and equitable principles of Exchange’s Web site (http:// be submitted on or before June 18, 2010. trade, foster cooperation and www.ise.com), at the principal office of IV. Conclusion coordination with persons engaged in the Exchange, and at the Commission’s facilitating transactions in securities, Public Reference Room. For the foregoing reasons, the and remove impediments to and perfect II. Self-Regulatory Organization’s Commission finds that the proposed the mechanism of a free and open Statement of the Purpose of, and rule change, as amended, is consistent market and a national market system. Statutory Basis for, the Proposed Rule with the Act and the rules and Specifically, the proposed rule change Change regulations thereunder applicable to a allows the pilot program to continue In its filing with the Commission, the national securities exchange. without interruption from March 1, self-regulatory organization included 2010 through April 1, 2010. It is therefore ordered, pursuant to statements concerning the purpose of, 174 Section 19(b)(2) of the Act, that the It is therefore ordered, pursuant to and basis for, the proposed rule change proposed rule change (SR–CBOE–2008– Section 19(b)(2) of the Act, that the and discussed any comments it received 88), as modified by Amendment No. 1, proposed rule change (SR–NYSEArca– on the proposed rule change. The text be and hereby is approved on an 2010–28) be, and it hereby is, approved. of these statements may be examined at accelerated basis. the places specified in Item IV below. By the Commission. 1 15 U.S.C. 78s(b)(1). The self-regulatory organization has 2 Elizabeth M. Murphy, 17 CFR 240.19b–4. prepared summaries, set forth in 3 See Securities Exchange Act Release No. 61895 Secretary. sections A, B and C below, of the most (April 13, 2010), 75 FR 20417. significant aspects of such statements. [FR Doc. 2010–12936 Filed 5–27–10; 8:45 am] 4 In approving this proposed rule change, the Commission has considered the proposed rule’s BILLING CODE 8010–01–P impact on efficiency, competition, and capital 6 17 CFR 200.30–3(a)(12). formation. See 15 U.S.C. 78c(f). 1 15 U.S.C. 78s(b)(1). 174 15 U.S.C. 78s(b)(2). 5 15 U.S.C. 78f(b)(5). 2 17 CFR 240.19b–4.

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A. Self-Regulatory Organization’s execute orders as a result of posting Exchange has not received any Statement of the Purpose of, and liquidity to ISE’s order book.5 This unsolicited written comments from Statutory Basis for, the Proposed Rule ‘‘maker’’ fee applies only to professional members or other interested parties. Change customer orders, i.e., non-broker/dealer III. Date of Effectiveness of the customer orders; it does not apply to 1. Purpose Proposed Rule Change and Timing for market maker and broker/dealer orders Commission Action ISE proposes to amend its Schedule of who already pay transaction fees under Fees. Specifically, the Exchange the Exchange’s current fee schedule. The foregoing rule change has become proposes to adopt a $0.18 per contract The Exchange now proposes to adopt effective pursuant to Section 19(b)(3) of execution fee for ‘‘professional a $0.18 per contract execution fee for the Act 10 and Rule 19b–4(f)(2) 11 customers’’ who execute orders as a professional customers who execute thereunder. At any time within 60 days result of taking liquidity from ISE’s orders as a result of taking liquidity of the filing of such proposed rule order book. from ISE’s order book.6 The Exchange change, the Commission may summarily ISE rules distinguish between Priority currently has a fee cap for large-size abrogate such rule change if it appears Customer Orders and Professional foreign currency (‘‘FX’’) options orders to the Commission that such action is Orders.3 A Priority Customer is defined where ISE waives the transaction fee on necessary or appropriate in the public in ISE Rule 100(a)(37A) as a person or incremental volume above 5,000 interest, for the protection of investors, entity that is not a broker or dealer in contracts for single-sided FX options or otherwise in furtherance of the securities, and does not place more than orders of at least 5,000 contracts. This purposes of the Act. 390 orders in listed options per day on fee waiver will also apply to IV. Solicitation of Comments average during a calendar month for its professional customer orders. The own beneficial account(s). A Exchange believes that the proposed Interested persons are invited to Professional Order is defined in ISE fees for professional customers will submit written data, views, and Rule 100(a)(37C) as an order that is for allow the Exchange to remain arguments concerning the foregoing, the account of a person or entity that is competitive with other options including whether the proposed rule not a Priority Customer. For purpose of exchanges who apply fees to change is consistent with the Act. this discussion, ‘‘professional professional customers.7 Comments may be submitted by any of the following methods: customers’’ are non-broker/dealer 2. Statutory Basis participants who enter at least 390 The Exchange believes that the Electronic Comments orders per day on average during a • calendar month for their own beneficial proposed rule change is consistent with Use the Commission’s Internet account(s). The level of trading activity the objectives of Section 6 of the comment form (http://www.sec.gov/ 8 by professional customers more Exchange Act, in general, and furthers rules/sro.shtml); or 9 • Send an e-mail to rule- resembles that of market makers and the objectives of Section 6(b)(4), in [email protected]. Please include File proprietary traders on the Exchange particular, in that it is designed to Number SR–ISE–2010–41 on the subject than it does of other customers. provide for the equitable allocation of line. Currently, the primary distinction reasonable dues, fees and other charges between the two types of customers is among its members and other persons Paper Comments using its facilities. In particular, the that Priority Customers are given • Send paper comments in triplicate priority on the order book over proposed rule change will help equalize fees among market makers, proprietary to Elizabeth M. Murphy, Secretary, professional customers. Professional Securities and Exchange Commission, customers are on parity with market traders and professional customers on the Exchange. 100 F Street, NE., Washington, DC makers and broker/dealers. However, 20549–1090. professional customers, until recently, B. Self-Regulatory Organization’s All submissions should refer to File did not pay transaction fees and Statement on Burden on Competition Number SR–ISE–2010–41. This file currently do so on a limited basis. The proposed rule change does not number should be included on the Market makers and broker/dealers on impose any burden on competition that subject line if e-mail is used. To help the the other hand have always paid is not necessary or appropriate in Commission process and review your transaction fees to the Exchange. furtherance of the purposes of the Act. comments more efficiently, please use Specifically, for market makers, the only one method. The Commission will Exchange currently applies a sliding C. Self-Regulatory Organization’s post all comments on the Commission’s scale, between $0.01 and $0.18 per Statement on Comments on the Internet Web site (http://www.sec.gov/ contract side, based on the number of Proposed Rule Change Received From rules/sro.shtml). Copies of the contracts an ISE market maker trades in Members, Participants or Others submission,12 all subsequent a month. Broker/dealer orders currently The Exchange has not solicited, and amendments, all written statements pay a flat execution fee of $0.20 per does not intend to solicit, comments on with respect to the proposed rule traded contract.4 this proposed rule change. The change that are filed with the Earlier this year, the Exchange Commission, and all written adopted a $0.20 per contract execution 5 See Securities Exchange Act Release No. 61434 communications relating to the fee for professional customers who (January 27, 2010), 75 FR 5826 (February 4, 2010). proposed rule change between the 6 Fees charged by the Exchange for professional Commission and any person, other than 3 See Securities Exchange Act Release No. 59287 customer orders are always equal to or less than (Jan. 23, 2009), 74 FR 5694 (Jan. 30, 2009). those charged for broker/dealer orders. 4 The Exchange recently adopted a modified 7 The fees proposed herein do not apply to 10 15 U.S.C. 78s(b)(3)(A). maker/taker pricing program applicable to a select professional customer orders in a select number of 11 17 CFR 240.19b–4(f)(2). number of options classes under which professional options classes that are a part of the modified 12 The text of the proposed rule change is customer orders and broker/dealer orders are maker/taker pricing program recently adopted by available on ISE’s Web site at http://www.ise.com, treated equally. See Securities Exchange Act the Exchange. See supra note 2. on the Commission’s Web site at http:// Release No. 61869 (April 7, 2010), 75 FR 19449 8 15 U.S.C. 78f. www.sec.gov, at ISE, and at the Commission’s (April 14, 2010). 9 15 U.S.C. 78f(b)(4). Public Reference Room.

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those that may be withheld from the Representative determined that concerning procedures for filing public in accordance with the Canada’s failure to implement the submissions in response to this notice. provisions of 5 U.S.C. 552, will be tribunal’s remedy award had the effect SUPPLEMENTARY INFORMATION: available for Web site viewing and of denying U.S. rights under the SLA; printing in the Commission’s Public and, pursuant to Section 301 of the A. Enforcement of U.S. Rights Under Reference Room, 100 F Street, NE., Trade Act, the Trade Representative the SLA Washington, DC 20549, on official imposed 10 percent ad valorem duties For further information concerning business days between the hours of 10 on imports of softwood lumber products U.S. rights under the SLA and the April a.m. and 3 p.m. Copies of the filing also subject to the SLA from the provinces of 2009 action, see Initiation of Section will be available for inspection and Ontario, Quebec, Manitoba, and 302 Investigation, Determination of copying at the principal office of the Saskatchewan (the April 2009 action). Action Under Section 301, and Request ISE. All comments received will be Under the April 2009 action, the duties for Comments: Canada—Compliance posted without change; the Commission are to remain in place until such time With Softwood Lumber Agreement, 74 does not edit personal identifying as the United States collects $54.8 FR 16,436 (April 10, 2009) (notice); 74 information from submissions. You million, the U.S. dollar equivalent of FR 17,276 (April 14, 2009) (annex). should submit only information that CDN $ 68 million at the time. The B. Canada’s Steps Toward Addressing you wish to make available publicly. All Government of Canada, however, is now the Breach of the SLA submissions should refer to File taking steps toward adopting its own Number SR–ISE–2010–41 and should be measure to address Canada’s breach of On March 4, 2010, the Canadian submitted on or before June 18, 2010. the SLA, in the form of legislation Parliament introduced as part of the requiring the collection of an additional Federal budget an amendment to the For the Commission, by the Division of Softwood Lumber Products Export Trading and Markets, pursuant to delegated 10 percent charge on exports from the authority.13 provinces of Ontario, Quebec, Manitoba, Charge Act, 2006. The amendment provides for the collection of an Florence E. Harmon, and Saskatchewan. In the event that the additional export charge of 10 percent Deputy Secretary. proposed bill becomes law by receiving royal assent, and if the Trade on softwood lumber products from the [FR Doc. 2010–12872 Filed 5–27–10; 8:45 am] Representative finds that the law provinces of Ontario, Quebec, Manitoba, BILLING CODE 8010–01–P satisfactorily grants the rights of the and Saskatchewan. The amendment United States under the SLA, the Trade might become law as soon as mid-June Representative may modify or terminate 2010. OFFICE OF THE UNITED STATES the April 2009 action. Interested TRADE REPRESENTATIVE C. Possible Modification or Termination persons are invited to submit comments of April 2009 Action [Docket No. USTR–2010–0015] on the possible modification or The Trade Act authorizes the Trade termination of the April 2009 action. Notice and Request for Comments: Representative to modify or terminate Canada—Compliance With Softwood DATES: To be assured of consideration, an action taken under Section 301 if, Lumber Agreement comments should be submitted by no among other things, ‘‘the foreign country later than 5 p.m. on June 14, 2010, is taking satisfactory measures to grant AGENCY: Office of the United States although USTR will continue to accept the rights of the United States under a Trade Representative. comments after that date. trade agreement.’’ Sections ACTION: Notice and request for public ADDRESSES: Non-confidential comments 301(a)(2)(B)(i) and 307(1)(A). If the comment. (as explained below) should be proposed amendment becomes law, the submitted electronically via the Internet Trade Representative may consider SUMMARY: Under the 2006 Softwood at http://www.regulations.gov, docket whether Canada is taking satisfactory Lumber Agreement (SLA), Canada number USTR–2010–0015. If you are measures to grant the rights of the agreed to impose export measures on unable to provide submissions by United States under the SLA, and if so, Canadian exports of softwood lumber http://www.regulations.gov, please may decide on an appropriate products to the United States. At the contact Sandy McKinzy at (202) 395– modification or termination of the April request of the United States, an arbitral 9483 to arrange for an alternative 2009 action. tribunal established under the SLA method of transmission. If (as explained Pursuant to Section 306(a) of the determined in March 2008 that Canada below) the comments contain Trade Act, if the Trade Representative had breached certain SLA obligations. confidential information, the person finds that the additional 10 percent In February 2009, the tribunal issued a wishing to submit such comments export charge is a satisfactory measure, remedy award requiring Canada to should contact Sandy McKinzy at (202) the Trade Representative will continue collect an additional 10 percent ad 395–9483. to monitor the implementation of such valorem export charge on softwood measure. Pursuant to Section 306(b), if lumber shipments from Ontario, FOR FURTHER INFORMATION CONTACT: John the Trade Representative considers that Quebec, Manitoba, and Saskatchewan, Melle, Deputy Assistant USTR for the Canada is not satisfactorily until an entire amount of CDN $ 68 Americas, (202) 395–3412, or Suzanne implementing the measure, the Trade million has been collected. Canada did Garner, Assistant General Counsel, (202) Representative will determine what not begin collecting the additional 395–3581, for questions concerning the further action to take under Section 301. export charge. In April 2009, the United enforcement of U.S. rights under the States Trade Representative (‘‘Trade SLA; William Busis, Associate General D. Request for Public Comment Representative’’) initiated an Counsel and Chair of the Section 301 The Section 301 Committee invites investigation under Section 302 of the Committee, (202) 395–3150, for comments from interested persons with Trade Act of 1974, as amended (‘‘Trade questions concerning procedures under respect to the possible modification or Act’’). In that investigation, the Trade Section 301; or Gwendolyn Diggs, Staff termination of the April 2009 action in Assistant to the Section 301 Committee, the event the Government of Canada 13 17 CFR 200.30–3(a)(12). (202) 395–5830, for questions adopts a law imposing an additional 10

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percent export charge on softwood confidential information should contact 2701, 1200 New Jersey Avenue, SE., lumber from the provinces of Ontario, Sandy McKinzy at (202) 395–9483. W46–490, Washington, DC 20590. Quebec, Manitoba, and Saskatchewan. Information or advice contained in a SUPPLEMENTARY INFORMATION: This request includes comments on the comment submitted, other than business appropriate methodology for confidential information, may be National Highway Traffic Safety transitioning from the current U.S.- determined by USTR to be confidential Administration collected 10 percent duties to the 10 in accordance with section 135(g)(2) of Title: 23 CFR, Part 1350, Certificate percent export charge to be collected by the Trade Act of 1974 (19 U.S.C. Requirements for Section 2010 the Government of Canada. 2155(g)(2)). If the submitter believes that Motorcyclist Safety Grant Program. To submit comments via http:// information or advice may qualify as OMB Number: 2127–0650. www.regulations.gov, enter docket such, the submitter— number USTR–2010–0015 on the home (1) Must clearly so designate the Type of Request: Extension to a page and click ‘‘Search’’. The site will information or advice; previously approved collection of provide a search-results page listing all (2) Must clearly mark the material as information. documents associated with this docket. ‘‘SUBMITTED IN CONFIDENCE’’ at the Abstract: A motorcyclist safety If this notice is not listed on the search- top and bottom of the cover page and incentive grant is available to help results page, find a reference to this each succeeding page; and States enhance motorcyclist safety notice by selecting ‘‘Notice’’ under (3) Must provide a non-confidential training and motorcyclist awareness ‘‘Document Type.’’ Upon locating a summary of the information or advice. programs. To qualify for a first year reference to this notice, click on the link The non-confidential summary will grant under the grant program, a State entitled ‘‘Submit Comment.’’ be placed in the docket and open to must demonstrate that it has satisfied The www.regulations.gov site public inspection. Comments submitted one of six criteria: (1) Statewide provides the option of providing in confidence should not be submitted motorcycle rider training course, (2) comments by filling in a comments via the www.regulations.gov Web site. statewide motorcyclists awareness field, or by attaching a document. Given Instead, persons wishing to submit such program, (3) reduction of fatalities and the detailed nature of the comments comments should contact Sandy crashes involving motorcycles, (4) sought by the Section 301 Committee, McKinzy at (202) 395–9483. statewide impaired driving program, (5) all comments should be provided in an reduction of fatalities and accidents attached document. Submissions must William L. Busis, involving impaired motorcyclists, and state clearly the position taken and Chair, Section 301 Committee. (6) use of fees collected from describe with specificity the supporting [FR Doc. 2010–12951 Filed 5–27–10; 8:45 am] motorcyclists for motorcycle programs. rationale and must be written in BILLING CODE 3190–W0–P In second and subsequent fiscal years, a English. After attaching the document, it State must demonstrate that it has is sufficient to type ‘‘See attached’’ in the satisfied at least two of six criteria. comments field. Affected Public: The 50 States, the Comments will be placed in the DEPARTMENT OF TRANSPORTATION District of Columbia, and Puerto Rico. docket and open to public inspection pursuant to 15 CFR 2006.13, except National Highway Traffic Safety Estimated Total Annual Burden: 1560 confidential business information Administration hours. exempt from public inspection in ADDRESSES: Send comments, within 30 accordance with 15 CFR 2006.15 or Reports, Forms and RecordKeeping days, to the Office of Information and information determined by USTR to be Requirements; Agency Information Regulatory Affairs, Office of confidential in accordance with 19 Collection Activity Under OMB Review Management and Budget, 725–17th U.S.C. 2155(g)(2). Comments may be AGENCY: National Highway Traffic Street, NW., Washington, DC 20503, viewed on the http:// Safety Administration, DOT. Attention NHTSA Desk Officer. www.regulations.gov Web site by ACTION: Notice. Comments are invited on: whether the entering docket number USTR–2010– proposed collection of information is 0015 in the search field on the home SUMMARY: In compliance with the necessary for the proper performance of page. Paperwork Reduction Act of 1995 (44 the functions of the Department, Persons wishing to submit business U.S.C. 3501 et seq.), this notice including whether the information will confidential information must certify in announces that the Information have practical utility; the accuracy of writing that such information is Collection Request (ICR) abstracted the Department’s estimate of the burden confidential in accordance with 15 CFR below has been forwarded to the Office of the proposed information collection; 2006.15(b), and such information must of Management and Budget (OMB) for ways to enhance the quality, utility and be clearly marked ‘‘BUSINESS review and comment. The ICR describes clarity of the information to be CONFIDENTIAL’’ at the top and bottom the nature of the information collections collected; and ways to minimize the of the cover page and each succeeding and their expected burden. The Federal burden of the collection of information page. Any comment containing business Register Notice with a 60-day comment on respondents, including the use of confidential information must be period was published on March 23, automated collection techniques or accompanied by a non-confidential 2010, Vol. 75, No. 55, Pages 13806– other forms of information technology. summary of the confidential 13807. A Comment to OMB is most effective if information. The non-confidential OMB receives it within 30 days of DATES: Comments must be submitted on summary will be placed in the docket publication. and open to public inspection. or before June 28, 2010. Comments containing business FOR FURTHER INFORMATION CONTACT: Marlene Markison, confidential information should not be Tamara Webster at the National Associate Administrator, Regional Operations submitted via the www.regulations.gov Highway Traffic Safety Administration, and Program Delivery. Web site. Instead, persons wishing to Office of Regional Operations and [FR Doc. 2010–12971 Filed 5–27–10; 8:45 am] submit comments containing business Program Delivery (NTI–200), 202–366– BILLING CODE P

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DEPARTMENT OF TRANSPORTATION Pipeline Operators: Hazardous Liquid ACTION: List of Applications for Annual Report. Modification of Special Permits Pipeline and Hazardous Materials OMB Control Number: 2137–0614. SUMMARY: In accordance with the Safety Administration Type of Request: Renewal of a procedures governing the application currently approved information [Docket No. PHMSA–2010–0088] for, and the processing of, special collection. permits from the Department of Pipeline Safety: Information Collection Abstract: Operators of hazardous Activities Transportation’s Hazardous Material liquid pipelines must prepare and file Regulations (49 CFR Part 107, Subpart AGENCY: Pipeline and Hazardous annual reports regarding the condition B), notice is hereby given that the Office Materials Safety Administration, DOT. of their systems. The data provides the of Hazardous Materials Safety has basis for more efficient and meaningful ACTION: Notice. received the applications described analyses of the safety status of herein. This notice is abbreviated to SUMMARY: In compliance with the hazardous liquid pipelines. PHMSA expedite docketing and public notice. Paperwork Reduction Act, PHMSA uses the information to compile a Because the sections affected, modes of announces that the currently approved national pipeline inventory, identify transportation, and the nature of Information Collection Request (OMB and determine the scope of safety application have been shown in earlier Control No. 2137–0614) abstracted problems, and target inspections. Federal Register publications, they are below, is being forwarded to the Office Affected Public: Operators of not repeated here. Requests for of Management and Budget (OMB) for hazardous liquid pipelines. modification of special permits (e.g. to renewal and approval. Estimated Number of Responses: 447. provide for additional hazardous DATES: Written comments should be Estimated Total Annual Burden materials, packaging design changes, submitted by June 28, 2010. Hours: 5,364 hours. additional mode of transportation, etc.) ADDRESSES: Comments should identify Frequency of Collection: Annual. are described in footnotes to the the associated OMB Approval Number It should be noted that this application number. Application ‘‘2137–0614’’ Docket ‘‘PHMSA–2010– information collection, which includes numbers with the suffix ‘‘M’’ denote a 0088’’ and be sent to OMB by any of the the Hazardous Liquid Annual Report modification request. These following methods: (PHMSA F 7000–1), is being revised in applications have been separated from • Fax: 1–202–395–6566. ATTN: Desk a rulemaking titled: ‘‘Pipeline Safety: the new application for special permits Officer for U.S. Department of Updates to Pipeline and Liquefied to facilitate processing. Transportation (DOT). • Natural Gas Reporting Requirements DATES: Comments must be received on Mail: Office of Information and (One Rule)’’. The Notice of Proposed or before June 14, 2010. Regulatory Affairs (OIRA), OMB, 726 Rulemaking for the One Rule was ADDRESSES: Address Comments To: Jackson Place, NW., Washington, DC published in the Federal Register on 20503, ATTN: Desk Officer for DOT. Record Center, Pipeline and Hazardous • July 2, 2009, (74 FR 31675) and Materials Safety Administration, U.S. E-mail: OIRA, OMB, at the comments were submitted to Docket No. following address: Department of Transportation, _ PHMSA–2008–0291. The purpose of Washington, DC 20590. oira [email protected]. ATTN: this notice is only for an extension of Desk Officer for DOT. Comments should refer to the the currently approved referenced application number and be submitted in FOR FURTHER INFORMATION CONTACT: information collection with no triplicate. If confirmation of receipt of Cameron Satterthwaite, Transportation revisions. comments is desired, include a self- Regulations Specialist, 202–366–1319. Issued in Washington, DC, on May 26, addressed stamped postcard showing SUPPLEMENTARY INFORMATION: In 2010. the special permit number. compliance with the Paperwork Jeffrey D. Wiese, Reduction Act, PHMSA will be FOR FURTHER INFORMATION CONTACT: forwarding the Information Collection Associate Administrator for Pipeline Safety. Copies of the applications are available Request titled: ‘‘Pipeline Safety: New [FR Doc. 2010–13017 Filed 5–27–10; 8:45 am] for inspection in the Records Center, Reporting Requirements for Hazardous BILLING CODE 4910–60–P East Building, PHH–30, 1200 New Liquid Pipeline Operators: Hazardous Jersey Avenue Southeast, Washington Liquid Annual Report’’ (OMB Control DC or at http://regulations.gov. No. 2137–0614), to OMB for renewal DEPARTMENT OF TRANSPORTATION This notice of receipt of applications and approval for another three years. for modification of special permit is Pipeline and Hazardous Materials published in accordance with Part 107 Earlier, a Federal Register Notice with Safety Administration a 60-day comment period was published of the Federal hazardous materials transportation law (49 U.S.C. 5117(b); March 23, 2010, (75 FR 13807). The Office of Hazardous Materials Safety; 49 CFR 1.53(b)). agency did not receive any comments. Notice of Applications for Modification The information collection is specified of Special Permit Issued in Washington, DC on May 20, as follows: 2010. Title of Information Collection: AGENCY: Pipeline and Hazardous Delmer F. Billings, Pipeline Safety: New Reporting Materials Safety Administration Director, Office of Hazardous Materials, Requirements for Hazardous Liquid (PHMSA), DOT. Special Permits and Approvals.

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Application No. Docket No. Applicant Regulation(s) affected Nature of special permit thereof

Modification Special Permits

10407–M ...... Thermo Process In- 49 CFR 173.302a(a); ...... To modify the special permit to authorize struments, LP the addition of Boron trifluoride. 175.3 (Former Grantee: Thermo Measure Tech), Sugar Land, TX 10646–M ...... Schlumberger Tech- 49 CFR 173.302 ...... To modify the special to authorize addi- nologies Corpora- tional Division 2.1 and 2.3 hazardous tion, Sugar Land, materials. TX 10785–M ...... Thermo Process In- 49 CFR 173.301(a)(1), To modify the special permit to authorize struments, LP 173.302a, 175.3. the addition of Boron trifluoride. (Former Grantee: Thermo Measure Tech), Sugar Land, TX 14466–M ...... Alaska Central Ex- 49 CFR 172.101 Column (9B) .. To modify the special permit to authorize press, Inc., An- an additional Division 1.1D hazardous chorage, AK material. 14546–M ...... Linde Gas North 49 CFR 180.209 ...... To modify the special permit to remove the America LLC, Mur- requirement to comply with 49 CFR ray Hill, NJ 172.203(a), marking of shipping papers. 14573–M ...... Polar Tank Trailer, 49 CFR 178.345–2 ...... To modify the special permit to authorize LLC, Holdingford, the use of an alternative duplex stain- MN less steel. 14763–M ...... Weatherford Inter- 49 CFR 173.302a and To modify the special permit to change the national, Forth 173.301(f). minimum elongation from 12% to 10%. Worth, TX 14844–M ...... Northern Air Cargo, 49 CFR 173.302(f) ...... To modify the special permit to authorize Anchorage, AK cylinders of less than 116 cubic feet to be used after June 30, 2010, to include other oxidizing gases and that the human and veterinary use only provision be removed.

[FR Doc. 2010–12717 Filed 5–27–10; 8:45 am] support of the Department of submit proposals can be found at BILLING CODE 4909–60–M Transportation’s Livability Initiative. www.GRANTS.GOV. If interested This announcement is available on parties experience difficulties at any the FTA Web site at: http:// point during the registration or DEPARTMENT OF TRANSPORTATION www.fta.dot.gov. FTA will announce application process, please call the final selections on the Web site and in GRANTS.GOV Customer Support Federal Transit Administration the Federal Register. A synopsis of this Hotline at 1–800–518–4726, Monday– funding opportunity will be posted in Friday from 7 a.m. to 9 p.m. EST. FY 2010 Discretionary Livability the FIND module of the government- FOR FURTHER INFORMATION CONTACT: For Funding Opportunity: Alternatives wide electronic grants Web site at Analysis Program general program information, contact http://www.grants.gov. All proposals Kenneth Cervenka, Alternatives must be submitted to FTA electronically Analysis Program, Office of Planning AGENCY: Federal Transit Administration through the GRANTS.GOVAPPLY (FTA), DOT. and Environment, by phone at (202) function. Applicants will receive two 493–0512 or by e-mail at ACTION: Notice of Availability of FTA confirmation e-mails. The first will [email protected]. A TDD is Alternatives Analysis Funds: confirm that the application was available at 1–800–877–8339 (TDD/ Solicitation of Project Proposals. received and a second will confirm FIRS). within 24–48 hours whether the SUMMARY: The Federal Transit application was validated or rejected by SUPPLEMENTARY INFORMATION: the system. Additional information on Administration (FTA) announces the Table of Contents availability of up to $25.7 million in submitting proposals through the Alternatives Analysis Program discretionary Fiscal Year (FY) 2009 and GRANTS.GOV Web site is provided 2010 funds under the Alternatives later in this announcement. I. Program Purpose Analysis Program (49 U.S.C. 5339) DATES: Complete proposals must be II. Policy Priority—DOT Livability Initiative submitted electronically through the III. Eligible Applicants authorized by the Safe, Accountable, IV. Eligible Projects Flexible, Efficient, Transportation GRANTS.GOV Web site by July 12, V. Cost Sharing and Matching Equity Act: A Legacy For Users 2010. VI. Application Content (SAFETEA–LU), Public Law 109–59, To apply for funding through VII. Evaluation Criteria August 10, 2005. Discretionary program GRANTS.GOV, applicants must be VIII. Technical Assistance and Other Program funds will be distributed in accordance properly registered. Complete Information with the mission of this program and in instructions on how to register and Appendix A FTA Regional Offices

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Alternatives Analysis Program development of communities, providing planning organizations, and local FTA has the authority to implement effective and reliable transportation governmental authorities to conduct this program under SAFETEA–LU alternatives that increase access to jobs, alternatives analyses as defined by amendments to 49 U.S.C. 5339. The recreation, health and social services, section 5309(a)(1). authorizing legislation allows for the entertainment, educational IV. Eligible Projects opportunities, and other activities of Secretary of Transportation to make Alternatives analyses must be awards under this program at his daily life, while also improving mobility within and among these communities. documented in the Unified Planning discretion. FTA may allocate up to Work Program of the metropolitan $25.7 million from available prior year Through various initiatives and legislative changes over the last fifteen planning organization for the area. and FY 2010 funds. These funds will be Applicants must commit to begin the allocated for alternatives analysis years, FTA has allowed and encouraged projects that help integrate transit into alternatives analysis study within 12 activities selected from applications months of grant approval, unless the submitted in response to this notice. a community through neighborhood improvements and enhancements to study is already underway. FTA will I. Program Purpose transit facilities or services; make award available discretionary funding to eligible applicants to conduct an The purpose of the Alternatives improvements to areas adjacent to alternatives analysis or to support Analysis program (49 U.S.C. 5339) is to public transit facilities that may additional technical tasks in an assist potential sponsors of New Starts facilitate mobility needs of transit users; alternatives analysis that will improve and Small Starts projects in the or support other infrastructure and expand the information available to evaluation of all reasonable modal and investments that enhance the use of decision-makers considering major multimodal alternatives and general transit and other alternative transit improvements. FTA will alignment options to address transportation options for the consider proposals for all areas of transportation needs in a defined travel community. technical work that can better develop corridor. On June 16, 2009, U.S. Department of information about the costs and benefits As defined in 49 U.S.C. 5309(1)(a), an Transportation (DOT) Secretary Ray of potential major transit improvements, alternatives analysis is a study LaHood, U.S. Department of Housing including those that might seek New conducted as part of the transportation and Urban Development (HUD) Starts or Small Starts funding. FTA will planning process which includes: (1) An Secretary Shaun Donovan, and U.S. give priority to technical work that assessment of a wide range of public Environmental Protection Agency (EPA) would advance the study of alternatives transportation alternatives designed to Administrator Lisa Jackson announced a that foster the six livability principles address a transportation problem in a new partnership to help American that serve as the foundation for the corridor or subarea; (2) [the families in all communities—rural, DOT–HUD–EPA Partnership for development of] sufficient information suburban and urban—gain better access Sustainable Communities. to enable the Secretary to make the to affordable housing, more findings of project justification and local transportation options, and lower V. Cost Sharing and Matching transportation costs. DOT, HUD, and financial commitment required under Studies or technical tasks selected for Section 5309; (3) the selection of a EPA created this high-level interagency partnership to better coordinate federal funding will receive up to 80 percent of locally preferred alternative; and (4) the the study cost. Awards remain available adoption of the locally preferred transportation, environmental protection, and housing investments. for 3 fiscal years, including the fiscal alternative as part of the long-range year in which the award is made. FTA transportation plan required under Through the Alternatives Analysis Program grants, FTA will support a will not approve requests for deferred section 5303. Further information on local share under this program. conducting an alternatives analysis, limited number of alternatives analyses, or technical work conducted as part of To promote collaboration on the including descriptions of the documents development of major transit capital produced, can be found on FTA’s Web proposed or on-going alternatives analyses, that would advance major improvements and to demonstrate the site at http://www.fta.dot.gov/planning/ value of partnerships across government newstarts/ transit investments that foster the six livability principles that serve as the agencies that serve various public planning_environment_2396.html. service missions, FTA will give priority FTA will award discretionary funding foundation for the DOT–HUD–EPA Partnership for Sustainable to proposals that are supported, available under Section 5339 to support financially or otherwise, by non- a limited number of alternatives Communities: 1. Provide more transportation transportation public agencies that are analyses, or technical work conducted choices pursuing similar objectives and are as part of on-going alternatives analyses, 2. Promote equitable, affordable aligning their community development to develop information for local housing activities to increase the efficiency of decision-makers and for the Secretary 3. Enhance economic competitiveness Federal investments. regarding potential New Starts and 4. Support existing communities VI. Application Content Small Starts projects. These funds will 5. Coordinate policies and leverage be awarded for alternatives analysis investment A. Brief Description of the activities selected from proposals 6. Value communities and Alternatives Analysis: Provide a submitted in response to this notice. neighborhoods paragraph about the study stating its goals and providing a brief description II. Policy Priority—DOT’s Livability FTA will also consider geographic of the work plan. This section should Initiative distribution in project selection. also list all the partners involved in the FTA has long fostered livable III. Eligible Applicants study. communities and sustainable Section 5339 allows FTA to make B. Applicant Information: Provide development through its various transit grants and agreements, under criteria basic identifying information, including: programs and activities. Public established by the Secretary, to States, (a) Applicant name, address, transportation supports the authorities of the States, metropolitan congressional district and FTA recipient

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ID number; (b) contact information standards, and guideway service confirm that the application was (including contact name, title, address, options. received and a second will confirm e-mail, fax and phone number); (c) 3. Preliminary Evaluation Criteria. within 24–48 hours whether the description of services provided by the Applicants should identify the application was validated or rejected by agency, including areas served. Some of preliminary evaluation criteria that the system. Registering with this information is included in the specify, in part, the desired outcomes of GRANTS.GOV is a one-time process; Standard Form 424. If this is a an improvement, and provide the basis however, processing delays may occur collaborative study, provide the contact for comparing the performance of the and it can take up to several weeks for information for the LEAD agency only. various alternatives. This should first-time registrants to receive C. Evaluation Criteria: Address each include criteria which would inform confirmation and a user password. of the evaluation criteria separately, decision-makers how an improvement Therefore, applicants should start the providing evidence that demonstrates would advance the six livability registration process as early as possible the ways that the proposed study meets outcomes: provide more transportation to prevent delays that may preclude each criterion. choices; promote equitable, affordable submitting an application by the D. Work Plan and Budget for the On- housing; enhance economic deadline specified. Proposals will not be going or Up-coming Alternatives competitiveness; support existing accepted after the relevant due date; Analysis: Provide the work plan and communities; coordinate policies and delayed registration is not an acceptable budget describing the nature, technical leverage investment; and value reason for extensions. Further, approaches, and cost of the alternatives communities and neighborhoods. applicants are urged to submit their analysis indicating what items would be B. The Technical Capacity of the application at least 72 hours prior to the funded with Section 5339 funds and Applicant to Carry Out the Proposed due date of the application to allow time what items would be funded by other Work Successfully. Applicants must to receive the validation message and to sources. demonstrate the technical capacity to correct any problems that may have E. The total application may not successfully undertake an analysis of caused a rejection notification. exceed 25 pages. alternatives. Demonstration of technical If applicants experience unforeseen capacity may include such items as VII. Proposal Evaluation Criteria and GRANTS.GOV technical issues beyond staffing levels and skill sets at the Other Considerations their control that prevent the organization undertaking the submission of their application by the Awards under this notice could range alternatives analysis and any previous deadline, the applicant must contact from $50,000 to up to $2 million in experience completing an alternatives FTA staff at [email protected] Section 5339 funding. Eligible analysis or corridor study. within 24 hours after the deadline and applicants must be able to begin the C. Potential Impact on Decision- request approval to submit the alternatives analysis within 12 months Making. Applicants must demonstrate application. At that time, FTA staff will of the study being selected for funding the potential impact of the proposed require the applicant to e-mail the if it is not already underway. Proposals tasks on decision-making. FTA will give complete grant application, their DUNS will be evaluated as follows: priority to project sponsors that are number, and provide a GRANTS.GOV A. Demonstrated Need. Applicants coordinating the development of transit Help Desk tracking number(s). After must demonstrate need for these funds projects with relevant public housing FTA staff reviews all of the information by identifying a substantial agencies, or relevant public agencies submitted as well as contacts the transportation problem in the study with energy or environmental missions. corridor and the degree to which the GRANTS.GOV Help Desk to validate the Alternatives Analysis technical work VIII. Technical Assistance and Other technical issues reported, FTA staff will will develop information on the full Requirements contact the applicant to either approve range of costs and benefits of the major FTA’s Office of Planning and or deny its request to submit a late transit capital improvements being Environment staff is available to discuss application. If the reported technical studied, including alternatives that may and clarify expectations regarding these issues cannot be validated, the seek New Starts or Small Starts funding. efforts before applicants submit application will be rejected as untimely. To demonstrate need, applicants should proposals. Proposals will be reviewed To ensure a fair competition for provide the following information: and ranked based on the criteria in this limited discretionary funds, the 1. Description of Study Area, notice by FTA headquarters staff in following conditions are not valid Transportation Problems, and Needs. consultation with the appropriate FTA reasons to permit late submissions: (1) Applicants should provide a statement regional office (see Appendix A). Highly Failure to complete the registration of the transportation problem for which qualified proposals will be considered process before the deadline date; (2) alternative solutions are to be analyzed. for inclusion in a national list that failure to follow GRANTS.GOV This information provides the context represents the highest and best use of instructions on how to register and for performing the analysis and for the available funding. The FTA apply as posted on its Web site; (3) identifying the measures against which Administrator will determine the final failure to follow all of the instructions alternatives strategies will be evaluated. selection and amount of funding for in the funding availability notice; and 2. Description of Conceptual each study. Selected studies will be (4) technical issues experienced with Alternatives. Applicants should provide announced in Fall 2010. FTA will the applicant’s computer or information a conceptual definition of a broad range publish the list of all selected studies technology (IT) environment. of strategies for improving conditions in and funding levels in the Federal Issued in Washington, DC, this 24th day of the corridor. For each alternative, the Register. May, 2010. conceptual definition includes the All proposals must be submitted to Peter Rogoff, preliminary identification of candidate FTA electronically through the Administrator. general alignments and operating GRANTS.GOVAPPLY function. strategies, including general ideas of Applicants will receive two Appendix A—FTA Regional and overall bus service levels, service confirmation e-mails. The first will Metropolitan Offices

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Richard H. Doyle, Regional Administrator, Region 1—Boston, Kendall Robert C. Patrick, Regional Administrator, Region 6–Ft. Worth, 819 Square 55 Broadway, Suite 920, Cambridge, MA 02142–1093, Tel. Taylor Street, Room 8A36, Ft. Worth, TX 76102, Tel. 817–978– 617–494–2055. 0550. States served: Connecticut, Maine, Massachusetts, New Hampshire, States served: Arkansas, Louisiana, Oklahoma, New Mexico and Rhode Island, and Vermont. Texas. Brigid Hynes-Cherin, Regional Administrator, Region 2—New York, Mokhtee Ahmad, Regional Administrator, Region 7—Kansas City, MO, One Bowling Green, Room 429, New York, NY 10004–1415,Tel. 901 Locust Street, Room 404, Kansas City, MO 64106,Tel. 816– 212–668–2170. 329–3920. States served: New Jersey, New York ...... States served: Iowa, Kansas, Missouri, and Nebraska. New York Metropolitan Office, Region 2—New York, One Bowling Green, Room 428, New York, NY 10004–1415, Tel. 212–668–2202. Letitia Thompson, Regional Administrator, Region 3—Philadelphia, Terry Rosapep, Regional Administrator, Region 8—Denver, 12300 1760 Market Street, Suite 500, Philadelphia, PA 19103–4124, Tel. West Dakota Ave., Suite 310, Lakewood, CO 80228–2583, Tel. 215–656–7100. 720–963–3300. States served: Delaware, Maryland, Pennsylvania, Virginia, West Vir- States served: Colorado, Montana, North Dakota, South Dakota, Utah, ginia, and District of Columbia. and Wyoming. Philadelphia Metropolitan Office, Region 3—Philadelphia, 1760 Market Street, Suite 500, Philadelphia, PA 19103–4124, Tel. 215–656–7070. Washington, DC Metropolitan Office, 1990 K Street, NW, Room 510, Washington, DC 20006, Tel. 202–219–3562. Yvette Taylor, Regional Administrator, Region 4—Atlanta, 230 Leslie T. Rogers, Regional Administrator, Region 9—San Francisco, Peachtreet Street, NW., Suite 800, Atlanta, GA 30303, Tel. 404–865– 201 Mission Street, Room 1650, San Francisco, CA 94105– 5600. 1926,Tel. 415–744–3133. States served: Alabama, Florida, Georgia, Kentucky, Mississippi, North States served: American Samoa, Arizona, California, Guam, Hawaii, Carolina, Puerto Rico, South Carolina, Tennessee, and Virgin Islands. Nevada, and the Northern Mariana Islands. Los Angeles Metropolitan Office, Region 9—Los Angeles, 888 S. Figueroa Street, Suite 1850, Los Angeles, CA 90017–1850, Tel. 213–202–3952. Marisol Simon, Regional Administrator, Region 5—Chicago, 200 West Rick Krochalis, Regional Administrator, Region 10—Seattle, Jackson Adams Street, Suite 320, Chicago, IL 60606, Tel. 312–353–2789. Federal Building, 915 Second Avenue, Suite 3142, Seattle, WA 98174–1002, Tel. 206–220–7954. States served: Illinois, Indiana, Michigan, Minnesota, Ohio, and Wis- States served: Alaska, Idaho, Oregon, and Washington. consin. Chicago Metropolitan Office, Region 5—Chicago, 200 West Adams Street, Suite 320, Chicago, IL 60606, Tel. 312–353–2789.

[FR Doc. 2010–12950 Filed 5–27–10; 8:45 am] agency will address Ford’s request for SecuriLock antitheft device (also known BILLING CODE 4910–57–P confidential treatment by separate letter. as the Passive Antitheft System or DATES: The exemption granted by this PATS) on the 2011 Explorer as standard notice is effective beginning with the equipment. Ford stated that it will also DEPARTMENT OF TRANSPORTATION 2011 model year. offer its Intelligent Access with Push FOR FURTHER INFORMATION CONTACT: Ms. Button Start (IAwPB) antitheft device as National Highway Traffic Safety Carlita Ballard, Office of International optional equipment. Ford stated that Administration Policy, Fuel Economy and Consumer both systems are passive, electronic immobilizer devices that use encrypted Petition for Exemption From the Programs, NHTSA, 1200 New Jersey transponder technology. Key Vehicle Theft Prevention Standard; Avenue, SE., Washington, DC 20590. components of the Securilock/PATS Ford Motor Company Ms. Ballard’s telephone number is (202) 366–0846. Her fax number is (202) 493– antitheft device will include an AGENCY: National Highway Traffic 2990. electronic transponder key, transceiver Safety Administration (NHTSA). SUPPLEMENTARY INFORMATION: In a module, ignition lock, and a passive Department of Transportation (DOT). petition dated December 11, 2009, Ford immobilizer. Key components of the ACTION: Grant of petition for exemption. requested an exemption from the parts- IAwPB device is an electronic keyfob, marking requirements of the Theft remote function actuator, body control SUMMARY: This document grants in full Prevention Standard (49 CFR Part 541) module, power train control module the Ford Motor Company’s (Ford) for the MY 2011 Ford Explorer vehicle and a passive immobilizer. Ford stated petition for an exemption of the line. The petition requested an that its MY 2011 Explorer vehicle line Explorer vehicle line in accordance with exemption from parts-marking pursuant will also be equipped with several other § 543.9(c)(2) of 49 CFR Part 543, to 49 CFR Part 543, Exemption from standard antitheft features common to Exemption from the Theft Prevention Vehicle Theft Prevention Standard, Ford vehicles, (i.e., counterfeit resistant Standard. This petition is granted based on the installation of an antitheft VIN labels; secondary VINs, cabin because the agency has determined that device as standard equipment for an accessibility through the use of a valid the antitheft device to be placed on the entire vehicle line. key fob or keycode). Ford further stated line as standard equipment is likely to Under § 543.5(a), a manufacturer may that there will also be a separate visible be as effective in reducing and deterring petition NHTSA to grant exemptions for and audible perimeter alarm available motor vehicle theft as compliance with one vehicle line per model year. In its on its Explorer vehicle line. The alarm the parts-marking requirements of the petition, Ford provided a detailed will be available as an option on Theft Prevention Standard (49 CFR Part description and diagram of the identity, vehicles with the Securilock/PATS 541). Ford requested confidential design, and location of the components device and included as standard treatment for the attachments it of the antitheft device for the Explorer equipment on vehicles with the IAwPB submitted in support of its petition. The vehicle line. Ford will install its device. Ford’s submission is considered

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a complete petition as required by 49 which NHTSA has determined to be as the parts-marking requirements of the CFR 543.7, in that it meets the general effective in reducing and deterring Theft Prevention Standard (49 CFR Part requirements contained in § 543.5 and motor vehicle theft as would 541). the specific content requirements of compliance with the parts-marking Pursuant to 49 U.S.C. 33106 and 49 § 543.6. requirements. Ford stated that it CFR 543.7 (b), the agency grants a Ford stated that the devices believes that the standard installation of petition for exemption from the parts- integration of the transponder into the either the SecuriLock device or the marking requirements of Part 541 either normal operation of the ignition key IAwPB device would be an effective in whole or in part, if it determines that, assures activation of the system. Ford deterrent against vehicle theft. based upon substantial evidence, the further stated that both devices are Ford stated that it installed the standard equipment antitheft device is always active and require no other SecuriLock device on all MY 1996 Ford likely to be as effective in reducing and operator action. Specifically, in the Mustang GT and Cobra models and deterring motor vehicle theft as SecuriLock device, when the ignition other selected models. Ford stated that compliance with the parts-marking key is turned to the ‘‘start’’ position, the in the 1997 model, the SecuriLock requirements of Part 541. The agency transceiver module reads the ignition device was extended to the complete finds that Ford has provided adequate key code and transmits an encrypted Ford Mustang vehicle line as standard reasons for its belief that the antitheft message from the keycode to the control equipment. Ford also stated that device for the Ford Explorer vehicle line module, which then determines key according to the National Insurance is likely to be as effective in reducing validity and authorizes engine starting Crime Bureau (NICB) theft statistics, MY and deterring motor vehicle theft as by sending a separate encrypted 1997 Mustangs installed with the compliance with the parts-marking message to the powertrain contol SecuriLock device showed a 70% requirements of the Theft Prevention module (PCM). In the IAwPB device, reduction in theft rate compared to the Standard (49 CFR Part 541). This when the ‘‘startstop’’ button is pressed, MY 1995 Mustangs. Ford also reported conclusion is based on the information the transceiver module reads the key that the SecuriLock device is currently Ford provided about its device. code and transmits an encrypted offered as standard equipment on most The agency concludes that the device message from the keycode to the control of its North American Ford, Lincoln and will provide four of the five types of module to determine validity and Mercury vehicles but is offered as performance listed in § 543.6(a)(3): authorizes engine starting by sending a optional equipment on its F-series promoting activation; preventing defeat separate encrypted message to the body Super Duty pickups, Econoline and or circumvention of the device by control module (BCM), the PEP/RFA Transit Connect vehicles. Ford stated unauthorized persons; preventing module and the PCM. Ford pointed out that with MY 2011, the IAwPB device operation of the vehicle by that in addition to the programmed key, will be offered as standard equipment unauthorized entrants; and ensuring the the three modules that must be matched on the Lincoln MKT and optionally on reliability and durability of the device. to allow start of the vehicle adds even the Lincoln MKS, MKX, Taurus, Edge For the foregoing reasons, the agency an additional level of security to the and the Explorer vehicles. hereby grants in full Ford’s petition for IAwPB device and in both devices, if Ford also referenced theft rate data exemption for the Explorer vehicle line the codes do not match, the powertrain published by NHTSA showing that the from the parts-marking requirements of engine starter, spark and fuel will be theft rate for the Explorer is lower than 49 CFR Part 541. The agency notes that disabled. the median theft rate for all vehicles 49 CFR Part 541, Appendix A–1, In addressing the specific content from MY’s 2000–2006. Ford stated that identifies those lines that are exempted requirements of 543.6, Ford provided the 2011 Explorer will be comparable in from the Theft Prevention Standard for information on the reliability and vehicle segment, size and equipment a given model year. 49 CFR Part 543.7(f) durability of its proposed device. To (including the SecuriLock device) to contains publication requirements ensure reliability and durability of the those Explorer/Mercury Mountaineer incident to the disposition of all Part device, Ford conducted tests based on vehicles for which theft rate data is 543 petitions. Advanced listing, its own specified standards. Ford currently available (between MYs 2004 including the release of future product provided a detailed list of the tests and 2006). Ford stated that since either nameplates, the beginning model year conducted and believes that the device the SecuriLock device or the IAwPB for which the petition is granted and a is reliable and durable since the device device is the primary theft deterrent on general description of the antitheft complied with its specified Ford Explorer vehicles, it believes that device is necessary in order to notify requirements for each test. theft rates for the Explorer will improve law enforcement agencies of new Ford also stated that incorporation of or continue comparatively lower in the vehicle lines exempted from the parts- several features in both devices further future than the theft rates experienced marking requirements of the Theft support reliability and durability of the by its Explorer/Mercury Mountaineer Prevention Standard. devices. Specifically, some of those vehicles between MYs’ 2004–2006. The If Ford decides not to use the features include: encrypted theft rate for the Ford Explorer using exemption for this line, it must formally communication between the two MYs’ data (2004–2005) data is notify the agency. If such a decision is transponder, control function and the 1.6797 and theft rate for the Mercury made, the line must be fully marked power train control module; no moving Mountaineer using three MYs data is according to the requirements under 49 parts; inability to mechanically override 1.3361. CFR Parts 541.5 and 541.6 (marking of the device to start the vehicle; and the The agency agrees that the device is major component parts and replacement body control module/remote function substantially similar to devices in other parts). actuator and the power train control vehicle lines for which the agency has NHTSA notes that if Ford wishes in module share security data that during already granted exemptions. Based on the future to modify the device on vehicle assembly form matched the evidence submitted by Ford, the which this exemption is based, the modules that if separated from each agency believes that the antitheft device company may have to submit a petition other will not function in other vehicles. for the Explorer vehicle line is likely to to modify the exemption. Part 543.7(d) Ford compared the device proposed be as effective in reducing and deterring states that a Part 543 exemption applies for its vehicle line with other devices motor vehicle theft as compliance with only to vehicles that belong to a line

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exempted under this part and equipped tested; and 170 M–3 MU passenger cars received into any of our dockets by the with the antitheft device on which the of which 60 have had their horns tested. name of the individual submitting the line’s exemption is based. Further, Part In addition, LIRR operates 80 diesel comment (or signing the comment, if 543.9(c)(2) provides for the submission electric locomotives of which 7 horns submitted on behalf of an association, of petitions ‘‘to modify an exemption to have been tested; and 23 control car business, labor union, etc.). You may permit the use of an antitheft device locomotives of which 2 horns have been review DOT’s complete Privacy Act similar to but differing from the one tested. Statement in the Federal Register specified in that exemption.’’ LIRR cites the previous winters (2009 published on April 11, 2000 (Volume The agency wishes to minimize the and 2010) climatic conditions for failure 65, Number 70; Pages 19477–78). administrative burden that Part to complete the required horn testing. Issued in Washington, DC on May 24, 543.9(c)(2) could place on exempted LIRR is requesting an additional 6- 2010. vehicle manufacturers and itself. The month extension to complete the Grady C. Cothen, Jr., agency did not intend in drafting Part testing. Because of the constraints of Deputy Associate Administrator for Safety 543 to require the submission of a their maintenance facilities, LIRR is also Standards and Program Development. modification petition for every change requesting that they be allowed to [FR Doc. 2010–12880 Filed 5–27–10; 8:45 am] to the components or design of an utilize an alternate testing standard. BILLING CODE 4910–06–P antitheft device. The significance of LIRR would do reference sample testing many such changes could be de of locomotive horns as required in 49 minimis. Therefore, NHTSA suggests CFR 229.129(c), and use the test results DEPARTMENT OF TRANSPORTATION that if the manufacturer contemplates from the reference tests to develop an making any changes, the effects of alternative test plan. Federal Motor Carrier Safety which might be characterized as de Interested parties are invited to Administration minimis, it should consult the agency participate in these proceedings by before preparing and submitting a submitting written views, data, or Solicitation of Applications for Fiscal petition to modify. comments. FRA does not anticipate Year (FY) 2010 Motor Carrier Safety Authority: 49 U.S.C. 33106; delegation of scheduling a public hearing in Assistance Program (MCSAP) High authority at 49 CFR 1.50. connection with these proceedings since Priority Grant Funding the facts do not appear to warrant a Issued on: May 25, 2010. AGENCY: Federal Motor Carrier Safety hearing. If any interested party desires Stephen R. Kratzke, Administration (FMCSA), DOT. an opportunity for oral comment, they ACTION: Notice. Associate Administrator for Rulemaking. should notify FRA, in writing, before [FR Doc. 2010–12948 Filed 5–27–10; 8:45 am] the end of the comment period and SUMMARY: FMCSA announces that on BILLING CODE 4910–59–P specify the basis for their request. May 21 it published an opportunity to All communications concerning these apply for FY 2010 MCSAP High Priority proceedings should identify the DEPARTMENT OF TRANSPORTATION grant funding on the grants.gov Web site appropriate docket number (e.g., Waiver (http://www.grants.gov). Federal Railroad Administration Petition Docket Number 2010–0090) and DATES: FMCSA will initially consider may be submitted by any of the funding for applications submitted by Petition for Waiver of Compliance following methods: • July 1, 2010. If additional funding Web site: http:// remains available, applications In accordance with part 211 of Title www.regulations.gov. Follow the online 49 Code of Federal Regulations (CFR), submitted after that date will be instructions for submitting comments. considered on a case-by-case basis. notice is hereby given that the Federal • Fax: 202–493–2251. Railroad Administration (FRA) received • Mail: Docket Operations Facility, FOR FURTHER INFORMATION CONTACT: Ms. a request for a waiver of compliance U.S. Department of Transportation, 1200 Cim Weiss, Federal Motor Carrier Safety with certain requirements of its safety New Jersey Avenue, SE., W12–140, Administration, Office of Safety standards. The individual petition is Washington, DC 20590. Programs, State Programs Division (MC– described below, including the party • Hand Delivery: 1200 New Jersey ESS), 202–366–0275, 1200 New Jersey seeking relief, the regulatory provisions Avenue, SE., Room W12–140, Avenue, SE., Washington, DC 20590. involved, the nature of the relief being Washington, DC 20590, between 9 a.m. Office hours are from 8:00 a.m. to 4:30 requested, and the petitioner’s and 5 p.m., Monday through Friday, p.m., EST., Monday through Friday, arguments in favor of relief. except Federal Holidays. except Federal holidays. Communications received within 30 SUPPLEMENTARY INFORMATION: The Long Island Rail Road days of the date of this notice will be Consolidated Appropriations Act of [Waiver Petition Docket Number FRA–2010– considered by FRA before final action is 2010 provides grant funding for 0090] taken. Comments received after that Commercial Motor Vehicle (CMV) safety The Long Island Rail Road (LIRR) date will be considered as far as programs as authorized under the Safe, seeks a waiver of compliance with the practicable. All written communications Accountable, Flexible, Efficient Locomotive Safety Standards, 49 CFR concerning these proceedings are Transportation Equity Act: A Legacy for 229.129(b)(2), which requires that the available for examination during regular Users, Public Law 111–147, 124 Stat. 71 sound level of locomotives business hours (9 a.m.–5 p.m.) at the (2010); Public Law 109–59, 119 Stat. manufactured before September 18, above facility. All documents in the 1144 (2005). 2006, have their horns tested before public docket are also available for This notice announces the availability June 24, 2010; and 49 CFR 229.129(c), inspection and copying on the Internet of approximately $2,000,000 in un- which prescribes the testing at the docket facility’s Web site at awarded FY 2010 funding for MCSAP requirements for testing locomotive http://www.regulations.gov. High Priority projects. These funds are horns. Anyone is able to search the available for activities conducted by LIRR operates 836 M–7 MU passenger electronic form of any written State agencies, local governments, and cars of which 84 have had their horns communications and comments organizations representing government

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agencies that use and train qualified Public Law 104–13 (44 U.S.C. Program. The collection of information officers and employees in coordination 3506(c)(2)(A)). Currently, the Terrorism in the notice of proposed settlement in with State motor vehicle safety agencies. Risk Insurance Program Office is Section 50.83 that insurers must submit Post-secondary institutions of higher seeking comments regarding Litigation to implement the settlement approval education are also eligible to receive Management Submissions. process prescribed by Section 50.82. funding. Funds are allocated in DATES: Written comments should be Type of Review: Extension of accordance with the provisions of 49 received on or before July 27, 2010 to be currently approved collection. CFR 350.313 and 49 CFR 350.319. assured of consideration. Affected Public: Business or other for- Applicants are encouraged to submit ADDRESSES: Submit comments by e-mail profit, Federal Government. Estimated Number of Respondents: performance-based proposals that to [email protected] or by 100. represent innovative strategies to mail (if hard copy, preferably an original Estimated Annual Time Per support, enrich, or evaluate CMV safety and two copies) to: Terrorism Risk Respondent: 12.86 hours. programs. Priority for selection will be Insurance Program, Public Comment given to proposals with potential for Estimated Total Annual Burden Record, Suite 2100, Department of the Hours: 1,286 hours. nation-wide implementation, such as Treasury, 1425 New York Ave., NW., programs that support: Requests for Comments: An agency • Washington, DC 20220. Because paper may not conduct or sponsor, and a The DOT’s continuing effort to mail in the Washington DC area may be combat distracted driving by CMV person is not required to respond to, a subject to delay, it is recommended that collection of information unless the drivers; comments be submitted electronically. • Outreach that promotes safe driving collection of information displays a All comments should be captioned with practices by teen drivers around CMVs; valid OMB control number. Comments ‘‘PRA Comments—Litigation and submitted in response to this notice will Management Submissions’’. Please • The development of a proof of be summarized and/or included in the include your name, affiliation, address, concept, validating the Ticketing request for OMB approval. All email address and telephone number in Aggressive Cars and Trucks (TACT) comments will become a matter of your comment. Comments will be evaluation component’s contribution to public record. available for public inspection by reducing CMV crash and fatality rates. Comments are invited on: (a) Whether All applicants must submit an appointment only at the Reading Room the collection of information is electronic application package through of the Treasury Library. To make necessary for the proper performance of grants.gov. To apply using the appointments, call (202) 622–0990 (not the functions of the agency, including grants.gov process, the applicant must a toll-free number). whether the information shall have be registered with grants.gov. To FOR FURTHER INFORMATION CONTACT: practical utility; (b) the accuracy of the register, go to http://www.grants.gov/ Requests for additional information agency’s estimate of the burden of the applicants/get_registered.jsp. The should be directed to: Terrorism Risk collection of information; (c) ways to applicant must download the grant Insurance Program Office at (202) 622– enhance the quality, utility, and clarity application package, complete the grant 6770 (not a toll-free number). of the information collections; (d) ways application package, and submit the SUPPLEMENTARY INFORMATION: to minimize the burden of the collection completed grant application package. OMB Number: 1505–0196. of information on respondents, This can be done on the Internet at Title: Terrorism Risk Insurance including through the use of automated http://www.grants.gov/applicants/ Program—Litigation Management collection techniques or other forms of apply_for_grants.jsp. The Catalogue of Submissions. information technology; and (e) Federal Domestic Assistance number for Form: Treasury TRIP–03. estimates of capital or start-up costs and MCSAP is 20.218. Abstract: Section 103(a) and 104 of costs of operation, maintenance, and the Terrorism Risk Insurance Act of Issued on: May 20, 2010. purchase of services to provide 2002 (Pub. L. 107–297) authorize the information. William A. Quade, Department of the Treasury to Associate Administrator for Enforcement and administer and implement the Dated: May 18, 2010. Program Delivery. temporary Terrorism Risk Insurance Jeffrey S. Bragg, [FR Doc. 2010–12831 Filed 5–27–10; 8:45 am] Program established by the Act. Section Director, Terrorism Risk Insurance Program. BILLING CODE 4910–EX–P 107 contains specific provisions [FR Doc. 2010–12836 Filed 5–27–10; 8:45 am] designed to manage litigation arising out BILLING CODE P of or resulting from a certified act of DEPARTMENT OF THE TREASURY terrorism. The Terrorism Risk Insurance Extension Act of 2005, (Pub. L. 109– DEPARTMENT OF THE TREASURY Terrorism Risk Insurance Program; 144), added section 107(a)(6) to TRIA, Terrorism Risk Insurance Program; Litigation Management Submissions which provides that procedures and Recordkeeping Requirements for requirements established by the AGENCY: Departmental Offices. Insurers Compensated Under the Secretary under 31 CFR 50.82, as in ACTION: Notice and request for Program comments. effect on the date of issuance of that section in final form [July 28, 2004], AGENCY: Departmental Offices. SUMMARY: The U.S. Department of the shall apply to any Federal cause of ACTION: Notice and request for Treasury, as part of its continuing effort action described in section 107(a)(1). comments. to reduce paperwork and respondent Section 50.82 of the regulations burden, invites the general public and requires insurers to submit to Treasury SUMMARY: The Department of the other Federal agencies to take this for advance approval certain proposed Treasury, as part of its continuing effort opportunity to comment on proposed settlements involving an insured loss, to reduce paperwork burdens, invites and/or continuing information any part of the payment of which the the general public and other Federal collections, as required by the insurer intends to submit as part of its agencies to comment on a currently Paperwork Reduction Act of 1995, claim for Federal payment under the approved information collection that is

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due for extension approval by the Office confirmations and audits. Section 50.61 proposed and continuing information of Management and Budget. The requires insurers to retain all records as collections, as required by the Terrorism Risk Insurance Program are necessary to fully disclose all Paperwork Reduction Act of 1995, 44 Office within the Department of the material matters pertaining to insured U.S.C. 3507. The Office of Thrift Treasury is soliciting comments losses. This collection of information is Supervision within the Department of concerning the Recordkeeping the record keeping requirement in Sec. the Treasury will submit the proposed Requirements set forth in 31 CFR part 50.61. information collection requirement 50, subpart (Sec. 50.50–50.55) Type of Review: Extension of a described below to the Office of DATES: Written comments should be currently approved data collection Management and Budget (OMB) for received on or before July 27, 2010 to be Affected Public: Business or other for- review, as required by the Paperwork assured of consideration. profit, Federal Government. Reduction Act. Today, OTS is soliciting ADDRESSES: Submit comments by e-mail Estimated Number of Respondents: public comments on its proposal to to [email protected] or by 100 extend this information collection. Estimated Average Time per mail (if hard copy, preferably an original DATES: Submit written comments on or and two copies) to: Terrorism Risk Respondent: 8.3 hours. before July 27, 2010. Estimated Total Annual Burden Insurance Program, Public Comment Hours: 833 hours. ADDRESSES: Send comments, referring to Record, Suite 2100, Department of the Request for Comments.: An agency the collection by title of the proposal or Treasury, 1425 New York Ave., NW., may not conduct or sponsor, and a by OMB approval number, to Washington, DC 20220. Because paper person is not required to respond to, a Information Collection Comments, Chief mail in the Washington DC area may be collection of information unless the Counsel’s Office, Office of Thrift subject to delay, it is recommended that collection of information displays a Supervision, 1700 G Street, NW., comments be submitted electronically. valid OMB control number. Comments Washington, DC 20552; send a facsimile All comments should be captioned with submitted in response to this notice will transmission to (202) 906–6518; or send ‘‘PRA Comments—Recordkeeping be summarized and/or included in the an e-mail to Requirements for Insurers Compensated request for OMB approval. All [email protected]. Under the Program’’. Please include comments will become a matter of OTS will post comments and the related your name, affiliation, address, e-mail public record. Comments are invited on: index on the OTS Internet Site at address and telephone number in your (a) Whether the collection of http://www.ots.treas.gov. In addition, comment. Comments will be available information is necessary for the proper interested persons may inspect for public inspection by appointment performance of the functions of the comments at the Public Reading Room, only at the Reading Room of the agency, including whether the 1700 G Street, NW., Washington, DC Treasury Library. To makes information shall have practical utility; 20552 by appointment. To make an appointments, call (202) 622–0990 (not (b) the accuracy of the agency’s estimate appointment, call (202) 906–5922, send a toll-free number). of the burden of the collection of an e-mail to [email protected], or FOR FURTHER INFORMATION CONTACT: information; (c) ways to enhance the send a facsimile transmission to (202) Requests for additional information quality, utility, and clarity of the 906–7755. should be directed to: Terrorism Risk information collections; (d) ways to FOR FURTHER INFORMATION CONTACT: You Insurance Program Office at (202) 622– minimize the burden of the collection of can request additional information 6770 (not a toll-free number). information on respondents, including about this proposed information SUPPLEMENTARY INFORMATION: through the use of automated collection collection from April Breslaw (202) OMB Number: 1505–0197. techniques or other forms of information 906–6989, Office of Thrift Supervision, Title: Terrorism Risk Insurance technology; and (e) estimates of capital 1700 G Street, NW., Washington, DC Program—Recordkeeping Requirements or start-up costs and costs of operation, 20552. for Insurers Compensated Under the maintenance, and purchase of services SUPPLEMENTARY INFORMATION: OTS may Program. to provide information. Abstract: Sections 103(a) and 104 of not conduct or sponsor an information the Terrorism Risk Insurance Act of Dated: May 18, 2010. collection, and respondents are not 2002 (Pub. L. 107–297) (as extended by Jeffrey S. Bragg, required to respond to an information the Terrorism Risk Insurance Extension Director, Terrorism Risk Insurance Program. collection, unless the information Act of 2005 (Pub.L. 109–144) and the [FR Doc. 2010–12839 Filed 5–27–10; 8:45 am] collection displays a currently valid Terrorism Risk Insurance Program BILLING CODE P OMB control number. As part of the Reauthorization Act of 2007 (Pub.L. approval process, we invite comments 110–160) authorize the Department of on the following information collection. the Treasury to administer and DEPARTMENT OF THE TREASURY Comments should address one or implement the Terrorism Risk Insurance more of the following points: Program established by the Act. In 31 Office of Thrift Supervision a. Whether the proposed collection of CFR part 50, subpart F (Sec. 50.50– information is necessary for the proper 50.55) Treasury established Community Reinvestment Act performance of the functions of OTS; requirements and procedures for Sunshine b. The accuracy of OTS’s estimate of insurers that file claims for payment of AGENCY: Office of Thrift Supervision the burden of the proposed information the Federal share of compensation for (OTS), Treasury. collection; insured losses resulting from a certified ACTION: Notice and request for comment. c. Ways to enhance the quality, act of Terrorism under the Act. Section utility, and clarity of the information to 50.60 allows Treasury access to records SUMMARY: The Department of the be collected; of an insurer pertinent to the amounts Treasury, as part of its continuing effort d. Ways to minimize the burden of the paid as the Federal share of to reduce paperwork and respondent information collection on respondents, compensation for insured losses in burden, invites the general public and including through the use of order to conduct investigations, other Federal agencies to comment on information technology.

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We will summarize the comments OTS’s regulations implementing these ACTION: Notice. that we receive and include them in the requirements are found at 12 CFR 533.4, OTS request for OMB approval. All 533.6, and 533.7. SUMMARY: This document contains a comments will become a matter of Type of Review: Extension of a Notice that the IRS has made available public record. In this notice, OTS is currently approved collection. the grant application package and soliciting comments concerning the Affected Public: Businesses or other guidelines (Publication 3319) for following information collection. for-profit. organizations interested in applying for Title of Proposal: Community Estimated Number of Respondents: 5. a Low Income Taxpayer Clinic (LITC) Reinvestment Act Sunshine. Estimated Burden Hours per matching grant for the 2011 grant cycle OMB Number: 1550–0105. Responses: 1 to 4 hours. (the 2011 grant cycle runs January 1, Regulation Requirements: 12 CFR Estimated Frequency of Response: On 2011, through December 31, 2011). 533.4, 533.6 and 533.7. occasion. Estimated Total Burden: 187 hours. The IRS accepts applications from any Form Number: N/A. organization that meets the basic Description: These information Dated: May 25, 2010. eligibility criteria, regardless of the collections are required under section Ira L. Mills, geographic location in which the clinic 711 of the Gramm-Leach-Bliley Act, Paperwork Clearance Officer, Office of Chief services are being provided. To better Public Law No. 106–102. This section Counsel, Office of Thrift Supervision. identify areas most in need of LITC requires certain agreements that are in [FR Doc. 2010–12937 Filed 5–27–10; 8:45 am] services, the Program Office has fulfillment of the Community BILLING CODE 6720–01–P completed an evaluation of areas Reinvestment Act of 1977 to be serviced. Based on the findings of this disclosed to the public and the assessment, for the 2011 grant cycle, the appropriate Federal banking agencies. DEPARTMENT OF THE TREASURY LITC Program Office is particularly This section also institutes an annual interested in organizations that meet at reporting requirement to the agencies Internal Revenue Service least one of the following criteria: (1) concerning these agreements. These Low Income Taxpayer Clinic Grant Organizations currently receiving a requirements apply to insured Program; Availability of 2011 Grant grant for the 2010 grant cycle, or (2) depository institutions and their Application Package organizations servicing the following affiliates, as well as nongovernmental counties (whether or not they are entities or persons that enter into AGENCY: Internal Revenue Service (IRS), receiving a grant for the 2010 grant covered agreements with such entities. Treasury. cycle):

TARGET COUNTIES FOR NEW CLINIC APPLICATIONS

State County State County State County

CA El Dorado MI Barry PA Carbon Kern Ionia Lackawanna Placer Kent Lehigh Riverside Newaygo Luzerne Sacramento NC Franklin Mercer San Bernardino Guilford Northampton San Joaquin Johnson Wyoming Stanislaus Randolph TN Hamilton Ventura Rockingham Marion Yolo Wake Sequatchie

We also encourage existing clinics to ADDITIONAL TARGET STATES BY CLINIC The IRS will award a total of up to consider expanding their services to TYPE $6,000,000 (unless otherwise provided cover these counties, where possible. by specific Congressional appropriation) The IRS is currently funding at least State Controversy ESL to qualifying organizations, subject to the limitations of Internal Revenue Code one clinic in each State, the District of CT ...... X Columbia and Puerto Rico; however, not section 7526, for matching grants. A MD ...... X qualifying organization may receive a all clinics offer both controversy MT ...... X matching grant of up to $100,000 per services and outreach and education NM ...... X year. Qualifying organizations that services to taxpayers who speak English SD ...... X provide representation for free or for a as a second language (ESL). An WY .... X ...... nominal fee to low income taxpayers overriding goal of the IRS is to provide Notwithstanding the criteria detailed involved in tax controversies with the both types of services in each State, the above, all applications for clinics from IRS or that provide education on District of Columbia and Puerto Rico. To all areas will receive serious taxpayer rights and responsibilities to that end, we are also interested in consideration. Note, however, that taxpayers for whom English is a second accepting applications from applications submitted for clinics language can apply for a grant for the organizations in target States that situated outside the U.S. counties noted 2011 grant cycle. Examples of qualifying currently lack either controversy or ESL in the table above should detail how organizations include: (1) Clinical services. The chart below lists the States they will serve eligible taxpayers in the programs at accredited law, business or that are currently lacking and which noted counties. accounting schools, whose students type of service is needed: The application period shall run from represent low income taxpayers in tax May 28, 2010, through July 16, 2010. controversies with the IRS, and (2)

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organizations exempt from tax under Program Office will notify each should be the preferred and most I.R.C. § 501(a) which represent low applicant whether they are awarded a convenient method of filing tax and income taxpayers in tax controversies grant, no later than November 26, 2010. information returns. ETAAC offers with the IRS or refer those taxpayers to constructive observations about current Selection Consideration qualified representatives. or proposed policies, programs, and DATES: Grant applications for the 2011 Applications that pass the eligibility procedures, and suggests improvements. grant cycle must be electronically filed, screening process will be numerically Listed is a summary of the agenda along postmarked, sent by private delivery ranked based on the information with the planned discussion topics. contained in their proposed program service or hand-delivered to the LITC Summarized Agenda Program Office in Washington, DC by plan. July 16, 2010. The IRS’s Volunteer Income Tax 8:30 a.m.—Meet and Greet. Assistance (VITA) and Tax Counseling ADDRESSES: Send completed grant 9 a.m.—Meeting Opens. for the Elderly (TCE) Programs are applications to: Internal Revenue 11 a.m.—Meeting Adjourns. independently funded and separate Service, Taxpayer Advocate Service, The topics for discussion include: from the LITC Program. Organizations (1) Annual Report to Congress. LITC Grant Program Administration currently participating in the VITA or (2) ETAAC 1040 Modernized e-File Office, TA: LITC, 1111 Constitution TCE Programs may be eligible to apply (MeF) Subcommittee. Avenue, NW., Room 1034, Washington, for a LITC grant if they meet the criteria (3) ETAAC Security Subcommittee. DC 20224. Copies of the 2011 Grant and qualifications outlined in the 2011 Application Package and Guidelines, Note: Last-minute changes to these topics Grant Application Package and IRS Publication 3319 (Rev. 5–2010), can are possible and could prevent advance Guidelines, Publication 3319 (Rev. 5– be downloaded from the IRS Internet notice. 2010). Organizations that seek to operate site at http://www.irs.gov/advocate or VITA and LITC Programs, or TCE and DATES: There will be a meeting of ordered by calling the IRS Distribution LITC Programs, must maintain separate ETAAC on Wednesday, June 16, 2010. Center toll-free at 1–800–829–3676. and distinct programs even if co-located You must register in advance to be put Applicants filing electronically should to ensure proper cost allocation for LITC on a guest list to attend the meeting. do so through the Federal Grants Web grant funds and adherence to the rules This meeting will be open to the public, site at http://www.grants.gov. For and regulations of the VITA, TCE and and will be in a room that applicants applying via the Federal LITC Programs, as appropriate. accommodates approximately 40 Grants Web site, the Funding Number is people, including members of ETAAC TREAS-GRANTS-052011-001. Comments and IRS officials. Seats are available to FOR FURTHER INFORMATION CONTACT: The Interested parties are encouraged to members of the public on a first-come, LITC Program Office at (202) 622–4711 provide comments on the IRS’s first-served basis. Escorts will be (not a toll-free number) or by e-mail at administration of the grant program on provided so attendees are encouraged to [email protected]. an ongoing basis. Comments may be arrive at least 30 minutes before the SUPPLEMENTARY INFORMATION: sent to Internal Revenue Service, meeting begins. Members of the public may file written statements sharing Background Taxpayer Advocate Service, Attn: Deborah L. Jones, LITC Program Office, ideas for electronic tax administration. Section 7526 of the Internal Revenue TA: LITC, 1111 Constitution Avenue, Send written statements to Code authorizes the IRS, subject to the NW., Room 1034, Washington, DC [email protected]. availability of appropriated funds, to 20224. ADDRESSES: The meeting will be held at award organizations matching grants of the Internal Revenue Service, 1111 up to $100,000 per year for the Nina E. Olson, Constitution Avenue, NW., Room 2116, development, expansion, or National Taxpayer Advocate, Internal Washington, DC 20024. continuation of qualified low income Revenue Service. taxpayer clinics. Section 7526 [FR Doc. 2010–12848 Filed 5–27–10; 8:45 am] FOR FURTHER INFORMATION CONTACT: You authorizes the IRS to provide grants to BILLING CODE 4830–01–P must provide your name in advance for qualified organizations that represent the guest list and be able to show your low income taxpayers in controversies state-issued picture identification on the with the IRS or inform individuals for DEPARTMENT OF THE TREASURY day of the meeting. Otherwise, you will whom English is a second language of not be able to attend the meeting as this their taxpayer rights and Internal Revenue Service is a secured building. To receive a copy of the agenda or general information responsibilities. The IRS may award Open Meeting for the Electronic Tax grants to qualifying organizations to about ETAAC, please contact Cassandra Administration Advisory Committee Daniels on 202–283–2178 or at fund one-year, two-year or three-year (ETAAC) project periods. Grant funds may be [email protected] by Monday, June 14, 2010. awarded for start-up expenditures AGENCY: Internal Revenue Service (IRS), Notification of intent should include incurred by new clinics during the grant Treasury. your name, organization and telephone number. Please spell out all names if cycle. ACTION: Notice of Open Meeting. The 2011 Grant Application Package you leave a voice message. and Guidelines, Publication 3319 (Rev. SUMMARY: In 1998 the Internal Revenue SUPPLEMENTARY INFORMATION: ETAAC 5–2010), outlines requirements for the Service established the Electronic Tax reports to the Director, Electronic Tax operation of a qualifying LITC program Administration Advisory Committee Administration and Refundable Credits, and provides instructions on how to (ETAAC). The primary purpose of who is also the executive responsible for apply for a grant. ETAAC is for industry partners to the electronic tax administration The costs of preparing and submitting provide an organized public forum for program. Increasing participation by an application are the responsibility of discussion of electronic tax external stakeholders in the each applicant. Each application will be administration issues in support of the development and implementation of the given due consideration and the LITC overriding goal that paperless filing strategy for electronic tax administration

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will help IRS achieve the goal that foreign narcotics traffickers and their Mexico; Calle Bradley, No. 5, Col. paperless filing should be the preferred organizations on a worldwide basis, Anzures, Deleg. Miguel Hidalgo, and most convenient method of filing with the objective of denying their Mexico City, Distrito Federal, tax and information returns. ETAAC businesses and agents access to the U.S. Mexico; Acoxpa Andador 9, members are not paid for their time or financial system and to the benefits of Edificio 44, Colonia Villa, Coapa, services, but consistent with Federal trade and transactions involving U.S. Distrito Federal, Mexico; c/o regulations, they are reimbursed for companies and individuals. COMERCIALIZADORA BRIMAR’S, their travel and lodging expenses to The Kingpin Act blocks all property S.A. DE. C.V., Culiacan, Sinaloa, attend the public meetings, working and interests in property, subject to U.S. Mexico; DOB 8 Feb 1971; alt. DOB sessions, and an orientation each year. jurisdiction, owned or controlled by 2 Feb 1971; POB Culiacan, Sinaloa, Dated: May 21, 2010. significant foreign narcotics traffickers Mexico; citizen Mexico; nationality Norma Brudwick, as identified by the President. In Mexico; Passport 340038412 addition, the Secretary of the Treasury (Mexico); alt. Passport 340015480 Deputy Director, Electronic Tax Administration and Refundable Credits. consults with the Attorney General, the (Mexico); R.F.C. GOAR710208RS0 Director of the Central Intelligence (Mexico) (individual) [SDNTK] [FR Doc. 2010–12847 Filed 5–27–10; 8:45 am] Agency, the Director of the Federal BILLING CODE 4830–01–P Dated: May 21, 2010. Bureau of Investigation, the Adam J. Szubin, Administrator of the Drug Enforcement Director, Office of Foreign Assets Control. DEPARTMENT OF THE TREASURY Administration, the Secretary of Defense, the Secretary of State, and the [FR Doc. 2010–12901 Filed 5–27–10; 8:45 am] Office of Foreign Assets Control Secretary of Homeland Security when BILLING CODE 4811–AL–P designating and blocking the property of Unblocking of Specially Designated interests in property, subject to U.S. DEPARTMENT OF THE TREASURY National and Blocked Persons jurisdiction, of persons who are found Pursuant to the Foreign Narcotics to be: (1) Materially assisting in, or Office of Foreign Assets Control Kingpin Designation Act providing financial or technological support for or to, or providing goods or AGENCY: Office of Foreign Assets Unblocking of Specially Designated services in support of, the international Control, Treasury. Nationals and Blocked Persons narcotics trafficking activities of a Pursuant to Executive Order 12978 ACTION: Notice. person designated pursuant to the SUMMARY: The Treasury Department’s Kingpin Act; (2) owned, controlled, or AGENCY: Office of Foreign Assets Office of Foreign Assets Control directed by, or acting for or on behalf of, Control, Treasury. a person designated pursuant to the (‘‘OFAC’’) is publishing the name of two ACTION: Notice. individuals whose property and Kingpin Act; or (3) playing a significant role in international narcotics interests in property have been SUMMARY: The Treasury Department’s trafficking. unblocked pursuant to the Foreign Office of Foreign Assets Control On May 21, 2010, OFAC removed Narcotics Kingpin Designation Act (‘‘OFAC’’) is publishing the names of from the SDN List the individuals listed (‘‘Kingpin Act’’) (21 U.S.C. 1901–1908, 8 four individuals whose property and below, whose property and interests in U.S.C. 1182). interests in property have been property were blocked pursuant to the DATES: The unblocking and removal unblocked pursuant to Executive Order Kingpin Act: from the list of Specially Designated 12978 of October 21, 1995, Blocking Nationals and Blocked Persons (‘‘SDN 1. VALENCIA MARTINEZ, Alberto Assets and Prohibiting Transactions List’’) of the two individuals identified Alfredo, Avenida I.T.R. 2207, With Significant Narcotics Traffickers. in this notice whose property and Colonia Tecnologico, Tijuana, Baja interests in property were blocked California, Mexico; Calle Geiser DATES: The unblocking and removal pursuant to the Kingpin Act is effective 101, Colonia Colinas de Agua from the list of Specially Designated on May 21, 2010. Caliente, Tijuana, Baja California, Nationals and Blocked Persons (‘‘SDN List’’) of the three individuals identified FOR FURTHER INFORMATION CONTACT: Mexico; Avenida Hipodromo 19, Assistant Director, Compliance Colonia Hipodromo, Tijuana, Baja in this notice whose property and Outreach & Implementation, Office of California, Mexico; Calle Lomas interests in property were blocked Foreign Assets Control, Department of Altas 1480, Colonia Lomas de Agua pursuant to Executive Order 12978 of the Treasury, Washington, DC 20220, Caliente, Tijuana, Baja California, October 21, 1995. tel.: 202/622–2420. Mexico; Calle Coronado 21760, FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Colonia Mesetas del Guaycura, Assistant Director, Compliance Tijuana, Baja California, Mexico; Outreach & Implementation, Office of Electronic and Facsimile Availability Blvd. Fundadores 0, Colonia El Foreign Assets Control, Department of This document and additional Rubi, Tijuana, Baja California, the Treasury, Washington, DC 20220, information concerning OFAC are Mexico; c/o INMOBILIARIA tel.: 202/622–2490. available from OFAC’s Web site (http: TIJUANA COSTA S.A. DE C.S., //www.treas.gov/ofac) via facsimile Tijuana, Baja California, Mexico; SUPPLEMENTARY INFORMATION: through a 24-hour fax-on demand DOB 8 Apr 1949; POB Tijuana, Baja Electronic and Facsimile Availability service, tel.: (202) 622–0077. California, Mexico; C.U.R.P. # VAMA490408HBCLRL08 (Mexico); This document and additional Background R.F.C. # VAMA–490408–C6A information concerning OFAC are The Kingpin Act became law on (Mexico) (individual) [SDNTK] available from OFAC’s Web site December 3, 1999. The Act provides a 2. GOMEZ LLANOS AISPURO, Jose (http://www.treas.gov/ofac) or via statutory framework for the President to Rolando, c/o COMERCIAL JOANA, facsimile through a 24-hour fax-on impose sanctions against significant S.A. DE C.V., Guadalajara, Jalisco, demand service at (202) 622–0077.

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Background determined by the Secretary of the 1. ARBELAEZ GALLON, Gladys, c/o Treasury, in consultation with the SERVICIOS INMOBILIARIOS On October 21, 1995, the President, Attorney General and Secretary of State: LTDA., Cali, Colombia; DOB 12 Nov invoking the authority, inter alia, of the (a) To play a significant role in 1960; Cedula No. 31858038 International Emergency Economic international narcotics trafficking (Colombia) (individual) [SDNT] Powers Act (50 U.S.C. 1701–1706) centered in Colombia; or (b) to 2. BECHARA SIMANCA, Salim, c/o (‘‘IEEPA’’), issued Executive Order materially assist in, or provide financial 12978 (60 FR 54579, October 24, 1995) or technological support for or goods or SOCOVALLE, Cali, Colombia; DOB (the ‘‘Order’’). In the Order, the President services in support of, the narcotics 26 Jul 1950; alt. DOB 28 Jul 1950; declared a national emergency to deal trafficking activities of persons Cedula No. 19163957 (Colombia) with the threat posed by significant designated in or pursuant to the Order; (individual) [SDNT] foreign narcotics traffickers centered in and (3) persons determined by the 3. OCAMPO ROMAN, Carlos Jose, c/o Colombia and the harm that they cause Secretary of the Treasury, in CONSTRUCCIONES ASTRO S.A., in the United States and abroad. consultation with the Attorney General Cali, Colombia; DOB 2 Feb 1959; Section 1 of the Order blocks, with and the Secretary of State, to be owned Cedula No. 6401478 (Colombia) certain exceptions, all property and or controlled by, or to act for or on (individual) [SDNT] interests in property that are in the behalf of, persons designated pursuant United States, or that hereafter come to the Order. Dated: May 21, 2010. within the United States or that are or On May 21, 2010, OFAC removed Adam J. Szubin, hereafter come within the possession or from the SDN List the individuals listed Director, Office of Foreign Assets Control. control of United States persons, of: (1) below, whose property and interests in [FR Doc. 2010–12905 Filed 5–27–10; 8:45 am] The persons listed in an Annex to the property were blocked pursuant to the BILLING CODE 4810–AL–P Order; (2) any foreign person Order:

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Part II

Department of Agriculture Rural Business-Cooperative Service

7 CFR Part 4280 Rural Microentrepreneur Assistance Program; Interim Final Rule

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DEPARTMENT OF AGRICULTURE by the Office Management and Budget Justice Reform. In accordance with this in conformance with Executive Order rule: Rural Business-Cooperative Service 12866. The Agency conducted a (1) All State and local laws and qualitative benefit cost analysis to fulfill regulations that are in conflict with this 7 CFR Part 4280 the requirements of Executive Order rule will be preempted; (2) No retroactive effect will be given RIN 0570–AA71 12866. Based on the results of this qualitative analysis, the Agency has this rule; and Rural Microentrepreneur Assistance identified potential benefits to (3) Administrative proceedings in Program prospective program participants and accordance with the regulations of the the Agency that are associated with Department of Agriculture National AGENCY: Rural Business-Cooperative improving the availability of microlevel Appeals Division (7 CFR part 11) must Service, USDA. business capital, business-based training be exhausted before bringing suit in ACTION: Interim rule with request for and technical assistance, and enhancing court challenging action taken under comments. the ability of microlenders to service the this rule unless those regulations microentrepreneurs to whom they are specifically allow bringing suit at an SUMMARY: This interim rule establishes making their microloans. earlier time. the Rural Microentrepreneur Assistance Program. This interim rule provides Unfunded Mandates Reform Act Executive Order 13132, Federalism technical and financial assistance in the It has been determined, under Title II of the Unfunded Mandates form of loans and grants to qualified Executive Order 13132, Federalism, that Reform Act 1995 (UMRA), Public Law Microenterprise Development this interim rule does not have 104–4 establishes requirements for Organizations (MDOs) to support sufficient federalism implications to Federal agencies to assess the effects of microentrepreneurs in the development warrant the preparation of a Federal their regulatory actions on State, local, and ongoing success of rural Assessment. The provisions contain in and tribal governments and the private microenterprises. the interim rule will not have a sector. Under section 202 of the UMRA, substantial direct effect on States or DATES: This interim rule is effective Rural Development generally must their political subdivisions or on the June 28, 2010. Comments must be prepare a written statement, including a distribution of power and received on or before July 27, 2010. cost-benefit analysis, for proposed and responsibilities among the various ADDRESSES: You may submit comments final rules with ‘‘Federal mandates’’ that government levels. to this rule by any of the following may result in expenditures to State, methods: local, or tribal governments, in the Regulatory Flexibility Act • Federal eRulemaking Portal: http:// aggregate, or to the private sector of This interim rule has been reviewed www.regulations.gov. Follow the $100 million or more in any one year. with regard to the requirements of the instructions for submitting comments. With certain exception, section 205 of Regulatory Flexibility Act (5 U.S.C 601– • Mail: Submit written comments via UMRA requires Rural Development to 612). Rural Development has the U.S. Postal Service to the Branch identify and consider a reasonable determined that this action will not Chief, Regulations and Paperwork number of regulatory alternatives and have a significant economic impact on Management Branch, U.S. Department adopt the least costly, more cost- a substantial number of small entities of Agriculture, STOP 0742, 1400 effective, or least burdensome for the reasons discussed below. While, Independence Avenue, SW., alternative that achieves the objectives the majority of MDOs expected to Washington, DC 20250–0742. of the rule. This interim rule contains • Hand Delivery/Courier: Submit participate in this Program will be small no Federal mandates (under the businesses, the average cost to an MDO written comments via commercial mail regulatory provisions of Title II of the delivery or other courier service is estimated to be approximately 1 UMRA) for State, local, and tribal percent of the total mandatory funding requiring a street address to the Branch governments or the private sector. Chief, Regulations and Paperwork available to the program in fiscal years Participation in this program is 2009 through 2012. Further, this Management Branch, U.S. Department voluntary. Thus, this rule is not subject of Agriculture, 300 7th Street, SW., 7th regulation only affects MDOs that to the requirements of sections 202 and choose to participate in the program. Floor, Washington, DC 20024. 205 of the UMRA. All written comments will be Executive Order 12372, available for public inspection during Environmental Impact Statement Intergovernmental Review of Federal regular work hours at the 300 7th Street, This document has been reviewed in Programs SW., 7th Floor address listed above. accordance with 7 CFR part 1940, This program is subject to Executive FOR FURTHER INFORMATION CONTACT: Lori subpart G, ‘‘Environmental Program.’’ Order 12372, which requires Washington, Loan Specialist, Business Rural Development has determined that intergovernmental consultation with Programs, Specialty Programs Division, this action does not constitute a major State and local officials. USDA, Rural Development, Rural Federal action significantly affecting the Intergovernmental consultation will Business-Cooperative Service, Room quality of the human environment, and occur for the assistance to MDOs in 6868, South Agricultural Building, Stop in accordance with the National accordance with the process and 3225, 1400 Independence Avenue, SW., Environmental Policy Act (NEPA) of procedures outlined in 7 CFR part 3015, Washington, DC 20250–3225; 1969, 42 U.S.C. 4321 et seq., an subpart V. Assistance to rural Telephone: (202) 720–9815, E-mail: Environmental Impact Statement is not microenterprises will not require [email protected]. required. intergovernmental review. SUPPLEMENTARY INFORMATION: Executive Order 12988, Civil Justice Rural Development will conduct Reform intergovernmental consultation using Executive Order 12866 RD Instruction 1940–J, This interim rule has been determined This interim rule has been reviewed ‘‘Intergovernmental Review of Rural to be significant and has been reviewed under Executive Order 12988, Civil Development Programs and Activities,’’

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available in any Rural Development awarded. Microenterprise development TA-only grants will also be made office, on the Internet at http:// organizations seeking funding under available, on a limited basis, to MDOs www.rurdev.usda.gov/regs and in 7 CFR this program will have to submit that are not participating in the program part 3015, subpart V. Note that not all applications that include specified as microlenders. States have chosen to participate in the information, certifications, and II. Discussion of the Interim Rule intergovernmental review process. A list agreements as stated in the interim rule. of participating States is available at the The estimated information collection USDA Rural Development is issuing following Web site: http:// burden has decreased by approximately this regulation as an interim rule, with www.whitehouse.gov/omb/grants/ $38,500, from $275,844 estimated for an effective date of June 28, 2010. All spoc.html. the proposed rule to $237,339 estimated provisions of this regulation are adopted for the interim rule. The majority of this on an interim final basis, are subject to Executive Order 13175, Consultation decrease is attributable to removing a 60-day comment period, and will and Coordination With Indian Tribal enhancement grants from the interim remain in effect until the Agency adopts Governments rule. This change was made in response a final rule. This executive order imposes to public comment, but will be re- III. Changes to the Rule requirements on Rural Development in evaluated by the Agency upon receipt of the development of regulatory policies public comment on enhancement grants This section presents changes from that have tribal implications or preempt after the interim rule is published. the proposed rule. Most of the changes were the result of the Agency’s tribal laws. Rural Development has E-Government Act Compliance determined that the proposed rule does consideration of public comments on not have a substantial direct effect on USDA is committed to complying the proposed rule. Some changes, one or more Indian tribe(s) or on either with the E-Government Act of 2002 however, are being made to clarify the relationship or the distribution of (Pub. L. 107–347, December 17, 2002), proposed provisions. Unless otherwise powers and responsibilities between the to promote the use of the Internet and indicated, rule citations refer to those in Federal Government and the Indian other information technologies to this interim rule. provide increased opportunities for tribes. Thus, this interim rule is not A. Highlighted Changes subject to the requirements of Executive citizen access to government Order 13175. information and services, and for other The following list highlights some of purposes. the changes made to the rule. These Programs Affected changes are also discussed in the I. Background The Catalog of Federal Domestic section specific change portion that Assistance Program numbers assigned to Title VI, Section 6022 of the Food, follows this list. All changes resulting this program is 10.870. Conservation, and Energy Act of 2008 from public comments are explained in (Pub. L. 110–246, June 18, 2008) (the detail in that portion of the preamble. Paperwork Reduction Act Act) established the Rural • Creation of a technical assistance Pursuant to the Paperwork Reduction Microentrepreneur Assistance Program only grant program for non-lending Act of 1995 (44 U.S.C. Chap. 35; see 5 (RMAP). This interim rule implements MDOs. CFR part 1320), the information the program to make loans and grants to • Deferral of the enhancement grant collection provisions associated with microenterprise development category. this interim rule have been submitted to organizations (MDOs) to support • Increasing the maximum size of the Office of Management and Budget microentrepreneurs in the development technical assistance grants. • (OMB) for approval as a new collection and ongoing success of rural Implementation of a simplified microenterprises. interest rate structure. and assigned OMB number 0570–XXXX. • In the publication of the proposed rule Under this program, the Agency will Removing the maximum margin on October 7, 2009, the Agency solicited make available to MDOs direct loans requirement on loans made by the and grants. As provided in the Act, microlender to the microentrepreneur. comments on the estimated burden. The • Agency received no public comment MDOs that qualify for direct loans Implementation of a minimum letters in response to this solicitation. (participating microlenders) will use the score for qualification as a microlender This information collection requirement funds borrowed from the Agency to or grantee. • Adjusting the cost share and will not become effective until approved make fixed interest rate microloans of matching requirements, including by OMB. Upon approval of this not more than $50,000 at a term not to limiting the cost share requirement to information collection, the Agency will exceed 20 years to microentrepreneurs loans and the matching requirement to publish a notice in the Federal Register. for startup and growing rural Title: Rural Microentrepreneur microenterprises. grants. • Allowing microlenders two cost Assistance Program. The Agency will also make available OMB Number: 0570–XXXX technical assistance (TA) grants for share options for establishing the rural (assigned). microlenders and technical assistance microloan revolving fund. Type of Request: New collection. only (TA-only) grants for entities that B. Section-Specific Changes Expiration Date: Three years from the provide training and technical date of approval. assistance to microentrepreneurs and Purpose and Scope (§ 4280.301) Abstract: The collection of microenterprises but do not wish to There were two primary changes to information is vital to Rural fund microloans under this program. this section: Development to make decisions The TA grants will be annual grants First. The Agency added discussion regarding the eligibility of projects and made to participating microlenders to concerning the availability of technical loan and grant recipients in order to provide business based training and assistance-only grants as one of the ensure compliance with the regulations technical assistance to types of funding to be available under and to ensure that the funds obtained microentrepreneurs that have received the program (§ 4280.301(a)(4) and (d)). from the Government are being used for or are seeking a microloan from a Second. The Agency clarified that the purposes for which they were microlender under this program. participating microlenders can use the

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TA grants to provide technical ‘‘active duty’’ after the word ‘‘their’’; and Loan Provisions for Agency Loans to assistance not only to to remove to the word ‘‘enlisted’’. Microlenders (§ 4280.311) microentrepreneurs who have actually Nonprofit entity. Has been simplified A number of changes have been made ‘‘ received a loan from the microlender, and reference to the U.S. Internal to this section, including grammatical ’’ but also to microentrepreneurs who are Revenue Service has been removed. changes and redesignation of seeking a loan from the microlender Rural microenterprise. Revised the paragraphs. The substantive changes are ‘‘ ’’ (§ 4280.301(a)(2)). term to microenterprise and expanded described below: As the purpose of this Program is to the definition for clarity. First. The Agency revised the Rural microloan revolving fund. support the development and ongoing provisions associated with the cost Revised for clarity. success of rural microentrepreneurs and share requirements by applying them Significant outmigration. Removed microenterprises, microentrepreneurs only to loans and identifying two because the term is not used in the are encouraged to contact the Agency options for how microlenders can interim rule for the reasons discussed in for a list of MDOs in or near their establish Rural Microloan Revolving the responses to comments. geographic area that are participating in Funds (RMRFs). The provisions also State. Added to clarify the this Program. allow microlenders the option of setting applicability of the program. Definitions and Abbreviations up multiple RMRFs (paragraph d)). (§ 4280.302) Review of Appeal Rights and Because of this revision, a conforming Administrative Concerns (§ 4280.304) change was made to paragraph (c) to The Agency made changes to the refer to ‘‘RMRF’’ funds instead of definitions section of the rule, including In paragraph (a), the words ‘‘a microlender, or grantee MDO’’ were ‘‘Agency loan’’ funds. adding several new definitions. Except Second. The provisions concerning for terms in which the changes were added after the word ‘‘MDO’’ to clarify the applicability of this paragraph. the term of a loan have been recast to grammatical, the following identify each state that a term shorter than 20 years affected term. Nondiscrimination and Compliance will be considered if requested by the Agency personnel. Because no Agency With Other Federal Laws (§ 4280.305) applicant MDO and must be agreed to personnel are eligible for a microloan ‘‘ ’’ by the microlender and the Agency under the interim rule, revised by In paragraph (a), Applicant was ‘‘ (paragraph (e)(3)). removing the last clause (‘‘who are more replaced with Any entity receiving ’’ Third. The number of days loan than 6 months from separating from the funds under this subpart to clarify the applicability of this paragraph. closing must take place has been revised Agency’’) because it is no longer to within 90 days, rather than 60 days necessary. Forms, Regulations, and Instructions as proposed, before funds would be Close relative. Added to clarify the (§ 4280.306) forfeited (paragraph (e)(8)). implementation of § 4280.323(d) This section has been added to Fourth. Revised the number of day concerning the restrictions on the use of identify where applicants can access microlenders have to make at least one loan funds. forms, regulations, and instructions microloan from within 30 days to Default. Has been simplified for noted within the subpart. within 60 days of disbursement purposes of clarity. (paragraph (e)(10)). Further, failure to Eligible project cost. Has been added Program Requirements for MDOs make a microloan within this time as part of the implementation of the cost (§ 4280.310) period may result in the microlender share requirement. This section has been revised and not receiving any additional funds from Facilitation of access to capital. To redesignated. The substantive changes the Agency and may result in the clarify this term, the words ‘‘access to’’ are described below: Agency demanding return of any funds have been added. First. The citizenship requirements already disbursed to the microlender. Fiscal year. Added the word ‘‘Federal’’ have been clarified to apply only to non- Fifth. Revised substantially the for clarity. profit entities (paragraph (a)(2)), not interest rate provisions. In the interim Indian tribal government employee. American Indian tribes or United States rule, each microloan made to a Has been removed as a conforming public institutions of higher education. microlender during the first five years of change. Second. In addition to moving the participation will bear an interest rate of Loan loss reserve fund. Revised by requirements specific to potential 2 percent and each loan made to the removing text not associated with the microlenders into paragraph (a)(4), the microlender after the fifth year of definition of the term, but which was Agency has added a new provision participation will bear an interest rate of also covered elsewhere within the rule. (paragraph (a)(4)(ii)) regarding obtaining 1 percent (paragraph (e)(12)). Microborrower. Added for an attorney’s opinion regarding the Sixth. Revised several dates in the clarification in implementing the rule. microlender’s legal status and its ability section, including the date when the Microentrepreneur. Revised to clarify to enter into program transactions at the Agency will calculate and amortize the that both the microentrepreneur and the time of initial entry into the program. microlender’s debt after the deferral microenterprise to be assisted under the Third. A minimum score threshold period (e.g., (paragraph (e)(13)). program must be located in a rural area. has been added for MDOs to be Seventh. Removed the provisions In addition, the phrase ‘‘business considered for receiving an award under associated with negative amortization financing’’ was replaced with ‘‘business this subpart (paragraph (b)). Generally, and reamortization (proposed capital.’’ Lastly, a sentence was added to applicants must receive at least 70 § 4280.311(d)(15)(i) and (ii)). note that a microentrepreneur who has points out of 100 in order to be eligible Eighth. Modified the rule to indicate received a loan under this program may to receive an award under the program. that loans can be used to recapitalize also be referred to as a microborrower Fourth. The Agency removed ‘‘is existing Agency funded RMRFs within the rule. delinquent in meeting U.S. Internal (paragraph (f)(2)). Military personnel. Revised to add the Revenue Service (IRS) requirements’’ Ninth. Added a provision to provide words ‘‘or grade’’ after the word ‘‘rank’’; from the list of provisions identifying microlenders 30 days to replenish the ‘‘United States’’ after the word ‘‘active’’; ineligible applicants. loan loss reserve fund (LLRF) if it falls

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below the required amount (paragraph maximum TA grant amount for a • Revising and simplifying the (g)(2)(i)). microlender is now calculated as 25 requirement associated with separate Tenth. Removed the phrase ‘‘and percent of the first $400,000 of applications to indicate that MDOs may partially funded’’ in paragraph (g)(4). outstanding microloans owed to the only submit and have pending for Eleventh. Added a conforming change microlender under this program, plus an consideration, at any given time, one to the requirement for maintaining a additional 5 percent of the outstanding application, regardless of funding minimum 100 percent of the amount loan amount owed by the category; and owed by the microlender to the Agency microborrowers to the lender over • Requiring all applicants seeking for those microlenders with 3 years or $400,000 up to and including $2.5 status as a microlender to identify less experience (paragraph (h)(2)). million. which cost share option(s) they will use Twelfth. Added a provision requiring Second. The addition of provisions to set up their RMRF(s) and the microlenders to provide Agency access that a microlender who expends more amount(s) and source(s) of the non- to any of the microlender’s records than 10 percent of its TA grant funding Federal share. pertaining to any microloan made to the on administrative expenses will be microlender under this program. This considered in performance default and Application Scoring (§ 4280.316) was added to enable the Agency to may have to forfeit funding (paragraph A number of changes have been made better enforce the provision of this (b)(3)(iii)). program (paragraph (h)(7)). to this section, including grammatical Third. Provisions have been added to changes, redesignation of paragraphs, Thirteenth. Added a provision address funding of the TA-only grants requiring prior written Agency approval and clarification as to whether the (paragraphs (a)(1)(ii) and (c)). information to be submitted applied to before the microlender makes any key Fourth. The matching requirements personnel changes (paragraph (h)(8)). rural or non-rural microentrepreneurs have been revised (paragraph (a)(2)). and microenterprises, or both, and to Loan Approval and Closing (§ 4280.312) Fifth. The Agency added a provision microloans or loans or the microlenders requiring prior written Agency approval This section has been added and is entire portfolio. The substantive before the microlender makes any key comprised of proposed § 4280.311(g) changes are described below: personnel additions (paragraph (a)(5)). and (h) for clarity. Changes to these The Agency notes that, except for Sixth. The grant oversight provisions paragraphs are: applications from microlenders with were moved from this section and • The promissory note and security more than 5 years experience with this consolidated with those in § 4280.320. agreement have been added to the list of program: items that may be used to demonstrate MDO Application and Submission 1. The maximum number of points that the RMRF and LLRF have been Information (§ 4280.315) that each application can receive is 100; established and the LLRF has been, or will be, funded as described in Most of the changes to the section 2. Each application will be scored § 4280.11(f)(4) prior to loan closing reflect a reorganization of the provisions against the criteria specified in (paragraph (c)(1)). found in the proposed rule. Substantive § 4280.316(a) for which it can receive a • This section has been clarified to changes include: maximum of 45 points; • explain what constitutes ‘‘sufficient Redefining less experienced MDOs 3. Each application will be scored evidence’’ to demonstrate that no law as those with 3 years or less experience, against the criteria specified in suits are pending or threatened that rather than less than 3 years experience, § 4280.316(b), (c), or (d), as applicable, would adversely affect the security of and redefining more experienced MDOs for which it can receive a maximum of the microlender when the security as those with more than 3 year 55 points; and instruments are filed (paragraph (c)(3)). experience, rather than 3 or more years experience; 4. An application must receive at least Grant Provisions (§ 4280.313) • Requiring certificates of good 70 points in order to be eligible. This section has been redesignated standing to be not more than 6 months Applications from lenders with more (proposed § 4280.312) and a number of old; than 5 years experience in this program changes have been made, including • Adding documentation will be scored on a pass/fail basis. grammatical changes and reordering of requirements for TA-only grant Those applications that pass will be paragraphs. The substantive changes are applications; assigned a score of 90 points. described below: • Requiring documentation that the Figure 1 illustrates the RMAP scoring First. The calculation of the maximum applicant has certified to the Agency process. TA grant amount has been revised such that it cannot find credit elsewhere that the maximum annual TA grant to (pursuant to the requirements as Application Requirements for All any one microlender could be $205,000 provided in the Consolidated Farm and Applicants (§ 4280.316(a)) (paragraphs (a)(1)(i) and (b)(2)). The Rural Development Act (Sec. 333(1)); BILLING CODE 3410–XY–P

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BILLING CODE 3410–XY–C

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Changes to these application Application Requirements for MDOs in order to facilitate the distribution of requirements are mostly editorial in Seeking To Participate as RMAP limited program funds throughout rural nature; there were no changes in the Microlenders With 3 Years or Less America, because the Agency does not basic scoring criteria or points to be Experience (§ 4280.316(c)) want program funds to be concentrated awarded. Substantive changes included: in a few states. • There are no significant substantive • Indicating that there should be a changes to the scoring criteria for these Provisions for application packages corresponding resume for each of the have been added (paragraph (a)(1)). applications other than a redistribution • key individuals noted and named on the of points. Provisions associated with internal organizational chart; procedures were removed (proposed • Noting that the mission statement Application Requirements for MDOs § 4280.317(c) and (d)). does not need to be submitted twice if Seeking Technical Assistance-Only • Clarification that awardees have 90 it is already included in other submitted Grants (§ 4280.316(d)) days to close or forfeit their funding documents; and This is a completely new set of (paragraph (d)). • Deleting ‘‘as well as the needs of the scoring criteria required by the addition Grant Administration (§ 4280.320) service area’’ and reference to areas of to the interim rule of providing significant outmigration from the technical assistance grants to MDOs that The changes made to this section scoring criterion addressing information are otherwise not participating as a addressed presentation of the regarding the geographic area to be microlender. The criteria included requirements and updating and revising served. address: History of provision of the forms to be submitted. This section now also states that if a microlender has Program Loan Application technical assistance to microentrepreneurs, ability to provide more than one grant from the Agency, Requirements for MDOs Seeking To a separate report must be made for each. Participate as RMAP Microlenders With technical assistance to More Than 3 Years of Experience microentrepreneurs, technical Loans From the Microlenders to the (§ 4280.316(b)) assistance plan, and proposed Microentrepreneurs and administrative expenses to be spent Microenterprises (§ 4280.322) There were several important changes from TA grant funds. associated with the scoring criteria for A number of changes have been made these applications, including: Re-Application Requirements for to this section, including grammatical • Removing reference to demographic Participating Microlenders With More changes and reordering of paragraphs. group and replacing that term with Than 5 Years Experience as a The substantive changes are described reference to racial and ethnic minorities, Microlender Under This Program below: women, and the disabled in Figure 1; (§ 4280.316(e)) • The provision limiting the margin • Replacing reference to the U.S. The substantive changes to this of the interest rate on the loan made to Census Bureau with the ‘‘applicable section were to: the microborrower has been deleted. decennial census for the State’’ • Replace ‘‘the number of businesses’’ Instead, the microlender may establish (paragraph (b)(1)(v)); with ‘‘the number and percent of its margin of earnings but may not • Replacing ‘‘race, ethnicity, and program microentrepreneurs and adjust the margin so as to violate Fair socio-economic status’’ with ‘‘racial and microenterprises’’ and replace ‘‘after Credit Lending laws. In addition, ethnic minority status’’ and indicating loan repayment’’ with ‘‘after microloan margins must be reasonable so as to that disability will be defined as under disbursement’’ in paragraph (e)(1)(iii); ensure that microloans are affordable to The Americans with Disabilities Act • Add to paragraph (e)(2) ‘‘over the the microborrowers (paragraph (b)(3)). • under the scoring criterion for diversity life of its participation in the program’’ The provisions in § 4280.322(c) (paragraph (b)(1)(v)); to indicate the appropriate timeframe concerning insurance requirements have • Replacing ‘‘percentage points’’ with that data are to be reported; been revised by removing ‘‘except that ‘‘percent’’ (paragraph (b)(1)(v)); • Provide better guidance on * * * excessive.’’ • • Removing the scoring criterion for requirements for assessing overall The requirement that a outmigration and adding ‘‘non-rural’’ to program performance with regards to microborrower has been turned down the total number of microentrepreneurs the successful use of TA dollars has been removed and replaced with that received both microloans and TA (paragraph (e)(2)(iii)); more appropriate options for meeting services in the scoring criterion for • Replaced proposed the test that have a lesser impact on the history of provision of technical § 4280.316(e)(2)(iv), because it is microborrower’s ability to build a assistance to microentrepreneurs duplicative of § 4280.316(e)(1)(iii), with favorable credit history. (paragraph (d)), (paragraph (b)(3)); a request for a statement discussing the In the introductory text of paragraph (f), • Removing ‘‘socially-disadvantaged’’ need for more funding; and the rule clarifies that Agency loan funds and clarifying that the percentage of • Removing proposed may be used for any legal business rural entrepreneurs that received both § 4280.316(e)(2)(vi) regarding other such purpose provided it is not identified in microloans and TA services will be issues as deemed appropriate. § 4280.323 as ineligible. broken down by racial and ethnic • The rule includes clarification on minority, disabled, and gender in Selection of Applications for Funding the eligibility of military personnel for paragraph (b)(3)(iii); and (§ 4280.317) funding under the program (paragraph • Adding a new scoring criterion on A few changes have been made to this (g)). The rule also clarifies that Indian the ratio of TA clients that also received section as briefly described below: Tribal government employees will be microloans during each of the last three • The introductory text is revised to treated as any other MDO employee years (paragraph (b)(4)). clarify that all applications will be regarding eligibility for a microloan. With the removal of outmigration as scored on a 100-point scale and will be a scoring criterion for loans and the ranked together and to allow the Ineligible Microloan Purposes addition of the new scoring criterion, Administrator to prioritize applications (§ 4280.323) the points associated with most of the that score the same for geographic A few changes have been made to this criteria also changed. diversity. This latter provision is added section:

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• Reference to ‘‘his/her family in reversing the economic and financial ‘‘enhancement grants’’ provision (of the members’’ has been removed (paragraph crisis in rural communities. With many proposed rule) is defined in terms of (d)); rural areas underserved or not served at ‘‘microlenders’’ and ‘‘projects’’ and • The paragraph on military all by MDOs, the Agency should be activities that enhance the microlenders’ personnel has been moved to doing all it can to recruit as many capabilities, implying that funds will go § 4280.322; qualified organizations as possible to exclusively for existing MDOs involved • Reference to swimming pools has become engaged in rural training and in lending. According to the been removed from (paragraph (l); microentrepreneur lending. The commenters, this upsets the intended • Proposed paragraphs (o) and (p) proposed rule’s scoring should balance in RMAP between training, have been removed; and encourage the effort to build MDO technical assistance (not connected to • Lines of credit and subordinated networks to serve these communities loans to MDOs) and lending, and liens were added as an ineligible with as many organizations with the between existing MDOs and developing purpose (paragraphs (n) and (o)). necessary expertise as possible. a network of MDOs in unserved and Response: The Agency acknowledges IV. Discussion of Comments underserved rural areas. The the commenter’s support. commenters suggested that the final rule The proposed rule was published in Funding Allocations restore the intended balance in both the Federal Register on October 7, 2009 respects. (74 FR 51713), with a 45-day comment Comment: Four commenters stated Response: With regard to the period that ended November 23, 2009. that the terms of the proposed rule make comment concerning training and Comments were received from 48 it difficult to determine how USDA will technical assistance, the Agency agrees commenters yielding over 450 make decisions on applications that that microlenders who are not individual comments on the proposed seek funding from different components participating in RMAP as lenders rule, which have been grouped into (the so-called ‘‘enhancement grants’’ and should have access to technical similar categories. Commenters the loans/TA grants) without stating assistance grants in order to provide included members of Congress, Rural how much of available funding goes to such assistance to rural Development personnel, each component. The commenters microentrepreneurs. Thus, the Agency microenterprise development recommended that the final rule should has included in the rule § 4280.301 organizations, trade associations, states, contain information concerning program provisions for MDOs who are otherwise universities, environmental funding, including the subsidy rate that not participating in the program to be organizations, and individuals. As a will be used to calculate the RMAP loan eligible to receive technical assistance result of some of the comments, the program level and legislative intent in grants. Agency made changes in the rule. The the USDA FY 2010 appropriations bill. With regard to the comment Agency sincerely appreciates the time If this information is unattainable or concerning existing MDOs and and effort of all commenters. Responses otherwise not available, the commenter developing a network of MDOs, the to the comments on the proposed rule recommended that all RMAP dollars not Agency disagrees with the commenters are discussed below. previously identified by Congress as that the rule does not address both. As loan subsidy dollars be used to provide provided in both the proposed rule and General TA training grants to MDOs. this interim rule, MDOs with less than Comment: Several commenters Response: The Agency considered a 3 years experience are eligible to provided general support for the standard division among the program compete for program funds. Thus, this program, and positive discussion of components and determined that such a would allow for developing a network other microenterprise development balance should be adjustable in future of MDOs. However, to further meet the activities and programs to address rural years based on market demands and need for developing a network, the need. conditions. Therefore, the Agency has Agency is requesting that comments and One commenter provided general not included program funding in the suggestions regarding the delivery of an support for the program’s efforts to rule with one exception. As noted later enhancement grant program be build the capacity of the in this preamble, the Agency plans to submitted (see Section V of this microenterprise development industry use up to 10 percent of program funding preamble). to achieve new levels of performance each year for technical assistance only and effectiveness. Due to tightened grants for MDOs that are not otherwise Administrative Management credit markets as a result of the participating in the program. The Comment: One commenter expressed recession, microlenders face increased Agency will publish program levels concern that the interest rate criteria demands to provide capital and annually in a Notice of Funding specified were too complex for the technical assistance to both start-ups Availability (NOFA). current automated systems to monitor or and existing microentrepreneurs. effectively manage. Several commenters stated that they Existing MDO Emphasis Response: During the development of strongly support this commenter’s Comment: Several commenters were the regulation, the program area has comments on the proposed rule. concerned that the proposed rule been engaged in system requirements Response: The Agency appreciates the applies exclusively to existing MDOs, discussions with Agency information support for the program reflected by the especially those heavily involved in technology staff. The Agency anticipates commenters, acknowledges the lending. The commenters stated that that, by the time the first applications microenterprise development work that one of the purposes of the law is to are received, systems (the Rural Utilities has produced positive activity both in build and enhance microenterprise Loan Servicing System (RULSS)) will be the United States and abroad for several services in rural areas, particularly ready to accommodate the interest rate decades, and looks forward to remote rural areas and believe the provisions in the rule. formalizing the Agency’s participation application and scoring emphasis on Comment: One commenter stated that in this economic development sector. MDO history (particularly an MDO’s the program should be aligned with Comment: One commenter stated that lending history) implies funding only existing Rural Development programs they believe RMAP will do much good for existing MDOs, and the and administrative capabilities. The

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commenter believes that the Loans, TA Grants, Enhancement Grants states that programs must identify Administrative requirements overall are Comment: A number of commenters prospective borrowers before they can too complex to manage within existing believe that the proposed rule should be receive loan funds from USDA. The Agency systems and substantially out of revised to maintain the intent of result is that more time must be spent sync with other Agency programs to be Congress by restoring the balance completing paperwork, leaving less time cost-effective to the taxpayer for between the funding for loan capital and to serve microentrepreneurs. These management. According to the funding for training and technical rules ignore the flexibility needed to help microentrepreneurs be successful. commenter, the proposed rule must assistance. As one claimed, the One commenter believes that the align payment and deferral options with proposed rule is in ‘‘direct contradiction proposed rule does not reflect the reality the Intermediary Relending Program ’’ to the law because it eliminates all of how lending to microentrepreneurs (IRP) in order to be cost-effective. grants to microenterprise programs to Response: The Agency disagrees with actually works. provide business training to existing Another commenter believes that the the commenter’s characterization of the and prospective microentrepreneurs. approach is far too elaborate and proposed RMAP regulation. The Agency The commenter stated that, by unnecessarily complex, particularly in is in the process of placing its eliminating the training funds (and by the way RMAP loans are structured and administrative systems under RULSS. capping technical assistance funds), the reamortized and in the scoring system. RMAP will be aligned with other similar proposed rule will make it difficult for The commenter stated there is the programs to leverage electronic organizations to fund the staff needed to maximum need for flexibility and reporting resources with the objective of work with borrowers and other clients. latitude for the program to succeed. improved information-gathering and Another commenter stated that the Three of the commenters stated that more efficient program management. proposed rule directs most of the RMAP the rule, as proposed, will add to the The RMAP program will begin the funds to loan capital and gives short administrative burdens on MDOs and program area’s move to newer, more shrift to support for training, financial decrease the portion of staff time that flexible, more responsive administration planning, and critical support services can be devoted where it should be of the program. This is expected to that MDOs offer. The proposed rule devoted—servicing loans, providing result in improved electronic reporting, does this by limiting the purposes of technical assistance and conducting less paper-based program grants to support microenterprise outreach that brings more administration, and mitigation of development and by capping the microentrepreneurs in the door for duplicative or unnecessary work, maximum technical assistance grant an services. thereby allowing RMAP to be MDO can receive at $100,000, rather Response: It is not the intent of the implemented efficiently. than 25 percent of the MDO’s total Agency to require microlenders to Furthermore, RMAP is different from balance of microloans. identify prospective borrowers before the IRP and, thus, certain provisions Response: The Agency disagrees that they can receive loan funds from the will not align intentionally with the IRP. the proposed rule was in direct USDA. There is no such requirement in Finally, the Agency believes that the contradiction to the law, because it the proposed rule. Similarly, the RMAP provisions are very similar to provided for loans and for grants for restrictions placed on the relationship other existing Federal microenterprise both technical assistance to between the microlender and the programs and the participating entities microentrepreneurs (referred to as microborrowers are minimal and stem will understand the provisions technical assistance grants) and training from statutory requirements, such as the contained in RMAP. of MDOs staff to enhance their maximum loan amount, the maximum Comment: One commenter believes capabilities in providing technical term of a microloan, and the provision that the rule as proposed could cause assistance to their clients (referred to as of technical assistance and training for issues with Office of the Inspector enhancement grants). Nevertheless, the microborrowers. The proposed rule did, General (OIG) audits. Agency, as noted later in this preamble, however, require that the microlender has added in § 4280.301 that technical Response: The Agency believes that make a microloan within 30 days of assistance grants may be made available OIG audits are helpful in terms of receipt of funds from the Agency. To the to MDOs that are not otherwise suggesting program improvements. It extent that the commenter may be participating in RMAP. The Agency further believes that programs that are referring to this policy, the interim rule believes that this change provides for an efficiently and effectively managed will instead adopts a 60 day requirement to improved program and satisfies the have few negative comments as the provide microlenders more flexibility. concerns expressed by these result of such audits. commenters. Notice of Funding Availability Micromanagement Finally, the Agency understands that Comment: Two commenters proposed those seeking technical assistance that the Agency set a timeline for a Comment: One commenter stated that funding would prefer no funding cap. NOFA that both reflects the as proposed there is too much micro- The Agency believes that, in order to Congressional funding process and management in the program, especially fund more MDOs in rural areas allows for greater accountability to if the MDO is applying for the minimum nationwide, a cap is necessary. RMAP participants. The commenter loan amount of $50,000. According to However, as later discussed, the recommended that a NOFA be made the commenter, the reporting burden is maximum amount of technical either no later than 45 days after the too great to make it worth their while. assistance grants has been increased. enactment of the appropriate spending Response: Reporting requirements for bill or no later than 30 days after the Inflexibility this program have been kept to a disbursement of funds and/or budget minimum as a result of instituting an Comment: Several commenters stated authority to USDA. electronic reporting system. Reporting is that the proposed rule is inflexible and Response: The Agency disagrees that flexible, automated, and easily accessed will unnecessarily increase expenses for it is necessary to set a timeline for by lenders, grantees, and agency microenterprise service providers. To issuing a NOFA, in part because there personnel. illustrate their concern, one commenter is no relationship between when the

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Agency will accept applications and would mean that entrepreneurs that documentation required to be submitted when it issues a NOFA. It is the have not received a microloan from an by an MDO for acceptance into the Agency’s intent, however, to publish MDO under this program would not be program.’’ RMAP NOFAs as early as possible each able to receive technical assistance. Response: The Agency disagrees with fiscal year. This comment is associated Response: The Agency agrees that it is the commenter’s suggestion. The with the administration of RMAP and in the best interest of the program not application is what is submitted, not not with the proposed rule itself. Thus, to limit technical assistance only to what is required. Section 4280.315 no changes have been made to the rule those microborrowers who actually makes clear what items are required for as a result of this comment. receive a microloan under RMAP. a complete application. Therefore, the Therefore, the Agency has revised the Agency has not revised this definition. MDO Administrative Costs sentence for clarity to indicate that a Comment: One commenter believes microentrepreneur seeking a microloan Business Incubator that the Agency’s expectation, noted would also be eligible to receive Comment: One commenter stated that under its Regulatory Flexibility Act technical assistance. a business incubator is not an discussion, that participating MDOs will organization, but is generally a ‘‘thing’’, Definitions and Abbreviations— be able to cover most of their such as a building. (§ 4280.302) administrative costs by ‘‘the interest rate Response: The Agency disagrees with spread between the one percent loan Administrative Expenses the commenter. As used in this interim from Rural Development and the Comment: One commenter rule, a business incubator is an interest rate on loans made to the recommended removing the limitation organization that can perform such tasks microentrepreneurs by the MDO’’ seems on the percent of TA grant funding that as renting space, using equipment, etc. to be in conflict with subsequent may be used to fund expenses because A building cannot do such tasks. The sections of the proposed rule that it has nothing to do with the definition. Agency, however, is adding to the severely limit MDO uses of interest Response: While the Agency does not definition the condition that, to be income and must be clarified. disagree with the commenter’s considered a business incubator, the Response: The Agency agrees with the observation, the Agency believes that it organization provides temporary commenter that the statement in the is helpful here to explain the limitations premises ‘‘at below market rates.’’ This is preamble to the proposed rule was in to the public and Agency staff. For these a condition that the Agency overlooked error. The Agency has not repeated this reasons, and because it does ‘‘no harm,’’ when proposing the rule and believes is statement in this preamble. the Agency has not revised the an important aspect of a business Intermediary Relending Program definition as suggested by the incubator. commenter. Comment: One commenter Default recommended that the program be Agency Personnel Comment: One commenter asked why delivered under the published IRP Comment: Two commenters asked a definition of default was included in regulations with the exception that the why there was a distinction made in the the proposed rule. term must be 20 years and that definition for personnel who are more Response: The Agency is including a microborrowers comply with the criteria than 6 months from separating from the definition of default for clarity because in the proposed rule (i.e., proposed Agency. One of the commenters also its history in the administration of other §§ 4280.322 and 4280.323). The asked how someone would know that loan programs has shown that defaults commenter further suggested that RMAP they are more than 6 months from other than the more common monetary grant funds be administered under the separating from the Agency. One of the default (e.g., nonperformance is a form published Rural Business Enterprise commenters believes that it is of default) can and do occur. Grants regulations with the exception inappropriate, if not illegal, for the Comment: One commenter stated the that the RMAP grants would be awarded Agency to ask its staff when they plan definition of monetary default (found in in the proportional amounts indicated to separate and the other commenter paragraph (i) of the proposed definition in the proposed rule (25 percent of the suggested deleting this phrase. of default) is extremely and RMAP loan) and accompany RMAP loan Response: As proposed, the Agency unnecessarily complex. Further, awards. According to the commenter, intended to allow Agency personnel according to the commenter, it is adopting existing, well-understood, who knew that they would be leaving inconsistent with current Agency functional program regulations will the Agency within 6 months to apply for practice of annual installments for allow rapid deployment and operation and receive RMAP funds. This principal and interest or semi-annual of the important RMAP initiative. distinction was intended to parallel the installments for interest. Response: The Agency disagrees with provisions for military personnel Response: The Agency agrees that a the commenter’s recommendation to elsewhere in the proposed rule. After simpler definition is sufficient and has administer RMAP under the IRP and considering this and other similar revised the definition accordingly. The RBEG regulations because of the many comments, the Agency has determined Agency notes that it will collect statutory differences between the that a ‘‘blanket’’ prohibition for all payments on a monthly basis via an programs. Agency employees while they are still automated system. with the Agency is easier to implement Purpose and Scope—(§ 4280.301) Fiscal Year and consistent with other program Comment: In referring to proposed regulations. The Agency, therefore, has Comment: One commenter stated that § 4280.301(b), one commenter expressed removed the language from the rule. ‘‘fiscal year’’ should be clarified as concern that the sentence ‘‘Technical ‘‘Federal fiscal year’’ because most assistance grants will be awarded to Application organizations work off of either the microlenders to provide technical Comment: One commenter suggested calendar year or their individual fiscal assistance to microentrepreneurs who adding ‘‘required to be’’ after the word year. have received one or more microloans ‘‘documentation’’ in the definition, so Response: The Agency agrees with the from the MDO under this program’’ that it would read: ‘‘The forms and commenter and has revised the rule to

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more clearly identify the fiscal year as application (example: statewide home, they are concerned that an being the Federal fiscal year. microenterprise associations, statewide entrepreneur that provides a service or community action agency/programs). operates a microenterprise in a rural MDO According to the commenters, such area may be disqualified from Comment: One commenter suggested collaboratives could prove valuable in participation under this definition. adding quasi-public entities that are unserved and underserved rural areas, Response: The Agency disagrees with formed by State or other governmental and bring together efficient and effective the commenters’ recommendation. It is statutes whose purposes for operation microenterprise development services the Agency’s intent that both the are consistent with the program as among multiple MDOs. Potential microenterprise and microentrepreneur eligible MDOs. According to the collaborations are likely to be non-profit be located in a rural area, so both commenter, many quasi-public state entities as contained in the definition of definitions have been revised to clearly agencies operate business and micro- MDO in the proposed rule. The state this. The Agency has not revised business programs and, therefore, they commenters suggest that the final rule this definition as suggested by the need to be included as eligible entities. be clarified to allow applications by commenter. Another commenter believes the term such collaborations where other ‘‘non-profit’’ is used rather ambiguously eligibility requirements are met. Scoring Military Personnel in the proposed rule and recommended of such collaborative applications Comment: One commenter was that the Agency provide a clarification should consider the combined strengths concerned that the proposed rule was to ensure that public non-profit entities, and experiences of the collaborators. purposefully eliminating National such as Councils of Governments, Three of the commenters further Guard employees that are not deployed. Regional Planning Commissions and stated that the Agency should apportion The commenter pointed out that there Economic Development Districts, are 20 percent of available funds to was an administrative notice issued for eligible to apply for program assistance enhancement grants and allow the IRP that addressed IRP loans to as MDOs. The commenter stated that collaborations and associations that certain military personnel. The many of these entities are experienced have proven track records in providing commenter, therefore, recommended lenders as they currently operate USDA capacity building services to MDOs to that RMAP be as inclusive as it can to IRP, a program similar to RMAP, which apply for these grants. Enhancement service members. also provides valuable assistance for programs are an opportunity to build Response: Although it was not the financing business and economic the capacity of MDOs to reach more intent of the Agency, the Agency agrees development activity in rural regions of clients with stronger and more effective with the commenter that National Guard this country. services. This involves training trainers; employees that are not deployed would A third commenter requested that curriculum development; increasing have been excluded from the program. local governments be included as access to markets; quality assessment The Agency has revised the definition to eligible applicants for program funds. and evaluation; and much more. One of remove the reference to ‘‘enlisted’’ and The commenter asked why their local the purposes of this legislation is to added other provisions (see government organization is not create a strong network of MDOs. § 4280.322(g)) that would make such considered the equivalent of an MDO, or Collaborations and associations serve to personnel eligible under this program. at least eligible to apply for the funding build the strength of the entire industry. as USDA has considered them capable Response: The Agency is not opposed Nonprofit Entity of providing these services in the past to collaborative MDO efforts. MDOs Comment: One commenter when they awarded funding. The selected to participate in the program recommended removing ‘‘that has commenter suggests the language of the are encouraged to develop community- applied for or received such designation RMAP be changed to refer to MDOs and based partnerships. However, such from the U.S. Internal Revenue Service’’ other entities that provide assistance to partnerships and collaboratives will be as a criterion for defining a non-profit microentrepreneurs. developed outside of the relationship entity. According to the commenter, this Response: Section 379E of the between the Agency and the criterion is inconsistent with all other Consolidated Farm and Rural participating MDOs. Rural Development programs. The Development Act provides the The Agency disagrees with the commenter suggested that instead the definition for MDO. The Agency cannot commenters’ suggestion to specify a criterion should be ‘‘registered as a non- change the definition and, thus, for percent of available funds to be profit in the State, Commonwealth, example, quasi-governmental apportioned to any single aspect of the Territory, etc. in which the entity is organizations cannot be included unless program. In order to facilitate equitable located.’’ they otherwise meet the definition. distribution between loans and grants Response: The Agency agrees with the Consistent with the eligibility and provide for flexibility to meet commenter that the proposed rule requirements provided in other loan program needs, the Agency will would have been too restrictive. programs under the Consolidated Farm announce anticipated distributions in Therefore, the Agency removed the IRS and Rural Development Act, the an annual Federal Register notice. requirement from the definition and has reference to non-profits is understood to revised it to read: ‘‘A private entity Microentrepreneur mean only private non-profits. If chartered as a nonprofit entity under Congress had intended to include other Comment: Two commenters pointed State law.’’ entities, they would have done so as out that the proposed definition states they have done for other provisions in that ‘‘All microentrepreneurs assisted Rural or Rural Area the Consolidated Farm and Rural under this regulation must be located in Comment: One commenter stated that, Development Act. For this reason, the rural areas.’’ The commenters for the purposes of this program, the Agency has not revised the definition of recommended changing this to read ‘‘All terms ‘‘rural’’ and ‘‘rural area’’ are MDO as suggested by the commenters. microenterprises assisted under this defined as any area of a State not in a Comment: A number of commenters regulation must be located in rural city or town that has a population of requested that the rule clarify the ability areas’’. The commenters stated that, more than 50,000 inhabitants, according of multiple groups to collaborate on an while some entrepreneurs do work from to the latest decennial census of the

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United States; and the contiguous and decennial census is at least five Response: The Agency agrees with the adjacent urbanized area. The commenter percent.’’ The commenter urged USDA commenters that, as proposed, the rule then pointed out that the Freely to adopt this definition. did not adequately address whether Associated States (Republic of Palau, Response: The Agency agrees that the gender was included in ‘‘socially Republic of the Marshall Islands, and definition of outmigration should take disadvantaged.’’ The Agency, however, the Federated States of Micronesia) are other current definitions into has determined that ‘‘socially not under the jurisdiction of the U.S. consideration. However, because disadvantaged’’ is too broad a phrase Census Bureau and do their own outmigration issues apply to and has changed the scoring criteria to internal Census. The commenter, enhancement grants only, the Agency include racial and ethnic minorities, the therefore, recommended adding after will address this issue when it disabled, and gender. The Agency made ‘‘according to the latest decennial census publishes the final rule. this determination in consultation with of the United States’’ the following: ‘‘or Comment: One commenter pointed Agency Civil Rights staff, consideration of any of the Freely Associated States, out that the Freely Associated States of other agencies, and Civil Rights as appropriate.’’ (Republic of Palau, Republic of the reporting requirements. The latter is Response: The Agency agrees with the Marshall Islands, and the Federated based on demographic data and commenter’s concern. However, rather States of Micronesia) are not under the ‘‘socially disadvantaged’’ is not than revising the text as suggested by jurisdiction of the U.S. Census Bureau specified. the commenter, the Agency has added a and do their own internal Census. The definition of ‘‘State’’ to include reference Non-Discrimination and Other Federal commenter, therefore, recommended Laws—(§ 4280.305) to each of the Freely Associated States revising the definition of significant identified by the commenter. By doing outmigration to reflect this. Comment: One commenter expressed so, it is unnecessary to make the change Response: The Agency agrees with the concern with the use of the word suggested by the commenter. commenter’s concern regarding the ‘‘applicants’’ in the beginning of Significant Outmigration Freely Associated States. The Agency proposed § 4280.305(a) that states ‘‘All applicants must comply with other Comment: Four commenters stated has revised the text in this definition (as noted in the response to the previous applicable Federal laws.’’ The that this definition was more restrictive commenter asked: What about ultimate than it should be and that the definition comment) and, in doing so, has removed reference to the U.S. Census Bureau. recipients? The commenter suggested rejects the definitions of the term that that there needs to be consistency with already exist in law or proposed in Socially Disadvantaged this proposed rule and the IRP. legislation. The commenters provided, Comment: One commenter requested Response: The Agency agrees with the as examples, the American Jobs Creation commenter that the provisions of this Act of 2004 (Pub. L. 108–357) and the that the Agency define racially and paragraph need to apply to both the proposed ‘‘New Homestead Act of 2007’’ ethnically diverse populations by using microlender participating in this (S. 1093). These use a net out-migration the same definition as found in the program and to the microborrower of at least 10 percent during a 20-year Small, Socially Disadvantaged Producer receiving RMAP funds from the period. The commenters suggested Program. Socially-Disadvantaged participating microlender. Therefore, defining ‘‘significant outmigration’’ as Individuals are those who have been the Agency has revised the text in this outmigration of 7.5 percent over two subjected to racial, ethnic or gender paragraph to state clearly that any entity Census periods and/or 5 percent prejudice because of their identity as receiving funds under this program is outmigration over one Census period in members of a group, without regard for covered by this paragraph. order to recognize the current state of their individual qualities. rural demographics and to enable the Another commenter recommended MDO Requirements—(§ 4280.310) either including a definition for program to be widespread throughout General the nation. ‘‘socially disadvantaged’’ under Another commenter suggested that proposed § 4280.302 that includes Comment: One commenter the population outmigration criteria be women and other disadvantaged groups recommended that the rule minimize lowered from 15 percent over thirty or expanding proposed duplication, and the unintended years to 10 percent over thirty years. In § 4280.316(b)(1)(v) to include an development of underutilized surplus Iowa, this change would provide a explanation of the term ‘‘socially reserves in local RMRF loan capacity, by threefold increase in the number of disadvantaged.’’ The commenter pointed discouraging MDOs from providing targeted outmigration counties out that the scoring rules concerning services in overlapping service areas compared to the 12 counties under the provision of technical assistance to unless the MDO first approved in a currently proposed criteria. microentrepreneurs (proposed designated area provides a letter of One commenter stated that the U.S. § 4280.316(b)(3)(iii)) contain a reference endorsement for the second MDO. Department of the Treasury’s to an undefined group of ‘‘socially According to the commenter, differing Community Development Financial disadvantaged’’ microentrepreneurs. It is MDOs may target different market Institutions Fund (CDFI Fund) uses the not stated whether ‘‘socially segments, which can be a rationale for following definition of ‘‘significant disadvantaged’’ includes gender overlapping service areas. However, the outmigration:’’ ‘‘In counties located (presumably female application approach should encourage outside of a Metropolitan Area, the microentrepreneurs). This is collaboration when appropriate and county population loss during the inconsistent with proposed discourage duplication when period between the most recent § 4280.316(b)(1)(v) where gender is a inappropriate. decennial census and the previous specifically-mentioned demographic Response: The Agency acknowledges decennial census is at least 10 percent; group. The commenter stated that any that different MDOs may target different or (5) in counties located outside of a provision under the Program’s rules market segments, but disagrees with Metropolitan Area, the county net should ensure that female suggestion to discourage MDOs from migration loss during the five-year microentrepreneurs should be providing services in overlapping areas. period preceding the most recent considered ‘‘socially disadvantaged.’’ The Agency has determined that

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encouraging competition generally OGC concurrence be obtained for one of the three provisions found in provides the greatest potential for entities with an initial application and §§ 4280.310(a)(4)(i)(A), 4(i)(B), or 4(i)(C), benefits for intended end users. The subsequent applicants that have is required to be met, not all three. Agency encourages collaboration among experienced a material change to their Thus, an applicant is eligible if it meets MDOs regarding client referrals across articles or bylaws since their last OGC any one of the following: different market segments. No changes eligibility concurrence. • Has demonstrated experience in the have been made in response to this Response: The Agency will make an management of a revolving loan fund, or general comment. eligibility determination, including • Certifies that it, or its employees, whether the applicant has the legal have received education and training as Eligibility (Proposed § 4280.310(a)) authority necessary to carry out the described, or Comment: One commenter suggested purpose of the award, based on the • Is actively and successfully replacing ‘‘under RMAP’’ with ‘‘per information provided in the application. participating as an intermediary lender § 4280.302(a)’’. Consultation with OGC is an internal in good standing under the SBA Response: While not inaccurate, the operating procedure which is beyond Microloan Program or other similar Agency believes that ‘‘under this the scope of this regulation. The rule Federal loan program. program’’ should reference the subpart now requires an attorney’s opinion Thus, no single organization will be instead and has rephrased the text to regarding the microlender’s legal status required to meet all three of these read, in part, ‘‘To be eligible for a loan to make loans specifically to allow the requirements and newer organizations or grant award under this subpart, an Agency to make such determination. will be accommodated via the second applicant’’. The Agency believes the The Agency may seek OGC advice as option. broader designation is more appropriate needed. Enhancement Grants (Proposed than the commenter’s suggested cross- Direct Loans (Proposed § 4280.310(a)(4)) § 4280.310(a)(5)) reference to § 4280.302(a) by itself. Comment: One commenter would like Comment: Several commenters Citizenship (Proposed § 4280.310(a)(2)) the Agency to consider easing the believe that the proposed rule fails to Comment: One commenter believes requirement for receiving education and properly implement section the requirement in § 4280.310(a)(2) for training from a qualified 379E(b)(4)(A) of the Consolidated Farm MDO ‘‘citizenship’’ is unworkable microenterprise training entity and Rural Development Act as added by because nonprofits, tribes, and (proposed § 4280.310(a)(4)(ii)). Being a the 2008 Farm Bill, which addresses institutions of higher learning are relatively new lending concept, such grants to support rural microenterprise entities with no ‘‘owners’’. Therefore, education, according to the commenter, development, and as expressed in the establishing their citizenship is not is not common to a majority of report accompanying the 2008 Farm possible. Instead, the commenter professionals involved in agriculture in Bill. suggests requiring that the nonprofit/ the U.S. nor is such training readily One commenter noted that the tribe/institution of higher learning be available. If not, the commenter states proposed rule limits enhancement legally established within the U.S. the Agency should define what is grants to organizations that already Response: The Agency agrees with considered ‘‘adequate experience.’’ operate a program for training and other commenter that the citizenship Response: The microenterprise enhancement services, which would requirements would not be ‘‘workable’’ development industry has been active in ultimately result in strengthening these as applied to tribes and institutions of the United States for more than two organizations internally. According to higher learning. However, for nonprofit decades. It is important that the the commenter, the overall purpose of entities, the Agency has determined that minimum standards of quality that have section 379E(b)(4)(A) was to develop the the citizenship requirements are been generally recognized over time be technical infrastructure necessary to applicable. Therefore, the Agency has maintained so that the industry can increase the success of revised the citizenship requirements in continue to grow. The Agency has microentrepreneurs by offering them the rule to apply only to applicants that determined that experience (as training in critical business skills. This are non-profit entities, as is consistent determined in the scoring), or training/ could be accomplished by building the with other Rural Development education, or participation in the capacity of local nonprofit organizations programs. similar Small Business Administration to provide training and technical (SBA) Microloan Program will help to assistance to microentrepreneurs. The Legal Authority/Responsibility ensure a baseline of capacity. No proposed rule does not contemplate this (Proposed § 4280.310(a)(3)) changes have been made in response to approach and should be changed to Comment: One commenter asked this comment. accommodate the capacity building, whether the Rural Development State Comment: In commenting on training, and technical assistance clearly Office will determine whether the proposed § 4280.310(a)(4)(iii), one authorized under the law. By applicant has the legal authority to carry commenter suggested easing the eliminating the training funds and out the purpose of the award or, as in requirement that MDOs be ‘‘actively and capping technical assistance funds, the the case with Rural Business successfully participating as an proposed rule will make it difficult for Opportunity Grants (RBOG), will intermediary lender.’’ According to the organizations to provide the services concurrence from the Office of General commenter, this requirement will microentrepreneurs need to succeed. Counsel (OGC) be required. The exclude many small producer groups One commenter stated that the commenter stated that having the with clientele that would benefit greatly proposed rule leaves out rural applicant provide a current (not more from a microenterprise lending program. microenterprise development grants. than 6 months old) Certificate of Good According to the commenter, most The commenter stated that the final rule Standing in addition to articles and by- microlending institutions in the U.S. are should be amended to include the laws would allow the Agency (National located in major urban areas serving missing statutory subprogram. or State Office official) to make a urban clients, not rural ones. According to the commenter, there are preliminary determination. The Response: The Agency notes that two appropriate ways to accomplish commenter then recommended that § 4280.310(a)(4)(i) indicates that only this. First, retain the enhancement grant

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category, which is overall a very helpful adheres to both statute and report Business Incubators (Proposed idea, and to create a rural language. The commenter suggested § 4280.310(c)) microenterprise development grant several approaches including funding Comment: One commenter was category and purpose statement. for State Microenterprise Associations unclear as to what the ‘‘business Second, incorporate the enhancement and for MDOs. The commenter also incubator’’ paragraph was saying. grant idea into the rural microenterprise recommended a 4:1 ratio towards Response: The paragraph referred to development grant category and providing MDOs with core funding. by the commenter (now § 4280.310(f)) purpose as a noteworthy addition to the Response: In consideration of these states that a microlender who owns or statutory requirements. One of these two comments, the Agency considered a operates a small business incubator is approaches is required in order for the number of options for implementing a eligible to participate in RMAP. The rule to conform to the statute. paragraph also states that such a Another commenter also believes that technical assistance and network enhancement category. As noted, the microlender may use RMAP funding to the Agency misinterpreted the statutory make a loan to an eligible provision as well as the accompanying comments differed on appropriate approaches. Due to the broad range of microentrepreneur who is a tenant in report language in creating that microlender’s facility. This ‘‘enhancement grants.’’ According to this suggestions, and the considerable language is clear and was not further commenter, the statute shows the interest in an enhancement grant clarified. However, regulatory primary intent to be the provision of program, this interim rule is published instructions will be published after operating grants to MDOs, so they may without reference to an enhancement promulgation of the interim rule that better serve rural microentrepreneurs, grant category. Instead, comments and may assist with this commenter’s and the commenter believes that the concepts regarding the best delivery concern. proposed ‘‘enhancement grant’’ method approaches are requested (see Section V is not an accurate regulatory of this preamble). Submitted comments Loan Provisions for Agency Loans to representation of statute. In support of and concepts will be fully considered Microlenders (§ 4280.311) prior to publication of an RMAP final this position, the commenter referred to Complicated Process the report language accompanying the rule. statute (H. Rept. 110–256 Sec.367(b)(3)), However, the interim rule does make Comment: Eleven commenters stated which states that ‘‘The Secretary may technical assistance grants available to that the proposed rule outlines an make a grant under the program to a MDOs that are not participating in the unnecessarily complicated process for qualified organization (i) to provide program as microlenders (see the disbursement of loan funds to training, operational support, or a rural § 4280.313(c)). By broadening the lenders participating in RMAP, with one commenter referencing in particular capacity building service to a qualified eligibility for technical assistance proposed § 4280.311(d)(10), (11), and organization to assist the qualified grants, the Agency is addressing the (12). The commenters expressed organization in developing concerns of the commenters indicating concern that if these rules are not microenterprise training, technical the need for more technical assistance revised, the cumbersome methods assistance * * * and other related funding. No specific provision was outlined for loan disbursement will services.’’ According to the commenter, made for State Associations. the proposed ‘‘enhancement grants’’ fail keep many qualified rural MDOs from to meet stated Congressional intent as Technical Assistance Grants (Proposed participating in RMAP. expressed in the law’s report language, § 4280.310(a)(6)) Response: Of particular concern to the primarily by awarding grants to MDO commenters was that the Agency would trainees rather than MDO trainers as Comment: One commenter suggested require a list of probable mandated. that the text ‘‘with the exception that up microentrepreneurs prior to This commenter claimed that the to 10 percent of the grant funds may be disbursement of loan funds. This is not result of these misinterpretations are used to cover administrative expenses’’ the case and language has been added that the proposed ‘‘enhancement grants’’ be revised by replacing ‘‘to cover’’ with to § 4280.311(e)(11) to address this result in neither technical assistance to ‘‘for MDO’’. concern. Specifically, descriptions of rural microentrepreneurs, as intended Response: The Agency revised the anticipated need provided with a by the law, nor as a tool for broader text (see § 4280.313(b)(3)) identified by request for disbursement will indicate field-wide capacity building. While the commenter by inserting ‘‘the the anticipated amount and number of capacity building can involve the staff microlender’s’’ as follows: ‘‘may be used microloans to be made with the funds development purposes expressed in the to cover the microlender’s but need not identify each loan. These ‘‘enhancement grants’’ provision, administrative expenses.’’ The Agency requirements are needed to adequately capacity building of the rural believes this adequately addresses the monitor use of program funds. microenterprise development field as a commenter’s suggestion. whole provides a broader scope by Co-financing which to build the field’s infrastructure Delinquencies (Proposed Comment: One commenter capacity. As a general rule, rural MDOs § 4280.310(a)(8)) recommended that co-financing with have few resources for technical local lenders and revolving loan funds assistance for their clients, and RMAP Comment: One commenter suggested for projects with total loan requests up should be designed and implemented to that proposed § 4280.310(a)(8) be made to $150,000 be allowed with the $50,000 help to fill the gaps in service that exist part of § 4280.310(a)(7), Ineligible microloan maximum and subordinated in many rural areas. applicants. position of the RMRF. According to the This commenter, therefore, (and as Response: The Agency understands commenter, this would multiply the similarly expressed by several other the commenter’s suggestion, but has benefits of the program, encourage commenters) recommended deleting elected to keep the subject paragraph as collaboration rather than duplication ‘‘enhancement grants’’ and replacing a stand-alone paragraph to ensure its with commercial lenders and other loan them with ‘‘Rural Microenterprise Field visibility to the public (see funds, and encourage the transition of Technical Assistance Grants’’ that § 4280.310(d)). microloan clients back to commercial

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lenders. The commenter also noted that Response: The Agency disagrees that amount funding for administrative this would be consistent with the monitoring the movement of interest expenses to an MDO, administrative flexibility for MDOs that is allowed earnings will be difficult because the expenses should be an allowed use of under the SBA Microloan program. movement of those earnings between interest earnings on the RMRF in Response: The Agency understands the RMRF and the LLRF will be evident proposed § 4280.311(d)(2). the recommendation that microlenders in bank statements and quarterly Two commenters recommended be allowed more flexibility in lending to reports. Because it will be able to allowing accrued interest to be used by microborrowers. In addition, small monitor such movement, the Agency MDOs for purposes consistent with the businesses that can receive loans from further disagrees with the commenter’s mission of the organization and the commercial lenders should not be able assertion that this provision will lead to purposes of the RMAP statute. One to receive microloans, because OIG concerns or investigations. Finally, commenter noted that this would be microborrowers must meet the credit the Agency will emphasize during consistent with current practices with elsewhere test; that is, microborrowers training that microlenders need Agency other USDA loan funds including IRP. must be able to show that, but for the written permission to move money out As proposed, such interest must be microloan, they would not have access of the RMRF unless it is to make a deposited in the LLRF. to business capital. At this time, lines of payment on their Agency loan. One other commenter stated that, as credit and subordinated liens will not Comment: One commenter stated that written, the proposed rule would not be authorized. However, the Agency Community Development Financial allow the MDO to use any revenues will continue to accept comments Institutions (CDFIs) often reinvest from the operation of the microloan during the interim rule phase. interest earnings into capital available funds to cover its administrative for lending. However, interest earnings expenses. All repayments on microloans Purpose of Loan (Proposed are also a source of operations revenue must be deposited in the loan fund and § 4280.311(a)) that help support technical assistance, used for either new microloans or Comment: One commenter was allow CDFIs to lower the interest rate to payments to USDA. Thus, there is no unclear as to what ‘‘interest earnings’’ borrowers, and otherwise provide provision for paying the MDO’s loan were being referred to in the products and services to their markets. officer, etc. and the presumption is that introductory text to proposed Especially if the Agency maintains the all these costs will be covered by other § 4280.311(a). The commenter stated scoring criteria related to use of funding sources. According to the that this could be referring to either administrative funds, it should allow commenter, this is unfair to the MDO, bank account accrued interest or to loan flexibility in the use of interest earned which should be able to use the payment interest and that this needed to from the RMRF and LLRF. USDA revenues from their operations for the be clarified. should, in addition, explicitly state that operation of the microloan program. Response: The intent of this income earned from RMAP loans to Response: While the Agency paragraph is to refer to any type of microborrowers belongs to the lender acknowledges the points raised, the interest earnings, including the two and can be used flexibly. Agency has not revised RMAP as types referenced by the commenter. Two other commenters stated that recommended by the commenters. It is While the Agency has removed the USDA should codify that interest the Agency’s position that, because the referenced text from § 4280.311(a), the income from microloans: (a) Need not interest is earned on monies owed back Agency has revised the text in be deposited into the RMRF, and/or (b) to the Agency, the Agency is within its § 4280.311(e)(2) to more clearly address may be deposited and withdrawn from purview to dictate the use of interest the issue raised by the commenter. the RMRF without restriction. The earned on that money. Further, Comment: Two commenters commenters stated that failure to clearly requiring interest earned to be used to recommended that the Agency clarify allow MDOs to keep and use microloan recapitalize the RMRF and LLRF will that proposed § 4280.311(a) applies only interest income would likely render help ensure that those two funds are to interest earnings on the underlying RMAP unusable for MDOs. maintained at adequate levels over time USDA loan to the MDO. Twelve commenters noted that the and that earnings that remain in the Response: The Agency disagrees. The proposed rule does not explicitly state LLRF account will help to mitigate the commenters are most likely referring to that income earned from RMAP loans to cost of reimbursing the RMRF from the the sentence in the proposed rule that microborrowers belongs to the lender. LLRF in the event of a loss. Such states: ‘‘Interest earnings accrued by the They stated that they believe that earnings may also be used to help fund RMRF will become part of the RMRF microlenders should be allowed to keep the non-Federal share. and may be used only for the purposes earnings on microloans, and that this Finally, the Agency notes that the rule stated above.’’ The rule requires needs to be explicitly stated in the allows MDOs that receive technical microlenders to retain the interest appropriate section of the RMAP final grants to use up to 10 percent of the earned in the RMRF and LLRF accounts rule. funds to cover MDO administrative so that earnings may be reloaned or Three other commenters stated that expenses for administering the technical used to recapitalize the LLRF. limiting MDO use of accrued interest assistance grants. Comment: One commenter referred to that comes about as a result of an the sentence: ‘‘However, with advance agreement between the MDO and a Term of Loan (Proposed written approval by the Agency, the borrower is an overreach by USDA, § 4280.311(d)(3)) microlender may increase the funding limits the ability of an MDO to realize Comment: One commenter in its LLRF with interest earnings from program income from its activities, and recommended that the Agency eliminate the RMRF.’’ According to the ultimately will limit the ability of MDOs the uncertainty about the term ‘‘20 years commenter, this is going to be very hard to fund their programs and services. The and may be less’’ and simply follow the to monitor and will ultimately result in commenters suggested the Final Rule loan structure used by the IRP OIG findings because the Agency has remove all limits on use of interest program—a 1 percent fixed rate loan failed to provide advance approval to accrued by RMRFs. In particular, The with a 20-year term with 3 years of increase the account via interest commenters suggested that, because the interest-only payments and with annual earnings. law and the proposed rule limit the payments. The commenter stated that

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this will allow for a predictable commenter asked how, in such cases, extended to at least 180 days, and payment level for the MDO which is the MDO can be expected to make further suggested that the timeframe be very helpful in running a microlending monthly payments to USDA. left to the judgment of the USDA State program. Response: The Agency disagrees with Office. Response: The Agency disagrees that the commenter that monthly Response: In considering all of the RMAP needs to set the same term installments are not practical. It is the commenters’ suggestions, the Agency requirements as found in the IRP. While Agency’s experience that by requiring has revised the proposed timeframe for the Agency acknowledges that setting a monthly payments, lenders are better closing loans from 60 days to 90 days standard term length would simplify the able to manage and match their portfolio (see § 4280.311(e)(8)). This longer loan structure, the Agency wants to cash flow and that the Agency is better timeframe is sufficient to close loans provide flexibility to accommodate able to monitor the repayment behavior under RMAP. The Agency has not lesser term lengths as permitted by of the microlender. Therefore, the accepted the suggestion to include statute. The Agency has revised the rule Agency has not revised the rule as ‘‘unless otherwise negotiated and agreed to allow a term of less than 20 years if suggested by the commenter. to by the Agency.’’ The Agency is requested by the microlender and as concerned that such an open-ended agreed upon between the microlender Prepayment (Proposed § 4280.311(d)(5)) deadline would result in unnecessary and the Agency. Comment: One commenter delays. Lastly, if loans are not closed recommended that proposed within 90 days, the funds will be Loan Repayments (Proposed § 4280.311(d)(5) simply state that there forfeited. § 4280.311(d)(4)) is no pre-payment penalty. Loan Disbursement (§ 4280.311(e)(10)) Comment: One commenter stated that Response: The Agency is satisfied that the reference to the 24th month of the this paragraph clearly states a no pre- Comment: Several commenters noted life of the loan is confusing at this point payment penalty provision, but has that the rule, as proposed, allows in the rule because not until later in the clarified that this also applies to pre- microlenders to receive a disbursement rule is the 2-year deferral referred to. payments during the deferral period (see of up to 25 percent of the total loan Response: The Agency has rearranged § 4280.311(e)(5)). amount at the time of the loan closing. and revised proposed paragraphs (d)(4), In general, the commenters stated that it (d)(5), and (d)(8), as discussed in Deferral Period (Proposed is not clear why this limit is necessary response to a later comment. This § 4280.311(d)(8)) and that it appears arbitrary. According rearrangement addresses the Comment: One commenter asked why to the commenters, this draw down commenter’s concern by placing this the proposed rule was making the 2-year limitation has the potential to limit the provision after reference to the two-year deferral automatic and what if the MDO number of loans an MDO can make and deferral period. does not want a deferral. limit the funds an MDO can loan. The Comment: One commenter Response: Section 379E of the Act commenters suggested modifying the recommended that proposed allows the Agency to defer payments for rule to allow MDOs to draw down their § 4280.311(d)(4) be revised to state the 2 years. The Agency has provided a entire loan if needed. payments would begin on the 1st day of commensurate default provision Another commenter recommended the 25th month instead of making wherein no payments are required until that, once a loan has been closed payments beginning on the last day of this 2-year period is completed. between the Agency and a microlender, the 24th month. The commenter noted However, if a microlender wishes to the MDO be able to draw down at least that traditionally the Agency has make payments prior to the end of the half of the total loan amount. The avoided making payments due on the 2-year period, the microlender can do so commenter stated, in addition, that 29th, 30th, or 31st of the month due to and without any prepayment penalties requests for draw downs should not the fluctuating number of days in the being assessed. The Agency has revised require an iteration of specific pending month and the fact that the payments and rearranged proposed paragraphs loans for specific amounts, but should are not credited to the account for (d)(4), (d)(5), and (d)(8) to make this be based on the organization’s lending several days after the beginning of the more clear. history schedule. The commenter noted next month. Thus, all end-of-the-month that successful microlending is more reports will show the payment not made Loan Closing (Proposed time consuming than conventional when, in fact, the funds may already be § 4280.311(d)(9)) lending and that onerous paperwork in the Finance Office. Comment: Five commenters were requirements subtract from the time Response: The Agency disagrees with concerned about the 60 day time limit MDO staff can spend conducting the commenter and has kept the imposed by this paragraph. According outreach, providing technical provision to read ‘‘on the last day of the to one of the commenters, it is often assistance, and servicing loans. If an 24th month’’ to be consistent with difficult to get loan closing instructions MDO has the track record, credibility RULSS system requirements. from OGC and get title set up and the and financial controls in place to Comment: One commenter stated that loan closed in 60 days. This commenter warrant a loan from the Agency that monthly installments are not practical was also concerned that there may be MDO should be trusted to do their work and that annual payments would be far unusual and unavoidable issues that and not be hamstrung by unnecessarily less burdensome and labor intensive for prevent a loan being closed within 60 rigid requirements. both the MDO and USDA. According to days of loan approval. To address these Response: The Agency included the the commenter, this approach works concerns, the commenter recommended provision (see § 4280.311(e)(9)) to limit well with the IRP program and there is adding at the end of the paragraph: full disbursement of the loan to the no real advantage to using monthly ‘‘Unless otherwise negotiated and agreed microlender in order to ensure that payments. Many microentrepreneur to by the Agency.’’ microloans are made in an expedient borrowers, especially farm borrowers, Two of the other commenters fashion and that disbursed funds are not will not have year-round, monthly recommended a longer deadline of 90 or accruing interest on the Agency loan revenues and so will not be able to make 120 days. Finally, one commenter before they begin to earn interest on monthly payments to the MDO. The recommended that the period be microloans. The Agency, therefore, has

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not revised the rule as suggested by the additional funds and the Agency may part because quarterly payments match commenters. demand return of any funds already the quarterly reporting requirements. disbursed to the microlender (see Further, monthly draws would require 30-Day Disbursement Provision § 4280.311(e)(10)). undue Agency resources. Second, (Proposed § 4280.311(d)(11)) matching fund payments with reporting Quarterly Disbursement of Funds Comment: A number of commenters requirements allows the Agency and the (Proposed § 4280.311(d)(12) and noted that the requirement for an MDO microlender to keep like calendars, § 4280.320) to make one or more microloans within which will facilitate reconciliations. 30 days of any disbursement it receives Comment: Several commenters were Thus, the Agency has not incorporated from USDA seems to be an unnecessary concerned over the proposed the commenter’s suggestion into the rule. The commenters stated that, if an disbursement of loans and grants on a rule. MDO is drawing down funds, they are quarterly basis as found in proposed Comment: Two commenters stated clearly planning on placing loans in the §§ 4280.311(d)(12) and 4280.320(b). that proposed § 4280.311(d)(12) requires near future and that if a loan to a client One commenter asked why grant that requests by MDOs for loan would not happen at the last minute, payments would not be made more disbursement must be accompanied by programs could easily violate this 30 often than quarterly. According to the a description of the incoming microloan day rule. One of the commenters stated commenter, monthly payments for loans pipeline. The commenters stated that it that it seems arbitrary to insist that at or grants can be acceptable if they are is questionable whether any MDO has a least one loan be made within 30 days accompanied by a brief narrative of ‘‘microloan pipeline’’ that can be of disbursement and not particularly activity that justifies the requested described to a funder. Generally, MDOs realistic given the realities of funds. The commenter also asked why do not line up loans and then make a microlending in the field. The the Agency should not allow monthly drawdown. The incoming pipeline is commenters, therefore, recommended draw downs for loans. totally unpredictable. MDOs typically omitting this from the rule. Another commenter stated that the base their drawdowns on previous Another commenter stated that the requirement for quarterly disbursements history and draw down as needed. The limitations that a microlender can only seems overtly regulatory rather than commenters recommended that the request funds once a quarter based on necessary. According to this commenter, Agency remove this requirement from their pipeline and then must relend the an active MDO may need funds prior to the rule and replace it with a provision drawn funds within 30 days is the end of the 90 waiting period. The that draw downs be allowed as needed unnecessarily burdensome. The commenter stated that the IRP currently by the MDO. According to the commenter acknowledged that there is allows disbursements every 30 days. commenters, keeping this requirement certainly an expectation that the drawn Another commenter stated that the will add to the administrative burdens funds will be promptly reloaned, but quarterly disbursement of loan dollars is on MDOs and decrease the portion of recommended that mitigating cumbersome and unnecessary. The staff time that can be devoted where it circumstances be allowed for. commenter stated that, if the Agency’s should be devoted—servicing loans, Response: As noted by the goal in restricting loan disbursements is providing technical assistance and commenters, the proposed rule required to ultimately prevent the misuse of the conducting outreach that brings more that the microlender make a microloan loan dollars as well as the technical microentrepreneurs in the door for within 30 days of receipt of funds from assistance grant dollars that accompany services. the Agency. The Agency agrees that this those loan dollars, a better way to do Another commenter stated that, may be too short under certain this would be to allow the MDO to draw regarding the ‘‘microloan pipeline,’’ the circumstances, but disagrees with the down as needed and receive annual or rule has two very serious flaws: (a) It suggestion to have no timeframe. For quarterly technical assistance grants. As conflates borrower interest in pursuing example, some microlenders will currently designed, an MDO with four a microloan with the certainty of that already have a list of potential loans from the Agency would need to borrower qualifying for a microloan, and microborrowers for RMAP funds. For keep track of four RMRF accounts, and (b) it fails to consider the impact of these microlenders, some amount of submit various reports per year. unpredictable economic factors and time may be required to evaluate and According to the commenter, these outside forces. This commenter stated verify the eligibility of the regulations are unnecessarily that a ‘‘microloan pipeline,’’ as the term microborrower for participation in the burdensome, and could deter many is used in the microenterprise field, is program. Some microlenders will not small, rural MDOs from participating in not a predictor of future borrowers, but begin aggressively marketing the RMAP. The commenter, thus, rather an expression of loans in the availability of RMAP loan funds until recommended allowing MDOs to draw process of closing. While an MDO may such funds have been drawn. Some down as needed and receive annual or work to forecast demand for microloans, amount of time, therefore, will be quarterly technical assistance grants the incoming pipeline is ultimately required to attract microentrepreneurs based on statutory allowances, program unpredictable and does not provide a to the program. Thus, the Agency performance, and demonstrated needs. reliable proxy by which to judge the believes that a 30-day period may be Another commenter noted that, with intent of MDOs requesting a loan insufficient. The Agency has, therefore, the tools of electronic funds transfer, the disbursement. The commenter revised the rule to reflect a 60-day approach should simply be that an MDO recommended that the ‘‘microloan requirement (see § 4280.311(e)(10)). may request RMAP draws as microloans pipeline’’ be utilized as an indicator of Comment: One commenter asked are ready to close; they should not be microloan demand. what the ramifications would be if loans limited to once a quarter. Response: Agency experience are not made within the specified Response: The Agency is requiring indicates that lenders are able to timeframe. quarterly draws rather than monthly anticipate what they will lend over the Response: If a microlender fails to draws for several reasons. The Agency next 3 to 6 months. Generally, a make a loan within 60 days of has determined that quarterly payments microloan pipeline can be anticipated disbursement, the Agency may not enable both the Agency and the MDO to by assessing those clients that are in the provide the microlender with any more efficiently utilize staff resources in pre-loan technical assistance and

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planning stages. A well managed Government, but comply with the law (proposed § 4280.311(d)(17)(i)) by the microlending institution will recognize and will eventually provide the lower 1 24th month and expressed concern those clients that are ready for loan percent rate to the best MDO regarding proposed approval and those clients that are not. performers. In addition, these revised § 4280.311(d)(17)(ii). They will also recognize those clients interest rate provisions should The other commenter stated that that intend to borrow and those clients encourage microlenders to continue different incentives to reward that do not. Therefore, it should not be successful participation in the program. microlenders who relend their funds difficult for a microlender to anticipate quickly can be developed instead of the the need for microlending funds. The Interest Rate Adjustments (Proposed interest rate adjustment. The commenter ‘‘microloan pipeline’’ language, § 4280.311(d)(14) and (d)(15)) also suggested that incentives be built therefore, has been removed to state that Comment: One commenter asked how into the use of the TA grant funds. the request for disbursement will be the Agency’s Financial Office would Response: For the reasons discussed accompanied by a description of the deal with the provisions of proposed earlier in response to comments on microlender’s anticipated need (i.e., the § 4280.311(d)(14) and (d)(15). proposed § 4280.311(d)(13), the Agency amount and number of microloans Response: The RMAP will utilize the has revised the interest rate structure anticipated to be made with the RULSS technology platform, which and has removed proposed funding) (see § 4280.311(e)(11)). includes the calculation of capitalized § 4280.311(d)(17). Thus, it is interest. unnecessary to adopt the commenters’ Interest Rate Adjustment (Proposed suggestions. § 4280.311(d)(13)) Amortization (Proposed Comment: Many commenters § 4280.311(d)(15)(i)) Minimum and Maximum Loan Amounts expressed concern over the interest rate Comment: One commenter suggested (Proposed § 4280.311(e)(1)) provisions in the rule at proposed replacing ‘‘subject itself to negative Comment: A number of commenters §§ 4280.311(d)(13) and (d)(17). One of amortization’’ with ‘‘subject itself to a were concerned about the maximum the commenters noted that the statute balloon payment’’ as being clearer. loan amounts being proposed. Most established a minimum interest rate of Response: The Agency has revised the recommended raising both the single at least 1 percent for USDA loans rule to remove reference to negative year maximum and the aggregate (section 379E(b)(3)(B)(ii)) and claimed amortization. Because the Agency’s maximum to $1 million and $5 million, that the proposed rule does not Finance Office will always adjust respectively. Other amounts suggested implement the interest rate as set out payments so that negative amortization were $750,000 for single year maximum under the law. This commenter then will not occur, there is no need to and $4 million aggregate maximum. referred to the proposed formulations in address this issue in the rule. Points made by the commenters proposed § 4280.311(d)(17) and stated Comment: One commenter asked why included: that they may have merit, but are not amortization calculations are performed • While most rural MDOs will not clearly explained in the rule and have at month 22 for the end of the deferral borrow the maximum amount, large the potential to raise interest rate period and to start payments, but then lenders that can demonstrate success in charges to microenterprises. In the turning around and automatically making and managing a large volume of interest of time, clarity, and ease, the reamortizing their loan at month 34. loans should have the opportunity to do commenter believes that the Agency Response: The Agency has removed so; should follow the law and implement the paragraph concerning reamortizing • The low limit may constrain MDOs the loan rate set out by the statute. loans at month 34, because it is no with robust pipelines of potential The other commenters recommended longer necessary for the implementation borrowers; and adopting fixed rate loans at a 1 percent of this program. The Agency notes that • The low limit creates additional interest rate. amortization calculations are to be administrative expenses for both the Response: The Agency agrees that the performed during the 24th month of the Agency and the MDO. interest rate provisions found in deferral period, rather than on the first Response: In order to fund as many proposed § 4280.311(d)(13) and (d)(17) day of the 22nd month as had been qualified microlenders as possible, it is should be revised to reflect a simpler proposed. Section 4280.311(e)(13) has important to have a maximum loan structure. However, the Agency been revised accordingly. amount that is both large enough for disagrees that the rate should be less larger lenders and small enough to than 1 percent. The statute does not Loan Deobligation and Evaluation allow equitable distribution of loan anticipate a 1 percent rate at all times (Proposed § 4280.311(d)(16) and (d)(17)) funds. Additionally, the current on every loan. It only states that the Comment: One commenter asked how maximums and minimums provide the interest rate must be at least 1 percent. the Agency’s Financial Office would Agency with the opportunity to spread To address the commenters’ concerns deal with the provisions of these risk across a higher number of local regarding the rate structure, and Agency paragraphs. economies than would a more concerns regarding the cost and broad Response: The RMAP will utilize the condensed distribution. Therefore, the distribution of loan funds, the Agency RULSS technology platform, which can Agency has not revised these limits in has revised the rule at § 4280.311(e)(12) facilitate the calculations. response to the comments. to set a fixed interest rate of 2 percent The Agency notes that it has retained on all loans to any MDO that are made Interest Rate Adjustments (Proposed the proposed minimum loan amount of in the first 5 years of an MDO’s § 4280.11(d)(17)) $50,000 in the interim rule. The Agency participation in RMAP. After 5 years of Comment: Two commenters were considered whether to lower this successful and continuous participation concerned over how the Agency was minimum amount, but decided against in RMAP, each new loan to an MDO proposing to adjust the interest rates on doing so for two primary reasons. First, will be at a fixed 1 percent interest rate. loans made to microlenders. One of the the Agency is concerned that an MDO Depending on future Treasury bill rates, commenters requested clarification of seeking to borrow, for example, only these revised interest rate provisions when interest rates will change for $10,000 or $20,000 is unlikely to be a may be more expensive to the MDO’s that have used all their funds well established MDO with a sufficient

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‘‘critical mass’’ and would therefore 105 percent of the RMAP loan balance, the commenters, many rural MDOs present a higher risk to the Agency for or be in default, is unworkable and depend on federal funds to operate, as repayment. Second, even if the MDO unnecessary. What this means is that if state, local and private funds for seeking such a small amount was well- an MDO suffers any loss whatsoever microenterprise development are established, the Agency believes that a (which is realistically likely), it either limited and decreasing. According to $10,000 or $20,000 loan to the MDO must immediately refund the entire loss one commenter, even in the best of under this Program would represent a up to the 105 percent level, or be times, securing non-Federal funding is a small portion of the MDO’s overall liquidated by USDA. This is required challenge. These funds provide critical portfolio of loans and would not be the even if the MDO is otherwise current on resources for achieving the MDOs type of MDO the Agency is most their RMAP loan and performing as mission of serving rural interested in for the Program. agreed. If an MDO suffers a loss but microenterprises. Making them nearly continues to stay current on its inaccessible for 20 years will pose Use of Funds (Proposed payments, it should be monitored § 4280.311(e)(2)) significant challenges for all MDOs. The closely by USDA, but it may yet recover commenters believe that, if forced to use Comment: One commenter asked its losses through operations or other non-Federal funds for the LLRF, the what an MDO would do concerning means. There is no benefit or reason to program will be unattractive to many establishing an RMRF if the MDO wants liquidate an MDO that is making MDOs and many rural MDOs will not be to apply in a subsequent year to payments as agreed and operating its able to participate in RMAP because recapitalize the loan fund. microloan fund in accordance with the they have no (or limited) non-federal Response: The Agency has rewritten mission of the RMAP program. Again, the beginning part of § 4280.311(f)(2) to the IRP program’s approach to default is funds to capitalize the required loan state: ‘‘Loans must be used only to perfectly workable as a quick substitute. loss reserve. establish or recapitalize an RMRF out of Another commenter recommended Two of the commenters indicated that which microloans will be made.’’ By that USDA provide further guidance on they understood the Agency’s including ‘‘or recapitalize’’, the Agency the available grace period for an MDO reluctance to allow use of RMAP funds is allowing MDOs to apply in to replenish the LLRF in case of to capitalize the loan loss reserve. These subsequent years for loan funds to microloan default. commenters stated that some flexibility recapitalize an existing loan fund. In Response: The statute requires that should be provided to allow the use of addition, other changes have been made each microlender establish and other federal funds and suggested that, to this paragraph. maintain a loan loss reserve fund of at as an alternative, this provision be Comment: One commenter suggested least 5 percent of the outstanding modified to allow federal funds other revising the sentence ‘‘Interest earned by balance of debt owed to the Agency than RMAP (Rural Business Enterprise the microlender on these funds may, under the program by the microlender. Grant (RBEG) or Community with advance written authorization from It is not the intent of the Agency to Development Block Grants (CDBG) the Agency, be used to help fund the declare a microlender in default based funds, for example) to capitalize the on the loss by a microborrower. The LLRF’’ to read ‘‘Repayments plus Interest required loan loss reserve. earned on these funds may be used to Agency is also aware that it takes time help fund the LLRF.’’ The commenter to replenish the reserves. Therefore, the Finally, one commenter suggested believes that requiring advance written Agency has added a 30-day grace period that the requirement for the LLRF as authorization is another opportunity for for such replenishment. Regarding the proposed be eliminated in its entirety Agency non-compliance. reference to the IRP program, it is not and be replaced with the IRP’s approach Response: The Agency has not revised the Agency’s intent to operate the of requiring that a 6 percent loss reserve the provision requiring advanced RMAP as if it were an extension of the be built up by the third year of written notification for using the IRP. operations and maintained thereafter, with the understanding that losses will interest earned on the RMRF for Capitalization and Maintenance cut into the reserve and that therefore increasing funding to the LLRF (see (Proposed § 4280.311(f)(2)) § 4280.311(e)(2)). The Agency disagrees time is allowed in rebuilding the loss with the commenter’s assertion that this Comment: A number of commenters reserve. were concerned with the proposed is an opportunity for Agency non- Response: While the Agency provision that would require the 5 compliance. This requirement is a understands the issues raised by the sound oversight provision. percent funding level for the loan loss reserve fund to be met using ‘‘non- commenters, especially as it regards Loan Loss Reserve Fund (LLRF) Federal funding’’ (e.g., RMAP funds MDOs with less history, the Agency has (Proposed § 4280.311(f)) cannot be used to establish the loan loss not revised the requirement to use non- Comment: One commenter asked why reserve) (proposed § 4280.311(f)(2)(iii)). Federal funds. Based on the lending the LLRF would be set up to cover The commenters noted that this program history of Rural Development, delinquent payments. provision would require the LLRF to be it has greatest level of long-term success Response: The statute requires the funded by the borrower. The awarding projects with program establishment of at least a 5 percent commenters stated that this is contrary participants who have their own capital LLRF (see section 379E(b)(3)(C)). The to Congressional intent that the 5 in the project rather than having the purpose of the LLRF is to cover percent level be met using the USDA/ government fully finance the project. In microloans that have gone into default. RMAP loan. Most of the commenters addition, there is a statutory This provides a cushion to protect the recommended that the rule reflect this requirement in section 379E to provide microlender from becoming delinquent Congressional intent. a 25 percent non-Federal share against to the Federal government. In supporting this position, several of funds received from the Federal Comment: One commenter stated the the commenters stated that requiring the Government for the cost of the project. ‘‘105 percent rule’’ that requires the use of non-Federal funds would limit The MDO’s non-federal investment in MDO at all times to maintain a the ability of smaller rural MDOs to the LLRF can be considered a part of the microloan fund and loss reserve equal to participate in the program. According to non-Federal share.

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LLRF Funded in Advance (Proposed Loan Closing (Proposed § 4280.311(h)) needs clarification and has revised the § 4280.311(f)(4)) Comment: One commenter suggested rule accordingly (see § 4280.312(c)(3)). Comment: One commenter in that the proposed rule needs to address The Agency has determined that reference to ‘‘The LLRF account must be the applicant signing a promissory note, sufficient evidence is best demonstrated established and partially funded’’ asked: security agreement, financing statement, through the provision of mechanics’ lien If they do not initially establish at 5 etc., at loan closing. waivers. In some cases, the Agency percent, what is the period of time the Response: The Agency agrees that the recognizes that such waivers may not be available or applicable. In such microlender has to fully capitalize the rule needs to identify the promissory instance, the provision of receipts of account? The commenter pointed out note and security agreement and has added them accordingly. payment would suffice. that proposed § 4280.311(h), Loan Comment: One commenter closing, requires at least 5 percent of Comment: One commenter asked: Wouldn’t the RMRF account have to be recommended that the program require initial disbursement be deposited. One a standard closing opinion, as required commenter also asked: Why would the set up prior to ‘‘loan closing’’ because the Agency would have had to establish under the Intermediary Relending LLRF need to be funded with 5 percent Program via OGC standard format in of the initial disbursement when the the electronic funds transfer (EFT)? Response: The Agency agrees with the order to be consistent with existing account is required to have 5 percent of programs. each loan made. If no loans have been commenter that the RMRF account would have to be set up prior to loan Response: The Agency has made, the commenter believes that such determined that an attorney’s opinion a requirement would be an undue closing. Section 4280.312(c)(1) provides, in part: ‘‘Prior to loan closing, regarding the entity’s legal status and its financial burden on the applicant to tie microlenders must provide evidence ability to enter into program up funds for this. that the RMRF and LLRF bank accounts transactions at the time of initial entry Response: The initial amount of have been set up.’’ No change has been into the program will be required (see capitalization will be 5 percent of the made in response to this comment. § 4280.310(a)(4)(ii)). Subsequent to an initial disbursal amount requested from Comment: One commenter suggested entity’s acceptance into the program, an the Agency by the MDO. The remaining using the term ‘‘Agency Personnel’’ in attorney’s opinion will not be required loan loss reserve funds can be front proposed § 4280.311(h)(2)(ii) in order to unless the Agency determines loaded into the account, or built over allow seamless movement of the significant changes to the entity have time as microloans are made. The MDO program from the national level to the occurred. The rule has been revised will maintain a minimum cash balance state level at a future date if necessary. accordingly. of 5 percent of the amount owed to the Response: The commenter is referring Report/Records/Oversight (Proposed Agency under this program in the LLRF to an earlier version of the proposed § 4280.311(i)) at all times, including at the time of the rule. The Agency is using the term initial and all subsequent draws, with ‘‘Agency’’ and that is sufficient to Comment: One commenter stated that the exception that if the LLRF falls address the commenter’s concern. the program appears to be heavily below the required amount, the Comment: One commenter suggested bureaucratic in terms of data collection microlender will have 30 days to replacing ‘‘processing officer’’ with and reporting requirements compared to replenish the LLRF. The paragraph has ‘‘Agency Official’’ in proposed the SBA Microloan program. The been clarified accordingly. § 4280.311(h)(4) for consistency. reporting requirements need to be Approval/Obligation (Proposed Response: The Agency agrees with the streamlined and reduced so § 4280.311(g)) suggestion to replace ‘‘processing administrative costs of the MDOs can be officer’’ with ‘‘Agency’’ and has made the kept lower with more focus on serving Comment: One commenter pointed to change accordingly. the microloan clients. the part of proposed § 4280.311(g) that Comment: One commenter asked why Response: The Agency makes every states that the Request for Obligation of tax considerations were included in attempt to streamline requirements. The Funds form ‘‘may be executed by the proposed § 4280.311(h)(4) as a reason portfolio reporting system for this loan approving official provided the for not approving changes (‘‘Changes in program will be fully electronic. The microlender has the legal authority to legal entities or where tax grant reporting requirements are in line contract for a loan, and to enter into considerations are the reason for the with Standard Federal reports. required agreements.’’ The commenter change will not be approved’’). Therefore, no changes have been made then asked if OGC will be making the Response: The Agency does not in response to the comment. determination that the MDO has the believe it is necessary to refer to ‘‘tax Reporting Frequency legal authority to contract for a loan. considerations’’ as questioned by the Response: As indicated previously in commenter. The Agency has recast the Comment: One commenter requested this preamble, the interim rule now sentence to state: ‘‘Changes in legal that reporting be semi-annual, and not requires the MDO to submit an entities prior to loan closing will not be quarterly, for both loans and grants. attorney’s opinion regarding the MDO’s approved.’’ (See § 4280.312(b).) Such a According to the commenter, only legal status to make loans, which the change would be considered a material qualified and experienced MDOs will be Agency will use in making the change since the issuance of the letter selected, via the scoring criteria, as determination but may consult with of conditions, so the loan would not be lenders in the program and that, in the OGC as necessary. closed. ‘‘spirit of non-micromanagement’’, Comment: One commenter suggested Comment: One commenter referred to reporting should start out as semi- replacing ‘‘loan approving official’’ with the phrase ‘‘provide sufficient evidence’’ annual. The commenter also suggested ‘‘Agency’’ for consistency within the in proposed § 4280.311(h)(5) and asked quarterly reports until loan funds are rule. what this meant. According to the spent by MDO and then convert to semi- Response: The Agency agrees with the commenter, this is inconsistent with annual reporting unless there are suggestion to replace ‘‘loan approving other Rural Development programs. servicing or delinquency issues and official’’ with ‘‘Agency’’ and has revised Response: The Agency agrees that the then they may be reverted to quarterly the paragraph accordingly. phrase ‘‘provide sufficient evidence’’ reports until operations are found to be

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satisfactory. Lastly, the commenter grants to support rural microenterprise of $500,000 in TA grants to a single recommended that, for grants, reports be development. According to this microlender). The commenters required quarterly during drawdown of commenter, the purpose statement in suggested that the final rule be clarified the grant, and then semi-annually the law could be read to suggest that to allow the TA grant accompanying the thereafter. these grants should generally represent loan to an MDO to be the maximum Response: The Agency does not 50 percent of the program, with amount allowed by law. disagree that selected applicants will be technical assistance and financial Response: The Agency has qualified and experienced MDOs will be assistance the other 50 percent. This determined that the $100,000 proposed selected to participate. However, the commenter, therefore, recommended maximum could be more limiting than level of experience may vary widely. that, at a minimum, rural intended in order to provide sufficient The Agency proposed that reporting be microenterprise development grants to technical assistance to microenterprises quarterly because microloans will be an individual MDO be capped no lower and microentrepreneurs. However, the short- to intermediate-term loans. With than $250,000 annually. Agency has also determined that, short- and intermediate-term lending, These commenters believe that such a considering the economies of scale, more frequent reporting (quarterly cap will make it difficult for funding technical assistance grants at 25 versus semi-annual) should help the organizations to fund the staff needed to percent for all outstanding loans up to microlender better manage the loan. work with borrowers and other clients, the $2.5 million maximum is Comment: One commenter was noting that good business planning, unnecessary and could divert too much concerned with the phrase ‘‘such skills in marketing, management, and of the program’s funds away from loan information as the Agency may require’’ accounting are essential to business purposes. Therefore, the Agency has (proposed § 4280.311(i)(1)(i)) and success. Several stated that the rule revised the rule to allow technical suggested that the rule needs to be should be ‘‘revised to reflect the assistance grants at a rate of 25 percent specific in what information will be language of the law.’’ for the first $400,000 of aggregate asked for in order to ensure consistency Two commenters believe that by outstanding microloans owed to the across the States. capping technical assistance funds, the microlender under this program and Response: The list of required proposed rule will make it difficult for then 5 percent on all additional reporting forms is provided in organizations to provide the services outstanding microloans owed to the § 4280.311(h)(1) and any other microenterprises need to succeed. microlender under this program above requirements will be determined by the Often, borrowers from this program $400,000 up to the $2.5 million total Agency as necessary based on the have been deemed not creditworthy by debt cap (see § 4280.313(a)(1)(i)). As a activities of the particular MDO. commercial lenders. Microenterprise result, the maximum TA grant to any Comment: In reference to proposed programs work exclusively with such one MDO in any given year would now § 4280.311(i)(4), one commenter stated borrowers and help microenterprises be $205,000. The Agency has also that there is no ‘‘RD Form 1951–4, succeed by committing significant staff clarified that the TA grant amount is an Report of RMAP/RMRF Lending resources to training and technical annual amount, as specified in the Activity’’ but that there is a ‘‘Form 1951– assistance. A cap in technical assistance statutory language. 04, Report of IRP/RDLF Lending will likely result in more defaults. Another commenter stated that this Cost Share (Proposed § 4280.312(a)(2)) Activity’’. The commenter then asked if limitation ignores the possibility of high Comment: One commenter was there is a plan to make a new form or performing, successful organizations concerned with the cost share provision use the existing form. that may not be able to meet market limiting the ‘‘Federal share’’ to 75 Response: The Agency has demand for loans simply because of the percent as it would be applied to the determined that Form RD 1951–4 is no limitation on technical assistance funds Freely Associated States (Republic of longer needed because the relevant part available. In the commenter’s view, the Palau, Republic of the Marshall Islands, of that form will be moved into the reason for this provision was to ensure and the Federated States of Micronesia). Guaranteed Loan System (GLS). Thus, that micro-lenders had adequate The commenter pointed out that the reference to the form has been removed financial capacity to support their loan Freely Associated States get much of from the rule and the Agency will use volume. The $100,000 cap undermines their financial support from the the GLS. this provision. Compact of Free Association with the Grant Provisions (§ 4280.313) In sum, commenters requested (1) no United States, which is funneled cap, (2) using the 25 percent cap across through the Department of Interior, Grant Amounts (Proposed the board, or (3) raising the limit from Office of Insular Affairs. This Compact § 4280.312(a)(1)) $100,000 to $250,000 (to be consistent funding could be a potential source of Comment: Many commenters with the $1 million annual RMRF limit match for the RMAP program and the expressed concern that the proposed for the MDO). commenter would hate to see it rule would limit technical assistance Finally, some commenters requested excluded. The commenter, therefore, grants to $100,000 despite ‘‘clear clarification as to whether the maximum suggested this provision be revised to legislative language allowing such amount of the TA grant accompany reflect ‘‘Rural Development’’ funding. grants up to 25 percent of outstanding every borrowed loan; that is, if there is The commenter suggested combining loans.’’ Three of the commenters a separate TA grant of up to $100,000 proposed § 4280.312(a)(2) and (a)(3) to referred to Section 6022(b)(4)(B), stating for every loan to a microlender (in simply say that the Agency portion that this section clearly states that the proposed § 4280.311(e)), and the cannot exceed 75 percent of the grant maximum amount of grant is ‘‘an proposed rule provides a maximum loan amount. amount equal to not more than 25 of $500,000, with an aggregate debt Lastly, one commenter stated that the percent of the total balance of owed the program by any single math in proposed § 4280.312(a)(2) and microloans made by the MDO * * * as microlender of $2,500,000, the (a)(3) does not ‘‘add up’’. The commenter of the date the grant is awarded.’’ One implication is a possibility of up to five provided the following example: commenter stated that the statute does separate loans to a single microlender Paragraph (a)(2) states the maximum TA not place any limit on the amount of the and the potential of up to an aggregate or enhancement grant cannot exceed 75

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percent and paragraph (a)(3) states that recommended that the Agency clarify response, the Agency has determined the total matching requirement is 25 the matching requirement, which the that Form 1951–4 is no longer needed percent of the grant. If the cost of the commenter understands—based on the because the relevant part of that form grant project is $10,000 and the grant law—to be a 15 percent match in the will be moved into GLS. portion is 75 percent or ($7,500) and the form of cash or in-kind funds. Comment: In reference to proposed match is 25 percent of the grant amount The other commenter also noted that § 4280.312(a)(4)(iii), one commenter ($1,875), there is a shortage of $625 of for both enhancement grants and for TA suggested adding ‘‘as revised’’ after the complete funding for the project. grants, the proposed rule states that reference to ‘‘OMB Circulars A–102 and Response: Federal funding may not be microlenders must provide a 10 percent A–110.’’ used as the non-Federal share or match match against any grant and a 15 Response: The Agency has replaced for the RMAP program unless percent cash or in-kind contribution reference to these specific circulars with specifically permitted by laws other against any grant for a total matching a more general reference to OMB than the statute authorizing RMAP. requirement of 25 percent. The LLRF circulars and regulations, eliminating Instead, language has been provided does not count for this requirement the need to add the language suggested that clarifies the statutory language (proposed § 4280.312(a)(3)). The law, by the commenter. regarding cost share (see § 4280.311(d)) however, only requires either a cash Comment: One commenter suggested and matching funds (see match or an in-kind contribution; not that all reporting requirements should § 4280.313(a)(2)). The Agency has both (section 379E(c)(1)(C)). be listed in one section and not spread revised the cost share and matching Lastly, one commenter noted that the out. requirements, which address the law authorizes the use of CDBGs for use Response: While the Agency agrees commenters’ concerns (see as a non-federal match. The commenter with the commenter, the Agency will §§ 4280.311(d) and 4280.313(a)(2)). thus recommended that the Agency address this in regulatory instructions. Matching Requirements (Proposed should include this in the final rule. Administrative Expenses (Proposed Response: The Agency has revised the § 4280.312(a)(3)) § 4280.312(a)(5)) non-Federal share and matching Comment: One commenter suggested requirements, which address the Comment: One commenter stated that recasting the text to refer to the ‘‘non- commenters’ concerns. there is a need for additional clarity Agency cash’’. With regard to the CDBG comment, about what the technical assistance Response: With regard to the when permitted by laws other than the grant may be used for. According to the suggested text edit, the Agency has statute authorizing RMAP, Federal commenter, the limitation at proposed retained ‘‘non-Federal’’ because, with funding may be used as the non-Federal § 4280.312(a)(5) that not more than 10 the exception of certain laws that allow share or match for the RMAP program. percent of the technical assistance grant the use of specific funding, other be used for administrative costs is Federal funding may not be used. Oversight (Proposed § 4280.312(a)(4)) confusing and problematic. The Comment: Two commenters Comment: One commenter noted that commenter stated that an MDO should expressed concern about an apparent the proposed rule already has be able to use its technical assistance inconsistency between the law and the provisions for oversight at proposed grant to pay for all of the costs proposed rule with respect to matching § 4280.311(i) and suggested combining associated with providing a functional funds for the grant provisions in the the two provisions. staff to provide technical assistance to RMAP. Response: The oversight provisions microentrepreneurs. Such costs should One of the commenters referred to the commenter is referring to in be expressly allowed and not be section 379E(c)(1)(B) of the 2008 Farm proposed § 4280.311(i) apply to loans. governed by the 10 percent figure. Bill, which indicates that an MDO must The oversight provisions in proposed Response: The Agency acknowledges provide a match of 15 percent the grant § 4280.312(a)(4) apply to grants. Because that intensive technical assistance is amount in the form of matching funds, the provisions are different and apply to widely recognized in the microlending indirect costs, or in-kind goods or two different types of financial community as a critical component to services. For both enhancement grants assistance, the Agency has not the success of potential and existing and for technical assistance grants, combined the two paragraphs as microborrowers. The 10 percent proposed § 4280.312(a)(3) states that suggested by the commenter. However, limitation is statutory (section microlenders must provide a 10 percent the Agency has determined that there is 379E(b)(4)(C)). With regard to the match against any grant and a 15 no need for two grant oversight commenter’s request for additional percent cash or in-kind contribution paragraphs found in proposed clarity, the Agency disagrees that the against any grant for a total matching §§ 4280.312(a)(4) and 4280.320(a). rule is not sufficiently clear as to what requirement of 25 percent. The Therefore, the Agency has deleted the the technical assistance grant may be proposed rule indicates that the loan first occurrence so that all grant used for and no changes have been loss reserve fund does not count for this oversight provisions are found in made to the rule in response to this requirement. The law, however, only § 4280.320(a). comment. requires either a cash match or an in- Comment: In reference to proposed kind contribution. According to this § 4280.312(a)(4)(i), one commenter Enhancement Grants (Proposed commenter, there seems to be an asked if the reporting will be with SF– § 4280.312(b)) inconsistency between the law and the 269, ‘‘Financial Status Report,’’ (Long Comment: One commenter stated that proposed rule. For an MDO, the Form) or (Short Form). The commenter the enhancement grant is an difference could have serious also asked if this was in addition to the unnecessary diversion of scarce RMAP ramifications. Rural MDOs are narrative and to Form RD 1951–4. funds. Enhancement grants as proposed challenged by the relative lack of local Response: The SF–269 has been are small ($25,000) and limited to the foundations, the fact that fewer replaced with SF–PPR, ‘‘Performance purpose of building MDO capacity. corporations are headquartered in rural Progress Report.’’ The new form will be There are other USDA Rural areas, and continually strained state submitted in conjunction with the Development programs available to do budgets. The commenter, therefore, narrative. As noted in a previous this—RBEG, RBOG, Rural Community

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Development Initiative (RCDI)—as well Comment: Several commenters noted disbursed on a quarterly basis based on as other sources from other funders and that this section does not address the amount of microloans made. This federal programs. There is no expressed borrowers who are ‘‘seeking a loan from limitation of TA grant disbursement will requirement in the statute to create an an MDO’’; that it addresses only people limit the amount of technical assistance Enhancement Grant program, and it who have received one or more an MDO can offer to borrowers or would be a much better approach to microloans and that this is in potential borrowers. In the long-run it direct all of the scarce RMAP grants to contradiction to the statute authorizing could affect the pipeline of microloan supporting the MDO’s who are actually the program. As one of the commenters borrowers, something about which the making microloans instead. stated: This section of the proposed rule proposed rule is concerned in other One commenter suggested an optional states that TA grants can only be used sections. approach to provide enhancement for people that have ‘‘received one or One commenter stated that the grants, recommending that the rule more microloans’’ from the MDO. manner for disbursement of funds needs allow the Agency to make larger However, the law also allows these TA to be clearer. This commenter states that enhancement grants to microlenders grant funds to be used for services to it appears that the proposed rule that, on a competitive basis, will select microentrepreneurs that ‘‘are seeking a envisions awarding TA grants only in a group of rural microlenders to provide loan from the’’ MDO (Section conjunction with the award of RMAP a platform for group, individual, and 6022(b)(4)(B)(i)(II)). The law clearly loan funds. Initially this certainly makes peer-to-peer enhancement services. The intends to support microentrepreneurs sense, but in years after an RMAP fund commenter referred to the U.S. Small who are owners and operators of rural is established, it is still desirable to Business Administration’s Program for businesses or prospective owners and provide TA grant support. In fact, it Investment in Microentrepreneurs operators of rural businesses. The would be ideal if an RMAP MDO, once (PRIME) as an example of such an definition of ‘‘microentrepreneur’’ in funded, could depend upon rather than approach. both the law and Proposed Rule include compete for TA grants. A possible structure might be to award a TA grant Response: The Agency disagrees with both types of microentrepreneurs. This equal to 25 percent of the RMAP loan the commenter concerning the statutory section would ignore the need for award in Year 1, with a commitment basis for the ‘‘enhancement grant’’ technical assistance for prospective that provided the MDO makes program. The statute states at section microborrowers as contemplated by the satisfactory progress, it will be 379E(b)(4)(A)(i)(II): ‘‘Carry out such law. The commenters suggested that the noncompetitively awarded a subsequent other projects and activities as the final rule be modified to conform to the law. TA grant in Years 2, 3, and 4 equal to Secretary determines appropriate to One commenter also stated that, in 20 percent, 15 percent, and 10 percent further the purpose of the program.’’ practical terms, most respectively of their RMAP microloan However, because opinions differ microentrepreneurs seeking a loan need portfolio. This will have the effect of widely on how best to approach an technical assistance to complete the creating incentives for the MDO to get enhancement grant category to this loan process, and it is often difficult for their RMAP funds loaned out quickly program, the Agency is requesting MDO lenders to determine in advance (since the size of subsequent TA grants comments on this subject (see Section V whether an applicant will successfully will be pegged to their portfolio size) of this preamble). Comments will be complete the borrowing process. In fact, and will provide a reliable funding considered prior to publication of the in some cases, well-crafted pre-loan stream with the understanding that the final rule. assistance will enable a RMAP MDO will need to get established Technical Assistance Grants (Proposed microentrepreneur to determine a internally and gradually come to rely § 4280.312(c)) means to grow or stabilize their business less on RMAP TA grant. (It should be without taking on the risk of a loan, and noted that there is a precedent for Rural Comment: One commenter noted that as a result they will choose not to Development awarding grants for multi- this section states that TA grants will be borrow. year terms—e.g., the Section 523 Self- based on the loan amount made to an Response: The Agency agrees with the Help TA program. A similar approach MDO ‘‘in accordance with the statute.’’ commenters that the rule should would make sense for the RMAP TA The statute does not at any time state include these entities and has so grant.) that TA grants should be calculated in modified the rule (see § 4280.313(b)(1)). A sixth commenter recommended that this manner; however, the report the TA grant structure allow for the language does allow for this mechanism. Disbursement of TA Grant (Proposed training and technical assistance of Response: The statute states at section § 4280.312(c)(2)) prospective microentrepreneurs as well 379E(b)(4)(B)(ii): ‘‘Maximum amount of Comment: Several commenters as existing microentrepreneurs by grant. A microenterprise development discussed the manner proposed for awarding TA grants quarterly or organization shall be eligible to receive disbursing TA grants. Four suggested annually, based on statutory allowances, an annual grant under this subparagraph that the TA grant be a full year grant and program performance, and in an amount equal to not more than 25 not based on the microloans made for demonstrated need. percent of the total outstanding balance the first year. Another similarly Response: With regard to the initial of microloans made by the recommended that, during the first year (first year) grant, the amount will be microenterprise development of an intermediary’s participation in calculated against the initial loan organization under paragraph (3), as of RMAP, the TA grant should be a full amount. With regard to the manner of the date the grant is awarded.’’ While year grant based on the amount of the disbursement, these will coincide with the text in the preamble to which the loan to the intermediary. loan disbursements to ensure that funds commenter is referring may not reflect Commenters noted that this section of are available for microlending for loan this statutory provision clearly, this is the proposed rule states that during the ready clients, that these clients can the statutory language on which the first year of operation the disbursement receive post loan technical assistance, statement in question was made. The of TA grants to MDOs shall be a and that incoming clients can also Agency will ensure clarity in the percentage based on the amount of the receive technical assistance. This will interim rule. loan to the microlender, but will be allow the initial disbursement of grant

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dollars in advance with the remaining suggested adding organizational (found in § 4280.315(c)(8)(ii)) to, in part, quarters to be funded in reimbursement. documents as an additional remove reference to the IRS. The Agency notes that quarterly documentation requirement. Comment: In reference to proposed disbursements do not imply that one- Response: As proposed, the rule § 4280.315(d)(1)(iv), one commenter quarter of the grant will be disbursed requested organizational documents in suggested adding the words ‘‘not more each quarter. If an MDO needs, for § 4280.316(a)(1) as part of the than 6 months old’’ after ‘‘A Certificate example, 50 percent of the grant in the application. This has been retained and of Good Standing.’’ first quarter, the rule allows the Agency an appropriate reference has been added Response: The Agency agrees with the to provide that amount in the first to § 4280.315(d)(1). commenter’s suggestion that the quarter. Comment: One commenter suggested certificate of good standing not be more Overall, the Agency is satisfied that using the certification under 1940–Q than 6 months old and has revised the the proposed distribution of money is instead of Form SF LLL. According to rule accordingly. sufficient for participating MDOs to the commenter, 1940–Q is used more Comment: Another commenter implement technical assistance frequently than SF LLL. expressed concern with the requirement associated with loans made under this Response: While the commenter is that the Certificate of Good Standing program. As the program matures, the correct in that either the certification come from the applicant’s home state’s Agency will evaluate this method of under 1940–Q or Form SF LLL can be Office of the Secretary of State. disbursement. used, the Agency prefers to use SF LLL According to the commenter, the commenter’s State does not provide MDO Application and Submission because it is shorter, meets the needs of these certificates to institutions of Information (§ 4280.315) the Agency, and is consistent with the Agency’s other grant programs. higher education and doubted that other Comment: One commenter noted that Therefore, the reference to SF LLL has States would do so for an Indian tribe the application content specified in been retained in the interim rule. within their borders. USDA Rural Development’s IRP Response: The Agency understands regulation (7 CFR 4274.338, including Additional Documentation (Proposed the commenter’s concern. As a result, the use of the IRP application—Form RD § 4280.315(d)) the language has been altered to exclude 4274–1) provides a detailed, well- Comment: One commenter the need of a Certificate of Good understood, and complete set of all of recommended adding the following Standing for institutions of higher the information needed for a revolving requirement for additional education and for Indian tribes. loan fund loan application. The documentation: ‘‘Applicants are strongly Application Scoring (§ 4280.316) commenter recommended using this encouraged to review the scoring Comment: One commenter stated that form in lieu of the SF–424 as specified criteria and provide documentation that a new application scoring process will in § 4280.315. will support the score.’’ According to the Response: The Agency disagrees with be needed if the Agency includes in the commenter, this needs to be brought to the commenter’s recommendation rule grants to MDOs solely for the the applicant’s attention or they will because this program is not meant to purpose of the provision of training, look only at the application submission replicate the IRP program. The program technical assistance, and other business requirements and not provide sufficient information requested by the Agency development services to information for scoring or a successful will provide the data necessary to microentrepreneurs. application. There is a disconnect in appropriately evaluate applicants for Response: As noted in a response to many of our programs between ‘‘scope of this program. previous comments, the Agency is work requirements’’ and ‘‘scoring including such grants in the rule and Submission Requirements (Proposed criteria’’. We need to do a better job of has provided a new application scoring § 4280.315(c)) having applicants address burdensome system for these grants (see Comment: One commenter was scoring data—particularly with a § 4280.316(d)). concerned that the submission program that is going to be administered requirements did not include mention at the National level initially. Past Experience Requirement of a narrative, detailed budget, and Response: The Agency agrees with the Comment: Many commenters submission of lending and servicing commenter that the proposed text expressed concern over the proposed policies. would be useful to help ensure receipt rule’s emphasis on an MDO’s past Response: As proposed, there were of better applications and has modified experience, especially in rural areas, several places within § 4280.316 that the rule accordingly with reference to when scoring applications. asked for a narrative. In addition, the additional application requirements Commenters, in general, were financial information was requested in in § 4280.316. concerned with the proposed scoring proposed § 4280.316(a)(5) and loan Comment: In reference to proposed that would enable MDOs with past policies and procedures were requested § 4280.315(d)(1)(i), one commenter experience and those currently in proposed § 4280.316(a)(2). These expressed concern that the requirement operating in rural areas to be awarded provisions have been retained and for copies of an applicant’s IRS more points (and thus be able to score appropriate reference to § 4280.316 has designation as a non-profit would higher) than to those MDOs that do not. been added to § 4280.315 for clarity. effectively block all non-profits in the According to the commenters, such Comment: One commenter asked why Freely Associated States from being scoring would not only put urban MDOs the proposed rule did not ask for eligible. The commenter asked: Why not at a disadvantage, but would also organizational documents and suggested just get an OGC opinion similar to the discourage their expansion into rural that it be added to the list of documents Community Facilities program? areas. to be submitted. According to the Response: The Agency agrees with the Several commenters also stated that commenter, organization documents commenter’s concern. As noted the proposed rule does not adequately should be submitted to Agency previously in a response to a comment account for MDOs creating and personnel for analysis and eligibility on the definition of ‘‘nonprofit entity,’’ proposing an effective plan for determination. Another commenter the Agency has revised this requirement providing services to rural areas. By

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awarding points to MDOs with past advantage over another category of to partner with key local, regional, and experience, the proposed rule puts rural applicants. statewide stakeholders that can help MDOs who want to add microenterprise MDOs succeed in their mission. Most Too Complex/Replace Scoring System services at a disadvantage. As one successful economic development commenter stated, an MDO with a Comment: One commenter stated that efforts are due to key local, regional and proven microenterprise track record that the proposed scoring system is overly statewide partnerships that bring has a viable plan to now provide elaborate and complex, and it will not together community stakeholders lending services may be prohibited from really single out projects with the engaged in economic development doing so by the scoring rules, thus greatest merit. This commenter efforts. These partnerships provide potentially denying microlending recommended replacing the proposed MDOs with additional sources of services to an unserved or underserved scoring system with a much simpler financing, technical assistance and buy- rural area. system that is based on only three in from economic development agencies In sum, these commenters stated that, factors: Leverage of USDA funds that are critical to program success. if RMAP is to succeed, it must prompt (Matching Funds); Prospect for Success They also help to ensure that MDOs are both the development of new services (Experience and Track Record); and not working in a vacuum or duplicating by existing providers of a single service Targeted Groups (Outmigration/ services that are already available to and the expansion of existing urban Minority Focus). microentrepreneurs. The commenters programs into rural areas. The Response: The commenter’s suggested recommended that USDA add an commenters believe that the rule as three factors are included in the scoring additional scoring component that proposed would discourage both and criteria. The Agency believes that some requires MDOs to demonstrate their thereby undermine the success of RMAP level of detail, in addition to those three ability to partner with these key in achieving the purposes for which it factors, regarding applicant capabilities, stakeholders. One of the commenters was created. legal status, historical performance, and suggested up to 15 points be awarded On the other hand, another other details are important in and that this new criterion should also commenter urged the Agency to determining the applicant’s abilities to be included in enhancement grant maintain a strong commitment to make and service microloans, provide scoring criteria (proposed § 4280.316(d) supporting microlenders who are technical assistance, and facilitate and (e)). located in and predominantly serve access to capital. Therefore, the scoring Response: The critical and essential rural communities. While criteria have been designed to provide scoring criteria have been included at understanding the interests of some to the Agency with in-depth information this time. While we agree there is value in partnering, our primary need is to incentivize urban-based microlenders to regarding each applicant and help establish an understanding of the expand their lending territories into ensure the success of the program and capacity of each applicant to provide rural communities, this commenter its end user clients. microloans and technical assistance. As believes that the best service providers Subjective Scoring Criteria noted previously in this preamble, are locally based, have strong ties to Comment: Two commenters stated MDOs selected to participate in the their rural communities, and are that numerous criteria are subjective program are encouraged to develop intimately connected with the rural and may lead to inconsistent or community-based partnerships. economies they serve. The commenter unreliable scoring, particularly if However, such partnerships and further believes that the greatest benefit reviewers were to lack familiarity with collaboratives will be developed outside to rural entrepreneurs will be felt rural microlending management best of the relationship between the Agency through building the capacity of rural- practices. One of the commenters and the participating MDOs. Thus, no based microlenders, not through specifically stated that the criteria found further points are needed. additional outreach from urban markets in proposed § 4280.316(c)(1), (3), (5), (6), Fixed Versus Ranges in Scoring and asks that the Agency preserve and (7) are highly subjective and scoring priority for microlending organizations may vary greatly from individual Comment: One commenter was having a strong history with, and a clear reviewer to individual reviewer. concerned with scoring criteria that commitment to, rural communities. Response: The Agency disagrees that relied on ranges. According to the Response: The Agency understands these provisions are unduly subjective commenter, awarding points through and recognizes the commenter’s concern and will result in inconsistent scoring. the use of ranges is not objective; most as it regards MDOs with more than 3 Because the same staff within the states will award the applicant the full years experience, but without rural area National Office will score all score just to be competitive. To be experience. However, it is specifically applications as the program is objective, the criteria must be based on the intent of RMAP to leverage as much implemented, the Agency can ensure whether the applicant has either as possible the existing rural consistent and reliable scoring. As the addressed the criteria or not. In the development experience of MDOs and program matures, the Agency may have commenter’s experience with the RBOG to serve, exclusively, rural areas. State office personnel score RMAP program, the commenter has issues with Further, if the MDO has 3 years or less applications. At the time of publication the subjectivity of a range of score experience, the scoring does not take of the final rule, the Agency will versus the objectivity of a set score. The into account past experience in making publish detailed regulatory instructions commenter believes that the rule should loans to rural areas or to rural with guidance on scoring to help ensure be kept simple; that is, no ranges, just microentrepreneurs. Thus, RMAP does consistency across the State offices. points. Either the applicant has not discourage the development of new documented the criteria or not with providers as suggested by the Points for Partnering points being awarded if they have and commenter. Comment: Two commenters suggested no points if they have not. Finally, each of the categories of awarding points for partnering. The The commenter was also concerned prospective participants adds up to a commenters noted that under proposed that there is insufficient direction on total score of 100 points so that no § 4280.316(a) no points will be awarded how to score the criteria when scoring category of applicants will have any based on the capacity of the applicant is shown as 0 to 5 points, for example.

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To illustrate, the commenter referred to scoring system, since they are an same number of points is awarded for proposed § 4280.316(a)(1), which states increasingly necessary component in the MDOs understanding of ‘‘an organizational chart [must be providing a comprehensive program and microlending. The allocation of points submitted] clearly showing the would provide greater marginal impacts. for the basic scoring of all applicants positions and naming the individuals in Response: Nanoloans fit well within fails to recognize what is important for those positions. Of particular interest to program requirements and can be easily MDOs to properly serve rural the Agency are the management accommodated. The Agency also sees microentrepreneurs. The ability of staff positions and those positions essential value in spreading risk via numerous to administer the program can be to the operation of microlending and TA loans at smaller amounts. Because these determined through other required programming; award 0–5 points.’’ The loans will fit well within program application items and through MDO commenter asked how the Agency requirements, no additional scoring for history, and the points awarded for would make a decision of 0 to 5 points, that level of lending will be given. At resumes and an organizational chart because there is no requirement for this point in time, lending history could be focused elsewhere. experience, until you get to paragraph information called for in the scoring (2) It seems superfluous to award up (a)(4), which is another scoring criteria will provide the Agency with to 5 points for an organizational chart criterion. The commenter was also sufficient data to make appropriate and another 5 points for adequate concerned that the lack of direction decisions. resumes for a combined 10 points. would result in inconsistency in scoring These two categories can be combined across the states. Narrative Length for fewer points and demonstrating an Lastly, this commenter expressed Comment: One commenter understanding of microlending with several concerns with the proposed recommended setting a page limit (or equal emphasis on loan making and scoring found in proposed number of words) whenever the providing technical assistance should § 4280.316(a). The commenter stated proposed rule requests the applicant to earn more than the current up to 5 that there needs to be thresholds for provide a narrative. The commenter points. scoring different categories; that is, the noted two spots where there are page (3) Under proposed § 4280.316(b)(1), rule should clearly identify what limits (5 and 7) and suggested in both History of Provision of microloans, information will result in a score of 1 cases that is still too many pages for a paragraphs (b)(ii) through (b)(iv), award point or 3 points or 5 points. In other narrative. up to 8 points for the percentage of the words, there needs to be more detail on Response: The Agency agrees and has number and amount of loans made in how to distinguish between, for set a uniform length (5 pages) for all rural areas, but only up to 4 points for example, scoring 10 out of 10 on narratives. the number and amount of microloans financial statements versus scoring 3 out made in rural areas. The commenter of 10. Fairness of <3 Years vs. >3 Years recommended that, if the goal of RMAP Response: The Agency believes that Experience is to maximize the number and value of ranges are appropriately identified for Comment: One commenter stated that loans made to rural microenterprises, the scoring criteria identified by the setting up different standards for the scoring system should provide commenter. For each criterion, it will be inexperienced MDO’s (‘‘<3 years’’ relatively more points to lenders with a up to the applicant as to how much experience) and established MDO’s (‘‘3+ history of making larger numbers (and a material to provide in addressing the years’’ experience), is not fair, nor is it larger dollar value) of microloans in criterion and the quality of that good policy because it has the effect of rural areas, regardless of the percentage material. To help ensure consistency in slightly favoring inexperienced of their total microloan portfolio those scoring these criteria among National applicants for a high risk undertaking. loans represent. In other words, a lender Office Agency staff, the Agency will be Response: The statute requires that that has made 40 microloans in rural providing regulatory instructions on MDOs have ‘‘a demonstrated record of areas that represent 10 percent of its how to score each of these criteria. delivering services to rural total portfolio should receive a microentrepreneurs, or an effective plan relatively higher score than a lender that Points for Smaller Loans to develop a program to deliver services has made 4 loans in rural areas that Comment: One commenter stated that, to rural microentrepreneurs, as represent 100 percent of its total to become an effective national program, determined by the Secretary.’’ As a portfolio. the benefits must be spread across the result, it is necessary to consider (4) Proposed § 4280.316(b)(3)(v) widest range of rural entrepreneurs and experienced as well as new entities. The provides seven points for providing loan rural communities. To accomplish this scoring system has been created so that and TA services to 75 percent or more goal, consideration should be given to all categories of applicants can score up socially-disadvantaged providing some application points for to 100 points. Thus, no category of microentrepreneurs, but cuts the points MDOs that will target the provision of applicants will have an advantage. nearly in half (to four points) for 50 to smaller loans and provide 74 percent. According to the complementary nanoloan programs Relative Points Awarded commenters, it could be very hard in (loans of less than $5,000) designed for Comment: A number of commenters many places, like the Great Plains, to helping to repair credit scores. In expressed concern with the relative reach 75 percent, particularly with other today’s economic environment it is very weighting of points among the scoring rules requiring services to match the easy for rural clients to see their credit criteria in proposed § 4280.316(a) and service area demographics. The scores plummet due to loss of a job, (b). Concerns expressed were: commenters suggested increasing the unplanned medical bills, housing crisis, (1) Proposed § 4280.316(a)(4) requires points awarded in this section to six or credit crisis. Small credit builder loan that resumes of all staff on the MDO’s points for loans and technical assistance programs require more administration organizational chart be provided in the to at least 67 percent but less than 75 and technical assistance per dollar value application, and up to 5 points are socially-disadvantaged of loan balances and the commenter awarded for both the ‘‘quality’’ of staff microentrepreneurs, and four points for suggested that they be given extra resumes and for inclusion of the at least 50 percent but not more than 67 consideration weight in the application organizational chart. Meanwhile, the percent. That way MDOs in less racially

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diverse rural areas like the Great Plains composition demonstrates the diversity microlending. The allocation of points will not have to sacrifice points while of local stakeholders that are involved for the basic scoring of all applicants still having a diverse portfolio. in the governance of the MDO. fails to recognize what is important for (5) The scoring structure for Response: The Agency accepts that MDOs to properly serve rural microlenders with more than three years the proposed scoring system was microentrepreneurs. The ability of staff of experience should be changed to complicated and sometimes unclear. As to administer the program can be value that experience by awarding a result, categories have been clarified determined through other required lenders that have made larger numbers and reorganized, specific items have application items and through MDO (and lent more dollars) to been moved to specific loan and grant history, and the points awarded for microentrepreneurs. type categories, subjective and objective resumes and an organizational chart (6) More points should be awarded for items have been assigned points more could be focused elsewhere. an MDOs successful training history appropriate to their actual value, and Response: The organizational chart is because successful MDOs train many other such changes have been applied. requested of all applicant entities (see more microentrepreneurs than they The new scoring criteria are located in § 4280.316(a)(1)) for several reasons. It is provide loans. According to the § 4280.316. important to know which personnel are commenter, if the MDOs are good at the The Agency disagrees that the quality in program-pertinent position on the work, some of the microentrepreneurs of resumes and organizational structure chart. It is also important to know find they do not need credit or gain the are not important. Without such quality whether or not there is a larger knowledge to allow them to receive and structure, the MDO may not have organization beyond the microenterprise loans in the commercial credit market. the right level of management and specific offices. This provides the The proposed scoring metric awards too understanding to make microloans. Agency with a sense of whether many points for having made loans and Lastly, as indicated in § 4280.316(a)(2), applicants are stand-alone entities or disadvantages organizations whose resumes are requested for the have a greater support structure behind emphasis is on training. The long-term individuals shown on the organizational them. When used in concert with the positive effect of the program will chart which would be, as indicated in resumes, the Agency will have a more depend on how successful it is at § 4280.316(a)(1), management positions complete picture of the capacity and building community economic capacity, and those positions essential to the capability of the applicant. The which depends at least as much on operation of the subject program. organizational structure and resumes of effective training as on lending. key people provide insight into the Understanding of Microlending (7) Require an organizational chart understanding of microlending and the (Proposed § 4280.316(a)(2)) and staff resumes together and awarding ability of the applicant entity to serve a maximum of less than 5 points Comment: One commenter rural microentrepreneurs that is in combined for the two items, and recommended that an MDO’s addition to information found in the reallocating the remaining points (5 plus understanding of technical assistance policies and procedures manuals as whatever is remaining from the play a stronger role in the scoring of requested in § 4280.316(a)(4). No change organizational chart/resume applications because, according to the has been made in response to this combination) to other items, such as commenter, the TA portions of RMAP comment. location in an outmigration area and are essential and the consensus view is information regarding understanding of that technical assistance is crucial for Organization Mission Statement technical assistance to the success of rural microentrepreneurs. (Proposed § 4280.316(a)(6)) microentrepreneurs. The commenters The commenter pointed out that up to Comment: Two commenters stated also recommended that staff information 5 points would be awarded for the that proposed § 4280.316(a)(6) awards and resumes, if required, be required applicant’s understanding of up to 5 points for the applicant’s only for organizational employees microlending. Included in proposed organizational mission statement. The dealing directly with § 4280.316(a)(2) also is the term commenters recommended that this microentrepreneurs, microlending, and/ ‘‘provision of technical assistance.’’ This scoring component be clarified to or the providing of technical assistance seems to indicate that applicant MDOs emphasize the importance of an services. must also provide evidence of their applicant’s connection to broader local (8) Amend these criteria in the final understanding of technical assistance. and regional economic development rule to emphasize that applicants will Response: The Agency agrees with the plans and efforts. One of the be judged on the governance structure of commenter that this provision needs to commenters referenced the the MDO. In particular, the board of address the MDO’s experience with development strategies as outlined in directors or governing body of the MDO providing technical assistance and has the U.S. Economic Development should include a diverse representation revised the rule accordingly (see Administration’s Comprehensive of various sectors of the community § 4280.316(a)(4)) to request provision of Economic Development Strategy (CEDS) including local elected officials. In the MDO’s policy and procedures or other federally recognized plans. The supporting this recommendation, the manual addressing technical assistance. other commenter recommended that commenter states that USDA this section provide up to 15 points and emphasizes the management positions Resumes (Proposed § 4280.316(a)(4)) should also be included in proposed as a critical component of the scoring Comment: One commenter noted that § 4280.316(d) and (e). for this section and notes that this is an proposed § 4280.316(a)(4) requires that One commenter suggested that the important factor in a MDO applicant’s resumes of all staff on the MDO’s scoring criteria in proposed success. However, the most critical organizational chart be provided in the § 4280.316(a)(1) through (a)(7) be organizational component that should application, and up to 5 points are enhanced to ensure that applicants are be evaluated for an MDO is the awarded for both the ‘‘quality’’ of staff representative of their communities, composition of its governing body or resumes and for inclusion of the working in partnership with other local board. This body will be responsible for organizational chart. Meanwhile, the and regional development entities and compliance with the funding award same number of points is awarded for are linked to a broader local or regional regardless of staff changes and its the MDOs understanding of economic development planning effort.

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If the applicant does not currently Response: With regard to the evaluation of the MDO. However, to possess these additional criteria, they consideration of outmigration for respond to the demographic questions, should still be encouraged to develop a making loans and TA grants, the the Agency has named three plan to enhance these connections in commenters are correct in that the demographic groups by which MDOs their application and be scored criterion does not apply to loan should be able to illustrate their favorably for developing these plans. applications as written in the statute. activities. These are women, minorities, Response: As indicated previously, The outmigration scoring criterion and the disabled. should have been applied to we agree that connections to broader Diversity (Proposed § 4280.316(b)(1)(v)) local and regional CEDS are valuable. enhancement grants, which, as noted However, the focus at this time is to elsewhere in this preamble, are not Comment: A number of commenters include entities that best deliver included in the interim rule. were concerned about how the scoring microloans and technical assistance. would affect MDOs that specialize in MDOs With More Than 3 Years serving specific populations. Most Geographic Service Area (Proposed Experience (Proposed § 4280.316(b)(1)) submitted similar comments as captured § 4280.316(a)(7)) Comment: One commenter stated that by the following comment: Comment: Many commenters the application scoring rules provide Proposed § 4280.316(b)(1)(v) provides expressed concern on the outmigration substantial points for MDOs with points for how closely an MDOs provisions proposed. These comments demonstrated track records of providing microloan portfolio matches the fell into the following two main lending services to rural demographics of the MDO’s service area. Some MDOs will naturally serve concerns: microentrepreneurs, but fail to provide points for effective plans to deliver such certain segments of the service area (e.g., (1) Do not include outmigration services. In the definition of MDO, the female or low-income entrepreneurs), criterion in the loan provisions because statute states an MDO is an organization generally for reasons that such the statute is silent on this as it regards that ‘‘has a demonstrated record of demographic segments are historically loans. These commenters noted that the delivering services to rural underserved or unserved. For that only mention of outmigration is in microentrepreneurs, or an effective plan reason, their portfolio may not match connection with the proposed to develop a program to deliver services the demographics of the service area, ‘‘enhancement grants’’ and not with to rural microentrepreneurs’’ (section thus potentially penalizing those MDOs loans or with technical assistance 379E(a)(3)(D)). In the final rule, in the scoring pursuant to this section. grants. provision should be made to provide This paragraph also provides points (2) Reduce the emphasis on significant points to an MDO with a when at least one loan made to each outmigration in scoring and rating of proven microenterprise track record that demographic group is within specified proposals. Three commenters stated that has a viable plan to now provide percentage points of the demographic population dynamics look quite lending services. This change will be makeup of the service area. This different throughout rural America, and critical to reaching micro-businesses in paragraph is confusing, as it is not clear outmigration, as the main criteria for underserved areas or among what ‘‘each demographic group’’ means assessing need, is not a good indicator. underserved populations. (does it mean, for example, every racial Each commenter referred to California, Response: The Agency agrees that or ethnic or socio-economic group that noting that California and other states there is value in having a proven track has at least one resident in the service that are not experiencing net record as well as a plan. The initial area?); also MDOs that focus on certain outmigration are prejudiced by the information required of all applicants segments of the population (female or emphasis on this as criteria for will provide the Agency with sufficient low-income entrepreneurs, for instance) qualification for these RMAP funds. information to determine basic capacity. may be penalized. While we support Poverty and economic decline exist in In addition, there is a scoring section for using RMAP to support diverse rural California despite the fact that MDOs that have a demonstrated record clientele, we would suggest that the population levels have stabilized or (§ 4280.316(b)). There is a separate final rule recognize and not penalize even increased. A fourth commenter section (§ 4280.316(c)) for MDOs that MDOs that serve historically suggested the Agency consider lowering have 3 years or less of experience; this underserved or unserved populations in the rating system for ‘‘outmigration’’. By section calls for written plans. their rural service areas. We also suggest rewarding extremely high outmigration, Comment: Two commenters were that language on ‘‘each demographic associated infrastructure may not be concerned over the amount of group’’ as outlined above be clarified in available to support recordkeeping that would be required to the final rule. microentrepreneurs. comply with proposed One commenter recommended One commenter stated that the law § 4280.316(b)(1)(v) and in scoring in deleting this criterion or reducing the does not define outmigration as is done general. These commenters stated that number of points associated with it. in the proposed rule and that the some application requirements are According to the commenter, many of definition will significantly curtail the overly burdensome for the borrower the most successful MDOs concentrate ability of MDOs to serve rural areas. The compared to the dollars requested. on training, technical assistance, and commenter stated that residents of Recordkeeping required for scoring lending to one or several disadvantaged distressed rural communities are more criteria, such as those found in demographic groups. They have the dependent on microenterprises for their proposed § 4280.316(b)(1)(v), involves knowledge and credibility to serve these livelihoods and often are unable to notable efforts of recordkeeping that underserved populations best and move to areas with more employment does not have anything to do with the should not be disadvantaged for opportunities. The commenter fundamental business of the MDOs and concentrating their work. In order to recommended that the Agency align the involves information that MDOs cannot ensure the program is reaching diverse proposed rule with the structure of the require borrowers to provide. groups, the commenter recommended law by not including areas of Response: The Agency disagrees. that the Agency charge application outmigration as part of the loan program Keeping appropriate records is essential reviewers to ensure proper lending requirements. to the understanding, assessment, and coverage to all groups in a geographic

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area when they consider which MDOs Comment: One commenter (3) The approach in the proposed rule to fund. recommended that the rule further does not request information on loans Response: The Agency disagrees that define or list demographic groups being that are greater than 90 days in arrears, the proposed scoring criteria would targeted. but have not yet been written off. These penalize entities that serve certain Response: The Agency has identified are the delinquent loans that generally segments of the population. The Agency the specific demographic groups in pose the greatest risk to the lender, offers no penalties regarding scoring on response to the comment. Demographic particularly if the lender does not have the provision of services. Organizations groups shall include gender, racial or or adhere to a strict policy and time that have historically served a specific ethnic minority status, and disability as frame for writing off loans that have group of prospective microborrowers defined by The Americans with become significantly delinquent. will be required, by Fair Credit Lending Disabilities Act. (See The commenters recommended that, rules, to open their doors to all, whether § 4280.316(b)(1)(v)) in assessing portfolio quality, the rule or not they fit the particular require applicants provide information Portfolio Management (Proposed demographics of the historic customers for the past three fiscal years on the § 4280.316(b)(2)) or the geographical area. Following the following three measures: pattern of fairness, the Agency would Comment: Two commenters (a) Portfolio at risk: Defined as the anticipate that TA grant recipients will expressed several similar concerns with outstanding principal balance of loans provide services to all groups as well. this criterion. The issues cited by these with payments greater than 30 days past Comment: One commenter suggested commenters are: due, divided by the total dollar amount that the scoring structure be altered so (1) This criterion proposes to use a set of outstanding loans, as of the last day that the applications of MDOs that have of measures of portfolio performance of the fiscal year. (b) Loan loss rate: Defined as the total stated missions to provide services to that are not commonly used in the dollar value of loans declared as written underserved populations are scored microenterprise and community off or nonrecoverable, net of recoveries, appropriately. development field, and that would not divided by the average outstanding Response: The Agency agrees with the provide full or sufficient information on value of the portfolio over the course of commenter and does require mission the level of risk in the applicant’s loan the fiscal year. statements as a part of the application portfolio. Specifically, proposed (c) Restructured loan rate: The dollar process. As the mission statements are § 4280.316(b)(2)(i) requests that amount of all loans that have been ‘‘ reviewed, they will be scored in applicants enter the total number of restructured, divided by the total dollar accordance with how well the your microloans paying on time for the amount of outstanding loans as of the ’’ applicant’s mission statement matches three previous fiscal years. The term last day of the fiscal year. program requirements. The capacity to ‘‘paying on time for the three previous Lastly, the commenters noted that serve underserved populations is fiscal years’’ is not defined, and could be they believe it is important to examine considered as a part of § 4280.316. interpreted numerous ways, including: loans that have been restructured, as Comment: One commenter noted that The number of outstanding loans that well as those that are delinquent and/or proposed § 4280.316(b)(1) requests data never experienced a late payment over written off, because those loans do regarding the history of the MDO’s the course of the year, the number of indicate risk to the portfolio. provision of microloans for the three loans that were current at year-end, or Response: The Agency understands years prior to its application. Most of the number of loans that paid off as that microlenders nationwide may differ these data are readily available; scheduled during the course of the year. in their portfolio management however, some of the data points However, this term might be defined by definitions. In response, the Agency requested appear to reflect the more the applicant, none of the above is a attempted to provide scoring criteria narrowly targeted goals of the widely-accepted measure of portfolio that could be best addressed by all Enhancement Grant program as opposed quality in the microenterprise or entities as opposed to numerous criteria to the loan program. For example, community development finance that would meet regionally-specific proposed § 4280.316(b)(1)(v) requests industry. benchmarks. information on the diversity of the (2) Proposed § 4280.316(b)(2)(ii) MDO’s microloan portfolio. The requires applicants to ‘‘enter the total Technical Assistance History (Proposed proposed rule’s scoring criteria appear number of microloans 30 to 90 days in § 4280.316(b)(3)) to disadvantage MDOs whose rural arrears or that have been written off at Comment: One commenter was markets have less diversity than others. year end.’’ There are several issues with concerned about the burden imposed by For example, the racial diversity in the this approach. First, it conflates the scoring criteria in proposed cities of Portland and Lewiston, Maine delinquent loans with loan losses, § 4280.316(b)(3)(i) through (iv). This is much higher than the rural areas of which are typically reported and commenter stated that the requirements Maine that the commenter also serves. assessed separately (in part because the to provide data on the total numbers Data on the diversity of the commenter’s commonly accepted definitions of these and percentages of rural entire service area does not accurately measures require different denominators microentrepreneurs—including for reflect the diversity of its rural areas. when calculating a percentage value). minority, socially-disadvantaged, or Response: The Agency disagrees that Second, the measures required in the disabled microentrepreneurs, and those the scoring criteria provide for rural Proposed Rule involve the number of in areas of outmigration—that received markets with less diversity than others. late or written off loans, not the dollar both microloans and technical The statute requires that training and value of those loans. In assessing the assistance services for each of the technical assistance be provided via level of risk in a portfolio, it is the value previous three fiscal years are unduly organizations of varying sizes and that of loans at risk rather than the number burdensome. These requirements serve racially and ethnically diverse that is most significant—as a delinquent suggest that one of the primary populations. Therefore, these data are or bad loan of $40,000 will necessarily measures of success for an MDO is the requested to ensure that the Agency pose more risk to a portfolio than a number of the microenterprises it serves meets this intent. delinquent or bad loan of $4,000. that receives both technical assistance

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and loans. The commenter believes that would be penalized by the criteria for Another commenter recommended this assumption could be detrimental to not providing loans to most of their either including a definition for the very microentrepreneurs that MDOs trainees, because most trainees do not ‘‘socially disadvantaged’’ under are serving. need loans or in other cases, use the § 4280.302 that includes women and The commenter’s technical assistance training to develop skills to gain access other disadvantaged groups, or programs are functionally independent to commercial credit. expanding § 4280.316(b)(1)(v) to include of their lending programs so that the According to the commenters, this an explanation of the term ‘‘socially commenter can maintain the ‘‘backward looking’’ scoring system fails disadvantaged.’’ Ultimately, the confidentiality of clients and because to recognize the law’s emphasis on commenter believes that female each program provides distinct services MDOs having an ‘‘effective plan to microentrepreneurs should be that meet the needs of their clients. In develop a program to deliver services to considered ‘‘socially disadvantaged’’ for practice, many TA clients pursue loan rural microentrepreneurs.’’ By failing to the purposes of any provision under the funding from the commenter; however, recognize this portion of the law, these proposed rule. microentrepreneurs seek technical sections will result in curtailing Response: As noted in response to a assistance from the commenter for a microenterprise development services comment on the definition of ‘‘socially variety of reasons, and many may not in unserved and underserved rural areas disadvantaged,’’ the Agency agrees with ultimately apply for a loan. Both by new rural MDOs, by rural MDOs the commenters that, as proposed, the services are critical to the success of which seek to expand their services, and rule did not adequately address whether rural microentrepreneurs. As a result of by MDOs which may seek to expand gender was included in ‘‘socially this programmatic structure, technical their services into rural areas. The disadvantaged.’’ The Agency, however, assistance and lending data are tracked commenters recommended that the final has determined that it is unnecessary to in separate databases. rule develop a mechanism to recognize include socially disadvantaged in the The commenter, therefore, the eligibility of each of those types of scoring criteria cited by the commenters recommended that the requirements of MDOs by conforming to the law’s and has removed that term from the proposed § 4280.316(b)(3)(i) through (iv) prescription of allowing MDOs to rule. The Agency made this be minimized because of the develop an ‘‘effective plan’’ to deliver determination in consideration of Civil burdensome nature of collecting these services to rural microentrepreneurs. Rights reporting, which is based on data, at least in the currently proposed Response: The Agency disagrees that demographic data and ‘‘socially combinations. ’’ Response: The Agency disagrees that there is a bias toward entities that disadvantaged is not one of those data. the collection and maintenance of the deliver microlending programs over Administrative Expenses (Proposed proposed data is unduly burdensome entities that provide only technical § 4280.316(b)(5)) and considers it to be an appropriate assistance. However, to ensure like part of a soundly managed program. recognition of each applicant type, each Comment: A number of commenters However, the criterion regarding data set of scoring criterion allows for a recommended removing this scoring types were of concern to a number of maximum of 100 points so that each criterion, all expressing similar reasons type of applicant is able to equitably including: commenters and have been revised in • this document to clarify, and ease compete against each other. In balance, The Proposed Rule arbitrarily confusion, regarding what data to the Agency has revised the rule to provides points on an application collect. The suggested data chart and address all types of MDOs and provide according to how much below 10 scoring criteria have been revised as a for funds to MDOs that wish to percent an MDO proposes using for part of the overall clarification of data participate through loans and/or grants. administrative expenses, providing 0 and other application requirements. The The changes are included in the rule, points for 8 to 10 percent of the TA revised requirements are located in thus, address the concerns expressed by grant used for administrative expenses. § 4280.316. these commenters. An MDO could be penalized for doing precisely what the law allows. This Technical Assistance to Rural Socially-Disadvantaged (Proposed section of the rule also has the potential Microentrepreneurs (Proposed § 4280.316(b)(3)(iii)) to penalize non-profits (a focused § 4280.316(b)(3)(i) and (ii)) Comment: Several commenters were eligible organization throughout the Comment: Two commenters were concerned about the reference to proposed rule) that may have no other concerned that the scoring criteria in ‘‘socially disadvantaged’’ in proposed access to funds for administrative proposed § 4280.316(b)(1)(i) and (ii) § 4280.316(b)(3)(iii), stating that expenses. demonstrate the bias expressed in the ‘‘socially disadvantaged’’ was not • This is a punitive measure for rural proposed rule toward MDOs that engage defined or not defined well enough. For MDOs who have few resources for only in lending and against MDOs that example, one commenter noted that it is administration and operations. provide both lending and technical not stated whether ‘‘socially Corporate and foundation grants that assistance or training technical disadvantaged’’ includes gender contribute to administrative operations assistance only. According to the (presumably female are largely unavailable to support commenters, this proposed scoring microentrepreneurs). According to the nonprofit, community based MDOs in section will significantly penalize commenter, this appears inconsistent rural areas. This criterion would put MDOs that provide both technical from proposed § 4280.316(b)(v), where such agencies at disadvantage, despite assistance and lending and will gender is a specifically mentioned their track record of producing positive virtually exclude programs that in the demographic group. The commenter, economic outcomes. past provided TA services only or even therefore, suggested that these • It is punitive measure for rural training to nonborrowers. Full service provisions be made consistent and that MDOs who have few resources for MDOs typically train far more the final rule clarify that female administration and operations. Small, microentrepreneurs than the number microentrepreneurs are specifically nonprofit community-based MDOs have that receive loans, because the demand included in any definition of ‘‘socially few sources of discretionary funds for is greatest for training. Such MDOs disadvantaged.’’ overhead. These criteria would put such

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agencies at disadvantage to larger organization between 1 and 3 years old, how to score each of these criteria. institutions. certainly information on the Finally, for those criteria that require a • Depending on the definition of organization’s loan volume, diversity, standard set of points per item, a administration expenses, it could be history of TA provision, and portfolio specific number of points will be that this provision would penalize management and quality is relevant, and awarded for a specific set of organizations that are seeking to build in fact, essential to the application and benchmarks. Thus, the scoring system the organizational capacity to expand scoring process. According to the provides for a combination of objective their lending and training activities in commenters, if such data are not and more subjective scoring. accordance with and support of the submitted and evaluated, the Agency Enhancement Grants (Proposed intent of this program. runs the risk of selecting organizations § 4280.316(d)) • The law states in section for funding that may have developed 379E(b)(4)(C) that not more than 10 strong plans, but failed to execute them Comment: Two commenters pointed percent of a grant received by an MDO well during their initial years of out the statutory provisions related to can be used to pay administrative operation. significant outward migration were not expenses. The proposed rule proposes a The commenters, therefore, proposed for scoring enhancement tiered scoring system that favors MDOs recommended that all applicants with grants, as required in section who use fewer grant funds for more than one year of operations as an 379E(b)(4)(A)(ii) of the statute, which administrative expenses. The MDO be required to submit information states that an emphasis will be placed commenter understands the Agency’s on their loan volume, diversity, history on MDOs that are located in areas that desire to maximize the use of RMAP of TA provision and portfolio quality, have suffered ‘‘significant outward funds for the benefit of rural and that this information be evaluated migration.’’ The commenters noted that microentrepreneurs; however, the in the scoring process. in the proposed rule scoring description commenter believes the proposed Response: The Agency disagrees. The nothing is said about MDOs located in scoring system will disproportionately Agency chose to examine new entities such areas, only the ‘‘number of counties favor MDOs with the ability to fund as those entities with 3 years of or other jurisdictions of the service area’’ administrative expenses with other experience or less and based on their that suffer from significant outmigration funding streams so that they can benefit ability to meet certain criteria designed (as defined). The scoring matrix in the from these criteria. Administrative for this specific group of applicants. It proposed rule allows only up to 10 funds are critical to the success of any was determined that such new entities, points (of the 45 basic points for all microenterprise program and 10 percent including those with 3 years of applicants) for service to outmigration is a very reasonable, even modest, experience or less, will have little or areas, an issue of emphasis in the law. amount to budget for these purposes. unreliable data by which to compare or The commenters suggested that the final The commenter recommended that the score historical activity and borrower rule place an emphasis on MDOs Agency align the proposed rule with the success. Rather, the Agency anticipated located in areas of ‘‘significant outward law and remove the tiered system looking more prospectively for this migration’’ as stated in the law, and that proposed in the rule. group. greater emphasis through the point • system be placed on MDO service to an Scrimping on administration is not Scoring Range (Proposed outmigration area for those MDOs a good way to run an effective program. § 4280.316(c)(3) and (c)(4)) MDOs should not receive points for seeking grants. The commenters believe reporting administrative costs that are Comment: One commenter suggested it is important to focus on location of either artificial or so low that the that the scoring of the criteria in MDOs because it is crucial to provide organization will be badly run. The proposed § 4280.316(c)(3) and (c)(4) not incentives and funding to create more statute provides for up to 10 percent for be based on a range, but instead be a MDOs in rural areas suffering from administrative costs. scoring scheme in which the applicant significant outmigration and because, if Four commenters suggested replacing receives a certain amount of points or MDOs are located in such areas, they this criterion with a statement on not depending on whether they have will be more attuned to the services administrative expenses that conforms provided the appropriate necessary for the entrepreneurs in that to the law. One commenter also noted documentation. The commenter area. that these comments apply equally to believes that allowing for ranges is not Response: The Agency agrees that the proposed § 4280.316(c)(8). objective and raises issues with proposed rule did not appropriately Response: It is not the Agency’s intent subjectivity. The commenter believes address outmigration as a scoring to force entities into scrimping. Rather, that providing for specific points to be criterion for enhancement grants, as the intent is to score in favor of an awarded will be simpler than using required by the statute. While the applicant’s ability to provide services in ranges. Agency appreciates the commenter’s a cost effective and efficient manner. Response: As noted in a response to suggestion, opinions differ widely on another comment concerning the how best to approach and enhancement MDOs With 3 Years or Less Experience provision of a range for scoring, the grant category to this program. (Proposed § 4280.316(c)) Agency believes that ranges are Therefore, the Agency is requesting Comment: Two commenters were appropriately identified for these comments on this subject (see Section V concerned that the scoring system did scoring criteria identified by the of this preamble). Comments will be not request any historic information on commenter. For this and the other considered prior to publication of the the organization’s microenterprise criteria in which scoring ranges are final rule. activities beyond the date on which it provided, it will be up to the applicant opened its doors for business as an as to how much material to provide in MDOs With More Than 5 Years MDO or similar entity. While it is addressing each criterion and the Experience Under This Program understandable that the proposed rule quality of that material. To help ensure (Proposed § 4280.316(e)) would not request or substantially consistency in scoring these criteria Comment: One commenter weigh historic data for an organization among Agency staff, the Agency will be recommended revising the application that is less than a year old, for an providing guidelines to Agency staff on requirements in proposed § 4280.316(e)

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to ensure that applicants are they see fit for the sustainability of their Credit Elsewhere (Proposed representative of their communities, fund and based on the risk and the cost § 4280.322(d)) working in partnership with other local of its operation. Comment: One commenter suggested and regional development entities and One of the commenters recommended that the last two sentences of proposed are linked to a broader local or regional that § 4280.322(b)(3) be revised to limit § 4280.322(d) be removed. economic development planning effort. the microloan term to no longer than the Response: The Agency disagrees with If the applicant does not currently term of the loan with the Agency rather the suggestion to delete the last two possess these additional criteria, then than the proposed limit of no more than sentences of this paragraph. The Agency they should still be encouraged to 10 years. A third commenter also stated specifically does not want to require develop a plan to enhance these that the MDO should have the expressed denial letters from other lenders to be connections in their application and be permission to establish terms of part of this documentation because the scored favorably for developing these repayment (fees, late fees and penalties, Agency does not want such denial plans. Response: The Agency disagrees that amortizations and deferrals, etc.) as they letters to negatively affect the applicants should be required to work deem appropriate and workable. microborrower’s credit report as it in partnership with other entities. The One of the commenters noted that works to build credit. goal of the program is to enhance the proposed § 4280.322(d) includes a Comment: One commenter suggested network of MDOs and increase services statement that borrowers will be subject that the rule should allow the in that sector. While we do not to a ‘‘credit elsewhere’’ test, but microborrower to determine what goes discourage partnerships and indicates that bank rejection letters will in his file to document credit elsewhere. participation in regional planning, the not be required. The commenter was Response: The Agency disagrees with Agency will not require partnering. unclear as to the purpose of this the commenter’s suggestion to allow the microborrower to determine what goes Selection of Applications for Funding requirement and how an MDO should meet it. The commenter, therefore, into the file to document credit (§ 4280.317) elsewhere. The microlender determines recommended that this requirement be whether or not this test is met and as Comment: In reference to proposed dropped. § 4280.317(d), one commenter suggested such it is the microlender’s removing the wording ‘‘If your Response: The Agency agrees with the responsibility to clearly identify what it application is unsuccessful’’ and change commenters that microlenders know needs to make this determination. the end of this sentence to read ‘‘non- their market and should be able to Furthermore, this will provide selected applications.’’ design programs to meet those markets. consistency in the microlender’s Response: As noted earlier in this Section 4280.322(b) recognizes this in determination across microborrowers. preamble, this proposed paragraph was allowing the terms and conditions for The Agency reserves the right to removed from the rule because it is microloans to be negotiated by the examine microlender files to ensure that considered internal procedures and microborrower and the microlender. program requirements are met does not need to be in the rule. The Agency agrees that the rule does not (§ 4280.311(h)(6)). need to implement a maximum margin Loans From Microlenders to that a lender can charge the Eligible Purposes (Proposed Microentrepreneurs and microborrower, but is still concerned § 4280.322(f)) Microenterprises (§ 4280.322) that the rate must be ‘‘reasonable.’’ The Comment: One commenter suggested Comment: Three commenters Agency has removed the specified that the list of authorized microloan expressed concern with the margin requirement and in its place purposes be prefaced with a statement requirements specified in proposed added the provision (see that the MDO is ‘‘not limited to’’ these § 4280.322(b)(1), (b)(3), and (d), noting § 4280.322(b)(3)) that the microlender uses. that these requirements are not in the may establish its margin of earnings, but Response: While the use of authorizing statute. According to one of may not adjust the margin so as to ‘‘including’’ means that the list is not the commenters, these loan terms may violate Fair Credit Lending laws. exhaustive, the Agency has included the have merit, but could also constrain the Further, margins must be reasonable so text suggested by the commenter to ability of MDOs to provide credit to as to ensure that microloans are ensure clarity. microentrepreneurs in rural areas. The affordable to the microborrowers. Comment: One commenter stated that other commenter stated that, taken as a With regard to the suggestion the prohibition at proposed whole, these requirements limit the concerning adjusting the term of loan § 4280.322(f) on any construction or ability of local organizations to craft a from ‘‘no more than 10 years’’ to ‘‘no demolition was too inflexible; the lending program that can address the longer than the term of the loan with the remodeling of a suitable business space specific needs of its local market. One often requires this. Agency,’’ the Agency has not revised the of the commenters, therefore, Response: The Agency included rule because such a revision would put recommended that these requirements construction and demolition as an the microlender and the agency at be removed. ineligible loan purpose in order to increased risk in the latter years of the One of the commenters noted that the expedite loan processing by mitigating term and would diminish the capacity MDO is responsible for operating a the need to conduct environmental of the microlender to revolve its funds successful microloan program in the evaluations. The Agency notes that into and out of the RMRF. context of the communities they serve other Rural Development programs can and, therefore, it is not appropriate for Finally, with regard to the credit provide construction financing. Thus, RMAP at proposed § 4280.322(b)(1) to elsewhere test, the Agency is including the Agency has not revised the rule as place a cap (i.e., the 7.5 percent spread) this provision to ensure that only those suggested by the commenter. on the interest rate charged to the in the most need of program resources microborrower. According to the receive assistance under this program. Ineligible Loan Purposes (§ 4280.323) commenter, the MDO should have the Thus, the Agency has not revised this Comment: One commenter asked if flexibility to price their microloans as provision. lines of credit would be an eligible or

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ineligible purpose. The commenter included. The commenter also raised List of Subjects in 7 CFR 4280 pointed out that lines of credit are not questions concerning how the definition Business programs, Grant programs, listed under either eligible purposes or would be crafted. For example, how Loan programs, Microenterprise ineligible purposes and recommended would domestic partners and same-sex development organization, that the rule needs to be clear whether married parties be treated? The Microentrepreneur, Rural areas, Rural lines of credit are eligible or not commenter then asked, how would this development, Small business. because, in part, the IRP allows lines of be monitored? How would an Agency ■ For the reasons set forth in the credit under certain circumstances. employee possibly know all Agency preamble, chapter XLII of title 7 of the Response: Lines of credit are not an employee family members? eligible loan purpose for microloans Code of Federal Regulations is amended under RMAP. The Agency agrees with Response: The Agency agrees with the as follows: ‘‘ the commenter that this was not commenter that a definition for family CHAPTER XLII—RURAL BUSINESS- indicated in the proposed rule and, member’’ is needed. The Agency has COOPERATIVE SERVICE AND RURAL therefore, has added a provision to replaced ‘‘family member’’ with ‘‘close UTILITIES SERVICE, DEPARTMENT OF § 4280.323 that specifically identifies relative.’’ Close relative is being defined AGRICULTURE lines of credit as an ineligible loan as: Individuals who are closely related by blood, marriage, or adoption, or live purpose for RMAP loans. ■ 1. Part 4280 is amended by adding a within the same household, such as a Comment: One commenter suggested subpart D to read as follows: that tenant improvements, debt spouse, domestic partner, parent, child, refinancing, and business acquisition brother, sister, aunt, uncle, grandparent, PART 4280—LOANS AND GRANTS should be expressly permitted. grandchild, niece, or nephew. Response: The Agency has Subpart D—Rural Microentrepreneur Comment: One commenter asked why Assistance Program determined that indication of eligible RMAP discriminated against military and ineligible activities is sufficient, but personnel and Tribal members under Sec. 4280.301 Purpose and scope. has added debt refinancing and business proposed § 4280.323(i) and (j). acquisition to the list of eligible 4280.302 Definitions and abbreviations. activities for clarity. Tenant Response: The Agency disagrees with 4280.303 Exception authority. the commenter’s characterization of the 4280.304 Review or appeal rights and improvements are already sufficiently administrative concerns. covered by § 4280.322(f)(2) and (f)(3). proposed rule as discriminating against active military personnel and Tribal 4280.305 Nondiscrimination and Any legal business purpose not compliance with other Federal laws. identified as ineligible in § 4280.323 is employees. Language specific to 4280.306 Forms, regulations, and acceptable. military personnel is included to ensure instructions. Comment: One commenter stated that specific attention to the needs of 4280.307 4280.309 [Reserved] the ineligible purposes at proposed veterans. Language regarding loans to 4280.310 Program requirements for MDOs. § 4280.323(c) should simply disallow Tribal employees has been eliminated to 4280.311 Loan provisions for Agency loans relending to Agency or MDO personnel. ensure that Tribal microlenders are to microlenders. Such lending simply has the appearance treated as all other microlenders in 4280.312 Loan approval and closing. of a conflict of interest and should never regards to conflicts of interest. 4280.313 Grant provisions. 4280.314 [Reserved] be allowed. On the other hand, there is V. Request for Comments 4280.315 MDO application and submission no conflict of interest in lending to information. military, National Guard members, or The Agency is interested in receiving 4280.316 Application scoring. government employees aside from Rural comments on all aspects of the interim 4280.317 Selection of applications for Development employees, and this rule. Areas in which the Agency is funding. should simply be permitted. seeking specific comments are 4280.318 4280.319 [Reserved] Response: Microloans to Agency identified below. All comments should 4280.320 Grant administration. personnel and MDO personnel are 4280.321 Grant and loan servicing. be submitted as indicated in the 4280.322 Loans from the microlenders to prohibited. Regarding military ADDRESSES section of this preamble. personnel, based on Agency experience, the microentrepreneurs. 1. Enhancement grants. The Agency is 4280.323 Ineligible microloan purposes and a pattern of difficulty in obtaining uses. financial assistance has begun to seeking comments regarding how to incorporate a network enhancement 4280.324 4280.399 [Reserved] emerge. The language proposed 4280.400 OMB control number. regarding this issue was initially grant program for microenterprise development organizations in their Authority: 7 U.S.C. 1989(a), 7 U.S.C. confusing as it was posted in the 2009s. ineligibility section as an exception. As support of rural microentrepreneurs in accordance with Section a result, the language has been moved Subpart D—Rural Microentrepreneur 379E(b)(4)(A)(i)(I) of the 2008 Farm Bill. to § 4280.322(g) as an eligible purpose. Assistance Program In clarifying the language, the Agency Please be sure to include your rationale hopes to encourage a greater level of for your suggestions. § 4280.301 Purpose and scope. lending to military personnel. Regarding 2. The Agency is seeking comment on (a) This subpart contains the Tribal government employees, language whether the 2-year deferral period provisions and procedures by which the regarding loans to Tribal employees has allowing microlenders not to make any Agency will administer the Rural been eliminated to ensure that Tribal payments on a loan to the Agency (see Microenterprise Assistance Program microlenders are treated as all other § 4280.311(e)(4)) under this program (RMAP). The purpose of the program is microlenders in regards to conflicts of should be automatic (i.e., the default) or to support the development and ongoing interest. whether the Agency should establish success of rural microentrepreneurs and Comment: In reference to proposed specific criteria for determining whether microenterprises. To accomplish this § 4280.323(d), one commenter or not payments would be deferred. purpose, the program will make direct recommended that a definition for Please be sure to include your rationale loans, and provide grants to selected ‘‘Agency employee family member’’ be for your suggestions. Microenterprise Development

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Organizations (MDOs). Selected MDOs facilities or services to rural maintain in an amount equal to not less will use the funds to: microentrepreneurs and than 5 percent of the total amount owed (1) Provide microloans to rural microenterprises starting or growing a by the microlender under this program microentrepreneurs and business. to the Agency to pay any shortage in the microenterprises; Close relative. Individuals who are RMRF caused by delinquencies or losses (2) Provide business based training closely related by blood, marriage, or on microloans. and technical assistance to rural adoption, or live within the same Microborrower. A microentrepreneur microborrowers and potential household: a spouse, domestic partner, or microenterprise that has received microborrowers; and parent, child, brother, sister, aunt, financial assistance from a microlender (3) Perform other such activities as uncle, grandparent, grandchild, niece, under this program in an amount of deemed appropriate by the Secretary to or nephew. $50,000 or less. ensure the development and ongoing Default. The condition that exists Microenterprise. Microenterprise success of rural microenterprises. when a borrower is not in compliance means: (b) The Agency will make direct loans with the promissory note, the loan and/ (i) A sole proprietorship located in a to microlenders, as defined in or grant agreement, or other related rural area; or § 4280.302, for the purpose of providing documents evidencing the loan. (ii) A business entity, located in a fixed interest rate microloans to rural Delinquency. Failure by an MDO to rural area, with not more than 10 full- microentrepreneurs for startup and make a scheduled loan payment by the time-equivalent employees. Rural growing microenterprises. Eligible due date or within any grace period as microenterprises are businesses microlenders will also be automatically stipulated in the promissory note and employing 10 people or fewer that are eligible to receive microlender technical loan agreement. in need of $50,000 or less in business Eligible project cost. The total cost of assistance grants to provide technical capital and/or in need of business based a microborrower’s project for which a assistance and training to technical assistance and training. Such microloan is being sought from a microentrepreneurs that have received businesses may include any type of microlender less any costs identified as or are seeking a microloan under this legal business that meets local standards ineligible in § 4280.323. program. of decency. Business types may also (c) To allow for extended Facilitation of access to capital. For purposes of this program, facilitation of include agricultural producers provided opportunities for technical assistance they meet the stipulations in this and training, the Agency will make access to capital means assisting a technical assistance client of the TA- definition. technical assistance-only grants to (iii) All microenterprises assisted MDOs that have sources of funding only grantee in obtaining a microloan whether or not the microloan is wholly under this regulation must be located in other than program funds for making or rural areas. facilitating microloans. or partially capitalized by funds provided under this program. Microenterprise development § 4280.302 Definitions and abbreviations. Federal Fiscal year (FY). The 12- organization (MDO). An organization (a) General definitions. The following month period beginning October 1 of that is a non-profit entity; an Indian definitions apply to the terms used in any given year and ending on tribe (the government of which tribe this subpart. September 30 of the following year. certifies that no MDO serves the tribe Administrative expenses. Those Full-time equivalent employee (FTE). and no RMAP exists under the expenses incurred by an MDO for the The Agency uses the Bureau of Labor jurisdiction of the Indian tribe); or a operation of services under this Statistics definition of full-time jobs as public institution of higher education; program. Not more than 10 percent of its standard definition. For purposes of and that, for the benefit of rural TA grant funding may be used for such this program, a full-time job is a job that microentrepreneurs and expenses. has at least 35 hours in a work week. As microenterprises: Agency. USDA Rural Development, such, one full-time job with at least 35 (i) Provides training and technical Rural Business-Cooperative Service or hours in a work week equals one FTE; assistance and/or; its successor organization. two part-time jobs with combined hours (ii) Makes microloans or facilitates Agency personnel. Individuals of at least 35 hours in a work week access to capital or another related employed by the Agency. equals one FTE, and three seasonal jobs service; and/or Applicant. The legal entity, also equals one FTE. If an FTE calculation (iii) Has a demonstrated record of referred to as a microenterprise results in a fraction, it should be delivering, or an effective plan to development organization or MDO, rounded up to the next whole number. develop a program to deliver, such submitting an application to participate Indian tribe. As defined in section 4 services. in the program. of the Indian Self-Determination and Microentrepreneur. An owner and Application. The forms and Education Assistance Act (25 U.S.C. operator, or prospective owner and documentation submitted by an MDO 450b), ‘‘any Indian tribe, band, nation, or operator, of a microenterprise who is for acceptance into the program. other organized group or community, unable to obtain sufficient training, Award. The written documentation, including any Alaska Native village, or technical assistance, or credit other than executed by the Agency after the regional or village corporation as under this section, as determined by the application is approved, containing the defined in or established pursuant to the Secretary. All microentrepreneurs terms and conditions for provision of Alaska Native Claims Settlement Act (85 assisted under this regulation must be financial assistance to the applicant. Stat. 688) [43 U.S.C. 1601 et seq.], which located in rural areas. Financial assistance may constitute a is recognized as eligible for the special Microlender. An MDO that has been loan or a grant or both. programs and services provided by the approved by the Agency for Business incubator. An organization United States to Indians because of their participation under this subpart to make that provides temporary premises at status as Indians.’’ microloans and provide an integrated below market rates, technical assistance, Loan loss reserve fund (LLRF). An program of training and technical advice, use of equipment, and may interest-bearing deposit account that assistance to its microborrowers and provide access to capital, or other each microlender must establish and prospective microborrowers.

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Microloan. A business loan of not functioning that will allow them to Act, the Equal Credit Opportunity Act, more than $50,000 with a fixed interest obtain, or have the ability to obtain, one the Civil Rights Act of 1964, Section 504 rate and a term not to exceed 10 years. or more business loans of $50,000 or of the Rehabilitation Act of 1973, the Military personnel. Individuals, less, whether or not from program Age Discrimination Act of 1975, and 7 regardless of rank or grade, currently in funds. CFR part 1901, subpart E. active United States military service Technical assistance grant. A grant, (b) The U.S. Department of with less than 6 months remaining in the funds of which are used to provide Agriculture (USDA) prohibits their active duty service requirement. technical assistance and training, as discrimination in all its programs and Nonprofit entity. A private entity defined in this section. activities on the basis of race, color, chartered as a nonprofit entity under (b) Abbreviations. The following national origin, age, disability, and State Law. abbreviations apply to the terms used in where applicable, sex, marital status, Program. The Rural this subpart: familial status, parental status, religion, Microentrepreneur Assistance Program FTE—Full-time employee sexual orientation, genetic information, (RMAP). LLRF—Loan loss reserve fund. political beliefs, reprisal, or because all Rural microloan revolving fund MDO—Microenterprise development or part of an individual’s income is (RMRF). An exclusive interest-bearing organization. derived from any public assistance account on which the Agency will hold RMAP—Rural microentrepreneur assistance program. (Not all prohibited bases apply a first lien and from which microloans program. to all programs.) Persons with will be made; into which payments from RMRF—Rural microloan revolving fund. TA—Technical assistance. disabilities who require alternative microborrowers and reimbursements means for communication of program from the LLRF will be deposited; and § 4280.303 Exception authority. information (Braille, large print, from which payments will be made by The Administrator may make limited audiotape, etc.) should contact USDA’s the microlender to the Agency. TARGET Center at (202) 720–2600 Rural or rural area. For the purposes exceptions to the requirements or (voice and TDD). Any applicant that of this program, the terms ‘‘rural’’ and provisions of this subpart. Such believes it has been discriminated ‘‘rural area’’ are synonymous and are exceptions must be in the best financial against as a result of applying for funds defined as any area of a State not in a interest of the Federal government and under this program should contact: city or town that has a population of may not conflict with applicable law. USDA, Director, Office of Adjudication, more than 50,000 inhabitants, according No exceptions may be made regarding 1400 Independence Avenue, S.W., to the latest applicable decennial census applicant eligibility, project eligibility, Washington, DC 20250–9410, or call for the State; and the contiguous and or the rural area definition. In addition, (866) 632–9992 (toll free) or (202) 401– adjacent urbanized area. exceptions may not be made: (i) For purposes of this definition, (a) To accept an applicant into the 0216 (TDD) for information and cities and towns are incorporated program that would not normally be instructions regarding the filing of a population centers with definite accepted under the eligibility or scoring Civil Rights complaint. USDA is an boundaries, local self-government, and criteria; or equal opportunity provider, employer, legal powers set forth in a charter (b) To fund an interested party that and lender. granted by the State. has not successfully competed for (c) A pre-award compliance review (ii) Notwithstanding any other funding in accordance with the will take place at the time of application provision of this paragraph, within the regulations. when the applicant completes Form RD 400–8, ‘‘Compliance Review’’. Post- areas of the County of Honolulu, § 4280.304 Review or appeal rights and Hawaii, and the Commonwealth of administrative concerns. award compliance reviews will take Puerto Rico, the Secretary may place once every three years after the (a) Review or appeal rights. An beginning of participation in the designate any part of the areas as a rural applicant MDO, a microlender, or area if the Secretary determines that the program and until such time as a grantee MDO may seek a review of an microlender leaves the program. part is not urban in character, other than adverse Agency decision under this any area included in the Honolulu subpart from the appropriate Agency § 4280.306 Forms, regulations, and census designated place (CDP) or the official that oversees the program in instructions. San Juan CDP. question, and/or appeal the Agency Copies of all forms, regulations, and State. Any of the 50 States of the decision to the National Appeals instructions referenced in this subpart United States, the Commonwealth of Division in accordance with 7 CFR part are available in any Agency office, the Puerto Rico, the District of Columbia, 11. Agency’s Web site at http:// the U.S. Virgin Islands, Guam, (b) Administrative concerns. Any www.rurdev.usda.gov/regs/, and for American Samoa, the Commonwealth of questions or concerns regarding the grants on the Internet at http:// the Northern Mariana Islands, the administration of the program, www.grants.gov. Republic of Palau, the Federated States including any action of the microlender, of Micronesia, and the Republic of the may be addressed to: USDA Rural §§ 4280.307–4280.309 [Reserved] Marshall Islands. Development, Rural Business- Technical assistance and training. § 4280.310 Program requirements for Cooperative Service, Specialty Programs MDOs. The provision of education, guidance, or Division or its successor agency, or the instruction to one or more rural local USDA Rural Development office. (a) Eligibility requirements for microentrepreneurs to prepare them for applicant MDOs. To be eligible for a self-employment; to improve the state of § 4280.305 Nondiscrimination and direct loan or grant award under this their existing rural microenterprises; to compliance with other Federal laws. subpart, an applicant must meet each of increase their capacity in a specific (a) Any entity receiving funds under the criteria set forth in paragraphs (a)(1) technical aspect of the subject business; this subpart must comply with other through (4) of this section, as applicable. and, to assist the rural applicable Federal laws, including the (1) Type of applicant. The applicant microentrepreneurs in achieving a Equal Employment Opportunities Act of must meet the definition of an MDO degree of business preparedness and/or 1972, the Americans with Disabilities under this program.

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(2) Citizenship. For non-profit entities (d) Delinquencies. No applicant will (1) Microborrower project level option. only, to be eligible to apply for status as be eligible to receive a loan if it is The loan covenants between the Agency an MDO, the applicant must be at least delinquent on a Federal debt. and the microlender and the 51 percent controlled by persons who (e) Application eligibility and microlender’s lending policies and are either: qualification. An application will be procedures shall limit the microlender’s (i) Citizens of the United States, the considered eligible for funding if it is loan to the microborrower to no more Republic of Palau, the Federated States submitted by an eligible MDO. The than 75 percent of the eligible project of Micronesia, the Republic of the applicant will qualify for funding based cost of the microborrower’s project and Marshall Islands, American Samoa, or on the results of review, scoring, and require that the microborrower obtain the Commonwealth of Puerto Rico; or other procedures as indicated in this the remaining 25 percent of the eligible (ii) Legally admitted permanent subpart, and will further: project cost from non-Federal sources. residents residing in the U.S. (1) Establish an RMRF, or add capital The non-Federal share of the eligible (3) Legal authority and responsibility. to an RMRF originally capitalized under project cost of the microborrower’s The applicant must have the legal this program and establish or continue project may be provided in cash authority necessary to carry out the a training and TA program for its (including through fees, grants purpose of the award. microborrowers and prospective (including community development microborrowers; or block grants), and gifts) or in the form (4) Other eligibility requirements. For (2) Fund a TA-only grant program to potential microlenders only, of in-kind contributions. provide services to rural (2) RMRF level option. The (i) The applicant must also provide microentrepreneurs and evidence that it: microlender shall capitalize the RMRF microenterprises. at no more than 75 percent Agency loan (A) Has demonstrated experience in (f) Business incubators. Because the funds and not less than 25 percent non- the management of a revolving loan purpose of a business incubator is to Federal funds, thereby allowing the fund; or provide business-based technical microlender to finance 100 percent of (B) Certifies that it, or its employees, assistance and an environment in which the microborrower’s eligible project have received education and training micro-level, very small, and small costs. All contributed funds shall be from a qualified microenterprise businesses may thrive, a microlender maintained in the RMRF. development training entity so that the that meets all other eligibility (e) Loan terms and conditions for applicant has the capacity to manage requirements and owns and operates a microlenders. Loans will be made to such a revolving loan fund; or small business incubator will be microlenders under the following terms (C) Is actively and successfully considered eligible to apply. In and conditions: participating as an intermediary lender addition, a business incubator selected (1) Funds received from the Agency in good standing under the U.S. Small to participate as a microlender may use and any non-Federal share will be Business Administration (SBA) RMAP funding to lend to an eligible deposited into an interest-bearing Microloan Program or other similar loan microenterprise tenant, without creating account that will be the RMRF account. programs as determined by the a conflict of interest under (2) The RMRF account, including any Administrator. § 4280.323(c). interest earned on the account and the (ii) An attorney’s opinion regarding § 4280.311 Loan provisions for Agency microloans made from the account, will the potential microlender’s legal status loans to microlenders. be used to make fixed-rate microloans, and its ability to enter into program to accept repayments from transactions is required at the time of (a) Purpose of the loan. Loans will be made to eligible and qualified microborrowers and reimbursements initial entry into the program. from the LLRF, to repay the Agency and, Subsequent to acceptance into the microlenders to capitalize RMRFs that it will administer by making and servicing with the advance written approval of program, an attorney’s opinion will not the Agency, to supplement the LLRF be required unless the Agency microloans in one or more rural areas. (b) Eligible activities. Microlenders with interest earnings (from payments determines significant changes to the may make microloans for qualified received or from account earnings) from microlender have occurred. business activities and use Agency loan the RMRF. (b) Minimum score. Once deemed funds only as provided in § 4280.322. (3) The term of a loan made to a eligible, an entity will be evaluated (c) Ineligible activities. Microlenders microlender will not exceed 20 years. If based on the scoring criteria in may not use RMRF funds for requested by the applicant MDO, a § 4280.316 for adequate qualification to administrative costs or expenses and shorter term may be agreed upon by the participate in the program. Eligible may not make microloans under this microlender and the Agency. MDOs must score a minimum of seventy program for ineligible purposes as (4) Each loan made to a microlender points (70 points) in order to be specified in § 4280.323. will automatically receive a 2-year considered to receive an award under (d) Cost share. The Federal share of deferral during which time no this subpart. the eligible project cost of a repayment to the Agency will be (c) Ineligible applicants. An applicant microborrower’s project funded under required. Voluntary payments will be will be considered ineligible if it: this section shall not exceed 75 percent. accepted. (1) Does not meet the definition of an The cost share requirement shall be met (i) Interest will accrue during the MDO as provided in § 4280.302; by the microlender using either of the deferral period only on funds disbursed (2) Is debarred, suspended or options identified in paragraphs (d)(1) by the Agency. otherwise excluded from, or ineligible and (2) of this section in establishing an (ii) The deferral period will begin on for, participation in Federal assistance RMRF. A microlender may establish the day the Agency loan to the programs; and multiple RMRFs utilizing either option. microlender is closed. (3) Has an outstanding judgment Whichever option is selected for an (iii) Loan repayments will be made in against it, obtained by the United States RMRF, it must apply to the entire RMRF equal monthly installments to the in a Federal Court (other than U.S. Tax and all microloans made with funds Agency beginning on the last day of the Court). from that RMRF. 24th month of the life of the loan.

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(5) Partial or full repayment of debt to that, during the 24th month of the initial Agency against losses that may occur as the Agency under this program may be deferral period, the microlender’s debt the result of the failure of one or more made at any time, including during the to the Agency will be calculated and microborrowers to repay their loans on deferral period, without any pre- amortized over the remaining life of the a timely basis. payment penalties being assessed. loan. The first payment will be due to (2) Capitalization and maintenance. (6) The microlender is responsible for the Agency on the last day of the 24th The LLRF is subject to each of the full repayment of its loan to the Agency month of the life of the loan. following conditions: regardless of the performance of its (14) Funds not disbursed to the (i) The microlender must maintain the microloan portfolio. microlender by the end of the 36th LLRF at a minimum of 5 percent of the (7) The Agency may call the entire month of the loan from the Agency will total amount owed by the microlender loan due and payable prior to the end be de-obligated. under this program to the Agency. If the of the full term, due to any non- (15) The Agency will hold first lien LLRF falls below the required amount, performance, delinquency, or default on position on the RMRF account, the the microlender will have 30 days to the loan. LLRF, and all notes receivable from replenish the LLRF. The Agency will (8) Loan closing between the microloans. hold a security interest in the account microlender and the Agency must take (16) If a microlender makes a and all funds therein until the MDO has place within 90 days of loan approval or withdrawal from the RMRF for any repaid its debt to the Agency under this funds will be forfeited and the loan will purpose other than to make a microloan, program. be deobligated. repay the Agency, or, with advance (ii) No Agency loan funds may be (9) Microlenders will be eligible to written approval, transfer an used to capitalize the LLRF. receive a disbursement of up to 25 appropriate amount of non-Federal (iii) The LLRF must be held in an percent of the total loan amount at the funds to the LLRF, the Agency may interest-bearing, Federally-insured time of loan closing. Interest will accrue restrict further access to withdrawals deposit account separate and distinct on all funds disbursed to the from the account by the microlender. from any other fund owned by the microlender beginning on the date of (17) In the event a microlender fails microlender. disbursement. to meet its obligations to the Agency, (iv) The LLRF must remain open, (10) A microlender must make one or the Agency may pursue any appropriately capitalized, and active more microloans within 60 days of any combination of the following: until such time as: disbursement it receives from the (i) Take possession of the RMRF and/ (A) All obligations owed to the Agency. Failure to make a microloan or any microloans outstanding, and/or Agency by the microlender under this within this time period may result in the LLRF; program are paid in full; or the microlender not receiving any (ii) Call the loan due and payable in (B) The LLRF is used to assist with additional funds from the Agency and full; and/or full repayment or prepayment of the may result in the Agency demanding (iii) Enter into a workout agreement microlender’s program debt. return of any funds already disbursed to acceptable to the Agency, which may or (v) Earnings on the LLRF account the microlender. may not include transfer or sale of the must remain a part of the account (11) Microlenders may request in portfolio to another microlender except as stipulated in § 4280.311(e)(2). writing, and receive additional (whether or not funded under this (3) Use of LLRF. The LLRF must be disbursements not more than quarterly, program) deemed acceptable to the used only to: until the full amount of the loan to the Agency. (i) Recapitalize the RMRF in the event microlender is disbursed, or until the (f) Loan funding limitations. of the loss and write-off of a microloan; end of the 36th month of the loan, (1) Minimum and maximum loan that is, when a loss has been paid to the whichever occurs first. Letters of request amounts. The minimum loan amount a RMRF, from the LLRF, the microlender for disbursement must be accompanied microlender may borrow under this must, within 30 days, replenish the by a description of the microlender’s program will be $50,000. The maximum LLRF, with non-federal funds, to the anticipated need. Such description will any microlender may borrow on a single required level; indicate the amount and number of loan under this program, or in any given (ii) Accept non-Federal deposits as microloans anticipated to be made with Federal fiscal year, will be $500,000. In required for maintenance of the fund at the funding. no case will the aggregate outstanding a level equal to 5 percent or more of the (12) Each loan made to a microlender balance owed to the program by any amount owed to the Agency by the during its first five years of participation single microlender exceed $2,500,000. microlender under this program; in this program will bear an interest rate (2) Use of funds. Loans must be used (iii) Accrue interest (interest earnings of 2 percent. After the fifth year of an only to establish or recapitalize an accrued by the LLRF will become part MDO’s continuous and satisfactory existing Agency funded RMRF out of of the LLRF and may be used only for participation in this program, each new which microloans will be made, into eligible purposes); and loan made to the microlender will bear which microloan payments will be (iv) Prepay or repay the Agency an interest rate of 1 percent. Satisfactory deposited, and from which repayments program loan. participation requires a default rate of 5 to the Agency will be made. In some (4) LLRF funded at time of closing. percent or less and a pattern of instances, as described in The LLRF account must be established delinquencies of 10 percent or less. § 4280.311(e)(2), interest earned by by the microlender prior to the closing Except in the case of liquidation or early these funds may be used to fund and of the loan from the Agency. At the time repayment, loans to microlenders must recapitalize both RMRF and the LLRF. of initial loan closing, sources of fully amortize over the life of the loan. (g) Loan loss reserve fund (LLRF). funding for the LLRF must be identified (13) During the initial deferral period, Each microlender that receives one or by the microlender so that as microloans each loan to a microlender will accrue more loans under this program will be are made, the amount in the LLRF can interest at a rate of 1 or 2 percent based required to establish an interest-bearing be built over time to an amount greater on the ultimate interest rate on the loan. LLRF. than or equal to 5 percent of the amount Interest accrued during the 2-year (1) Purpose. The purpose of the LLRF owed to the Agency by the microlender deferral period will be capitalized so is to protect the microlender and the under this program. After the first

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disbursement is made to a microlender, the Agency has established a higher Obligation of Funds,’’ is signed by the further disbursements will only be made LLRF reserve requirement for a specific Agency. Form RD 1940–1 authorizes if the LLRF is funded at the appropriate microlender. funds to be obligated and may be amount. After the initial loan is made to (3) Combining accounts and reports. If executed by the Agency provided the a microlender, subsequent loan closings a microlender has more than one loan microlender has the legal authority to will require the LLRF to be funded in from the Agency, a separate report must contract for a loan, and to enter into an amount equal to 5 percent of the be made for each except when RMRF required agreements, including an anticipated initial drawdown of funds accounts have been combined. A Agency-approved loan agreement, and for the RMRF. Federal funds, except microlender may combine RMRF meets all program loan requirements where specifically permitted by other accounts only when: and has signed Form RD 1940–1. laws, may not be used to fund LLRF. (i) The underlying loans have the (b) Letter of conditions. Upon (5) Additional LLRF funding. In the same rates, terms and conditions; reviewing the conditions and event of exhibited weaknesses, such as (ii) The combined report allows the requirements in the letter of conditions, losses that are greater than 5 percent of Agency to effectively administer the the applicant must complete, sign, and the microloan portfolio, on the part of program, including providing the same return Form RD 1942–46, ‘‘Letter of a microlender, the Agency may require level of transparency and information Intent to Meet Conditions,’’ to the additional funding be put into the LLRF; for each loan as if separate RMRF Agency; or if certain conditions cannot however, the Agency may never require reports had been prepared; and be met, the applicant may propose an LLRF of more than 10 percent of the (iii) The accompanying LLRF fund alternate conditions. The Agency will total amount owed by the microlender. reports also provide the same level of review any requests for changes to the (h) Recordkeeping, reporting, and transparency and information for each letter of conditions. The Agency may oversight. Microlenders must maintain loan as if separate LLRF reports had approve only minor changes that do not all records applicable to the program been prepared. materially affect the microlender. and make them available to the Agency (iv) The Agency must approve the Changes in legal entities prior to loan upon request. Microlenders must submit combining of accounts and reports in closing will not be approved. quarterly reports as specified in writing before such accounts are (c) Loan closing. paragraphs (h)(1) through (4) of this combined and reports are submitted. (1) Prior to loan closing, microlenders section. Portfolio reporting requirements (4) Delinquency. In the event that a must provide evidence that the RMRF must be met via the electronic reporting microlender has delinquent loans in its and LLRF bank accounts have been set system. Other reports, such as narrative RMAP portfolio, quarterly reports will up and the LLRF has been, or will be, information, may be submitted as hard include narrative explanation of the funded as described in § 4280.311(g)(4). copy in the event the microlender, steps being taken to cure the Such evidence shall consist of: grantee, or Agency do not have the delinquencies. (i) A pre-authorized debit form capability to submit or accept same (5) Other reports. Other reports may allowing the Agency to withdraw electronically. be required by the Agency from time to payments from the RMRF account, and (1) Periodic reports. On a quarterly time in the event of poor performance, in the event of a repayment workout, basis, within 30 days of the end of the one or more work out agreements or from the LLRF account; calendar quarter, each microlender that other such occurrences that require (ii) An Agency-approved automatic has an outstanding loan under this more than the usual set of reporting deposit authorization form from the section must provide to the Agency: information. depository institution providing the (i) Quarterly reports, using an Agency- (6) Site visits. The Agency may, at any Agency with the RMRF account number approved form, containing such time, choose to visit the microlender into which funds may be deposited at information as the Agency may require, and inspect its files to ensure that time of disbursement to the and in accordance with OMB circulars program requirements are being met. microlender; and guidance, to ensure that funds (7) Access to microlender’s records. (iii) A statement from the depository provided are being used for the Upon request by the Agency, the institution as to the amount of cash in purposes for which the loan to the microlender will permit representatives the LLRF account; microlender was made. At a minimum, of the Agency (or other agencies of the (iv) An Agency-approved promissory these reports must identify each U.S. Department of Agriculture note must be executed at loan closing; microborrower under this program and authorized by that Department or the and should include a discussion reconciling U.S. Government) to inspect and make (v) An appropriate security agreement the microlender’s actual results for the copies of any records pertaining to on the LLRF and RMRF accounts. period against its goals, milestones, and operation and administration of this (2) At loan closing, the microlender objectives as provided in the application program. Such inspection and copying must certify that: package; may be made during regular office hours (i) All requirements of the letter of (ii) SF–PPR, ‘‘Performance Progress of the microlender or at any other time conditions have been met and Report’’ cover sheet, performance agreed upon between the microlender (ii) There has been no material measures (SF–PPR–A), and activity and the Agency. adverse change in the microlender or its based expenditures (SF–PPR–E); and (8) Changes in key personnel. Before financial condition since the issuance of (iii) SF–270, ‘‘Request for Advance or any additions are made to key the letter of conditions. If one or more Reimbursement’’. personnel, the microlender must notify adverse changes have occurred, the (2) Minimum retention. Microlenders and the Agency must approve such microlender must explain the changes must provide evidence in their quarterly changes. and the Agency must determine that the reports that the sum of the unexpended microlender remains eligible and amount in the RMRF, plus the amount § 4280.312 Loan approval and closing. qualified to participate as an MDO. in the LLRF, plus debt owed by the (a) Loan approval and obligating (3) The microlender will provide microborrowers is equal to a minimum funds. The loan will be considered sufficient evidence, which may include of 105 percent of the amount owed by approved on the date the signed copy of but is not limited to, mechanics’ lien the microlender to the Agency unless Form RD 1940–1, ‘‘Request for waivers or in their absence receipts of

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payment, that no lawsuits are pending and in-kind goods and services may not microlender’s administrative expenses, or threatened that would adversely be used for: except as may be reduced as provided affect the security of the microlender (i) Grant application preparation under § 4280.313(a)(4). The following when Agency security instruments are costs; limitations will apply to TA grant filed. (ii) Costs incurred prior to the funding: obligation date of the grant; (i) Administrative expenses should be § 4280.313 Grant provisions. (iii) Capital improvements; kept to a minimum. As such, the (a) General. The following provisions (iv) Political or lobbying activities; applicant MDO is required, in the apply to each type of grant offered (v) Assistance to any ineligible entity; application materials, to provide an under this program unless otherwise (vi) Payment of any judgment or debt administrative budget plan indicating specified annually in a Federal Register owed; and the amount of funding it will need for notice. Competition for these funds will (vii) Payment of any costs other than administrative purposes. Applicants occur as a part of the application and those allowed in paragraphs (b)(1) and will be scored accordingly, with those qualification process of becoming a (c) of this section. using less than 10 percent of the (5) Changes in key personnel. Before microlender. Failure to meet scoring funding for administrative purposes any additions are made to key benchmarks will preclude an applicant being scored higher than those using 10 personnel, the microlender must notify from receiving loan and/or grant dollars. percent of the funding for and the Agency must approve such Once an MDO is participating as a administrative purposes. microlender, grant funds will be made changes. (ii) While operating the program, the (b) Grants to assist available automatically based on selected microlender will be expected to microentrepreneurs (Microlender lending and the availability of funds. adhere to the estimates it provides in Technical Assistance (TA) Grants). The (1) Grant amounts. the application. If for any reason, the capacity of a microlender to provide an microlender cannot meet the (i) The maximum TA grant amount for integrated program of microlending and expectations of the application, it must a microlender is 25 percent of the first technical assistance will be evaluated contact the Agency in writing to request $400,000 of outstanding microloans during the scoring process. An eligible owed to the microlender under this a budget adjustment. MDO selected to be a microlender will (iii) At no time will it be appropriate program, plus an additional 5 percent of be eligible to receive a microlending TA the outstanding loan amount owed by for the microlender to expend more than grant if it receives funding to provide 10 percent of its grant funding on the microborrowers to the lender under microloans under this program. this program over $400,000 up to and administrative expenses. Microlenders (1) Purpose. The Agency shall make that go over 10 percent will be including $2.5 million. This calculation microlender TA grants to microlenders leads to a maximum grant of $205,000 considered in performance default and to assist them in providing marketing, may be subject to forfeiting funding. annually for any microlender to provide management, and other technical technical assistance to its clients. These (iv) Budget adjustments will be assistance to rural microentrepreneurs considered within the 10 percent grants will be awarded annually. and microenterprises that have received (ii) The maximum amount of a TA- limitation and approved or denied on a or are seeking one or more microloans case-by-case basis. only grant under this program will not from the microlender. exceed 10 percent of the amount of (c) TA-only grants. Grants will be (2) Grant amounts. Microlender TA competitively made to MDOs for the funding available for TA-only grants. grants will be limited to an amount The amount of funding available for TA purpose of providing technical equal to not more than 25 percent of the assistance and training to prospective funding will be announced annually total outstanding balance of microloans and will be based on the availability of microborrowers. Technical assistance- made under this program and active by only grants will be provided to eligible funds. In no case will funding for the the microlender as of the date the grant TA-only grants exceed 10 percent of the MDOs that seek to provide business- is awarded for the first $400,000 plus an based technical assistance and training amount appropriated for the program additional 5 percent of the loan amount each Federal fiscal year. to eligible microentrepreneurs and owed by the microborrowers to the microenterprises, but do not seek (2) Matching requirement. The MDO lender under this program over funding for an RMRF. Entities receiving is required to provide a match of not $400,000 up to and including $2.5 microlending TA grants will not be less than 15 percent of the total amount million. Funds cannot be used to pay off eligible to apply for TA-only grants. of the grant in the form of matching the loans. During the first year of (1) Grant term. TA-only grants will funds, indirect costs, or in-kind goods or operation, the percentage will be have a grant term not to exceed 12 services. Unless specifically permitted determined based on the amount of the months from the date the grant by laws other than the statute loan to the microlender, but will be agreement is signed. authorizing RMAP, matching disbursed on a quarterly basis based on (2) Funding level. The maximum contributions must be made up of non- the amount of microloans made. Any amount of a TA-only grant under this Federal funding. grant dollars obligated, but not spent, program will not exceed 10 percent of (3) Administrative expenses. Not more from the initial grant, will be subtracted the amount of funding available for TA- than 10 percent of a grant received by from the subsequent year grant to ensure only grants. In no case will funding for a MDO for a Federal fiscal year (FY) that obligations cover only microloans the TA-only grants exceed 10 percent of may be used to pay administrative made and active. the amount appropriated for the expenses. MDOs must submit an annual (3) TA grant fund uses and program each Federal fiscal year. budget of proposed administrative limitations. The microlender will agree (3) Loan referencing. TA-only grantees expenses for Agency approval. The to use TA grant funding exclusively for will be required to: Agency has the right to deny the 10 providing technical assistance and (i) Refer clients to internal or external percent and to fund administration training to eligible microentrepreneurs non-program funded lenders for loans of expenses at a lower level. and microenterprises, with the $50,000 or less and (4) Ineligible grant purposes. Grant exception that up to 10 percent of the (ii) Collect data regarding such funds, matching funds, indirect costs, grant funds may be used to cover the clients. TA-only grantees will be

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considered successful if a minimum of differ based on the nature of the (9) Certification by the applicant that 1- in-5 TA clients are referred for a application. All applicants must provide it cannot obtain sufficient credit microloan and are operating a business the information specified in paragraph elsewhere to fund the activities called within 18 months of receiving technical (c) of this section. Additional for under this program with similar assistance. application information is required in rates and terms. (4) Facilitation of access to capital. paragraph (d) of this section depending (10) Form RD 400–4, ‘‘Assurance Technical assistance-only grantees will on the type of application being Agreement.’’ be expected to provide training and submitted. (d) Type of application specific technical assistance services to the (c) Application information for all information. In addition to the extent that access to capital for eligible applicants. All applicants must provide information required under paragraph microentrepreneurs and the following information and forms (c) of this section, the following microenterprises is facilitated by referral fully completed and with all information is also required, as to either an internal or external non- attachments: applicable: program loan fund so that these clients (1) Standard Form-424, ‘‘Application (1) The information specified in may take advantage of available for Federal Assistance.’’ § 4280.316(a). financing programs. (2) Standard Form-424A, ‘‘Budget (2) An applicant for status as a (5) Microlender funding. No entity Information—Non-construction microlender with more than 3 years of will receive grant funding as both a Programs.’’ experience as an MDO seeking to microlender and a TA-only provider; (3) Standard Form-424B, participate as a microlender must that is, RMAP microlenders are not ‘‘Assurances—Non-construction provide the additional information eligible for TA-only funding and an Programs.’’ specified in § 4280.316(b). Such an MDO receiving TA-only funding are not (4) For entities that are applying for applicant will be applying for a loan to eligible for microlender funding. more than $150,000 in loan funds and/ capitalize an RMRF, which, unless (d) Grant agreement. For any grant to or more than $100,000 in grant funds, otherwise requested by the applicant, an MDO or microlender, the Agency only, SF LLL, ‘‘Disclosure of Lobbying will be accompanied by a microlending will notify the approved applicant in Activities.’’ TA grant. writing, using an Agency-approved (5) AD 1047, ‘‘Certification Regarding (3) An applicant for status as a grant agreement setting out the Debarment, Suspension, and other microlender with 3 years or less conditions under which the grant will Responsibility Matters—Primary experience as an MDO seeking to be made. The form will include those Covered Transaction.’’ participate as a microlender must matters necessary to ensure that the (6) For entities applying for program provide the additional information proposed grant is completed in loan funds to become an RMAP specified in § 4280.316(c). Such an accordance with the proposed project, microlender only, Form RD 1910–11, applicant will be applying for a loan to that grant funds are expended for ‘‘Certification of No Federal Debt.’’ capitalize an RMRF, which, unless authorized purposes, and that the (7) Form RD 400–8, ‘‘Compliance otherwise requested by the applicant, applicable requirements prescribed in Review.’’ will be accompanied by a microlending TA grant. the relevant Department regulations are (8) Demonstration that the applicant (4) All applicants seeking status as a complied with. is eligible to apply to participate in this microlender must identify in their program. To demonstrate eligibility, §§ 4280.314 [Reserved] application which cost share option(s) applicants must submit documentation the applicant will utilize, as described § 4280.315 MDO application and that the applicant is an MDO as defined in § 4280.311(d), to meet the Federal submission information. in § 4280.302, as follows: cost share requirement. If the applicant (i) If a nonprofit entity, evidence that (a) Initial and subsequent will utilize the RMRF-level option, the the applicant organization meets the applications. Applications shall be applicant shall identify the amount(s) citizenship requirements; submitted in accordance with the and source(s) of the non-Federal share. provisions of this subpart unless (ii) If a nonprofit entity, a copy of the (5) An applicant seeking TA-only adjusted by the Agency in an annual applicant’s bylaws and articles of grant funding must provide the Federal Register Notice for Solicitation incorporation, which include evidence additional information specified in of Applications (NOSA) or a Notice of that the applicant is legally considered § 4280.316(e). Funding Availability (NOFA), a non-profit organization; (e) Application limits. Paragraph (d) depending on the availability of funds at (iii) If an Indian tribe, evidence that of this section sets out three types of the time of publication. the applicant is a Federally-recognized funding under which applications may (1) The information required in this Indian tribe, and that the tribe neither be submitted. MDOs may only submit section is necessary for an application to operates nor is served by an existing and have pending for consideration, at be considered complete. MDO; any given time, one application, (2) When preparing applications, (iv) If a public institution of higher regardless of funding category. applicants are strongly encouraged to education, evidence that the applicant is (f) Completed applications. review the scoring criteria in § 4280.316 a public institution of higher education; Applications that fulfill the and provide documentation that will and requirements specified in paragraphs (a) support a competitive score. (v) For nonprofit applicants only, a through (e) of this section will be fully (3) Only those applicants that meet Certificate of Good Standing, not more reviewed, scored, and ranked by the the basic eligibility requirements in than 6 months old, from the Office of Agency in accordance with the § 4280.310 will have their applications the Secretary of State in the State in provisions of § 4280.316. fully scored and considered for which the applicant is located. If the participation in the program under this applicant has offices in more than one § 4280.316 Application scoring. section. state, then the state in which the Applications will be scored based on (b) Content and form of submission. applicant is organized and licensed will the criteria specified in this section The content and form requirements will be considered the home location. using only the information submitted in

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the application. The total available administer the program. Up to 5 points Describe the service area, which must be points per application are 100. Points will be awarded. rural as defined. State the number of will be awarded as shown in paragraphs (3) A succession plan to be followed counties or other jurisdictions to be (a) through (e) of this section. Awards in the event of the departure of served. Describe the demographics of will be based on the ranking, with the personnel key to the operation of the the service area and whether or not the highest ranking applications being applicant’s RMAP activities. Up to 5 population is a diverse population. Note funded first, subject to available points will be awarded. that the applicant will not be scored on funding. (4) Information indicating an the size of the service area, but on its (a) Application requirements for all understanding of microenterprise ability to fully cover the service area as applicants. All applicants must submit development concepts. Provide those described. Up to 10 points will be the eligibility information described in parts of your policy and procedures awarded. § 4280.315. Only those applicants manual that deal with the provision of (b) Program loan application deemed eligible will be scored for loans, management of loan funds, and requirements for MDOs seeking to qualification. Qualification information provision of technical assistance. Up to participate as RMAP microlenders with provides the complete forms and 5 points will be awarded. more than 3 years of experience. In information necessary to determine a (5) Copies of the applicant’s most addition to the information required baseline of capacity. Additional recent, and two years previous, financial under paragraph (a) of this section, information is specified depending on statements. Points will be awarded applicants with more than 3 years of the level of experience or type of based on the demonstrated ability of the experience as a microlender also must funding being applied for. The applicant to maintain or grow its bottom provide the information specified in maximum points available in this part line fund balance, its ability to manage paragraphs (b)(1) through (5) of this of the application are 45. In addition to one or more federal programs, and its section. The total number of points the eligibility information, all applicants capacity to manage multiple funding available under this paragraph, in will submit: sources, restricted and non-restricted addition to the up to 45 points available (1) An organizational chart clearly funding sources, income, earnings, and in paragraph (a) of this section, is 55, for showing the positions and naming the expenditures. Up to 10 points will be a total of 100. individuals in those positions. Of awarded. (1) History of provision of microloans. particular interest to the Agency are (6) A copy of the applicant’s The applicant must provide data management positions and those organizational mission statement. The regarding its history of making positions essential to the operation of mission statement will be rated based microloans for the three years previous microlending and TA programming. Up on its relative connectivity to to this application by answering the to 5 points will be awarded. microenterprise development and questions in paragraphs (b)(1)(i) through (2) Resumes for each of the general economic development. The (vi) of this section. This information individuals shown on the organizational mission statement may or may not be a should be provided clearly and chart and indicated as key to the part of a larger statement. For example, concisely in numerical format as the operation of the activities to be funded if the mission statement is included in data will be used to calculate points as under this program. There should be a the by-laws or other organizational noted. Figure 1 presents an example of corresponding resume for each of the documents, please so note, direct the the format and data required. The key individuals noted and named on the reviewer to the proper document, and maximum number of points under this organizational chart. Points will be do not submit these documents twice. criterion is 20. awarded based on the quality of the Up to 5 points will be awarded. resumes and on the ability (based on the (7) Information regarding the Figure 1. Example of Format and Data resumes) of the key personnel to geographic service area to be served. Requirements

Federal FY Data item 2nd year Last fiscal Year before before last Total year last fiscal year fiscal year

Total # of Microloans Made ...... Total $ Amount of Microloans Made ...... # of Microloans Made in Rural Areas ...... Total $ Amount of Microloans Made in Rural Areas ...... # of Microloans Made to Racial and Ethnic Minorities ...... # of Microloans Made to women ...... # of Microloans Made to the Disabled ......

(i) Number and amount of microloans of providing microloans in rural areas (C) At least 6 months, but not more made during each of the three previous shows: than one year immediately prior to this Federal FYs. Do not include current (A) More than the three consecutive application, 1 point will be awarded. year information. A narrative may be years immediately prior to this (iii) Percentage of number of loans included as a separate attachment, not application, 5 points will be awarded; made in rural areas. Calculate and enter in the body of the suggested table. (B) At least two of the years but not the total number of microloans made in (ii) Number and amount of microloans more than the three consecutive years rural areas as a percentage of the total made in rural areas in each of the three immediately prior to this application, 3 number of all microloans made for each years prior to the year in which the points will be awarded; of the past three Federal FYs. If the application is submitted. If the history

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percentage of the total number of portfolio will be determined based on ethnic minority, disabled, and/or gender microloans made in rural areas is: the data provided in response to that received both microloans and TA (A) 75 percent or more, 5 points will paragraphs (b)(2)(i) and (ii) of this services for each of the previous three be awarded; section and scored accordingly. The Federal FYs. If the demonstrated (B) At least 50 percent but less than maximum number of points under this provision of microloans and technical 75 percent, 3 points will be awarded; criterion is 10. assistance to these rural (C) At least 25 but less than 50 (i) Enter the total number of your microentrepreneurs and rural percent, 1 point will be awarded. microloans paying on time for the three microenterprises is at a rate of: (iv) The percentage of dollar amount previous Federal FYs. If the total (A) 75 percent or more, 5 points will of loans made in rural areas. Enter the number of microloans paying on time at be awarded; dollar amount of microloans made in the end of each year over the prior three (B) At least 50 percent but less than rural areas as a percentage of the dollar Federal FYs is: 75 percent, 3 points will be awarded; amount of the total portfolio (rural and (A) 95 percent or more, 5 points will (C) At least 25 percent but less than non-rural) of microloans made for each be awarded; 50 percent, 1 point will be awarded. of the previous three Federal FYs. If (B) At least 85 percent but less than (iv) Provide the ratio of TA clients percentage of the dollar amount of the 95 percent, 3 points will be awarded; that also received microloans during microloans made in rural areas is: (C) Less than 85 percent, 0 points will each of the previous three Federal FYs. (A) 75 percent or more of the total be awarded. If the ratio of clients receiving technical amount, 5 points will be awarded; (ii) Enter the total number of assistance to clients receiving (B) At least 50 percent but less than microloans 30 to 90 days in arrears or microloans is: 75 percent, 3 points will be awarded; that have been written off at year end for (A) Between 1:1 and 1:5, 5 points will (C) At least 25 percent but less than the three previous Federal FYs. If the be awarded. 50 percent, 1 point will be awarded. total number of these microloans is: (B) Between 1:6 and 1:8, 3 points will (v) Each applicant shall compare the (A) 5 percent or less of the total be awarded. diversity of its entire microloan portfolio, 5 points will be awarded; portfolio to the demographic makeup of (B) More than 5 percent, 0 points will (C) Either 1:9 or 1:10, 1 point will be its service area (as determined by the be awarded. awarded. latest applicable decennial census for (3) History of provision of technical (4) Ability to provide technical the State) based on the number of assistance. Each applicant’s history of assistance. In addition to providing a microloans made during the three years provision of technical assistance to statistical history of their provision of preceding the subject application. microentrepreneurs and technical assistance to Demographic groups shall include microenterprises, and their ability to microentrepreneurs, microenterprises, gender, racial and ethnic minority reach diverse communities, will be and microborrowers, applicants must status, and disability (as defined in The scored based on the data specified in provide a narrative of not more than five Americans with Disabilities Act). Points paragraphs (b)(3)(i) through (iv) of this pages describing the teaching and will be awarded on the basis of how section. Applicants may use a chart training methods used by the applicant close the MDO’s microloan portfolio such as that suggested in Figure 1 as organization to provide such technical matches the demographic makeup of its they deem appropriate. The maximum assistance and discussing the outcomes service area. A maximum of 5 points number of points under this criterion is of their endeavors. Technical assistance will be awarded. 15. is defined in § 4280.302. The narrative (A) If at least one loan has been made (i) Provide the total number of rural will be scored as specified in paragraphs to each demographic group and if the and non-rural microentrepreneurs and (b)(4)(i) through (iv) of this section. The percentage of loans made to each microenterprises that received both maximum number of points under this demographic group is each within 5 or microloans and TA services for each of criterion is 5. less percent of the demographic the previous three Federal FYs. (i) Applicants that have used more makeup, 5 points will be awarded. (ii) Provide the percentage of the total than one method of training and (B) If at least one loan has been made number of only rural technical assistance (e.g., classroom to each demographic group and if the microentrepreneurs and rural training, peer-to-peer discussion groups, percentage of loans made to each microenterprises that received both individual assistance, distance learning) demographic group is each within 10 or microloans and TA services for each of will be awarded 2 points. less percent of the demographic the previous three Federal FYs (ii) Applicants that provide success makeup, 3 points will be awarded. (calculate this as the total number of stories to demonstrate the effects of (C) If at least one loan has been made rural microloans made each year technical assistance on their clients will to each demographic group and if the divided by the total number of loans be awarded 1 point. percentage of loans made to one or more made during the past three Federal (iii) Applicants that provide evidence of the demographic groups is greater FYs). If provision of both microloans that they require evaluations by the than 10 percent of the demographic and technical assistance to rural clients of their training programs and makeup or if no loans have been made microentrepreneurs and rural indicate that the average level of to one of the demographic groups and microenterprises is demonstrated at a evaluation scores is ‘‘good’’ or higher if the percentage of loans made to each rate of: will be awarded 1 point. of the other demographic groups is each (A) 75 percent or more, 5 points will (iv) Applicants that present their within 10 or less percent of the be awarded; narrative information clearly and demographic makeup, 1 point will be (B) At least 50 percent but less than concisely (five pages or less) and at a awarded. 75 percent, 3 points will be awarded; level expected by trainers and teachers (D) If no loans have been made to two (C) At least 25 percent but less than will be awarded 1 point. or more demographic groups, no points 50 percent, 1 point will be awarded. (5) Proposed administrative expenses will be awarded. (iii) Provide the percentage of the total to be spent from TA grant funds. The (2) Portfolio management. Each number of rural microentrepreneurs and maximum number of points under this applicant’s ability to manage its rural microenterprises by racial and criterion is 5. If the percentage of grant

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funds to be used for administrative (3) The applicant must describe in (d) Application requirements for purposes is: detail any microenterprise development MDOs seeking technical assistance-only (i) Less than 5 percent of the TA grant training received by it as a whole, or its grants. TA-only grants may be provided funding, 5 points will be awarded; employees as individuals, to date. The to MDOs that are not RMAP (ii) Between 5 percent and 8 percent, narrative may refer reviewers to already microlenders seeking to provide training but not including 8 percent, 3 points submitted resumes to save space. The and technical assistance to rural will be awarded; and training received will be rated on its microentrepreneurs and rural (iii) Between 8 percent up to and topical variety, the quality of the microenterprises. An applicant seeking including 10 percent, 0 point will be description, and its relevance to the a TA-only grant must submit the awarded. organization’s strategic plan. The information specified in paragraphs (c) Application requirements for applicant should not submit training (d)(1) through (4) of this section. The MDOs seeking to participate as RMAP brochures or conference total number of points available under microlenders with 3 years or less announcements. Up to 10 points will be this section, in addition to the 45 points experience. In addition to the awarded. available in paragraph (a) of this section, information required under paragraph (4) The applicant must indicate its is 55, for a total of 100 points. (a) of this section, an applicant MDO current number of employees, those that (1) History of provision of technical with 3 years or less experience that is concentrate on rural assistance. Each applicant’s history of applying to be a microlender must microentrepreneurial development, and provision of technical assistance to submit the information specified in the current average caseload for each. microentrepreneurs and paragraphs (c)(1) through (8) of this Indicate how the caseload ratio does or microenterprises, and their ability to section. The total number of points does not optimize the applicant’s ability reach diverse communities, will be available under this paragraph, in to perform the services described in the scored based on the data specified in addition to the up to 45 points available work plan. Discuss how Agency grant paragraphs (d)(1)(i) through (iv) of this in paragraph (a) of this section, is 55, for funding will be used to assist with TA section. Applicants may use a chart a total of 100. program delivery and how loan funding such as that suggested in Figure 1 as (1) The applicant must provide a will affect the portfolio. Up to 5 points they deem appropriate. The maximum narrative work plan that clearly will be awarded. number of points under this criterion is indicates its intention for the use of loan (5) The applicant must indicate any 20. and grant funding. Provide goals and training organizations with which it has (i) Provide the total number of rural milestones for planned microlending a working relationship. Provide contact and non-rural microentrepreneurs and and technical assistance activities. In information for references regarding the microenterprises that received both relation to the information requested in applicant’s capacity to perform the work microloans and TA services for each of paragraph (a) of this section, the plan provided. If the recommendations the previous three Federal FYs. applicant must describe how it will received from references are: (ii) Provide the percentage of the total incorporate its mission statement, (i) Generally excellent, 5 points will number of rural microentrepreneurs and utilize its employees, and maximize its be awarded; rural microenterprises that received human and capital assets to meet the (ii) Generally above average, 3 points both microloans and TA services for goals of this program. The applicant will be awarded; each of the previous three Federal FYs (iii) Generally average, 1 point will be must provide its strategic plan and (calculate this as the total number of awarded; organizational development goals and rural microloans made each year (iv) Generally less than average, 0 clearly indicate its lending goals for the divided by the total number of rural and points will be awarded. non-rural microloans made during the five years after the date of application. (6) Describe any plans for continuing The narrative work plan should be not past three Federal FYs). If provision of training relationship(s), including both technical assistance and resultant more than five pages in length. Up to 10 ongoing or future training plans and points will be awarded. microloans to rural microentrepreneurs goals, and the timeline for same. Up to and rural microenterprises is (2) The applicant will provide the 5 points will be awarded. date that it began business as an MDO demonstrated at a rate of: (7) The applicant will describe its (A) 75 percent or more, 5 points will or other provider of business education internal benchmarking system for be awarded; and/or facilitator of capital. This date determining client success, reporting on (B) At least 50 percent but less than will reflect when the applicant became client success, and following client 75 percent, 3 points will be awarded; licensed to do business, in good success for up to 5 years after (C) At least 25 percent but less than standing with the Secretary of State in completion of a training relationship. 50 percent, 1 point will be awarded. which it is registered to do business, Up to 10 points will be awarded. (iii) Provide the percentage of the total and regularly paid staff to conduct (8) The applicant will identify its number of rural microentrepreneurs by business on a daily basis. If the proposed administrative expenses to be racial and ethnic minority, disabled, applicant has been in business for: spent from TA grant funds. The and/or gender that received both (i) More than 2 years but less than 3 maximum total number of points under microloans and TA services for each of years, 5 points will be awarded; this criterion is 5. If the percentage of the previous three Federal FYs. If the (ii) At least 1 year, but not more than grant funds to be used for administrative demonstrated provision of technical 2 years, 3 points will be awarded; purposes is: assistance and resultant microloans to (iii) At least 6 months, but not more (i) Less than 5 percent of the TA grant these rural microentrepreneurs when than 1 year, 1 point will be awarded; funding, 5 points will be awarded; compared to the total number of (iv) Less than 6 months, or more than (ii) Between 5 percent and 8 percent, microentrepreneurs assisted, is at a rate 3 full years, 0 points will be awarded. but not including 8 percent, 3 points of: (If more than 3 full years, the applicant will be awarded; and (A) 75 percent or more, 10 points will must apply under the provisions for (iii) Between 8 percent up to and be awarded; MDOs with more than 3 years including 10 percent, 0 points will be (B) At least 50 percent but less than experience as specified in § 4280.315.) awarded. 75 percent, 7 points will be awarded;

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(C) At least 25 percent but less than (4) Proposed administrative expenses § 4280.317 Selection of applications for 50 percent, 5 point will be awarded. to be spent from TA grant funds. The funding. (iv) Provide the ratio of TA clients maximum number of points under this All applications received will be that also received microloans during criterion is 5. If the percentage of grant scored using the scoring criteria each of the last three years. If the ratio funds to be used for administrative specified in § 4280.316. Because each of clients receiving technical assistance purposes is: set of applicants is scored on a 100 to clients receiving microloans is: (i) Less than 5 percent of the TA grant point scale, applications will be ranked (A) Between 1:1 and 1:5, 5 points will funding, 5 points will be awarded; together. Shortened applications can be awarded. (ii) Between 5 percent and 8 percent, only receive 90 points. Within funding (B) Between 1:6 and 1:8, 3 points will but not including 8 percent, 3 points limitations, applications will be funded be awarded. will be awarded; and in descending order, from the highest (C) Either 1:9 or 1:10, 1 point will be (iii) Between 8 percent up to and ranking application down. If two or awarded. including 10 percent, 1 point will be more applications score the same, the (2) Ability to provide technical awarded. Administrator may prioritize such assistance. In addition to providing a (e) Re-application requirements for applications to help the program statistical history of their provision of participating microlenders with more achieve overall geographic diversity. technical assistance to than 5 years experience as a (a) Timing and submission of microentrepreneurs, microenterprises, microlender under this program. applications. (1) All applications must be submitted and microborrowers, applicants must (1) Microlender applicants with more as a complete application, in one provide a narrative of not more than five than 5 years of experience as an MDO package. Packages must be bound in a pages describing the teaching and under this program may choose to three ring binder and evidence must be training method(s) used by the applicant submit a shortened loan/grant organized in the order of appearance in organization to provide technical application that includes the following: § 4280.315 of this document. assistance and discussing the outcomes (i) A letter of request for funding Applications that are unbound, of their endeavors. The narrative will be stating the amount of loan and/or grant disorganized, or otherwise not ready for scored as specified in paragraphs funds being requested; evaluation will be returned. (d)(2)(i) through (iv) of this section. The (ii) An indication of the loan and/or maximum number of points under this (2) Applications will be accepted on grant amounts being requested a quarterly basis using Federal fiscal criterion is 20. accompanied by a completed SF 424 (i) Applicants that have used more quarters. Deadlines and specific and any pertinent attachments; than one method of training and application instructions will be (iii) An indication of the number and technical assistance (e.g., classroom published annually in the Federal percent of program microentrepreneurs training, peer-to-peer discussion groups, Register. and microenterprises remaining in individual assistance, distance learning) (3) Applications received will be business for two years or more after will be awarded 5 points. reviewed, scored, and ranked quarterly. microloan disbursement; and (ii) Applicants that provide success Unless withdrawn by the applicant, the (iv) A recent resolution of the stories to demonstrate the effects of Agency will retain unsuccessful applicant’s Board of Directors approving technical assistance on their clients will applications that score 70 points or the application for debt. be awarded points under either of the more, for consideration in subsequent (2) The Agency, using this request, following paragraphs, but not both. reviews, through a total of four quarterly (A) News stories that highlight and data available in the reports reviews. Applications unsuccessful after businesses made successful as a result submitted under previous fundings, will 4 quarters will be returned. of technical assistance, 5 points will be review the overall program performance (b) Availability of funds. If an awarded. of the applicant over the life of its application is received, scored, and (B) Internal stories that highlight participation in the program to ranked, but insufficient funds remain to businesses made successful as a result determine its continued qualification for fully fund it, the Agency may elect to of technical assistance, 3 points. subsequent funding. Requirements fund an application requesting a smaller (iii) Applicants that provide evidence include: amount that has a lower score. Before that they require evaluations by the (i) A default rate of 5 percent or less; this occurs, the Agency, as applicable, clients of their training programs and (ii) A pattern of delinquencies during will provide the higher scoring indicate that the evaluation scores are the period of participation in this applicant the opportunity to reduce the generally: program of 10 percent or less; amount of its request to the amount of (A) Excellent, 5 points will be (iii) A pattern of use of TA dollars that funds available. If the applicant agrees awarded. indicates at least one in ten TA clients to lower its request, it must certify that (B) Good, 3 points will be awarded. receive a microloan; the purposes of the project can be met, (C) Less than good, 0 points will be (iv) A statement discussing the need and the Agency must determine that the awarded. for more funding, accompanied by project is financially feasible at the (iv) Applicants that present well- account documentation showing the lower amount. written narrative information that is amounts in each of the RMRF and LLRF (c) Applicant notification. The clearly and concisely written and is five accounts established to date; and Agency will notify applicants regarding pages or less will be awarded 5 points. (v) A pattern of compliance with their selection or non-selection, provide (3) Technical assistance plan. Submit program reporting requirements. appeal rights of unsuccessful applicants, a plan for the provision of technical (3) Shortened applications under this and closing procedures for the loans assistance explaining how the funding section will be rated on a pass or fail and/or grants to awardees. will benefit the current program and basis. Passing applications will be (d) Closing. Awardees unable to how it will allow the applicant to assigned a score of 90 points and will complete closing for obligation within expand its non-program microlending be ranked accordingly in the quarterly 90 days will forfeit their funding. Such activities. Up to 10 points will be competitions. Failing applications will funding will revert back to the Agency awarded be scored 0. for later use.

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§§ 4280.318–4280.319 [Reserved] (b) Loans. Loans to microlenders will microlender). Denial letters from other be serviced in accordance with the lenders are not required. § 4280.320 Grant administration. following: (e) Fair credit requirements. To ensure (a) Oversight. Any MDO receiving a (1) Department of Agriculture fairness, microlenders must publicize grant under this program is subject to regulations 7 CFR part 1951, subparts E, their rates and terms on a regular basis. Agency oversight, with site visits and O, and R; Microlenders are also subject to Fair inspection of records occurring at the (2) Other Department of Agriculture Credit lending laws as discussed in discretion of the Agency. In addition, regulations as may be applicable; and § 4280.305. MDOs receiving a grant under this (3) OMB Circular A–129. (f) Eligible microloan purposes. subpart must submit reports, as Agency loan funds may be used to make specified in paragraphs (a)(1) through § 4280.322 Loans from the microlenders to microloans as defined in § 4280.302 for (3) of this section. microentrepreneurs. any legal business purpose not (1) On a quarterly basis, within 30 The primary purpose of making a loan identified in § 4280.323 as an ineligible days after the end of each Federal fiscal to a microlender is to enable that purpose. Microlenders may make quarter, the microlender will provide to microlender to make microloans. It is microloans for qualified business the Agency an Agency-approved the responsibility of each activities and expenses including, but quarterly report containing such microborrower to repay the microlender not limited to: information as the Agency may require in accordance with the terms and (1) Working capital; to ensure that funds provided are being conditions agreed to with the (2) The purchase of furniture, fixtures, used for the purposes for which the microlender. It is the responsibility of supplies, inventory or equipment; grant was made, including: (3) Debt refinancing; (i) SF–PPR, ‘‘Performance Progress each microlender to make microloans in (4) Business acquisitions; and ’’ such a fashion that the terms and Report, including narrative reporting (5) The purchase or lease of real estate information as required by Office of conditions of the microloan will support that is already improved and will be Management and Budget (OMB) microborrower success while enabling used for the location of the subject circulars and successor regulations. This the microlender to repay the Federal business only, provided no demolition report will include information on the Government. or construction will be accomplished microlender’s technical assistance, (a) Maximum microloan amount. The with program funding. Neither interior training, and/or enhancement activity, maximum amount of a microloan made decorating, nor the affixing of chattel to and grant expenses, milestones met, or under this program will be $50,000. walls, floors, or ceilings are considered unmet, explanation of difficulties, (b) Microloan terms and conditions. to be demolition or construction. observations and other such The terms and conditions for (g) Military personnel. Military information; microloans made by microlenders will (ii) As appropriate, SF–270; and be negotiated between the prospective personnel who are or seek to be a (iii) If requesting grant funding at the microborrower and the microlender, microentrepreneur and are on active time of reporting, SF–PPR–E, ‘‘Activity with the following limitations: duty with six months or less remaining Based Expenditures.’’ (1) No microloan may have a term of in their active duty status may receive (2) If a microlender has more than one more than 10 years; a microloan and/or technical assistance grant from the Agency, a separate report (2) The interest rate charged to the and training if they are otherwise must be made for each. microborrower will be established at, or qualified to participate in the program. (3) Other reports may be required by before the closing of the microloan; and § 4280.323 Ineligible microloan purposes the Agency from time to time in the (3) The microlender may establish its and uses. event of poor performance or other such margin of earnings but may not adjust Agency loan funds will not be used occurrences that require more than the the margin so as to violate Fair Credit for the payment of microlender usual set of reporting information. Lending laws. Margins must be administrative costs or expenses and (b) Payments. The Agency will make reasonable so as to ensure that grant payments not more often than on microlenders may not make microloans microloans are affordable to the under this program for any of purposes a quarterly basis. The first payment may microborrowers. be made in advance and will equal no and uses identified as ineligible in (c) Microloan insurance requirements. paragraphs (a) through (p) of this more than one fourth of the grant award. The requirement of reasonable hazard, Payment requests must be submitted on section. key person, and other insurance will be (a) Construction costs. Standard Form 270 and will only be at the discretion of the microlender. paid if reports are up to date and (b) Any amount in excess of that (d) Credit elsewhere test. approved. needed by a microborrower to Microborrowers will be subject to a accomplish the immediate business § 4280.321 Grant and loan servicing. ‘‘credit elsewhere’’ test so that the goal. In addition to the ongoing oversight of microlender will make loans only to (c) Assistance that will cause a the participating MDOs: those borrowers that cannot obtain conflict of interest or the appearance of (a) Grants. Grants will be serviced in business funding of $50,000 or less at a conflict of interest including but not accordance with all applicable affordable rates and on acceptable limited to: regulations: terms. Each microborrower file must (1) Financial assistance to principals, (1) Department of Agriculture contain evidence that the directors, officers, or employees of the regulations including, but not limited to microborrower has sought credit microlender, or their close relatives as 7 CFR part 1951, subparts E and O, parts elsewhere or that the rates and terms defined; and 3015, 3016, 3017, 3018, 3019, and 3052; available within the community at the (2) Financial assistance to any entity and time were outside the range of the the result of which would appear to (2) Office of Management and Budget microborrower’s affordability. Evidence benefit the microlender or its principals, (OMB) regulations including, but not may include a comparison of rates, loan directors, or employees, or their close limited to, 2 CFR parts 215, 220, 230, limitations, terms, etc. for other funding relatives, as defined, in any way other and OMB Circulars A–110 and A–133. sources to those forth offered by the than the normal repayment of debt.

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(d) Distribution or payment to a (i) Any illegal activity. §§ 4280.324–4280.399 [Reserved] microborrower when such will use any (j) Any project that is in violation of § 4280.400 OMB control number. portion of the microloan for other than either a Federal, State, or local the purpose for which it was intended. environmental protection law, The information collection (e) Distribution or payment to a regulation, or enforceable land use requirements contained in this charitable institution not gaining restriction unless the microloan will regulation have been approved by the revenue from sales or fees to support the result in curing or removing the Office of Management and Budget operation and repay the microloan. violation. (OMB) and have been assigned OMB (f) Microloans to a fraternal control number 0570–XXXX. A person organization. (k) Microloans to lending and (g) Any microloan to an applicant that investment institutions and insurance is not required to respond to this has an RMAP funded microloan companies. collection of information unless it application pending with another (l) Golf courses, race tracks, or displays a currently valid OMB control microlender or that has an RMAP- gambling facilities. number. funded microloan outstanding with (m) Any lobbying activities as Dated: May 13, 2010. another microlender that would cause described in 7 CFR part 3018. Curtis A. Wiley, the applicant to owe a combined (n) Lines of credit. amount of more than $50,000 to one or Acting Administrator, Rural Business- more microlenders under this program. (o) Subordinated liens. Cooperative Service. (h) Assistance to USDA Rural (p) Use of an Agency funded loan to [FR Doc. 2010–11931 Filed 5–27–10; 8:45 am] Development (Agency) employees, or pay debt service on a previous Agency BILLING CODE 3410–XY–P their close relatives, as defined. loan.

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Part III

Department of Transportation Federal Aviation Administration

14 CFR Part 91 Automatic Dependent Surveillance— Broadcast (ADS–B) Out Performance Requirements To Support Air Traffic Control (ATC) Service; Final Rule

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DEPARTMENT OF TRANSPORTATION Aviation Administration, 800 ALPA—Air Line Pilots Association, Independence Avenue, SW., International Federal Aviation Administration Washington, DC 20591; telephone (202) AOPA—Aircraft Owners and Pilots 385–8637; e-mail Association 14 CFR Part 91 ARC—Aviation Rulemaking Committee [email protected]. ASA—Aircraft Surveillance Applications [Docket No. FAA–2007–29305; Amdt. No. For legal questions concerning this ASAS—Aircraft Surveillance Applications 91–314] final rule, contact Lorelei Peter, Office System of the Chief Counsel, AGC–220, Federal ASDE–X—Airport Surface Detection RIN 2120–AI92 Aviation Administration, 800 Equipment, Model X Independence Avenue, SW., ASSA—Airport Surface Situational Automatic Dependent Surveillance— Washington, DC 20591; telephone 202– Awareness Broadcast (ADS–B) Out Performance 267–3134; e-mail [email protected]. ATC—Air Traffic Control Requirements To Support Air Traffic CAA—Cargo Airline Association SUPPLEMENTARY INFORMATION: Control (ATC) Service CDTI—Cockpit Display of Traffic Information Authority for This Rulemaking CNS—Communication, Navigation, and AGENCY: Federal Aviation Surveillance Administration (FAA), DOT. The FAA’s authority to issue rules on EAA—Experimental Aircraft Association ACTION: Final rule. aviation safety is found in Title 49 of the ELT—Emergency Locator Transmitter United States Code (49 U.S.C.). Subtitle ES—Extended Squitter SUMMARY: This final rule amends FAA I, Section 106, describes the authority of EUROCAE—European Organisation for Civil regulations by adding equipage the FAA Administrator. Subtitle VII, Aviation Equipment requirements and performance Aviation Programs, describes in more EUROCONTROL—European Organisation for standards for Automatic Dependent detail the scope of the agency’s the Safety of Air Navigation Surveillance—Broadcast (ADS–B) Out authority. FAROA—Final Approach Runway This rulemaking is promulgated Occupancy Awareness avionics on aircraft operating in Classes FedEx—Federal Express A, B, and C airspace, as well as certain under the authority described in FIS–B—Flight Information Service–Broadcast other specified classes of airspace Subtitle VII, Part A, Subpart I, Section FL—Flight Level within the U.S. National Airspace 40103, Sovereignty and use of airspace, GA—General Aviation System (NAS). ADS–B Out broadcasts and Subpart III, Section 44701, General GAMA—General Aviation Manufacturers information about an aircraft through an requirements. Under section 40103, the Association onboard transmitter to a ground FAA is charged with prescribing GNSS—Global Navigation Satellite System receiver. Use of ADS–B Out will move regulations on the flight of aircraft GPS—Global Positioning System air traffic control from a radar-based (including regulations on safe altitudes) HAI—Helicopter Association International for navigating, protecting, and IATA—International Air Transport system to a satellite-derived aircraft Association location system. This action facilitates identifying aircraft, and the efficient use ICAO—International Civil Aviation the use of ADS–B for aircraft of the navigable airspace. Under section Organization surveillance by FAA and Department of 44701, the FAA is charged with MHz—Megahertz Defense (DOD) air traffic controllers to promoting safe flight of civil aircraft in MOPS—Minimum Operational Performance safely and efficiently accommodate air commerce by prescribing regulations Standards aircraft operations and the expected for practices, methods, and procedures MSL—Mean Sea Level increase in demand for air the Administrator finds necessary for NACP—Navigation Accuracy Category For transportation. This rule also provides safety in air commerce. Position NAC —Navigation Accuracy Category for aircraft operators with a platform for This regulation is within the scope of V sections 40103 and 44701 because it Velocity additional flight applications and NAS—National Airspace System services. prescribes aircraft performance NBAA—National Business Aviation requirements to meet advanced DATES: Association This final rule is effective on surveillance needs to accommodate August 11, 2010. The compliance date NextGen—Next Generation Air increases in NAS operations. As more Transportation System for this final rule is January 1, 2020. aircraft operate within the U.S. airspace, NIC—Navigation Integrity Category Affected parties, however, do not have improved surveillance performance is NM—Nautical Mile to comply with the information necessary to continue to balance the NPRM—Notice of Proposed Rulemaking collection requirement in § 91.225 until growth in air transportation with the NTSB—National Transportation Safety Board the FAA publishes in the Federal agency’s mandate for a safe and efficient OPD—Optimized Profile Descent OMB—Office of Management and Budget Register the control number assigned by air transportation system. the Office of Management and Budget RAA—Regional Airline Association (OMB) for this information collection Guide to Terms and Acronyms RAIM—Receiver Autonomous Integrity requirement. Publication of the control Frequently Used in This Document Monitoring RFA—Regulatory Flexibility Act number notifies the public that OMB ACI–NA—Airports Council International- RNP—Required Navigation Performance has approved this information SANDIA—Sandia National Laboratories collection requirement under the North America ACSS—Aviation Communication and SARPs—Standards and Recommended Paperwork Reduction Act of 1995. The Surveillance Systems Practices incorporation by reference of certain ADIZ—Air Defense Identification Zone SCAP—Security Certification and publications listed in the rule is ADS–B—Automatic Dependent Surveillance- Accreditation Procedures approved by the Director of the Federal Broadcast SDA—System Design Assurance Register as of August 11, 2010. ADS–C—Automatic Dependent Surveillance- SIL—Source Integrity Level Contract SSR—Secondary Surveillance Radar FOR FURTHER INFORMATION CONTACT: For ADS–R—Automatic Dependent Surveillance- TCAS—Traffic Alert and Collision and technical questions concerning this final Rebroadcast Avoidance System rule, contact Vincent Capezzuto, AGL—Above Ground Level TIS–B—Traffic Information Service- Surveillance and Broadcast Services, AIA—Aerospace Industries Association of Broadcast AJE–6, Air Traffic Organization, Federal America TMA—Traffic Management Advisor

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TSO—Technical Standard Order 7. For Aircraft With an Operable Traffic C. Regulatory Impact Analysis, Regulatory UAT—Universal Access Transceiver Alert and Collision Avoidance System II Flexibility Determination, International UPS—United Parcel Service or Airborne Collision Avoidance System, Trade Impact Analysis, and Unfunded URET—User Request Evaluation Tool Indication If a Resolution Advisory Is in Mandates Assessment VFR—Visual Flight Rules Progress VI. Executive Order 13132, Federalism WAAS—Wide Area Augmentation System 8. Indication of the Mode 3/A Transponder VII. Regulations Affecting Intrastate Aviation Code Specified by ATC (Requires in Alaska Table of Contents Flightcrew Entry) VIII. Environmental Analysis I. Background 9. Indication of the Aircraft’s Call Sign IX. Regulations That Significantly Affect A. Notice of Proposed Rulemaking That Is Submitted on the Flight Plan, or Energy Supply, Distribution, or Use B. ADS–B Aviation Rulemaking Committee the Aircraft’s Registration Number X. Availability of Rulemaking Documents (Aircraft Call Sign Requires Flight Crew C. Summary of the Final Rule I. Background 1. Airspace Entry) 2. Datalink Requirements 10. Indication if the Flight Crew Has While there is currently a drop in air 3. System Performance Requirements Identified an Emergency, Radio travel due to a general economic 4. Antenna Diversity and Transmit Power Communication Failure, or Unlawful downturn, delay and congestion Requirements Interference (Requires Flightcrew Entry) continue to build in the nation’s busiest 5. Latency of the ADS–B Out Message 11. Indication of the Aircraft’s ‘‘IDENT’’ to airports and the surrounding airspace. Elements ATC (Requires Flightcrew Entry) 6. Conforming Amendments and Editorial 12. Indication of the Emitter Category The FAA must not only address current Changes 13. Indication Whether an ADS–B in congestion, but also be poised to handle D. Differences Between the Proposed Rule Capability Is Installed future demand that will surely return as and The Final Rule 14. Indication of the Aircraft’s Geometric the nation’s economy improves. The E. Separation Standards Working Group Altitude FAA has been developing the Next II. Discussion of the Final Rule L. Ability To Turn Off ADS–B Out Generation Air Transportation System A. Airspace Transmissions (NextGen) for the purpose of changing 1. 2,500 Feet Above Ground Level M. Existing Equipment Requirements the way the National Airspace System Exclusion in Class E Airspace 1. Transponder Requirement 2. Airspace for Which ADS–B is Required (NAS) operates. NextGen will allow the 2. Emergency Locator Transmitter NAS to expand to meet future demand 3. Requests for Deviations From ADS–B Requirement Out Requirements N. Program Implementation and support the economic viability of B. Dual-Link Strategy 1. Timeline the system. In addition, NextGen will 1. Altitude To Require the 1090 MHz ES 2. Financial and Operational Incentives improve safety and support Datalink 3. Decommissioning Traffic Information environmental initiatives such as 2. Automatic Dependent Surveillance- Service-Broadcast (TIS–B) reducing congestion, noise, emissions Rebroadcast (ADS–R) O. Safety and fuel consumption through increased 3. 1090 MHz Frequency Congestion P. Efficiency energy efficiency. for more information C. Performance Requirements—System 1. Improved Position Reporting 1. Performance Requirements Tailored to on NextGen, go to http://www.faa.gov/ 2. Optimized Profile Descents (OPDs) about/initiatives/nextgen/. Operator, Airspace, or Procedure 3. Reduced Aircraft Separation 2. Navigation Accuracy Category for 4. Expanded Surveillance Coverage As part of NextGen development, the Position (NACP) Q. ADS–B In FAA has determined that it is essential 3. Navigation Accuracy Category for R. ADS–B In Applications to move from ground-based surveillance Velocity (NAC ) V 1. Surface Situational Awareness With and navigation to more dynamic and 4. Navigation Integrity Category (NIC) Indications and Alerting accurate airborne-based systems and 5. Surveillance Integrity Level 2. In-Trail Procedures 6. Source Integrity Level (SIL) and System procedures if the agency is to enhance Design Assurance (SDA) 3. Interval Management capacity, reduce delay, and improve 7. Secondary Position Sources 4. Airport Surface Situational Awareness environmental performance. Automatic D. Performance Requirements—Antenna and Final Approach Runway Occupancy Dependent Surveillance–Broadcast Awareness Diversity (ADS–B) equipment is an advanced E. Performance Requirements—Transmit S. International Harmonization T. Backup ATC Surveillance surveillance technology that combines Power an aircraft’s positioning source, aircraft F. Performance Requirements—Total and U. Privacy Uncompensated Latency V. Security avionics, and a ground infrastructure to G. Performance Requirements—Time To W. Alternatives to ADS–B create an accurate surveillance interface Indicate Accuracy and Integrity Changes X. ADS–B Equipment Scheduled between aircraft and ATC. It is a key H. Performance Requirements— Maintenance component of NextGen that will move Availability Y. Specific Design Parameters air traffic control (ATC) from a radar- 1. Preflight Determination of Availability Z. Economic Issues based system to a satellite-derived 2. System Availability 1. ADS–B Out Equipage Cost 2. FAA Cost Savings With ADS–B Out aircraft location system. ADS–B is a I. Performance Requirements—Continuity performance-based surveillance J. Performance Requirements—Traffic Compared To Radar Information Service—Broadcast Integrity 3. Business Case for ADS–B Out and In technology that is more precise than (TIS–B) 4. Improved En Route Conflict Probe radar. ADS–B is expected to provide air K. Broadcast Message Elements Benefit Performance traffic controllers and pilots with more 1. NACP/NACV/NIC/SDA/SIL 5. Capacity Enhancements, Airspace accurate information to help keep 2. Receiving ATC Services Efficiency, and Fuel Savings Benefits aircraft safely separated in the sky and 3. Length and Width of the Aircraft 6. Deriving Benefits From Capstone on runways. The technology combines a 4. Indication of the Aircraft’s Barometric Implementation in Alaska positioning capability, aircraft avionics, 7. Regional Airline Benefits Pressure Altitude and ground infrastructure to enable 5. Indication of the Aircraft’s Velocity 8. General Aviation: High Equipage Costs 6. Indication if Traffic Alert and Collision With Little Benefit more accurate transmission of Avoidance System II or Airborne AA. Revisions to Other Regulations information from aircraft to ATC. Collision Avoidance System is Installed III. Regulatory Notices and Analyses ADS–B consists of two different and Operating in a Mode That May A. Paperwork Reduction Act services: ADS–B Out and ADS–B In. Generate Resolution Advisory Alerts B. International Compatibility ADS–B Out, which is the subject of this

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rulemaking, periodically broadcasts technologies for aircraft in the air traffic receive public comments on the ARC information about each aircraft, such as control system. Since 2006, Congress recommendations only. This comment identification, current position, altitude, has appropriated over $500 million to period closed November 3, 2008, with and velocity, through an onboard the FAA for implementing ADS–B and the FAA receiving approximately 50 transmitter. ADS–B Out provides air developing air-to-air capabilities. The comments to the ARC’s traffic controllers with real-time FAA remains committed to recommendations. Commenters position information that is, in most implementing NextGen and adopts this included air carriers, manufacturers, cases, more accurate than the final rule, with some modifications, as associations, and individuals. information available with current discussed in further detail below. radar-based systems. With more C. Summary of the Final Rule A. Notice of Proposed Rulemaking accurate information, ATC will be able This final rule will add equipage to position and separate aircraft with The FAA published the NPRM for requirements and performance improved precision and timing. ADS–B Out in the Federal Register on standards for ADS–B Out avionics. ADS–B In refers to an appropriately October 5, 2007 (72 FR 56947). The ADS–B Out broadcasts information equipped aircraft’s ability to receive and comment period for the NPRM was about an aircraft through an onboard display another aircraft’s ADS–B Out scheduled to close on January 3, 2008. transmitter to a ground receiver. Use of information as well as the ADS–B In In response to several commenters, the ADS–B Out will move air traffic control services provided by ground systems, FAA subsequently extended the from a radar-based system to a satellite- including Automatic Dependent comment period to March 3, 2008 (72 derived aircraft location system. As Surveillance–Rebroadcast (ADS–R),1 FR 64966, Nov. 19, 2007). The FAA discussed more fully in the sections of Traffic Information Service–Broadcast received approximately 190 comments this preamble describing equipage (TIS–B),2 and, if so equipped, Flight to the docket on the NPRM. requirements and performance Information Service–Broadcast (FIS–B).3 Commenters included air carriers, standards, operators will have two When displayed in the cockpit, this manufacturers, associations, options for equipage under this rule— information greatly improves the pilot’s Government agencies, and individuals. the 1090 megahertz (MHz) extended situational awareness in aircraft not B. ADS–B Aviation Rulemaking squitter 6 (ES) broadcast link or the equipped with a traffic alert and Committee Universal Access Transceiver (UAT) collision avoidance system (TCAS)/ broadcast link. 7 Generally, this As part of the rulemaking effort, the airborne collision avoidance system equipment will be required for aircraft FAA chartered an aviation rulemaking (ACAS). Benefits from universal operating in Classes A, B, and C committee (ARC) on July 15, 2007, to equipage for ADS–B In currently are not airspace, certain Class E airspace, and provide a forum for the U.S. aviation substantiated, and standards for ADS–B other specified airspace. See section C.1. community to make recommendations In air-to-air applications are still in their ‘‘Airspace’’ below for additional details. on presenting and structuring an ADS– infancy. Thus it is premature to require The NPRM proposed performance B Out mandate, and to consider operators to equip with ADS–B In at this requirements for ADS–B Out to be used additional actions that may be necessary time. This rule, however, imposes for ATC surveillance. In addition, to implement its recommendations. The certain requirements that will support several aspects of the proposal would be ADS–B ARC submitted its first report, some ADS–B In applications. necessary for future ADS–B In ‘‘Optimizing the Benefits of Automatic As noted in the preamble of the applications. The comments to the Dependent Surveillance–Broadcast,’’ 4 Notice of Proposed Rulemaking (NPRM) NPRM and the ARC recommendations associated with this rule, published in on October 3, 2007. The FAA also tasked the ARC to make raised significant concerns about the the Federal Register on October 5, 2007 operational needs and costs of the (72 FR 56947), Congress enacted the specific recommendations concerning the proposed rule based on the proposed performance requirements, as ‘‘Century of Aviation Reauthorization well as the proposed antenna diversity Act’’ in 2003. That Act mandated that comments submitted to the docket. The ARC submitted its second report, requirement. the Secretary of Transportation establish The FAA specifically proposed higher ‘‘Recommendations on Federal Aviation a Joint Planning and Development ADS–B Out and antenna diversity Administration Notice No. 7–15, Office (JPDO) to manage NextGen- requirements than what is needed for Automatic Dependent Surveillance- related work, including coordinating the ATC surveillance to enable certain Broadcast (ADS–B) Out Performance development and use of new ADS–B In applications. As discussed in Requirements to Support Air Traffic further detail in this document, the FAA 1 Control (ATC) Service; Notice of ADS–R collects traffic information from each has reconsidered these elements in view broadcast link and rebroadcasts it to ADS–B In- Proposed Rulemaking,’’ 5 to the FAA on of the comments and has changed the equipped operators on the other broadcast link. September 26, 2008. This is further explained in section B.2., Automatic To give the public an opportunity to implementation plan for ADS–B. Dependent Surveillance-Rebroadcast. The FAA has concluded that this rule 2 comment on the recommendations TIS–B uses primary and secondary surveillance will require only the performance radars and multilateration systems to provide received from the ARC, the FAA proximate traffic situational awareness, including published a notice in the Federal requirements necessary for ADS–B Out. position reports from aircraft not equipped with While certain requirements adopted in ADS–B. TIS–B data may not provide as much Register on October 2, 2008 (73 FR 57270), reopening the comment period this rule will support some ADS–B In information as could be received directly from an applications, the agency is not adopting aircraft’s ADS–B Out broadcast, because of the of the ADS–B Out NPRM docket for an required data processing. The TIS–B signal is an additional 30 days. The purpose of advisory service that is not designed for aircraft 6 An extended squitter is a long message that surveillance or separation, and cannot be used for reopening the comment period was to Mode S Transponders transmit automatically, either purpose. without needing to be interrogated by radar, to 3 With FIS–B, aircraft equipped with 978 4 A copy of this report is available from the Web announce the own-ship aircraft’s presence to nearby megahertz (MHz) Universal Access Transceiver site http://www.regulations.gov. To find the report, ADS–B equipped aircraft or ground based Air (UAT) ADS–B In avionics can receive weather enter FAA–2007–29305–0009.1 in the search field. Traffic Control. information, notices to airmen, temporary flight 5 A copy of this report is available from the Web 7 The 1090 MHz ES broadcast link uses the 1090 restrictions, and other relevant flight information, at site http://www.regulations.gov. To find the report, MHz frequency. The UAT broadcast link uses the no additional cost. enter FAA–2007–29305–0221.1 in the search field 978 MHz frequency.

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the higher performance standards that surface up to 10,000 feet MSL. In MHz ES broadcast link), and TSO– would enable all of the initial ADS–B In addition, the rule requires that aircraft C154b 11 (for operators using the UAT applications. The agency is mindful, meet ADS–B Out performance broadcast link) as the baseline and operators are advised, that in requirements to operate in Class E requirements for ADS–B Out accepting the commenters’ and the airspace over the Gulf of Mexico at and equipment. TSO–C166a adopted the ARC’s positions regarding antenna above 3,000 feet MSL within 12 NM of standards in RTCA, Inc.12 (RTCA) DO– diversity and position source accuracy, the coastline of the United States. 260A.13 TSO–C154b adopted the compliance with this rule alone may not standards in RTCA DO–282A.14 2. Datalink Requirements enable operators to take full advantage After the NPRM was published, the of certain ADS–B In applications. ADS–B requires a broadcast link for ADS–B ARC issued numerous Operators may voluntarily choose aircraft surveillance and to support recommendations in response to public equipment that meets the higher ADS–B In applications. Operators have comments on the TSOs referenced in performance standards in order to two options for equipage under this the proposal. Based on the ARC enable the use of these applications. rule— the 1090 MHz ES broadcast link recommendations and broad industry The following table provides an or the UAT broadcast link. The 1090 input, RTCA revised DO–260A to overview of the costs and benefits of MHz ES broadcast link is the become DO–260B 15 and revised DO– this final rule. internationally agreed upon link for 282A to become DO–282B.16 The new ADS–B and is intended to support RTCA revisions include: (1) An SUMMARY OF COSTS AND BENEFITS ADS–B In applications used by air allowance for transmitting a NIC of 7 on carriers and other high-performance the surface, (2) procedures for correctly 3% Discount Rate: aircraft. The 1090 MHz ES broadcast setting the NACV, (3) clarifying the Low Costs ...... $2.74 link does not support FIS–B (weather latency requirements, (4) removing the High Benefits ...... 5.03 and related flight information) because vertical component of NACP, NACV, the bandwidth limitations of this link NIC, and SIL, (5) revising the definition Net Benefits-High Benefit/ cannot transmit the large message of SIL to correspond to the definition in Low Cost ...... 2.29 structures required by FIS–B. The UAT the FAA NPRM, (6) clarifying the broadcast link supports ADS–B In definition of SIL by dividing it into SIL High Costs ...... 5.47 applications 9 and FIS–B, which are Low Benefits ...... 3.98 and SDA message elements, (7) creating important for the general aviation (GA) a medium power single antenna class, Net Benefits-Low Benefits/ community. and (8) redefining the bit for the ‘‘ADS– High Costs ...... (1.49) This final rule requires aircraft flying B In capability installed’’ message at and above 18,000 feet MSL (flight element.17 DO–260B and DO–282B are 7% Discount Rate: level (FL) 180) (Class A airspace) to more mature standards and fully have ADS–B Out performance Low Costs ...... 2.15 support domestic and international High Benefits ...... 2.74 capabilities using the 1090 MHz ES ADS–B air traffic control surveillance. broadcast link. This rule also specifies The updated standards do not increase Net Benefits-High Benefit/ that aircraft flying in the designated performance requirements. Low Cost ...... 0.59 airspace below 18,000 feet MSL may use The FAA updated the TSOs in either the 1090 MHz ES or UAT accordance with these new RTCA High Costs ...... 4.11 broadcast link. standards. In addition, the FAA has Low Benefits ...... 2.09 Net Benefits-Low Benefits/ 3. System Performance Requirements Operating on the Radio Frequency of 1090 High Costs ...... (2.02) When activated, ADS–B Out Megahertz (MHz). continuously transmits aircraft 11 Universal Access Transceiver (UAT) Automatic Dependent Surveillance—Broadcast (ADS–B) 1. Airspace information through the 1090 MHz ES or UAT broadcast link. The accuracy Equipment Operating on the Frequency of 978 This final rule prescribes ADS–B Out MHz. and integrity of the position information 12 RTCA, Inc. is a not-for-profit corporation performance requirements for all aircraft transmitted by ADS–B avionics are formed to advance the art and science of aviation operating in Class A, B, and C airspace represented by the navigation accuracy and aviation electronic systems for the benefit of the public. The organization functions as a Federal within the NAS; above the ceiling and category for position (NACP), the within the lateral boundaries of a Class Advisory Committee and develops consensus-based navigation accuracy category for recommendations on contemporary aviation issues. B or Class C airspace area up to 10,000 velocity (NACV), the navigation integrity The organization’s recommendations are often used feet mean sea level (MSL); and Class E category (NIC), the system design as the basis for government and private sector airspace areas at or above 10,000 feet assurance (SDA), and the source decisions as well as the foundation for many FAA TSOs. For more information, see http:// MSL over the 48 contiguous United integrity level (SIL). States and the District of Columbia, www.rtca.org. In the proposed rule, the FAA 13 Minimum Operational Performance Standards excluding the airspace at and below referenced the accuracy and integrity for 1090 MHz Extended Squitter Automatic 2,500 feet above the surface. requirements to the appropriate NACP, Dependent Surveillance—Broadcast (ADS–B) and Traffic Information Services—Broadcast (TIS–B). The rule also requires that aircraft NACV, NIC, and SIL values defined in meet these performance requirements in 14 Minimum Operational Performance Standards Technical Standard Order (TSO)– for Universal Access Transceiver (UAT) Automatic the airspace within 30 nautical miles C166a 10 (for operators using the 1090 Dependent Surveillance—Broadcast. 8 (NM) of certain identified airports that 15 Minimum Operational Performance Standards are among the nation’s busiest (based on 9 These applications include enhanced visual for 1090 MHz Extended Squitter Automatic annual passenger enplanements, annual acquisition, conflict detection, enhanced visual Dependent Surveillance–Broadcast (ADS–B) and airport operations count, and approach, Airport Surface Situational Awareness Traffic Information Services–Broadcast (TIS–B). (ASSA), and Final Approach Runway Occupancy 16 Minimum Operational Performance Standards operational complexity) from the Awareness (FAROA). for Universal Access Transceiver Automatic 10 Extended Squitter Automatic Dependent Dependent Surveillance–Broadcast. 8 These airports are listed in appendix D to part Surveillance–Broadcast (ADS–B) and Traffic 17 A number of these items address issues with 91. Information Service—Broadcast (TIS–B) Equipment the current TSOs.

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decided that it is necessary to require FAA also added additional language in the performance requirements for this the new standards contained in TSO– §§ 91.225 and 91.227 stating that rule, if in the future, RTCA revises 18 C166b (1090 MHz ES) and TSO– equipment with an approved deviation NACP, NACV, and NIC. 19 C154c (UAT) as the minimum under § 21.618 also meet the Table 1 summarizes the NACP, NACV, performance standards in this final requirements of the rule. NIC, and SIL values proposed in the rule.20 The updated standards In addition, this final rule specifies NPRM and their equivalent incorporate multiple changes that the performance requirements for measurements, as noted in DO–260A address public comments and the ARC’s accuracy and integrity (NACP, NACV, and DO–282A. Table 2 summarizes recommendations on the proposal. On and NIC) in meters and nautical miles NACP, NACV, NIC, SDA, and SIL values September 11, 2009, the FAA rather than referencing the numerical as defined in DO–260B and DO–282B. announced in the Federal Register the values used in DO–260B, DO–282B, or These two tables contain only the values availability of draft TSO–C166b and the NPRM. This change translates the applicable to the NPRM and the final TSO–C154c for comment (74 FR 46831). values but does not alter the actual rule. See DO–260B paragraph 2.2.3 or The FAA issued final versions of the performance requirements. The FAA DO–282B paragraph 2.2.4 for complete above TSOs on December 2, 2009. The wants to avoid any misinterpretations of information on all values.

18 Extended Squitter Automatic Dependent 19 Universal Access Transceiver (UAT) Automatic 20 Operators with equipment installed that meets Surveillance–Broadcast (ADS–B) and Traffic Dependent Surveillance–Broadcast (ADS–B) a later version of TSO–C166b or TSO–C154c, as Information Service–Broadcast (TIS–B) Equipment Equipment Operating on the Frequency of 978 applicable, are in compliance with this rule. Operating on the Radio Frequency of 1090 MHz. Megahertz (MHz).

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In this final rule, the NACP must be complies with the requirements in the required to support ATC surveillance. less than 0.05 NM. The NACV and NIC final rule. Operators must note that this rule does not remove or modify any existing values are adopted as proposed. The 4. Antenna Diversity and Transmit antenna diversity requirements for NACV must be less than 10 meters per Power Requirements second. The NIC must be less than 0.2 transponders or TCAS/ACAS. NM. The SIL parameter from the NPRM The aircraft antenna is a major Aircraft must transmit signals at a has been divided into two separate contributor to ADS–B system link certain level of power to ensure ground parameters and is discussed in detail performance and an important part of stations and ADS–B In-equipped aircraft later in this document.21 In this final the overall ADS–B Out system. In the and vehicles can receive the transmitted rule, the SDA parameter must be less NPRM, the FAA proposed an antenna signals. As proposed, the final rule ¥ diversity requirement that would than or equal to 1x10 5 per hour, requires UAT systems to broadcast at a support ADS–B In applications, such as which is equivalent to an SDA of 2, and 16-watt minimum-transmit power, and Airport Surface Situational Awareness the SIL parameter must be less than or 1090 MHz ES systems to broadcast at a (ASSA) and Final Approach Runway equal to 1x10 ¥7 per hour or per sample, 125-watt minimum-transmit power. Occupancy Awareness (FAROA). which is equivalent to a SIL of 3. Global The FAA has reconsidered the need 5. Latency of the ADS–B Out Message navigation satellite system (GNSS) for antenna diversity in view of the Elements 22 systems will set their SILs based on a comments submitted. The agency has When using an ADS–B system, ¥7 1x10 per-hour probability. Operators determined that a single bottom- aircraft receive information from a must meet these performance mounted antenna is the minimum position source and process it with requirements to operate in the airspace requirement for ATC surveillance. onboard avionics. The aircraft’s ADS–B where ADS–B is required. Any ADS–B Furthermore, the analysis of ASSA and system then transmits position and position source that meets the specified FAROA does not conclude that antenna other information to the ground stations performance standards is acceptable and diversity is required for these through antenna(s) using either the UAT applications. As discussed later, the or 1090 MHz ES broadcast link. 21 In the NPRM, SIL was defined as surveillance FAA decision to require a NACP less Generally, latency is the time lag integrity level and represented the maximum than 0.05 NM signifies that certain between the time that position probability of exceeding the NIC containment radius and a maximum probability of a failure ADS–B In applications, including ASSA measurements are taken to determine causing false or misleading data to be transmitted. and FAROA, will not be fully the aircraft’s position, and the time that In this final rule, SIL is referred to as source supported. the position information is transmitted integrity level and defines the probability of If future analysis indicates that by the aircraft’s ADS–B transmitter. The exceeding the NIC containment radius; SDA represents the probability of transmitting false or antenna diversity is required for ASSA latency requirements in this final rule, misleading position information. and FAROA, a higher NACP than that although different from the proposal, 22 Global navigation satellite system (GNSS) is a required in this rule also would be represent a more appropriate way to generic term for a satellite navigation system, such necessary to support these applications. address latency. The proposal created as the Global Positioning System (GPS), that provides autonomous worldwide geo-spatial The FAA does not adopt antenna ambiguities that are addressed in these positioning and may include local or regional diversity as a requirement for ADS–B modifications and are supported by the augmentations. Out under this rule because it is not commenters. Under this rule, total

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latency cannot exceed 2.0 seconds. inadvertently left out the proposed Lastly, the proposed regulatory text Within those 2.0 seconds, conforming amendments to §§ 91.130, has been moved from Appendix H to uncompensated latency cannot exceed 91.131, and 91.135, which address Class new § 91.227. 0.6 seconds. Total and uncompensated A, B, and C airspace. This rule amends All substantive changes to this rule latency are explained in further detail in these sections to include the ADS–B Out are fully discussed in Section II, section II F. ‘‘Performance performance requirements for the Discussion of the Final Rule. Requirements—Total And appropriate airspace. D. Differences Between the Proposed Uncompensated Latency.’’ In addition, the regulatory text for Rule and the Final Rule 6. Conforming Amendments and § 91.225 has been reorganized from the Table 3 summarizes the substantive Editorial Changes proposed rule language. The changes between the proposed rule and Section 91.225 requires ADS–B Out restructuring of the text should make this final rule. Editorial changes and for operations in Class A, B, and C this section clearer and more reader- clarifications are explained elsewhere in airspace. In the NPRM, the FAA friendly. this preamble.

TABLE 3.— SUBSTANTIVE DIFFERENCES BETWEEN THE PROPOSED RULE AND THE FINAL RULE

Issue area The NPRM— The final rule—

Technical Standard Order .... Proposed performance standards as defined in TSO– Requires performance standards as defined in TSO– C166a (1090 MHz ES) or TSO–C154b (UAT). C166b (1090 MHz ES) or TSO–C154c (UAT). Airspace ...... Proposed requiring all aircraft above FL 240 to transmit Requires all aircraft in Class A airspace (FL 180 and on the 1090 MHz ES broadcast link. above) to transmit on the 1090 MHz ES broadcast link. Proposed ADS–B performance standards for operations Requires ADS–B performance standards for operations in all Class E airspace at and above 10,000 feet MSL. in Class E airspace at and above 10,000 feet MSL, excluding the airspace at and below 2,500 feet AGL. NACP ...... Proposed a NACP ≥ 9, which provides navigation accu- Requires NACP < 0.05 NM. racy < 30 meters. (NACP ≥ 8) NIC ...... Proposed changes in NIC be broadcast within 10 sec- Requires changes in NIC be broadcast within 12 sec- onds. onds. SIL ...... Proposed a SIL of 2 or 3 ...... Requires an SDA of 2. Requires a SIL of 3. Antenna Diversity ...... Proposed antenna diversity in all airspace specified in Does not require antenna diversity. the rule. Total Latency ...... Proposed latency in the position source < 0.5 seconds Requires uncompensated latency ≤ 0.6 seconds and and latency in the ADS–B source < 1 second. maximum total latency ≤ 2.0 seconds. Message Elements ...... Proposed a broadcast message element for ‘‘receiving Does not require a broadcast message element for ‘‘re- ATC services’’. ceiving ATC services.’’ An ability to turn off ADS–B Proposed that the pilot be able to turn off ADS–B trans- Does not require the pilot be able to disable or turn off Out. missions if directed by ATC. ADS–B transmissions.

E. Separation Standards Working Group dedicated separation standards flight over the 48 contiguous states and the tests for each key-site with fully District of Columbia. The FAA established an internal functional end-to-end systems. Also Several commenters, including the Surveillance and Broadcast Systems included is a test period for each system DOD and the Experimental Aircraft Separation Standards Working group where performance data is collected on Association (EAA), stated that the (SSWG) to develop methodologies and aircraft operating in the surveillance proposed ceiling of 10,000 feet MSL for define metrics as appropriate that service volume. aircraft without ADS–B would be a evaluate the end-to-end performance of The SSWG analyses and evaluations major hardship and safety issue for ADS–B and wide area multilateration aircraft operators flying in mountainous surveillance systems. These evaluations are the basis for most of the performance requirements specified in this rule.23 terrain. Commenters and the ARC include investigating the integration of suggested that the final rule exclude these technologies in conjunction with II. Discussion of the Final Rule Class E airspace at and below 2,500 feet legacy surveillance technologies, that is, above ground level (AGL), similar to the separation between target positions that Below is a more detailed discussion of exclusion in § 91.215, ATC Transponder are derived from ADS–B, radar, and the final rule relative to the comments and Altitude Reporting Equipment and wide area multilateration on ATC received on the proposal: Use. displays. A. Airspace The FAA recognizes the benefit of This SSWG was tasked to perform: (1) excluding this airspace in the rule, Analyses of performance using system 1. 2,500 Feet Above Ground Level particularly for visual flight rules (VFR) models and simulations, including the Exclusion in Class E Airspace pilots flying in mountainous areas. This identification of key performance The NPRM proposed that aircraft modification addresses airspace that is drivers and the development of test meet ADS–B Out performance not affected by the agency’s efforts to scenarios; (2) preliminary evaluations requirements to operate in Class E maximize NAS efficiency and capacity. with prototype system components to airspace at and above 10,000 feet MSL Excluding this airspace from the rule enable verification and validation of the minimizes any unnecessary financial models and as early evidence of system 23 The SSWG findings are available from the Web and operational burdens being placed performance; and (3) analyses of test site http://www.regulations.gov. The docket number on aircraft operators who fly in results, operational testing and for this rulemaking is FAA –2007–29305. mountainous areas that encroach on

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Class E airspace at and above 10,000 feet Identification Zones (ADIZ) 24 and arrivals and departures. Therefore, MSL, but choose not to equip for the Offshore Control Area Extensions. Boeing recommended that the airborne ADS–B Out performance standards in This rule applies to aircraft operating surveillance functions should provide this rule. Consequently, the final rule within U.S. airspace, which extends 12 benefits at all altitudes and on the does not require ADS–B performance NM from the U.S. coast. (The airspace ground. Ultimately, Boeing commented standards for operations 2,500 feet AGL also includes the Washington, DC, that a single 1090 MHz ES broadcast and below in Class E airspace at and Special Flight Rules Area (SFRA), link would advance future ADS–B In above 10,000 feet MSL. referred to as an ‘‘ADIZ’’ prior to 2009.) applications at low altitudes. Most of the airspace in the ADIZ falls In mandating ADS–B, the FAA is 2. Airspace for Which ADS–B Is outside the 12 NM boundaries. mindful that some members of the Required international air transport community 3. Requests for Deviations From ADS–B and the GA community have already The NPRM proposed requiring ADS– Out Requirements B performance standards for operations purchased ADS–B Out equipment, in most classes of airspace where This rule requires operators to which use either the 1090 MHz ES or operators currently are required to carry broadcast ADS–B Out information when UAT broadcast link. The FAA finds that a transponder. operating in specified airspace. If an a dual-link system is necessary for the Numerous commenters recommended aircraft is not capable of meeting the United States to meet the operational that the FAA limit ADS–B performance performance requirements, the operator needs of all NAS operators. Moreover, if requirements to aircraft operating in may request a deviation from the ATC the FAA were to require one segment of Class A airspace only, or Class A and B facility responsible for that airspace. the aviation community to equip to airspace only. Several commenters However, as noted in the NPRM, ATC meet the needs of another segment of questioned the proposed ADS–B authorizations may contain conditions the community, this would present performance requirements in Class E necessary to provide the appropriate additional costs for some operators to airspace above 10,000 feet MSL. Many level of safety for all operators in the equip. of these commenters made varying airspace. ATC may not be able to grant authorizations in all cases for a variety 1. Altitude To Require the 1090 MHz ES requests to the FAA concerning the Datalink proposed altitude for which ADS–B Out of reasons, including workload, runway Under the proposal, aircraft operating would be required, including 12,000 configurations, air traffic flows, and weather conditions. above FL 240 would be required to use feet MSL, 15,000 feet MSL, FL 180, and the 1090 MHz ES broadcast link. FL 250. The United States Parachute B. Dual-Link Strategy Operators using only the UAT broadcast Association noted that skydiving The NPRM proposed a dual-link link would be limited to operations operations are typically conducted strategy for ADS–B Out broadcasts. below FL 240. above 10,000 feet MSL and sometimes Under the proposal, aircraft operating The Air Line Pilots Association, conducted in Class A, B, and C airspace. above FL 240 would be required to use International (ALPA) recommended that ADS–B cannot be used for ATC the 1090 MHz ES broadcast link. the FAA require operators to use 1090 surveillance if all aircraft are not Aircraft operating below FL 240 and in MHz ES above 18,000 feet MSL to be appropriately equipped. Moreover, it is airspace where ADS–B Out performance consistent with the Class A airspace unreasonable to set up a regulatory requirements were proposed could use lower boundary (rather than introduce a framework and performance standards either the 1090 MHz ES or UAT new subclassification of established that are based on using two primary broadcast link. airspace). In addition, several GA systems for surveillance; nor is it Many commenters suggested that a commenters requested limiting ADS–B feasible to fund and maintain two such single-link system would reduce performance requirements to only Class systems. The airspace requirements operational complexity. The A airspace. The EAA and some specified in this rule for ADS–B Out commenters noted that the installation individuals stated that UAT would work meet ATC surveillance needs. and maintenance costs of a dual-link just as well as 1090 MHz ES above FL Class B and C airspace have the system exceed those of a single-link 240 and that aircraft should be highest volume of air carrier and GA system. Some of the commenters permitted to use exclusively UAT for traffic. They also experience the most proposed a single-link solution but operations above FL 240. complex transitions of aircraft from the disagreed over which link should be The final rule specifies FL 180 (the en route environment to the terminal chosen. Commenters supporting a lower boundary of Class A airspace) as area. With the intricate nature of the single-link UAT system noted that 1090 the ceiling for operating an aircraft airspace, current regulations dictate MHz ES does not support FIS–B and is equipped only with UAT. Using 1090 more stringent operational requirements at risk for frequency congestion in a MHz ES at or above FL 180 provides a to operate within Class B and C airspace future air traffic management clear operational boundary for areas. environment. Commenters supporting a controllers and pilots, and does not In addition, ATC must have single-link 1090 MHz ES system create conditions of mixed equipage for surveillance data for all aircraft explained that UAT is not existing or future applications. The FAA operating in these areas to ensure internationally interoperable and recognizes that this modification will appropriate situational awareness and to opposed a system that requires affect certain operators that want to maximize the use of the NAS. ADS–B international operators to equip with operate above FL 180 and equip only Out will enhance surveillance in both links. with UAT. However, the agency controlled airspace areas where Boeing noted that most of the NAS concludes that requiring 1090 MHz ES secondary surveillance radar (SSR) system delays are associated with performance standards for operations in currently exists. all of Class A airspace is not only One commenter stated that the FAA 24 An Air Defense Identification Zone (ADIZ) is reasonable for surveillance, but also should expand the airspace in which an area of airspace over land or water in which the ready identification, location, and control of civil establishes a baseline for ADS–B In. ADS–B is required and specifically aircraft is required in the interest of national The requirement to broadcast 1090 recommended including Air Defense security. MHz ES at and above FL 180 does not

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preclude UAT reception of FIS–B The FAA is deploying ADS–R in all service. In this case, the pilot needs to services up to FL 240 for aircraft with areas where ADS–B ATC surveillance maintain separation in the same manner a dual-link reception capability. exists.26 ADS–R collects traffic done today, which is relying on visual information broadcast on the 978 MHz scanning and directions from ATC. The 2. Automatic Dependent Surveillance- UAT broadcast link and rebroadcasts FAA will ensure that the dual-link Rebroadcast (ADS–R) the information to 1090 MHz ES users. strategy does not impact safety as future Under a dual-link strategy, the FAA Similarly, ADS–R collects traffic applications are developed. will use ADS–R to allow ADS–B In- information provided on the 1090 MHz 3. 1090 MHz Frequency Congestion equipped aircraft using one type of ES broadcast link and rebroadcasts the broadcast link to receive messages about information to UAT users. ADS–R Boeing, Federal Express (FedEx), and aircraft transmitting on the other permits aircraft equipped with either IATA suggested that the FAA assess broadcast link. 1090 MHz ES or UAT to take advantage future 1090 MHz frequency congestion. Various commenters, including the of ADS–B In applications. The ARC supported the dual-link Air Transport Association of America, The FAA disagrees with the strategy, but recommended that the FAA Inc. (ATA), Airservices Australia, the comments suggesting that ADS–R study the necessary mitigations of 1090 Australia Civil Aviation Safety introduces safety issues because of the MHz frequency congestion. The ARC Authority, the Aircraft Owners and added latencies attributed to ADS–R specifically recommended that these Pilots Association (AOPA), Boeing, processing. ATC automation systems do mitigations ensure 1090 MHz ES is British Airways, and the International not require or use ADS–R to provide interoperable with ACAS and SSR, Air Transport Association (IATA), surveillance. The added latency in the while providing sufficient air-to-air expressed concern about a dual-link rebroadcast of the original ADS–B range to support NextGen ADS–B In system. Some of these commenters message are measurably small and do applications. asserted that the need for ADS–R not degrade the reported NACP, NACV, Congestion on the 1090 MHz introduces additional system-wide and NIC values. The ARC agreed in its frequency is a risk shared by TCAS/ latency into the ADS–B system and report that the latency in ADS–R ACAS and SSR systems using the Mode poses a single point of failure for the processing does not degrade the S transponder. The FAA conducted a degradation or loss of surveillance data. reporting of the position quality study to assess 1090 MHz frequency parameters.27 Latency attributed to congestion in the future air traffic In their view, this could limit potential 29 separation and efficiency improvements ADS–R does not compromise the safety environment. The FAA is analyzing and affect the air-to-air surveillance of the initial ADS–B In applications. alternatives and will enact the necessary element of future ADS–B In The intended functions of ADS–B, as mitigations to reduce the 1090 MHz applications. In addition, some identified in the NPRM, are not frequency congestion risk for ADS–B, TCAS, and SSR, while enabling ranges commenters expressed concern about compromised by the latency introduced appropriate for many ADS–B In the additional risk of faults or failures with rebroadcasting the messages. applications through 2035. that could result from translating, However, future ADS–B In applications merging, and rebroadcasting data from necessarily may be limited becauseof C. Performance Requirements—System the latency associated with ADS–R.28 the 1090 and 978 MHz frequencies. While some commenters supported Some commenters, including Boeing, The FAA has a strong interest in providing the option for operators to the proposed performance requirements, contended that ADS–R may not have numerous organizations and individuals sufficient growth capability to support equip with UAT, so they may benefit from FIS–B service. In making the commented that the performance future ADS–B In air-to-air applications. requirements generally were too Such applications include merging and decision to use a dual-link strategy, the FAA acknowledged and weighed the stringent, unnecessary, and would entail spacing, self separation, or using ADS– fact that potential benefits of future an undue economic burden on B data to supplement or replace TCAS applications may not be fully realized operators. because of potential of latency or loop based on this decision. In situations delays. Rockwell-Collins stated that 1. Performance Requirements Tailored where an airport is not within the ADS–R should be able to support many to Operator, Airspace, or Procedure planned ADS–B coverage area, the ADS–B In air-to-air applications, airport will not have ADS–R coverage. The NPRM proposed specific including closely spaced parallel Consequently, an aircraft with ADS–B performance requirements for ADS–B approaches and enhanced visual In will not have the benefit of ADS–R, Out. Several commenters, including the approach. It recommended developing and ADS–B In will not provide Aerospace Industries Association of ADS–R to support more demanding awareness of aircraft that are America (AIA), Boeing, the DOD, EAA, aircraft surveillance applications Honeywell, Lockheed Martin, and the 25 broadcasting on a different broadcast (ASA). link. ARC, asked the FAA to tailor the ADS– Several commenters, including If an aircraft leaves the ADS–B B performance requirements based on AOPA, asserted that the dual-link coverage area, there will be an specific application requirements or system presents a safety hazard because indication to the pilot that the aircraft airspace. aircraft equipped with different links is no longer within range of ADS–R Lockheed Martin and the DOD noted cannot ‘‘see’’ each other on ADS–B In that some military aircraft may not meet the proposed equipage requirements displays in areas without ADS–R 26 The service coverage volume for ADS–B In coverage. The commenters suggested applications is explained in greater detail at and would need accommodations to providing ADS–R at all public airports http://www.adsb.gov. operate in ADS–B Out-designated where a mix of both systems will be 27 ADS–B ARC Task II Report to the FAA airspace. One commenter was Appendix N, ADS–R Latency and Reliability concerned that the DOD was exempt encountered. Expectations (September 26, 2008), available on the Web site, http:///www.regulations.gov, FAA–2007– from the proposed requirements. 25 ASA comprises a number of flight-deck-based 29305–0221.1. aircraft surveillance and separation assurance 28 To date, the requirements for using ADS–B for 29 A copy of this report is available from the Web capabilities that may directly provide flight crews advanced iterations of merging and spacing, and site http://www.regulations.gov. The docket number with surveillance information and alerts. self separation have yet to be defined. for this rulemaking is FAA–2007–29305.

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The FAA has determined that it is not greater than or equal to 8 for 99.9 (EUROCONTROL) commented that a operationally feasible to assign different percent of an hour. NACV of 1 is not sufficient for ATC performance requirements dependent Boeing commented that there is no services or advanced ADS–B In on the nature of the operation. It would need for vertical accuracy because applications. The ARC recommended not be effective to require both pilots neither ATC nor any of the initial ADS– that NACV should not be required. B In applications require it. The ARC and controllers to verify specific Different air navigation service recommended that the FAA not apply performance parameters before any providers may need different the vertical position accuracy given operation or change of airspace. performance requirements depending requirement associated with a NAC of Therefore, the FAA is specifying P on the airspace in which they 9 for surface operations. The ARC also minimum performance requirements for implement ADS–B separation services. all ADS–B Out-equipped aircraft to recommended that the FAA modify the definition of a NAC of 9 in DO–260A The FAA reviewed this requirement and operate in certain designated airspace. P concludes that a NAC is required for No special allowance is made in this and DO–282A. This modification would V remove the vertical accuracy separation services in the United States. rule to relieve the military from the The agency modeled and calculated the same performance requirements as the requirement if the aircraft is on the NAC requirements for aircraft civilian aviation community. The FAA surface. V separation, using assumptions unique to recognizes that the DOD and other The FAA reviewed these comments the U.S. environment. Based on this Federal agencies are NAS users, and and the necessary requirements for the analysis, the FAA determined that a need access to all areas of the NAS ADS–B Out and ADS–B In applications horizontal velocity accuracy of less than today and in the future. This rule that are contemplated today. A NACP of 10 meters per second, as proposed in provides procedures for an aircraft that less than 0.05 NM is required for ATC the NPRM, is required for ATC does not meet the ADS–B Out surveillance. A NACP of less than 30 surveillance within the NAS.33 performance requirements, i.e., to obtain meters is required only for ASSA and Therefore, this requirement is adopted an ATC authorized deviation to operate FAROA. Because surface surveillance as proposed. in the airspace for which ADS–B is benefits enabled by ADS–B will only be fully available where Airport Surface required. The FAA will collaborate with 4. Navigation Integrity Category (NIC) Detection Equipment, Model X (ASDE– the appropriate U.S. Government 31 departments or agencies (including but X) systems, and ADS–R and TIS–B are The NPRM proposed requiring a NIC not limited to DOD, and the Department in use, the FAA has reconsidered the greater than or equal to 7, which of Homeland Security) to develop universal requirement of a NACP of less provides navigation integrity of less Memorandums of Agreement to than 30 meters. than 0.2 NM. Boeing questioned the While the higher NAC would accommodate their National defense P necessity of this requirement. The ARC support a limited number of ADS–B In mission requirements while supporting recommended that the FAA adopt NIC applications, it could also increase the needs of all other NAS users. requirements based on airspace, with costs 32 to all operators required to meet minimum NIC values ranging from 0 to the ADS–B performance standards. 2. Navigation Accuracy Category for 7. Position (NACP) Therefore, this final rule reduces the position accuracy reporting requirement The FAA reviewed this requirement The NPRM proposed requiring a and adopts a NAC of less than 0.05 and determined that a NIC of less than NAC greater than or equal to 9. This is P P NM. This NAC requirement applies to 0.2 NM is necessary for ATC separation equivalent to horizontal position P all aircraft operating in the airspace services, particularly in the approach accuracy of less than 30 meters and identified in this rule. environment. Similar to the NACP, it is vertical position accuracy of less than In addition, the FAA considered the not practical to assign different NIC 45 meters. A NACP of less than 30 comments regarding the vertical values based on types of airspace. meters horizontal would support ATC accuracy component of NACP. As there Therefore, this rule requires a NIC of surveillance, ASSA, FAROA, and other are no ATC separation services less than 0.2 NM. future ADS–B In applications. requirements for vertical accuracy or Airbus, ATA, Aviation integrity, the FAA has removed the 5. Surveillance Integrity Level Communication and Surveillance vertical accuracy and integrity Systems (ACSS), Boeing, Rockwell- The FAA’s proposal for surveillance requirement from NACP, NACV, NIC, integrity level stated that the Collins, United Airlines, and United and SIL in TSO–C154c and TSO–C166b. Parcel Service (UPS) questioned the surveillance integrity level is based on necessity of a NACP greater than or 3. Navigation Accuracy Category for both the design assurance level of the equal to 9. The ARC recommended that Velocity (NACV) ADS–B Out avionics and the position source. Several commenters, including the FAA institute NACP requirements The NPRM proposed requiring a Rockwell-Collins, pointed out that the based on domains of airspace defined by NACV greater than or equal to 1, which different types of operations, with is equivalent to velocity accuracy of less proposed definition was inconsistent minimum NACP values ranging from 5 than 10 meters per second. with the surveillance integrity level through 9.30 The ARC also The European Organisation for the definition provided in DO–260A. recommended that when a NACP greater Safety of Air Navigation Commenters stated that DO–260A than or equal to 9 is necessary, operators Change 2 defined surveillance integrity should only be required to equip with 31 ASDE–X is a traffic management system for the level as including only the position a position source that could meet a airport surface that provides seamless coverage and source. The ARC recommended that the aircraft identification to air traffic controllers. The FAA use the definition of surveillance NACP greater than or equal to 9 for 95 system uses a combination of surface movement percent of an hour and meet a NACP radar and transponder multilateration sensors to integrity level found in RTCA DO– display aircraft position. 30 ADS–B ARC Task II Report to the FAA 6 32 ADS–B ARC Report to the FAA Appendix P, 33 A copy of the Separation Standards Working (September 26, 2008), available on the Web site, Programmatic Decision Analysis (September 26, Group report is available from the Web site http:// http://www.regulations.gov, FAA–2007–29305– 2008), available at http://www.regulations.gov, www.regulations.gov. The docket number for this 0221.1. FAA–2007–29305–0221.1. rulemaking is FAA–2007–29305.

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289,34 which also limited the design misleading data must be less than TCAS and transponder use does not assurance to the position source. 1x10¥5 per hour. The FAA’s TSOs and indicate that dual antennas are The FAA asserts that the design the corresponding RTCA documents did necessary. assurance of the ADS–B system needs to not allow for this combination. Airservices Australia and the represent the complete system, and not Therefore, in developing and issuing Australia Civil Aviation Safety a single piece of that system, to provide the NPRM, the FAA assumed that most Authority noted that Australia is not air traffic separation services. The FAA operators, in upgrading their equipment requiring antenna diversity for GA agrees that the inconsistency between for ADS–B, would equip with a global aircraft. The ARC recommended the proposed rule and the RTCA positioning system (GPS) 35 that would allowing non-diversity antenna standard is unworkable; however, RTCA provide a NIC containment radius of installations for VFR aircraft flying has updated the design assurance 1x10¥7 per hour (a SIL of 3). However, through Class B and C airspace and requirements in DO–260B and DO–282B to require the associated maximum below 15,000 feet MSL (1090 MHz ES) to include the entire ADS–B avionics probability of failure causing false or or below 18,000 feet MSL (UAT), but system, rather than just the position misleading data to be transmitted at not landing at a primary airport. The source. The ADS–B system includes 1x10¥7 per hour was not only ARC also recommended that the FAA ADS–B transmission equipment, ADS–B unreasonable but also unnecessary. undertake further studies to assess and processing equipment, position source, Therefore, the FAA proposed that a SIL validate the need for antenna diversity and any other equipment that processes of 2 was also acceptable. in low-altitude airspace. the position data transmitted by the With the separate SIL and SDA values The FAA proposed dual antennas to ADS–B system. The DO–260B change is available under DO–260B and DO– support ADS–B Out and ADS–B In air- consistent with the rule. 282B, the rule requires a maximum to-air applications. For ATC probability of exceeding the NIC surveillance, only a single bottom- 6. Source Integrity Level (SIL) and ¥ containment radius of 1x10 7 per hour mounted antenna is necessary. The System Design Assurance (SDA) or per sample (which equates to a SIL commenters and the ARC identified this In DO–260A (TSO–C166a) and DO– of 3), and a maximum probability of element of the proposal as requiring 282A (TSO–C154b), SIL was defined as 1x10¥5 per hour of a failure causing significant costs for the GA operators.36 surveillance integrity level and false or misleading data to be The FAA has reconsidered its initial represented two separate components: transmitted (which equates to an SDA of strategy for launching the ADS–B (1) The maximum probability of 2). requirements and is adopting the exceeding the NIC containment radius Changing the proposed probability of performance standards necessary for and (2) a maximum probability of a exceeding the NIC containment radius ATC surveillance. Therefore, this rule failure causing false or misleading data from 1x10¥5 per hour or per sample to does not require antenna diversity for to be transmitted. DO–260B (TSO– 1x10¥7 per hour or per sample should ADS–B to operate in any airspace. This C166b) and DO–282B (TSO–C154c) not impact NAS users. This is because change does not alter or affect antenna separate these two components into two currently available ADS–B Out systems diversity requirements for other aircraft distinct parameters. SIL is now referred using GNSS will provide an integrity systems, such as transponders or TCAS to as source integrity level and defines metric based on 1x10¥7 per hour. II. the maximum probability of exceeding Operators should be aware that a dual 7. Secondary Position Sources the NIC containment radius; SDA now antenna installation could provide defines the maximum probability of a The General Aviation Manufacturers additional benefits that are not included failure causing false or misleading data Association (GAMA), IATA, and in the scope of this rule. Airport surface to be transmitted. Rockwell-Collins commented that the situational awareness or alerting The FAA proposed a SIL value of 2 or final rule should specify separate applications may be compromised by a 3. A SIL of 2, as stated in TSO–C166a performance requirements for secondary single-antenna installation. Operators and TSO–C154b, represented: (1) A position sources in the event that their who equip with a single antenna may maximum probability of exceeding the primary position source is unavailable. not be able to accrue all available ¥ NIC containment radius of 1x10 5 per The FAA disagrees that a separate set benefits from some or all future ADS– hour or per sample; and (2) a maximum of requirements is necessary for B In applications. probability of a failure causing false or secondary position sources because the While requirements for these misleading data to be transmitted of rule does not require a secondary applications have not yet been fully ¥ 1x10 5 per hour. source. The NACP, NACV, NIC, SDA and defined, modeling performed by both A SIL of 3 represented: (1) A SIL requirements in this rule apply the ARC and the FAA has indicated that maximum probability of exceeding the regardless of the position source in use. a single antenna may not be able to ¥7 per NIC containment radius of 1x10 D. Performance Requirements— perform adequately for surface hour or per sample and (2) a maximum Antenna Diversity applications. If the FAA, for example, probability of a failure causing false or issues a future mandate requiring misleading data to be transmitted of The NPRM proposed that aircraft surface performance capability, ¥ 1x10 7 per hour. meet optimum system performance by operators of single-antenna-equipped The FAA proposed these two values equipping with both a top and a bottom aircraft may need to upgrade the for SIL because its separation standards antenna to support ADS–B In avionics installed on their aircraft. modeling determined that the applications. Operators should also be aware that probability of exceeding the NIC Several commenters, including single-antenna installations are not as containment radius must be less than AOPA, did not support this aspect of capable as dual-antenna installations of ¥ 1x10 7 per hour or per sample and the the proposal because antenna diversity receiving ADS–B messages in an probability of a failure causing false or significantly increases the cost of ADS– B. AOPA also noted that historical 36 ADS–B ARC Task II Report to the FAA 34 Minimum Aviation System Performance Appendix T, Antenna Diversity Comments on Cost, Standards (MASPS) for Aircraft Surveillance 35 GPS is a U.S. satellite-based radio navigation (September 26, 2008), available at http:// Applications (ASA). system that provides a global-positioning service. www.regulations.gov, FAA–2007–29305–0221.1.

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environment with a highly congested seconds. The processed information uncompensated latency. Total latency is spectrum. Because of increasing then would be transmitted in the ADS– defined as the time between when congestion on the 1090 MHz frequency B message from the ADS–B Out measurements are taken to determine over time, single-antenna installations broadcast link avionics in less than 1.0 the aircraft’s geometric position of ADS–B may not be able to achieve the second from the time it was received (latitude, longitude, and geometric same range for ADS–B In applications as from the navigation sensor. altitude) and when the ADS–B aircraft with two antennas. Several commenters, including transmitter broadcasts the aircraft’s This limitation on the upper bound of Airbus, Boeing, EUROCONTROL, position. Under this rule, the total ADS–B In application range for single- GAMA, and Honeywell, commented latency cannot exceed 2.0 seconds. antenna installations does not impact that the latency requirements are not Latency is compensated to account for any of the application benefits cited in well defined, are too stringent, and are the movement of the aircraft while the this rule. The FAA is actively pursuing not consistent with other standards.37 unit is processing the position strategies to mitigate spectrum United Airlines and UPS recommended information. The avionics usually congestion concerns of the 1090 MHz that the FAA specify the accuracy of compensate latency based on velocity frequency. However, operators position information at the time of but may also compensate based on employing the 1090 MHz ES broadcast transmission. Boeing and Honeywell acceleration. link should be aware that future air-to- recommended that the FAA specify Uncompensated latency is defined as air applications that require longer latency, based on the time of the time the avionics does not range reception may require dual applicability of the position source. compensate for latency. Under this rule, antennas or a UAT system. The ARC stated that the FAA should: within the 2.0 second total latency (1) Specify latency requirements at the allocation, a maximum of 0.6 seconds E. Performance Requirements— aircraft level, not the equipment level; may be uncompensated latency. The Transmit Power (2) specify the maximum avionics must compensate for any The NPRM proposed that aircraft uncompensated latency to minimize or latency above 0.6 seconds up to the equipped with UAT would have a eliminate installation wiring changes of maximum of 2.0 seconds by minimum 16-watt transmit power existing ADS–B Out implementations, extrapolating the position to the time of performance and aircraft equipped with while meeting ATC surveillance transmission. 1090 MHz ES would have a minimum requirements; (3) specify total latency Aircraft velocity, as well as position 125-watt transmit power performance. and uncompensated latency; and (4) accuracy and integrity metrics (NACP, Some commenters, particularly AOPA, reference latency to the time of NACV, NIC, SDA, and SIL), must be argued that the proposal was not applicability of the position provided by transmitted with their associated warranted and imposed unnecessary the position sensor, rather than the time position measurement, but are not expense. The ARC commented that of measurement. required to be compensated. using the existing power level without The FAA adopts three of the four ARC antenna diversity may provide the recommendations. First, the FAA agrees G. Performance Requirements—Time To performance needed to make broader that latency must be defined at the Indicate Accuracy and Integrity use of non-diversity antenna aircraft level and not the equipment Changes installations. level. Second, the latency requirements The NPRM proposed that changes in The FAA has determined that are set at the maximum value that will NIC and NACP must be broadcast within reducing the transmit power allow ATC surveillance. Although the 10 seconds. This proposed requirement requirement would significantly impact latency requirements will drive wiring would bind the latency of the NIC and the ground infrastructure. The FAA will changes in some aircraft, the NACP, however this requirement would rely on a series of approximately 800 requirements will minimize the number also bind the maximum amount of time ground stations to provide ATC of aircraft affected to the maximum an integrity fault can exist without an separation services throughout the extent possible. Third, the FAA has indication, as an integrity fault is United States. The ground stations will defined the latency requirements as indicated by changing the NIC and be placed 150 to 200 miles apart and total latency and uncompensated NACP to zero. will require the minimum aircraft latency. The FAA does not agree with The ARC, GAMA, and Rockwell- output power specified in the rule to the fourth recommendation to measure Collins commented that 10.0 seconds is ensure coverage. Lowering the aircraft latency at the time of applicability. To not enough time to indicate a change in output power requirements, as do so would place latency requirements the NIC. They specifically noted that suggested by the commenters, would only on part of the overall system and GNSS position sources use the entire require the FAA to expand and redesign specifically exclude the position source 10-second allocation, which does not the ADS–B ground infrastructure. latency. Since the entire system’s allow time for the ADS–B equipment to Consequently, the power levels remain latency, including the position source, actually transmit the change. Rockwell- unchanged in the final rule. must be limited to ensure accuracy of Collins, GAMA, and the ARC the transmitted position the rule recommended instead that changes in F. Performance Requirements—Total requires latency to be measured from NIC and SIL be broadcast within 12.1 and Uncompensated Latency the position source time of seconds. In the NPRM, the FAA proposed to measurement and not the time of Position sources typically provide an define latency as the time information applicability. accuracy and integrity metric with each enters the aircraft through the aircraft This rule specifies two separate position that is output. To allow GNSS- antenna(s) until the time it is latency requirements: Total latency and based position sources time to detect transmitted from the aircraft. The FAA and eliminate possible satellite faults, further proposed that the navigation 37 The commenters specifically referenced the GNSS systems allow the integrity metric sensor should process information RTCA Airborne Surveillance Applications associated with a position to actually lag Minimum Aviation System Performance Standards received by the aircraft’s antenna(s) and and DO–303 Safety ‘‘Safety, Performance and behind the output of the position. TSO– forward this information to the ADS–B Inoperability Requirements Document of the ADS– C145/146 and TSO–C196 GNSS systems broadcast link avionics in less than 0.5 B Non-Radar-Airspace (NRA) Application.’’ have up to 8.0 seconds to alert to an

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integrity fault. TSO–C129 systems do determination of GNSS availability. required WAAS (or implied that the not have an overarching integrity fault Other commenters focused on a positioning service used by the aircraft time-to-alert requirement, but they do perceived requirement for operators to have an availability equivalent to have navigation mode specific integrity equip with avionics that had a system WAAS.) fault time-to-alert requirements. availability equivalent to Wide Area As stated in the NPRM, operators may Specifically, TSO–C129 systems must Augmentation System (WAAS) 39. equip with any position source. indicate an integrity fault within 10 Although WAAS is not required, at this 1. Preflight Determination of seconds in terminal and approach time it is the only positioning service Availability modes. that provides the equivalent availability The requirement to indicate a change The proposal preamble explained that to radar (99.9 percent availability). The in NIC applies to the time between operators must verify ADS–B Out FAA expects that future position when a fault-free NIC is transmitted availability before flight as part of their sources such as GNSS using the L5 GPS with a faulted position and when the pre-flight responsibilities. This is signal, GPS using Galileo signals, and NIC is updated to indicate the fault. similar to the requirement for preflight GPS tightly integrated with inertial Thus, the clock to indicate the change determination of availability for certain navigation systems will also provide in NIC does not start at the onset of the Required Navigation Performance 99.9 percent availability. Operators who fault, but rather at the broadcast of the (RNP) 40 operations. equip with other position sources, such faulted position from the ADS–B ATA argued that the process to as non-augmented GPS, may experience system. Thus, the total time to update determine availability could be time outages that limit their access to the the NIC is based on the cumulative consuming for operators and that the airspace defined in this rule. effect of—(1) the position source fault FAA should provide further If an aircraft’s avionics meet the detection and exclusion time, and (2) justification. Boeing stated that the requirements of this rule but the worst-case asynchronous NPRM did not include an availability unexpected GPS degradations during transmission difference between when requirement; therefore, the FAA should flight inhibit the position source from the fault-free NIC with faulted position correct its statement in the NPRM providing adequate accuracy (within is transmitted and when the faulted NIC preamble advising operators to make 0.05 NM) and integrity (within 0.2 NM), is transmitted. this part of their preflight actions. ATC will be alerted via the aircraft’s The FAA reviewed the separation The ARC recommended that the FAA broadcasted data and services will be standards work to determine if a 12.0 provide preflight prediction systems provided to that aircraft using the second delay in the broadcast of an that assess the ability of typical backup strategy. An aircraft that is not integrity fault would impact separation positioning sources to meet the position equipped to meet the requirements of standards. The FAA found that no accuracy and integrity requirements. this rule will not have access to the existing terminal and en route This rule requires operators to meet airspace for which ADS–B is required. surveillance standards would be the adopted minimum position accuracy The FAA notes that preflight availability impacted with a 12.0 second delay, and and integrity performance requirements verification eliminates any need for the thus the rule requires that changes in to operate in the airspace described in system to meet a specified availability NIC be broadcast within 12.0 seconds. the rule. To facilitate compliance with requirement upon installation. The ARC, GAMA, and Rockwell- the rule and assist pilots for the flight Collins also commented that changes in planning, the FAA will provide a I. Performance Requirements— Continuity NACP, NACV, and SIL should be preflight availability prediction service broadcast within 3.1 seconds versus by 2013. Therefore, prior to departure, The FAA did not propose a 10.0 seconds. The FAA determined that operators should verify that the continuity 41 requirement in the NPRM. there is no basis to tighten the predicted performance requirements Several commenters, including Airbus, requirement. Therefore, the 10.0 second will be met for the duration of the flight. GAMA, Rockwell-Collins, and the ARC, requirement applies to indicating This service will determine whether suggested that the FAA add a continuity changes in NACP, NACV, SDA, and SIL. GNSS equipment is capable of meeting requirement. These commenters argued § 91.227 position accuracy and integrity that such a requirement would ensure H. Performance Requirements— requirements for operating in the that an aircraft could continue Availability airspace defined in this rule. Operators providing the ADS–B information The FAA did not propose any may also use their own preflight throughout a flight. availability 38 requirements for this rule. availability prediction tools, provided Aircraft are to meet the performance The proposed rule generated multiple the predictions correspond to the requirements for the duration of the comments concerning statements in the performance of their equipment. The operation, not just a portion of the preamble regarding availability and FAA advises operators to consult flight. The FAA’s preflight availability whether the FAA should require manufacturers’ information on specific prediction service will help pilots operators to accomplish a preflight avionics and prediction services. ensure that the aircraft can continue 2. System Availability transmitting ADS–B information 38 RTCA DO–229, Minimum Operational throughout their planned flight, based Performance Standards for Global Positioning Numerous commenters, including the on expected operations. Unexpected System/Wide Area Augmentation System Airborne DOD, contended that the proposal Equipment, defines the availability of a navigation system as the ability of the system to provide the 41 DO–229 defines the continuity of the system as required function and performance at the initiation 39 WAAS is a U.S. wide-coverage augmentation the ability of the total system (comprising all of the intended operation. Availability is an system to GPS that calculates integrity and elements necessary to maintain aircraft position indication of the ability of the system to provide correction data on the ground and uses within the defined airspace) to perform its function usable service with the specified coverage area. geostationary satellites to broadcast the data to GPS/ without interruption during the intended operation. Signal availability is the percentage of time that SBAS (Satellite-Based Augmentation System (non- More specifically, continuity is the probability that navigational signals transmitted from external U.S.)) users. the specified system performance will be sources are available for use. Availability is a 40 Required Navigation Performance (RNP) is a maintained for the duration of a phase of operation function of both the physical characteristics of the statement of the total aircraft navigation (presuming that the system was available at the environment and the technical capabilities of the performance necessary for operation within a beginning of that phase of operation), and predicted transmitter facilities. defined airspace. to exist throughout the operation.

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failures will be accommodated, as defined. UPS and United Airlines The FAA concludes that the described in the discussion on suggested that the FAA use the ground requirement to transmit aircraft length availability; therefore, there is no need automation system to accomplish the and width is necessary because this for a separate continuity requirement. function of this message element. Some message element will be used as an commenters also contended that this input for ASDE–X systems and allows J. Performance Requirements—Traffic message element could require an the FAA to decommission ASDE–3 Information Service—Broadcast additional user interface, which is not radars 42 that interface with ASDE–X, as Integrity (TIS–B) available on current equipment. well as the surface movement radar The NPRM did not propose any The ARC recommended that the FAA systems that are at certain ASDE–X sites changes to the standards for TIS–B. clarify the definition of this message without ASDE–3. The length-width Boeing stated that the FAA’s plans to element and explain how it can be code will be preset when ADS–B implement TIS–B with a SIL of 0 would implemented without pilot entry. The equipment, meeting the standards in severely limit its utility for ADS–B In ARC also requested that the FAA TSO–C154c or TSO–C166b, is installed applications. Boeing recommended that research whether both ‘‘Receiving ATC in the aircraft. the FAA change TIS–B to provide a SIL Services’’ and ‘‘Mode 3/A Code’’ are ADS–B equipment transmits an of 2 or greater, to be consistent with the necessary. airborne position message when the SIL proposed for ADS–B Out. The FAA concludes that ‘‘Receiving aircraft is airborne, and a surface Honeywell commented that a TIS–B ATC Services’’ is not necessary for ATC position message when the aircraft is on integrity level should be established for surveillance because this information the ground. Aircraft automatically value-added, near-term applications. can be directly inferred from the Mode determine airborne or ground status and The ARC did not specifically comment 3/A code. Furthermore, this message transmit the appropriate message. For on the TIS–B SIL, but did recommend element could increase costs for an aircraft that are unable to determine that the FAA include a discussion of the additional user interface. Therefore, this their air-ground status automatically, FIS–B and TIS–B benefits in the rule does not include ‘‘Receiving ATC the RTCA standards and TSOs allow the preamble to the ADS–B Out final rule. Services’’ as a required broadcast aircraft to continuously transmit the The TIS–B system is expected to message element. airborne position message. However, the support four of the five initial ADS–B In length width code is a required message 3. Length and Width of the Aircraft applications. The FAA acknowledges element in this rule, and is only that future ADS–B In applications may The NPRM proposed requiring a transmitted in the surface position require improved representation of the message element to broadcast the length message. Thus, to comply with the rule, position integrity metrics. With the SIL and width of the aircraft. the aircraft must automatically and SDA changes incorporated in DO– Airbus and EUROCONTROL determine its air-ground status and 260B and DO–282B and possible commented that length and width transmit the surface position message changes to future versions of DO–317, information is not necessary for which includes the length width code the FAA plans, outside of this surveillance or airborne ADS–B Out when on the ground. rulemaking effort, to evaluate the applications. Airbus and an individual 4. Indication of the Aircraft’s Barometric usefulness of the broadcast of integrity commenter noted that length and width Pressure Altitude parameters from TIS–B. information should be quantified K. Broadcast Message Elements relative to the aircraft position reference The NPRM proposed a broadcast point or to a known offset. message that would report the aircraft’s 1. NACP/NACV/NIC/SDA/SIL GAMA and Rockwell-Collins noted barometric pressure altitude. Several The NPRM did not specifically that the TSOs allow some aircraft to commenters, including the ARC, propose NACP, NACV, NIC, or SIL as continuously transmit ‘‘in-air’’ because GAMA, Rockwell-Collins, Sandia broadcast message elements in section 4 these aircraft do not have a means to National Laboratories (SANDIA), and of appendix H to part 91, Minimum determine their air/ground status. UPS, identified an inconsistency Broadcast Message Element Set for Rockwell-Collins commented that the regarding the barometric altitude ADS–B Out. These requirements were rule should require all aircraft to assess message element between the proposed specified in section 3 of appendix H to their air/ground status and broadcast the rule’s preamble and regulatory text. part 91, ADS–B Out Performance appropriate set of messages for that The FAA agrees that the NPRM Requirements for NIC, NAC, and SIL. status. The ARC recommended that the preamble was not completely clear and Honeywell noted that NACP, NACV, FAA address this issue in the preamble should have better reflected the NIC, and SIL are required message to the final rule. proposed regulatory text. The proposed elements in DO–260A. The FAA notes that TSO–C154c and regulatory text stated that the pressure To resolve any questions, the FAA has TSO–C166b allow the operator to altitude reported for ADS–B Out and repeated the indications for these determine whether to transmit the Mode C/S transponder is derived from elements in § 91.227(d)(16) through (19). aircraft’s latitude and longitude the same source for aircraft equipped In addition, and consistent with TSO– referenced to the GPS antenna location with both a transponder and ADS–B C166b and TSO–C154c, SIL and SDA or the ADS–B position reference point. Out. The FAA confirms that the are listed as separate values. The ADS–B position reference point is barometric altitude reported from the the center of a box, based on the aircraft aircraft’s transponder and ADS–B Out 2. Receiving ATC Services length and width. With the position must be derived from the same source. The NPRM proposed requiring the offset to the ADS–B reference point, the In addition, the FAA is striking the message element ‘‘Receiving ATC ADS–B is able to report the position of January 1, 2020 compliance date from Services.’’ Several commenters, the edges of the aircraft. This rule does proposed § 91.217(b). If an operator including ACSS, Airbus, Boeing, not require operators to apply the chooses to use ADS–B before January 1, EUROCONTROL, United Airlines, and position offset because ATC UPS, commented that this message surveillance does not require a position 42 ASDE–3 is an airport radar that shows to tower element is unnecessary and poorly offset. controllers the location of aircraft on the surface.

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2020, the operator must meet the FAA to monitor in-service performance reporting of aircraft position. If the provisions of that section. to address NAS inefficiencies and take aircraft’s avionics are not capable of appropriate corrective actions. This allowing a single point of entry for the 5. Indication of the Aircraft’s Velocity information may also be used to support transponder and ADS–B Out Mode 3/A The NPRM proposed a message future ADS–B In applications. This code, the pilot must ensure that element that would provide ATC with message element was harmonized with conflicting codes are not transmitted to information about the aircraft’s velocity the international community in the ATC. and direction. However, the NPRM development of DO–260B and ED– ATC uses the Mode 3/A code to preamble mistakenly referred to velocity 102A.43 identify aircraft that are under as airspeed. Several commenters, surveillance and possibly under ATC including Airbus, the ARC, Rockwell- 7. For Aircraft With an Operable Traffic direction. This identifier is necessary to Collins, SANDIA, and UPS, Alert and Collision Avoidance System II issue directions to specific aircraft about recommended that the message element or Airborne Collision Avoidance nearby air traffic. The Mode 3/A code reflect velocity instead of airspeed. System, Indication If a Resolution and the International Civil Aviation Rockwell-Collins noted that velocity Advisory Is in Progress Organization (ICAO) 24-bit address are could be derived from other sources, The NPRM proposed a message duplicative for some functions. This including an inertial navigation system. element to indicate that a resolution duplication is necessary because many ACSS, United Airlines, and UPS advisory is in progress. EUROCONTROL current ATC automation systems are not recommended that the FAA require the recommended that the FAA yet capable of using the ICAO 24-bit velocity source for ADS–B internationally harmonize this message address. Therefore, the FAA retains this transmissions to be the most accurate element before adopting the message element in the rule. velocity source on the aircraft. The ARC requirement. Airbus noted that this 9. Indication of the Aircraft’s Call Sign recommended that the issue of velocity element may be achieved with DO– source be referred to RTCA. That Is Submitted on the Flight Plan, or 260A. the Aircraft’s Registration Number This message element will provide Similar to the discussion in II.K.6. (Aircraft Call Sign Requires Flightcrew ATC with the aircraft’s velocity, as well above, the message that a TCAS Entry) as a clearly stated direction and resolution advisory is in progress will description of the rate at which an be used by the FAA to monitor in- The NPRM proposed a requirement aircraft changes its position. The service performance to address NAS for this message element to indicate velocity must be transmitted with a inefficiencies and take appropriate either the aircraft’s call sign (as NACV of less than 10 meters per second. corrective actions. This information may submitted on its flight plan), or the Any velocity source that meets these also be used to support future ADS–B In aircraft’s registration number. An requirements will comply with this rule. applications. This message element was individual commenter disagreed with The FAA referred the question on harmonized with the international the required broadcast message element velocity source to RTCA for further community in the development of DO– for aircraft identity and noted that it review, as the ARC recommended. 260B and ED–102A. uses unnecessary bandwidth. RTCA determined that the velocity This message element correlates flight source must be the same source that 8. Indication of the Mode 3/A plan information with the data that ATC provides the aircraft’s position, and Transponder Code Specified by ATC views on the radar display, and included this requirement in DO–260B (Requires Flightcrew Entry) facilitates ATC communication with the and DO–282B. The NPRM proposed a message aircraft. This message element also will support certain ADS–B In applications 6. Indication If Traffic Alert and element to transmit the aircraft’s such as enhanced visual approach. Collision Avoidance System II or assigned Mode 3/A transponder code. Several commenters, including ACSS, In the final rule, the regulatory text is Airborne Collision Avoidance System Is amended to provide that an operator Installed and Operating in a Mode That Boeing, SANDIA, and UPS, argued that this message element should not be does not need to populate the call sign/ May Generate Resolution Advisory aircraft registration field for a UAT Alerts necessary with ADS–B surveillance, and suggested deleting the requirement. equipped aircraft if he or she has not The NPRM proposed requiring a GAMA expressed concern that different filed a flight plan, is not requesting ATC message element that would (1) identify codes in the Mode 3/A transponder and services, and is using a UAT self- to ATC whether the aircraft is equipped the ADS–B could result in an indication assigned temporary 24-bit address. with TCAS II or ACAS and (2) identify of a traffic conflict. GAMA specifically Although the FAA does not prohibit the whether the equipment is operating in recommended a one code entry or anonymity feature, operators using the a mode that could generate resolution revising the automation to resolve anonymity feature will not be eligible to advisory alerts. Airbus asked for more conflicting information. Airbus and the receive ATC services, may not be able information on why this message ARC supported this message element to benefit from enhanced ADS–B search element is required. EUROCONTROL requirement and the ARC requested and rescue capabilities, and may impact commented that this message element more information on its intended use. ADS–B In situational awareness should be internationally harmonized The FAA has determined that the benefits. before the FAA adopts this requirement. same ATC-assigned Mode 3/A code UPS asked whether this message should 10. Indication If the Flightcrew Has must be transmitted by both the Identified an Emergency, Radio be indicated if the TCAS II is operated transponder and the ADS–B Out in the traffic advisory mode. The ARC Communication Failure, or Unlawful message. If the code transmitted by Interference (Requires Flightcrew Entry) sought to retain this message element, ADS–B differs from the Mode 3/A code but asked the FAA to clarify its transmitted by the transponder, it could The NPRM proposed this message intended use in the final rule. result in duplicative codes or inaccurate element to alert ATC that an aircraft is The TCAS installed and operating in experiencing emergency conditions. a mode that can generate a resolution 43 EUROCAE MOPS for 1090 MHz Automatic Airbus asked the FAA to clarify which advisory message will be used by the Dependent Surveillance-Broadcast (ADS–B). emergency/priority codes are required.

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The ARC recommended that the FAA list and description of the different to confirm accuracy and identify explain in the final rule the emergency emitter categories. Emitter category is discrepancies between geometric status requirement and describe how it set during installation of the ADS–B altitude and barometric altitude. will be used. avionics in the aircraft and will not Additionally, the FAA will integrate This message element alerts ATC that change over time. this comparison function into a the aircraft is experiencing emergency continuing airworthiness monitoring 13. Indication Whether an ADS–B In conditions and indicates the type of function. emergency. Both TSO–C154c and TSO– Capability Is Installed C166b identify six unique emergency The NPRM proposed this message L. Ability To Turn Off ADS–B Out codes. All emergency codes may be element to indicate to ATC whether a Transmissions transmitted. Under this rule, only cockpit display of traffic information The NPRM proposed requiring a pilot emergency, radio communication (CDTI) 45 is installed and operational. to turn off ADS–B equipment if directed failure, and unlawful interference are Several commenters, including Boeing, by ATC, for example, if the ADS–B unit required. This information will alert EUROCONTROL, and SANDIA, was broadcasting erroneous ATC to potential danger to the aircraft commented that this message element information. so it can take appropriate action. was poorly defined, difficult and The ARC, Boeing, United Airlines, Message elements for minimum fuel, expensive to implement, and of little and UPS recommended eliminating the downed aircraft, and medical value to ADS–B In applications and requirement to turn off ADS–B Out emergency are not required by this ATC surveillance. UPS asked whether a transmissions. A few commenters, rule.44 ADS–B equipment may message is required when a CDTI is including British Airways, were automatically set these required installed but not operating. The ARC concerned that being able to turn off emergency conditions based on the recommended that the FAA clarify the ADS–B Out, while keeping the Mode 3/A code. use of this data element. transponder on, could require RTCA updated the definition of this additional design changes and increase 11. Indication of the Aircraft’s ‘‘IDENT’’ message element in DO–260B and DO– costs because most existing equipment to ATC (Requires Flightcrew Entry) 282B. The FAA adopted these updates is not capable of operating in this The NPRM proposed this message in TSO–C166b and TSO–C154c. This manner. Boeing stated that eliminating element to help controllers quickly message element now indicates which erroneous ADS–B transmissions could identify a specific aircraft. United aircraft are capable of receiving ADS–B be accomplished by turning the Airlines and UPS commented that they In services and therefore require TIS–B transponder off or having a capability believe controllers use the ‘‘IDENT’’ and ADS–R transmissions from the within the ground system to allow the function to attain aircraft identification ground. Under the new definition, this controller to manually remove selected information. They noted that future message element now indicates whether targets. Rockwell-Collins recommended identification systems should include an ADS–B In capability is installed in that the FAA require the ADS–B aircraft information; therefore, they the aircraft, but does not require a report equipment to detect failures and disable believed this element is not necessary. of operational status. ADS–B Out transmissions of erroneous FreeFlight commented that ‘‘IDENT’’ data. should be retained. The ARC 14. Indication of the Aircraft’s Geometric Altitude The FAA modified the ground recommended that the FAA clarify how automation system to be able to exclude the ‘‘IDENT’’ requirement will be used. The NPRM proposed a message incorrect ADS–B data. With this The ‘‘IDENT’’ function is used element indicating the aircraft’s enhancement to the automation, the regularly in current ATC operations to geometric altitude. aircraft does not need to have a help controllers quickly identify a Several commenters, including capability for a pilot to disable ADS–B specific aircraft. The ‘‘IDENT’’ feature Airbus, Boeing, Dassault, the European transmissions. Therefore, the final rule also allows ATC to quickly identify Business Aviation Association (EBAA), does not require the pilot to be able to aircraft that have entered incorrect flight EUROCONTROL, Honeywell, and turn off ADS–B Out transmissions. identification or Mode 3/A codes. The Rockwell-Collins, commented on the FAA is adopting this message element proposed requirement. Most of the M. Existing Equipment Requirements in this rule. commenters questioned this message 1. Transponder Requirement element and stated that neither ATC 12. Indication of the Emitter Category surveillance nor ADS–B In require The NPRM specified that the proposal The NPRM proposed requiring a geometric altitude. Dassault, EBAA, for ADS–B equipage would not alter message element for an aircraft’s emitter EUROCONTROL, and Honeywell existing transponder regulations. category. supported this message element. The Several organizations and individuals, EUROCONTROL questioned the ARC recommended that the FAA justify including AOPA, opposed adding ADS– business case behind this requirement. the need for this message element. B Out performance requirements UPS asked that the FAA better define Geometric altitude is the height of the without removing the transponder the emitter categorizations in the final aircraft above the World Geodetic requirement. ATA and Boeing requested rule. System 84 ellipsoid, which is a that the FAA make a commitment to This message element is necessary for scientific approximation of the earth’s remove transponders. Several ATC separation services and wake surface. This message element will be organizations and individuals further turbulence separation requirements. used within the ADS–B ground system commented that the FAA should pursue TSO–C166b and TSO–C154c provide a an ADS–B based collision-avoidance 45 CDTI is a generic display that provides a flight system and reconsider the backup 44 Mode A codes 7700, 7600, and 7500 currently crew with traffic surveillance information about strategy, which is based on secondary are reserved for these emergencies. See Annex 10 other aircraft, surface vehicles, and obstacles, surveillance systems. ALPA supported to the Convention on International Civil Aviation including their identification, position, and other Aeronautical Telecommunications, Volume 4, message set parameters. CDTI information would the FAA’s plan to retain transponders. Surveillance and Collision Avoidance Systems, 4th commonly be displayed on a Multifunction Display The ARC made multiple Edition, July 2007. (MFD). recommendations associated with

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transponder removal: (1) The ADS–B MHz). The FAA recognizes the value of the FAA allow operators to use existing implementation strategy should include a ground application that could allow equipage to accrue early benefits. the removal of transponders from low- for timely and accurate flight tracking of Specifically, the ARC recommended altitude aircraft without an ACAS; (2) downed aircraft and is evaluating this that the FAA: (1) Take advantage of the FAA should commit to a strategy for capability separate from this existing 1090 MHz ES-equipped aircraft achieving transponder removal from rulemaking. and allow their operation in the Gulf of low-altitude domestic aircraft; and (3) The FAA considered the ARC Mexico for non-radar airspace and (2) the FAA should study whether ACAS recommendation to evaluate the transition to a fully functional ADS–B can be modified to use ADS–B as the feasibility of replacing the ELT with the Out capability enabled by DO–260B,47 primary surveillance data for collision ADS–B system. However, the FAA has to allow access to the additional avoidance, as well as what ACAS determined that ADS–B is not a feasible applications and services for ADS–B In. upgrades are required to support replacement for the ELT, as discussed The ARC also recommended that the NextGen. above; therefore, the FAA does not plan FAA adopt the European Aviation Removing the transponder to undertake such a study at this time. Safety Agency (EASA) Acceptable requirement would involve substantial Means of Compliance 20–24 (permitting N. Program Implementation changes to the ADS–B backup strategy the use of early DO–260 avionics for and TCAS II/ACAS, which are outside 1. Timeline separation) in non-radar airspace, with appropriate measures to ensure ADS–B the scope of this rulemaking. The FAA proposed that all aircraft Transponders will still be required integrity. operating in the airspace areas specified After reviewing all the comments, the when the backup surveillance strategy in the rule meet the performance using SSR is necessary and to interact FAA finds that a 2020 compliance date requirements by January 1, 2020. remains appropriate because NAS users with TCAS- and ACAS-equipped The majority of commenters aircraft. Separate from this rulemaking, need time to equip to the requirements recommended various options for the of the rule. Most air carriers can use the FAA may consider (in coordination implementation of ADS–B, including with the appropriate surveillance and regularly scheduled maintenance to the discontinuation of secondary and/or install or upgrade their equipment. The NextGen planning organizations), primary radar systems once ADS–B is whether transponders could eventually FAA also expects that this timeframe operational NAS-wide. Some will provide sufficient operational be removed and, if so, what steps are commenters, including AIA and AOPA, necessary to accomplish this. experience to make ADS–B the primary requested that the FAA provide certain source for surveillance in 2020. 2. Emergency Locator Transmitter basic levels of ADS–B service for several FIS–B and TIS–B services are already Requirement years before the ADS–B compliance available in several areas of the country date. The NPRM did not propose any for ADS–B In-equipped aircraft and will Several commenters, including ALPA changes to the emergency locator continue as an integral part of the and the National Transportation Safety transmitter (ELT) 46 requirements. implementation of the ADS–B ground Board (NTSB), suggested that the Several commenters, including ATA infrastructure. NAS-wide ground compliance date or service provision of and the National Business Aviation infrastructure implementation is ADS–B occur sooner than 2020, to Association (NBAA), argued that ADS– scheduled to be complete in 2013, obtain benefits more quickly. United B should be used instead of an ELT, and which would provide operators with at Airlines recommended a 2015 that ELT requirements could be least 7 years of operational experience compliance date for operations above FL included in this rule. AOPA also with these services before the ADS–B 240. The Cargo Airline Association recommended a long-term strategy to compliance date of 2020. (CAA) recommended lower performance include ELT removal, and stated that The FAA examined whether it is requirements for a 2015 compliance ADS–B could enhance current search- operationally feasible and economically date. Several commenters, including the and-rescue procedures to increase the beneficial to use DO–260 avionics in Aircraft Electronics Association, FedEx, number of successful rescues. radar and non-radar airspace before The ARC recommended that the FAA and the National Air Carriers 2020. From an operational perspective, explore whether an ADS–B tracking Association, suggested extending or the FAA found that the existing DO–260 service also could be used for search adding flexibility to the 2020 equipment does not meet the and rescue to aid in crash locating. The compliance date. surveillance needs for ATC in the Numerous commenters, including ARC also recommended that the FAA United States for various reasons: (1) ATA, Boeing, IATA, and Rockwell- conduct a study considering an ADS–B- DO–260 avionics do not independently Collins, suggested a two-phased based search-and-rescue solution that report the accuracy and integrity implementation strategy. The first phase would enable removal of 121.5 MHz metrics; (2) DO–260 avionics allow the would use existing equipment, avionics ELTs for certain domestic operations. integrity metric to be populated with The FAA has determined that the standards, and capabilities, which accuracy information during integrity ADS–B system currently cannot replace would allow industry and the FAA to outages, which is unacceptable for the ELT function. The ADS–B system is demonstrate, validate, and evaluate aircraft separation services; (3) DO–260 not required to be crashworthy and, ADS–B applications. After operational avionics do not include a message thus, may not be operable or able to experience in the first phase was element for Mode 3/A code, which is transmit following an aircraft accident. sufficient to generate the appropriate necessary for aircraft surveillance; and Additionally, current search-and-rescue standards, the second phase would (4) the majority of existing DO–260 technology is not compatible with ADS– establish a mandate for ADS–B Out installations were accomplished on a B operations because ELTs broadcast on performance standards. Some noninterference basis under the 121.5 or 406 MHz (not 1090 or 978 commenters suggested that the second transponder approval guidelines. (This phase be a combined ADS–B In and certification verifies that the equipment 46 An ELT is an electronic battery-operated ADS–B Out rule. transmitter developed as a means of locating The ARC endorsed the proposed 2020 47 The ARC recommended DO–260A Change 3, downed aircraft. compliance date, but recommended that which is DO–260B.

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is safe onboard the aircraft, but does not variety of equipage among current DO– the emergency medical services issue any approval that would permit its 260 users. Although approximately community and encourage ADS–B use for ADS–B operations.) 7,500 aircraft in the United States equipage. Therefore, the FAA concluded that transmit some ADS–B data that would ATA, CAA, the National Air without upgrades to the equipment, the conform to DO–260, only about 1,500 Transportation Association, NBAA, and use of DO–260 avionics will not meet aircraft transmit enough data to be UPS recommended specific operational the surveillance needs in the NAS. useful for 5 NM separation in the Gulf incentives for early equipage, including: Furthermore, without appropriate of Mexico and input into ATC decision (1) Implementing ADS–B in under-used integrity monitoring, DO–260 avionics support tools (URET and TMA).51 Many areas of the NAS, (2) providing cannot be used for separation of aircraft. DO–260 operators would require some preferential access to congested Its utility would be limited to upgrade costs to bring their existing airspace, (3) deploying the necessary potentially reducing separation in non- systems into compliance with a unified ADS–B infrastructure for traffic crossing radar areas, or increasing efficiency in standard; these would be in addition to the Gulf of Mexico, and (4) providing radar airspace through more timely the costs incurred for taking aircraft out services for on-demand operators at updates of information. of service for certification. Although the small community airports. Further analysis addressed whether user costs were not thoroughly assessed Some commenters, including AOPA, existing DO–260 avionics could be by the ARC, the FAA estimated the costs HAI, and CAA, recommended financial beneficial to provide separation services at $15,000 per aircraft.52 incentives or tax credits for ADS–B in the Gulf of Mexico, or to provide Given the above, the FAA could not equipage. efficiency benefits through improved justify the proliferation of avionics for The following activities are scheduled performance of User Request Evaluation the short-term that would not be to be complete by 2013: Tool (URET) 48 and Traffic Management compliant with the final rule in 2020. • Ground infrastructure coverage Advisor (TMA). Therefore, the agency concluded that needed for the mandated airspace,53 To use DO–260 avionics in the Gulf the public interest was not best served • ADS–B interface to automation of Mexico, the FAA estimated it would by using DO–260 avionics for ADS–B systems, incur approximately $4 million in costs applications in radar and non-radar • Guidelines for equipment to upgrade the automation; would need airspace before 2020. certification, • to provide additional ground stations 2. Financial and Operational Incentives Operations Specifications approval, and receiver autonomous integrity • Approval to use ADS–B to meet monitoring (RAIM) predictions; would Numerous commenters, including established separation standards, need to develop procedures; and would AIA, the ARC, and NBAA, • ATC operational procedures for recommended a variety of financial and need to address aircraft certification non-radar airspace that has ADS–B operational incentives to make ADS–B issues.49 Comparatively, the FAA coverage, and more cost-beneficial for the end user. concluded that benefits from this action • FAA controller training and Some commenters specifically would only recover approximately 70 procedures. recommended that the FAA offer percent of the costs. The ADS–B program is currently additional incentives for operators who The costs associated with using funded and designed to provide services adopt early. NBAA recommended existing DO–260 avionics relative to in parts of Alaska, the Gulf of Mexico, accelerated operational benefits to improved performance of URET and and areas in the NAS where radar encourage early installation of ADS–B TMA were estimated at $31 million and coverage currently exists. Additionally, equipment. Several commenters stated the estimated benefit in performance actual ADS–B coverage may exceed the that without operational incentives, was $72 million. While this analysis defined radar coverage at lower aircraft operators with legacy equipment altitudes in some areas. The FAA cannot indicated that the benefits of improved will delay upgrades until the mandated URET and TMA performance outweigh assess, however, the extent of this compliance date. coverage or its potential use for the the costs of accommodating DO–260 AOPA and the Helicopter Association 50 ADS–B service until the ADS–B equipped aircraft, the FAA found that International (HAI) recommended it raised some policy concerns. implementation is complete in 2013. several operational improvements and The FAA acknowledges that the ADS– First, the FAA does not expect to have safety enhancements for ADS–B, the full NAS-wide ADS–B infrastructure B system could be improved by including: (1) Flight following and radar expanding the surveillance coverage of completed for this effort until 2013. As services at lower altitudes, (2) terminal ADS–B to non-radar airspace. The the ADS–B rule would go into effect in ATC services at GA airports, improved accuracy and update rate 2020, any benefits accrued through the (3) automatic instrument flight plan afforded by ADS–B provides the ability use of DO–260 avionics would only be closure, (4) instrument flight rules (IFR) to improve future NAS operations. As available for approximately 7 years. low altitude direct routing, (5) enhanced the number of projected flight Operators would be required to make a flight service information, and operations continues to increase, second investment in avionics to (6) improved real time weather. HAI efficiency improvements to the NAS are comply with the rule in 2020. also recommended that the FAA install critical to addressing new demands. Second, a collection of broadcast ground stations near hospitals and Therefore, the FAA will continue to samples indicated that there is a wide trauma centers to maximize benefits for explore opportunities to use the ADS– 48 URET is an air traffic control tool that assists 51 A copy of the Honeywell Technology Solutions B infrastructure to provide additional controllers with timely detection and resolution of Inc. DO–260 study is available from the Web site coverage in non-radar areas. The FAA predicted air traffic problems. http://www.regulations.gov. The docket number for also notes that ADS–B implementation 49 A copy of the DO–260 Business Case Analysis this rulemaking is FAA–2007–29305. will not affect flight following services is available from the Web site http:// 52 The DO–260 Business Case Analysis assumed www.regulations.gov. The docket number for this the cost of $15,000 to upgrade an aircraft equipped in effect today. rulemaking is FAA–2007–29305. with DO–260 only. The cost does not include all 50 The analysis concluded that it was not cost- costs to meet the rule. The cost was used for the 53 The planned ADS–B service coverage is beneficial to use DO–260 avionics in the Gulf of DO–260 Business Case Analysis and not used in the explained in greater detail at http://www.adsb. Mexico prior to 2020. Regulatory Impact Analysis. gov/.

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The FAA is actively pursuing trauma centers) to help determine service. However, the FAA realizes that agreements with airlines, avionics surveillance needs and opportunities. TIS–B may still have value after 2020 as manufacturers, airports, and other NAS ADS–B can provide surveillance at a backup traffic service for ADS–B In users to encourage early equipage of lower altitudes than radar. Moreover, aircraft during GNSS outages or when ADS–B. These agreements incorporate a ADS–B infrastructure is more easily an individual target’s ADS–B system is variety of items, including: (1) The deployed than most radar in remote and inoperative. Thus, the FAA, outside of possibility of developing preferred hard-to-reach areas. The flexibility this rulemaking effort, will evaluate the routes and cost sharing for avionics in associated with implementing ADS–B benefits of continuing TIS–B past the testing new applications, and (2) early can facilitate service by helicopters to 2020 rule compliance date. certain communities. Deployment of equipage and experience with advanced O. Safety ADS–B applications that are not ADS–B systems on medical, police, or available to non-equipped aircraft. tourist helicopters could provide a level Several commenters, including The FAA currently has several of asset tracking and search-and-rescue AOPA, the ARC, and Boeing, suggested agreements with airlines and state capability that would be difficult to that the FAA expand the ADS–B service entities specifying that the FAA may replicate with existing surveillance volume and ensure that TIS–B, FIS–B, enable benefits in exchange for early systems. The FAA has already and ADS–R are included in the ADS–B ADS–B equipage. Additionally, the developed agreements with HAI to expanded coverage area. Some commenters believed that FAA, HAI, and oil platform owners have support operations in the Gulf of reducing primary radars would reduce an agreement for the Gulf of Mexico by Mexico. The FAA is open to safety. These commenters noted that which the FAA is providing implementing similar agreements as primary radar is important to track communication, navigation, and opportunities for ADS–B service aircraft without ADS–B. They also surveillance for ADS–B-equipped expansion present themselves. recommended that the FAA continue helicopter operators. While this rule does not mandate requiring transport category aircraft to The FAA and UPS have an agreement ADS–B equipage in all airspace classifications, the FAA is analyzing equip with Mode S transponders and for testing and developing merging and TCAS II as an independent collision spacing, CDTI/Multi Function Display whether ADS–B services can be expanded to provide improved safety avoidance system. Some commenters Assisted Visual Separation (CAVS), and argued that the complexity of the surface situational awareness and capacity enhancements for low altitude flight operations and airports ADS–B system poses a collision risk. applications in an environment that Other commenters noted that ADS–B provides measurable benefits. underlying non-mandated airspace. The FAA will work with users to identify In cockpit displays can be confusing Additionally, the FAA is working with and distracting, which may cause a pilot Honeywell and ACSS to accelerate new candidate airports for these services. This activity will continue to lose situational awareness. They ASSA, FAROA, and surface indication added that the FAA should evaluate the and alerting applications. throughout the initial implementation period and post 2013 when the CDTI to understand the additional The FAA is working with US Airways nationwide ADS–B infrastructure is monitoring responsibility and workload to develop a work plan for expected to be available NAS-wide. placed on the flightcrew. One implementing ADS–B/NextGen The extent to which ADS–B can individual contended that ADS–B will technologies and procedures in parts of contribute to operations in special use increase a pilot’s dependence on cockpit the East Coast as a prelude to national airspace is still being studied; however, equipment and reduce the pilot’s implementation. In addition, the FAA the FAA is committed to examining any tendency to look outside the aircraft. has an agreement with United Airlines proposals for the use of ADS–B outside Another individual commenter asked to expedite oceanic in-trail procedures of the scope of implementation for data to prove that ADS–B will not be development. The FAA is also working described in this rule. susceptible to own-ship ghosting or with NetJets on several NextGen target duplication. (‘‘Own-ship ghosting’’ initiatives for performance-based 3. Decommissioning Traffic Information is a term that is used to describe a traffic navigation, communication, and Service–Broadcast (TIS–B) display showing one’s own aircraft as an surveillance applications. In the NPRM preamble, the FAA actual target. Ensuring targets that are The FAA has established an ADS–B noted that once all aircraft are equipped transmitting ADS–B are not also compatible Wide Area Multilateration with ADS–B Out, ADS–R will provide transmitted as TIS–B targets helps system in the mountainous areas of the complete traffic picture and the FAA reduce the chances of seeing one’s own Colorado pursuant to an agreement with will decommission TIS–B. aircraft as a target on the display.) the Colorado Department of A few commenters, including the The final rule does not eliminate the Transportation. The FAA continues to DOD, questioned the assumption that all requirement for transponders, TCAS, or examine different areas of the country to aircraft would be equipped for ADS–B primary radars. The FAA notes that any determine opportunities for surveillance Out. Rockwell-Collins recommended aircraft required to have TCAS II or service expansion and is continuing to retaining TIS–B after the ADS–B ACAS, or that voluntarily has TCAS II work with various state aviation offices. mandate takes effect, because it or ACAS installed, must also be In addition, the FAA continues to provides a critical support for ADS–B equipped with a Mode S transponder. examine opportunities to provide ADS– airborne applications. This generally includes all aircraft B services in areas that would benefit The original purpose of TIS–B was to operated under 14 CFR parts 121, 125, from increased surveillance. The FAA provide proximate traffic information to and 129, and certain aircraft operated does not currently have a list of airports ADS–B In-equipped aircraft about under 14 CFR part 135. that are targets for ADS–B expansion. targets that were not equipped with Mode S transponders transmit both However, the FAA has started to ADS–B. When this rule takes effect in aircraft altitude and aircraft identify areas that would benefit most 2020 aircraft operating in the airspace identification information. Both Mode from ADS–B services. The FAA subject to this rule must be equipped A/C transponders and Mode S encourages cities, states, airports, and with ADS–B, thus theoretically transponders require interrogation to private interests (such as hospitals and eliminating the need for the TIS–B provide information. ADS–B In Conflict

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Detection does not replace the functions that a decrease in en route separation of 1. Improved Position Reporting of TCAS II or ACAS; however, future aircraft will decrease delays or increase According to operational versions of hybrid surveillance systems airspace capacity. Two commenters evaluations,54 ADS–B provides may use passive ADS–B messages to argued that the FAA has not improved accuracy over radar in most reduce unnecessary interrogations and, demonstrated that system choke points air traffic scenarios. While some thus, reduce 1090 MHz spectrum can handle the increased capacity if en terminal radars can provide increased congestion. route separation is reduced. accuracy the closer the aircraft is to the As stated in the NPRM, the FAA is receiver, ADS–B provides consistent maintaining its current network of Other commenters, including the position accuracy regardless of the primary radars. However, the FAA National Air Traffic Controllers aircraft’s range from a receiver. ADS–B expects to reduce a large percentage of Association, argued that reducing also provides more timely information its secondary radars as a result of this separation will not mitigate commercial updates than conventional radar. Unlike rule. Both primary surveillance radar traffic delays caused by an inadequate radar, the accuracy and integrity of and SSR will continue to be used for number of runways, weather, hub-and- ADS–B Out is uniform and consistent surveillance during the transition period spoke operations, or airline scheduling throughout the service areas. Therefore, of ADS–B avionics equipage. practices. Era Corporation ATC’s ability to accurately identify and The benefits of certain ADS–B In recommended that the FAA improve the applications cannot be fully realized in locate aircraft that are further away from infrastructure at small airports to relieve the air traffic control facilities will be areas where there is no ADS–B congestion. Boeing stated that ADS–B coverage; however, the lack of ADS–B better than radar. alone will not lead to the advances ADS–B does not scan an environment surveillance or ADS–R does not present required by NextGen. a safety risk. When an aircraft is outside in the same way as radar; therefore, of the ADS–B coverage area, the ADS– The FAA has consistently stated that ADS–B does not provide unnecessary R/TIS–B system will inform the pilot ADS–B will not produce a complete returns based on weather or other that the traffic picture is not complete. NextGen air traffic management obstructions, which can impede the In all areas, regardless of ADS–B solution, but rather will set the initial effectiveness of primary radars. coverage, pilots will use the same steps to achieving a NextGen solution. ADS–B provides consistent, procedures they have today to maintain The airport infrastructure is a crucial frequently updated position reporting safe separation of aircraft. TIS–B and component of the NAS. Efficiency and and additional aircraft information for FIS–B services are advisory and cannot capacity of the NAS can be positively ATC decision-support tools, which be used to maneuver an aircraft without affected by improving the efficiency of increases ATC confidence in aircraft position. This will allow ATC to apply ATC clearance. The FAA will individual flights and improving the existing separation standards more investigate ADS–B service expansion as quality of input to air traffic controllers. exactly and without the need for ATC to part of the ADS–B NAS-wide ADS–B can help maximize the use of implementation. correct for possible radar inaccuracies. existing airport infrastructure. The The regulatory evaluation provides With regard to the comment regarding ability to transmit ADS–B Out messages own-ship ghosting, the ADS–B system more discussion on the benefits of can increase the efficiency of the NAS improved surveillance information. minimizes the chance of target in radar airspace by providing accurate duplication because it will not transmit updates at a faster rate than many 2. Optimized Profile Descents (OPDs) TIS–B data on a target that is existing surveillance systems. This broadcasting ADS–B. This is because The FAA plans to use the information increased update rate permits ATC to ADS–R is designed to relay information broadcast by ADS–B to better sequence about aircraft transmitting on a different merge and sequence aircraft more aircraft approaching the terminal area broadcast link, and TIS–B is designed to effectively into existing airport choke with the development of a Merging and relay information only about aircraft not points, which should mitigate, rather Spacing application. This ground-based broadcasting ADS–B messages. than increase, congestion and delay. system sends precise suggested speed This rulemaking only mandates ADS– This rule’s regulatory evaluation does instructions to en route aircraft. These B Out, which does not involve any not include any benefits that are exact-speed instructions should allow requirements for a cockpit display. dependent on, or attributable to, other aircraft to arrive at extended terminal Before any mandate of ADS–B In, the NextGen systems outside the scope of area merge points at times that are much FAA will conduct extensive safety this rulemaking. more precise than currently feasible. As part of the Merging and Spacing analysis and training. The current ADS– The FAA expects that ADS–B Out B Out rule does not eliminate or reduce application, the FAA is developing both will enable the establishment of more a ground tool and aircraft requirements the requirement under § 91.113 for direct routes outside airspace subject to pilots to see and avoid other aircraft. that can be used to optimize aircraft this rule, which would use less fuel, spacing. In addition to other airspace P. Efficiency emit less carbon dioxide and nitrogen efficiencies, this tool will enable a fuel- In the NPRM preamble, the FAA oxide, and increase NAS efficiency. The saving procedure called Optimized stated that ADS–B will enhance ATC FAA is currently developing specific Profile Descent (OPD), previously surveillance, which will increase ADS–B routes for certain areas that have referred to as Continuous Descent airspace efficiency and capacity to meet the potential for significant benefits Arrivals (CDAs). the predicted demand for ATC services. (airspace off the shore of the east coast OPDs are a type of terminal arrival Several commenters, including the and over the Gulf of Mexico). The FAA procedure, specifically designed to keep Airports Council International—North expects that other opportunities for an aircraft at, or near idle power during America (ACI–NA), Boeing, and FedEx, routes enabled by ADS–B will emerge as commented on the anticipated the ground infrastructure is 54 Surveillance and Broadcast Services Systems Engineering Separation Standards Working Group, efficiency improvements stated in the implemented NAS-wide. Final Report on Operational Evaluation of 5 NM NPRM. Some commenters contended ADS–B to Radar Separation Services in Alaska, that the proposed rule did not prove November 30, 2006.

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the entire arrival until the final route separation standards. ADS–B ADS–B package with avionics and approach fix.55 These procedures position accuracy supports current procedures to support NextGen and the increase flight efficiencies while surveillance standards. Experience with Single European Sky Air Traffic reducing noise, fuel consumption, and the mature system may allow reductions Management (ATM) Research Program. emissions. OPDs eliminate step-down at a future time. The FAA plans to The ARC recommended that the FAA, altitudes and the associated inefficient expand 3 NM separation to locations in in partnership with industry, define a power adjustments. OPDs depend on the NAS that currently only permit 5 strategy for ADS–B In by 2012 and minimal aircraft vectoring to maintain NM separation. Currently, the FAA is ensure that the strategy is compatible the arrival pattern. Therefore, aircraft modeling several scenarios to determine with ADS–B Out avionics. The ARC also must be accurately metered with ADS– if ADS–B can support 3 NM en route recommended that the FAA describe B-enabled spacing and sequencing tools separation based on a target level of how to proceed with ADS–B In beyond prior to and during descent and safety. The FAA will not move forward the voluntary equipage concept approach. with reduced separation until all safety discussed in the NPRM. Below a certain level of demand, and operational analyses have been A few commenters, including NBAA, controllers can authorize OPDs using completed and ADS–B has been praised the benefits of ADS–B and current onboard equipment and certified to perform this service. recommended that the FAA resolve ADS–B In display requirements, procedures. As the terminal demand 4. Expanded Surveillance Coverage increases, it becomes progressively more including human factors. The NTSB difficult for controllers to allow OPDs In the future, there may also be an stated that ADS–B would significantly because of interference with other traffic opportunity for ATC to use ADS–B Out improve situational awareness for flows in the airspace. As demand data for surveillance in areas of the NAS pilots, especially during ground approaches capacity, the tradeoff below the floor or outside the lateral operations. GAMA recommended that between total airport throughput (and coverage of existing radar surveillance. the FAA not limit display options in the delays) and individual flight profile The FAA does not yet know where in final rule. efficiency (that is, OPDs) would most the NAS this extra coverage might be The FAA fully recognizes that likely prohibit OPDs for very high traffic available. This information will likely ADS–B In and other future air-to-air density situations. This situation will be not be available until ADS–B applications are functions that could aggravated over time as air traffic surveillance has already been provide substantial benefits to aircraft implemented in a service area. As the resumes growth and terminal airspace operators and the NAS. While FAA identifies areas with additional constraints increase. additional benefits can be accrued using coverage, the FAA will investigate how Many airports start to exhibit ADS–B In functions, requirements for this additional coverage could be used. significant delays when demand reaches an ADS–B In system are not sufficiently approximately 70 percent of capacity. Q. ADS–B In defined to implement them at this time. ADS–B Out is necessary to establish The proposed FAA spacing tool, using Many commenters, including ACSS, more accurate ADS–B position an air transportation infrastructure that ALPA, CAA, Lockheed Martin, the is consistent with the NextGen plan and information, would enable OPDs in NTSB, and UPS, commented that the will change the way the NAS operates. medium-density terminal airspace when majority of the ADS–B benefits will be Further, the economic evaluation of the the demand approaches the point where derived from ADS–B In. Numerous ADS–B Out proposal found the system delays would be encountered. The FAA commenters asserted that ADS–B Out to be cost-beneficial if ADS–B Out believes that ADS–B Out can expand alone would not be cost-beneficial or avionics costs are at the low end of the use of OPDs into medium levels of provide them with any added benefits estimated cost range and if the benefits traffic density (40 percent to 70 compared to their operations today. are at the high end of the estimated percent), which may not be possible Some commenters noted that ADS–B In, without ADS–B Out. Accomplishing benefits range. however, would provide necessary Given the value of ADS–B In services OPDs at this level of traffic density services to the cockpit. Many of these would have important environmental to individual operators and the benefits commenters asserted that ADS–B In to future NAS operations, the and energy benefits with no increase in should be mandated as well. However, congestion or delay. requirements adopted for ADS–B Out AOPA specifically recommended that also support certain ADS–B In 3. Reduced Aircraft Separation ADS–B In be voluntary because it is applications.56 The FAA has modified cost-prohibitive for most GA owners. several aspects of the proposed rule to In non-radar airspace, ADS–B Out British Airways also questioned the allows ATC to apply radar-like minimize the cost impact to operators of business case for ADS–B In. the requirements driven by ADS–B In. separation standards in areas where Many commenters, including the The requirements in this final rule also ATC currently applies non-radar, DOD, ACI–NA, and AIA, pointed out establish a stable infrastructure for procedural separation. In some cases, that the capabilities and functions of current and future applications of routes laterally separated without radar ADS–B Out alone will not provide the ADS–B In. by as much as 90 NM are now separated full range of benefits available from The FAA concurs with the ARC’s with ADS–B at only 20 NM. ADS–B. To improve the overall system, recommendation to define a strategy for Longitudinal separation of typically 10 they recommended developing ADS–B In equipage by 2012 and is minutes (80 NM) can be reduced to 5 standards for ADS–B Out in unison with working with industry to develop a NM. standards for ADS–B In. GAMA and strategy for future ADS–B In Boeing commented that the accuracy IATA recommended that the FAA work applications. By 2012, the requirements and integrity values proposed in the to define the requirements for ADS–B In and benefits of ADS–B In applications NPRM will not support reduced en to encourage ADS–B equipage. ATA should be well enough defined for the specifically asked the FAA to define 55 The final approach fix identifies the beginning of the final approach segment, and is the fix from ADS–B In standards by 2010. IATA 56 These applications include Enhanced visual which the final instrument flight rule (IFR) noted that many operators will delay acquisition, conflict detection, and enhanced visual approach to an airport is executed. upgrades until there is a single, defined approach.

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FAA to specify a set of performance 4. Airport Surface Situational navigation source that meets the requirements that would be tied to a Awareness and Final Approach Runway requirements complies with this rule. well-defined bundle of applications. Occupancy Awareness The performance standards for the Furthermore, RTCA has completed UAT were developed by RTCA through ASSA and FAROA increase international cooperation and the DO–317, Minimum Operational situational awareness of potential Performance Standards (MOPS) for coordination. The standards were airport ground conflicts at several of the published in DO–282B, (MOPS for UAT Aircraft Surveillance Applications nation’s busiest airports. However, the ADS–B). Additionally, DO–282B was System (ASAS), 57 and the FAA is reduced NACP requirement in this rule, developed in accordance with Annex 10 currently developing a TSO to utilize while sufficient for ADS–B Out, is not to the convention of international civil this RTCA standard. sufficient for all aircraft to use in ASSA aviation. As such, individual states are and FAROA. R. ADS–B in Applications allowed to invoke these standards as S. International Harmonization their own requirements. Multiple commenters, including SANDIA, asked for more information Several commenters stated that the T. Backup ATC Surveillance about potential ADS–B In applications. ADS–B program technical standards and In the NPRM, the FAA described an This information is provided below. requirements in the NPRM may be ADS–B backup strategy that included a exclusive of, and not harmonized with, reduced network of SSRs to support 1. Surface Situational Awareness With ICAO and international efforts under high-density terminal airspace, all en Indications and Alerting way in Europe, Australia, and Canada. route airspace above 18,000 feet MSL, Several individual commenters and and medium-density terminal airspace This application is being designed to AOPA questioned the interoperability of provide information regarding potential above certain altitudes. In the proposal, UAT in international airspace, the FAA noted that it intends to retain traffic conflicts on or near the airport including Canada and Mexico. They all primary surveillance radar as a surface to the flightcrew. The ADS–B In also questioned the applicability of UAT means to mitigate single-aircraft cockpit display would indicate the through ICAO Standards and avionics failures. relevant runway occupancy status. Recommended Practices (SARPs). The Several aviation associations, air Depending on the severity of the ARC recommended that the FAA carriers, pilots, and various other conflict, the system would alert the advocate national policies that organizations commented on the flight crew with visual and/or audible explicitly allow for the use of non-U.S. proposed backup strategy. The alerts. positioning sources (for example, commenters suggested several potential Galileo) as part of the infrastructure to 2. In-Trail Procedures alternatives including Automatic meet aviation performance Dependent Surveillance—Contract This application is being designed to requirements. (ADS–C), long range navigation facilitate aircraft conducting oceanic in- The FAA fully supports the need for (LORAN), enhanced long range trail flight level changes using a reduced international regulators to focus on a navigation (eLORAN), fusion, and separation standard. This application global interoperability of ADS–B multilateration. should improve the use of oceanic through the continuing development of Some commenters, including UPS airspace, increase efficiency, reduce fuel standards for equipment, applications, and United Airlines, recommended that consumption, and increase safety by flight procedures, and operating rules. the FAA develop a backup system that helping flightcrews avoid turbulent The RTCA standards for DO–260B and not only backs up surveillance, but also flight levels. With this application, ATC DO–282B (referenced in TSO–C166b works in a fusion process to increase the will continue to provide procedural and TSO–C154c) were developed with accuracy, integrity, and availability of close international cooperation. The non-radar separation services. However, the primary surveillance system. Boeing FAA supports the RTCA/European the FAA is exploring whether recommended that during RAIM Organization for Civil Aviation outages, ADS–B could broadcast controllers would be able to allow flight Equipment (EUROCAE) Requirements level changes where aircraft are position data derived from a flight Focus Group, which is internationally management system or an inertial separated by only 15 NM during climb coordinating ADS–B In. Additionally, navigation system. Other commenters or descent, instead of 100 NM in use the FAA actively meets with questioned whether there was a robust today. EUROCONTROL, the Australian Civil and fully independent airborne- or 3. Interval Management Aviation Safety Authority, and ground-based backup timing system in Transport Canada to internationally the event of GPS timing signal loss. The This application is intended to coordinate ADS–B regulation. DOD contended that the backup must be improve current merging and spacing The FAA has structured the ADS–B able to support planned GPS electronic capabilities to ensure more consistent Out program on performance testing and solar flare activity. aircraft spacing, and potentially increase requirements and not a specific Several commenters opposed having airspace capacity. With this application, navigation or positioning source. The one interdependent service for both controllers would issue a different set of FAA is proposing harmonized navigation and surveillance. They instructions to pilots, for example, to requirements for aircraft separation to believed that this combination of maintain a given time or distance from ICAO, with the support of Australia, navigation and surveillance could be the preceding aircraft. The flight crews Canada, and EUROCONTROL. The detrimental when a pilot experiences a will then use ADS–B In information to United States is working with other GPS outage while operating in adjust their airspeeds or flight paths to GNSS providers to ensure system instrument meteorological conditions. maintain the instructed separation. interoperability, improve performance, The ARC recommended that the FAA, and reduce costs for integrated receiver in coordination with other Government 57 ASAS provides the platform for the processing equipment. This rule does not prohibit agencies, develop an integrated and display of ADS–B In applications. the use of international GNSS; any communication navigation and

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surveillance (CNS) strategy to address strategies for mitigating the impact of U. Privacy GNSS interference and outages. the loss of GPS on ADS–B surveillance. The NPRM proposed requiring a Various entities also questioned the The analysis identified a reduced message element to transmit the procedures that would be in place for network of SSRs as the recommended aircraft’s assigned 24-bit ICAO address. aircraft operating with a NACP value of backup for ADS–B. This strategy retains Many commenters, including AOPA less than 9. One individual asked how all existing en route SSRs (150) and and Rockwell-Collins, strongly argued the system will accommodate aircraft approximately 50 percent of SSRs in against ADS–B Out broadcasts of without ADS–B, if an entire broadcast high-density terminal areas (40). identifiable data, including aircraft tail link is inoperable. The FAA will provide ATC separation The FAA assessed numerous number and operator name. These services for aircraft meeting the technologies as part of this analysis, commenters argued that the information minimum ADS–B-required performance including: Multilateration; eLORAN; could be used to continuously watch all aircraft and ultimately could be used by parameters (NACP, NACV, NIC, SDA, distance measuring equipment (DME); and SIL) for airspace subject to this rule. DME/inertial reference units; satellite- the FAA for enforcement or assessing user fees. Certain commenters argued in If, during flight, an individual aircraft based augmentation systems; ground- favor of retaining the anonymous mode does not meet the minimum ADS–B- based augmentation systems; and required performance parameters, then for VFR operations because aircraft various combinations and identification is only required for ATC ATC may provide separation services implementations of these technologies. using the backup (for example, radar purposes. The FAA determined the backup Commenters suggested several where available and procedural strategy based on the most effective separation elsewhere). This transition alternatives: (1) Use UAT’s privacy tradeoff between performance, schedule, message function (which allows the will be seamless because secondary and cost factors among airborne and surveillance data will be one of several pilot to select ‘‘VFR’’ mode) to have the ground segments of the NAS surveillance sources fused into the UAT system randomly select a 24-bit architecture. display used by ATC. ICAO address; (2) require manufacturers The ADS–B ground automation This backup strategy will support to design ADS–B systems that archive combines or ‘‘fuses’’ all available continued use of the separation data onboard, and advise pilots to surveillance information from ADS–B standards in effect today. However, for archive the data so there is an with primary surveillance radar and select areas experiencing degraded independent data source that SSR. This provides a complete or surveillance coverage during an outage, corroborates government data; and (3) ‘‘fused’’ picture of all the traffic ATC may increase aircraft separation as design a system host configuration operating in a given area. Multi-sensor operationally required.59 The FAA protocol to assign transponder codes through a unique address when the fusion allows the automation to concludes that these operational UAT or 1090 MHz ES is turned on. They combine data from various sensors, and capabilities are sufficient, given that use the most accurate measurements. In contended that this would allow a loss of required position information is network to eliminate system duplicity most cases, a Kalman Filter Tracker expected to be a rare event. optimizes the accuracy of track and guarantee anonymity to the pilot of estimates from multiple sensors. In In meeting the performance standards the aircraft (therefore, the 24-bit Mode S addition to improved aircraft position adopted by this rule, an aircraft’s identifiers would no longer be needed). accuracy, data fusion uses all the navigation and surveillance functions The ARC made three updates from multiple sensors, which may be dependent on the same position recommendations regarding privacy: (1) increases the overall update rate. The source. Using GNSS technology for The FAA should treat the 24-bit ICAO FAA currently uses practical trackers for ADS–B provides for improved code assignments as information data fusion with the Common- performance (i.e., increased update rate, covered under privacy laws, so they are Automated Radar Terminal System and increased accuracy at long range, and available only to authorized personnel the Standard Terminal Automation cleaner surveillance picture to ATC) or released by the holder; (2) the FAA Replacement System. over other surveillance systems and should use the anonymity feature of If the ADS–B ground infrastructure or allows for a more flexible ground UAT and develop an equivalent a particular broadcast link is out of infrastructure. anonymity feature for 1090 MHz ES that service, or a sufficient number of aircraft would apply to VFR operations not cannot meet the minimum required The risks posed by this dependency using ATC services; and (3) the FAA performance for a given airspace and have been accepted because the should accommodate assignment of the controller workload is adversely navigation and surveillance functions 24-bit ICAO codes so that they do not impacted, ATC will use the backup have independent backup systems. In easily correlate to an aircraft tail number system to provide ATC separation evaluating the options, the FAA and they permit aircraft call signs to be services for all aircraft in that airspace. specifically considered the scenario in something other than the aircraft Transition to the backup strategy will which the satellite positioning source registration number when receiving not impact the ability of ATC to provide failed. As a result, the FAA determined ATC services. separation services to the operator. that an effective backup system could The FAA reviewed all the comments The FAA completed the Surveillance/ not also be satellite-based. The FAA regarding privacy and notes that most of Positioning Backup Strategy further determined that these backup the commenters specifically addressed 58 Alternatives Analysis on January 8, capabilities ensure sufficient navigation VFR operations. The FAA notes that 2007. This study included a and surveillance capabilities during a there is no right to privacy when comprehensive analysis of various positioning source outage and maintain operating in the NAS. The FAA appropriate levels of safety. specifically designates airspace for 58 It is important to recognize that this is a which the identification of aircraft is performance-based rule and does not require GNSS. For the purpose of the backup strategy evaluation 59 The standard for reverting to backup necessary, so that the agency can the FAA assumed that users would equip with a surveillance is also discussed in H.2, System effectively separate aircraft. The GNSS as their position source. Availability. transponder rule specifies that an

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aircraft operating in airspace designated alleged that security safeguards are SCAP, the system is tested annually for in § 91.215 must have ATC transponder needed for ADS–B to protect aircraft security compliance, and every 3 years equipment installed that meets the from terrorist attacks. the system goes through an entirely new performance requirements of TSO– Other commenters argued that an SCAP. In addition, the FAA specifically C74b, TSO–C74c, or TSO–C112. aircraft’s ADS–B transmissions or GPS assessed the vulnerability risk of ADS– Many GA aircraft are equipped with position/timing signals could be subject B broadcast messages being used to Mode C, which has the capability to to inadvertent or intentional target air carrier aircraft. This squawk 1200 and meets the interruption or loss of the GPS timing assessment contains Sensitive Security requirements of § 91.215, without signal. Several commenters Information that is controlled under 49 specifically identifying the aircraft. recommended a planned oversight CFR parts 1 and 1520, and its content Most of these commenters are seeking feature (for example, requiring ADS–B is otherwise protected from public similar treatment under ADS–B so that ground receivers to be licensed) to disclosure. While the agency cannot ATC can track the aircraft without ensure that only authorized personnel comment on the data in this study, it specifically identifying the aircraft. access the data collected, and that the can confirm, for the purpose of TSO–C154c includes a feature to data is only accessed for authorized responding to the comments in this temporarily and randomly assign a 24- purposes. The DOD recommended that rulemaking proceeding, that using ADS– bit address for UAT-equipped aircraft. the FAA work with DHS and the DOD B data does not subject an aircraft to any This rule does not prohibit the use of to determine ADS–B risks and increased risk compared to the risk that this feature. UAT-equipped aircraft appropriate countermeasures. is experienced today. As part of this conducting VFR operations that have The FAA conducted several analyses process, the FAA forwarded the not filed a flight plan and are not on the security aspects of ADS–B. These assessment to its interagency partners, requesting ATC services may use this analyses include the information system including the DOD, the Transportation feature. Although the FAA does not for collecting data, transmitting and Security Administration, the Federal prohibit the anonymity feature, storing data, as well as risk assessments Bureau of Investigation, the United operators using the anonymity feature on the vulnerability of ADS–B broadcast States Secret Service, and other will not be eligible to receive ATC messages. All FAA information, appropriate agencies for review. These services and will not be able to benefit including ADS–B transmissions entities evaluated the modeling from enhanced ADS–B search and received by the FAA, that is collected, approach, analysis, and risk outcome. rescue capabilities. TSO–C166b does processed, transmitted, stored, or They did not identify any reason to not include a feature to accommodate disseminated in its general support invalidate the analysis which anonymous 24-bit addresses. Should systems and applications is subject to determined that ADS–B data does not safety or efficiency of the NAS so certification and accreditation, under increase an aircraft’s vulnerability. The National Institutes of Standards and require, the FAA could initiate FAA commits to annual updates of this Technology (NIST) information rulemaking to prohibit an operator from assessment to monitor any changes in technology standards. It is a continuing using the anonymity feature. the underlying assumptions in the risk process that protects the confidentiality, Additionally, if the FAA, in analysis, and to monitor new threat integrity, and availability of the coordination with the Department of information that becomes available. Homeland Security (DHS), determines information. The FAA concludes that ADS–B that the anonymity feature is an The FAA’s Security Certification and transmissions would be no more unacceptable risk to security, the FAA Accreditation Procedures (SCAP) were susceptible to spoofing (that is, could initiate rulemaking to prohibit an developed in accordance with Federal intentionally broadcasting a false target) operator from using the anonymity law, including: (1) The Federal or intentional jamming than that feature. Information Security Management Act This rule does not implement any of 2002, (2) OMB Circular A–130 experienced with SSR transmissions type of user fee. Subsequent agency (Management of Federal Information (Mode A, C, and S) today. Spoofing of rulemaking would be necessary to Resources), (3) Federal Information false targets and intentional jamming establish such fees. Furthermore, this Processing Standards 199, and (4) NIST very rarely occur with the surveillance rule does not affect the process for the Special Publications (SP) 800–37 (Guide systems in place today. FAA assigning the 24-bit ICAO codes. for the Security Certification and The ADS–B transmission signals from The FAA has not determined that Accreditation of Federal Information aircraft will be fused with surveillance archiving data onboard the aircraft is Systems), NIST SP 800–53 data from both primary and secondary necessary for ATC surveillance. (Recommended Security Controls for radars before it is displayed for ATC. However, this rule does not preclude Federal Information Systems), and NIST The controllers, therefore, are receiving manufacturers from designing SP 800–53A (Guide for Assessing the and viewing a composite of aircraft data equipment with this function. Security Controls in Federal Information from multiple surveillance systems. The Systems). FAA does not expect spoofing and V. Security The FAA completed the SCAP for the jamming to occur during the transition Various commenters, including the ADS–B system originally in September to using this fused data for surveillance. DOD, commented on the security 2008. The FAA completed a new SCAP This is because the automation will aspects of the ADS–B system. They in October 2009 as a result of changes reveal the discrepancy between a contended that, as ADS–B will made to the ADS–B system. This spoofed or jammed ADS–B target and broadcast the location and identity of process ensures that ADS–B does not the target reported by radar and SSR users, malicious parties could monitor introduce new security weaknesses. It position reports. Fusion also provides transmissions from the aircraft and ATC also ensures that the hardware and for a smooth transition to backup to obtain information to target and harm software composing the ADS–B system surveillance if an ADS–B system is the aircraft. Another commenter stated meets rigid and well-documented experiencing interference. Furthermore, that the ADS–B information could be standards for infrastructure security. encryption of any ADS–B data would used by an unmanned aircraft to target ADS–B meets all qualifications and unnecessarily limit its use passenger aircraft. Some commenters mandates of this process. As part of the internationally.

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The FAA also concludes that OPDs, which have lower energy and design parameters for ADS–B avionics, additional certification and emissions profiles. Unlike radar and including size, weight, and power accreditation of ground equipment will multilateration, ADS–B provides more consumption. not be necessary because of the strict detailed flight information (for example, The FAA again notes that this is a SCAP provision certifying that crucial update rate, velocity, and heading) that performance-based rule and does not information and equipment are not supports ground-based merging and mandate a particular system or design available to unauthorized individuals. spacing tools. These tools use this specifications (including size, weight, or The FAA finds no basis at this point information to determine optimal tracks power consumption). A performance- that ADS–B Out provides any greater for ATC arrival planning. based rule provides industry with the security risks to air navigation systems FIS–B and TIS–B provide the uplink opportunity to use innovative to the United States. The FAA continues of weather and traffic information to the approaches in designing ADS–B to meet regularly with DOD and DHS cockpit. Equipping with the necessary avionics to meet the needs of their representatives regarding the use of ADS–B In avionics (receiver and display customers. ADS–B information and national components) is voluntary for operators security issues. and is not required by the ADS–B rule. Z. Economic Issues W. Alternatives To ADS–B The FAA analyzed alternative sources The FAA updated the cost and benefit for weather and traffic information. estimates in the final regulatory impact The NPRM compared: (1) Radar as it Individually, these alternative sources analysis for this rule. For a summary of exists today, (2) multilateration, and (3) may be less costly than the ADS–B the final regulatory impact analysis, see ADS–B. In the NPRM, the FAA’s solution. However, the FAA’s analysis Section III. The full final regulatory alternatives analysis found radar to be showed that the bundling of impact analysis may be found in the the most cost-effective solution; surveillance, weather, and traffic docket for this rulemaking. The however, radar would neither be information is cost-effective for users following section discusses comments effective in supporting air traffic growth who have not already invested in the FAA received on the proposal’s over time nor provide the necessary alternative capabilities. The FAA regulatory evaluation. Where technical capabilities to support the compared the costs and benefits of appropriate, the discussion includes NextGen concept of operations. ADS–B, multilateration, and radar, as Several commenters indicated that the information on the updated costs and well as the cost savings for bundling benefits for this final rule. existing radar system is sufficient for services. A report (‘‘Exhibit 300, operations. Some commenters suggested Attachment 2, Business Case Analysis 1. ADS–B Out Equipage Cost expanding the radar infrastructure or Report for Future Surveillance, JRC implementing an alternative reporting The FAA estimated that costs for the Phase 2a’’) is available in the docket for system using commercial off-the-shelf proposed rule would be between $2.3 this rulemaking. technologies that have a means to billion and $8.5 billion. The FAA also In sum, none of the alternatives offers considered that industry would start to encode and transmit GPS position data. the range of capabilities nor supports Other commenters believed that incur equipage costs in 2012, ranging the NextGen concept of operations as multilateration could provide similar from $1.27 billion to $7.46 billion. In well as ADS–B. benefits to ADS–B at a potentially lower the final rule, the FAA estimates total cost. Boeing requested that the FAA X. ADS–B Equipment Scheduled costs to range from $3.3 billion to $7.0 provide an analysis explaining its Maintenance billion, and industry equipage costs to range from $2.5 billion to $6.2 billion. conclusion that multilateration would The NPRM did not propose any not provide the same level of benefits as additional continuing airworthiness Several commenters, including ATA, ADS–B. ATA specifically stated that requirements associated with the Boeing, British Airways, Delta Airlines, they do not believe multilateration is a installation of ADS–B avionics EAA, Honeywell, NBAA, and the viable alternative; however, it can equipment. A few commenters Regional Airline Association (RAA), provide highly accurate position reports questioned the FAA’s plan for questioned specific cost estimates in the for surface ADS–B In applications. continued airworthiness inspections for proposal’s economic analysis or asked Several commenters objected to the ADS–B equipment. for more information about the cost and prohibitive cost of upgrading the This final rule does not add any benefit estimates. Most of the avionics with ADS–B because there are continuing airworthiness inspection commenters believed that equipage commercial products currently available requirements. Transponder-based ADS– costs for ADS–B Out would exceed the that provide real time weather and B systems will still be required to meet estimates provided in the proposal. traffic information. the requirements of § 91.413. However, Several commenters, including The agency has determined that the ADS–B systems, without a transponder, AOPA, EAA, Embraer, and the United improved accuracy and update rate do not have any new inspection States Parachute Association, stated that afforded by ADS–B is a critical segment requirements. The FAA will use the the cost to equip with ADS–B Out was of the NextGen infrastructure and ground automation system to too high. Commenters pointed out that, capabilities that offer the opportunity to continuously monitor ADS–B given the value of most GA aircraft, the make the system more efficient. functionality, which accomplishes the cost of equipage could represent a Specifically, enhanced surveillance data purposes of a recurrent inspection. significant percentage of, or possibly via ADS–B will improve the exceed, the current value of the aircraft. performance of ATC decision-support Y. Specific Design Parameters Some commenters noted that costs of tools (URET and TMA) which rely on In the NPRM, the FAA proposed this magnitude could make recreational surveillance data to make predictions. performance standards for ADS–B Out, or business flying cost-prohibitive. The end result will be fewer, more but did not specify any specific design Some commenters, including FedEx, efficient reroutes to avoid potential parameters. noted that equipage costs will be conflicts, as well as improved metering Several commenters, including the significantly higher for aircraft not into the terminal area. This will allow EAA, and the United States Parachute currently equipped with a certified increased and more efficient use of Association, recommended specific GPS/WAAS position source.

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For the proposed rule, the FAA The ADS–B program is not expected Services Benefits Basis of Estimates’’ 60 contacted manufacturers, industry to result in a cost savings to the FAA (SBS BOE) report. associations, and ADS–B Out suppliers from 2009 through 2035. As ADS–B The FAA agrees with Boeing that if to estimate ADS–B equipage and becomes operational, the FAA plans to the costs of ADS–B Out avionics are at maintenance costs by aircraft model. decommission some SSR. While this the high end of our estimates and if The proposal included industry will reduce the operational costs of ADS–B In avionics are more expensive estimates for the cost of installation, maintaining radar, the FAA will incur than ADS–B Out avionics, then the costs maintenance, additional weight, and the additional costs for ADS–B ground estimated for ADS–B Out and In will addition of ADS–B Out equipment to stations. This results in a net increase in exceed the quantified benefits, given the meet the performance mandate. The cost for the FAA. assumptions in the economic proposal’s regulatory impact analysis evaluation. The FAA also notes that at 3. Business Case for ADS–B Out and In also assumed that all active airframes in a 7 percent present value with the service would be retrofitted by 2020. In the NPRM, the FAA estimated that assumptions in the economic evaluation The FAA expects that the increased the total costs of ADS–B Out and In (i.e., if industry costs for ADS–B Out demand for the ADS–B Out equipment (excluding avionics for ADS–B In), avionics are at the high end of the required by this performance-based rule relative to the radar baseline, would range), then ADS–B Out and In will not will result in a more competitive range from $2.8 billion to $9.0 billion. be cost-beneficial. The FAA does not market, such that the prices may The FAA further estimated that ADS–B agree that the estimates in the regulatory decrease in the coming years for certain Out and In would yield $13.8 billion in impact analysis need to be consistent aircraft groups. The FAA also total benefits. with the estimates in the SBS BOE anticipates that any investment in ADS– report. The economic analysis quantifies B Out equipage will increase the The FAA concluded that ADS–B Out and In would be cost beneficial at a the potential benefits that the FAA residual value of that aircraft and will expects to result from adoption of the allow easier access to the regulated present value of 7 percent, if: The avionics costs for ADS–B Out are low rule. The economic analysis does not airspace. include benefits that could be realized The FAA agrees that equipping ($670 million at a 7 percent present value) and the avionics costs for ADS– without the rule. aircraft with ADS–B Out will cost more Specifically, the regulatory impact for those aircraft that are not equipped B In do not exceed $1.85 billion at a 7 percent present value. analysis did not include benefits from with a position source capable of ADS–B in Alaska or for low altitude As stated in the NPRM, ADS–B Out providing the necessary accuracy and operations in the Gulf of Mexico and In would be cost beneficial at a 3 integrity. To capture this cost in the because these benefits would occur percent present value if: (1) The proposal, the FAA requested that without the rule. The regulatory avionics costs for ADS–B Out are low industry categorize large category evaluation also did not include benefits ($950 million at a 3 percent present turbojet airplanes by classic, neo-classic, related to controlled flight into terrain value) and the avionics costs for ADS– modern, and new production classes, as because terrain avoidance warning B In do not exceed $5.3 billion at a 3 well as the existing level of airplane systems currently provide these percent present value or (2) the avionics equipage for each class. However, due to benefits. Other benefits that the FAA costs for ADS–B Out are high ($5.35 the confidentiality of cost data, the did not consider in the proposal, but are billion at a 3 percent present value) and regulatory evaluation does not present in the SBS BOE, include: An estimate of the avionics costs for ADS–B In do not ADS–B-supplier level data details. The the reduction in FAA subscription exceed $870 million. FAA fully acknowledges that the charges because of value added services general aviation community will incur Boeing asked for further clarification and a reduction in costs to obtain significant costs from this rule. of scenarios in which ADS–B may not weather information. However, this must be balanced against be cost beneficial. Specifically, Boeing In addition, the regulatory impact the foundation this capability provides referred to the 3 percent present value analysis did not specifically include a in moving toward the NextGen estimate in the NPRM with high benefit for radar system replacement infrastructure and benefits from its avionics costs. Boeing noted that it does cost avoidance. Rather, the FAA overall usage. not believe ADS–B In avionics costs will compared the total cost of continuing 2. FAA Cost Savings With ADS–B Out be less than ADS–B Out avionics costs. full radar surveillance (the baseline) to Compared to Radar Boeing also asked for the cost beneficial the cost of providing surveillance with values of ADS–B Out and In at a 7 The FAA considered the following ADS–B. This included the costs of percent present value if avionics costs gradually discontinuing some radar and three systems for future NAS are high. surveillance: (1) Radar, (2) continuing some radar as a backup. The Boeing suggested that the FAA multilateration, and (3) ADS–B. The lower costs of radar (what is referred to conduct a thorough cost-benefit analysis FAA explained in the proposal that as ‘‘surveillance cost avoidance’’ in the for the ADS–B program, including radar was the lowest cost option. Based SBS BOE) were captured in the cost accurate cost estimates for ADS–B In. on forecasts at the time of the NPRM, comparison of radar under the baseline Boeing further recommended that if the the FAA did not expect that radar could and radar under the ADS–B Out FAA cannot determine the costs accommodate the projected increase in scenario (the rule). associated with ADS–B In, the FAA traffic. The draft regulatory impact analysis Several commenters, including EAA should not include these costs and released with the NPRM included a and RAA, stated that the ADS–B benefits in the economic analysis. cost-benefit analysis of ADS–B Out program would result in a cost savings Boeing also questioned why the FAA alone, as well as for the scenarios for to the FAA because it would have less estimated the benefits for ADS–B Out ADS–B Out and In. For the final rule, radar to maintain, operate, and replace. and In at $13.9 billion in the proposal, while the FAA estimated the ADS–B 60 This report was published in August 2007. A Most of the commenters claimed that copy of this report is available from the Web site the ADS–B program would shift costs Out and In benefits at $18.5 billion in http://www.regulations.gov. To find the report, from the FAA to aircraft operators. the ‘‘Surveillance and Broadcast enter FAA–2007–29305–0013.1 in the search box.

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the FAA also queried industry for allow for more efficient handling of benefit from fuel savings that the FAA equipage costs for ADS–B Out and In. potential en route conflicts. In the expects ADS–B surveillance will Although the FAA initially attempted to NPRM, the FAA estimated this would provide. capture the benefits for ADS–B In, upon save 410 million gallons of fuel and In the proposal’s benefit analysis, the further consideration the agency has eliminate 4 million metric tons of FAA quantified the benefits that ADS– determined that the performance carbon dioxide emissions. The FAA also B alone will provide over current, requirements are not sufficiently noted in the initial regulatory impact recognized OPD procedures. The agency developed to conduct a meaningful analysis that, during this same time agrees that the efficiency benefits are, in analysis. The FAA has not included period, continuous descent approaches part, conceptual, and with new ADS–B In costs and benefits in the final (now referred to as OPDs), would allow technologies, conceptual efficiency regulatory impact analysis. for a 10 billion pound fuel savings and benefits analysis is the only option. 4. Improved En Route Conflict Probe a 14 million ton reduction in carbon While outside the scope of this Benefit Performance dioxide emissions. Furthermore, the rulemaking, as noted by a commenter, FAA noted that optimal routing over the In the NPRM, the FAA estimated the the RVSM program offers an example of Gulf of Mexico would eliminate 300,000 how airspace redesign and new benefit for en route conflict probe at metric tons of carbon dioxide emissions 61 technological capabilities can result in $3.3 billion. To calculate this savings, between 2012 and 2035. In the final the FAA estimated the reduction in ATC significant efficiency and operational regulatory impact analysis, the FAA (fuel savings) gains. vectors resulting from improved en estimated a net reduction in carbon route conflict probe. Then, the FAA dioxide emissions attributable to the 6. Deriving Benefits From Capstone attributed this time savings to direct rule and calculated a monetary value to Implementation in Alaska aircraft operating costs and the this net reduction. See the full In the NPRM, the FAA explained that passenger value of time. regulatory impact analysis for details. Several commenters questioned the ADS–B has been demonstrated and used A few commenters, including RAA, improved en route conflict probe benefit in Alaska for terrain and traffic questioned the cost savings associated estimates. The commenters noted that awareness, and that it had a noticeable with more efficient flights using ADS– the amount of time saved per passenger effect on safety. Several commenters B. Some of these commenters also asked was low, compared to other delays in argued that Capstone is an insufficient the FAA to remove the discussion on the overall travel environment (for basis to assume benefits from ADS–B reduced carbon dioxide emissions example, late arrivals at the airport and equipage. The commenters noted that because the efficiency and fuel saving waiting for baggage). They Capstone is a strong component of the claims have not been validated. recommended that the FAA delete the justification for the system; they added RAA noted that the FAA has passenger value of time from its benefit that a major component of Capstone is considerable experience justifying rules estimate. the addition of terrain information and that enhance safety, but suggested that The FAA does not agree that the warnings. Commenters also noted that the FAA is not experienced in justifying passenger value of time should be the flight environment in southeast rules based on increased airspace removed from its benefit estimate and Alaska is unlike any in the lower 48 capacity and fuel savings. RAA asked therefore includes it in the final states. regulatory impact analysis. There has the FAA to validate whether the The FAA understands that the been significant discussion about reduced vertical separation minimum whether small increments of time (RVSM) program reduced fuel conditions in Alaska do not translate to should be valued at lower rates than consumption, as estimated in the RVSM the continental United States. While the larger increments. The present state of regulatory evaluation. RAA also noted regulatory impact analysis does not theoretical and empirical knowledge that the benefit analysis should quantify include any benefits from Capstone, the does not appear to support valuing the benefits that ADS–B would provide rulemaking action does highlight the small increments of time less than larger over current descent procedures enabled potential benefits derived from more ones.62 without ADS–B. accurate and timely positioning GAMA and an individual commenter information from ADS–B. 5. Capacity Enhancements, Airspace noted the environmental impact of 7. Regional Airline Benefits Efficiency, and Fuel Saving Benefits airspace modernization. GAMA In the NPRM, the FAA estimated that encouraged the FAA to provide In the NPRM, the FAA quantified the between 2017 and 2035, ADS–B would additional details and quantify the benefits as shown in Table 4.

TABLE 4—ESTIMATED BENEFITS INCLUDED IN THE NPRM REGULATORY EVALUATION

Benefit 2007 Discounted at Discounted at Benefit area M$ 3% 7%

Total Benefits ...... $9,948.5 $5,484.3 $2,657.7 Gulf of Mexico: High Altitude Operations ...... 2,067.2 1,104.4 509.9 More Efficient En Route Separation Delay Savings ...... 1,810.6 946.1 421.3 Additional Flights Accommodated Optimal and More Direct Routing ...... 256.6 158.4 88.6 Improved En Route Conflict Probe Performance ...... 3,258.1 1,774.0 840.1 More Efficient Metering Based on Improved TMA Accuracy ...... 1,746.6 944.9 441.1 Increased Ability to Perform Continuous Descent Approaches ...... 2,876.7 1,661.0 866.6

61 This translates to $840 million at a 7 percent 62 Economic Values For FAA Investment and present value or $1.8 billion at a 3 percent present Regulatory Decisions, A Guide, Final Report value. Revised Oct. 3, 2007, GRA Incorporated.

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RAA expressed concern that regional The FAA considered three options to minimized. Specifically the FAA operators do not have equal access to resolve the GA cost benefit comments. considered limiting the rule to only large airports; therefore, they will not First, the FAA considered modifying Class A and B airspace. Although ADS– achieve the same benefits as larger air performance requirements to reduce B surveillance is not as critical to the carriers. RAA specifically noted that the equipage costs. Second, the FAA NexGen goals in lower density airspace, FAA has not committed to a measurable evaluated options to provide additional such as Class E airspace above 10,000 reduction in aircraft-to-aircraft benefits to GA operators. Third, the feet and Class C airspace, ADS–B separation standards. They believed that FAA explored tailoring the rule such equipage for all aircraft in these areas is without reduced separation standards, that fewer GA operators would be essential to gaining the overall stated the benefits would be localized and affected. ADS–B benefits, realizing savings would not apply to regional airlines. For the first option, the FAA associated with radar RAA also noted that regional aircraft determined that opportunities do exist decommissioning,64 the expansion of typically do not carry life rafts and, for reducing the equipage costs for GA potential future benefits discussed therefore, they cannot conduct extended operators. In the rule, the FAA bases the above, and moving towards the NextGen over-water operations. As a result, they performance requirements solely on concept of operations. Thus, the will not benefit from more efficient ATC separation services; whereas in the airspace subject to this rule remains aircraft separation over the Gulf of proposal, the performance requirements unchanged. Mexico. were based on ATC separation services AA. Revisions To Other Regulations The FAA agrees that regional and five initial ADS–B In applications. operators who cannot operate over the This change eliminated the need for Several commenters, including ACI– Gulf of Mexico will not attain this ADS–B antenna diversity because the NA, ACSS, ATA, United Airlines, and separation benefit. However, the FAA ATC separation services can operate UPS, recommended changes to other did not estimate benefits specifically for effectively without it and the ADS–B regulations. Specifically, they regional carriers. The agency expects Out benefits can be achieved. Multiple recommended that the FAA update regional airlines to benefit from ADS–B commenters and the ARC felt that subpart F of 14 CFR part 25 to include Out even without reduced aircraft-to- removing antenna diversity would help ADS–B requirements. ACI–NA aircraft separation standards. This is make the rule cheaper to implement for recommended that the FAA amend 14 because other benefits, including light general aviation operators. CFR part 139 to require airport surface For the second option, using improved en route conflict probe vehicles to equip with ADS–B to comments received by the GA performance, apply to all aircraft in prevent runway incursions. Airbus community, the FAA has identified Class A airspace, including regional recommended that the FAA update opportunities to provide additional airlines. advisory circular (AC) 120–86, Aircraft benefits to GA operators by expanding Surveillance Systems and Applications. 8. General Aviation: High Equipage ADS–B services throughout the NAS to This rule only amends the operating Costs With Little Benefit areas not currently serviced. Thus, regulations in part 91. At this point, the outside of this rulemaking effort, the FAA has not identified any ADS–B Out In the proposal, the FAA estimated FAA intends to explore the costs and requirements for parts 23, 25, 27, and that the total cost to equip GA aircraft benefits for the following ADS–B 29. The FAA will issue the appropriate from 2012 through 2035 would range enabled service expansions: aircraft installation and operational from $1.2 billion to about $4.5 billion (a) Expanding low altitude guidance material consistent with the with a mid-point average of nearly $2.9 surveillance coverage, both in areas 63 requirements of this rule upon issuance billion. Although the FAA did not receiving increased collateral coverage or shortly thereafter. The FAA is specifically estimate GA benefits in the from the initial ADS–B ground station discussing with airports and the Federal NPRM, the agency now estimates that infrastructure and in areas that could Communications Commission whether GA could receive up to $200 million in benefit from additional ground station ADS–B would benefit airport ground ADS–B Out benefits. coverage. vehicles. Numerous commenters, including (b) Providing radar-like terminal ATC AOPA and EAA, expressed concern that services at airports not currently served. III. Regulatory Notices and Analyses the proposed rule would require GA (c) Providing an automated A. Paperwork Reduction Act operators to add costly equipment to mechanism for the closure of IFR flight As required by the Paperwork their aircraft, while providing these plans based on the new technologies Reduction Act of 1995 (44 U.S.C. operators with few benefits. GAMA ability to detect an aircraft’s arrival at its 3507(d)), the FAA submitted a copy of noted that many of the benefits for GA destination airport. the new (or amended) information operators exist with ADS–B In. Several (d) Making enhancements to current collection requirement(s) in this final of the commenters noted that GA search and rescue technology and rule to the Office of Management and aircraft do not substantially contribute procedures that will assist rescue Budget (OMB) for its review. OMB to delays or congestion in the NAS. personnel in determining the last assigned the number 2120–0728 in They further stated that if ADS–B known location of aircraft that are advance, but has not yet approved the lessens traffic delays, it will benefit the reported missing. collection. Affected parties do not have airlines rather than the GA community. (e) Providing Flight Service Stations to comply with the information AOPA recommended that the FAA work (FSSs) with ADS–B positional display collection requirements until the FAA with key stakeholders to identify a information and assisting in the publishes in the Federal Register notice strategy that either removes low-altitude development of automation systems that of the approval of the control number airspace users from the proposal or will allow for more tailored in flight greatly improves the benefits for them. service functions. For the third option, the FAA looked 64 The costs of radar will be about $1 billion less with ADS–B Out, although the total ground costs 63 The FAA also calculated this midpoint to be at tailoring the ADS–B airspace such of ADS–B Out with the cost to sustain and $2.1 billion at a 3 percent present value or $1.5 that the number of general aviation decommission select radar will exceed the cost of billion at a 7 percent present value. aircraft needing to equip would be continuing radar without implementing ADS–B.

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assigned by OMB for these information requirements 65 as related to ADS–B Out action’’ as defined in section 3(f) of requirements. Approval of the control operations and has identified no Executive Order 12866; (3) is number notifies the public that OMB differences with these regulations. The ‘‘significant’’ as defined in DOT’s has approved these information FAA also will continue to work with the Regulatory Policies and Procedures; (4) collection requirements under the international community to ensure will have a significant economic impact Paperwork Reduction Act of 1995. harmonization. on a substantial number of small The FAA received comments on the entities; (5) will not create unnecessary proposed performance requirements for C. Regulatory Impact Analysis, Regulatory Flexibility Determination, obstacles to the foreign commerce of the ADS–B Out aircraft equipment. Those International Trade Impact Assessment, United States; and (6) will impose an comments are discussed in section II, and Unfunded Mandates Assessment unfunded mandate on the private sector Discussion of the Final Rule, elsewhere but not on state, local, or tribal in this preamble. However, the agency Changes to Federal regulations must governments. These analyses are received no comments specifically on undergo several economic analyses. summarized below. the burden associated with collecting First, Executive Order 12866 directs that aircraft transmissions from the ADS–B each Federal agency propose or adopt a Regulatory Impact Analysis Out equipment required by this rule. regulation only upon a reasoned The FAA reviewed the following three A description of the annual burden is determination that the benefits of the alternatives for surveillance and found shown below. intended regulation justify its costs. Alternative 2 (the rule) to be the Use: This final rule will support the Second, the Regulatory Flexibility Act preferred alternative: information needs of the FAA by of 1980 (Pub. L. 96–354) requires 1. Baseline radar—Maintain the requiring avionics equipment that agencies to analyze the economic current radar based surveillance system continuously transmits aircraft impact of regulatory changes on small and replace radar facilities when they information to be received by the FAA, entities. Third, the Trade Agreements wear out; via automation, for use in providing air Act (Pub. L. 96–39) prohibits agencies 2. ADS–B—Aircraft operators equip to traffic surveillance services. from setting standards that create meet performance requirements Respondents: The average number of unnecessary obstacles to the foreign required by the rule and the FAA aircraft that will be equipped annually commerce of the United States. In provides surveillance services based on for the first 3 years—577. The number developing U.S. standards, this Trade downlinked aircraft information. of aircraft (general aviation, regional, Act requires agencies to consider 3. Multilateration—The FAA provides and majors) that will be equipped by international standards and, where surveillance using multilateration. 2035: 247,317. appropriate, that they be the basis of Frequency: ADS–B equipment will U.S. standards. Fourth, the Unfunded Key Assumptions continuously transmit aircraft Mandates Reform Act of 1995 (Pub. L. • All costs and benefits are information in ‘‘real time’’ to FAA 104–4) requires agencies to prepare a denominated in 2009 dollars. ground receivers. The information is written assessment of the costs, benefits, • The final rule will be published in collected electronically, without input and other effects of proposed or final 2010 and have a compliance date of by a human operator. Old information is rules that include a Federal mandate 2020. overwritten on a continuous basis. likely to result in the expenditure by • Present value rates are 3% and 7%. Annual Burden Estimate: Base-case State, local, or tribal governments, in the • Period of analysis: 2009–2035. start-up cost for an ADS–B Out- aggregate, or by the private sector, of Benefits of the Final Rule compliant transponder: $4,371.09 $100 million or more annually (adjusted million (in 2009 dollars). for inflation with a base year of 1995). The benefits of the final rule include An agency may not collect or sponsor This portion of the preamble the dollar value of savings in fuel, time, the collection of information, nor may it summarizes the FAA’s analysis of the net reduction in CO2 emissions, and the impose an information collection economic impacts of this final rule. The consumer surplus associated with the requirement unless it displays a FAA suggests that readers seeking additional flights accommodated currently valid OMB control number. greater detail read the full regulatory because of the rule. The estimated quantified benefits of the rule range B. International Compatibility impact analysis, a copy of which has been placed in the docket for this from $6.8 billion ($2.1 billion at 7% In keeping with U.S. obligations rulemaking. present value) to $8.5 billion ($2.7 under the Convention on International In conducting these analyses, the FAA billion at 7% present value). Civil Aviation, it is FAA policy to has determined that this final rule: (1) Costs of the Final Rule conform to ICAO SARPs to the Has benefits that justify its costs; (2) is maximum extent practicable. ATA, an economically ‘‘significant regulatory The estimated incremental costs of British Airways, and EUROCONTROL the final rule range from a low of $3.3 recommended that the FAA harmonize 65 ICAO references: Procedures for Air Navigation billion ($2.2 billion at 7% present value) this rule with the appropriate ICAO Services—Air Traffic Management, Doc 4444, to a high of $7.0 billion ($4.1 billion at SARPs. Considering that the long-term Amendment 4, (24/11/05) Procedures for Air 7% present value). These include costs Navigation Services—Air Traffic Management; Doc global capabilities of ADS–B are not yet 9694, ICAO Manual of Air Traffic Services Data to the government, as well as to the fully defined, ICAO SARPs will Link Applications; Annex 2, Rules of the Air; aviation industry and other users of the continue to evolve to reflect developing Annex 4, Aeronautical Charts; Annex 6 Part II, NAS, to deploy ADS–B, and are ADS–B applications. In addition, Operation of Aircraft; Annex 11, Air Traffic incremental to maintaining surveillance Services; Annex 15, Aeronautical Information current ICAO SARPs for the 1090 MHz Services; Doc 9689, Manual for Determination of via current technology (radar). The ES and UAT ADS–B links will be Separation Minima; Circular 311, SASP Circular— aviation industry would begin incurring updated to reflect harmonized changes ADS–B Comparative Assessment; Circular 278, costs for avionics equipage in 2012 and to both RTCA and EUROCAE minimum National Plan for CNS/ATM Systems Guidance would incur total costs ranging from Material; Annex 10 Vol. IV, Amendment 82, performance standards, as appropriate, Aeronautical Telecommunications; Doc 9871, $2.5 billion ($1.4 billion at 7% present for ADS–B Out operations. The FAA has Technical Provisions for Mode S Services and value) to $6.2 billion ($3.3 billion at 7% reviewed the existing ICAO Extended Squitter. present value) with an estimated

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midpoint of $4.4 billion ($2.3 billion at • A description of any significant air transportation (i.e., ground based 7% present value) from 2012 to 2035. alternatives to the final rule which radars tracking congested flyways and accomplish the stated objectives of passing information among the control Regulatory Flexibility Determination applicable statutes and minimize any centers for the duration of flights) is and Analysis significant economic impact of the final becoming operationally obsolete. The Introduction and Purpose of this rule on small entities. current system is increasingly Analysis • A summary of significant issues inefficient, and despite decreases in air The Regulatory Flexibility Act of 1980 raised by public comments in response traffic, still subject to significant delays. (Pub. L. 96–354) (RFA) establishes ‘‘as a to the initial regulatory flexibility Resumption of growth will only principle of regulatory issuance that analysis and how the agency resolved aggravate congestion and delays, given agencies shall endeavor, consistent with those comments. the capabilities of the present system. the objectives of the rule and of Reasons Why the Final Rule is Being The current method of handling air applicable statutes, to fit regulatory and Promulgated traffic flow will not be able to adapt to informational requirements to the scale the volumes, density, and approach to Public Law 108–176, referred to as managing air traffic in the future. The of the businesses, organizations, and ‘‘The Century of Aviation governmental jurisdictions subject to need for significant improvements Reauthorization Act,’’ was enacted towards operational efficiency and regulation. To achieve this principle, December 12, 2003 (Pub. L. 108–176). agencies are required to solicit and reduced environmental impacts, as well This law set forth requirements and as resumed growth, will create consider flexible regulatory proposals objectives for transforming the air and to explain the rationale for their significant challenges. Moreover, the transportation system to progress further diversity of aircraft is forecast to grow actions to assure that such proposals are into the 21st century. Section 709 of this ’’ as the use of unmanned aircraft systems given serious consideration. The RFA statute required the Secretary of covers a wide range of small entities, and very light jets are developed for Transportation to establish in the FAA special operations. including small businesses, not-for- a Joint Planning and Development profit organizations, and small The FAA believes that ADS–B Office (JPDO) to manage work related to technology is a key component in governmental jurisdictions. NextGen. Among its statutorily defined Agencies must perform a review to achieving many of the goals set forth in responsibilities, the JPDO coordinates determine whether a rule will have a the NextGen Integrated Plan. This final the development and use of new significant economic impact on a rule is a major step toward strategically technologies to ensure that, when substantial number of small entities. If ‘‘establishing an agile air traffic system available, they may be used to the the agency determines that the rule will that accommodates future requirements fullest potential in aircraft and in the air have such an impact, the agency must and readily responds to shifts in traffic control system. demand from all users,’’ by embracing a prepare a regulatory flexibility analysis The FAA, the National Aeronautics as described in the RFA. Section 603 of new approach to surveillance that can and Space Administration (NASA), and lead to greater and more efficient the RFA requires agencies to prepare the Departments of Commerce, Defense, and make available for public comment airspace use. ADS–B technology not and Homeland Security have launched a final regulatory flexibility analysis only assists in the transition to a system an effort to align their resources to (FRFA) describing the impact of final with less dependence on ground develop and further NextGen. The goals rules on small entities. As the FAA infrastructure and facilities, but also of NextGen, as stated in section 709, Administrator, I certify that this rule creates capabilities for precision and that are addressed by this final rule will have a significant economic impact accuracy, which in turn will make the include: (1) Improving the level of on a substantial number of small system more operationally and safety, security, efficiency, quality, and entities. The purpose of this analysis is environmentally efficient. affordability of the NAS and aviation to provide the reasoning underlying this services; (2) Taking advantage of data Statement of the Legal Basis and FAA determination. Objectives Section 603(b) of the RFA specifies from emerging ground- and space-based the content of a FRFA. communications, navigation, and The FAA’s authority to issue rules Each FRFA must contain: surveillance technologies; (3) Being regarding aviation safety is found in • A description of the reasons why scalable to accommodate and encourage Title 49 of the United States Code. action by the agency is being substantial growth in domestic and Subtitle I, Section 106, Federal Aviation considered; international transportation and Administration, describes the authority • A succinct statement of the anticipate and accommodate continuing of the FAA Administrator. Subtitle VII, objectives of, and legal basis for, the technology upgrades and advances; and Aviation Programs, describes in more final rule; (4) Accommodating a wide range of detail the scope of the agency’s • A description and an estimate of the aircraft operations, including airlines, authority. number of small entities to which the air taxis, helicopters, GA, and This rulemaking is promulgated rule will apply; unmanned aerial vehicles. under the authority described in • A description of the projected The JPDO was also charged to create Subtitle VII, Part A, Subpart I, Section reporting, record keeping and other and carry out an integrated plan for 40103, Sovereignty and Use of Airspace, compliance requirements of the final NextGen. The NextGen Integrated Plan, and Subpart III, Section 44701, General rule including an estimate of the classes transmitted to Congress on December Requirements. Under section 40103, the of small entities which will be subject 12, 2004, ensures that the NextGen FAA is charged with prescribing to the requirement and the type of system meets the air transportation regulations on: (1) The flight of aircraft, professional skills necessary for safety, security, mobility, efficiency and including regulations on safe altitudes; preparation of the report or record; capacity needs beyond those currently (2) the navigation, protection, and • An identification, to the extent included in the FAA’s Operational identification of aircraft; and (3) the safe practicable, of all relevant Federal rules Evolution Plan (OEP). and efficient use of the navigable which may duplicate, overlap, or As described in the NextGen airspace. Under section 44701, the FAA conflict with the final rule; Integrated Plan, the current approach to is charged with promoting safe flight of

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civil aircraft in air commerce by Administration Web site. This was done financial statistics for small entities, it prescribing regulations for practices, to develop an estimate of the total was not feasible to estimate the total methods, and procedures the number of small businesses affected by population of small entities affected by Administrator finds necessary for safety the proposed rule. this final rule. The total population of in air commerce. The FAA agrees that GA operators use U.S. part 91, 121 and 135 operators, This final rule is within the scope of airplanes for indirect business use and with less than 1,500 employees, has the sections 40103 and 44701 because it has determined that this final rule will potential to be large. We used this promulgates aircraft performance have a significant impact on a sample set of small business operators requirements to meet advanced substantial number of small businesses. to develop percentage estimates to apply surveillance needs that will Estimated Number of Small Firms to the U.S. Census Bureau data to accommodate projected increases in Potentially Impacted estimate the population. operations within the NAS. As more These 34 U.S. small entity operators aircraft operate within the U.S. airspace, Under the RFA, the FAA must are a representative sample. The sample improved surveillance performance is determine whether a rule significantly was used to assess the cost impact on necessary to continue balancing air affects a substantial number of small the total population of small businesses transportation growth with the agency’s entities. This determination is typically who operate aircraft affected by this mandate for a safe and efficient air based on small entity size and cost final rulemaking. This representative transportation system. thresholds that vary depending on the sample was then applied to the U.S. affected industry. Census Bureau data on the Small Projected Reporting, Record Keeping Using the size standards from the Business Administration’s Web site to and Other Requirements Small Business Administration for Air develop an estimate of the total number As required by the Paperwork Transportation and Aircraft of affected small business entities. Reduction Act of 1995 (44 U.S.C. Manufacturing, the FAA defined The U.S. Census Bureau data lists 3507(d)), the FAA submitted a copy of companies as small entities if they have small entities in the air transportation the new information collection fewer than 1,500 employees. industry that employ less than 500 requirements in this final rule to the The FAA considered the economic employees. Other small businesses may Office of Management and Budget for its impact on small-business part 91, 121, own aircraft and may not be included in review. See discussion in Section III and 135 operators. Many of the GA the U.S. Census Bureau air elsewhere in this preamble. aircraft that are operating under part 91 transportation industry category. are not for hire or flown for profit, so the Therefore our estimate of the number of Overlapping, Duplicative, or FAA does not include these operators in small entities affected by this final rule Conflicting Federal Rules its small business impact analysis. will likely be understated. The estimate The FAA is not aware that the final This final rule will become effective of the total number of affected small rule will overlap, duplicate or conflict in 2020. Although the FAA forecasts entities is developed below. with existing Federal rules. traffic and air carrier fleets to 2040, our forecasts are of a generic nature and do Cost and Affordability for Small Significant Issues Raised by Public not forecast the number of small Entities Comments to the Initial Regulatory entities. These forecasts also do not To assess the cost impact to small Flexibility Analysis estimate whether an operator will still business part 91, 121 and 135 operators, In the NPRM, the FAA addressed the be in business or will be a small the FAA contacted manufacturers, impact of the proposed rule on small- business entity. Therefore the FAA uses industry associations, and ADS–B business part 91, 121, and 135 operators current U.S. operator’s revenues and equipage providers to estimate ADS–B with less than 1,500 employees. The applies the industry-provided costs to equipage costs. The FAA requested proposal noted that a substantial determine if this final rule will have a estimates of airborne installation costs, number of small entities would be significant impact on a substantial by aircraft model, for the output significantly affected by the proposed number of small entity operators. parameters listed in the ‘‘Equipment rule. The FAA obtained a list of part 91, Specifications’’ section of the Regulatory One individual commented and 121 and 135 U.S. operators from the Impact Analysis. challenged the assumption that only FAA Flight Standards Service. Using To satisfy the manufacturers’ request small businesses directly involved in information provided by the U.S. DOT to keep individual aircraft pricing aviation would be affected. The Form 41 filings, World Aviation confidential, the FAA calculated low, commenter explained that many Directory, and ReferenceUSA, the FAA baseline, and high range of costs by businesses use aircraft indirectly in eliminated operators that are subsidiary equipment class. The baseline estimate their operations and that higher aircraft businesses of larger businesses and equals the average of the low and high equipage costs will affect overall businesses with more than 1,500 industry cost estimates. The dollar value business costs. The commenter believed employees from the list of small entities. ranges consist of a wide variety of that one half of all non-turbine GA In many cases, the employment and avionics within each aircraft group. The aircraft are involved in small business annual revenue data are not public, so aircraft architecture within each activity. the FAA did not include these equipment group can vary, causing Publicly available data regarding companies in its analysis. For the different carriage, labor, and wiring internal company financial statistics for remaining businesses, the FAA obtained requirements for the installation of GA operators is limited. Therefore, the company revenue and employment from ADS–B. Volume discounting, versus FAA estimated the financial impact by the above three sources. single line purchasing, also affects the obtaining a sample population of GA The methodology discussed above dollar value ranges. On the low end, the operators from (1) the U.S. DOT Form resulted in a list of 34 U.S. part 91, 121 dollar value may represent a software 41 filings, (2) World Aviation Directory, and 135 operators, with less than 1,500 upgrade or original equipment and (3) ReferenceUSA. The FAA employees, who operate 341 airplanes. manufacturer (OEM) option change. On applied this sample to U.S. Census Due to the sparse amount of publicly the high end, the dollar value may Bureau data on the Small Business available data on internal company represent a new installation of upgraded

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avionic systems necessary to assure determining the degree of hardship the Based on the percent of potentially accuracy, reliability and safety. The final rule will have on these entities. affected current airplanes over the FAA used the estimated baseline dollar Comments were also requested on analysis period, small U.S. business value cost by equipment class in feasible alternative methods of operators may bear a disproportionate determining the impact to small compliance. The FAA did not receive impact from the final rule. business entities. any comments specific to this request. The FAA estimated each operator’s Analysis of Alternatives Competitive Analysis total compliance cost as follows: Alternative One Multiplying the baseline dollar value The aviation industry is an extremely The status quo alternative has cost (by equipment class) by the number competitive industry with slim profit of aircraft each small business operator compliance costs to continue the margins. The number of operators who operation and commissioning of radar currently has in its fleet. The FAA entered the industry and have stopped summed these costs by equipment class sites. The FAA rejected this status quo operations because of mergers, alternative because it is becoming and group. The FAA then measured the acquisitions, or bankruptcy litters the economic impact on small entities by operationally obsolete to use ground- history of the aviation industry. based radars to track congested airways dividing the estimated baseline dollar The FAA analyzed five years of value compliance cost for their fleet by and pass information among control operating profits for the affected small- centers for the duration of flights. The the small entity’s annual revenue. entity operators listed above, and was Each equipment group operated by a current system is not able to upgrade to able to determine the operating profit the NextGen capabilities, nor small entity may have to comply with for 18 of the 34 small business entities. different requirements in the final rule, accommodate the estimated increases in The FAA discovered that the average air traffic, which would result in depending on the state of the aircraft’s operating profit for 33% of these 18 avionics. In the ‘‘ADS–B Out Equipage mounting delays or limitations in affected operators was negative. Only service for many areas. Cost Estimate’’ section of the Regulatory four of the 18 affected operators had Impact Analysis, the FAA details its average annual operating profits that Alternative Two methodology to estimate operators’ total exceeded $10,000,000. compliance cost by equipment group. Alternative Two would employ a In this competitive industry, cost For small entity operators in the technology called multilateration. increases imposed by this regulation sample population of 34 small aviation Multilateration is a separate type of will be hard to recover by raising prices, entities, the ADS–B cost is estimated to secondary surveillance system that is especially by those operators showing be: (1) Greater than 2% of annual not radar-based and has limited an average five-year negative operating revenues for about 35% of the operators; deployment in the U.S. At a minimum, profit. Further, large operators may be and (2) greater than 1% of annual multilateration requires at least four able to negotiate better pricing from revenues for about 54% of the operators. ground stations to deliver the same outside firms for inspections and Applying these percentages to the air volume of coverage and integrity of repairs, so small operators may need to transportation industry category of the information as ADS–B, because of the raise their prices more than large 2006 U.S. Census Bureau data, the need to ‘‘triangulate’’ the aircraft’s operators. These factors make it difficult ADS–B cost is estimated to be: (1) position. for small operators to recover their Greater than 2% of annual revenues for Multilateration is a process that compliance costs by raising prices. If at least 1,015 small entities; and (2) determines aircraft position by using the small operators cannot recover all the greater than 1% of annual revenues for difference in time of arrival of a signal additional costs imposed by this at least 1,562 small entity operators. from an aircraft at a series of receivers As a result of the above analysis, the regulation, market shares could shift to on the ground. Multilateration meets the FAA has determined that a substantial the large operators. need for accurate surveillance and is number of small entities will be Small operators successfully compete less costly than ADS–B (however, more significantly affected by the rule. Every in the aviation industry by providing costly than radar), but cannot achieve small entity that operates an aircraft in unique services and controlling costs. the same level of benefits as ADS–B, the airspace defined by this final rule The extent to which affected small such as system capacity and will be required to install ADS–B out entities operate in niche markets will environmental improvements. equipage and therefore will be affected affect their ability to pass on costs. Multilateration would provide the same by this rulemaking. Currently small operators are much benefits as radar, but the FAA estimates more profitable than established major that the cost of providing Business Closure Analysis scheduled carriers. This final rule will multilateration (including the cost to For commercial operators, the ratio of offset some of the advantages of lower sustain radar until multilateration is costs to annual revenue shows that 7 of capital costs of older aircraft. operational), would exceed the cost to 34 small business air operator firms Overall, in terms of competition, this continue full radar surveillance. would have ratios in excess of 5%. rulemaking reduces small operators’ Alternative Three Since many of the other commercial ability to compete. small business air operator firms do not Alternative Three would provide Disproportionality Analysis make their annual revenue publicly relief by having the FAA provide an available, it is difficult to assess the The disproportionately higher impact exemption to small air carriers from all financial impact of this final rule on of the final rule on the fleets of small requirements of this rule. This their business. To fully assess whether operators results in disproportionately alternative would mean that small air this final rule could force a small entity higher costs to small operators. Due to carriers would rely on the status quo into bankruptcy requires more financial the potential of fleet discounts, large ground-based radars to track their flights information than is publicly available. operators may be able to negotiate better and pass information among control In the NPRM, the FAA requested pricing from outside sources for centers for the duration of the flights. comment and supporting justification, inspections, installation, and ADS–B As discussed previously, ADS–B Out from small entities, to assist the FAA in hardware purchases. cannot be used effectively as the

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primary surveillance system if certain Pursuant to these Acts, the other than aviation, and to establish categories of airspace users are subject establishment of standards is not appropriate regulatory distinctions. The to separate surveillance systems. The considered an unnecessary obstacle to FAA did not receive any comments on small air carriers operate in the same the foreign commerce of the United whether the proposed rule should apply airspace as the larger carriers and States, so long as the standard has a differently to intrastate aviation in general aviation. Such an exemption legitimate domestic objective, such the Alaska. The FAA has determined, based would require two primary surveillance protection of safety, and does not on the administrative record of this systems, which adds the cost of an operate in a manner that excludes rulemaking, that there is no need to additional surveillance system without imports that meet this objective. The make any regulatory distinctions improving the existing benefits. Thus, statute also requires consideration of applicable to intrastate aviation in this alternative is not considered to be international standards and, where Alaska. acceptable. appropriate, that they be the basis for U.S. standards. The FAA has assessed VIII. Environmental Analysis Alternative Four the potential effect of this final rule and FAA Order 1050.1E identifies FAA Alternative Four exempts small- determined that it will impose the same actions that are categorically excluded piston engine GA operators from the unit costs on domestic and international from preparation of an environmental requirements of this final rule. This entities and thus has a neutral trade assessment or environmental impact final rule provides minimal benefits to impact. statement under the National small-piston engine GA operators, while Unfunded Mandates Assessment Environmental Policy Act in the adding significant costs by mandating absence of extraordinary circumstances. these operators to retrofit and equip Title II of the Unfunded Mandates The FAA has determined that this about 150,000 small piston engine GA Reform Act of 1995 (Pub. L. 104–4) rulemaking action qualifies for the airplanes with ADS–B Out. Even though requires each Federal agency to prepare categorical exclusion identified in the FAA determined that the percentage a written statement assessing the effects paragraph 312f and involves no of small piston engine GA airplanes of any Federal mandate in a proposed or extraordinary circumstances. operating at the top Operational final agency rule that may result in an Evolution Plan 35 airports is less than expenditure of $100 million or more (in IX. Regulations That Significantly 5%, the number of GA operations 1995 dollars) in any one year by State, Affect Energy Supply, Distribution, or within a 30-nautical-mile radius of these local, and tribal governments, in the Use airports is significant. This alternative aggregate, or by the private sector; such The FAA has analyzed this final rule was not considered acceptable because a mandate is deemed to be a ‘‘significant under Executive Order 13211, Actions ADS–B equipage for all aircraft regulatory action.’’ The FAA currently Concerning Regulations that operating in the airspace subject to this uses an inflation-adjusted value of Significantly Affect Energy Supply, rule is essential to gaining the overall $136.1 million in lieu of $100 million. Distribution, or Use (May 18, 2001). The stated ADS–B benefits, realizing savings This rule is not expected to impose FAA has determined that it is not a associated with radar decommissioning, significant costs on small governmental ‘‘significant regulatory action’’ under and the expansion of potential future jurisdictions such as State, local, or Executive Order 13211. This is because, benefits. tribal governments. However, the rule while it is a ‘‘significant regulatory will result in an unfunded mandate on Alternative Five action’’ under Executive Order 12866 the private sector because it will result and DOT’s Regulatory Policies and This alternative is the final ADS–B in expenditures in excess of the $136.1 Procedures, it is not likely to have a rule. ADS–B does not employ different million annual threshold. The FAA significant adverse effect on the supply, classes of receiving equipment or considered two alternatives to the rule, distribution, or use of energy. In fact, provide different information based on as described above, and four alternatives adoption of this final rule offers the its location. Therefore, controllers will in the regulatory flexibility analysis potential to produce reductions in not have to account for transitions described above. energy use in the NAS. between surveillance solutions as an aircraft moves closer to or farther away VI. Executive Order 13132, Federalism X. Availability of Rulemaking from an airport. To address congestion The FAA has analyzed this final rule Documents and delay, fuel consumption, emissions, under the principles and criteria of You can get an electronic copy of and future demand for air travel without Executive Order 13132, Federalism. We rulemaking documents using the significant delays or denial of service, determined that this action will not Internet by— the FAA found ADS–B to be the most have a substantial direct effect on the cost-effective solution to maintain a States, or the relationship between the 1. Searching the Federal eRulemaking viable air transportation system. ADS–B Federal Government and the States, or Portal at http://www.regulations.gov; provides a wider range of services to on the distribution of power and 2. Visiting the FAA’s Regulations and Policies Web page at http:// aircraft users and could enable responsibilities among the various _ applications that are not available with levels of government, and, therefore, www.faa.gov/regulations policies/; or multilateration or radar. does not have federalism implications. 3. Accessing the Government Printing Office’s Web page at http:// International Trade Impact Analysis VII. Regulations Affecting Intrastate www.gpoaccess.gov/fr/index.html. The Trade Agreements Act of 1979 Aviation in Alaska You can also get a copy by sending a (Pub. L. 96–39), as amended by the Section 1205 of the FAA request to the Federal Aviation Uruguay Round Agreements Act (Pub. Reauthorization Act of 1996 (110 Stat. Administration, Office of Rulemaking, L. 103–465), prohibits Federal agencies 3213) requires the FAA, when ARM–1, 800 Independence Avenue from establishing standards or engaging modifying its regulations in a manner SW., Washington, DC 20591, or by in related activities that create affecting intrastate aviation in Alaska, to calling (202) 267–9680. Be sure to unnecessary obstacles to the foreign consider the extent to which Alaska is identify the amendment number or commerce of the United States. not served by transportation modes docket number of this rulemaking.

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Anyone is able to search the §§ 91.303 through 91.319; §§ 91.323 aircraft equipped with both a electronic form of all comments through 91.327; § 91.605; § 91.609; transponder and ADS–B Out. received into any of our dockets by the §§ 91.703 through 91.715; and § 91.903. ■ 7. Add § 91.225 to read as follows: name of the individual submitting the * * * * * § 91.225 Automatic Dependent comment (or signing the comment, if ■ 3. Amend § 91.130 by revising submitted on behalf of an association, Surveillance-Broadcast (ADS–B) Out paragraph (d) to read as follows: equipment and use. business, labor union, etc.). You may review DOT’s complete Privacy Act § 91.130 Operations in Class C airspace. (a) After January 1, 2020, and unless otherwise authorized by ATC, no person statement in the Federal Register * * * * * published on April 11, 2000 (Volume (d) Equipment requirements. Unless may operate an aircraft in Class A 65, Number 70; Pages 19477–78) or you otherwise authorized by the ATC having airspace unless the aircraft has may visit http://DocketsInfo.dot.gov. jurisdiction over the Class C airspace equipment installed that— (1) Meets the requirements in TSO– area, no person may operate an aircraft Small Business Regulatory Enforcement C166b, Extended Squitter Automatic within a Class C airspace area Fairness Act Dependent Surveillance-Broadcast designated for an airport unless that (ADS–B) and Traffic Information The Small Business Regulatory aircraft is equipped with the applicable Service-Broadcast (TIS–B) Equipment Enforcement Fairness Act (SBREFA) of equipment specified in § 91.215, and Operating on the Radio Frequency of 1996 requires the FAA to comply with after January 1, 2020, § 91.225. small entity requests for information or 1090 Megahertz (MHz); and * * * * * advice about compliance with statutes (2) Meets the requirements of and regulations within its jurisdiction. If ■ 4. Amend § 91.131 by revising § 91.227. you are a small entity and you have a paragraph (d) to read as follows: (b) After January 1, 2020, and unless otherwise authorized by ATC, no person question regarding this document, you § 91.131 Operations in Class B airspace. may contact your local FAA official, or may operate an aircraft below 18,000 * * * * * the person listed under the FOR FURTHER feet MSL and in airspace described in (d) Other equipment requirements. No INFORMATION CONTACT heading at the paragraph (d) of this section unless the person may operate an aircraft in a Class beginning of the preamble. You can find aircraft has equipment installed that— B airspace area unless the aircraft is out more about SBREFA on the Internet (1) Meets the requirements in— equipped with— at http://www.faa.gov/ (i) TSO–C166b; or _ (1) The applicable operating (ii) TSO–C154c, Universal Access regulations policies/rulemaking/ transponder and automatic altitude sbre_act/. Transceiver (UAT) Automatic reporting equipment specified in Dependent Surveillance-Broadcast List of Subjects in 14 CFR Part 91 § 91.215 (a), except as provided in (ADS–B) Equipment Operating on the Aircraft, Airmen, Air traffic control, § 91.215 (e), and Frequency of 978 MHz; Aviation safety, Incorporation by (2) After January 1, 2020, the (2) Meets the requirements of Reference, Reporting, and recordkeeping applicable Automatic Dependent § 91.227. requirements. Surveillance-Broadcast Out equipment (c) Operators with equipment specified in § 91.225. installed with an approved deviation The Amendment ■ 5. Amend § 91.135 by revising under § 21.618 of this chapter also are ■ In consideration of the foregoing, the paragraph (c) to read as follows: in compliance with this section. (d) After January 1, 2020, and unless Federal Aviation Administration § 91.135 Operations in Class A airspace. amends chapter I of 14 CFR as follows: otherwise authorized by ATC, no person * * * * * may operate an aircraft in the following PART 91—GENERAL OPERATING AND (c) Equipment requirements. Unless airspace unless the aircraft has FLIGHT RULES otherwise authorized by ATC, no person equipment installed that meets the may operate an aircraft within Class A requirements in paragraph (b) of this ■ 1. The authority citation for part 91 airspace unless that aircraft is equipped section: continues to read as follows: with the applicable equipment specified (1) Class B and Class C airspace areas; Authority: 49 U.S.C. 106(g), 1155, 40103, in § 91.215, and after January 1, 2020, (2) Except as provided for in 40113, 40120, 44101, 44111, 44701, 44704, § 91.225. paragraph (e) of this section, within 30 44709, 44711, 44712, 44715, 44716, 44717, * * * * * nautical miles of an airport listed in 44722, 46306, 46315, 46316, 46504, 46506– ■ 6. Amend § 91.217 by redesignating appendix D, section 1 to this part from 46507, 47122, 47508, 47528–47531, articles paragraphs (a) through (c) as paragraphs the surface upward to 10,000 feet MSL; 12 and 29 of the Convention on International (3) Above the ceiling and within the Civil Aviation (61 stat. 1180). (a)(1) through (a)(3), redesignating the introductory text as paragraph (a) lateral boundaries of a Class B or Class ■ 2. Amend § 91.1 by revising paragraph introductory text, and by adding C airspace area designated for an airport (b) to read as follows: paragraph (b) to read as follows: upward to 10,000 feet MSL; (4) Except as provided in paragraph § 91.1 Applicability. § 91.217 Data correspondence between (e) of this section, Class E airspace * * * * * automatically reported pressure altitude within the 48 contiguous states and the (b) Each person operating an aircraft data and the pilot’s altitude reference. District of Columbia at and above 10,000 in the airspace overlying the waters * * * * * feet MSL, excluding the airspace at and between 3 and 12 nautical miles from (b) No person may operate any below 2,500 feet above the surface; and the coast of the United States must automatic pressure altitude reporting (5) Class E airspace at and above 3,000 comply with §§ 91.1 through 91.21; equipment associated with a radar feet MSL over the Gulf of Mexico from §§ 91.101 through 91.143; §§ 91.151 beacon transponder or with ADS–B Out the coastline of the United States out to through 91.159; §§ 91.167 through equipment unless the pressure altitude 12 nautical miles. 91.193; § 91.203; § 91.205; §§ 91.209 reported for ADS–B Out and Mode C/S (e) The requirements of paragraph (b) through 91.217; § 91.221, § 91.225; is derived from the same source for of this section do not apply to any

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aircraft that was not originally (December 2, 2009) may be obtained Source Integrity Level (SIL) indicates certificated with an electrical system, or from the U.S. Department of the probability of the reported that has not subsequently been certified Transportation, Subsequent Distribution horizontal position exceeding the with such a system installed, including Office, DOT Warehouse M30, Ardmore containment radius defined by the NIC balloons and gliders. These aircraft may East Business Center, 3341 Q 75th on a per sample or per hour basis, as conduct operations without ADS–B Out Avenue, Landover, MD 20785; defined in TSO–C166b and TSO–C154c. in the airspace specified in paragraphs telephone (301) 322–5377. Copies of System Design Assurance (SDA) (d)(2) and (d)(4) of this section. TSO –C166B and TSO–C154c are also indicates the probability of an aircraft Operations authorized by this section available on the FAA’s Web site, at malfunction causing false or misleading must be conducted— http://www.faa.gov/aircraft/air_cert/ information to be transmitted, as (1) Outside any Class B or Class C design_approvals/tso/. Select the link defined in TSO–C166b and TSO–C154c. airspace area; and ‘‘Search Technical Standard Orders.’’ Total latency is the total time between (2) Below the altitude of the ceiling of (2) Copies of Section 2, Equipment when the position is measured and a Class B or Class C airspace area Performance Requirements and Test when the position is transmitted by the designated for an airport, or 10,000 feet Procedures, of RTCA DO–260B, aircraft. MSL, whichever is lower. Minimum Operational Performance Uncompensated latency is the time (f) Each person operating an aircraft Standards for 1090 MHz Extended for which the aircraft does not equipped with ADS–B Out must operate Squitter Automatic Dependent compensate for latency. this equipment in the transmit mode at Surveillance-Broadcast (ADS–B) and (b) 1090 MHz ES and UAT Broadcast all times. Traffic Information Services-Broadcast Links and Power Requirements— (g) Requests for ATC authorized (TIS–B), December 2, 2009 (referenced (1) Aircraft operating in Class A deviations from the requirements of this in TSO–C166b) and Section 2, airspace must have equipment installed section must be made to the ATC Equipment Performance Requirements that meets the antenna and power facility having jurisdiction over the and Test Procedures, of RTCA DO– output requirements of Class A1, A1S, concerned airspace within the time 282B, Minimum Operational A2, A3, B1S, or B1 equipment as periods specified as follows: Performance Standards for Universal defined in TSO–C166b, Extended (1) For operation of an aircraft with an Access Transceiver (UAT) Automatic Squitter Automatic Dependent inoperative ADS–B Out, to the airport of Dependent Surveillance-Broadcast Surveillance-Broadcast (ADS–B) and ultimate destination, including any (ADS–B), December 2, 2009 (referenced Traffic Information Service-Broadcast intermediate stops, or to proceed to a in TSO C–154c) may be obtained from (TIS–B) Equipment Operating on the place where suitable repairs can be RTCA, Inc., 1828 L Street, NW., Suite Radio Frequency of 1090 Megahertz made or both, the request may be made 805, Washington, DC 20036–5133, (MHz). at any time. telephone 202–833–9339. Copies of (2) Aircraft operating in airspace (2) For operation of an aircraft that is RTCA DO–260B and RTCA DO–282B designated for ADS–B Out, but outside not equipped with ADS–B Out, the are also available on RTCA Inc.’s Web of Class A airspace, must have request must be made at least 1 hour site, at http://www.rtca.org/onlinecart/ equipment installed that meets the before the proposed operation. allproducts.cfm. antenna and output power requirements (h) The standards required in this ■ 8. Add § 91.227 to read as follows: of either: section are incorporated by reference (i) Class A1, A1S, A2, A3, B1S, or B1 with the approval of the Director of the § 91.227 Automatic Dependent as defined in TSO–C166b; or Office of the Federal Register under 5 Surveillance-Broadcast (ADS–B) Out (ii) Class A1H, A1S, A2, A3, B1S, or U.S.C. 552(a) and 1 CFR part 51. All equipment performance requirements. B1 equipment as defined in TSO–C154c, approved materials are available for (a) Definitions. For the purposes of Universal Access Transceiver (UAT) inspection at the FAA’s Office of this section: Automatic Dependent Surveillance– Rulemaking (ARM–1), 800 ADS–B Out is a function of an Broadcast (ADS–B) Equipment Independence Avenue, SW., aircraft’s onboard avionics that Operating on the Frequency of 978 Washington, DC 20590 (telephone 202– periodically broadcasts the aircraft’s MHz. 267–9677), or at the National Archives state vector (3-dimensional position and (c) ADS–B Out Performance and Records Administration (NARA). 3-dimensional velocity) and other Requirements for NAC P, NACV, NIC, For information on the availability of required information as described in SDA, and SIL— this material at NARA, call 202–741– this section. (1) For aircraft broadcasting ADS–B 6030, or go to http://www.archives.gov/ Navigation Accuracy Category for Out as required under § 91.225 (a) and _ _ _ _ federal register/code of federal Position (NACP) specifies the accuracy (b)— _ regulations/ibr locations.html. This of a reported aircraft’s position, as (i) The aircraft’s NACP must be less material is also available from the defined in TSO–C166b and TSO–C154c. than 0.05 nautical miles; sources indicated in paragraphs (h)(1) Navigation Accuracy Category for (ii) The aircraft’s NACV must be less and (h)(2) of this section. Velocity (NACV) specifies the accuracy than 10 meters per second; (1) Copies of Technical Standard of a reported aircraft’s velocity, as (iii) The aircraft’s NIC must be less Order (TSO)–C166b, Extended Squitter defined in TSO–C166b and TSO–C154c. than 0.2 nautical miles; Automatic Dependent Surveillance- Navigation Integrity Category (NIC) (iv) The aircraft’s SDA must be 2; and Broadcast (ADS–B) and Traffic specifies an integrity containment (v) The aircraft’s SIL must be 3. Information Service-Broadcast (TIS–B) radius around an aircraft’s reported (2) Changes in NACP, NACV, SDA, Equipment Operating on the Radio position, as defined in TSO–C166b and and SIL must be broadcast within 10 Frequency of 1090 Megahertz (MHz) TSO–C154c. seconds. (December 2, 2009) and TSO–C154c, Position Source refers to the (3) Changes in NIC must be broadcast Universal Access Transceiver (UAT) equipment installed onboard an aircraft within 12 seconds. Automatic Dependent Surveillance- used to process and provide aircraft (d) Minimum Broadcast Message Broadcast (ADS–B) Equipment position (for example, latitude, Element Set for ADS–B Out. Each Operating on the Frequency of 978 MHz longitude, and velocity) information. aircraft must broadcast the following

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information, as defined in TSO–C166b (1) The aircraft must transmit its from the U.S. Department of or TSO–C154c. The pilot must enter geometric position no later than 2.0 Transportation, Subsequent Distribution information for message elements listed seconds from the time of measurement Office, DOT Warehouse M30, Ardmore in paragraphs (d)(7) through (d)(10) of of the position to the time of East Business Center, 3341 Q 75th this section during the appropriate transmission. Avenue, Landover, MD 20785; phase of flight. (2) Within the 2.0 total latency telephone (301) 322–5377. Copies of (1) The length and width of the allocation, a maximum of 0.6 seconds TSO –C166B and TSO–C154c are also aircraft; can be uncompensated latency. The available on the FAA’s Web site, at (2) An indication of the aircraft’s aircraft must compensate for any latency http://www.faa.gov/aircraft/air_cert/ latitude and longitude; above 0.6 seconds up to the maximum design_approvals/tso/. Select the link (3) An indication of the aircraft’s 2.0 seconds total by extrapolating the ‘‘Search Technical Standard Orders.’’ barometric pressure altitude; geometric position to the time of (2) Copies of Section 2, Equipment (4) An indication of the aircraft’s message transmission. Performance Requirements and Test velocity; (3) The aircraft must transmit its Procedures, of RTCA DO–260B, (5) An indication if TCAS II or ACAS position and velocity at least once per Minimum Operational Performance is installed and operating in a mode that second while airborne or while moving Standards for 1090 MHz Extended can generate resolution advisory alerts; on the airport surface. Squitter Automatic Dependent (6) If an operable TCAS II or ACAS is (4) The aircraft must transmit its Surveillance-Broadcast (ADS–B) and installed, an indication if a resolution position at least once every 5 seconds Traffic Information Services-Broadcast advisory is in effect; while stationary on the airport surface. (TIS–B), December 2, 2009 (referenced (f) Equipment with an approved (7) An indication of the Mode 3/A in TSO–C166b) and Section 2, deviation. Operators with equipment transponder code specified by ATC; Equipment Performance Requirements (8) An indication of the aircraft’s call installed with an approved deviation and Test Procedures, of RTCA DO– sign that is submitted on the flight plan, under § 21.618 of this chapter also are 282B, Minimum Operational or the aircraft’s registration number, in compliance with this section. Performance Standards for Universal except when the pilot has not filed a (g) Incorporation by Reference. The Access Transceiver (UAT) Automatic flight plan, has not requested ATC standards required in this section are Dependent Surveillance-Broadcast services, and is using a TSO–C154c self- incorporated by reference with the (ADS–B), December 2, 2009 (referenced assigned temporary 24-bit address; approval of the Director of the Office of in TSO C–154c) may be obtained from (9) An indication if the flightcrew has the Federal Register under 5 U.S.C. RTCA, Inc., 1828 L Street, NW., Suite identified an emergency, radio 552(a) and 1 CFR part 51. All approved 805, Washington, DC 20036–5133, communication failure, or unlawful materials are available for inspection at telephone 202–833–9339. Copies of interference; the FAA’s Office of Rulemaking (ARM– RTCA DO–260B and RTCA DO–282B (10) An indication of the aircraft’s 1), 800 Independence Avenue, SW., are also available on RTCA Inc.’s Web ‘‘IDENT’’ to ATC; Washington, DC 20590 (telephone 202– site, at http://www.rtca.org/onlinecart/ (11) An indication of the aircraft 267–9677), or at the National Archives allproducts.cfm. assigned ICAO 24-bit address, except and Records Administration (NARA). when the pilot has not filed a flight For information on the availability of 9. Amend appendix D to part 91 by plan, has not requested ATC services, this material at NARA, call 202–741– revising section 1 introductory text to and is using a TSO–C154c self-assigned 6030, or go to http://www.archives.gov/ read as follows: temporary 24-bit address; federal_register/code_of_federal_ _ APPENDIX D TO PART 91— (12) An indication of the aircraft’s regulations/ibr locations.html. This AIRPORTS/LOCATIONS: SPECIAL emitter category; material is also available from the OPERATING RESTRICTIONS (13) An indication of whether an sources indicated in paragraphs (g)(1) ADS–B In capability is installed; and (g)(2) of this section. Section 1. Locations at which the (14) An indication of the aircraft’s (1) Copies of Technical Standard requirements of § 91.215(b)(2) and geometric altitude; Order (TSO)–C166b, Extended Squitter § 91.225(d)(2) apply. The requirements of §§ 91.215(b)(2) and 91.225(d)(2) apply below (15) An indication of the Navigation Automatic Dependent Surveillance– 10,000 feet above the surface within a 30- Accuracy Category for Position (NACP); Broadcast (ADS–B) and Traffic nautical-mile radius of each location in the (16) An indication of the Navigation Information Service–Broadcast (TIS–B) following list. Accuracy Category for Velocity (NACV); Equipment Operating on the Radio * * * * * (17) An indication of the Navigation Frequency of 1090 Megahertz (MHz) Integrity Category (NIC); (December 2, 2009) and TSO–C154c, Issued in Washington, DC, on May 21, (18) An indication of the System Universal Access Transceiver (UAT) 2010. Design Assurance (SDA); and Automatic Dependent Surveillance– J. Randolph Babbitt, (19) An indication of the Source Broadcast (ADS–B) Equipment Administrator. Integrity Level (SIL). Operating on the Frequency of 978 MHz [FR Doc. 2010–12645 Filed 5–27–10; 8:45 am] (e) ADS–B Latency Requirements— (December 2, 2009) may be obtained BILLING CODE 4910–13–P

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Part IV

Department of Defense Science and Technology Reinvention Laboratory Personnel Management Demonstration Project, Department of Navy (DON), Office of Naval Research (ONR); Notice

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DEPARTMENT OF DEFENSE Year (FY) 1995, Public Law 103–337, as compensation system; (9) performance- amended (10 U.S.C. 2358 note) by based reduction-in-pay or removal Office of the Secretary section 1109 of NDAA FY 2000, Public actions; and (10) reduction-in-force Law 106–65, and section 1114 of NDAA (RIF) procedures. Science and Technology Reinvention FY 2001, Public Law 106–398, 2. Overview Laboratory Personnel Management authorizes the Secretary of Defense Demonstration Project, Department of (SECDEF) to conduct personnel DoD published notice in 73 FR 73248, Navy (DON), Office of Naval Research management demonstration projects at December 2, 2008, that pursuant to (ONR) DoD laboratories designated as Science subsection 1107(c) of Public Law 110– AGENCY: Office of the Deputy Under and Technology Reinvention 181, the three STRLs listed in 73 FR Secretary of Defense (Civilian Personnel Laboratories (STRLs). Section 1107 of 73248 not having personnel Policy) (DUSD (CPP)), (DoD) NDAA FY 2008, Public Law 110–181, as demonstration projects at that time may amended by section 1109 of NDAA FY adopt the flexibilities of the other ACTION: Notice of proposal to adopt a 2009, Public Law 110–417, requires the laboratories previously listed in demonstration project plan and SECDEF to execute a process and plan subsection 9902(c)(2) and now additional flexibilities. to employ the personnel management redesignated in section 1105 of Public SUMMARY: The Office of Naval Research demonstration project authorities Law 111–84. ONR is one of the three (ONR) proposes to adopt the Naval granted to the Office of Personnel STRLs specified in this provision. Research Laboratory (NRL) Personnel Management under title 5 United States Accordingly, ONR intends to build its Management Demonstration Project Code (U.S.C.) section 4703 at the STRLs demonstration project using flexibilities with modifications and one flexibility previously enumerated in 5 U.S.C. adopted from existing STRL from the U.S. Army Aviation and 9902(c)(2), and now redesignated in demonstration projects (specifically Missile Research, Development and section 1105 of NDAA FY 2010, Public NRL and AMRDEC). Final plans for the Engineering Center (AMRDEC). The Law 111–84, 123 Stat. 2486, and 73 FR NRL and AMRDEC personnel majority of flexibilities and 73248, to enhance the performance of management demonstration projects administrative procedures are expected the missions of the laboratories. Section were published in the Federal Register to be adopted without changes. 1107 of Public Law 110–181 further as follows: However, modifications are made when authorizes in subsection 1107(c) that • Department of the Navy: NRL—64 necessary to address ONR’s specific any flexibility available to any FR 33970, June 24, 1999. No organizational, workforce, and approval demonstration laboratory shall be amendments have been published; and available for use at any other laboratory needs; technical modifications to • Department of the Army: as previously enumerated in title 5 conform to changes in the law and AMRDEC—62 FR 34876 and 62 FR U.S.C. 9902(c)(2). The Office of Naval governing Office of Personnel 34906, June 27, 1997; and amendments Research (ONR) is listed as one of the Management (OPM) regulations, which previously designated 5 U.S.C. and/or corrections to final plans are not being waived, that were effected 9902(c)(2) STRLs. published—64 FR 11074, March 8, after the publication of the NRL 1999; 64 FR 12216, March 11, 1999; 65 personnel demonstration project plan; 1. Background FR 53142, August 31, 2000; and 67 FR and changes in response to comments Since 1966, many studies of 5716, February 6, 2002. received during the 30-day comment Department of Defense (DoD) 3. Access to Flexibilities of Other STRLs period. laboratories have been conducted on DATES: ONR’s adoption proposal may laboratory quality and personnel. Flexibilities published in this Federal not be implemented until a 30-day Almost all of these studies have Register notice shall be available for use comment period is provided, comments recommended improvements in the by the STRLs previously enumerated in addressed, and a final Federal Register civilian personnel policy, organization, 5 U.S.C. 9902(c)(2), now redesignated in notice published. To be considered, and management. Pursuant to the section 1105 of Public Law 111–84, if written comments must be submitted on authority provided in section 342(b) of they wish to adopt them in accordance or before June 28, 2010. Public Law 103–337, as amended, a with DoD Instruction 1400.37; 73 FR 73248 to 73252; and after the fulfilling ADDRESSES: Send comments on or number of DoD STRL personnel of any collective bargaining obligations. before the comment due date by mail to demonstration projects were approved. Ms. Betty A. Duffield, CPMS–PSSC, These projects are ‘‘generally similar in Dated: May 21, 2010. Suite B–200, 1400 Key Boulevard, nature’’ to the Department of Navy’s Mitchell S. Bryman, ‘‘ ’’ Arlington, VA 22209–5144; by fax to China Lake Personnel Demonstration Alternate OSD Federal Register Liaison (703) 696–5462; or by e-mail to Project. The terminology, ‘‘generally Officer, Department of Defense. [email protected]. similar in nature,’’ does not imply an emulation of various features, but rather Table of Contents FOR FURTHER INFORMATION CONTACT: implies a similar opportunity and I. Executive Summary Office of Naval Research: Ms. Margaret authority to develop personnel II. Introduction J. Mitchell, Director, Human Resources flexibilities that significantly increase A. Purpose Office, Office of Naval Research, 875 the decision authority of laboratory B. Problems with the Current System North Randolph Street, Code 01HR, department heads and/or directors. C. Waivers Required Arlington, VA 22203; This demonstration project involves: D. Expected Benefits [email protected]. (1) Streamlined delegated examining; (2) E. Participating Organizations and DoD: Ms. Betty A. Duffield, CPMS– noncitizen hiring; (3) expanded detail Employees F. Project Design PSSC, Suite B–200, 1400 Key authority; (4) extended probationary Boulevard, Arlington, VA 22209–5144. III. Accessions and Internal Placements period for newly hired employees; (5) A. Hiring Authority SUPPLEMENTARY INFORMATION: Section expanded temporary promotion; (6) 1. Background 342(b) of the National Defense voluntary emeritus program; (7) 2. Delegated Examining Authorization Act (NDAA) for Fiscal paybanding; (8) contribution-based B. Legal Authority

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C. Determining Employee and Applicant c. Reduction or Termination of a DCA. b. Supervisors and Managers. Qualifications d. Lump-Sum DCA Payments. c. Support Personnel. D. Noncitizen Hiring e. DCA Budget Allocation. D. New Hires into the Demonstration E. Expanded Detail Authority f. Concurrent Monetary Payments. Project F. Extended Probationary Period C. Contribution-Based Compensation E. Conversion or Movement from G. Definitions System (CCS) Demonstration Project 1. Basic Pay 1. General 1. Grade Determination. 2. Maintained Pay 2. CCS Process 2. Pay Setting 3. Promotion 3. Pay Pool Annual Planning 3. Employees in Positions Classified Above 4. Reassignment a. Element Weights and Applicability. GS–15 5. Change to Lower Pay Band b. Supplemental Criteria. 4. Determining Date of Last Equivalent 6. Pay Adjustment 4. Annual CCS Appraisal Process (See Increase 7. Detail Figure 7.) C. Personnel Administration 8. Highest Previous Rate 5. Exceptions D. Automation 9. Approving Manager 6. Normal Pay Range (NPR)—Basic Pay E. Experimentation and Revision H. Pay Setting Determinations Outside the Versus Contribution VII. Demonstration Project Duration CCS 7. Compensation VIII. Demonstration Project Evaluation Plan 1. External New Hires a. General Increases. A. Overview 2. Internal Actions b. Merit Increases. B. Evaluation Model a. Promotion. c. Locality Increases. IX. Demonstration Project Costs b. Pay Adjustment (Voluntary Change to d. Contribution Awards. A. Cost Discipline Lower Pay) or Change to Lower Pay Band 8. Career Movement Based on CCS B. Implementation Costs (except RIF). a. Advancements in Level Which May be X. Automation Support c. Pay Adjustment (Involuntary Change to Approved by the Pay Pool Manager. A. General Lower Pay) or Change to Lower Pay Band b. Advancements in Level Which Must be B. Defense Civilian Personnel Data System Due to Adverse or Performance-based Approved by the Chief of Naval Research (DCPDS) Action. (CNR). C. Core Document (COREDOC) d. Involuntary Change to Lower Pay Band c. Advancement to Level V of the Science D. RIF Support System (RIFSS) or Reassignment to a Career Track with and Engineering (S&E) Professional E. Contribution-based Compensation a Lower Salary Range, Other than Career Track. System Data System Adverse or Performance-based. 9. CCS Grievance Procedures Appendix A. Summary of Demonstration e. RIF Action (including employees who V. Separations Project Features Adopted by ONR are offered and accept a vacancy at a A. Performance-based Reduction-in-Pay or Appendix B: Required Waivers to Laws and lower pay band or in a different career Removal Actions Regulations track). B. Reduction-in-Force (RIF) Procedures Appendix C: Definitions of Career Tracks and f. Upward Mobility or Other Formal 1. RIF Authority Pay Bands Training Program Selection. 2. RIF Definitions Appendix D: Table of Occupational Series g. Return to Limited or Light Duty from a a. Competition in RIF. Within Career Tracks Disability as a Result of Occupational b. Competitive Area. Appendix E: Classification and CCS Elements Injury to a Position in a Lower Pay Band c. Competitive Level. Appendix F: Computation of the IPS and the or to a Career Track with Lower Basic d. Service Computation Date (SCD). NPR Pay Potential than Held Prior to the (1). Federal SCD. Appendix G: Intervention Model Injury. (2) CCS Process Results. h. Restoration to Duty. (3). Credit from Other Rating Systems. I. Executive Summary i. Reassignment. (4) RIF Cutoff Date. This project adopts with some j. Student Educational Employment 3. Displacement Rights modifications the STRL personnel Program. a. Displacement Process management demonstration project k. Hazard Pay or Pay for Duty Involving b. Retention Standing designed by NRL and an additional Physical Hardship. c. Vacant Positions flexibility from the AMRDEC personnel I. Priority Placement Program (PPP) d. Ineligible for Displacement Rights J. Expanded Temporary Promotion e. Change to Lower Level due to an management demonstration project. The K. Voluntary Emeritus Program Adverse or Performance-based Action modified design of the demonstration IV. Sustainment 4. Notice Period project described herein was developed A. Position Classification 5. RIF Appeals by ONR with the participation of and 1. Career Tracks and Pay Bands 6. Separation Incentives review by the DON, the DoD, and a. Target Pay Band. 7. Severance Pay incorporation of the knowledge and b. Occupational Series and Position 8. Outplacement Assistance design of other STRL demonstration Titling. VI. Demonstration Project Transition projects. c. Classification Standards. A.Initial Conversion or Movement to the The ONR coordinates, executes, and d. Fair Labor Standards Act (FLSA). Demonstration Project (1) Guidelines for FLSA Determinations. 1. Placement into Career Tracks and Pay promotes the science and technology (2) Nonsupervisory and Leader Positions. Bands programs of the United States Navy and (3) Supervisory Positions. 2.Conversion of retained grade and pay Marine Corps. ONR’s directorates 2. Requirements Document (RD) employees balance a robust science and technology 3. Delegation of Classification Authority 3. WGI Buy-In portfolio, allocating funds to meet the a. Delegated Authority. 4. Career Promotion Eligibility warfighter’s requirements, focusing b. Position Classification Accountability. 5. Conversion of Special Salary Rate efforts on all three major phases of B. Integrated Pay Schedule Employees development funding: basic research, 1. Annual Pay Action 6. Conversion of Employees on Temporary applied research, and advanced 2. Overtime Pay Promotions 3. Classification Appeals 7. Non-competitive Movement into the technology development. ONR’s six 4. Above GS–15 Positions Demonstration Project science and technology departments 5. Distinguished Contributions Allowance B. CCS Start-Up coordinate and execute research in the (DCA) C. Training areas of: a. Eligibility. 1. Types of Training 1. Expeditionary Maneuver Warfare b. Nomination. a. Employees. and Combating Terrorism

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2. Command, Control, B. Problems With the Current System increased employee satisfaction. The Communications, Intelligence, The current Civil Service GS system long-standing Department of the Navy Surveillance, and Reconnaissance has existed in essentially the same form ‘‘China Lake’’ and the National Institute 3. Ocean Battlespace Sensing since the 1920’s. Work is classified into of Standards and Technology (NIST) 4. Sea Warfare and Weapons one of fifteen overlapping pay ranges demonstration projects have produced 5. Warfighter Performance that correspond with the fifteen grades. impressive statistics on increased job 6. Naval Air Warfare and Weapons satisfaction and quality of employees In order to sustain these unique Base pay is set at one of those fifteen grades and the ten interim steps within versus that for the Federal workforce in capabilities, ONR must be able to hire, general. This project will demonstrate retain, and continually motivate each grade. The Classification Act of 1949 rigidly defines types of work by that a human resource system tailored to enthusiastic, innovative, and highly- the mission and needs of the ONR educated scientists and engineers, occupational series and grade, with very workforce will facilitate: supported by accomplished business precise qualifications for each job. This management and administrative system does not quickly or easily (1) Sustainment of ONR’s quality professionals as well as a skilled respond to new ways of designing work scientific and business management administrative and technical support or to changes in the work itself. workforces in today’s competitive staff. The performance management model environment; that has existed since the passage of the The goal of the project is to enhance (2) Improved employee satisfaction Civil Service Reform Act has come the quality and professionalism of the with pay setting and adjustment, under extreme criticism. Employees ONR workforce through improvements recognition, and career advancement frequently report there is inadequate in the efficiency and effectiveness of the opportunities; human resource system. The project communication of performance (3) Human Resources (HR) flexibilities flexibilities will strive to achieve the expectations and feedback on needed to staff and shape a quality best workforce for the ONR mission, performance. There are perceived adjust the workforce for change, and inaccuracies in performance ratings workforce of the next 10–20 years; improve organizational efficiency. The with general agreement that the ratings (4) Increased retention of high-level results of the project will be evaluated are inflated and often unevenly contributors; and distributed by grade, occupation, and within five years of implementation (5) Simpler and more cost effective geographic location. II. Introduction The need to change the current hiring HR management processes. An evaluation model was developed A. Purpose system is essential as ONR must be able to recruit and retain scientific, for the Director, Defense, Research and The purpose of the project is to engineering, acquisition support and Engineering (DDR&E) in conjunction demonstrate that the effectiveness of other professionals, and skilled with STRL service representatives and DoD STRLs can be enhanced by technicians. ONR must be able to the OPM. The model will measure the expanding opportunities available to compete with the private sector for the effectiveness of this demonstration employees and by allowing greater best talent and be able to make job offers project, as modified in this plan, and managerial control over personnel in a timely manner with the attendant will be used to measure the results of functions through a more responsive bonuses and incentives to attract high specific personnel system changes. and flexible personnel system. Federal quality employees. E. Participating Organizations and laboratories need more efficient, cost Finally, current limitations on effective, and timely processes and training, retraining, and otherwise Employees methods to acquire and retain a highly developing employees make it difficult ONR is comprised of the ONR creative, productive, educated, and to correct skill imbalances and to Headquarters in Arlington, Virginia, and trained workforce. This project, in its prepare current employees for new lines ONR employees geographically entirety, attempts to improve of work to meet changing missions and dispersed at the locations shown in employees’ opportunities and provide emerging technologies. Figure 1. It should be noted that some managers, at the lowest practical level, sites currently have fewer than ten the authority, control, and flexibility C. Waivers Required people and that the sites may change needed to achieve the highest quality ONR proposes changes in the should ONR reorganize or realign. organization and hold them accountable following broad areas to address its Successor organizations will continue for the proper exercise of this authority problems in human resources coverage in the demonstration project. within the framework of an improved management: Accessions and internal personnel management system. placements, sustainment, and The demonstration project will cover Many aspects of a demonstration separations. Appendix B lists the laws, approximately 450 ONR civilian project are experimental. Modifications rules, and regulations requiring waivers employees under title 5, U.S.C. in the may be made from time to time as to enable ONR to implement the occupations listed in Appendix D. The experience is gained, results are proposed systems. All personnel laws, project plan does not cover members of analyzed, and conclusions are reached rules, and regulations not waived by the Senior Executive Service (SES), on how the system is working. The this plan will remain in effect. Basic Senior Level (SL), Scientific and provisions of this project plan will not employee rights will be safeguarded and Professional (ST), expert and consultant be modified, or extended to individuals Merit System Principles will be employees (EH), or Administratively or groups of employees not included in maintained. Determined (AD) pay plans. However, the project plan without the approval of SES, SL, and ST employees, after the ODUSD(CPP). The provisions of D. Expected Benefits leaving Federal government service, DoDI 1400.37, are to be followed for any The primary benefit expected from may participate in the Voluntary modifications, adoptions, or changes to this demonstration project is greater Emeritus Program. There are no labor this demonstration project plan. organizational effectiveness through unions representing ONR employees.

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F. Project Design adopt the NRL demonstration project b. The ‘‘Rule of Three’’ will be plus an additional flexibility from the eliminated. When there are no more In response to the initial authority AMRDEC demonstration project. than 15 qualified applicants and no granted by Congress to develop a Appendix A summarizes the preference eligibles, all eligible demonstration project, ONR chartered a modifications proposed for each of the applicants are immediately referred to design team to develop the project plan. adopted project flexibilities and the selecting official without rating and The team was led by a senior ONR administrative procedures. ranking. Rating and ranking will be manager from outside the Human Modifications to existing flexibilities are required only when the number of Resources Office (HRO) and was made when necessary to address ONR’s qualified candidates exceeds 15 or there responsible for developing project specific organizational, workforce, and is a mix of preference and proposals. The team was composed of approval needs and technical nonpreference applicants. Statutes and 20 employees of different grade levels modifications to conform to changes in regulations covering veterans’ and in different occupations. There was the law and governing OPM regulations, preference will be observed in the a mix of managers, supervisors, and which are not being waived, that were selection process and when rating and non-supervisors from offices throughout effected after the publication of the NRL ranking are required. If the candidates ONR. The team had the assistance of HR personnel demonstration project plan. are rated and ranked, a random number personnel from ONR and from NRL. It Further changes to the project plan may selection method using the application also received information and advice be made in response to comments control number will be used to from OPM, the Office of the DUSD received during the 30-day comment determine which applicants will be (CPP), and a number of organizations period following publication of this referred when scores are tied after the with on-going demonstration projects. notice. rating process. Veterans will be referred Information and suggestions were ahead of non-veterans with the same III. Accessions and Internal Placements solicited from ONR employees and score. managers through interviews, briefings, A. Hiring Authority small-group meetings, and a suggestion B. Legal Authority program established specifically for the 1. Background For actions taken under the auspices design effort. This plan was submitted Private industry and academia are the of the ONR Demonstration Project, the to DUSD (CPP) in 2001. Work on this principal recruiting sources for legal authority, Public Law 103–337, plan was postponed pending the scientists and engineers at ONR. It is will be used. For all other actions, ONR outcome of several Departmental HR extremely difficult to make timely offers will continue to use the nature of action initiatives addressing new personnel of employment to hard-to-find scientists codes and legal authority codes systems. and engineers. Even when a candidate prescribed by OPM, DoD, or DON. Following enactment of Public Law is identified, he or she often finds C. Determining Employee and Applicant 110–181, ONR undertook an effort to another job opportunity before the Qualifications review and resubmit the demonstration lengthy recruitment process can be project plan. Upon extensive review and completed. Figure 2 displays the minimum discussion with internal and external General Schedule (GS) qualifications stakeholders, ONR leadership decided 2. Delegated Examining requirements for each career path and to adopt existing flexibilities according a. Competitive service positions pay band level. Special DON or DoD to subsection 1107(c) of Public Law within the ONR Demonstration Project requirements not covered by the OPM 110–181, 73 FR 73248, and DoDI will be filled through Merit Staffing or Qualification Standards Operating 1400.37. Specifically, ONR proposes to under Delegated Examining. Manual for GS Positions, such as

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Defense Acquisition Workforce acquisition positions, physical work on board aircraft, etc., must be Improvement Act (DAWIA) performance requirements for sea duty, met. qualification requirements for

D. Noncitizen Hiring (1) To effect details up to one year to for the position held by an employee Where Executive Orders or other demonstration project positions without including any merit increase but before regulations limit hiring noncitizens, the current 120-day renewal any deductions and exclusive of ONR will have the authority to approve requirement; and additional pay of any other kind. (2) To effect details to a higher level the hiring of noncitizens into 2. Maintained Pay competitive service positions when position in the demonstration project up qualified U.S. citizens are not available. to one year within a 24-month period An employee may be entitled to Under the demonstration project, as without competition. maintain his or her rate of basic pay if with the current system, a noncitizen Details beyond the one-year require that rate exceeds the maximum rate of may be appointed only if it has been the approval of the Chief of Naval basic pay for his or her pay band as a determined there are no qualified U.S. Research or designee and are not subject result of certain personnel actions (as citizens. In order to make this to the 120-day renewal requirement. described in this plan). An employee’s determination, the position will be F. Extended Probationary Period initial maintained pay rate is equal to advertised extensively throughout the the lesser of (1) the basic pay held by All current laws and regulations for nation using paid advertisements in the employee at the time an action is the current probationary period are major newspapers or scientific journals, taken which entitles the employee to retained except that nonstatus etc., as well as the ‘‘normal’’ recruiting maintain his or her pay or (2) 150 candidates hired under the methods. If a noncitizen is the only percent of the maximum rate of basic demonstration project in occupations qualified candidate for the position, the pay of the pay band to which assigned. where the nature of the work requires candidate may be appointed. The The employee is entitled to maintained the manager to have more than one year selection is subject to approval by the pay for 2 years or until the employee’s to assess the employee’s job Department Head or Director of the basic pay is equal to or more than the performance will serve a three-year hiring organization. The demonstration employee’s maintained pay, whichever probationary period. Employees with project constitutes a delegated occurs first. Exceptions to the 2-year veterans’ preference will maintain their examining agreement from OPM for the limit include employees on grade and rights under current law and regulation. purposes of 5 CFR 213.3102(bb). pay retention ‘‘grandfathered’’ in upon G. Definitions initial conversion into the E. Expanded Detail Authority demonstration project, former special Under the demonstration project, 1. Basic Pay rate employees receiving maintained ONR’s approving manager would have The total amount of pay received at pay as a result of conversion into the the authority: the rate fixed through CCS adjustment project, and employees placed through

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the priority placement programs. Termination of maintained pay is also a 2. Internal Actions Employees will receive half of the pay adjustment. These actions cover employees within across-the-board GS percentage increase 7. Detail the demonstration project, including in basic pay and the full locality pay demonstration project employees who increase while on maintained pay. Upon The temporary assignment of an apply and are selected for a position termination of maintained pay, the employee to a different demonstration within the project. employee’s basic pay will be adjusted project position for a specified period a. Promotion. according to the CCS appraisal process. when the employee is expected to When an employee is promoted, the If the employee’s basic pay exceeds the return to his or her regular duties at the basic pay after promotion may be up to maximum basic pay of his or her pay end of the assignment. (An employee 20 percent greater than the employee’s band upon expiration of the 2-year who is on detail is considered for pay current basic pay. However, if the period, the employee’s pay will not be and strength purposes to be minimum rate of the new pay band is reduced; the employee will be in the permanently occupying his or her more than 20 percent greater than the overcompensated range of basic pay regular position.) employee’s current basic pay, then the category for CCS pay increase purposes, 8. Highest Previous Rate minimum rate of the new pay band is see Figure 9. the new basic pay. The employee’s basic Maintained pay shall cease to apply ONR will establish maximum payable pay may not exceed the basic pay range to an employee who: (1) Has a break in rate rules that parallel the rules in 5 CFR of the new pay band. Highest previous service of 1 workday or more; or (2) is 531.202 and 531.203(c) and (d). rate may be applied, if appropriate. (The demoted for personal cause or at the 9. Approving Manager approving manager authorizes the basic employee’s request. The employee’s pay.) Note: Most target pay band maintained rate of pay is basic pay for Managers at the directorate, division promotions will be accomplished purposes of locality pay (locality pay is head, division superintendent, or through the CCS appraisal and pay basic pay for purposes of retirement, life directorate-level staff offices who have adjustment process (see section IV.C.8). insurance, premium pay, severance pay, budget allocation/execution; position b. Pay Adjustment (Voluntary Change advances in pay, workers’ management; position classification; to Lower Pay) or Change to Lower Pay compensation, and lump-sum payments recruitment; and staffing authorities for Band (except RIF). for annual leave but not for computing their organization. When an employee accepts a promotion increases). Employees voluntary change to lower pay or lower H. Pay Setting Determinations Outside promoted while on maintained pay may pay band, basic pay may be set at any the CCS have their basic pay (excluding locality point within the pay band to which pay) set up to 20 percent greater than 1. External New Hires appointed, except that the new basic the maximum basic pay for their current pay will not exceed the employee’s pay band or retain their ‘‘maintained a. This includes reinstatements. Initial current basic pay or the maximum basic pay,’’ whichever is greater. basic pay for new appointees into the pay of the pay band to which assigned, demonstration project may be set at any 3. Promotion whichever is lower. Highest previous point within the basic pay range for the rate may be applied, if appropriate. (The The movement of an employee to a career track, occupation, and pay band approving manager authorizes the basic higher pay band within the same career to which appointed that is consistent pay.) track or to a different career track and with the special qualifications of the (1) Examples of Voluntary Change to pay band in which the new pay band individual and the unique requirements a Lower Pay Band. An employee in an has a higher maximum basic salary rate of the position. These special Administrative Specialist and than the pay band from which the qualifications may be consideration of Professional Career Track, Pay Band III, employee is leaving. education, training, experience, scarcity position may decide he or she would of qualified applicants, labor market 4. Reassignment prefer a Pay Band II position in the considerations, programmatic urgency, Administrative Support Career Track The movement of an employee from or any combination thereof which is because it offers a different work one position to another position within pertinent to the position to which schedule or duty station. An employee the same pay band in the same career appointed. Highest previous rate may be in Level IV of the Administrative track or to a position in another career used to set the pay of new appointees Specialist and Professional Career Track track and pay band in which the new into the demonstration project. (The who has a family member with a serious pay band has the same maximum basic approving manager authorizes the basic medical problem and wants to be salary rate as the pay band from which pay.) relieved of supervisory responsibilities the employee is leaving. b. Transfers from within DoD and may request a change to Pay Band III. other Federal agencies will have their (2) Example of Pay Adjustment 5. Change to Lower Pay Band pay set using pay setting policy for (Voluntary Change to Lower Pay) or The movement of an employee to a internal actions based on the type of pay change to a Lower Pay Band. An lower pay band within the same career action. employee may accept a change to lower track or to a different career track and c. A recruitment or relocation bonus pay or to a lower pay band through a pay band in which the new pay band may be paid using the same provisions settlement agreement. A Research has a lower maximum basic salary range available for GS employees under 5 Physicist, who is in Level III and is than the pay band from which the U.S.C. 5753. Employees placed through being paid near the top of Level III, is employee is leaving. the DoD Priority Placement Program rated unacceptable in the critical (PPP), the DON Reemployment Priority element Research and Development 6. Pay Adjustment List (RPL), or the Federal Interagency (R&D) Business Management. In Any increase or decrease in an Career Transition Assistance Plan are settlement of a proposal to remove this employee’s rate of basic pay where there entitled to the last earned rate if they employee for unacceptable performance, is no change in the employee’s position. have been separated. an agreement is reached which reduces

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the employee’s pay to a rate near the (salary based on placement in a lower I. Priority Placement Program (PPP) beginning of Level III. pay band). Even though the Department Current PPP procedures apply to new c. Pay Adjustment (Involuntary of Labor (DOL) would make up the hires and internal actions. Change to Lower Pay) or Change to difference between the lower basic pay Lower Pay Band Due to Adverse or and the higher basic pay earned at the J. Expanded Temporary Promotion Performance-based Action. time of injury, the DOL portion is not Current regulations require that When an employee is changed to a considered in the retirement or temporary promotions for more than lower pay band, or receives a change to severance pay computation. 120 days to a higher level position than lower pay due to an adverse or h. Restoration to Duty. previously held must be made performance-based action, the Employees returning from the competitively. Under the demonstration employee’s basic pay will be reduced by uniformed services following an project, ONR would be able to effect at least 6 percent, but will be set at a rate absence of more than 30 days must be temporary promotions of not more than within the rate range for the pay band restored as soon as possible after making one year within a 24-month period to which assigned. (The approving application, but not later than 30 days without competition to positions within manager authorizes the basic pay.) Such after receipt of application. If the the demonstration project. employees will be afforded appeal rights employee’s uniformed service was for as provided by 5 U.S.C. 4303 or 7512, less than 91 days the employee will be K. Voluntary Emeritus Program placed in the position that he or she as appropriate. The ONR Voluntary Emeritus Program would have attained if continuously d. Involuntary Change to Lower Pay is similar to the Voluntary Emeritus employed. If not qualified for this Band or Reassignment to a Career Track Program presented in the AMRDEC position, employee will be placed in the with a Lower Salary Range, Other than demonstration project FRN, section position he or she left. For service of 91 Adverse or Performance-based. III.D.5., page 34890. Under the ONR If the change is not a result of an days or more, the employee may also be program, the CNR will have the adverse or performance-based action, placed in a position of like seniority, authority to offer retired or separated the basic pay will be preserved to the status, and pay. In the case of an individuals voluntary assignments at extent possible within the basic pay employee with a disability incurred in ONR. This authority will include range of the new pay band. If the pay or aggravated during uniformed service, individuals who have retired or cannot be set within the rate range of and after reasonable efforts to separated from Federal service. the new pay band, it will be set at the accommodate the disability is entitled Voluntary Emeritus Program maximum rate of the new pay band and to be placed in another position for assignments are not considered the employee’s pay will be reduced. If which qualified that will provide the ‘‘employment’’ by the Federal the change is a result of a position employee with the same seniority, government (except for purposes of reclassification resulting in the status, and pay, or the nearest injury compensation). Thus, such employee being assigned to a lower pay approximation. assignments do not affect an employee’s band or reassigned to a different career i. Reassignment. entitlement to buyouts or severance track with a lower maximum basic The basic pay normally remains the payments based on an earlier separation salary range, the employee is entitled to same. Highest previous rate may be from Federal service. The Voluntary maintained pay if the employee’s applied, if appropriate. (The approving Emeritus Program will ensure continued current salary exceeds the maximum manager authorizes the basic pay). quality research while reducing the rate for the new band. j. Student Educational Employment e. RIF Action (including employees Program. overall salary line by allowing higher who are offered and accept a vacancy at The Student Educational Employment paid individuals to accept retirement a lower pay band or in a different career Program consists of two components: incentives with the opportunity to track). The Student Temporary Employment retain a presence in the scientific The employee is entitled to Program and the Student Career community. The program will be of maintained pay, if the employee’s Experience Program. Initial basic pay for most benefit during manpower current salary exceeds the maximum students in either of these programs may reductions as senior employees could rate for the new band. be set at any point within the basic pay accept retirement and return to provide f. Upward Mobility or Other Formal range for the career track, occupation, valuable on-the-job training or Training Program Selection. and pay band to which appointed. Basic mentoring to less experienced The employee is entitled to pay may be increased upon return to employees. Voluntary service will not maintained pay, if the employee’s duty (RTD) or conversion to temporary be used to replace any employee or current salary exceeds the maximum appointment, in consideration of the interfere with career opportunities of rate for the new band. student’s additional education and employees. g. Return to Limited or Light Duty experience at the time of the action. To be accepted into the emeritus from a Disability as a Result of Students who work under a parallel program, a volunteer must be Occupational Injury to a Position in a work study program may have their recommended by ONR managers to the Lower Pay Band or to a Career Track basic pay increased in consideration of CNR or designee. Everyone who applies with Lower Basic Pay Potential than additional education and/or experience. is not entitled to a voluntary Held Prior to the Injury. Basic pay for students may be increased assignment. The approving official must The employee is entitled indefinitely based on their CCS appraisal. (The clearly document the decision process to the basic pay held prior to the injury approving manager authorizes the basic for each applicant (whether accepted or and will receive full general and locality pay). rejected) and retain the documentation pay increases. If upon reemployment, an k. Hazard Pay or Pay for Duty throughout the assignment. employee was not given the higher basic Involving Physical Hardship. Documentation of rejections will be pay (basic pay received at the time of Employees under the demonstration maintained for two years. the injury), any retirement annuity or project will be paid hazardous duty pay To ensure success and encourage severance pay computation would be under the provisions of 5 CFR part 550, participation, the volunteer’s Federal based on his or her lower basic pay subpart I. retirement pay (whether military or

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civilian) will not be affected while (6) a one-page Statement of Duties and together into four career tracks. Each serving in a voluntary capacity. Retired Experience; career track consists of a number of pay or separated Federal employees may (7) a provision that states no bands, representing the phases of career accept an emeritus position without a additional time will be added to a progression that are typical for the break or mandatory waiting period. volunteer’s service credit for such respective career track. The pay bands Volunteers will not be permitted to purposes as retirement, severance pay, within each career track are shown in monitor contracts on behalf of the and leave as a result of being a member Figure 3, along with their GS government or to participate on any of the Voluntary Emeritus Program; equivalents. The equivalents are based contracts or solicitations where a (8) a provision allowing either party on the levels of responsibility as defined conflict of interest exists. The same to void the agreement with 10 working in 5 U.S.C. 5104 and not on current rules that currently apply to source days written notice; and basic pay schedules. Appendix C (9) the level of security access selection members will apply to provides definitions for each of the volunteers. required (any security clearance required by the assignment will be career tracks and the pay bands within An agreement will be established managed by the ONR while the them. The career tracks and pay bands between the volunteer, the CNR or volunteer is a member of the Voluntary were developed based upon designee, and the HRO Director. The Emeritus Program). administrative, organizational, and agreement will be reviewed by the local position management considerations at Legal Office for ethics determinations IV. Sustainment ONR. They are designed to enhance pay under the Joint Ethics Regulation. The A. Position Classification equity and enable a more seamless agreement must be finalized before the career progression to the target pay band The position classification changes assumption of duties and shall include: for an individual position or category of are intended to streamline and simplify (1) A statement that the voluntary positions. This combination of career the process of identifying and assignment does not constitute an tracks and pay bands allows for categorizing the work done at ONR. appointment in the civil service, is competitive recruitment of quality ONR will establish an Integrated Pay without compensation, and any and all candidates at differing rates of claims against the Government (because Schedule (IPS) for all demonstration project positions in covered compensation within the appropriate of the voluntary assignment) are waived career track, occupation, and pay band. by the volunteer; occupations. The IPS will replace the current GS and extend the pay schedule It will also facilitate movement and (2) a statement that the volunteer will equivalent to the basic pay range of the placement based upon contribution, in be considered a Federal employee for Government’s Senior Level Pay System conjunction with the CCS described in the purpose of injury compensation; to accommodate positions classified paragraph IV.C. Other benefits of this (3) volunteer’s work schedule; above the GS–15 level under a proposed arrangement include a dual career track (4) length of agreement (defined by new STRL demonstration project for S&E employees and greater length of project or time defined by initiative being developed by DoD. competitiveness with academia and weeks, months, or years); private industry for recruitment. (5) support provided by the ONR 1. Career Tracks and Pay Bands Appendix D identifies the occupational (travel, administrative, office space, Within the IPS, occupations with series currently within each of the three supplies); similar characteristics will be grouped career tracks.

a. Target Pay Band. career track. Employees’ basic pay will Presently, ONR positions are Each position will have a designated be capped at the target pay band until identified by occupational groups and target pay band under the other appropriate conditions (e.g., series of classes in accordance with demonstration project. This target pay competition, position management OPM position classification standards. band will be identified as the pay band approval, increase in or acquisition of Under the demonstration project, ONR to which an incumbent may be higher level duties, and approval of an will continue to use occupational series advanced without further competition accretion of duties promotion) have designators consistent with those within a career track. These target pay been met, and the employee has been currently authorized by OPM to identify bands will be based upon present full promoted into the next higher level. positions. This will facilitate related performance levels. Target pay bands b. Occupational Series and Position personnel management requirements, may vary based upon occupation or Titling. such as movement into and out of the

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demonstration project. Other Each element has generic descriptors for determination will be ‘‘flagged’’ for occupational series may be added or every pay band. These descriptors referral to a human resources specialist deleted as needed to support the explain the type of work, degree of for determination. demonstration project. Interdisciplinary responsibility, and scope of (1) Guidelines for FLSA positions will be accommodated within contributions that need to be ultimately Determinations. the system based upon the accomplished to reach the highest basic i. Supervisory Information: Provided qualifications of the individual hired. pay potential within each pay band. through an automated system in a Titling practices consistent with those (See Appendix E.) To classify a position, checklist format; results of this checklist established by OPM classification a manager would select the pay band have an impact on FLSA determination. standards will be used to determine the which is most indicative overall of the ii. FLSA Information: Provided official title. Such practice will facilitate type of duties to be performed and the through an automated system in a other personnel management contributions needed. For example: A checklist format; results of this checklist requirements, such as the following: supervisor needs a secretarial position in conjunction with the supervisory Movement into and out of the for a branch. In reading the elements information provide a basis for the demonstration project, reduction in and descriptors for the Administrative FLSA determination. force, external reporting requirements, Support Career Track, the supervisor iii. If required, the section entitled and recruitment. CCS pay band determines that the Level II descriptors ‘‘Purpose of Position’’ will be used to descriptors and Requirements illustrate the type of work and assist in FLSA determination. Document (RD) (see paragraph IV.A.2) contributions needed. Therefore, the information will be used for specific position would be classified as a iv. RD’s requiring additional review career track, pay band, and titling Secretary, Level II. before being finalized will be forwarded determinations. d. Fair Labor Standards Act (FLSA). to a human resources specialist to c. Classification Standards. Demonstration project positions will review the FLSA determination. Under the proposed demonstration be covered under the FLSA and 5 CFR (2) Nonsupervisory and Leader project, the number of classification part 551. Determination of their status Positions. standards would be reduced to three (exempt or nonexempt) will be made Figure 4 shows the exempt or (see Figure 3). Each standard would based on the criteria contained in 5 CFR nonexempt status applicable to align with one of the three career tracks part 551. The status of each new nonsupervisory and leader positions in and would cover all positions within position under the demonstration the indicated career track and pay band. that career track. Each career track has project will be determined using In those cases where ‘‘Review’’ is two or three elements that are computer assisted analysis as part of an indicated, the FLSA status must be considered in both classifying a position automated process for preparing the RD. determined based on the specific duties and in judging an individual’s Those positions for which the computer and responsibilities of the subject contributions for pay setting purposes. is unable to make the final FLSA position.

(3) Supervisory Positions. the current classification system. The 3. Delegation of Classification Authority FLSA determination for supervisory RD will be prepared by managers using Classification authority will be positions must be made based on the a menu-driven, automated system. The delegated to managers as a means of duties and responsibilities of the automated system will enable managers particular position involved. As a rule, increasing managerial effectiveness and to classify and establish many positions expediting the classification function. if a position requires supervision of without intervention by a human employees who are exempt under FLSA, This will be accomplished as follows: resources specialist. The abbreviated RD a. Delegated Authority. the supervisory position is likely to be will combine the position information, i. The CNR will delegate classification exempt also. staffing requirements, and contribution authority to the Human Resources 2. Requirements Document (RD) expectations into a 1- or 2-page Office (HRO) Director. The HRO An RD will replace the Optional Form document. Director may further delegate authority 8 and position description used under to Department Heads and Directors of

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the immediate organization of the 3. Classification Appeals appropriately classified as Scientific position being classified. An employee may appeal the and Professional Positions (STs) because ii. The classification approval must be occupational series, title, career track, or of the degree of supervision and level of at least one level above the first-level pay band of his or her position at any managerial responsibilities. Neither are supervisor of the position. time. An employee must formally raise these positions appropriately classified iii. First-line supervisors at any level the area of concern to supervisors in the as Senior Executive Service (SES) will provide classification immediate chain of command, either positions because of their requirement recommendations. verbally or in writing. If an employee is for advanced specialized scientific or iv. HRO support will be available for engineering expertise and because the not satisfied with the supervisory guidance and recommendations positions are not at the level of general response, he or she may then appeal to concerning the classification process. managerial authority and impact the DoD appellate level. If an employee (Any dispute over the proper required for an SES position. classification between a manager and is not satisfied with the DoD response, The original Above GS–15 Position the HRO will be resolved by the CNR or he or she may then appeal to the OPM concept was to be tested for a five-year designee. only after DoD has rendered a decision period. The number of trial positions b. Position Classification under the provisions of this was set at 40 with periodic reviews to Accountability. demonstration project. Since OPM does determine appropriate position Those to whom authority is delegated not accept classification appeals on requirements. The Above GS–15 are accountable to the CNR. The CNR is positions which exceed the equivalent Position concept is currently being accountable to the DON. Those with of a GS–15 level, appeal decisions evaluated by DoD management for its delegated authority are expected to involving Pay Band V for science and effectiveness; continued applicability to comply with demonstration project engineering positions classified about the current STRL scientific, engineering, guidelines on classification and position the GS–15 level will be rendered by and technology workforce needs; and management, observe the principle of DoD and will be final. Appellate appropriate allocation of billets based equal pay for equal work, and ensure decisions from OPM are final and on mission requirements. The degree to that RD’s are current. First-line binding on all administrative, certifying, which ONR plans to participate in this supervisors will develop positions using payroll, disbursing, and accounting concept and develop classification, the automated system. All positions officials of the Government. Time compensation, and performance must be approved through the proper periods for case processing under 5 CFR management policy, guidance, and chain of command. subpart F, sections 511.603, 511.604, implementation processes will be based and 511.605 apply. on the final outcome of the DoD B. Integrated Pay Schedule An employee may not appeal the evaluation. Under the demonstration project, an accuracy of the RD, the demonstration IPS will be established which will cover project classification criteria, or the pay- 5. Distinguished Contributions all demonstration project positions at setting criteria; the propriety of a basic Allowance (DCA) ONR. This IPS, which does not include pay schedule; the assignment of The DCA is a temporary monetary locality pay, will initially extend from occupational series to the occupational allowance up to 25 percent of basic pay the basic pay for GS–1, step 1 to the family; or matters grievable under an (which, when added to an employee’s basic pay for GS–15, step 10. The administrative or negotiated grievance rate of basic pay, may not exceed the adjusted basic pay cap, which does procedure, or an alternative dispute rate of basic pay for Executive Level IV) include locality pay, is Executive Level resolution procedure. paid on either a bi-weekly basis IV, currently $155,500. The salary range The evaluation of classification (concurrent with normal pay days) or as for the S&E pay band V pay band is appeals under this demonstration a lump sum following completion of a expected to be established under the project is based upon the demonstration designated contribution period(s), or new STRL demonstration project project classification criteria. Case files combination of these, at the discretion initiative being developed for positions will be forwarded for adjudication of ONR. It is not basic pay for any classified above GS–15. through the HRO and will include purpose, i.e., retirement, life insurance, copies of appropriate demonstration severance pay, promotion, or any other 1. Annual Pay Action project criteria. payment or benefit calculated as a ONR will eliminate separate pay percentage of basic pay. The DCA will 4. Above GS–15 Positions actions for within-grade increases, be available to certain employees at the general and locality pay increases, The pay banding plan for the top of their target pay bands, whose performance awards, quality step Scientific and Engineering occupational present contributions are worthy of increases, and most career promotions family includes a pay band V to provide scores found at a higher pay band, and replace them with a single annual the ability to accommodate positions whose level of contribution is expected pay action (including either permanent with duties and responsibilities that to continue at the higher pay band for or bonus pay or both) linked to the CCS. exceed the General Schedule GS–15 at least 1 year, and current market This will eliminate the paperwork and classification criteria. This pay band is conditions require additional processing associated with multiple pay based on the Above GS–15 Position compensation. actions which average three per concept found in other STRL personnel Assignment of the DCA rather than a employee per year. management demonstration projects change to a higher pay band will that was created to solve a critical generally be appropriate for such 2. Overtime Pay classification problem. The STRLs have employees under the following Overtime will be paid in accordance positions warranting classification circumstances: Employees have reached with 5 CFR part 550, subpart A. All above GS–15 because of their technical the top of their target pay bands and (1) nonexempt employees will be paid expertise requirements including when it is not certain that the higher overtime based upon their ‘‘hourly inherent supervisory and managerial level contributions will continue regular rate of pay,’’ as defined in responsibilities. However, these indefinitely (e.g., a special project existing regulation (5 CFR part 551). positions are not considered to be expected to be of one- up to five-year

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duration); (2) when no further operating procedures. These details will to a combined total of 25 percent of promotion or compensation include time frames for nomination and basic pay. A merit increase which raises opportunities are available; (3) in either consideration, payout scheme, an employee’s pay to the top rate for his situation (1) or (2), current market justification content and format, budget or her target pay band (thus making the conditions compensate similar authority, guidelines for selecting employee eligible for the DCA) may be contributions at a greater rate in like employees for the allowance and for granted concurrent with the DCA. positions in private industry and determining the appropriate amount, Receipt of the DCA does not preclude an academia; and (4) there is a history of and documentation required by the employee from being granted any award significant recruitment and retention employee acknowledging he or she (including a contribution award) for difficulties associated with such understands the criteria and temporary which he or she is otherwise eligible. positions. nature of the DCA. a. Eligibility. c. Reduction or Termination of a DCA. C. Contribution-Based Compensation (1) Employees in Levels III and IV of (1) A DCA may be reduced or System (CCS) the S&E Professional Career Track and terminated at any time the ONR deems 1. General those in Levels III, IV, and V of the appropriate (e.g., when the special The purpose of the CCS is to provide Administrative Specialist and project upon which the DCA was based an effective means for evaluating and Professional Career Track are eligible for ends; if performance or contributions compensating the ONR workforce. It the DCA if they have reached the top decrease significantly; or if labor market provides management, at the lowest CCS score for their target pay band with conditions change, etc.). The reduction practical level, the authority, control, recommendations for a higher Overall or termination of a DCA is not and flexibility needed to develop a Contribution Score (OCS) for their appealable or grievable. contributions; they have reached the (2) If an employee voluntarily highly competent, motivated, and maximum rate of basic pay available for separates from ONR before the productive workforce. CCS will promote their target pay band; there are expiration of the DCA, an employee may increased fairness and consistency in externally imposed limits to higher pay be denied DCA payment. Authority to the appraisal process, facilitate natural bands or the higher level contributions establish conditions and/or penalties career progression for employees, and are not expected to last indefinitely; and will be spelled out in the written provide an understandable basis for market conditions require greater authorization of an individual’s DCA. career progression by linking compensation for these contributions. d. Lump-Sum DCA Payments. contribution to basic pay (2) Employees may receive a DCA for (1) When ONR chooses to pay part or determinations. up to three years. The DCA all of an employee’s DCA as a lump sum CCS combines performance appraisal authorization will be reviewed and payable at the end of a designated and job classification into one annual reauthorized as necessary, but at least period, the employee will accrue process. At the end of each CCS annually at the time of the CCS entitlement to a growing lump-sum appraisal period, basic pay adjustment appraisal through nomination by the balance each pay period. The percentage decisions are made based on each pay pool manager and approval by the rate established for the lump-sum DCA employee’s actual contribution to the CNR. Employees in the S&E Professional will be multiplied by the employee’s organization’s mission during the Career Track may receive an extension biweekly amount of basic pay to period. A separate function of the of up to two additional years (for a total determine the lump sum accrual for any process includes comparison of of five years). The DCA extension pay period. This lump-sum percentage performance in critical elements to authorization will be reviewed and rate is included in applying the 25 acceptable standards to identify reauthorized as necessary, but at least percent limitation. unacceptable performance that may on an annual basis at the time of the (2) If an employee covered under a warrant corrective action in accordance CCS appraisal through nomination by lump-sum DCA authorization separates, with 5 CFR part 432. Supervisory the pay pool manager and approval by or the DCA is terminated (see paragraph officials determine scores to reflect each the CNR. c), before the end of that designated employee’s contribution, considering (3) Monetary payment may be up to period, the employee may be entitled to both how well and at what level the 25 percent of basic pay. payment of the accrued and unpaid employee is performing. Often the two (4) Nominees would be required to balance under the conditions considerations are inseparable. For sign a memorandum of understanding established by ONR. ONR may establish example, an employee whose written or a statement indicating they conditions governing lump-sum documents need to be returned for understand that the DCA is a temporary payments (including penalties in cases rework more often than those of his or allowance; it is not a part of basic pay such as voluntary separation or her peers also likely requires a closer for any purpose; it would be subject to separation for personal cause) in general level of oversight, an important factor review at any time, but at least on an plan policies or in the individual when considering level of pay. annual basis; and the reduction or employee’s DCA authorization. The performance planning and rating termination of the DCA is not e. DCA Budget Allocation. portions of the demonstration project’s appealable or grievable. The CNR may establish a total DCA appraisal process constitute a b. Nomination. budget allocation that is never greater performance appraisal program which In connection with the annual CCS than 10 percent of the basic salaries of complies with 5 CFR part 430 and the appraisal process, pay pool managers the employees currently at the cap in DoD Performance Management System, may nominate eligible employees who the S&E Professional Career Track, Pay except where waivers have been meet the criteria for the DCA. Packages Bands III and IV, and the Administrative approved. Performance-related actions containing the recommended amount Specialist and Professional Career initiated prior to implementation of the and method of payment of the DCA and Track, Pay Bands III, IV, and V. demonstration project (under DON a justification for the allowance will be f. Concurrent Monetary Payments. performance management regulations) forwarded through the supervisory Employees eligible for a DCA may be shall continue to be processed in chain to the CNR. Details regarding this authorized to receive a DCA and a accordance with the provisions of the process will be addressed in standard retention allowance at the same time, up appropriate system.

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2. CCS Process in detail in Appendix E have been each career track. Within specific CCS measures employee contributions initially identified for evaluating the parameters, elements may be weighted by breaking down the jobs in each contributions of ONR personnel covered or even determined to be not applicable career track using a common set of by this initiative. They are designed to for certain categories of positions. All ‘‘elements.’’ The elements for each career capture the highest level of the primary elements applicable to the position are track shown in Figure 5 and described content of the jobs in each pay band of critical as defined by 5 CFR part 430.

For each element, ‘‘Discriminators’’ each pay band for each discriminator) each career track. (See Figure 6.) Basic and ‘‘Descriptors’’ are provided to assist define the expected level of contribution pay adjustments are based on a in distinguishing low to high at the top of the related pay band for comparison of the employee’s level of contributions. The discriminators (two that element. contribution to the normal pay range for to four for each element) break down Scores currently range between 0 and that contribution and the employee’s aspects of work to be measured within 92; specific relationships between present rate of basic pay. the element. The descriptors (one for scores and pay bands are different for

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Supervisors and pay pool panels each pay pool will be combined based do not apply at all to the effective determine an employee’s contribution on criteria such as similarity of work accomplishment of the organization’s level for each element considering the and chain of command. To facilitate mission, they may establish element discriminators as appropriate to the equity and consistency, element weights weights including a weight of zero position. A contribution score, available and applicability and CCS score which renders the element not to that level, is assigned accordingly. adjustments are determined by a pay applicable. Element weights are not For example, a scientist whose pool panel, rather than by individual intended for application to individual contribution in the Technical Problem supervisors. Basic pay adjustments, employees. Instead, they may be Solving element for S&E Professionals is contribution awards, and DCA’s may be established only for subcategories of determined to be at Level II may be recommended by the pay pool panel or positions, not to exceed a maximum of assigned a score of 18 to 47. Eighteen by individual supervisors. Pay pool five subcategories in each career track. reflects the lowest level of panels will consist of Department Heads Subcategories for S&E Professionals responsibility, exercise of independent and Directors, or other individuals who might be: Supervisor, Program Manager, judgment, and scope of contribution; are familiar with the organization’s and Support S&E. Subcategories should and 47 reflects the highest. For Level III work and the contributions of its include a minimum of five positions, contributions, a value of 44 to 66 may employees. The Executive Director or when possible. Weights must be be assigned. Each higher pay band designee will function as pay pool consistent within the subcategory. equates to a higher range of values with manager, with final authority to decide b. Supplemental Criteria. the total points available to S&E weights, scores, basic pay adjustments, The CCS level descriptors are Professionals to be determined based on and awards. designed to be general so that they may the salary range for pay band V under 3. Pay Pool Annual Planning be applied to all employees in the career the proposed DoD above GS–15 position track. Supervisors and pay pool panels Prior to the beginning of each annual initiative. Each element is judged may establish supplemental criteria to appraisal period, the pay pool manager separately and level of work may vary further inform employees of expected and panel will review pay pool-wide for different elements. The scores for contributions. This may include (but is expectations in the areas described each element are then averaged to not limited to) examples of below. determine the Overall Contribution contributions which reflect work at each a. Element Weights and Applicability. level for each element, taskings, Score (OCS). As written, all elements are weighted objectives, and/or standards. The CCS process will be carried out equally. If pay pool panels and within pay pools made up of combined managers decide that some elements are 4. Annual CCS Appraisal Process (See ONR organizations. The organizations in more important than others or that some Figure 7)

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The ONR appraisal period will their contributions by preparing a otherwise the summary level will be normally be one year, with a minimum Yearly Accomplishment Report (YAR). Acceptable. Unacceptable ratings must appraisal period of 90 days. At the Pay pool managers may exempt groups be reviewed and approved by a higher beginning of the appraisal period, or of positions from the requirement to level than the first-level supervisor. upon an employee’s arrival at ONR or submit YARs; in cases where YARs are If an employee changes positions into a new position, the following not required, employees may submit during the last 90 days of the appraisal information will be communicated to them at their own discretion. Standard period, the losing supervisor will employees so that they are informed of operating procedures will provide conduct a performance rating (i.e., rate the basis on which their performance guidance for pay pools and employees each element Acceptable or and contributions will be assessed: on the content and format of YARs, and Unacceptable and determine the Their career track and pay band; on other types of information about summary level) at the time the applicable elements, descriptors, and employee contributions which should employee moves to the new position. discriminators; element weights; any be developed and considered by This will serve as the employee’s rating established supplemental criteria; OCS’s supervisors. This will include of record. For employees who report to which correspond to each employee’s procedures for capturing contribution ONR during the last 90 days of the NPR (see section IV.C.6); and basic information regarding employees who appraisal period, any close-out rating of acceptable performance standards. The serve on details, who change positions Acceptable (or its equivalent) or better CCS Summary (Appendix E) will be during the appraisal period, who are from another Government agency will used to facilitate and document this new to ONR, and other such serve as the employee’s rating of record communication. All employees will be circumstances. (the employee will be rated Acceptable). provided this information; however, Supervisors will review the The determination of CCS scores and employees in some situations may not employee’s YAR and other available application of related pay adjustments receive CCS scores. These situations are information about the employee’s for such employees is set forth in described in section IV.C.5, Exceptions. contributions during the appraisal section IV.C.5, ‘‘Exceptions.’’ The communication of information period and determine an initial CCS The pay pool panel will meet to described by this paragraph constitutes score for each element considering the compare scores, make appropriate performance planning as required by 5 discriminators as appropriate to the adjustments, and determine the final CFR 430.206(b). position. In addition, supervisors will OCS for each employee. Final approval Supervisor and employee discussion determine whether the employee’s of CCS scores and element and of organizational objectives, specific performance was acceptable or summary ratings will rest with the pay work assignments, and individual unacceptable in each element when pool manager (unless higher level performance expectations (as needed), compared against the basic acceptable approval is requested or deemed should be conducted on an ongoing performance standards. The rating of the necessary). Supervisors will basis. Either the supervisor or the elements (all that are applicable are communicate the element scores, employee may request a formal review designated critical as defined by 5 CFR ratings, summary level, and OCS to each during the appraisal period; otherwise, part 430) will serve as the basis for employee, and discuss the results and a documented review is required only at assignment of a summary level of plans for continuing growth. Employees the end of the appraisal period. Acceptable or Unacceptable. If any rated Unacceptable will be provided At the end of the appraisal period, element is rated unacceptable, the assistance to improve their performance employees will provide input describing summary level will be Unacceptable; (see paragraph V.A).

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The CCS process will be facilitated by Student Educational Employment pay equivalent to GS–15, step 10 an automated system, the Contribution- Program employees. (without locality pay), with a CCS score based Compensation System Data If supervisors believe that the nature of 80. The distance between these upper System (CCSDS). During the appraisal of such an employee’s contributions and lower boundaries for a given overall process, all scores and supervisory provide a meaningful basis to determine contribution score is 12 percent of basic comments will be entered into the a CCS score, they may appraise pay for all available CCS scores. Using CCSDS. The CCSDS will provide employees in the categories listed these constraints, the interval between supervisors, pay pool panel members, above, provided that the employee has scores is approximately 2.37 percent and pay pool managers with background worked at least 90 days in an ONR through the entire range of pay. The information (e.g., YARS, employees’ position during the appraisal period. lines will be extended using the same prior year scores and current basic pay) Those employees mentioned above interval so that the upper boundary of and spreadsheets to assist them in who are not appraised under CCS will the normal range of basic pay comparing contributions and not be eligible for merit increases or accommodates the basic pay needed for determining scores. Records of contribution awards. (This will affect the S&E Professional career track pay employee appraisals will be maintained the calculation of service credit for RIF band V. (The actual end point will vary in the CCSDS, and the system will be (see section V.C.)). All employees listed depending on any pay adjustment able to produce a hard copy document above will be given full general and factors, e.g., general increase.) The for each employee which reflects his or locality increases (as described in formula used to derive the NPR may be her final approved score. sections IV.C.7.a, ‘‘General Increases,’’ adjusted in future years of the ‘‘ ’’ demonstration project. See Appendix F 5. Exceptions and IV.C.7.c, Locality Increases ). All employees are eligible for awards under for further details regarding the All employees who have worked 90 ONR’s Incentive Awards Program, such formulation of the NPR. days or more by the end of the appraisal as ‘‘On-the-Spot’’ and Special Act Each year the boundaries for the NPR period will receive a performance rating Awards, as appropriate. plus the minimum and maximum rate of of record. However, in certain situations basic pay for each pay band will be ONR does not consider the actual 6. Normal Pay Range (NPR)—Basic Pay adjusted by the amount of the across- determination of CCS scores to be Versus Contribution the-board GS percentage increase necessary. In other situations, it may not The CCS assumes a relationship granted to the Federal workforce. At the be feasible to determine a meaningful between the assessed contribution of the end of each annual appraisal period, CCS score. Therefore, the determination employee and a normal range of pay. employees’ contribution scores will be of CCS scores will not be required for For all possible contribution scores determined by the CCS process the following types of employees: (a) available to employees, the NPR spans described above, and then their overall Employees on intermittent work a basic pay range of 12 percent. contribution scores and current rates of schedules; (b) those on temporary Employees who are compensated below basic pay will be plotted as a point on appointments of one year or less; (c) the NPR for their assessed score are a graph along with the NPR. The those who work less than six months in considered ‘‘undercompensated,’’ while position of the point relative to the NPR an appraisal period (e.g., on extended employees compensated above the NPR gives a relative measure of the degree of absence due to illness); (d) those on are considered ‘‘overcompensated.’’ over- or undercompensation of the long-term training for all or much of the The lower boundary of the NPR is employee, as shown in Figure 8. Points appraisal period; (e) employees who initially established by fixing the basic which fall below the NPR indicate have reported to ONR or to a new pay equivalent to GS–1, step 1 (without undercompensation; points which fall position during the 90 days prior to the locality pay), with a CCS score of zero. above the NPR indicate end of the appraisal period; and (f) The upper boundary is fixed at the basic overcompensation.

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7. Compensation increase, (2) locality increase, (3) merit standing relative to the NPR has been increase, and (4) contribution awards. determined, the pay pool manager, in Presently, employee pay is From these pay categories, single annual consultation with the pay pool panel or established, adjusted, and/or augmented pay actions would be authorized based other pay pool supervisory and staff in a variety of ways, including general primarily on employees’ contributions. officials, will determine the appropriate pay increases, locality pay increases, Competitive promotions will still be basic pay change and contribution special rate adjustments, within-grade processed under a separate pay action; award, if appropriate, for each increases (WGI’s), quality step increases most career promotions will be employee. Standard operating (QSI’s), performance awards, and processed under the CCS. procedures will provide guidance, promotions. Multiple pay changes in In general, the goal of CCS is to pay including market salary reference data, any given year (averaging three per in a manner consistent with employees’ to assist pay pool managers in making employee) are costly to process and do contributions or, in other words, migrate pay determinations. In most cases, the not consider comprehensively the employees’ basic pay closer to the NPR. pay pool manager will approve basic employee’s contributions to the One result may be a wider distribution pay changes and awards. In some cases, organization. Under the demonstration of pay among employees for a given however, approval of a higher level project, ONR will distribute the budget level of duties. official will be required. Figure 9 authority from the sources listed above After the CCS appraisal process has summarizes the eligibility criteria and into four pay categories: (1) General been completed and the employees’ applicable limits for each pay category.

The CCSDS will calculate each in relation to the NPR. The system will officials in selecting and implementing employee’s OCS and his or her standing provide a framework to assist pay pool a payout scheme. It will alert

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management to certain formal limits in general increase); (2) in excess of ‘‘undercompensated’’ category and to granting pay increases; e.g., an established basic pay caps; (3) in excess employees in the ‘‘overcompensated’’ employee may not receive a permanent of the maximum rate of basic pay for the category who are on maintained pay. increase above the maximum rate of individual’s pay band (unless the Standard operating procedures will basic pay for his or her pay band until employee is being concurrently provide guidance to pay pool managers a corresponding level change has been advanced to the higher pay band); or (4) in establishing and applying criteria to effected. Once basic pay and award above any outside-imposed dollar limit. determine significant contributions decisions have been finalized and Merit increases for employees in the which warrant awards. An award approved, the CCSDS will prepare the NPR will be limited to six percent of exceeding $10,000 requires CNR data file for processing the pay actions basic pay, not to exceed the upper limit approval. (See Figure 9.) Pay pools may and maintain a consolidated record of of the NPR for the employee’s score. In also grant time-off as a contribution CCS pay actions for all ONR addition, merit increases for employees award, in lieu of or in addition to cash. demonstration project employees. in the undercompensated range may not 8. Career Movement Based on CCS a. General Increases. exceed six percent above the lower rail General increase budget authority will of the NPR, or 20 percent of basic pay Movement through the pay bands will be available to pay pools as a straight without CNR or designee approval. be determined by contribution and basic percentage of employee salaries, as The size of ONR’s continuing pay pay at the time of the annual CCS derived under 5 U.S.C. 5303 or similar fund is based on appropriate factors, appraisal process. authority. Pay pool panels or managers including the following: (1) Historical The ONR demonstration project is an may reduce or deny general pay spending for within-grade increases, integrated system that links level of increases for employees whose quality step increases, and in-level work to be accomplished (as defined by contributions are in the career promotions (with dynamic a career track and pay band) with overcompensated category. (See Figure adjustments to account for changes in individual achievement of that work (as 9.) Such reduction or denial may not law or in staffing factors, e.g., average defined by an OCS) to establish the rate place an employee in the starting salaries and the distribution of of appropriate compensation (as defined undercompensated category. An employees among job categories and by the career track pay schedule) and to employee receiving maintained pay band levels); (2) labor market conditions determine progression through the (except one receiving maintained pay and the need to recruit and retain a career track. This section addresses only for an occupational injury who receives skilled workforce to meet the business changes in level which relate directly to a full general pay increase) will receive needs of the organization; and (3) the the CCS determination. half of the across-the-board GS fiscal condition of the organization. When an employee’s OCS falls within percentage increase in basic pay until ONR will periodically review or will three scores of the top score available to the employee’s basic pay is within the review every two to three years its his or her current pay band, supervisors basic pay range assigned for their continuing pay fund to determine if any should consider whether it is current position or for two years, adjustments are necessary. appropriate to advance the employee to whichever is less. ONR employees on The amount of budget authority the next higher level (refer to IV.A.1.a pay retention at the time of available to each pay pool will be for other criteria). If progression to the demonstration project implementation determined annually by the CNR. next higher level is deemed warranted, or as a result of placement through the Factors to be considered by the CNR in supporting documentation would be DON RPL, DoD PPP or the Federal determining annual budget authority included with the CCS appraisal and Interagency Career Transition may include market salaries, mission forwarded through the appropriate Assistance Plan will receive half of the priorities, and organizational growth. channels for approval. If advancement is across-the-board GS percentage increase Because statistical variations will occur not considered appropriate at this time, until the employee’s maintained pay is in year-to-year personnel growth, any the employee would remain in his or exceeded by the maximum rate for the unexpended merit increase authorities her current pay band. Future basic pay employee’s pay band or the maintained may be transferred to the Contribution raises would be capped by the top of the pay is ended due to a promotion. Awards category. employee’s current pay band unless the General increase authority not expended c. Locality Increases. employee progresses to the next higher is available to either the merit increase All employees will be entitled to the pay band through a CCS-related or contribution award pay categories or locality pay increase authorized by law promotion, an accretion of duties both. and regulation for their official duty promotion, or a competitive promotion. b. Merit Increases. station and/or position. a. Advancements in Level Which May Merit increases will be calculated d. Contribution Awards. be Approved by the Pay Pool Manager. after the determination of employees’ Authority to pay contribution awards Advancements to all levels except general increases. Merit increases may (lump-sum payments recognizing Level V of the S&E Professional Career be granted to employees whose significant contributions) will be Track may be approved by the pay pool contribution places them in the initially available to pay pools as a manager. ‘‘normal’’ or ‘‘undercompensated’’ straight 1.5 percent of employees’ basic b. Advancements in Level Which categories. (See Figure 9.) In general, the pay (similar to the amount currently Must be Approved by the CNR. higher the range in which the employee available for performance awards). The Advancement to (1) levels outside is contributing compared to his or her percentage rate may be adjusted in target pay bands or established position basic pay, the higher the merit increase future years of the demonstration management criteria; (2) Levels IV and should be. However, the following project. In addition, unexpended V of the S&E Professional Career Track; limitations apply: A merit increase may general increase and merit increase and (3) Levels IV and V of the not place any employee’s basic pay (1) budget authorities may be used to Administrative Specialist and in the ‘‘overcompensated’’ category (as augment the award category. Professional Career Track require established by the NPR for the Contribution awards may be granted to approval by the CNR or his or her upcoming year, which has been those employees whose contributions designee. Details regarding the process adjusted by the amount of the new place them in the ‘‘normal’’ or for nomination and consideration,

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format, selection criteria, and other contribution award); reductions in level B. Reduction-in-Force (RIF) Procedures aspects of this process will be addressed without reduction in pay due to 1. RIF Authority in the standard operating procedures. regression (see section IV.C.8.d); any c. Advancement to Level V of the action for which another appeal or Under the demonstration project, Science and Engineering (S&E) complaint process exists. ONR would be delegated authority to Professional Career Track. V. Separations approve RIF as defined in Secretary of Vacancies in this pay band will be the Navy Instruction 12351.5F or its filled in accordance with guidance A. Performance-Based Reduction-in-Pay successor and the use of separation pay issued by DoD. or Removal Actions incentives. d. Regression to Lower Level. (See This section applies to reduction in Figure 8, ‘‘Employee A.’’) 2. RIF Definitions If an employee is contributing less pay or removal of demonstration project than expected for the level at which he employees based solely on unacceptable a. Competition in RIF. or she is being paid, the individual may performance. Adverse action procedures When positions are abolished, regress into a lower pay band through under 5 CFR part 752 remain employees are released from their reduction or denial of general increases unchanged. retention levels in inverse order of their and ineligibility for merit increases. When a supervisor determines during retention standing, beginning with the (This is possible because the NPR plus or at the end of the appraisal period that employee having the lowest standing. If the minimum and maximum pay rates the employee is not completing work an employee is reached for release from for each pay band will be adjusted assignments satisfactorily, the a retention level, he/she could have a upwards each year by the across-the- supervisor must make a determination right to be assigned to another position board GS percentage increase in basic as to whether the employee is within their same career track and pay pay.) If the employee’s basic pay performing unacceptably in one or more band or they could have a right to regresses to a point below the pay of the critical elements. All CCS retreat to a position previously held. overlap area between his or her level elements applicable to the employee’s b. Competitive Area. and the next lower level, it will no position are critical as defined by 5 CFR part 430. A separate competitive area will be longer be appropriate to designate him established by geographic location for or her as being in the higher level. Unacceptable performance determinations must be made by all personnel included in the ONR Therefore, the employee will be demonstration project. formally changed to the lower level. The comparing the employee’s performance employee will be informed of this to the acceptable performance standards c. Competitive Level. change in writing, but procedural and established for elements. Positions in the same occupational appeal rights provided by 5 U.S.C. 4303 At any time during or at the end of the pay band, which are similar enough in and 7512 (and related OPM regulations) appraisal period that an employee’s duties and qualifications that employees will not apply (except in the case of performance is determined to be can perform the duties and employees who have veterans’ unacceptable in one or more critical responsibilities including the selective preference). ONR is providing for elements, the employee will be placement factor, if any, of any other waivers of the statute and regulations provided assistance in improving his or position in the competitive level upon for such actions. Further, because a her performance. This will normally assignment to it, without any loss of change to lower level under such include clarifying (or further clarifying) productivity beyond what is normally circumstances is not discretionary, the the meaning of terms used in the expected. change may not be grieved under ONR’s acceptable performance standards (e.g., d. Service Computation Date (SCD). administrative grievance procedures. ‘‘timely’’ ‘‘thorough research,’’ and ‘‘overall high quality’’) as they relate to The employee’s basic Federal SCD 9. CCS Grievance Procedures the employee’s specific responsibilities would be adjusted for CCS results credit. An employee may grieve the appraisal and assignments. An employee whose received under CCS using procedures performance is unacceptable after he or (1) Federal SCD. specifically designed for CCS appraisals. she has been given a reasonable An employee’s basic Federal SCD may Under these procedures, the employee’s opportunity to improve may be removed be credited with up to 20 years credit grievance will first be considered by the or reduced in grade or level, in based on the results of the CCS process. pay pool panel, who will recommend a accordance with the provisions of 5 The CCS RIF Assessment Category decision to the pay pool manager. If the U.S.C. 4303 and related OPM would be used to determine the number employee is not satisfied with the pay regulations. Employees may also be of RIF years credited. The CCS RIF pool manager’s decision, he or she may removed or reduced in grade or level Assessment Category is the combination file a second-step grievance with the based on unacceptable performance of the employee’s standing under the next higher level ONR management under the provisions of 5 U.S.C. 7512. CCS relative to the NPR and any merit official. This official will render a final All procedural and appeal rights set increase, DCA, contribution award or ONR decision on the grievance. forth in the applicable statute and promotion. Figure 10 shows the RIF The following are not grievable: pay related OPM regulations will be years available for each CCS RIF actions resulting from CCS (receipt, afforded to demonstration project Assessment Category [proposed non-receipt or amount of general employees removed or reduced in grade revisions to the RIF Assessment increase, merit increase, DCA or or level for unacceptable performance. Category are depicted].

FIGURE 10—CS RIF ASSESSMENT CATEGORIES

RIF years Assessment category available

0 = Employees within the overcompensated range without any portion of a general increase ...... 0 1 = Employees receiving maintained pay or any portion of a general increase but no merit increase or contribution (cash/time off) ... 12

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FIGURE 10—CS RIF ASSESSMENT CATEGORIES—Continued

RIF years Assessment category available

2 = Employees (without a capped salary** or career promotion) receiving a total compensation increase* of 6% or less or with a capped salary receiving a total compensation increase of 3% or less ...... 16 3 = Employees receiving (1) a total compensation increase* greater than 6%; (2) a career promotion; or (3) with a capped salary** receiving a total compensation increase greater than 3% ...... 20

Final RIF Credit: Average of the three most recent CCS Process Results received during the 4-year period prior to the cutoff date. * Total compensation includes merit increase, contribution award (cash/time off), and distinguished contributions allowance. ** Capped means the employee has the maximum salary for the assigned pay band.

(2) CCS Process Results. by an employee with a lower retention performance-based action will compete If an employee has fewer than three standing. In the case of all preference from the position to which he or she CCS process results, the value (RIF years eligibles, they may displace up to the will be or has been demoted. available) of the actual number of equivalent of three grades or intervals 4. Notice Period process results on record will be below the highest equivalent grade of divided by the number of actual process their current pay band in the same or a The notice period and procedures in results on record. In cases where an different career track regardless of 5 CFR subpart H, section 351.801 will employee has no actual CCS process whether they previously held the be followed. results, the employee will be given the position provided they are fully 5. RIF Appeals additional RIF CCS process results qualified for the position and the credit for the most common, or ‘‘modal’’ position is occupied by an employee Under the demonstration project, ONR demonstration project CCS RIF with a lower retention standing. employees affected by a RIF action, Assessment Category for the most recent Preference eligibles with a compensable other than a reassignment, maintain CCS appraisal period. service connected disability of 30 their right to appeal to the Merit (3) Credit from Other Rating Systems. percent or more may displace an Systems Protection Board if they feel the Employees who have been rated additional two GS grades or intervals reason for the RIF is not valid or if they under different patterns of summary (total of five grades) below the highest think the process or procedures were rating levels will receive RIF appraisal equivalent grade of their current pay not properly applied. credit as follows: band provided they have previously 6. Separation Incentives —If there are any ratings to be credited held the position and the position is for the RIF given under a rating occupied by an employee in the same ONR will have delegated authority to system which includes one or more subgroup with a later RIF service approve separation incentives and will levels above fully successful (Level 3), computation date. use the current calculation methodology employees will receive credit as b. Retention Standing. of a lump sum payment equal to an follows: 12 years for Level 3, 16 years Retention is based on tenure, employee’s severance pay calculation or for Level 4, or 20 years for Level 5; or veterans’ preference, length of service, $25,000, whichever is less. —If an employee comes from a system and CCS process results. Competing 7. Severance Pay with no levels above Fully Successful employees are listed on a retention (Level 3), they will receive credit register in the following order: Tenure I Employees will be covered by the based on the demonstration project’s (career employees), Tenure II (career- severance pay rules in 5 CFR part 550, modal CCS RIF assessment category. conditional employees), and Tenure III subpart G, except that ONR will (4). RIF Cutoff Date. (contingent employees). Each tenure establish rules for determining a To provide adequate time to properly group has three subgroups (30% or ‘‘reasonable offer’’ according to the determine employee retention standing, higher compensable veterans, other provisions of 5 CFR 536.104. the cutoff date for use of new CCS veterans, and non-veterans) and 8. Outplacement Assistance process results is set at 30 days prior to employees appear on the retention the date of issuance of RIF notices. register in that order. Within each All outplacement assistance currently available would be continued under the 3. Displacement Rights subgroup, employees are in order of years of service adjusted to include CCS demonstration project. a. Displacement Process. process results. VI. Demonstration Project Transition Once the position to be abolished has c. Vacant Positions. been identified, the incumbent of that Assignment may be made to any A. Initial Conversion or Movement to position may displace another employee available vacant position including the Demonstration Project within the incumbent’s current career those with promotion potential in the track and pay band when the incumbent 1. Placement Into Career Tracks and Pay competitive area. Bands has a higher retention standing and is d. Ineligible for Displacement Rights. fully qualified for the position occupied Employees who have been notified in Conversion or movement of GS by an employee with a lower standing. writing that their performance is employees into the demonstration If there are no displacement rights considered to be unacceptable are project will be into the career track and within the incumbent’s current career ineligible for displacement rights. pay band which corresponds to the track and pay band, the incumbent may e. Change to Lower Level Due to an employee’s current GS grade and basic exercise his or her displacement rights Adverse or Performance-based Action. pay. If conversion into the to any position previously held in the An employee who has received a demonstration project is accompanied next lower pay band, regardless of written decision to change him or her to by a simultaneous change in the career track, when the position is held a lower level due to an adverse or geographic location of the employee’s

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duty station, the employee’s overall GS system. Employees will not be eligible with a full locality adjustment and WGI pay entitlements (including locality for this basic pay increase if their buy-in is computed as follows: rate) in the new area will be determined current rating of record is unacceptable a. Basic adjusted pay divided by before converting the employee’s pay to at the time of conversion. There will be locality pay factor = new basic rate of the demonstration project pay system. no prorated payment for employees who pay. Employees will be assured of placement are at step 10 or receiving a retained rate b. New basic rate of pay multiplied by within the new system without loss in at the time of conversion into the the full locality adjustment for current total pay. Once under the demonstration demonstration project. area = full locality adjustment amount project, employee progression through for special rate employees. the career tracks and pay bands up to 4. Career Promotion Eligibility c. New basic rate of pay + WGI buy- × their target pay band is dependent upon ONR proposes to adopt MRMC’s in amount locality pay factor = contribution score, not upon previous provisions for compensating employees demonstration special rate for methods (e.g., WGI’s, QSI’s, or career who would have become eligible for conversion. promotions as previously defined). career promotions during the first 12 6. Conversion of Employees on ONR proposes the addition of months of the demonstration project but Temporary Promotions language to clarify procedures for non- for conversion to the demonstration Employees who are on temporary competitive placements into the project pay bands. Employees who promotions at the time of conversion demonstration project. Specifically, qualify under this provision will receive will be returned to their grade and step employees who enter the demonstration pay increases for noncompetitive of record prior to conversion. These project after initial implementation by promotion equivalents when the grade employees will be converted to a pay lateral transfer, reassignment, or level of the promotion is encompassed band following the procedures realignment will be subject to the same within the same pay band, the described in Section IV.A.1. After pay conversion rules. employee’s performance warrants the conversion, the temporary promotion promotion, and the promotion would 2. Conversion of Retained Grade and may be reinstated for the remainder of have otherwise occurred during that Pay Employees the original 120-day timeframe. If the period. Employees who receive an in- ONR’s workforce will be grouped into grade of the temporary position is level promotion at the time of career tracks and associated pay levels associated with a higher pay band, the conversion will not receive a WGI Buy- with designated pay ranges rather than employee will be temporarily placed in In equivalent as defined above. the traditional grade and step. the appropriate higher band while on Therefore, grade and pay retention will 5. Conversion of Special Salary Rate the temporary promotion, following the be eliminated. ONR will grant Employees procedures described in Section ‘‘maintained pay’’ (as defined in section II.A.5.b.i. After the temporary III.G.2, ‘‘Maintained Pay’’), which is Employees who are in positions promotion has ended, the employee will related to the current meaning of covered by a special salary rate prior to be returned to the salary and pay band ‘‘retained pay’’ but does not provide for entering the demonstration project will established upon conversion, following indefinite retention of pay except in no longer be considered special salary the procedures described in Section certain situations. Employees’ currently rate employees under the demonstration II.A.5.b.iv. on grade or pay retention will be project. These employees will, therefore, immediately placed on maintained pay be eligible for full locality pay. The 7. Non-Competitive Movement Into the at their current rate of basic pay if this adjusted salaries of these employees Demonstration Project rate exceeds the maximum rate for their will not change. Rather, the employees Employees who enter the pay band and ‘‘grandfathered’’ in the will receive a new basic rate of pay demonstration project after initial appropriate pay band. Employees on computed by dividing their basic implementation by lateral transfer, grade retention will be placed in the pay adjusted pay (higher of special salary reassignment, or realignment will be band encompassing the grade of their rate or locality rate) by the locality pay subject to the same pay conversion rules current position. Employees will receive factor for their area. A full locality and will, therefore, be eligible for full half of the across-the-board GS adjustment will then be added to the locality pay. Specifically, adjustments to percentage increase in basic pay and the new basic pay rate. Adverse action will the employee’s basic pay for a step full locality pay increase until their not apply to the conversion process as increase or a non-competitive career basic pay is within the appropriate basic there will be no change in total salary. ladder promotion will be computed as pay range for their current position However, if an employee’s new basic a prorated share of the current value of without time limitation. pay rate after conversion to the the step or promotion increase based demonstration project pay schedule upon the number of full weeks an 3. WGI Buy-In exceeds the maximum basic pay employee has completed toward the The participation of all covered ONR authorized for the pay band, the next higher step or grade at the time the employees in the demonstration project employee will be granted maintained employee moves into the project. is mandatory. However, acceptance of pay under paragraph III.G.2 until the the system by ONR employees is employee’s salary is within the range of B. CCS Start-Up essential to the success of the the pay band. For example, an ONR expects to place employees on demonstration project. Therefore, on the Electronics Engineer, GS–855–9, step 5, CCS elements, descriptors, date that employees are converted to the is paid $59,568 per annum in discriminators, and standards around project pay plans, they will be given a accordance with special GS salary rates October 2010 with conversion to permanent increase in pay equal to the as of January 2010 per Table Number: demonstration project pay plans before earned (time spent in step) portion of 0422. The employee is located in the the end of April 2011. The CCS process their next WGI based on the value of the locality area of Washington-Baltimore, will be used to appraise ONR employees WGI at the time of conversion so that DC-MD-VA-WV. Under the at the end of the 2010–2011 cycle which they will not feel they are losing a pay demonstration project, the computation would occur on September 30, 2011. entitlement accrued under the GS of the engineer’s new basic rate of pay ONR expects the first CCS payout to

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occur at the beginning of the first full requirements, scarcity of qualified a. Identify the highest GS grade pay period in January 2012. candidates, programmatic urgency, and within the current pay band that education and experience of the new accommodates the employee’s adjusted C. Training candidate. rate of basic pay (including any locality An extensive training program is 3. Employees placed through the DON payment). planned for everyone in the RPL, the DoD PPP, or the Federal b. If the employee’s adjusted rate of demonstration project including the Interagency Career Transition basic pay equals or exceeds the supervisors, managers, and Assistance Plan who are eligible for applicable step 4 rate of the identified administrative staff. Training will be maintained pay will receive one half of highest GS grade, the employee is tailored, as discussed below, to fit the the across-the-board GS percentage converted to that grade. requirements of every employee increase in basic pay and the full c. If the employee’s adjusted rate of included in the demonstration project locality pay increase until the basic pay is lower than the applicable and will address employee concerns as employee’s basic pay is within the basic step 4 of the highest grade, the well as the benefits to employees. In pay range of the career track and pay employee is converted to the next lower addition, leadership training will be band to which assigned. Employees are grade. provided, as needed, to managers and eligible for maintained pay as long as d. If under the above-described ‘‘step supervisors as the new system places there is no break in service and if the 4’’ rule, the employee’s adjusted project more responsibility and decision employee’s rate of pay exceeds the rate exceeds the maximum rate of the making authority on them. ONR training maximum rate of his or her pay band. grade assigned but fits in the rate range personnel will provide local E. Conversion or Movement From for the next higher applicable grade (i.e., coordination and facilities, Demonstration Project between step 1 and step 4), then the supplemented by contractor support as employee shall be converted to the next needed. Training will be provided at the In the event the demonstration project higher applicable grade. appropriate stage of the implementation is terminated or employees leave the e. For two-grade interval occupations, process. demonstration project through conversion should not be made to an promotion, change to lower grade, intervening (even) grade level below 1. Types of Training reassignment or transfer, conversion GS–11. Training packages will be developed back to the GS system may be necessary. f. Employees in Level IV of the to encompass all aspects of the project The converted GS grade and GS rate of Administrative Specialist and and validated prior to training the pay must be determined before Professional Career Track will convert workforce. Specifically, training movement or conversion out of the to the GS–13 level. packages will be developed for the demonstration project and any 2. Pay Setting following groups of employees: accompanying geographic movement, a. Employees. promotion, or other simultaneous Pay conversion will be done before ONR demonstration project action. An employee will not be any geographic movement or other pay- employees will be provided an overview converted at a level which is lower than related action that coincides with the of the demonstration project and the GS grade held immediately prior to employee’s movement or conversion out employee processes and entering the Demonstration project; of the demonstration project. The responsibilities. unless, since that time, the employee employee’s pay within the converted GS b. Supervisors and Managers. has undergone a reduction in pay band. grade is set by converting the Supervisors and managers under the The converted GS grade and rate will employee’s demonstration project rate demonstration project will be provided become the employee’s actual GS grade of pay to a GS rate of pay as follows: training in supervisory and managerial and rate after leaving the demonstration a. The employee’s demonstration processes and responsibilities under the project and will be used to determine project adjusted rate of pay (including demonstration project. the pay action and GS pay locality) is converted to a rate on the c. Support Personnel. administration rules for employees who highest applicable adjusted rate range Administrative support personnel, leave the project to accept a position in for the converted GS grade. For HRO personnel, financial management the traditional Civil Service system. The example, if the highest applicable GS personnel, and Management following procedures will be used to rate range for the employee is a special Information Systems Staff will be convert the employee’s demonstration salary rate range, the applicable special provided training on administrative project pay band to a GS equivalent rate salary table is used to convert the processes and responsibilities under the grade and the employee’s demonstration employee’s pay. demonstration project. project rate of pay to the GS equivalent b. When converting an employee’s rate of pay. pay, if the rate of pay falls between two D. New Hires Into the Demonstration steps of the conversion grade, the rate Project 1. Grade Determination must be set at the higher step. The following steps will be followed Employees will be converted to a GS c. Employees whose basic pay to place employees (new hires) entering grade based on a comparison of the exceeds the maximum basic pay of the the system: employee’s current adjusted rate of highest GS grade for their pay band will 1. The career track and pay band will basic pay to the highest GS applicable be converted to the highest grade and be determined based upon the rate range considering only those grade step in their pay band. Upon employee’s education and experience in levels that are included in the conversion, the maximum base pay will relation to the duties and employee’s current pay band. The be at the step 10 level normally with no responsibilities of the position in which highest GS applicable rate range provision for retained pay. he or she is being placed, consistent includes GS basic rates, locality rates, with OPM qualification standards. and special salary rates. Once a grade 3. Employees in Positions Classified 2. Basic pay will be set based upon range is determined, the following Above GS–15 available labor market considerations procedures will be used to determine Conversion and pay retention relative to special qualifications the GS grade: instructions for employees and

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positions in Pay Band V of the S&E VIII. Demonstration Project Evaluation Organizational performance measures Professional Career Track will be Plan established by the organization will be contingent on guidance provided by Consistent with DoD guidance, ONR used to evaluate the impact of a new HR DoD. proposes following the same evaluation system on the ultimate outcomes. The evaluation of the new HR system for any 4. Determining Date of Last Equivalent plan as is being used by NRL and the given organization will take into Increase other STRL Demonstration Projects. Accordingly, standard language for account the influence of three factors on The last equivalent increase will be Evaluation Plan, Evaluation, and organizational performance: Context, the date the employee received a CCS Method of Data Collection (sections degree of implementation, and support pay increase, was eligible to receive a V.B., V.C, and V.D., respectively) of implementation. The context factor CCS pay increase, or received a provided by DoD is used in this refers to the impact which intervening promotion, whichever occurred last. document to describe ONR’s plans and variables (i.e., downsizing, changes in mission, or the economy) can have on C. Personnel Administration procedures for the demonstration project evaluation. The use of parallel the effectiveness of the program. The All personnel laws, regulations, and evaluation methodologies will facilitate degree of implementation considers the guidelines not waived by this plan will comparisons across the demonstration extent to which the: (1) HR changes are given a fair trial remain in effect. Basic employee rights projects to derive higher-order period; will be safeguarded and Merit System conclusions about the benefits, Principles will be maintained. Servicing (2) changes are implemented; and challenges, and overall effectiveness of (3) changes conform to the HR Human Resources Service Centers will these programs. continue to process personnel-related interventions as planned. actions and provide consultative and A. Overview The support of implementation factor other appropriate services. accounts for the impact that factors such Chapter 47 of title 5 U.S.C. requires as training, internal regulations and D. Automation that an evaluation be performed to automated support systems have on the measure the effectiveness of the support available for program ONR will continue to use the Defense proposed laboratory demonstration Civilian Personnel Data System implementation. The support for project, and its impact on improving program implementation factor can also (DCPDS) for the processing of public management. A comprehensive personnel-related data. Payroll servicing be affected by the personal evaluation plan for the entire laboratory characteristics (e.g., attitudes) of will continue from the respective demonstration program, originally payroll offices. individuals who are implementing the covering 24 DoD laboratories, was program. An automated tool will be used to developed by a joint OPM/DoD The degree to which the project is support computation of performance Evaluation Committee in 1995. This implemented and operated will be related pay increases and awards and plan was submitted to the Office of tracked to ensure that the evaluation other personnel processes and systems Defense Research & Engineering and results reflect the project as it was associated with this project. was subsequently approved. The main intended. Data will be collected to E. Experimentation and Revision purpose of the evaluation is to measure changes in both intermediate determine whether the waivers granted and ultimate outcomes, as well as any Many aspects of a demonstration result in a more effective personnel unintended outcomes, which may project are experimental. Modifications system and improvements in ultimate happen as a result of any organizational may be made from time to time as outcomes (i.e., laboratory effectiveness, change. In addition, the evaluation will experience is gained, results are mission accomplishment, and customer track the impact of the project and its analyzed, and conclusions are reached satisfaction). interventions on veterans and other on how the new system is working. B. Evaluation Model protected groups, the Merit System DoDI 1400.37, July 28, 2009, provides Principles, and the Prohibited Personnel instructions for adopting other STRL Appendix G shows an intervention Practices. Additional measures may be flexibilities, making minor changes to model for the evaluation of the added to the model in the event that an existing demonstration project, and demonstration project. The model is changes or modifications are made to requesting new initiatives. designed to evaluate two levels of the demonstration plan. organizational performance: VII. Demonstration Project Duration The intervention model at Appendix Intermediate and ultimate outcomes. D will be used to measure the Section 342 of the National Defense The intermediate outcomes are defined effectiveness of the personnel system Authorization Act for Fiscal Year 1995 as the results from specific personnel interventions implemented. The (Pub. L. 103–337) does not require a system changes and the associated intervention model specifies each mandatory expiration date for this waivers of law and regulation expected personnel system change or demonstration project. The project to improve human resource (HR) ‘‘intervention’’ that will be measured evaluation plan addresses how each management (i.e., cost, quality, and shows: intervention will be comprehensively timeliness). The ultimate outcomes are (1) The expected effects of the evaluated. Major changes and determined through improved intervention, modifications to the interventions may organizational performance, mission (2) the corresponding measures, and be made using the procedures in DoDI accomplishment, and customer (3) the data sources for obtaining the 1400.37, if formal evaluation data satisfaction. Although it is not possible measures. warrant a change. At the 5-year point, to establish a direct causal link between Although the model makes the entire demonstration will be changes in the HR management system predictions about the outcomes of examined for either: (a) Permanent and organizational effectiveness, it is specific interventions, causal implementation, (b) modification and hypothesized that the new HR system attributions about the full impact of another test period, or (c) termination of will contribute to improved specific interventions will not always be the project. organizational effectiveness. possible for several reasons. For

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example, many of the initiatives are a more complete picture as to how the project outcomes after five years. The expected to interact with each other and interventions are working. The final report will provide information on contribute to the same outcomes. In information gathered from one source how well the HR system changes addition, the impact of changes in the will serve to validate information achieved the desired goals, which HR system may be mitigated by context obtained through another source. In so interventions were most effective, and variables (e.g., the job market, doing, the confidence of overall findings whether the results can be generalized legislation, and internal support will be strengthened as the different to other Federal installations. systems) or support factors (e.g., training collection methods substantiate each IX. Demonstration Project Costs and automation support systems). other. Both quantitative and qualitative data C. Evaluation A. Cost Discipline will be used when evaluating outcomes. A modified quasi-experimental design The following data will be collected: An objective of the demonstration will be used for the evaluation of the (1) Workforce data; project is to ensure in-house cost STRL Personnel Demonstration (2) Personnel office data; discipline. A baseline will be Program. Because most of the eligible (3) Employee attitude surveys; established at the start of the project and laboratories are participating in the (4) Focus group data; labor expenditures will be tracked program, a title 5 U.S.C. comparison (5) Local site historian logs and yearly. Implementation costs (including group will be compiled from the implementation information; project development, automation costs, Civilian Personnel Data File (CPDF). (6) Customer satisfaction surveys; and WGI buy-in costs, and evaluation costs) This comparison group will consist of (7) Core measures of organizational are considered one-time costs and will workforce data from Government-wide performance. not be included in the cost discipline. research organizations in civilian The evaluation effort will consist of The CNR or designee will track Federal agencies with missions and job two phases, formative and summative personnel cost changes and recommend series matching those in the DoD evaluation, covering at least five years to adjustments if required to achieve the laboratories. This comparison group permit inter- and intra-organizational objective of cost discipline. will be used primarily in the analysis of estimates of effectiveness. The formative pay banding costs and turnover rates. evaluation phase will include baseline B. Implementation Costs data collection and analysis, D. Method of Data Collection implementation evaluation, and interim Current cost estimates associated with Data from several sources will be used assessments. The formal reports and implementing the ONR demonstration in the evaluation. Information from interim assessments will provide project are shown in Figure 11. These existing management information information on the accuracy of project include automation of systems such as systems and from personnel office operation, and current information on the CCSDS, training, and project records will be supplemented with impact of the project on veterans and evaluation. The automation and training perceptual survey data from employees protected groups, Merit System costs are startup costs. Transition costs to assess the effectiveness and Principles, and Prohibited Personnel are one-time costs. Costs for project perception of the project. The multiple Practices. The summative evaluation evaluation will be ongoing for at least sources of data collection will provide will focus on an overall assessment of five years.

FIGURE 11—PROJECTED IMPLEMENTATION COSTS [Then year dollars]

FY 10 FY 11 FY 12 FY 13 FY 14

Training ...... $200K $200K $56K $25K $25K Project Evaluation ...... 100K 50K 100K 50K 100K Automation ...... 97K 25K 25K 25K 25K Transition ...... 0 500K 0 0 0

. Totals ...... 397K 775K 181K 100K 150K

X. Automation Support responsibility for human resources B. Defense Civilian Personnel Data management. System (DCPDS) A. General Automation to support the Since DCPDS is a legacy system, One of the major goals of the demonstration project is required at two efforts have been made to minimize demonstration project is to streamline distinct levels. At the DON and DoD changes to the system; and, therefore, the personnel processes to increase cost level, automation support (in the form the resources required to make the effectiveness. Automation must play an of changes to the DCPDS) is required to necessary changes. The detailed integral role in achieving that goal. facilitate processing and reporting of specifications for required changes to Without the necessary automation to demonstration project personnel DCPDS will be provided in the System support the interventions proposed for actions. At the ONR level, automation Change Request (SCR), Form 804. the demonstration project, optimal cost support (in the form of local processing C. Core Document (COREDOC) benefit cannot be realized. In addition, applications) is required to facilitate adequate information to support management processes and decision- The COREDOC application is a DoD decision-making must be available to making. system which may require modification managers if line management is to to accommodate the interventions in assume greater authority and this demonstration project. Specifically,

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there is an RD that replaces the position modified to accommodate these process used as an internal control to ensure description in the basic application; changes. that the permanent and nonpermanent career tracks and pay bands replace GS money allotted to each pay pool is not E. Contribution-Based Compensation grades; and a CCS Assessment Summary System Data System exceeded. It will further allow pay pool that replaces performance elements. managers to visualize the effects of This automated system is required as D. RIF Support System (RIFSS) giving large basic pay increases or an internal control and as a mechanism awards to high contributors, and the The RIFSS is an automated tool used to equate contribution scores to effects of withholding either the general by human resources specialists to appropriate rates of basic pay. This or merit increase or both of those who support RIF processing. Under the system will allow pay pool managers to are low contributors, or in the demonstration project, RIF rules are develop a spreadsheet that will assist overcompensated range. modified to increase the credit for them in determining an appropriate contributions and limit the rounds of merit increase or contribution award or Appendix A: Summary of competition. The AutoRIF application, both based on the overall contribution Demonstration Project Features developed by DoD, may need to be score for each individual. It will also be Adopted by ONR

ONR demonstration project features Originating lab Originating FR Notice (ONR FR Section) Modification demo reference

Flexibilities

Hiring Authority (Section III.A.–C.) ...... • No substantive changes made ...... NRL ...... Pages 33981–33982, Section III.A–C. Noncitizen Hiring (Section III.D.) ...... • No substantive changes made ...... NRL ...... Page 33982, Section III.D. Expanded Detail Authority (Section • No substantive changes made ...... NRL ...... Page 33982, Section III.E.). III.E. Extended Probationary Period for New • No substantive changes made ...... NRL ...... Page 33982, Section Employees (Section III.F.). III.F. Definitions (Section III.G.) ...... • No substantive changes made ...... NRL ...... Pages 33982–33983, Section III.G. Pay Setting Determinations Outside • Added procedures for Restoration to Duty for deployed NRL ...... Pages 33983–33984, CCS (Section III.H.). individuals. Section III.H. Priority Placement Program (Section • No substantive changes made ...... NRL ...... Page 33984, Section III.I.). III.I. Expanded Temporary Promotion (Sec- • No substantive changes made ...... NRL ...... Page 33984, Section tion III.J.). III.J. Voluntary Emeritus Program (Section • Expanded eligibility for the Voluntary Emeritus Program AMRDEC ...... Page 34889, Section III.K.). to all retired and separated employees, not just engi- III.D.2. neers and scientists. Position Classification (Section IV.A.) .... Adopting three of NRL’s four career tracks/pay plans ...... NRL ...... Pages 33984–33989, ONR chooses not to adopt the Science & Engineering Section IV.A. Technical career track because the types of positions that fall into this career track do not exist at ONR. Integrated Pay Schedule (Section IV.B.) The ARSAE designations will not be adopted but instead NRL ...... Pages 33989–33991, will be rolled into the new above GS–15 levels initiative Section IV.B. to be established by DoD. Position management methods established by the new DoD above GS–15 level initiative, rather than the DoD 40-position limit. Contribution-based Compensation Sys- • Revised critical elements to ensure applicability to ONR NRL ...... Pages 33991–34001, tem (CCS) (Section IV.C.). personnel. Section IV.C. • Described a more general approach for annual budg- eting for merit increases, to provide greater flexibility in establishing and amending internal procedures. • Clarified the use of merit increase funds during each payout cycle; funds may not be carried over to the next payout cycle. Performance-based Reduction-in-Pay or • No substantive changes made ...... NRL ...... Page 34001, Section Removal Actions (Section V.A.). V.A Reduction-in-Force (RIF) Procedures • Amended the CCS RIF assessment categories ...... NRL ...... Page 34001, Sec- (Section V.B.). • Added a definition for Competition in RIF so employees tion.V.B. released from retention level will have the right to be assigned to another position within the same career track/level, or retreat to a previously held position.

Administrative Procedures

Initial Conversion or Movement to the • Added procedures for converting employees who are on NRL ...... Page 34003, Section Demonstration Project (Section VI.A.). Temporary Promotions. VI.A. • Clarified procedures for non-competitive movement into the demonstration project (e.g., lateral transfer, reas- signment, or realignment).

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ONR demonstration project features Originating lab Originating FR Notice (ONR FR Section) Modification demo reference

CCS Startup (Section VI.B.) ...... • No substantive changes made ...... NRL ...... Page 34003, Section VI.B. Training (Section VI.C.) ...... • No substantive changes made ...... NRL ...... Page 34004, Section VI.C. New Hires into the Demonstration • No substantive changes made ...... NRL ...... Page 34004, Section Project (Section VI.D.). VI.D. Conversion or Movement from the Dem- • Clarified procedures for setting pay for employees NRL ...... Pages 34004–34005, onstration Project (Section VII.E.). whose basic pay exceeds the maximum basic pay of Section VI.E. the highest GS grade for their career level. Demonstration Project Duration (Section • No substantive changes made ...... NRL ...... Page 34005, Section VII.). VII. Demonstration Project Evaluation Plan • Used standard STRL evaluation language provided by NRL ...... Pages 34005–34007, (Section VIII.). DoD; which is virtually identical to NRL’s original section. Section VIII. Cost Containment and Controls (Section • Described a more general approach to cost discipline, NRL ...... Pages 34007–34008, IX.). to enable ONR to develop internal procedures and Section IX. make modifications over time, as needed. Automation Support (Section X.) ...... • No substantive changes made ...... NRL ...... Page 34008, Section X.

Appendix B: Required Waivers to Laws implementation of the demonstration project. actions contemplated under this and Regulations In due course, additional laws and demonstration project. Nothing in this plan regulations may be identified for waiver is intended to preclude the demonstration Public Law 106–398 gave the DoD the request. project from adopting or incorporating any authority to experiment with several law or regulation enacted, adopted, or personnel management innovations. In The following waivers and adaptations of certain title 5 U.S.C. provisions are required amended after the effective date of this addition to the authorities granted by the demonstration project. law, the following are waivers of law and only to the extent that these statutory regulation that will be necessary for provisions limit or are inconsistent with the Waivers of Law and Regulation

Title V, United States Code Title 5, Code of Federal Regulations

Chapter 31, section 3111: Acceptance of Volunteer Service. Waived to Part 300, subpart F, sections 300.601 to 300.605—Time-in-grade Re- allow for a Voluntary Emeritus Program in addition to student volun- strictions. Waive in entirety teers. Chapter 31, section 3132: The Senior Executive Service: Definitions Part 300, sections 300.601 through 605: Time-in-grade restrictions. and Exclusions. Waived as necessary to allow for the Pay Band VI Waived to eliminate time-in-grade restrictions in the demonstration of the S&E Occupational Family. project. Part 308, sections 308.101 through 308.103: Volunteer service. Waived to allow for a Voluntary Emeritus Program in addition to student vol- unteers. Part 315, section 315.801(a), 315.801(b)(1), (c), and (e), and 315.802(a) and (b)(1): Probationary period and Length of proba- tionary period. Waived to the extent necessary to allow for up to a three-year probationary period and to permit termination during the extended probationary period without using adverse action proce- dures for those employees serving a probationary period under an initial appointment except for those with veterans’ preference. Part 315, section 315.901: Statutory requirement. Waived to the extent necessary to replace ‘‘grade’’ with ‘‘pay band.’’ Chapter 33, subchapter 1, section 3318(a)–Competitive Service; Selec- Part 332, subpart D, section 332.404—Order of Section of Certificates. tion from Certificate. Waive. Waive in entirety. Chapter 33, section 3324: Appointments to Positions Classified Above Part 335, subpart A, section 335.103(c)(1)(i), (ii)—Agency Promotion GS–15. Waived the requirement for OPM approval of appointments Program. to positions classified above GS–15. Waive to allow temporary promotions and details to a higher level posi- tion without competition. Part 335, subpart A, section 335.104—Eligibility for Career Ladder Pro- motion. Waive in entirety. Part 337, subpart A, section 337.101(a)—Rating Applicants. Waive when 15 or fewer qualified candidates. Chapter 33, subchapter III, section 3341(b) Details—Within Executive or Military Departments. Waive in entirety. Part 351, subpart G, section 351.701—Assignment Involving Displace- ment. (a) Waive to allow minimally successful or equivalent to be defined as an employee whose current CCS RIF Assessment Category score is 12 or better and does not have a current written notification of unac- ceptable performance.

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Title V, United States Code Title 5, Code of Federal Regulations

(b) and (c) Assignment rights (bump and retreat). Waive to the extent that the distinction between bump and retreat is eliminated and to allow displacement to be limited to the employee’s current career track and pay band or, if there are no displacement rights in the em- ployee’s current pay band, to any position previously held in the next lower pay band regardless of career track. Preference eligibles may displace up to the equivalent of 3 grades or intervals below the high- est equivalent grade of their current pay band in the same or dif- ferent career track regardless of whether they previously held the po- sition provided they are fully qualified and the position is occupied by an employee with a lower retention standing. Preference eligibles with a compensable service connected disability of 30 percent or more may displace an additional 2 GS grades or intervals (total of 5 grades) below the highest equivalent grade of their current pay band provided they previously held the position and the position is occu- pied by an employee in the same subgroup with a later RIF service computation date. (d) Limitation. Waive. (e)(1) Waive. Part 351, subpart B, section 351.403(a) Competitive Level. Waive to allow establishing competitive levels con- sisting of all ONR demo positions in a competitive area, which are in the same pay band level and career track, and which are similar enough in duties, qualifications, and requirements, including any se- lective placement factors, pay schedules, and working conditions so that the incumbent of one position may be reassigned to any other position in the level without undue interruption. Part 351.402(b), subpart D: Competitive area. Waived to the extent necessary to allow for separate competitive areas for demonstration project and non-demonstration project employees. Part 351, subpart E, section 351.504—Performance Credit for RIF. Waive in entirety. Chapter 43, section 4302: Waived to the extent necessary to substitute Part 430, subpart B, section 430.207(b)—Waive to the extent this sec- ‘‘pay band’’ for ‘‘grade’’. tion requires one or more progress reviews during each appraisal period. Chapter 43, subchapter I, section 4303—Actions Based on Unaccept- Part 430, subpart B, section 430.210—OPM Responsibilities. Waive in able Performance. Waive to allow coverage of ‘‘reduction in pay level entirety. Part 432, section 432.101 to 432.107—Performance Reduc- based on unacceptable performance.’’ Waive to exclude from cov- tion in Grade and Removal Actions. Waive to allow coverage of ‘‘re- erage (procedural and appeal rights) reductions in pay band with no duction in pay level based on unacceptable performance.’’ Waive to reduction in pay, when such actions result from regression of pay exclude from coverage (procedural and appeal rights) reduction in into a lower pay band through reductions and denials of general in- pay band with no reduction in pay, when such action results from re- crease (‘‘slippage’’). This exclusion will not apply to employees with gression of pay into a lower pay band through reductions and deni- veterans’ preference. als of general increase (‘‘slippage’’). This exclusion will not apply to employees with veterans’ preference. Chapter 43, subpart I, section 4303(f)(3)—Waive to allow exclusion of employees in the excepted service who have not completed a trial period, except those with veterans’ preference. Chapter 43, subchapter I, section 4304(b)(1) and (3)—Responsibilities of OPM. Waive in entirety. Chapter 45, subchapter I, section 4502(a) and (b)—Waive to permit Part 451, subpart A, section 451.103(c)(2)—Waive with respect to con- ONR to approve awards up to $25,000 for individual employees. tribution awards under the ONR CCS. Part 451, subpart A, sections 451.106(b) and 451.107(b)—Waive to permit ONR to approve awards up to $25,000 for individual employ- ees. Chapter 51, sections 5101 to 5113—Classification. Waive in entirety Part 511—Classification Under the GS. Waive in entirety with an ex- except section 5104 to the extent needed to permit classification of ception for appeal rights and time constraints under subpart F, sec- pay bands and CCS descriptors into logically defined level tions 511.603, 511.604, and 511.605. groupings.. Chapter 53, subpart I, section 5301—Pay Policy. Waive in entirety ...... Chapter 53, subchapter I, section 5302(8) and (9)—Pay Definition and section 5304—Locality-Based Comparability Payments. Waive to the extent necessary to allow demonstration project employees to be treated as GS employees and basic rates of pay under the dem- onstration project to be treated as scheduled rates of basic pay. Em- ployees in Pay Band V for the S&E Professional Track to be treated as ST employees for the purposes of these provisions. Chapter 53, subchapter I, section 5303—Annual Adjustments to Pay Schedules. Waive in entirety. Chapter 53, subpart I, section 5303—Special Pay Authority. Waive in entirety.. Chapter 53, subchapter III, sections 5331 to 5336—GS Pay Rates. Part 520, subpart C—Specialty Salary Rate Schedules. Waive in en- Waive in entirety. tirety. Part 531, subpart B—Determining Rate of Basic Pay. Waive in entirety.

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Title V, United States Code Title 5, Code of Federal Regulations

Part 531, subpart D—Within Grade Increases. Waive in entirety. Part 531, subpart E—Quality Step Increases. Waive in entirety. Part 531, subpart F—Locality-Based Comparability Payments. Waive to the extent necessary to allow the demonstration project employees to be treated as GS employees, employees in Pay Band V of the S&E Professional Career to be treated as ST employees, and basic rates of pay under the demonstration project to be treated as sched- uled annual rates of pay. Chapter 53, subchapter VI, sections 5361 to 5366—Grade and Pay Part 536—Grade and Pay Retention. Waive in entirety. Retention. Waive to entirety. Chapter 55, section 5545 (d)—Hazardous Duty Differential. Waive to Part 550, subpart G—Severance Pay. the extent necessary to allow demonstration project employees to be Waive to the extent necessary to allow ONR to define reasonable offer. treated as GS employees. This waiver does not apply to employees Part 550, subpart I—Pay for Duty Involving Physical Hardship or Haz- in Pay Band V of the S&E Professional Career Track. ard. Waive to the extent necessary to allow demonstration project employees to be treated as GS employees. This waiver does not apply to employees in Pay Band V of the S&E Professional Career Track. Chapter 57, subchapter IV, section 5753 to 5755—Recruitment and Part 575, subparts A, B, C, and D—Recruitment and Relocation Bo- Relocation Bonuses, Retention Allowances, and Supervisory Dif- nuses, Retention Allowances, and Supervisory Differential, Waive to ferential. Waive to the extent necessary to allow (1) employees and the extent necessary to allow (1) employees and positions under the positions under the demonstration project to be treated as employ- demonstration project to be treated as employees and positions ees and positions under the GS and (2) employees in Level V of the under the GS and (2) employees in Level V of the S&E Professional S&E Professional career track to be treated as ST employees for career track to be treated as ST employees for these purposes. these purposes. Chapter 59, subchapter III, section 5924—Cost-of-living Allowances. Part 591, subpart B—Cost-of-living Allowances and Post Differential— Waive to the extent necessary to provide that COLA’s paid to em- non-foreign areas. Waive to the extent necessary to allow dem- ployees under the demonstration project are paid in accordance with onstration project employees to be treated as GS employees and regulations prescribed by the President (as delegated to OPM). employees in Pay Band V of the S&E Professional Career Track to be treated as ST employees. Chapter 75, sections 7501(1) and 7511 (a)(1)(A)(ii)—Removal Suspen- Part 752, sections 752.101, 752.201, 752.301 and 752.401: Principal sion for More Than 14 Days, Reduction in Grade or Pay, or Fur- statutory requirements and Coverage. Waived to the extent nec- lough. Waived to the extent necessary to allow for up to a three-year essary to allow for up to a three-year probationary period and to per- probationary period and to permit termination during the extended mit termination during the extended probationary period without probationary period without using adverse action procedures for using adverse action procedures for those employees serving a pro- those employees serving a probationary period under an initial ap- bationary period under an initial appointment except for those with pointment except for those with veterans’ preference veterans’ preference. 7511(a)(I)(C)(ii)—Waive. Chapter 75, subchapter II, section 7512—Adverse Actions. Waive to Part 752, subpart A—Adverse Actions. Waive to exclude from cov- replace ‘‘grade’’ with ‘‘pay band’’, provide that adverse action provi- erage (procedural and appeal rights) reductions in pay band with no sions do not apply to conversion from General Schedule special reduction in pay, when such actions result from regression of pay rates to demonstration project pay, as long as total pay is not re- into a lower pay band through reductions and denials of general in- duced; and exclude from coverage (procedural and appeal rights) re- crease (‘‘slippage’’). This exclusion will not apply to employees with ductions in pay band with no reduction in pay, when such actions re- veterans’ preference. sult from regression of pay into a lower pay band through reductions Part 752, section 752.401(a)(3)—Adverse Actions. Waive to replace or denials of general increase (‘‘slippage’’). This exclusion will not ‘‘grade’’ with ‘‘pay band’’. apply to employees with veterans’ preference. Part 752, section 752.401(a)(4)—Adverse Actions. Waive to provide that adverse action provisions do not apply to conversion from Gen- eral Schedule special rates to demonstration project pay, as long as total pay is not reduced.

Appendix C: Definitions of Career their application in classification actions and Tracks and Pay Bands performance appraisal. ONR’s career level definitions may be modified as experience is gained through

Career Track: S&E Professional—Includes professional positions in S&E occupations such as physics, electronics engineering, chemistry, and student positions associated with these professions.

Level I ...... This includes student trainees. The education and employment must be part of a formal student employment program. Specific, clear, and detailed instructions and supervision are given to complement education. The level of education and experience completed is a major consideration in establishing the level of on-the-job training and work assign- ments. Level II ...... This is the entry or developmental stage, preparing S&E’s for the full and independent performance of their work. S&E’s at this level perform supporting work in science or engineering requiring professional training but little experience, and conduct activities with objectives and priorities identified by supervisor or team leader. Assistance is given on new or unusual projects; completed work is reviewed for technical soundness. Level III ...... This is the advanced developmental pay band of this career track. S&Es at this level conceive and define solutions to technical problems of moderate complexity; plan, analyze, interpret, and report findings of projects; and guide tech- nical and programmatic work of a program’s research efforts. Completed work and reports are reviewed to evaluate overall results.

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Level IV ...... S&E’s at this level are authorities within their professional areas or key program administrators. They direct technical ac- tivities or assist higher levels on challenging and innovative projects or technical program development with only gen- eral guidance on policy, resources and planning; develop solutions to complex problems requiring various disciplines; responsible for fulfilling program objectives. Level V ...... S&Es at this level are renowned experts in their fields. They independently define and lead most challenging technical programs consistent with general guidance and/or independently direct overall R&D program managerial and/or super- visory aspects; conceive and develop elegant solutions to very difficult problems requiring highly specialized areas of technical expertise; are recognized within DoD and other agencies for broad technical area expertise and have estab- lished professional reputation in technical community nationally and internationally. The primary requirement for Level V positions is the knowledge of and expertise in specific scientific and technology areas related to the mission of their organization. However, the ability to manage and/or supervise R&D operations or programs is also considered a necessity. They may direct the work of an organizational unit; may be held accountable for the success of one or more specific programs or projects; monitor progress toward organizational goals and periodically evaluate and make appropriate adjustments to such goals; supervise the work of employees; or otherwise exercise important policy-mak- ing, policy-determining, or other managerial functions.

Career Track: Administrative Specialist and Professional—Professional and specialist positions in areas such as the following: safety and health, personnel, finance, budget, procurement, librarianship, legal, business, facilities management and student positions associated with these professions.

Level I ...... Includes student trainees. The education and employment must be part of a formal student employment program. Spe- cific, clear, and detailed instructions and supervision are given to complement education. The level of education and experience completed is a major consideration in establishing the level of on-the-job training and work assignments. Level II ...... This is the developmental stage preparing Administrative Specialists and Professionals for the full and independent per- formance of their work. Specific, clear and detailed instruction and supervision are given upon entry; recurring assign- ments are carried out independently. Situations not covered by instructions are referred to supervisor. Finished work is reviewed to ensure accuracy. Level III ...... This is the advanced developmental career level of this career track. Employees at this level plan and carry out assign- ments independently, resolve conflicts that arise, coordinate work with others and interpret policy on own initiative. Completed work is reviewed for feasibility, compatibility with other work or effectiveness in meeting requirements or expected results. Level IV ...... At this level, Administrative Specialists and Professionals are authorities within their professional areas or key program administrators or supervisors. They conduct or direct activities in an administrative and professional area with only general guidance on policy, resources and planning; develop solutions to complex problems requiring various dis- ciplines; and are responsible for fulfilling program objectives. Level V ...... Administrative Specialists and Professionals at this level are experts within their broad administrative area or profes- sional field who serve as leaders, heads of branches or divisions, or key program administrators. They receive general guidance on policy, resources and planning that have an effect on public policies or programs; and are responsible for fulfilling program objectives. Results are authoritative and affect administrative programs or the well-being of substan- tial numbers of people.

Career Track: Administrative Support—Includes clerical, secretarial and assistant work in nonscientific and engineering occupations.

Level I ...... This includes student trainees as well as advanced entry level which requires a fundamental knowledge of a clerical or administrative field. Developmental assignments may be given which lead to duties at a higher group level. Performs repetitive tasks, specific, clear and detailed instruction and supervision; with more experience utilizes knowledge of standardized procedures and operations, assistance is given on new or unusual projects. Completed work is reviewed for technical soundness. Level II ...... This level requires knowledge of standardized rules, procedures or operations requiring considerable training. General guidance is received on overall objectives and resources. Completed assignments may be reviewed for overall sound- ness or meeting expected results. Level III ...... This is the senior level which requires expert knowledge of procedures and operations, which is gained through exten- sive training. Employees at this level receive general guidance on overall resources and objectives, and are skilled in applying knowledge of basic principles, concepts, and methodology of profession or administrative occupation and technical methods. Results are accepted as authoritative and are normally accepted without significant change.

Appendix D: Table of Occupational series may appear in two career tracks requirements or OPM-recognized Series Within Career Tracks depending on the purpose of the position. occupations. These additional series will be The breakdown of occupational series placed in the appropriate career track Definitions for ONR’s three career tracks reflects only those occupations that currently consistent with the definitions provided are provided below along with the exist in ONR. Additional series may be added below. breakdown of their respective series. Some as a result of changes in mission

S&E Professional Career Track: Includes professional positions in S&E occupations such as physics, electronics, engineering, chemistry, and student positions associated with these professions.

0180—Psychology Series. 0855—Electronics Engineering Series. 0190—General Anthropology Series. 0861—Aerospace Engineering Series. 0335—Computer Clerk & Assistant. 0871—Naval Architecture Series. 0401—General Natural Resources Management and Biological 0854—Computer Engineering Series. Sciences Series. 0403—Microbiology Series. 0893—Chemical Engineering Series. 0405—Pharmacology Series. 0896—Industrial Engineering Series. 0413—Physiology Series. 1301—General Physical Sciences Series. 0440—Genetics Series. 1310—Physics Series.

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0601—General Health Science Series. 1313—Geophysics Series. 0602—Medical Officer Series. 1320—Chemistry Series. 0801—General Engineering Series. 1321—Metallurgy Series. 0802—Engineering Technical Series. 1340—Meteorology Series. 0806—Materials Engineering Series. 1360—Oceanography Series. 0810—Civil Engineering Series. 1515—Operations Research Series. 0830—Mechanical Engineering Series. 1520—Mathematics Series. 0840—Nuclear Engineering Series. 1530—Statistics Series. 0850—Electrical Engineering Series. 1550—Computer Science Series.

Administrative Specialist and Professional Career Track: Professional and specialist positions in areas such as the following: Safety and health, finance, budget, procurement, librarianship, legal, business, facilities management, and student positions associated with these professions.

0080—Security Administration Series. 0905—General Attorney Series. 0110—Economist Series. 0950—Paralegal Specialist Series. 0201—Human Resource Management Series. 1035—Public Affairs Series. 0260—Equal Employment Opportunity Series. 1084—Visual Information Series. 0301—Miscellaneous Administration and Program Series. 1101—General Business and Industry Series. 0340—Program Management Series. 1102—Contracting Series. 0341—Administrative Officer Series. 1150—Industrial Specialist Series. 0343—Management and Program Analysis Series. 1222—Patent Attorney Series. 0391—Telecommunications Series. 1412—Technical Information Services Series. 0501—Financial Administration and Program Series. 1720—Education Specialist Series. 0505—Financial Management Series. 1801—General Inspection, Investigation, and Compliance Series. 0510—Accounting Series. 2210—Information Technology Management. 0560—Budget Analysis Series.

Administrative Support: Includes clerical, secretarial, and assistant work in nonscientific and engineering occupations.

0086—Security Clerical and Assistance Series. 0335—Computer Clerk and Assistant Series. 0203—Human Resource Assistance Series. 0503—Financial Clerical and Assistance Series. 0303—Miscellaneous Clerk and Assistant Series. 0525—Accounting Technician Series. 0305—Mail and File Series. 0561—Budget Clerical and Assistance Series. 0318—Secretary Series. 0986—Legal Assistance Series. 0326—Office Automation and Clerical Assistance Series.

Appendix E: Classification and CCS covered by the CCS process. Under the The contents of the CCS elements, Elements demonstration project, the summaries will be descriptors, discriminators, and basic generated by the CCSDS. They may be The CCS Summaries shown in this acceptable standards may similarly be changed during the project to require appendix are draft templates intended to changed during the life of the demonstration additional information, to make them easier project. provide an understanding of the information to use, or for other reasons.

OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY [Science & Engineering Professional]

Employee Name: Pay Pool Code: Appraisal Period Ending: Click here to enter text. Click here to enter text. Click here to enter text.

Title: Pay Plan/Series: Career Level: Click here to enter text. Click here to enter text. Click here to enter text.

SSN: Click here to enter text Supervisor: Click here to enter text

Most Recent OCS: Click here to enter text. Scores within NPR Equivalent to Present Present Salary: Click here to enter text. Salary: Click here to enter text.

Rating of Record Accept- Critical Elements * Weight Score Net Score able or Unacceptable

1. Scientific and Tech- Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. nical Leadership

2. Program Execution Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. and Liaison 3. Cooperation and Su- Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. pervision * If zero, then element not applicable.

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Basic Pay Increase %: Click here to enter text. (Unacceptable) SUPPLEMENTAL CRITERIA (OPTIONAL). Contribution Award $: Click here to enter Must be U if any critical element is rated U FOR EXAMPLE, SPECIFIC OBJECTIVES, text. Click here to enter text. STANDARDS, TASKINGS, AND/OR EXAMPLES: Hours Click here to enter text. Overall Contribution Score (Weighted Summary Rating A (Acceptable) or U Average): Click here to enter text. REMARKS:

Signatures and Date CCS Plan Interim Review Appraisal

Employee

Supervisor NOTE: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, Descriptors, Discriminators, and Standards applicable to his or her career track.

BILLING CODE 5001–06–P

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OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY [Administrative Specialist and Professional]

Employee Name: Pay Pool Code: Appraisal Period Ending: Click here to enter text. Click here to enter text. Click here to enter text.

Title: Pay Plan/Series: Career Level: Click here to enter text. Click here to enter text. Click here to enter text.

SSN: Click here to enter text. Supervisor: Click here to enter text.

Most Recent OCS: Click here to enter text. Scores within NPR Equivalent to Present Present Salary: Click here to enter text. Salary: Click here to enter text.

Rating of record accept- Critical elements * Weight Score Net score able or unacceptable

1. Problem Solving and Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Leadership

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Rating of record accept- Critical elements * Weight Score Net score able or unacceptable

2. Cooperation and Cus- Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. tomer Relations

3. Supervision and Re- Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. sources Management * If zero, then element not applicable.

Basic Pay Increase %: Click here to enter text. (Unacceptable) SUPLEMENTAL CRITERIA (OPTIONAL). Contribution Award $: Click here to enter Must be U if any critical element is rated U FOR EXAMPLE, SPECIFIC OBJECTIVES, text. Click here to enter text. STANDARDS, TASKINGS, AND/OR EXAMPLES: Hours: Click here to enter text. Overall Contribution Score (Weighted Summary Rating A (Acceptable) or U Average): Click here to enter text. REMARKS:

Signatures and date CCS plan Interim review Appraisal

Employee

Supervisor Note: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, Descriptors, Discriminators, and Standards applicable to his or her career track.

BILLING CODE 5001–06–P

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OFFICE OF NAVAL RESEARCH CONTRIBUTION-BASED COMPENSATION SYSTEM (CCS) SUMMARY [Administrative Support]

Employee Name: Pay Pool Code: Appraisal Period Ending: Click here to enter text. Click here to enter text. Click here to enter text.

Title: Pay Plan/Series: Career Level: Click here to enter text. Click here to enter text. Click here to enter text.

SSN; Click here to enter text. Supervisor: Click here to enter text.

Most Recent OCS: Click here to enter text. Salary: Click here to enter text. Present Salary: Click here to enter text. Scores within NPR Equivalent to Present

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Rating of Record Critical Elements * Weight Score Net Score Acceptable or Unaccept- able

1. Problem Solving Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. 2. Cooperation/Customer Click here to enter text. Click here to enter text. Click here to enter text. Click here to enter text. Relations/Supervision * If zero, then element not applicable.

Basic Pay Increase %: Click here to enter text. (Unacceptable) SUPPLEMENTAL CRITERIA (OPTIONAL). Contribution Award $: Click here to enter Must be U if any critical element is rated U FOR EXAMPLE, SPECIFIC OBJECTIVES, text. Click here to enter text. STANDARDS, TASKINGS, AND/OR Overall Contribution Score (Weighted EXAMPLES: Hours: Click here to enter text. Average): Summary Rating A (Acceptable) or U Click here to enter text. REMARKS:

Signatures and Date CCS Plan Interim Review Appraisal

Employee

Supervisor NOTE: Employee’s signature under ‘‘CCS Plan’’ signifies that he or she has been given a copy of this summary and has a copy of Elements, Descriptors, Discriminators, and Standards applicable to his or her career track.

BILLING CODE 5001–06–P

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Appendix F: Computation of the IPS (scores and pay above those points are From the above considerations, five and the NPR related using the same parameters). Each variables, or inputs, were identified. They are interval is a fixed percentage of the pay as follows: The ONR demonstration project will use an associated with the previous point. 1. Variable A: GS–1, step 1 (lowest salary). IPS which links basic pay to contribution For each possible contribution score 2. Variable B: GS–15, step 10 (highest scores determined by the CCS process. The available to employees, the NPR spans a salary). area where basic pay and level of basic pay range of 12 percent. The lower 3. Variable C: Current C-values. contribution are assumed to be properly boundary (or ‘‘rail’’) is established by fixing 4. Variable M: 6 percent (middle rail related is called the NPR. An employee the basic pay equivalent to GS–1, step 1, with computation above the low rail). whose CCS score and rate of basic pay plot a CCS score of zero. The upper boundary is 5. Variable H: 12 percent (high rail within the NPR is considered to be fixed at the basic pay equivalent to GS–15, computation above low rail). contributing at a level consistent with pay. step 10, with a CCS score of 80. The distance Other variables are as follows: Employees whose pay plots below the NPR between these upper and lower rails for a 1. Variable N: Number of C-value steps at for their assessed score are considered given overall contribution score is then GS–15, step 10. ‘‘undercompensated’’ while employees whose computed to ensure the range of 12 percent 2. Variable P (step increase): Salary value score and pay plot above the NPR are of basic pay is maintained for each available for each C-value equal to 1 + percentage considered ‘‘overcompensated.’’ CCS score. The middle rail of the NPR is increase. The purpose of this scoring and pay computed as 6 percent above the lower rail. From these variables, the following structure is to spread the full range of basic This point is used in connection with certain formula definitions were developed: pay provided by the GS, between GS–1, step limits established for pay increases (see Low rail = A*(P∧C) 1, and GS–15, step 10, into 80 intervals section IV.C.7). Mid rail = (1+M)*A*(P∧C)

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High rail = (1+H)*A*(P∧C) band scores and basic pay ranges. increase above. These C-values are extended Where P = (B/(A*(1+H)))∧(1/N) Attachment (2) contains graphic to encompass the equivalent of EX–IV representations of these tables for each career effective January 2010. In the example, EX– As an example, a result of the above track. Once the C-values (0–80) are computation, using the 2010 GS Salary Table, IV is equal to basic pay of $155,500 and is determined, the CCS pay bands and scores encompassed by the C-value 89 ($142,734 to P (step increase) equals 1.023664623. are extended at the same percentage Attachment (1) is a complete list of CCS pay increments as were computed for the step $159,862).

SALARY RANGES ASSOCIATED WITH EACH C–VALUE USING 2010 INPUTS [GS 1–Step 1: 17,803 Hi%: 12.00% #C–values: 80 GS 15–Step 10: 129,517 Mid%: 6.00%]

C–value Low Rail Mid Rail High Rail C–value Low Rail Mid Rail High Rail

0 ...... 17803 18871 19939 48 54709 57992 61275 1 ...... 18224 19318 20411 49 56004 59364 62725 2 ...... 18656 19775 20894 50 57329 60769 64209 3 ...... 19097 20243 21389 51 58686 62207 65728 4 ...... 19549 20722 21895 52 60075 63679 67284 5 ...... 20012 21212 22413 53 61497 65186 68876 6 ...... 20485 21714 22943 54 62952 66729 70506 7 ...... 20970 22228 23486 55 64442 68308 72175 8 ...... 21466 22754 24042 56 65967 69925 73883 9 ...... 21974 23293 24611 57 67528 71579 75631 10 ...... 22494 23844 25193 58 69126 73273 77421 11 ...... 23026 24408 25790 59 70762 75007 79253 12 ...... 23571 24986 26400 60 72436 76782 81128 13 ...... 24129 25577 27025 61 74150 78599 83048 14 ...... 24700 26182 27664 62 75905 80459 85014 15 ...... 25285 26802 28319 63 77701 82363 87025 16 ...... 25883 27436 28989 64 79540 84312 89085 17 ...... 26496 28085 29675 65 81422 86308 91193 18 ...... 27123 28750 30377 66 83349 88350 93351 19 ...... 27764 29430 31096 67 85322 90441 95560 20 ...... 28422 30127 31832 68 87341 92581 97822 21 ...... 29094 30840 32585 69 89408 94772 100136 22 ...... 29783 31570 33357 70 91523 97015 102506 23 ...... 30487 32317 34146 71 93689 99311 104932 24 ...... 31209 33081 34954 72 95906 101661 107415 25 ...... 31947 33864 35781 73 98176 104066 109957 26 ...... 32703 34666 36628 74 100499 106529 112559 27 ...... 33477 35486 37495 75 102877 109050 115223 28 ...... 34270 36326 38382 76 105312 111631 117949 29 ...... 35081 37185 39290 77 107804 114272 120741 30 ...... 35911 38065 40220 78 110355 116977 123598 31 ...... 36761 38966 41172 79 112967 119745 126523 32 ...... 37630 39888 42146 80 115640 122579 129517 33 ...... 38521 40832 43143 81 118377 125479 132582 34 ...... 39433 41798 44164 82 121178 128449 135719 35 ...... 40366 42788 45210 83 124046 131488 138931 36 ...... 41321 43800 46279 84 126981 134600 142219 37 ...... 42299 44837 47375 85 129986 137785 145585 38 ...... 43300 45898 48496 86 133062 141046 149030 39 ...... 44324 46984 49643 87 136211 144384 152556 40 ...... 45373 48096 50818 88 139435 147801 156167 41 ...... 46447 49234 52021 89 142734 151298 159862 42 ...... 47546 50399 53252 90 146112 154879 163645 43 ...... 48671 51592 54512 91 149570 158544 167518 44 ...... 49823 52813 55802 92 153109 162296 171482 45 ...... 51002 54062 57123 46 ...... 52209 55342 58474 47 ...... 53445 56651 59858

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Appendix G: Intervention Model

Intervention Expected effects Measures Data sources

1. COMPENSATION a. Pay banding ...... Increased organizational flexibility Perceived flexibility ...... Attitude survey. Reduced administrative workload, Actual/perceived time savings...... Personnel office data, PME re- paper work reduction. sults, attitude survey. Advanced in-hire rates...... Starting salaries of banded v. Workforce data. non-banded employees. Slower pay progression at entry Progression of new hires over Workforce data. levels. time by band, career path. Increased pay potential ...... Mean salaries by band, group, Workforce data. demographics. Total payroll costs ...... Personnel office data. Increased satisfaction with ad- Employee perceptions of ad- Attitude survey. vancement. vancement. Increased pay satisfaction ...... Pay satisfaction, internal/external Attitude survey. equity. Improved recruitment...... Offer/acceptance ratios; Percent Personnel office data. declinations. b. Conversion buy-in ...... Employee acceptance ...... Employee perceptions of equity, Attitude survey. fairness. Cost as a percent of payroll ...... Workforce data. c. Pay differentials/adjustments ..... Increased incentive to accept su- Perceived motivational power ...... Attitude survey. pervisory/team leader positions. 2. PERFORMANCE MANAGE- MENT a. Cash awards/bonuses ...... Reward/motivate performance ..... Perceived motivational power ...... Attitude survey. To support fair and appropriate Amount and number of awards by Workforce data. distribution of awards. group, demographics. Perceived fairness of awards ...... Attitude survey. Satisfaction with monetary awards Attitude survey. b. Performance based pay pro- Increased pay-performance link ... Perceived pay-performance link ... Attitude survey. gression. Perceived fairness of ratings ...... Attitude survey. Improved performance feedback .. Satisfaction with ratings ...... Attitude survey. Employee trust in supervisors ...... Attitude survey. Adequacy of performance feed- Attitude survey. back. Decreased turnover of high per- Turnover by performance rating Workforce data. formers/Increased turnover of scores. low performers. Differential pay progression of Pay progression by performance Workforce data. high/low performers. scores, career path. Alignment of organizational and Linkage of performance objectives Performance objectives, strategic individual performance objec- to strategic plans/goals. plans. tives and results. Increased employee involvement Perceived involvement ...... Attitude survey/focus groups. in performance planning and assessment. Performance management ...... Personnel regulations. c. New appraisal process ...... Reduced administrative burden .... Employee and supervisor percep- Attitude survey. tions of revised procedures. Improved communication ...... Perceived fairness of process ...... Focus groups. d. Performance development ...... Better communication of perform- Feedback and coaching proce- Focus groups. ance expectations. dures used. Personnel office data. Time, funds spent on training by Training records. demographics. Improved satisfaction and quality Perceived workforce quality ...... Attitude survey. of workforce. 3. ‘‘WHITE COLLAR’’ CLASSI- FICATION a. Improved classification systems Reduction in amount of time and Time spent on classification pro- Personnel office data. with generic standards. paperwork spent on classifica- cedures. tion. Reduction of paperwork/number Personnel office data. of personnel actions (classifica- tion/promotion). Ease of use...... Managers’ perceptions of time Attitude survey. savings, ease of use. b. Classification authority dele- Increased supervisory authority/ Perceived authority ...... Attitude survey. gated to managers. accountability. Decreased conflict between man- Number of classification disputes/ Personnel records. agement and personnel staff. appeals pre/post.

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Intervention Expected effects Measures Data sources

Management satisfaction with Attitude survey. service provided by personnel office. No negative impact on internal Internal pay equity ...... Attitude survey. pay equity. c. Dual career ladder ...... Increased flexibility to assign em- Assignment flexibility ...... Focus groups, surveys. ployees. Improved internal mobility ...... Perceived internal mobility ...... Attitude survey. Increased pay equity ...... Perceived pay equity ...... Attitude survey. Flatter organization ...... Supervisory/non-supervisory ra- Workforce data. tios. Attitude survey. Improved quality of supervisory Employee perceptions of quality Attitude survey. staff. or supervisory. 4. Modified RIF Minimize loss of high performing Separated employees by demo- Workforce data, Attitude survey/ employees with needed skills. graphics, performance scores. focus group. Contain cost and disruption ...... Satisfaction with RIF Process ...... Attitude survey/focus group. Cost comparison of traditional vs. Personnel office/budget data. Modified RIF. Time to conduct RIF—personnel Personnel office data. office data. Number of Appeals/reinstate- Personnel office data. ments. 5. Hiring Authority a. Delegated Examining ...... Improved ease and timeliness of Perceived flexibility in authority to Attitude survey. hiring process. hire. Improved recruitment of employ- Offer/accept ratios ...... Personnel office data. ees in shortage categories. Percent declinations ...... Personnel office data. Timeliness of job offers ...... Personnel office data. GPAs of new hires, educational Personnel office data. levels. Reduced administrative workload/ Actual/perceived skills ...... Attitude survey. paperwork reduction. b. Term Appointment Authority ...... Increased capability to expand Number/percentage of conver- Workforce data. and contract workforce. sions from modified term to per- Personnel office data. manent appointments. c. Flexible Probationary Period ...... Expanded employee assessment Average conversion period to per- Workforce data. manent status. Personnel office data. Number/percentage of employees Workforce data. completing probationary period. Personnel office data. Number of separations during Workforce data. probationary period. Personnel office data. 6. Expanded Development Oppor- tunities a. Sabbaticals ...... Expanded range of professional Number and type of opportunities Workforce data. growth and development. taken. Application of enhanced knowl- Employee and supervisor percep- Attitude survey. edge and skills to work product. tions. b. Critical Skills Training ...... Improved organizational effective- Number and type of training ...... Personnel office data ness. Placement of employees, skills Personnel office data imbalances corrected. Employee and supervisor percep- Attitude survey tions. Application of knowledge gained Attitude survey/focus group. from training. 7. Combination of All Interventions All ...... Improved organizational effective- Combination of personnel meas- All data sources. ness. ures. Improved management of work- Employee/Management job satis- Attitude survey. force. faction (intrinsic/extrinsic). Improved planning ...... Planning procedures ...... Strategic planning documents. Perceived effectiveness of plan- Attitude survey. ning procedures. Improved cross functional coordi- Actual/perceived coordination ...... Organizational charts. nation. Increased product success ...... Customer satisfaction ...... Customer satisfaction surveys. Cost of innovation ...... Project training/development costs Demo project office records. (staff salaries, contract cost, Contract documents. training hours per employee). 8. Context: Regionalization ...... Reduced servicing ratios/costs ..... HR servicing ratios ...... Personnel office data, workforce data.

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Intervention Expected effects Measures Data sources

Average cost per employee Personnel office data, workforce served. data. No negative impact on service Service quality, timeliness ...... Attitude survey/focus groups. quality.

[FR Doc. 2010–12690 Filed 5–27–10; 8:45 am] BILLING CODE 5001–06–P

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Part V

Department of Health and Human Services Centers for Medicare & Medicaid Services

47 CFR Parts 447 and 457 Medicaid Program; Premiums and Cost Sharing; Final Rule

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DEPARTMENT OF HEALTH AND comments by facsimile (FAX) ‘‘Collection of Information HUMAN SERVICES transmission. Requirements’’ section in this document. 1. Electronically. You may submit For information on viewing public Centers for Medicare & Medicaid electronic comments on this regulation comments, see the beginning of the Services to http://www.regulations.gov. Follow SUPPLEMENTARY INFORMATION section. the instructions under the ‘‘More Search FOR FURTHER INFORMATION CONTACT: 42 CFR Parts 447 and 457 Options’’ tab. Christine Gerhardt, (410) 786–0693. 2. By regular mail. You may mail [CMS–2244–FC] SUPPLEMENTARY INFORMATION: written comments to the following Inspection of Public Comments: All RIN 0938–AP73 address ONLY: Centers for Medicare & comments received before the close of Medicaid Services, Department of the comment period are available for Medicaid Program; Premiums and Cost Health and Human Services, Attention: viewing by the public, including any Sharing CMS–2244–FC, P.O. Box 8010, personally identifiable or confidential AGENCY: Centers for Medicare & Baltimore, MD 21244–8010. business information that is included in Medicaid Services (CMS), HHS. Please allow sufficient time for mailed a comment. We post all comments comments to be received before the ACTION: Final rule with comment period. received before the close of the close of the comment period. comment period on the following Web SUMMARY: This final rule revises the 3. By express or overnight mail. You site as soon as possible after they have November 25, 2008 final rule entitled, may send written comments to the been received: http://regulations.gov. ‘‘Medicaid Programs; Premiums and following address ONLY: Centers for Follow the search instructions on that Cost Sharing (73 FR 71828),’’ to address Medicare & Medicaid Services, Web site to view public comments. public comments received during Department of Health and Human Comments received timely will be reopened comment periods, and to Services, Attention: CMS–2244–FC, also available for public inspection as reflect relevant statutory changes made Mail Stop C4–26–05, 7500 Security they are received, generally beginning in section 5006(a) of the American Boulevard, Baltimore, MD 21244–1850. approximately 3 weeks after publication Recovery and Reinvestment Act of 2009 4. By hand or courier. If you prefer, of a document, at the headquarters of (the Recovery Act). This revised final you may deliver (by hand or courier) the Centers for Medicare & Medicaid rule implements and interprets section your written comments before the close Services, 7500 Security Boulevard, 1916A of the Social Security Act (the of the comment period to either of the Baltimore, Maryland 21244, Monday Act), which was added by sections following addresses: through Friday of each week from 8:30 6041, 6042, and 6043 of the Deficit a. For delivery in Washington, DC— a.m. to 4 p.m. To schedule an Reduction Act of 2005 (DRA), amended Centers for Medicare & Medicaid appointment to view public comments, by section 405(a)(1) of the Tax Relief Services, Department of Health and phone 1–800–743–3951. and Health Care Act of 2006 (TRHCA) Human Services, Room 445–G, Hubert I. Background and further amended by section 5006(a) H. Humphrey Building, 200 of the American Recovery and Independence Avenue, SW., A. Statutory Authority Washington, DC 20201. Reinvestment Act of 2009 (the Recovery The Deficit Reduction Act of 2005 Act). These provisions increase State (Because access to the interior of the (DRA) (Pub. L. 109–171) was enacted on flexibility to impose premiums and cost Hubert H. Humphrey Building is not February 8, 2006. Sections 6041, 6042, sharing for coverage of certain readily available to persons without and 6043 of the DRA established a new individuals whose family income Federal government identification, section 1916A of the Social Security Act exceeds specified levels. This revised commenters are encouraged to leave (the Act), which was amended by rule also provides a further opportunity their comments in the CMS drop slots section 405(a)(1) of the Tax Relief and for public comment on revisions made located in the main lobby of the Health Care Act of 2006 (TRHCA) (Pub. to implement and interpret section building. A stamp-in clock is available L. 109–432, enacted on December 20, 5006(a) of the Recovery Act. The for persons wishing to retain a proof of 2006). Section 1916A of the Act sets Recovery Act prohibits States from filing by stamping in and retaining an forth State options for alternative charging premiums and cost sharing extra copy of the comments being filed.) premiums and cost sharing, including under Medicaid to Indians furnished b. For delivery in Baltimore, MD— options for higher cost sharing for non- items or services directly by the Indian Centers for Medicare & Medicaid preferred prescription drugs and for Health Service, Indian Tribes, Tribal Services, Department of Health and non-emergency use of a hospital Organizations, or Urban Indian Human Services, 7500 Security emergency room. Organizations or through referral under Boulevard, Baltimore, MD 21244– Section 6041 of the DRA established contract health services. 1850. new subsections 1916A(a) and (b) of the DATES: If you intend to deliver your Act, which allow States to amend their Effective Date: These regulations are comments to the Baltimore address, State plans to impose alternative effective on July 1, 2010. please call telephone number (410) 786– premiums and cost sharing on certain Comment Date: To be assured of 9994 in advance to schedule your groups of individuals, for items and consideration, comments limited to the arrival with one of our staff members. services other than drugs (which are implementation of section 5006(a) of the Comments mailed to the addresses subject to a separate provision discussed Recovery Act must be received at one of indicated as appropriate for hand or below), and to adopt certain rules with the addresses provided below, no later courier delivery may be delayed and respect to the nonpayment and payment than 5 p.m. on July 27, 2010. received after the comment period. of the premiums and cost sharing. ADDRESSES: In commenting, please refer Submission of comments on Subsections 1916A(a) and (b) of the Act to file code CMS–2244–FC. paperwork requirements. You may set forth limitations on alternative You may submit comments in one of submit comments on this document’s premiums and cost sharing that vary four ways (please choose only one of the paperwork requirements by following based on family income, and exclude ways listed). We cannot accept the instructions at the end of the some specific services from alternative

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cost sharing. Section 6041 of the DRA (the Recovery Act) (Pub. L. 111–5, because our initial review had indicated also created a new section 1916(h) of the enacted on February 17, 2009) amended that substantial revisions to the final Act, which requires the Secretary to sections 1916 and 1916A of the Act rule would be needed. Also, the increase the ‘‘nominal’’ cost sharing effective July 1, 2009. Specifically, comment period was again reopened, amounts under section 1916 of the Act Section 5006(a)(1)(A) of the Recovery for two purposes: for additional for each year (beginning with 2006) by Act amended section 1916 of the Act to comments on the policies set forth in the annual percentage increase in the add a new subsection (j), which the November 25, 2008 final rule, and medical care component of the prohibits premiums and cost sharing for for comments on revisions needed to consumer price index for all urban Indians who are provided services or reflect section 5006(a) of the Recovery consumers (CPI–U) as rounded up in an items covered under the Medicaid State Act (related to the exclusion of Indians appropriate manner. Section 405(a)(1) of plan by Indian health care providers or from payment of premiums and cost the TRHCA modified subsections through referral under contract health sharing). 1916A(a) and (b) of the Act. services. Section 5006(a)(2) of the On October 30, 2009, we published a Section 6042 of the DRA created Recovery Act amended section proposed rule in the Federal Register section 1916A(c) of the Act, which 1916A(b)(3)(A) of the Act to add a new (74 FR 56151) to delay further the provides States with additional options clause prohibiting premiums on an effective date of the November 25, 2008 to encourage the use of preferred drugs. Indian furnished an item or service final rule until July 1, 2010. Upon Section 405(a)(1) of the TRHCA also directly by Indian health care providers review and consideration of the public modified section 1916A(c) of the Act. or through referral under contract health comments received and the provisions Under section 1916A(c) of the Act, services, and also added a clause to of the Recovery Act, we determined that States may amend their State plans to 1916A(b)(3)(B) prohibiting cost sharing we needed more time to review and require increased cost sharing by certain for that population. In addition, section revise the November 25, 2008 final rule. groups of individuals for non-preferred 5006(a)(1)(B) of the Recovery Act On November 30, 2009, we published a drugs and to waive or reduce the amended section 1916 of the Act to third final rule in the Federal Register otherwise applicable cost sharing for specify that payments to Indian health (74 FR 62501) that delayed the effective preferred drugs. States may also permit care providers or to a health care date of the November 25, 2008 final rule pharmacy providers to require the provider through referral under contract until July 1, 2010. receipt of a cost sharing payment from health services for Medicaid services or an individual before filling a items furnished to Indians cannot be II. Provisions of the November 25, 2008 prescription. reduced by the amount of any Final Rule and the Extended Comment Section 6043 of the DRA created enrollment fee, premium, or cost Period and Analysis of and Response to section 1916A(e) of the Act, which sharing that otherwise would be due Public Comments permits States to amend their State from the individual. A. Public Comments plans to allow hospitals, after an We also acknowledge the importance appropriate medical screening of providing adequate mental health We received approximately 50 timely examination under section 1867 of the benefits and will be separately items of correspondence during the Act (per the Emergency Medical addressing how the laws following the public comment period for the February Treatment and Active Labor Act), to DRA, including the Paul Wellstone and 22, 2008 proposed rule, which we impose higher cost sharing upon certain Pete Domenici Mental Health Parity and addressed in the November 25, 2008 groups of individuals for non- Addiction Equity Act of 2008 (Pub. L. final rule. We received approximately 5 emergency care or services furnished in 110–343), relate to the Medicaid timely items of correspondence a hospital emergency department. program regarding the treatment of (including 20 specific comments) in Section 405(a)(1) of the TRHCA beneficiary cost sharing. response to the January 27, 2009 modified section 1916A(e) of the Act. reopening of the comment period. In Under this option, if the hospital B. Regulatory History addition, we received approximately 10 determines that an individual does not On February 22, 2008, we published timely items of correspondence have an emergency medical condition a proposed rule in the Federal Register (including 36 specific comments) in and that an available and accessible (73 FR 9727) that proposed to response to the March 27, 2009 alternate non-emergency services implement and interpret the provisions reopening of the comment period. provider can provide the services in a of sections 6041, 6042, and 6043 of the Summaries of those public comments timely manner without the imposition DRA. A final rule entitled ‘‘Medicaid and our responses are set forth in the of the same cost sharing, before Program; Premiums and Cost Sharing’’ various sections of this final rule under providing the non-emergency services was published in the Federal Register the appropriate heading. and imposing cost sharing, it must on November 25, 2008 (73 FR 71828). B. General Comments inform the individual of the availability On January 27, 2009, prior to the of such services from the accessible effective date of the November 25, 2008 A majority of the public comments non-emergency services provider and final rule, we published a final rule in received for the January 27, 2009 and coordinate a referral to that provider. the Federal Register (74 FR 4888) that March 27, 2009 extended comment After notice is given, the hospital may temporarily delayed for 60 days the periods were similar to comments require payment of the cost sharing effective date of the November 25, 2008 received on the February 22, 2008 before providing non-emergency final rule and reopened the comment proposed rule, which we addressed in services, if the individual elects to period on the policies set out in the the November 25, 2008 final rule. In receive the non-emergency services November 25, 2008 final rule. light of the continued concerns reflected from the hospital. The cost sharing On March 27, 2009, we published a by these comments, and additional cannot be imposed if no available second final rule in the Federal Register review of available research, State alternative non-emergency service (74 FR 13346) that further delayed the practice, and changes in overall provider exists. effective date of the November 25, 2008 economic circumstances throughout the Section 5006(a) of the American final rule until December 31, 2009. We country, we have reconsidered our Recovery and Reinvestment Act of 2009 stated that the delay was needed responses to these comments. In

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particular, we have given greater weight of the revised final rule based on these • Requiring States to describe in their to concerns about maintaining access to comments. Medicaid State plan their process for services for needy families. A summary In light of public comments, we have, beneficiaries to request a reassessment of the general comments received and however, reconsidered some of our prior of the family’s aggregate limit for our responses are as follows: responses to comments on specific premiums and cost sharing if the Comment: Several commenters stated interpretive issues, in order to increase family’s income is reduced or if that the rule would significantly reduce the protections for vulnerable eligibility is being terminated due to affordability of care and patients’ access populations to the extent consistent nonpayment of premiums. to adequate care, and would result in with the statutory requirements. As we • Clarifying that the statutory decreased utilization of essential health discuss in greater detail in responding exclusion of family planning services care services, increased adverse events, to specific public comments on each and supplies from cost sharing and worsened health status due to less issue below, in this revised rule we are: encompasses the entire range of such use of health care characterized as • Reducing the maximum copayment services for which the State claims or ‘‘effective’’ and subsequent use of more amount from $5.70 (the maximum could claim the enhanced Federal costly care. These commenters copayment amount for children in matching rate for family planning requested that the final rule reflect the separate CHIP programs) to $3.40 per services and supplies under section need for caution and care when visit in fiscal year 2009 (which is then 1903(a)(5) of the Act, including imposing premiums and cost sharing adjusted for inflation annually) for contraceptives and other charges on low-income Medicaid Medicaid expansion optional targeted pharmaceuticals. beneficiaries. These commenters low income children enrolled in • Clarifying that the statutory asserted that the November 25, 2008 managed care organizations, when a exclusion of certain populations and final rule would allow States to increase State does not have a fee-for-service services from cost sharing exceeding a health care expenses for vulnerable system. nominal amount means that drugs not citizens, result in more crisis situations • Specifying that a State that adopts identified by a State as non-preferred that lead to more expensive cost sharing rules that could result in drugs within a class of pharmaceuticals hospitalizations, limit access to basic aggregate costs to the family that exceed are subject to the same exclusions from health care, and force out people who five percent of the family’s income cost sharing as preferred drugs. need services most. These commenters must: (1) Describe in its Medicaid State • Requiring States to submit argued that increased flexibility for plan the methodology it will use to documentation with a State plan States to impose premiums or cost identify beneficiaries who are subject to amendment proposing to establish or sharing is detrimental to low-income premiums or cost sharing for specific substantially modify alternative populations, unless there are explicit items or services; and (2) track premiums or cost sharing under section restrictions on maximum premium and beneficiaries’ incurred premiums and 1916A of the Act that the State provided cost sharing levels. cost sharing through a mechanism the public with advance notice of the One commenter described her developed by the State that does not amendment and reasonable opportunity personal situation that she would have rely on beneficiaries. These for comment in a form and manner inadequate money for food or rent if her requirements are imposed so that the provided under applicable State law. copayments were increased. State is able to inform beneficiaries and CMS will continue to carefully review Response: We appreciate the providers of beneficiaries’ liability and State plan amendments submitted to significant concerns expressed in these notify beneficiaries and providers when implement or modify premiums or cost comments and agree that there is ample individual beneficiaries have reached sharing to ensure that the processes evidence that cost is a significant barrier the five percent limit on family out-of- described adhere to the statutory and to people accessing coverage and care, pocket expenses and so are no longer regulatory requirements. particularly for those with low or subject to further cost sharing for the We further note that the concerns moderate incomes. These are important remainder of the family’s current expressed by the commenters may be issues with which States must contend monthly or quarterly cap period. widely shared. To date, only 8 States when they determine whether to impose Ideally, for ease of administration and have approved State plan amendments premiums and cost sharing for their accuracy, States will use automated for alternative premiums and/or cost Medicaid and Children’s Health systems to track these cost sharing sharing under section 1916A of the Act. Insurance Program (CHIP) populations amounts. These provisions are usually applied to and as they design and implement these • Specifying that a State must narrowly defined, higher income provisions. CMS also must be mindful describe in its Medicaid State plan how populations and/or to limited services, of these issues as we promulgate rules the State identifies for providers, ideally such as premiums for specific and oversee the operation of Medicaid through the use of automated systems, expansion populations or slightly more and CHIP. However, to the extent that whether cost sharing for a specific item than nominal pharmacy copayments. these comments reflect fundamental or service may be imposed on an Comment: We also received a disagreements with the statutory individual beneficiary and whether the recommendation that the rule should flexibility and requirements enacted in provider may require the beneficiary, as reflect the change in course signaled by sections 1916 and 1916A of the Act, we a condition for receiving the item or the Children’s Health Insurance note that CMS is charged with service, to pay the cost sharing charge. Program Reauthorization Act of 2009 implementing applicable statutory • Specifying at a minimum the (CHIPRA) to strengthen quality of care, provisions. services listed at § 457.520 as the ensure the availability of preventive We have developed the revised final preventive services that must be services, and enhance access to needed rule in accordance with the provisions excluded from cost sharing for children services to improve health outcomes. set forth at sections 1916 and 1916A of younger than age 18, which reflect the The commenter also recommended that the Act. This regulation is consistent well baby and well child care and rigorous data collection accompany any with the statute and reflects little immunizations described by the Bright enhanced cost sharing, to determine interpretive policy by CMS; therefore, Futures guidelines of the American whether higher co-payment we are unable to change major aspects Academy of Pediatrics. requirements present a greater access

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barrier to people with disabilities. The Indians from premiums and cost Comment: A commenter asked that commenter further recommended that sharing, and we believe that there has CMS establish effective procedures to providers report to States and that States been a full opportunity for Tribes to properly enforce this provision, report to CMS at least a sample of the raise issues of concern. Moreover, the including a new audit element to race and ethnicity of individuals for Recovery Act contains expanded quickly detect any prohibited whom providers approved a waiver consultation responsibilities for States reductions in providers’ payments or from mandatory co-payments on a case- in implementing options under the other violations. The commenter by-case basis, in order to demonstrate Federal Medicaid and CHIP statutes. asserted that States must make that the waiver does not have a In keeping with the Department’s supplemental payments to providers for disparate effect on people of color or Tribal consultation policy and the new any prohibited reductions in payment. non-English-speaking individuals. provisions in the Recovery Act, CMS Response: Congress did not provide Response: While we agree with the collaborated and consulted with the for any new enforcement mechanism for commenter’s overall sentiments, we Tribal Technical Advisory Group these provisions, and it is not clear that believe it is important to consider these (TTAG) and the IHS to solicit advice on existing enforcement mechanisms are kinds of recommended information implementing these provisions. The inadequate. All States have an appeal collection and reporting requirements Tribal Affairs Group and the Center for process through which beneficiaries and separately, in conjunction with other Medicaid, CHIP and Survey and providers can appeal State similar potential information collection Certification within CMS jointly hosted determinations concerning the amount and reporting requirements. CMS has two All Tribes Calls on June 5 and 12, of medical assistance. CMS involvement broad authority under section 1902(a)(6) 2009, to consult on implementation of is primarily through the State plan of the Act to require States to report any section 5006 of the Recovery Act. Two approval process. In addition, CMS has needed information, but it is important face-to-face consultation meetings were authority to initiate compliance actions to carefully consider such reporting held in Denver on July 8 and 10, 2009, under section 1904 of the Act in the requirements and ensure that they can to solicit advice and input on these event of systemic noncompliance by a be integrated with existing State provisions from federally-recognized State. responsibilities and are not overly Tribes, Indian health care providers, Comment: Another commenter recommended that CMS include burdensome. Because providers are not and Urban Indian Organizations. An requirements for administrative required to report on their claims for All-States Call was held on June 10, simplicity in the implementation of the Medicaid reimbursement whether the 2009, with the State Medicaid and CHIP Recovery Act’s new exclusion of Native provider collected a mandatory programs, to describe the CMS Tribal Americans from cost-sharing, including copayment, requiring providers to consultation process and the Recovery ease of tribal membership obtain and submit information about the Act provisions and to solicit feedback documentation. race and ethnicity of individuals for and questions from States. whom the provider waived a copayment Response: We agree that Comment: A commenter asserted that would be burdensome and costly for all administrative simplicity is very CMS should adopt the TTAG involved, even for a sample of claims. important. Therefore, we have defined recommendation to adopt an interim the term ‘‘Indian’’ for purposes of the C. General Comments on the Exemption rule to implement section 5006(a) of the exemption from premiums and cost of Indians From Premiums and Cost Recovery Act by July 1, 2009, because, sharing in broad terms that indicate the Sharing otherwise, violations of the new kinds of documentation that could We received the following general provision could occur and go support the application of the comments concerning the exemption of undetected. The commenter stated that exception. Indians furnished items or services it is important for CMS to assure that Specifically, Indian means any directly by an Indian health care mechanisms are put in place timely at individual defined at 25 USC 1603(c), provider (the Indian Health Service the State level, to assure compliance 1603(f), or 1679(b), or who has been (IHS), an Indian Tribe, a Tribal with this new provision as of the determined eligible as an Indian, Organization, or an Urban Indian effective date of July 1, 2009. pursuant to 42 CFR 136.12. This means Organization) or through referral under Response: The requirements of the individual: contract health services from payment section 5006(a) of the Recovery Act (1) Is a member of a Federally- of premiums and cost sharing effective were effective as of July 1, 2009, and recognized Indian tribe; July 1, 2009, in accordance with the CMS intends to work with States to (2) resides in an urban center and section 5006(a) of the Recovery Act. implement the statutory requirements meets one or more of the four criteria: Comment: Several commenters urged through its compliance reviews and (a) Is a member of a tribe, band, or other CMS to fulfill its responsibilities for reviews of State plan amendments. CMS organized group of Indians, including early Tribal consultation, which did not issued a letter to State Medicaid those tribes, bands, or groups occur with the original cost-sharing Directors and State Health Officials on terminated since 1940 and those rule. January 22, 2010 (SMDL# 10–001/ recognized now or in the future by the Response: CMS believes that it is in ARRA# 6), providing guidance on State in which they reside, or who is a compliance with applicable Tribal implementation of section 5006 of the descendant, in the first or second consultation responsibilities, but notes Recovery Act. degree, of any such member; (b) is an that considerable additional The Congress did not expressly Eskimo or Aleut or other Alaska Native; consultation was undertaken since the provide authority for interim final (c) is considered by the Secretary of the original cost sharing rule was published. rulemaking authority under the Interior to be an Indian for any purpose; Further, we are open to specific Recovery Act. In light of the strong or (d) is determined to be an Indian suggestions as to how to maximize the public interest in timely protection of under regulations promulgated by the effectiveness of Tribal consultation. In the exempt Indian populations, we Secretary; our March 27, 2009 final rule, we provided the interim guidance to States (3) is considered by the Secretary of specifically requested public comment described above and have diligently the Interior to be an Indian for any on the new provisions exempting pursued the rulemaking process. purpose; or

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(4) is considered by the Secretary of items and services primary to both IHS charges only under fee-for-service Health and Human Services to be an and to individual Indians. systems, limited MCO charges to an Indian for purposes of eligibility for Comment: A commenter expressed estimate of the charges that would have Indian health care services, including as concern that CMS seems to feel that the been allowed under a fee-for-service a California Indian, Eskimo, Aleut, or statutory framework for the cost sharing system. In the February 22, 2008 other Alaska Native. rule reflects the principle that States are proposed rule, we proposed to revise Documentation that an individual is in the best position to weigh the Tribes’ § 447.54 to provide updates for Federal an Indian could include Tribal concerns, as Sovereign Nations, and that fiscal year (FY) 2007 to the existing enrollment and membership cards, a the States alone are to determine the ‘‘nominal’’ Medicaid cost sharing certificate of degree of Indian blood appropriate levels and scope of amounts, specifically the nominal issued by the Bureau of Indian Affairs, alternative cost sharing. The commenter deductible amount described at a Tribal census document, or a noted that the Tribes’ poorest people § 447.54(a)(1) and the nominal document issued by a Tribe indicating who are on Medicaid cannot afford even copayment amounts described at an individual’s affiliation with the the smallest cost sharing, and the § 447.54(a)(3) by applying an inflation Tribe. The Indian health care programs commenter was concerned that CMS factor, and described a methodology for and urban Indian health programs are ensure that States follow requirements future inflation-based updates that responsible for determining who is to consult with Tribes prior to included rounding the maximum eligible to receive an item or service implementing cost sharing that will copayment amounts to the next highest furnished by their programs and so a directly affect the Tribes and indigent 10-cent increment. We also proposed to medical record card or similar patients. add a new § 447.54(a)(4) to establish a documentation that specifies an Response: We agree that there are maximum copayment amount for individual is an Indian as defined above special concerns about cost sharing for Federal FY 2007 for services provided could suffice as appropriate Indians, and we believe that Congress by an MCO, in light of the difficulty in documentation. These documents are recognized these concerns in enacting determining comparable fee-for-service examples of documents that may be the Recovery Act protections for Indians charges. We noted that a similar MCO used, but do not constitute an all- from cost sharing that are being limit was applied under the CHIP inclusive list of such documents. implemented in this revised final rule, program. Comment: A commenter also stated and the new requirements for CMS to In the November 25, 2008 final rule, that Tribal leaders are not cognizant of maintain the TTAG and for States to we updated the maximum nominal all the impacts that these changes will engage in tribal consultation under copayments to reflect amounts for have on the elderly Indian populations section 5006(e) of the Recovery Act. We Federal FY 2009. The amounts were enrolled in Medicaid. The commenter will continue to monitor State rounded to the next highest 5-cent stated that none of this information has compliance with tribal consultation increment rather than 10-cent been provided by CMS or the IHS. requirements in all aspects of the increment, to be consistent with the Response: As described above, CMS Medicaid program. Medicare Part D program. In addition, has engaged in an extensive Tribal we clarified that we would calculate the D. Comments From the January 27, 2009 consultation process, providing update each year without considering and March 27, 2009 Extended Comment information to the Tribes, soliciting any rounding adjustment made in the Periods on the November 25, 2008 Final their input, and incorporating changes previous year. A new paragraph (a)(4) Rule into this revised rule based on that was added to specify that the input. Following is a summary of each copayment amount for services Comment: A commenter stated that provision in the February 22, 2008 provided by an MCO may not exceed for Indians who use the IHS system, proposed rule entitled ‘‘Medicaid the copayment amount for comparable Medicaid is considered the primary Programs: Premiums and Cost Sharing’’ services under a fee-for-service delivery payer, and IHS is considered the payer that was addressed in a public system. In the circumstance when there of last resort according to 42 CFR comment. We include a background is no fee-for-service delivery system 136.61. Therefore, the commenter summary of any changes included in the under the plan, we specified that the asserted that a conflict exists between final rule published on November 25, copayment amount for services section 5006 of the Recovery Act 2008 based on comments received furnished by an MCO may not exceed specifying circumstances under which during the initial comment period; and the maximum copayment amount under Indians may not be charged cost-sharing then a summary of the additional a fee-for-service delivery system, which (and so defining when they may be comments on the final rule that were was $3.40 per visit for Federal FY 2009 charged cost sharing) and the IHS payer received during the reopened comment (based on the maximum fee-for-service of last resort policy, as well as Federal periods beginning on January 27 and copayment under Medicaid), or for responsibility in providing health care March 27, 2009; and responses to those individuals referenced in an approved for Native Americans. additional comments. State child health plan under title XXI Response: We do not see any conflict of the Act, a higher different maximum Maximum Allowable and Nominal between the exclusion of Indians from MCO copayment amount of $5.70 per Charges (§ 447.54) Medicaid premiums and cost sharing visit (based on the maximum fee-for- and the IHS payer of last resort rule, Under DRA § 6041(b)(2), adding service amount for children enrolled in which was included in section 2901 of § 1916(h) to the Social Security Act, the separate CHIP programs under title XXI the Patient Protection and Affordable Secretary was authorized to adjust the of the Act). Care Act of 2010, Public Law 111–148. regulatory definition of nominal Specific comments to this section We also do not see any conflict with charges. In reviewing those definitions, submitted during the reopened overall Federal responsibilities toward we also addressed the issue of comment periods and our responses to Indian health care. Indeed, we believe maximum charges by managed care those additional comments are as that these policies are consistent and organizations (MCO). CMS had follows: ensure that Medicaid programs will pay previously, in interpreting regulatory Comment: Several commenters for health care coverage of Medicaid provisions that addressed maximum recommended deletion of the $5.70 per

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visit maximum Medicaid copayment Specific comments on this section rights laws) and the Department of specifically for children in CHIP-related received during the reopened comment Justice (which also has responsibility for Medicaid expansions under managed period, and our responses to those enforcement of certain civil rights laws, care plans when a State does not have additional comments, are as follows: including the Americans with a fee-for-service system. This amount Comment: Several commenters Disabilities Act), are available to was added in the final rule published on recommended that the alternative investigate any questions or complaints November 25, 2008. premium and cost sharing rules be as to illegal discrimination under these Response: We agree with the simplified and clarified as much as statutes and the implementing underlying concern that copayments for possible, such as the different regulations. requirements based on the family’s such children would exceed levels Alternative Premiums, Enrollment Fees, otherwise considered nominal under the income level, because neither the State nor providers have the resources to or Similar Charges: State Plan Medicaid program. Therefore, in this Requirements (§ 447.64) revised final rule, we have deleted the implement these complex rules. higher maximum copayment amount for Response: We agree that the We proposed at § 447.64(a), that the Medicaid expansion children enrolled regulatory presentation of the statutory State plan describe the group or groups with MCOs. The same maximum limitations on alternative premiums and of individuals that may be subject to copayment of $3.40 per visit for Federal cost sharing may have been confusing. such premiums, enrollment fees, or FY 2009 will be applied for Medicaid In this revised final rule at § 447.62(a) similar charges. We further proposed in § 447.64(b) that the State plan include a expansion children as for all other and (b)(1), we have attempted to clarify schedule of the premiums, enrollment Medicaid beneficiaries enrolled in the regulatory provisions to better fees, or similar charges. At § 447.64(c), MCOs. While our intent had been to ensure consistency with the statutory requirements in sections 1916 and we proposed that the State plan describe align the Medicaid and CHIP programs 1916A of the Act. The basic provisions the methodology used to determine by permitting the same copayment of this section, such as the different family income, including the period and levels under either program, we have exclusions and limits based on a periodicity of those determinations. We been convinced by the commenters that family’s income level, are defined in also proposed in § 447.64(d) that the the status of the children under the statute and are by nature complex. We State plan describe the methodology the Medicaid program should be of primary have attempted to describe these State would use to ensure that the importance, because it indicates a complex exclusions and limits in the aggregate amount of premiums and cost State’s determination that the children simplest and most straightforward sharing imposed for all individuals in should be entitled to all the benefits and manner possible in this revised rule. the family does not exceed 5 percent of protections of the Medicaid program. Comment: A commenter family income as applied during the We have always applied Medicaid- recommended that the rule be revised to monthly or quarterly period specified by specific rules to Medicaid expansion make it clear that the Secretary of the State. In addition, at § 447.64(e), we programs, even if those rules vary from Health and Human Services’ (HHS) proposed that the State plan specify the the rules applicable to separate CHIP authority to waive cost sharing process for informing beneficiaries, programs. The importance of ensuring provisions under section 1916A of the applicants, providers, and the public of coverage for children and reducing Act is limited in accordance with the schedule. We further proposed in barriers to such coverage has been section 1916(f) of the Act. § 447.64(f) that the State plan describe affirmed generally by Congress in Response: In this revised final rule, the premium payment terms for the CHIPRA, which expanded and we included language in § 447.62(b) to group or groups and the consequences improved the CHIP program while clarify the text, taking into account the for an individual who does not pay. maintaining the option of using CHIP amendment to section 1916(f) of the Act In the November 25, 2008 final rule, funding for serving children through the made by section 6041(b)(1) of the DRA. we accepted the provisions of the Medicaid program. In light of section 1916A of the Act and proposed rule with no substantive Alternative Premiums and Cost Sharing: the provision of the DRA that applies changes. Basis, Purpose and Scope (§ 447.62) section 1916(f) to 1916A of the Act, we Specific comments to this section are reviewing our policies under section submitted during the reopened In the February 22, 2008 proposed 1115 of the Social Security Act. comment periods and our responses to rule, we proposed to implement the Comment: Several commenters those additional comments are as flexibility for States to impose advised that giving States the flexibility follows: alternative premiums and cost sharing to exclude additional groups of Comment: Several commenters with the protections outlined in the individuals from payment of premiums requested that the State agency, rather TRHCA, including the imposition of or cost sharing should not have the than beneficiaries or managed care nominal cost sharing for individuals effect of discriminating against organizations, be required to track each with family income at or below 100 individuals on the basis of race, color, beneficiary’s aggregate incurred percent of the FPL limited to national origin, or disability (title VI of premiums and cost sharing, to assure prescription drugs and non-emergency the Civil Rights Act of 1964, Americans that a beneficiary’s aggregate limit is not services furnished in a hospital with Disabilities Act (ADA), 42 CFR exceeded. emergency room. 430.2(b), 45 CFR Part 80). Response: We agree with the In the November 25, 2008 final rule, Response: We agree. Existing HHS commenters’ request because we are we accepted the provisions of the regulations under these civil rights and concerned that it would be overly proposed rule without change but added other statutes, including section 504 of burdensome for beneficiaries to track a provision that clarified that the Rehabilitation Act, already prohibit aggregate incurred cost sharing that may individuals with family income at or both States and entities that receive have been made in small cash below 100 percent of the FPL could be Federal Medicaid funding from taking transactions when such information can charged nominal copayments to the discriminatory actions. The HHS Office be more efficiently tracked through the extent consistent with section 1916 of for Civil Rights (responsible for State’s eligibility, enrollment, and the Act. Departmental enforcement of most civil claims processing systems. In this

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revised final rule, we have modified In the November 25, 2008 final rule, is imposed. In § 447.68(d), we proposed paragraph (d) of § 447.64 to specify that we accepted the provisions of the that the State plan must describe if a State chooses to charge premiums proposed rule without change. methods, such as the use of integrated and cost sharing that could result in Specific comments to this section automated systems, for tracking cost aggregate costs to a family that exceed submitted during the reopened sharing charges, informing beneficiaries 5 percent of the family’s income, the comment periods and our responses to and providers of the beneficiary’s State must develop a tracking those additional comments are as liability, and notifying them when a mechanism and not rely on the so-called follows: beneficiary has reached the aggregate ‘‘shoebox’’ method that puts the burden Comment: Several commenters maximum for a period. In § 447.68(e), on families to track cost sharing. requested that the Recovery Act’s we proposed that the State plan must Specifically, a State must describe in its exclusion of premiums and cost sharing specify the process of publicizing the Medicaid State plan the methodology it for Indians under certain circumstances schedule of cost sharing charges. In will use to identify beneficiaries who be broadened to exclude from premiums § 447.68(f), we proposed that the State are subject to premiums or cost sharing and cost-sharing all Indians receiving plan must explain the methodology the for specific items or services and track any Medicaid service from any State would use to ensure that the their incurred premiums and cost Medicaid provider. aggregate amount of premiums and cost sharing, in order to inform beneficiaries Response: The Recovery Act specifies sharing imposed for all individuals in and providers of beneficiaries’ liability under what circumstances States are the family does not exceed 5 percent as and notify beneficiaries and providers required to exclude Indians from applied during the monthly or quarterly when individual beneficiaries have payments of premiums and cost sharing period specified by the State. In incurred the 5 percent limit on family under sections 1916 and 1916A of the addition, at § 447.68(g), we proposed out-of-pocket expenses and are no Act, and we are not authorized to that the State plan specify how notice is longer subject to further cost sharing for expand on these statutory provided of the time frame and manner the remainder of the family’s current circumstances. In this revised final rule of required cost sharing and the at § 447.66(a)(7), we are specifying that monthly or quarterly cap period. Such consequences for an individual who States may not impose alternative methods must assure that families’ cost does not pay. premiums upon an Indian who is sharing will not exceed the statutory In the November 25, 2008 final rule, eligible to receive or has received an limits. Ideally, for ease of administration we accepted the provisions of the item or service furnished by an Indian and accuracy, States will use automated proposed rule without any substantive health care provider or through referral systems to track these cost sharing change. under contract health services under amounts. Specific comments to this section authorities for serving Indians. This submitted during the reopened We encourage States to track such language would not preclude States comment periods and our responses to costs through their Medicaid from excluding from premiums those additional comments are as Management Information System individuals based on other criteria that follows: (MMIS). Some States already use MMIS could have the effect of broadening the Comment: Several commenters for this purpose. To the extent that they circumstances in which Indian requested that States be required to do so, enhanced Federal funding is populations would be exempt from describe in their State plans a method available for development and operation premiums. We add at § 447.66(c) to by which States identify for Medicaid of system improvements. clarify that nothing in this subsection providers which beneficiaries, services, As part of our review of State plan shall be construed as restricting the and items are exempted from cost amendments and our ongoing reviews application of any other limitations on sharing, in accordance with § 447.70 and audits of State Medicaid programs, the imposition of premiums that may and § 447.71. Commenters also stated we will review how States that impose apply to an individual receiving that States should be required to costs that could exceed the 5 percent Medicaid who is an Indian. And, at provide accurate and updated limit meet these requirements, to assure § 447.70(e) we specify that States may information to providers about their compliance with the statutory and exempt additional individuals, items, or appropriate cost sharing for each regulatory requirements. We will also services from cost sharing. We beneficiary. One commenter stated that share best practices among States to anticipate that additional exemptions, if States should be required to promote effective and efficient tracking needed to protect Indian populations, demonstrate, before implementing systems. We note that States that design will be an issue raised in the tribal alternative premiums and cost sharing, their cost sharing rules so that costs consultation process. that adequate State administrative cannot exceed the 5 percent limit need systems are in place to protect families not develop a tracking system. Alternative Copayments, Coinsurance, from exceeding the cost sharing limits. Deductibles, or Similar Cost Sharing Other commenters requested that States, General Alternative Premium Charges: State Plan Requirements rather than beneficiaries or managed Protections (§ 447.66) (§ 447.68) care organizations, be required to track In the February 22, 2008 proposed In the February 22, 2008 proposed beneficiaries’ aggregate premiums and rule at § 447.66(a), we proposed to rule at § 447.68(a), we proposed that the cost sharing, to assure that 5 percent of implement statutory requirements of State plan describe the group or groups a family’s income is not exceeded. section 1916A(b)(3)(A) of the Act that of individuals that may be subject to Another commenter stated that CMS limit the application of alternative such cost sharing. We further proposed should require States to implement premiums under section 1916A by in § 447.68(b) that the State plan must automated systems to support the requiring that States exclude certain describe the methodology used to tracking and computing of beneficiaries’ classes of individuals from the determine family income, including the copayments at the point-of-sale and to imposition of premiums. In addition, we period and periodicity of those adopt policies that support electronic proposed at § 447.66(b) that a State may determinations. We also proposed in identification of non-preferred drugs. exempt additional classes of individuals § 447.68(c) that the State plan describe The commenter also stated that States from premiums. the item or service for which the charge must be required to make information

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electronically available at the point-of- remainder of the benefit period. The governs the contents and format of sale regarding a beneficiary’s required MCOs will notify their pharmacy and electronic transactions providing cost sharing and whether the ambulance transportation providers to information from a State’s MMIS, beneficiary’s family has met its waive the family’s copayments through including an electronic transaction sent applicable monthly or quarterly a specified date. by a State Medicaid program in aggregate limit. In addition, the • Another State uses MMIS to track response to an enrolled provider’s commenter stated that CMS should and enforce cost sharing limits. The electronic request for information make an enhanced 90 percent system calculates a family’s quarterly related to a beneficiary’s Medicaid administrative match available to States out-of-pocket maximum based on the eligibility (for example, information that implement such a system. family’s income, and tracks the family’s about a beneficiary’s cost sharing Response: We agree with many of cost sharing payments associated with responsibilities and payments). MMIS these comments that beneficiaries submitted claims. If a family’s system changes and operations are should not bear the full burden of maximum is reached, an indicator is subject to an enhanced Federal accounting for aggregate cost sharing changed in MMIS and providers are matching rate. As part of our review of maximums. In this revised final rule, we alerted as part of eligibility verification State plan amendments and our ongoing have thus revised paragraph (d) of that the family is not subject to reviews and audits of State Medicaid § 447.68 to specify that a State must copayments. programs, we will review how States describe in its Medicaid State plan the • Another State calculates each meet the premium and cost sharing methodology it will use to identify family’s cost sharing limit as part of the requirements, to assure their beneficiaries who are subject to eligibility determination process, compliance with the statutory and premiums or to cost sharing for specific records this information in the regulatory requirements. We will also items or services and, if cost sharing eligibility system, copies the State’s share best practices to help other States could exceed 5 percent of family benefits administrator, and informs the learn about effective and efficient ways income, to track beneficiaries’ incurred family of the limit in the eligibility to track cost sharing. premiums and cost sharing in order to approval notice. It encourages families inform beneficiaries and providers of to track their payments, but it also has General Alternative Cost Sharing beneficiaries’ liability and to notify the benefits administrator track families’ Protections (§ 447.70) beneficiaries and providers when payments and notify the State if a family In the February 22, 2008 proposed individual beneficiaries have reached reaches its maximum. Families can also rule, we proposed that State plans may the five percent limit on family out-of- call the State to check on the amount of not impose alternative cost sharing pocket expenses to assure that costs do out-of-pocket expenses they have under section 1916A(a) of the Act for not exceed the 5 percent statutory limit. incurred. If the maximum is reached, certain services including emergency Also, a State is required to describe in the State moves the family to a no-cost services and family planning services its State plan the State’s methods for benefits plan for the remainder of their and supplies. We also proposed that assuring that providers and beneficiaries plan year and notifies the family of this State plans could not impose cost are effectively informed of cost sharing change in writing. sharing for preferred drugs within a requirements in the State plan, in • Another State has its eligibility and class for the same categories of accordance with § 447.68(d). States enrollment broker inform families of individuals. We proposed that the State must be mindful of the need for clear, their out-of-pocket limits in the letter may exempt additional individuals or non-technical explanations and that notifying them of enrollment in a health services from cost sharing. Also, we accommodations must be made for plan. It also notifies the health plan. The proposed that cost sharing applicable to individuals for whom English is not the health plan tracks families’ cost sharing a preferred drug be charged for a non- first language. payments. If the limit is reached, the preferred drug if the prescribing For example, one State informs health plan notifies the family by letter physician determines that the preferred providers and members (beneficiaries) and annotates the family’s file in the drug would not be as effective for the of allowable cost sharing amounts via electronic claims system in order to individual or would have adverse provider updates and a member notify providers that no further cost effects for the individual or both. We Enrollment and Benefits booklet. sharing is required. further proposed that such overrides • Another State conducts public meetings Another State has its system track meet the State’s criteria for prior and sends a letter to each beneficiary for families’ out-of-pocket payments, and authorization and be approved through whom cost sharing is applicable. stops deducting the copayment amount the State’s prior authorization process. While this rule requires States from the allowed amount on a In the November 25, 2008 final rule, imposing cost sharing that could exceed provider’s claim if a family reaches its we accepted the provisions of the the 5 percent statutory cap to have a limit. The system notes on an proposed rule without substantive methodology to track costs and to assure Explanation of Benefits (EOB) when a changes. that costs do not exceed the 5 percent family reaches its maximum, and Specific comments to this section limit, the rule does not require one families may share the EOB with submitted during the reopened particular system for tracking. Some of providers. Such a notice is also comment periods and our responses to the methods that States are using to included in the point-of-sale system those additional comments are as track families’ incurred premiums and used by pharmacists. Monthly reports follows: cost sharing and to assure that they do are generated to track copayments. Comment: One commenter not exceed the aggregate maximum of 5 We are requiring that States describe recommended that the rule define the percent of the family’s income include: their method of tracking when they preventive services which are excluded • On State has its premium collection impose cost sharing that could exceed from alternative cost-sharing (see vendor track premium payments. Its the 5 percent statutory limit, and are § 447.70(a)(2)), such as by using the MCPs track enrollees’ copayments. If a recommending that, whenever possible, definition in the American Academy of family reaches its aggregate maximum, they employ automated systems to do Pediatrics Bright Futures guidelines. the premium vendor will waive so. The Health Insurance Portability and Response: We agree. In this revised premiums and suspend invoicing for the Accountability Act of 1996 (HIPAA) final rule, we revised § 447.70(a)(2) to

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specify that, at the minimum, the amount, in order to protect vulnerable In the November 25, 2008 final rule, preventive services listed at § 457.520 populations such as pregnant women. we revised § 447.74(b) to specify that must be excluded from cost sharing for Response: While we understand the the copayment amount for services children younger than 18 years old, underlying concerns of commenters, we provided by an MCO may not exceed which reflect the well baby and well are not authorized by the statute to $3.40 per visit for Federal FY 2009 child care and immunizations described generally preclude alternate cost sharing when the State does not have a by the Bright Futures guidelines of the under section 1916A(c) of the Act for comparable fee-for-service system. We American Academy of Pediatrics. These the services listed at § 447.70(a). The added a higher copayment limit of $5.70 guidelines are used for well baby and protections under section for Federal FY 2009 for services well child care services in the CHIP 1916A(b)(3)(B)(vii) of the Act are provided by an MCO for Medicaid program. They provide an explanation ‘‘subject to the succeeding provisions of expansion optional targeted low-income of the periodicity schedule this section’’ which include the special children in that circumstance. In recommended by the American provisions concerning alternate cost addition, we revised the methodology Academy of Pediatrics for preventive sharing under section 1916A(c) of the for updating the maximum nominal visits and appropriate immunizations Act. As a result of our review of these amounts for Medicaid each October 1 by for children. The referencing of such a comments, however, we realized that rounding to the next highest 5-cent schedule allows for flexibility in the we had not integrated the protections at increment rather than 10-cent definition of preventive services to section 1916A(c)(3) of the Act into these increment, to be consistent with the reflect the most current medical practice regulations, and thus we have integrated Medicare Part D program. standards. States are permitted to into the revised final rule at § 447.70(d) Specific comments to this section exempt preventive services beyond the provision that drugs identified as submitted during the reopened those described in the Bright Futures non-preferred drugs are subject to the comment periods and our responses to guidelines. same exclusions and limits for cost- those additional comments are as follows: Comment: Several commenters sharing as preferred drugs if the Comment: As we discussed above, recommended that the entire package of individual’s prescribing physician several commenters recommended that family planning services and supplies determines that the preferred drug for the separate $5.70 per visit maximum described and mandated at section treatment of the same condition either co-payment added in the final rule 1905(a)(4)(C) of the Act be excluded would be less effective for the published on November 25, 2008, be from cost sharing, as required by individual or would have adverse deleted for Medicaid expansion optional sections 1916A(b)(3)(B)(vii) and effects for the individual or both. We targeted low income children in 1916(a)(2)(D) of the Act, so that even deleted as unnecessary the additional managed care plans when a State does nominal cost sharing is not permitted requirement that the State’s criteria for not have a fee-for-service system. for non-preferred family planning drugs prior authorization, if any, must be met. Response: We are accepting this (for example, contraceptive drugs not on comment for the reasons discussed a State’s preferred drug list) and cost Alternative Premium and Cost Sharing Exemptions and Protections for above. The result is that the same per sharing does not otherwise distinguish visit maximum will apply to all between family planning methods. Individuals With Family Incomes Above 100 Percent but at or Below 150 Percent Medicaid managed care enrollees when Response: While we agree with the of the FPL (§ 447.72) the State does not have a fee-for-service concerns of commenters, we are not system. authorized by the statute to generally In the February 22, 2008 proposed preclude alternate cost sharing under rule, we proposed at § 447.72(a) that the Alternative Premium and Cost Sharing section 1916A(c) of the Act for family State plan exclude individuals with Protections for Individuals With Family planning drugs. The protections under family incomes above 100 percent but at Incomes Above 150 Percent of the FPL section 1916A(b)(3)(B)(vii) of the Act are or below 150 percent of the FPL from (§ 447.74) ‘‘subject to the succeeding provisions of the imposition of premiums. We also In the February 22, 2008 proposed this section’’ which include the special proposed at § 447.72(b) that cost sharing rule at § 447.74(a), we proposed that a provisions concerning alternate cost for those individuals under the State State plan may impose premiums upon sharing under section 1916A(c) of the plan not exceed 10 percent of the individuals with family income above Act. But we believe it is reasonable to payment the State Medicaid agency 150 percent of the FPL, subject to the require that States have a consistent makes for that item or service, with the aggregate limit on premiums and cost treatment of family planning drugs. In exception that cost sharing not exceed sharing at § 447.78. We also proposed at this revised final rule, we have revised the nominal cost sharing amount for § 447.74(b) that cost sharing for those § 447.70(a)(7) to clarify that the non-preferred drugs or twice the individuals under the State plan not exclusion for family planning services nominal cost sharing amount for non- exceed 20 percent of the payment the and supplies encompasses emergency services furnished in a State Medicaid agency makes for that contraceptives and other prescription hospital emergency department. In the item or service. In the case of States that drugs for which the State claims or case of States that do not have fee-for- do not have fee-for-service payment could claim the Federal matching rate service payment rates, we proposed that rates, we proposed that any copayment available under section 1903(a)(5) of the any copayment imposed by a State for that the State imposes for services Act for family planning services and services provided by an MCO may not provided by an MCO may not exceed supplies. exceed $5.20 for FY 2007. In addition, $5.20 for FY 2007. In addition, we Comment: Several commenters we proposed at § 447.72(c) that proposed at § 447.74(c) that aggregate requested that the rule be made aggregate premiums and cost sharing for cost sharing for individuals whose consistent with section 1916A(c)(2)(B) individuals whose family income family income exceeds 150 percent of of the Act by limiting alternative cost exceeds 100 percent, but does not the FPL not exceed the maximum sharing for non-preferred prescription exceed 150 percent of the FPL, not permitted under § 447.78(a). drugs for the items or services listed at exceed the 5 percent aggregate In the November 25, 2008 final rule, § 447.70(a) to no more than the nominal maximum permitted under § 447.78(a). we revised § 447.74(b) to specify that

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the copayment amount for services are submitted to CMS, no later than 60 reference sections 1916A(c) and (e) of provided by an MCO may not exceed days prior to the effective date. the Act in reference to the 5 percent $3.40 per visit for Federal FY 2009. We Response: We agree that providers aggregate limit, we read these provisions added a higher limit for Medicaid need adequate time to adjust their together with the provision at section expansion optional targeted low-income procedures and protocols to incorporate 1916A(a)(2)(B) to establish a 5 percent children of $5.70 for Federal FY 2009. changes, and that beneficiaries and their aggregate limit regardless of which In addition, we revised the methodology advocates need time to prepare for statutory option the State selects. To for updating the nominal amounts for changes in cost sharing. Such notice is read these provisions in isolation would Medicaid each October 1 by rounding to consistent with administration of the frustrate the statutory purpose and the next highest 5-cent increment rather State plan in the best interests of permit a State to effectively impose than 10-cent increment, to be consistent beneficiaries. In this revised final rule, aggregate cost sharing far in excess of 5 with the Medicare Part D program. we added a new paragraph (c) to percent of family income by using the Specific comments to this section § 447.76 to require a State to provide the two statutory cost sharing options submitted during the reopened public with advance notice and cumulatively. Such a result would be an comment periods and our responses to reasonable opportunity to comment in a inadequate beneficiary protection, and those additional comments are as form and manner provided under would not achieve the statutory purpose follows: applicable State law prior to submitting of the aggregate limit. The clear Comment: One commenter stated that for CMS approval a Medicaid State plan statutory purpose is to limit family cost the cost sharing permitted for higher amendment (SPA) to establish sharing obligations to 5 percent of income individuals would be excessive. alternative premiums or cost sharing family income and that purpose can be The commenter stated that for under section 1916A of the Act or to achieved only if the aggregate limit individuals with incomes above 150 modify substantially an existing plan for applies to all cost sharing imposed percent FPL, the cost sharing amount alternative premiums or cost sharing. under the State plan for all family would increase to 20 percent. The Also, the State must submit members, including cost sharing commenter also recommended that cost documentation with the SPA to imposed under section 1916. Thus, we sharing be capped at a reasonable demonstrate that this requirement was believe that Congress intended the three amount. met. This requirement is similar to the aggregate limit provisions to establish a Response: Cost sharing limits are requirements at § 447.205 about public single aggregate limit for cost sharing specified in this rule as required by notice prior to submitting a Medicaid under either section 1916 or 1916A section 1916A of the Act. However, SPA revising providers’ payment rates regardless of the underlying authority because a 20 percent cost sharing for services and at § 457.65(b)–(d) about for the cost sharing. Applying all cost amount can be difficult or even public notice prior to submitting a CHIP sharing under the State plan to the impossible for Medicaid beneficiaries to SPA eliminating or restricting eligibility aggregate limit is also consistent with pay given their limited incomes, in this or benefits or implementing or simplicity of administration and the revised final rule at § 447.62(b)(3), we increasing cost sharing charges or the best interests of beneficiaries as required clarify that States have the option to cumulative cost sharing maximum. by section 1902(a)(19) of the Act Section 447.76 also requires States to impose premiums and cost sharing that because it eliminates any need to make a public schedule with cost are below the maximum levels distinguish between the statutory sharing information available to permitted under this subpart. authority for any particular cost sharing. beneficiaries, applicants, providers, and Public Schedule (§ 447.76) the general public. Therefore, the public At § 447.78(b) of the proposed rule, In the February 22, 2008 proposed schedule must be changed as necessary we proposed that for individuals with rule, we proposed at § 447.76(a) that to remain current. In this revised final family income at or below 100 percent State plans provide for schedules of rule, we modified § 447.76 (b)(1), to of the FPL the aggregate amount of cost premiums and cost sharing and clarify that beneficiaries must receive sharing under sections 1916 and 1916A specified the information contained on advance written notice when their of the Act not exceed 5 percent of a such schedules. In addition, at premiums, cost sharing charges, or family’s income for the monthly or § 447.76(b), we proposed that the State aggregate limits are revised. quarterly period, as required by section make the public schedule available to 1916A(a)(2)(B) of the Act, and Aggregate Limits on Alternative consistent with the reading above. We beneficiaries at the time of enrollment Premiums and Cost Sharing (§ 447.78) and reenrollment, applicants, all also proposed at § 447.78(c) that family participating providers, and the general In the February 22, 2008 proposed income should be determined in a public. rule at § 447.78(a), we proposed that for manner for that period as specified by In the November 25, 2008 final rule, individuals with family income above the State in the State plan. We clarified we added § 447.76(a)(7) to specify that 100 percent of the FPL the aggregate that States may use gross income to the State must make available either a amount of premiums and cost sharing compute family income and that they list of preferred drugs or a method to imposed under sections 1916 and may use a different methodology for obtain such a list upon request. 1916A of the Act not exceed 5 percent computing family income for purposes Specific comments to this section of a family’s income for a monthly or of determining the aggregate limits than submitted during the reopened quarterly period, as specified in the for determining income eligibility. comment periods and our responses to State plan. We received no comments In the November 25, 2008 final rule, those additional comments are as questioning this proposal, and received we revised § 447.78(c) to include the follows: at least one comment supporting the phrase, ‘‘including the use of such Comment: One commenter requested broad reach of this language. Thus, we disregards as the State may provide.’’ that States give adequate notice to included this language in the November Specific comments to this section pharmacy providers, beneficiaries, and 25, 2008 final rule. While sections submitted during the reopened the public of changes to cost-sharing 1916A(b)(1)(B)(ii) and (2)(A) of the Act comment periods and our responses to requirements when State plan for families with income above 100 those additional comments are as amendments implementing the changes percent of the FPL only specifically follows:

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Comment: One commenter the non-emergency medical condition, or part. This would, at a minimum, recommended that the total aggregate must first provide the individual with include the required medical screening amount of cost sharing for individuals the name and location of an available under current regulations at § 489.24, in a family be limited to 2 percent of the and accessible alternate non-emergency including circumstances under which family’s income. services provider, information that the services are required to stabilize the Response: We are unable by rule- alternate provider can provide the patient. making to revise the total aggregate limit services with imposition of no or lesser Comment: One commenter of 5 percent specified in statute at cost sharing, and a referral to coordinate recommended that copayments for non- sections 1916A(b)(1)(B)(ii) and scheduling of treatment. Finally, at emergency use of hospital emergency 1916A(b)(2)(A) of the Act. However, in § 447.80(b)(3), we proposed that a departments not be imposed if Medicaid this revised final rule, we clarify at provider may reduce or waive cost beneficiaries are using the emergency § 447.62(b)(3) that States have the sharing imposed under section 1916A of room due to lack of access to primary option to impose premiums and cost the Act on a case-by-case basis. care physicians or other alternative care. sharing below the maximum levels In the November 25, 2008 final rule, Response: We agree that this is what under this subpart. Also, we recognize we accepted the provisions of the the statute requires. The requirements at that some families include children in proposed rule without substantive § 447.80(b)(2) are intended to assure that Medicaid and CHIP, so we encourage changes. alternative copayments for non- States to consider implementing a 5 Specific comments to this section emergency use of hospital emergency percent limit on families’ aggregate submitted during the reopened departments are not imposed if premiums and cost sharing in both comment periods and our responses to alternative non-emergency services Medicaid and CHIP. those additional comments are as providers are not available and Comment: One commenter stated that follows: accessible in a timely manner to treat families should be permitted to request Comment: One commenter the individual’s medical condition. a change in the aggregate limit on their recommended that States not be given Comment: Several commenters cost sharing when the household’s the option to deny treatment for recommended that § 447.80(b) specify income changes. Medicaid beneficiaries or terminate that giving providers the discretion to Response: We had not previously them from Medicaid eligibility if they waive mandatory copayments on a case- considered this issue, and we agree with are unable to pay a premium or by-case basis may not have the effect of the commenter. In this revised final copayment. Also, the commenter discriminating against individuals who rule, we have modified § 447.78(c) to recommended that States be encouraged do not speak English or against require that State plans include a to use alternative payment schedules. individuals on the basis of race, color, process for individuals to request a Response: Under section 1916A(d) of national origin, or disability (title VI of reassessment of the family’s aggregate the Act, States have the flexibility to the Civil Rights Act of 1964, Americans limit if the family’s income is reduced take certain specified actions in the with Disabilities Act, 42 CFR 430.2(b), or if eligibility is being terminated due event of nonpayment of premiums, and 45 CFR Part 80). to nonpayment of a premium. may allow providers to condition the Response: Existing HHS regulations delivery of services on payment of the under these civil rights and other Enforceability of Alternative Premiums alternative cost sharing. The statute statutes, including section 504 of the and Cost Sharing (§ 447.80) expressly permits States and providers Rehabilitation Act, already prohibit both In the February 22, 2008 proposed to use such enforcement flexibly, to States and entities that receive Medicaid rule at § 447.80(a), we proposed to respond to individual circumstances. funding from taking discriminatory permit a State to condition Medicaid For example, a State may waive actions. The HHS Office for Civil Rights eligibility for individuals in a specified premiums on a case-by-case basis due to (responsible for Departmental group or groups upon prepayment of hardship. Also, providers may reduce or enforcement of most civil rights laws) premiums, to terminate the eligibility of waive cost sharing on a case-by-case and the Department of Justice (which an individual for failure to pay after 60 basis. also has responsibility for enforcement days or more, and to waive payment in Comment: One commenter asked who of certain civil rights laws, including the any case where requiring the payment would want to decide if an emergency Americans with Disabilities Act), are would create undue hardship. At was ‘‘serious enough’’ so a copayment available to investigate any questions or § 447.80(b), we proposed that a State would not be charged. complaints as to illegal discrimination permit a provider, including a Response: We clarify here that we under these statutes and the pharmacy, to require an individual to interpret an emergency to include implementing regulations. pay cost sharing imposed under section circumstances consistent with the Comment: A commenter agreed with 1916A of the Act as a condition of ‘‘prudent layperson’’ standard set forth the rule that providers should be able to receiving an item or service. However, in section 1932(b)(2) of the Act and decide when to reduce or waive cost at § 447.80(b)(1), we specified that a § 438.114(a). Under that standard, an sharing on a case-by-case basis. If a State provider, including a pharmacy or emergency service is one needed to significantly increases cost sharing, the hospital, may not require an individual evaluate or stabilize an emergency pharmacy provider, rather than the whose family income is at or below 100 medical condition, which is a condition State, must decide whether to condition percent of the FPL to pay the cost manifesting itself by acute symptoms of rendering pharmacy services on the sharing charge as a condition of sufficient severity (including severe receipt of full payment of cost-sharing receiving the item or service. In pain) such that a prudent layperson, from the beneficiary. Otherwise, the addition, at § 447.80(b)(2), we proposed who possesses an average knowledge of providers will likely be the ones paying that a hospital that has determined after health and medicine, could reasonably the higher charges, especially in States an appropriate medical screening under expect the absence of medical attention where pharmacy providers are quite section 1867 of the Act that an to result in jeopardy to health (including often unable to collect the current individual does not have an emergency the health of an unborn child), serious nominal co-payments. medical condition, before it can require impairment to bodily functions, or the Response: We agree. This policy is payment of the cost sharing and treat serious dysfunction of any bodily organ consistent with the statute and the

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revised final rule at § 447.82(a). If a Comment: One commenter under certain circumstances effective State elects the option permitting recommended that States not be July 1, 2009. Also, the provisions providers to require a beneficiary to pay required to reduce payments to respond to public comments received an allowable cost sharing charge as a providers by the required copayments if on these new statutory requirements condition for receiving an item or the provider waives or reduces the cost during the March 27, 2009 extended service, the provider has the discretion sharing amounts. Another commenter comment period on the November 25, to reduce or waive the application of stated that the DRA cost sharing is 2008 final rule. cost sharing on a case-by-case basis. In tantamount to a hidden rate reduction Section 5006(a) of the Recovery Act this revised final rule, we added a new for MCOs and other providers. Since amends sections 1916 and 1916A of the paragraph (c) to § 447.82 requiring cost sharing is deducted from providers’ Act, to exempt Indian applicants and States to identify for providers, ideally payments, MCOs must decide whether beneficiaries from Medicaid premium through the use of automated systems, to absorb high administrative costs to and cost sharing requirements under whether cost sharing for a specific item track cost sharing or to forego the certain circumstances and to assure that or service may be imposed on an collection of the fees. Also, commenters Indian health care providers, and health individual beneficiary and whether the requested that MCOs be required to pay care providers providing contract health provider may require the beneficiary, as providers in full when providers decide services (CHS) under a referral from an a condition for receiving the item or not to collect cost sharing from Indian health care provider, will receive service, to pay the cost sharing charge. beneficiaries; otherwise, providers will full payment. Premiums and cost Comment: A commenter advised that leave the network. sharing exemptions for Indians under the rule should provide guidance for Response: The requirement that States CHIP are not affected. The provisions how hospitals are to implement cost not reimburse providers for unpaid cost took effect on July 1, 2009. sharing for non-emergency services sharing is a longstanding Medicaid Specifically, the Recovery Act: rendered in a hospital emergency policy set forth at § 447.57, and is • Exempts Indians from payments of department without violating the consistent with the overall policy set enrollment fees, premiums, or similar Emergency Medical Treatment and forth at § 447.15, that the Medicaid chargesif they either are eligible to Active Labor Act (EMTALA), which agency must limit participation in the receive or have received an item or requires hospitals to screen patients Medicaid program to providers who service furnished by an Indian health who request an emergency examination accept, as payment in full, the amounts care provider or through referral under and not delay treatment to stabilize a paid by the agency plus any deductible, CHS. patient in order to inquire about the coinsurance or copayment required by • Exempts Indians from payment of a individual’s method of payment or the State plan to be paid by the deductible, coinsurance, copayment, or insurance status. individual. There is no indication of any similar charge for any item or service Response: We are revising intent to change this longstanding covered by Medicaid if the Indian is § 447.80(c)(1) to state that nothing in policy in the DRA provisions that added furnished the item or service directly by paragraph (b)(2) relating to alternate cost section 1916A to the Act. an Indian health care provider or sharing for non-emergency services in Consistent with such requirements, through referral under CHS. hospital emergency departments shall section 5006(a) of the Recovery Act • Prohibits any reduction of payment be construed to limit a hospital’s added section 1916(j)(1)(B) of the Act to that is due under Medicaid to an Indian obligations with respect to screening require that payment due to an Indian health care provider or a health care and stabilizing treatment of an health care provider or a health care provider through referral under CHS for emergency medical condition under provider through referral under contract directly furnishing an item or service to EMTALA, which is codified at section health services for directly furnishing an an Indian. The State must pay these 1867 of the Act relating to EMTALA, item or service to a Medicaid-eligible providers the full Medicaid payment and is the basis for the regulation at Indian not be reduced by the amount of rate for furnishing the item or service. § 489.24. any enrollment fee, premium, or similar Their payments may not be reduced by Restrictions on Payments to Providers charge, or any deductible, copayment, the amount of any enrollment fee, (§ 447.82) cost sharing, or similar charge that premium, deductible, copayment, or would otherwise be due. Each State similar charge that otherwise would be In the February 22, 2008 proposed through its regular administrative and due from the Indian. rule at § 447.80(a), we proposed to political processes, in consultation with Definitions require States to reduce the amount of the Tribes as required by section 5006(e) the State’s payments to providers by the of the Recovery Act, must decide how In administering the Recovery Act’s amount of beneficiaries’ cost sharing to implement this requirement and how cost sharing provisions related to obligations, regardless of whether the to assure that providers are paid in full Indians, the following definitions provider successfully collects the cost under such circumstances. apply— sharing. We noted in the rule’s preamble • Indian health care provider means that States have the ability to increase III. Provisions of the Revised Final Rule a health care program operated by the total State plan rates to providers to In this revised final rule, we are Indian. maintain the same level of State adopting the provisions as set forth in • Health Service (IHS) or by an Indian payment when cost sharing is the November 25, 2008 final rule, Tribe, Tribal Organization, or Urban introduced. subject to the following changes. Indian Organization (otherwise known In the November 25, 2008 final rule, as an I/T/U) as those terms are defined we accepted the provisions of the A. Implementation of Section 5006(a) of in section 4 of the Indian Health Care proposed rule without change. the Recovery Act Improvement Act (25 U.S.C. 1603). Specific comments to this section The following provisions are open for • Indian means any individual submitted during the reopened public comment. The provisions defined at 25 U.S.C. 1603(c), 1603(f), or comment periods and our responses to implement and interpret section 5006(a) 1679(b), or who has been determined those additional comments are as of the Recovery Act, which exempts eligible as an Indian, pursuant to 42 follows: Indians from premiums and cost sharing CFR 136.12. This means the individual:

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(1) Is a member of a Federally- Requirements and Options (§ 447.51) Indian health care provider or through recognized Indian tribe; We added a new paragraph (a)(2) that referral under CHS. (2) resides in an urban center and exempts Indians from payments of Restrictions on Payments to Providers meets one or more of the four criteria: enrollment fees, premiums, or similar (§ 447.82) (a)Is a member of a tribe, band, or other charges if they are eligible to receive or We added a new paragraph (b) to organized group of Indians, including have received an item or service those tribes, bands, or groups furnished by an Indian health care specify that payment under Medicaid terminated since 1940 and those provider or through referral under CHS. due to an Indian health care provider or recognized now or in the future by the a health care provider through referral State in which they reside, or who is a Applicability; Specification; Multiple under CHS for furnishing an item or descendant, in the first or second Charges (§ 447.53) service directly to an Indian may not be degree, of any such member; (b) is an We added a new paragraph (b)(6) to reduced by the amount of any Eskimo or Aleut or other Alaska Native; exclude from cost sharing under enrollment fee, premium, or similar (c) is considered by the Secretary of the Medicaid all items and services charge, or any deductible, copayment, Interior to be an Indian for any purpose; furnished to an Indian directly by an cost sharing, or similar charge that or (d) is determined to be an Indian Indian health care provider or through otherwise would be due. under regulations promulgated by the referral under CHS. B. Additional Changes to the Medicaid Secretary; Restrictions on Payments to Providers Regulations in Response to Public (3) is considered by the Secretary of (§ 447.57) Comments Requirements and Options the Interior to be an Indian for any (§ 447.51) purpose; or We added a new paragraph (c) to We revised paragraphs (a) and (c) to (4) is considered by the Secretary of specify that payment under Medicaid clarify the requirements for consistency Health and Human Services to be an due to an Indian health care provider or with section 1916 of the Act, to specify Indian for purposes of eligibility for a health care provider through referral the categorically needy populations for Indian health care services, including as under CHS for directly furnishing an which the State Medicaid agency may a California Indian, Eskimo, Aleut, or item or service to an Indian may not be impose an enrollment fee, premium, or other Alaska Native. reduced by the amount of any similar charge in accordance with The IHS administers the CHS Program enrollment fee, premium, or similar section 1916(c), (d), (g), or (i) of the act. for the provision of services to Indians charge or any deductible, copayment, when those services are not available at cost sharing, or similar charge that Applicability; Specification; Multiple IHS or Tribal facilities. Any IHS-eligible otherwise would be due. Note that there Charges (§ 447.53) is no exemption for cost sharing, such Indian Medicaid beneficiary who We revised the definition of receives a referral, including any as deductibles, coinsurance or co- payments, on services rendered to ‘‘emergency services’’ in paragraph (b)(4) authorization for payment, by an IHS or to cite the definition which includes the Tribal provider to an outside provider eligible individuals at non-Indian health care providers where there was not ‘‘prudent layperson’’ standard at section for contract health service is eligible for 1932(b)(2) of the Act and § 438.114(a). the exemption from cost sharing for that referral or authorization through CHS as service. States will need to educate non- defined below. Maximum Allowable and Nominal Contract health service means any IHS providers about such documents, so Charges (§ 447.54) health service that is (1) delivered based that providers will know to waive cost on a referral by, or at the expense of, an We revised paragraph (a)(1) and sharing requirements for referrals Indian health program; and (2) provided (a)(3)(ii) to clarify the requirements for through CHS for which payment may be by a public or private medical provider consistency with section 1916 of the made by Medicaid. States must inform or hospital that is not a provider or Act. Also, we revised the example in providers, ideally through the use of hospital of the Indian health program. paragraph (a)(1) for a 6-month automated systems, whether an certification period rather than a 3- individual is exempted from premiums General Alternative Premium month period for consistency with or cost sharing. Reference materials Protections (§ 447.66) States’ practices. about CHS may be accessed on the IHS We added a new paragraph (a)(7) to We also revised paragraph (a)(4), in Web page at: http://www.ihs.gov/ exclude Indians from payments of response to public comments, to delete NonMedicalPrograms/chs/. enrollment fees, premiums, or similar a higher maximum copayment of $5.70 State Medicaid programs must consult charges if they are eligible to receive or per visit for services provided by an with the IHS, Tribes, Tribal have received an item or service MCO, when the State does not have a Organizations, and Urban Indian furnished by an Indian health care fee-for-service delivery system, for Organizations within the State to provider or through referral under Medicaid expansion optional targeted determine what documents the Indian contract health services. low income children for whom health care providers will use for In addition, we added a new enhanced Federal match is paid under exemption of Indians from enrollment paragraph (c) to specify that a State may section XXI of the Act. Since these are fees, premiums, or other similar charges apply additional limitations on Medicaid-eligible children, they will be and from deductibles, coinsurance, imposition of premiums that may apply subject to the Medicaid limit for such copayments, or similar charges for to an individual receiving Medicaid coverage of $3.40 per visit, rather than referrals to providers through the CHS who is an Indian. the limit imposed for separate CHIP Program. programs under title XXI. General Alternative Cost Sharing In addition, we revised paragraph (b) Cost Sharing: Basis and Purpose Protections (§ 447.70) to correct a citation to § 431.57. Also, (§ 447.50) We added a new paragraph (a)(10) to the paragraph was revised for We added a new paragraph (b) with exclude from cost sharing under consistency with sections 1916(a)(3) and definitions for ‘‘Indian’’ and ‘‘Indian Medicaid all items and services 1916(b)(3) of the Act that the Secretary health care provider.’’ furnished to an Indian directly by an of Health & Human Services will only

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approve a waiver of the requirement We revised paragraph (d) to specify Medicaid eligibility option offered by that cost sharing charges must be that a State must describe in its the Family Opportunity Act. limited to a nominal amount if the State Medicaid State plan the methodology it We revised paragraph (a)(11) establishes to the Secretary’s satisfaction will use to identify beneficiaries who (previously (a)(1)(x)) and paragraph (c) that alternative sources of are subject to premiums or cost sharing (previously (b)) to specify that drugs not nonemergency, outpatient services are for specific items or services and, if cost identified by the State’s Medicaid actually available and accessible to sharing could exceed five percent of program as non-preferred drugs within Medicaid beneficiaries in a timely family income, to track beneficiaries’ a class are subject to the same manner. incurred premiums and cost sharing exclusions and limits for cost sharing as through a tracking system developed by drugs identified by the State as Standard Co-Payment (§ 447.55) the State, in order to inform preferred drugs within a class. We revised paragraph (b) to correct a beneficiaries and providers of We revised paragraph (b) (previously citation to § 447.54(a) and (c). beneficiaries’ liability and notify (a)(2)) for consistency with section beneficiaries and providers when 1916A(e)(2)(B) of the Act to specify that Alternative Premiums and Cost Sharing: individual beneficiaries have reached cost sharing of no more than the Basis, Purpose and Scope (§ 447.62) the five percent limit on family out-of- nominal amounts defined in § 447.54 We revised paragraph (a) to clarify the pocket expenses to assure that costs do may be imposed on the exempt requirements for consistency with not exceed the five percent statutory populations specified in paragraph (a) of section 1916A of the Act. limit. this section for nonemergency services We also revised paragraph (b) to take Paragraph (f) is revised to clarify that furnished in a hospital emergency into account the amendment to section the aggregate limit under § 447.78 on a department, under certain conditions. 1916(f) of the Act made by section family’s premium and cost sharing Also, we revised paragraph (d) 6041(b)(1) of the DRA. applies to section 1916 and/or 1916A (previously (c)) to specify that drugs for all individuals in the family enrolled identified by a State’s Medicaid program Alternative Premiums, Enrollment Fees, in Medicaid. as non-preferred drugs within a class are or Similar Charges: State Plan subject to the same exclusions and Requirements (§ 447.64) General Alternative Cost Sharing limits for cost sharing as preferred drugs Protections (§ 447.70) We revised paragraphs (a), (c), and (d) within a class if the individual’s to clarify the requirements for We renumbered and revised this prescribing physician determines that consistency with section 1916A of the section to make it consistent with the preferred drug for treatment of the Act. section 1916A of the Act. In addition, same condition either would be less effective for the individual or would We also revised paragraph (d), in we revised this section in response to have adverse effects for the individual response to public comments, to require public comments. or both. We deleted as unnecessary the that if a State imposes cost sharing that We revised the definition of additional requirement that the State’s could result in aggregate costs to a ‘‘emergency services’’ in paragraph (a)(6) criteria for prior authorization, if any, family that exceed five percent of the (previously (a)(1)(vi)) and referenced must be met. family’s income, the State must develop this term in paragraph (b) to cite the a tracking mechanism and not rely on definition which includes the ‘‘prudent Alternative Premium and Cost Sharing the so-called ‘‘shoebox’’ method that layperson’’ standard at section Exemptions and Protections for puts the burden on families to track cost 1932(b)(2) of the Act and § 438.114(a). Individuals With Family Incomes at or sharing. Specifically, a State must We revised paragraph (a)(2) Below 100 Percent of the FPL (§ 447.71) describe in its Medicaid State plan the (previously (a)(1)(ii)) to specify at a We revised paragraphs (b)(1), (b)(3), methodology it will use to identify minimum the services listed at and (c) and added a new paragraph (d) beneficiaries who are subject to § 457.520 as the preventive services to clarify the requirements for premiums or cost sharing for specific excluded from alternative cost sharing consistency with sections 1916 and items or services and track the for children younger than age 18, which 1916A of the Act. Paragraph (d) premiums and cost sharing incurred, in reflect the well baby and well child care specifies that a State may not impose on order to inform beneficiaries and and immunizations described by the individuals with family income at or providers of beneficiaries’ liability and Bright Futures guidelines of the below 100 percent of the FPL the DRA’s notify beneficiaries and providers when American Academy of Pediatrics. alternative premiums and cost sharing individual beneficiaries have reached We revised paragraph (a)(7) defined at section 1916A of the Act, but the five percent limit on family out-of- (previously (a)(1)(vii)) to specify that the may impose cost sharing that does not pocket expenses and are no longer family planning services and supplies exceed the nominal amounts specified subject to further cost sharing for the exempted from cost sharing include at § 447.54. remainder of the family’s current contraceptives and other monthly or quarterly cap period. Such pharmaceuticals for which the State Alternative Premium and Cost Sharing methods must assure that families’ cost claims or could claim Federal match at Exemptions and Protections for sharing will not exceed the statutory the enhanced rate under section Individuals With Family Incomes Above limit. 1903(a)(5) of the Act for family planning 100 Percent but at or Below 150 Percent services and supplies. of the FPL (§ 447.72) Alternative Copayments, Coinsurance, We revised paragraph (a)(9) Deductibles, or Similar Cost Sharing We revised the introduction to (previously (a)(1)(ix)) to explain that Charges: State Plan Requirements paragraph (b) and its subsection (2) and disabled children receiving medical (§ 447.68) paragraph (c) to clarify the requirements assistance by virtue of sections for consistency with section 1916A of We revised paragraphs (b), (c), (d), 1902(a)(10)(A)(ii)(XIX) and 1902(cc) of the Act. (f)(1), and (f)(2) to clarify the the Act who are exempted from We revised paragraph (b)(3), in requirements for consistency with alternative cost sharing are those response to public comments, to delete section 1916A of the Act. covered in accordance with the a higher maximum copayment of $5.70

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per visit for services provided by an for all individuals in the family enrolled the proposed rule. The notice of MCO, when the State does not have a in Medicaid. proposed rulemaking includes a fee-for-service delivery system, for We also revised paragraph (c), in reference to the legal authority under Medicaid expansion optional targeted response to public comments, to require which the rule is proposed, and the low income children for whom that States describe in their State plan terms and substances of the proposed enhanced Federal match is paid under for alternative premiums or cost sharing rule or a description of the subjects and section XXI of the Act. Since these are the process for individuals to request a issues involved. This procedure can be Medicaid-eligible children, they will be reassessment of the family’s aggregate waived, however, if an agency finds subject to the Medicaid limit for such limit if the family’s income is reduced good cause that a notice-and-comment coverage of $3.40 per visit in FY 2009, or if eligibility is being terminated due procedure is impracticable, rather than the limit imposed for to nonpayment of a premium. unnecessary, or contrary to the public separate CHIP programs under title XXI. Enforceability of Alternative Premiums interest and incorporates a statement of and Cost Sharing (§ 447.80) the finding and its reasons in the rule Alternative Premium and Cost Sharing issued. Protections for Individuals With Family We revised paragraphs (a)(3) and (b) A proposed rule was published on Incomes Above 150 Percent of the FPL and added a new paragraph (c) to clarify February 22, 2008 with a public (§ 447.74) and specify the requirements for comment period. A final rule was issued We revised paragraphs (a), (b), and (c) consistency with section 1916A of the on November 25, 2008. The November to clarify the requirements for Act related to alternative cost sharing 25, 2008 final rule published in the consistency with section 1916A of the for nonemergency services provided in Federal Register included a description Act. hospital emergency departments. Also, of changes to the proposed rule based We also revised paragraph (b) to we revised paragraph (b)(2) to reference on the public comments and our delete a higher maximum copayment of the definition of ‘‘emergency services’’ at responses to comments received during $5.70 per visit for services provided by section 1932(b)(2) of the Act and the public comment period. On January an MCO, when the State does not have § 438.114(a). 27, 2009 and March 27, 2009, we a fee-for-service delivery system, for Restrictions on Payments to Providers published final rules to delay the Medicaid expansion optional targeted (§ 447.82) effective date of the November 25, 2008 low income children for whom final rule and to reopen the public enhanced Federal match is paid under We revised this section to make the comment period. The March 27, 2009 section XXI of the Act. Since these are existing text a new paragraph (a). final rule specifically indicated that Medicaid-eligible children, they will be We added a new paragraph (c) to analysis of comments received during subject to the Medicaid limit for such require that a State describe in its the first reopened comment period coverage of $3.40 per visit in FY 2009, Medicaid State plan how the State indicated a need for revisions to the rather than the limit imposed for identifies for providers, ideally through November 25, 2008 final rule, and also separate CHIP programs under title XXI. the use of automated systems, whether specifically requested public comments cost sharing for a specific item or on changes needed to address section Public Schedule (§ 447.76) service may be imposed on an 5006(a) of the Recovery Act. On October We revised paragraph (b)(1) for a individual beneficiary and whether the 30, 2009, we published a proposed rule minor change by replacing the words provider may require the beneficiary, as in the Federal Register to delay the ‘‘and the’’ with the word ‘‘or’’ before a condition for receiving the item or effective date of the November 25, 2008 ‘‘aggregate’’. service, to pay the cost sharing charge. final rule until July 1, 2010. Also, in response to public comments, C. Changes to the CHIP Regulations In keeping with the Department’s we added a new paragraph (c) to require Tribal consultation policy and the new a State to provide the public with Maximum Allowable Cost Sharing provisions in the Recovery Act, CMS advance notice and reasonable Charges on Targeted Low-Income collaborated and consulted with the opportunity to comment in a form and Children in Families With Income From Tribal Technical Advisory Group manner provided under applicable State 101 to 150 Percent of the FPL (TTAG) and the IHS to solicit advice on law prior to submitting for CMS (§ 457.555) implementing these provisions. The approval a Medicaid State plan We revised paragraphs (a)(1)(i) and Tribal Affairs Group and the Center for amendment (SPA) to establish (a)(2) for minor changes in clarification. Medicaid, CHIP, and Survey and alternative premiums or cost sharing Certification within CMS jointly hosted under section 1916A of the Act or to IV. Response to Comments on Revised two All Tribes Calls on June 5 and 12, modify substantially an existing plan for Final Rule 2009, to consult on implementation of alternative premiums or cost sharing. Because of the large number of public section 5006 of the Recovery Act. Two Also, the State must submit comments we normally receive on face-to-face consultation meetings were documentation with the SPA to Federal Register documents, we are not held in Denver on July 8 and 10, 2009, demonstrate that this requirement was able to acknowledge or respond to them to solicit advice and input on these met. individually. We will consider all provisions from federally-recognized comments we receive by the date and Tribes, Indian health care providers, Aggregate Limits on Alternative time specified in the DATES section of and Urban Indian Organizations. An All Premiums and Cost Sharing (§ 447.78) this preamble, and, when we proceed States Call was held on June 10, 2009, We revised paragraphs (a), (b), (c), and with a subsequent document, we will with the State Medicaid and CHIP (c)(2) to clarify the requirements for respond to the comments in the programs to describe the CMS Tribal consistency with section 1916A of the preamble to that document. consultation process and the Recovery Act. In particular, we clarify that the Act provisions and to solicit feedback total aggregate limit of 5 percent of a V. Waiver of Proposed Rulemaking and questions from States. We believe family’s income applies for premiums We ordinarily publish a notice of the requirement of a notice of proposed and/or cost sharing imposed under proposed rulemaking in the Federal rulemaking has been effectively met section 1916 and/or 1916A of the Act Register and invite public comment on through the issuances described in the

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preceding paragraphs. However, to the • Recommendations to minimize the would take for a State to include this extent that the requirement has not been information collection burden on the detailed description in the State plan. met, we find good cause to waive a affected public, including automated We estimate it would take one State notice of proposed rulemaking because collection techniques. approximately 20 minutes to it is unnecessary when the purposes of We are soliciting public comment on incorporate this information in their the requirement have been met through each of these issues for the following plan. We believe 56 States will be the prior issuances, which clearly sections of this document that contain affected by this requirement for a total indicated the intent to revise the information collection requirements annual burden of 18.67 hours. (ICRs): November 25, 2008 final rule and Section 447.68 Alternative invited public comment to inform our A. ICRs Regarding Copayments, Coinsurance, Deductibles, revisions. or Similar Cost Sharing Charges: State Section 447.64 Alternative Premiums, Specifically, the two 2009 final rules Plan Requirements included a reopening of the public Enrollment Fees, or Similar Charges: comment period, indicated that the State Plan Requirements Section 447.68 requires a State November 25, 2008 final rule would be imposing alternative copayments, Section 447.64 requires a State coinsurance, deductibles, or similar cost revised, and requested specific imposing alternative premiums, comments on the changes required by sharing charges on individuals to enrollment fees, or similar charges on describe in the State plan: section 5006(a) of the Recovery Act. In individuals to describe in the State plan: doing so, these final rules effectively (a) The group or groups of individuals (a) The group or groups of individuals that may be subject to the cost sharing proposed revision of the November 25, that may be subject to the premiums, 2008 final rule and invited public charge. enrollment fees, or similar charges. (b) The methodology used to comment. These actions fully satisfied (b) The schedule of the premiums, determine family income, for purposes the requirements for notice of proposed enrollment fees, or similar charges of the limitations on cost sharing related rulemaking, and further process would imposed. to family income that are described in be unnecessary. (c) The methodology used to § 447.78(c) of this chapter, including the With respect to the provisions of this determine family income for purposes period and periodicity of those revised final rule that concern section of the imitations on premiums related to determinations. 5006(a) of the Recovery Act, we further family income level that are described (c) The schedule of the copayments, find good cause to waive the notice of in § 447.78(c) of this chapter, including coinsurance, deductibles, or similar cost proposed rulemaking based on the the period and periodicity of those sharing charges imposed for each item strong public interest in protecting determinations. or service for which a charge is beneficiaries from premiums and cost (d) The methodology used by the imposed. sharing in accordance with law. Section State to: (d) The methodology used by the 5006(a)(1) became effective on July 1, (1) Identify beneficiaries who are State to identify beneficiaries who are 2009, and prompt implementation is subject to premiums or to cost sharing subject to premiums or cost sharing for necessary to ensure that its protections for specific items or services; and specific items or services and, if the are applied without delay. Delay in (2) If the State adopts cost sharing State adopts cost sharing rules that implementation would harm the Indian rules that could place families at risk of could place families at risk of reaching beneficiaries whom the statute was reaching the total aggregate limit for the total aggregate limit for premiums specifically intended to help. premiums and cost sharing under and cost sharing under Medicaid, Therefore, we find good cause to Medicaid, defined at § 447.78 as 5 defined at § 447.78 as 5 percent of the waive the notice of proposed percent of the family’s income, track family’s income, track beneficiaries’ rulemaking and to issue this final rule beneficiaries’ incurred premiums and incurred premiums and cost sharing on an interim basis. We are providing a cost sharing through a mechanism through a tracking system developed by 30-day public comment period. developed by the State that does not the State, in order to inform VI. Collection of Information rely on beneficiaries, in order to inform beneficiaries and providers of Requirements beneficiaries and providers of beneficiaries’ liability and notify beneficiaries’ liability and notify beneficiaries and providers when the Under the Paperwork Reduction Act beneficiaries and providers when individual beneficiaries reached the 5 of 1995, we are required to provide 30- individual beneficiaries have reached percent limit on family out-of-pocket day notice in the Federal Register and the 5 percent limit on family out-of- expenses and are no longer subject to solicit public comment before a pocket expenses and are no longer further cost sharing for the remainder of collection of information requirement is subject to further cost sharing for the the family’s current monthly or submitted to the Office of Management remainder of the family’s current quarterly cap period. and Budget (OMB) for review and monthly or quarterly cap period. (e) The process for informing approval. In order to fairly evaluate (e) The process for informing the beneficiaries, applicants, providers, and whether an information collection beneficiaries, applicants, providers, and the public of the schedule of cost should be approved by OMB, section the public of the schedule of premiums, sharing charges for specific items and 3506(c)(2)(A) of the Paperwork enrollment fees, or similar charges for a services for a group or groups of Reduction Act of 1995 requires that we group or groups of individuals in individuals in accordance with § 447.76 solicit comment on the following issues: accordance with § 447.76. of this chapter. • The need for the information (f) The notice of, timeframe for, and (f) The methodology used to ensure collection and its usefulness in carrying manner of required premium payments that: out the proper functions of our agency. for a group or groups of individuals and (1) The aggregate amount of premiums • The accuracy of our estimate of the the consequences for an individual who and cost sharing imposed under section information collection burden. does not pay. 1916 and section 1916A of the Act for • The quality, utility, and clarity of The burden associated with this all individuals in the family enrolled in the information to be collected. requirement is the time and effort it Medicaid with family income above 100

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percent of the Federal poverty level such amendment in a form and manner 2. Submit your comments to the (FPL) does not exceed 5 percent of the provided under applicable State law. Office of Information and Regulatory family’s income of the family involved. The State must submit documentation Affairs, Office of Management and (2) The aggregate amount of cost with the SPA to demonstrate that this Budget, Attention: CMS Desk Officer, sharing under section 1916 and section requirement was met. 2244–FC, Fax: (202) 395–6974; or E- 1916A of the Act for all individuals in The burden associated with this mail: [email protected]. the family enrolled in Medicaid with requirement is the time and effort it family income at or below 100 percent would take for a State to provide VII. Response to Comments of the FPL does not exceed 5 percent of advance notice to the public and Because of the large number of public the family’s income of the family prepare and submit documentation with comments we normally receive on involved. the SPA. We estimate it would take 1 Federal Register documents, we are not (g) The notice of, timeframe for, and State approximately 3 hours to meet this able to acknowledge or respond to them manner of required cost sharing and the requirement; therefore, the total annual individually. We will consider all consequences for failure to pay. burden associated with this requirement comments we receive by the date and The burden associated with this is 3 hours. time specified in the DATES section of requirement is the time and effort it this preamble, and, when we proceed would take for a State to include this Section 447.80 Enforceability of with a subsequent document, we will detailed description in the State plan. Alternative Premiums and Cost Sharing respond to the comments in the We estimate it would take one State Section 447.80(b)(2) states that a preamble to that document. approximately 20 minutes to hospital that has determined after an incorporate this information in their appropriate medical screening pursuant VIII. Regulatory Impact Analysis plan. We believe 56 States will be to § 489.24, that an individual does not A. Overall Impact need emergency services before affected by this requirement for a total We have examined the impacts of this providing treatment and imposing annual burden of 18.67 hours. rule as required by Executive Order alternative cost sharing on an individual 12866 on Regulatory Planning and Section 447.76 Public Schedule in accordance with § 447.72(b)(2) and Review (September 30, 1993), the Section 447.76(a) requires States to § 447.74(b) of this chapter for non- Regulatory Flexibility Act (RFA) make available to the groups in emergency services as defined in section (September 19, 1980, Pub. L. 96–354), paragraph (b) of this section a public 1916A(e)(4)(A) of the Act, must provide: schedule that contains the following (1) The name and location of an section 1102(b) of the Social Security information: available and accessible alternate non- Act, section 202 of the Unfunded (1) Current premiums, enrollment emergency services provider, as defined Mandates Reform Act of 1995 (Pub. L. fees, or similar charges. in section 1916A(e)(4)(B) of the Act; 104–4), Executive Order 13132 on (2) Current cost sharing charges. (2) Information that the alternate Federalism (August 4, 1999), and the (3) The aggregate limit on premiums provider can provide the services in a Congressional Review Act (5 U.S.C. and cost sharing or just cost sharing. timely manner with the imposition of a 804(2)). (4) Mechanisms for making payments lesser cost sharing amount or no cost Executive Order 12866 directs for required premiums and charges. sharing; and agencies to assess all costs and benefits (5) The consequences for an applicant (3) A referral to coordinate scheduling of available regulatory alternatives and, or beneficiary who does not pay a of treatment by this provider. if regulation is necessary, to select premium or charge. The burden associated with this regulatory approaches that maximize (6) A list of hospitals charging requirement is the time and effort it net benefits (including potential alternative cost sharing for non- would take for a hospital to provide the economic, environmental, public health emergency use of the emergency name and location of an alternate and safety effects, distributive impacts, department. provider who can provide services of a and equity). A regulatory impact (7) Either a list of preferred drugs or lesser cost sharing amount or no cost analysis (RIA) must be prepared for a method to obtain such a list upon sharing and a referral to that provider. major rules with economically request. We estimate the burden on a hospital to significant effects of $100 million or The burden associated with this be 5 minutes. We believe the number of more in any 1 year. We estimate this requirement is the time and effort it hospital visits will be 4,077,000; final rule with comment period will not would take the State to prepare and therefore, the total annual burden is reach the economically significant make available to appropriate parties a 339,750 hours. threshold of $100 million in benefits public schedule. We estimate that it and costs and consequently is not a would take 20 minutes per State. We B. Comments on ICRs major rule under the Congressional believe 56 States and territories will be We have submitted a copy of this final Review Act. affected by this requirement for an rule to OMB for its review of the The economic impact associated with annual burden of 18.67 hours. information collection requirements this final rule relates to changes it Section 447.76(c) requires the State, described above. We will revise OMB proposes to the November 25, 2008, prior to submitting to the Centers for number 0938–0993 to reflect any final rule. The main change estimated to Medicare & Medicaid Services for additional burden not currently have a budget impact is the Recovery approval a Medicaid State plan approved. Act’s exemption of Indians from amendment to establish alternative If you comment on these information premiums and cost sharing under premiums or cost sharing under section collection and recordkeeping certain circumstances. The estimated 1916A of the Act or an amendment to requirements, please do either of the budget impact of section 5006 of the modify substantially an existing plan for following: Recovery Act has been included in the alternative premiums or cost sharing, to 1. Submit your comments FY 2011 President’s budget. The RFA provide the public with advance notice electronically as specified in the requires agencies to analyze options for of the amendment and allow reasonable ADDRESSES section of this revised final regulatory relief of small businesses, if opportunity to comment with respect to rule with comment period; or a rule has a significant impact on a

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substantial number of small entities. List of Subjects Indian health care services, including as The great majority of hospitals and most a California Indian, Eskimo, Aleut, or 42 CFR Part 447 other health care providers and other Alaska Native. suppliers are small entities, either by Accounting, Administrative practice ■ 3. Section 447.51 is amended by being nonprofit organizations or by and procedure, Drugs, Grant programs— revising paragraph (a) and the meeting the Small Business Health, Health facilities, Health introductory text of paragraph (c) to Administration’s (SBA) definition of a professions, Medicaid, Reporting and read as follows: small business (having revenues of less recordkeeping requirements, Rural areas. § 447.51 Requirements and options. than $7 million to $34.5 million in any (a) The plan must provide that the 1 year.) Individuals and States are not 42 CFR Part 457 Medicaid agency does not impose any included in the definition of a small Administrative practice and enrollment fee, premium, or similar entity. Therefore, the Secretary has procedure, Grant programs—Health, charge for any services available under determined that this final rule with Health insurance, Reporting and the plan upon: comment period will not have a recordkeeping requirements. (1) Categorically needy individuals, as significant impact on a substantial ■ defined in § 435.4 and § 436.3 of this number of small entities. For the reasons set forth in the subchapter, except for the following preamble, the Centers for Medicare & populations in accordance with sections In addition, section 1102(b) of the Act Medicaid Services amends 42 CFR requires us to prepare a regulatory 1916(c), (d), (g), and (i) of the Act: chapter IV as set forth below: (i) A pregnant woman or an infant impact analysis if a rule may have a under one year of age described in significant impact on the operations of PART 447—PAYMENTS FOR SERVICES subparagraph (A) or (B) of section a substantial number of small rural 1902(l)(1) of the Act, who is receiving hospitals. This analysis must conform to ■ 1. The authority citation for part 447 medical assistance on the basis of the provisions of section 604 of the continues to read as follows: section 1902(a)(10)(A)(ii)(IX) of the Act RFA. For purposes of section 1102(b) of and whose family income equals or the Act, we define a small rural hospital Authority: Sec. 1102 of the Social Security Act (42 U.S.C. 1302). exceeds 150 percent of the Federal as a hospital that is located outside of poverty level (FPL) applicable to a a metropolitan statistical area and has ■ 2. Section 447.50 is amended by family of the size involved; fewer than 100 beds. Therefore, the adding a new paragraph (b) to read as (ii) A qualified disabled and working Secretary has determined that this final follows: individual described in section 1905(s) rule with comment period will not have of the Act whose income exceeds 150 § 447.50 Cost sharing: Basis and purpose. a significant impact on the operations of percent of the FPL; a substantial number of small rural * * * * * (iii) An individual provided medical hospitals. (b) Definitions. For the purposes of assistance only under section this subpart: 1902(a)(10)(A)(ii)(XV) or section Section 202 of the Unfunded (1) Indian means any individual 1902(a)(10)(A)(ii)(XVI) of the Act and Mandates Reform Act of 1995 (UMRA) defined at 25 USC 1603(c), 1603(f), or the Ticket to Work and Work Incentives also requires that agencies assess 1679(b), or who has been determined Improvement Act of 1999 (TWWIIA); anticipated costs and benefits before eligible as an Indian, pursuant to and issuing any rule whose mandates § 136.12 of this part. This means the (iv) A disabled child provided require spending in any 1 year of $100 individual: medical assistance under section million in 1995 dollars, updated (i) Is a member of a Federally- 1902(a)(10)(A)(ii)(XIX) of the Act in annually for inflation. In 2009, that recognized Indian tribe; accordance with the Family threshold is approximately $133 (ii) Resides in an urban center and Opportunity Act; and million. This final rule with comment meets one or more of the following four (2) An Indian who either is eligible to period will not impose spending costs criteria: receive or has received an item or on State, local, or tribal governments in (A) Is a member of a tribe, band, or service furnished by an Indian health the aggregate, or by the private sector, of other organized group of Indians, care provider or through referral under $133 million in any one year. including those tribes, bands, or groups contract health services. terminated since 1940 and those Executive Order 13132 establishes * * * * * recognized now or in the future by the (c) For each charge imposed under certain requirements that an agency State in which they reside, or who is a paragraph (a) or (b) of this section, the must meet when it promulgates a descendant, in the first or second plan must specify— proposed rule (and subsequent final degree, of any such member; rule) that imposes substantial direct * * * * * (B) Is an Eskimo or Aleut or other ■ 4. Section 447.53 is amended by requirement costs on State and local Alaska Native; governments, preempts State law, or revising paragraph (b)(4) and adding a (C) Is considered by the Secretary of new paragraph (b)(6) to read as follows: otherwise has Federalism implications. the Interior to be an Indian for any This final rule with comment period purpose; or § 447.53 Applicability; specification; will not have substantial direct (D) Is determined to be an Indian multiple charges. requirement costs on State and local under regulations promulgated by the * * * * * governments, preempt State law, or Secretary; (b) * * * otherwise have Federalism implications. (iii) Is considered by the Secretary of (4) Emergency services. Services as In accordance with the provisions of the Interior to be an Indian for any defined at section 1932(b)(2) of the Act and § 438.114(a). Executive Order 12866, this regulation purpose; or was reviewed by the Office of (iv) Is considered by the Secretary of * * * * * Management and Budget. Health and Human Services to be an (6) Indians. Items and services Indian for purposes of eligibility for furnished to an Indian directly by an

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Indian health care provider or through (b) Waiver of the requirement that cost § 447.72, § 447.74, § 447.76, § 447.78, referral under contract health services. sharing amounts be nominal. Upon § 447.80, and § 447.82 prescribe State * * * * * approval from CMS, the requirement plan requirements and options for that cost sharing charges must be alternative premiums and cost sharing § 447.54 [Amended] nominal may be waived, in accordance for a group or groups of individuals (as ■ 5. Section 447.54 is amended by— with sections 1916(a)(3) and 1916(b)(3) specified by the State) for services or ■ A. Republishing the introductory text. of the Act and § 431.57 of this chapter, items (as specified by the State) and the ■ B. Revising paragraph (a)(1), for non-emergency services furnished in standards and conditions under which paragraph (a)(3)(ii), and paragraph a hospital emergency department, if the States may impose them. The State may (a)(4). State establishes to the satisfaction of vary the premiums and cost sharing ■ C. Revising paragraph (b). the Secretary that alternative sources of among groups of individuals or types of The revisions read as follows: nonemergency, outpatient services are services or items, consistent with the actually available and accessible to limitations specified in this subpart and § 447.54 Maximum allowable and nominal charges. Medicaid beneficiaries in a timely section 1916A(a)(1) of the Social manner. Security Act. Otherwise, premiums and Except as provided at § 447.62 * * * * * cost sharing must comply with the through § 447.82 of this part, the requirements described in § 447.50 following requirements must be met: ■ 6. Section 447.55 is amended by revising paragraph (b) to read as follows: through § 447.60. (a) Non-institutional services. Except (b) Waivers of the limitations as specified in paragraph (b) of this § 447.55 Standard co-payment. described in this subpart on deductions, section, for non-institutional services, cost sharing, and similar charges may be the plan must provide that the following * * * * * (b) This standard copayment amount granted only in accordance with the requirements are met: provisions of section 1916(f) of the Act. (1) For Federal FY 2009, any for any service may be determined by applying the maximum copayment deductible it imposes does not exceed § 447.64 [Amended] amounts specified in § 447.54(a) and (c) $2.30 per month per family for each ■ 9. Section 447.64 is amended by period of Medicaid eligibility. For to the agency’s average or typical payment for that service. For example, revising paragraphs (a), (c), and (d) to example, if Medicaid eligibility is if the agency’s typical payment for read as follows: certified for a 6-month period, the prescribed drugs is $4 to $5 per maximum deductible which may be § 447.64 Alternative premiums, enrollment prescription, the agency might set a imposed on a family for that period of fees, or similar charges: State plan standard copayment of $.60 per eligibility is $13.80. In succeeding years, requirements. prescription. This standard copayment any deductible may not exceed these * * * * * may be adjusted based on updated amounts as updated each October 1 by (a) The group or groups of individuals copayments as permitted under the percentage increase in the medical that may be subject to the premiums, § 447.54(a)(3). care component of the CPI–U for the enrollment fees, or similar charges. ■ period of September to September 7. Section 447.57 is amended by * * * * * ending in the preceding calendar year, adding a new paragraph (c) to read as (c) The methodology used to and then rounded to the next higher 5- follows: determine family income for purposes cent increment. § 447.57 Restrictions on payments to of the limitations on premiums related * * * * * providers. to family income level that are (3) * * * * * * * * described in § 447.78(c) of this chapter, (ii) Thereafter, any copayments may (c) Payment under Medicaid due to an including the period and periodicity of not exceed these amounts as updated Indian health care provider or a health those determinations. each October 1 by the percentage care provider through referral under (d) The methodology used by the increase in the medical care component contract health services for directly State to: (1) Identify beneficiaries who are of the CPI–U for the period of furnishing an item or service to an subject to premiums or cost sharing for September to September ending in the Indian may not be reduced by the specific items or services; and preceding calendar year and then amount of any enrollment fee, premium, rounded to the next higher 5-cent (2) If the State adopts cost sharing or similar charge, or any deductible, rules that could place families at risk of increment. copayment, cost sharing, or similar (4) For Federal FY 2009, any reaching the total aggregate limit for charge that otherwise would be due premiums and cost sharing under copayment that the State imposes for from the Indian. services provided by a managed care Medicaid, defined at § 447.78, track ■ 8. Section 447.62 is revised to read as beneficiaries’ incurred premiums and organization (MCO) may not exceed the follows: copayment permitted under paragraph cost sharing through a mechanism (a)(3)(i) of this section for comparable § 447.62 Alternative premiums and cost developed by the State that does not services under a fee-for-service delivery sharing: Basis, purpose and scope. rely on beneficiaries, in order to inform system. When there is no fee-for-service (a) Section 1916A of the Act sets forth beneficiaries and providers of delivery system, the copayment may not options for a State through a Medicaid beneficiaries’ liability and notify exceed $3.40 per visit. In succeeding State plan amendment to impose beneficiaries and providers when years, any copayment may not exceed alternative premiums and cost sharing, individual beneficiaries have incurred these amounts as updated each October which are premiums and cost sharing family out-of-pocket expenses up to that 1 by the percentage increase in the that are not subject to the limitations limit and are no longer subject to further medical care component of the CPI–U under section 1916 of the Act as cost sharing for the remainder of the for the period of September to described in §§ 447.51 through 447.56. family’s current monthly or quarterly September ending in the preceding For States that impose alternative cap period. calendar year and then rounded to the premiums or cost sharing, § 447.64, * * * * * next higher 5-cent increment. § 447.66, § 447.68, § 447.70, § 447.71, ■ 10. Section 447.66 is amended by—

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■ A. Adding a new paragraph (a)(7). (FPL) does not exceed 5 percent of the furnished after the hospital has ■ B. Adding a new paragraph (c). family’s income of the family involved. determined, based on the screening and The additions read as follows: (2) The aggregate amount of cost any other services required under sharing imposed under section 1916 and § 489.24 of this chapter, that the § 447.66 General alternative premium section 1916A of the Act for all individual does not need emergency protections. individuals in the family enrolled in services consistent with the (a) * * * Medicaid with family income at or requirements of paragraph (b) of this (7) An Indian who is eligible to below 100 percent of the FPL does not section. receive or has received an item or exceed 5 percent of the family’s income (7) Family planning services and service furnished by an Indian health of the family involved. supplies described in section care provider or through referral under * * * * * 1905(a)(4)(C) of the Act, including contract health services. ■ 12. Section 447.70 is revised to read contraceptives and other * * * * * as follows: pharmaceuticals for which the State (c) Nothing in this subsection shall be claims or could claim Federal match at construed as restricting the application § 447.70 General alternative cost sharing the enhanced rate under section protections. of any other limitations on the 1903(a)(5) of the Act for family planning imposition of premiums that may apply (a) States may not impose alternative services and supplies. to an individual receiving Medicaid cost sharing for the following items or (8) Services furnished to women who who is an Indian. services. Except as indicated, these are receiving medical assistance by limits do not apply to alternative cost virtue of the application of sections ■ 11. Section 447.68 is amended by sharing for prescription drugs identified 1902(a)(10)(A)(ii)(XVIII) and 1902(aa) of revising paragraphs (b) through (d) and by a State’s Medicaid program as non- the Act (breast or cervical cancer (f) to read as follows: preferred within a class of such drugs or provisions). § 447.68 Alternative copayments, for non-emergency use of the emergency (9) Services furnished to disabled coinsurance, deductibles, or similar cost room. children who are receiving medical sharing charges: State plan requirements. (1) Services furnished to individuals assistance by virtue of the application of * * * * * under 18 years of age who are required sections 1902(a)(10)(A)(ii)(XIX) and (b) The methodology used to to be provided Medicaid under section 1902(cc) of the Act, in accordance with determine family income, for purposes 1902(a)(10)(A)(i) of the Act, including the Family Opportunity Act. (10) Items and services furnished to of the limitations on cost sharing related services furnished to individuals with an Indian directly by an Indian health to family income level that are respect to whom child welfare services care provider or through referral under described in § 447.78(c) of this chapter, are being made available under Part B of title IV of the Act on the basis of contract health services. including the period and periodicity of (11) Preferred drugs within a class, or those determinations. being a child in foster care and individuals with respect to whom drugs not identified by the State’s (c) The schedule of the copayments, Medicaid program as a non-preferred coinsurance, deductibles, or similar cost adoption or foster care assistance is made available under Part E of that title, drug within a class, for individuals for sharing charges imposed for each item whom cost sharing may not otherwise or service for which a charge is without regard to age. (2) Preventive services, at a minimum be imposed as described in paragraphs imposed. (a)(1) through (10) of this section. (d) The methodology used by the the services specified at § 457.520, provided to children under 18 years of (b) For the exempt populations State to identify beneficiaries who are specified in paragraph (a) of this subject to premiums or cost sharing for age regardless of family income, which reflect the well baby and well child care section, a State may impose nominal specific items or services and, if families cost sharing as defined in § 447.54 of are at risk of reaching the total aggregate and immunizations in the Bright Futures guidelines issued by the this chapter for services furnished in a limit for premiums and cost sharing hospital emergency department, other under Medicaid defined at § 447.78, American Academy of Pediatrics. (3) Services furnished to pregnant than those required under § 489.24, if track beneficiaries’ incurred premiums women, if those services relate to the the hospital has determined based on and cost sharing through a mechanism pregnancy or to any other medical the medical screening required under developed by the State that does not condition which may complicate the § 489.24 that the individual does not rely on beneficiaries, in order to inform pregnancy. need emergency services as defined at beneficiaries and providers of (4) Services furnished to a terminally section 1932(b)(2) of the Act and beneficiaries’ liability and notify ill individual who is receiving hospice § 438.114(a), the requirements of beneficiaries and providers when care (as defined in section 1905(o) of the § 447.80(b)(1) are met, and the services individual beneficiaries have incurred Act). are available in a timely manner without family out-of-pocket expenses up to that (5) Services furnished to any cost sharing through an outpatient limit and are no longer subject to further individual who is an inpatient in a department or another alternative non- cost sharing for the remainder of the hospital, nursing facility, intermediate emergency health care provider in the family’s current monthly or quarterly care facility for the mentally retarded, or geographic area of the hospital cap period. other medical institution, if the emergency department involved. * * * * * individual is required, as a condition of (c) In the case of a drug that a State’s (f) The methodology used to ensure receiving services in that institution Medicaid program either has identified that: under the State plan, to spend for costs as a preferred drug within a class or has (1) The aggregate amount of premiums of medical care all but a minimal not otherwise identified as a non- and cost sharing imposed under section amount of the individual’s income preferred drug within a class, cost 1916 and section 1916A of the Act for required for personal needs. sharing may not exceed the nominal all individuals in the family enrolled in (6) Emergency services as defined at levels permitted under section 1916 of Medicaid with family income above 100 section 1932(b)(2) of the Act and the Act as specified in § 447.54 of this percent of the Federal poverty level § 438.114(a), except charges for services chapter. Cost sharing can be imposed

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that exceeds the nominal levels § 447.72 Alternative premium and cost copayment that the State imposes for permitted under section 1916 of the Act sharing exemptions and protections for services provided by an MCO to a for drugs that are identified by a State’s individuals with family incomes above 100 Medicaid beneficiary, including a child Medicaid program as non-preferred percent but at or below 150 percent of the covered under a Medicaid expansion FPL. drugs within a class in accordance with program for whom enhanced match is section 1916A(c) of the Act. * * * * * claimed under title XXI of the Act, may (d) In the case of a drug that is (b) Cost sharing may be imposed not exceed $3.40 per visit for Federal FY identified by a State’s Medicaid program under the State plan for individuals 2009. Thereafter, any copayment may as a non-preferred drug within a class, whose family income exceeds 100 not exceed this amount as updated each the cost sharing is limited to the amount percent, but does not exceed 150 October 1 by the percentage increase in imposed for a preferred drug if the percent, of the FPL if the cost sharing the medical care component of the CPI– individual’s prescribing physician does not exceed 10 percent of the U for the period of September to determines that the preferred drug for payment the agency makes for the item September ending in the preceding treatment of the same condition either or service, with the following calendar year and then rounded to the would be less effective for the exceptions: next highest 5-cent increment. individual or would have adverse (1) Cost sharing for non-preferred (c) Aggregate premiums and cost effects for the individual or both. drugs cannot exceed the nominal sharing under sections 1916 and 1916A (e) States may exempt additional amount as defined in § 447.54. of the Act for all individuals in the individuals, items, or services from cost (2) Cost sharing for non-emergency family enrolled in Medicaid may not sharing. services furnished in the hospital exceed the maximum permitted under emergency department cannot exceed § 447.78(a). ■ 13. Section 447.71 is amended by— twice the nominal amount as defined in ■ 16. Section 447.76 is amended by ■ A. Revising paragraphs (b)(1), (b)(3), § 447.54. A hospital must meet the revising paragraph (b)(1) and adding a and (c). requirements described at § 447.80(b)(2) new paragraph (c) to read as follows: ■ B. Adding a new paragraph (d). before the cost sharing can be imposed. The additions and revisions read as (3) In the case of States that do not § 447.76 Public schedule. follows: have fee-for-service payment rates, any * * * * * § 447.71 Alternative premium and cost copayment that the State imposes for (b) * * * sharing exemptions and protections for services provided by an MCO to a (1) Beneficiaries, at the time of their individuals with family incomes at or below Medicaid beneficiary, including a child enrollment and reenrollment after a 100 percent of the FPL. covered under a Medicaid expansion redetermination of eligibility, and when * * * * * program for whom enhanced match is premiums, cost sharing charges, or (b) * * * claimed under title XXI of the Act, may aggregate limits are revised. (1) The State may impose cost sharing not exceed $3.40 per visit for Federal FY * * * * * under authority provided under section 2009. Thereafter, any copayment may (c) Prior to submitting to the Centers 1916 of the Act and consistent with the not exceed this amount as updated each for Medicare & Medicaid Services for levels described in such section and October 1 by the percentage increase in approval a State plan amendment (SPA) § 447.54. the medical care component of the CPI– to establish alternative premiums or cost U for the period of September to sharing under section 1916A of the Act * * * * * September ending in the preceding or an amendment to modify (3) The State may impose cost sharing calendar year and then rounded to the substantially an existing plan for for non-emergency services furnished in next highest 5-cent increment. alternative premiums or cost sharing, a hospital emergency department that (c) Aggregate cost sharing under the State must provide the public with does not exceed the nominal amount as sections 1916 and 1916A of the Act for advance notice of the amendment and defined in § 447.54 as long as the all individuals in the family enrolled in reasonable opportunity to comment services are available in a timely Medicaid may not exceed the maximum with respect to such amendment in a manner without cost sharing through an permitted under § 447.78(a). form and manner provided under outpatient department or other ■ applicable State law, and must submit alternative non-emergency services 15. Section 447.74 is revised to read as follows: documentation with the SPA to health care provider in the geographic demonstrate that this requirement was area of the hospital emergency § 447.74 Alternative premium and cost met. department involved. sharing protections for individuals with ■ 17. Section 447.78 is revised to read (c) Aggregate cost sharing under family incomes above 150 percent of the as follows: sections 1916 and 1916A of the Act for FPL. all individuals in the family enrolled in (a) States may impose premiums § 447.78 Aggregate limits on alternative Medicaid may not exceed the maximum under the State plan consistent with the premiums and cost sharing. permitted under § 447.78(b). aggregate limits set forth in § 447.78(a) (a) The total aggregate amount of (d) The State may not impose on individuals whose family income premiums and cost sharing imposed alternative premiums and cost sharing exceeds 150 percent of the FPL. under sections 1916 and 1916A of the in accordance with section 1916A of the (b) Cost sharing may be imposed Act for all individuals in a family Act on individuals whose family under the State plan on individuals enrolled in Medicaid with family income is at or below 100 percent of the whose family income exceeds 150 income above 100 percent of the FPL FPL, but may impose cost sharing that percent of the FPL if the cost sharing may not exceed 5 percent of the family’s does not exceed the nominal amount as does not exceed 20 percent of the income for the monthly or quarterly defined at § 447.54 and section 1916 of payment the agency makes for the item period, as specified by the State in the the Act. (including a non-preferred drug) or State plan. ■ 14. Section 447.72 is amended by service, with the following exception: In (b) The total aggregate amount of cost revising paragraphs (b) and (c) to read the case of States that do not have fee- sharing imposed under sections 1916 as follows: for-service payment rates, any and 1916A of the Act for all individuals

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in a family enrolled in Medicaid with (i) The name and location of an PART 457—ALLOTMENTS AND family income at or below 100 percent available and accessible alternate non- GRANTS TO STATES of the FPL may not exceed 5 percent of emergency services provider, as defined the family’s income for the monthly or in section 1916A(e)(4)(B) of the Act. ■ 20. The authority citation for part 457 quarterly period, as specified by the (ii) Information that the alternate continues to read as follows: State in the State plan. provider can provide the services in a (c) Family income shall be timely manner with the imposition of a Authority: Section 1102 of the Social determined in a manner, for such lesser cost sharing amount or no cost Security Act (42 U.S.C. 1302). period, and at such periodicity as sharing. ■ 21. Section 457.555 is amended by specified by the State in the State plan, (iii) A referral to coordinate revising paragraphs (a)(1)(i) and (a)(2) to including the use of such disregards as scheduling of treatment by this read as follows: the State may provide and the process provider. for individuals to request a reassessment * * * * * § 457.555 Maximum allowable cost sharing of the family’s aggregate limit if the (c) Nothing in paragraph (b)(2) of this charges on targeted low-income children in family’s income is reduced or if section shall be construed to: families with income from 101 to 150 eligibility is being terminated due to (1) Limit a hospital’s obligations with percent of the FPL. nonpayment of a premium. respect to screening and stabilizing (a) **** (1) States may use gross income or treatment of an emergency medical any other methodology. condition under section 1867 of the Act; (1)(i) For Federal FY 2009, any co- (2) States may use a different or payment or similar charge the State methodology for determining the (2) Modify any obligations under imposes under a fee-for-service delivery family’s income to which the 5 percent either State or Federal standards relating system may not exceed the amounts aggregate limit is applied than is used to the application of a prudent- shown in the following table: for determining income eligibility. layperson standard with respect to ■ payment or coverage of emergency Maximum 18. Section 447.80 is amended by— State payment for the service Copay- ■ A. Revising paragraph (a)(3), the medical services by any managed care ment introductory text of paragraph (b), and organization. paragraph (b)(2). $15 or less ...... $1.15 § 447.82 [Amended] ■ B. Adding a new paragraph (c). $15.01 to $40 ...... $2.30 The additions and revisions read as ■ 19. Section 447.82 is revised to read $40.01 to $80 ...... $3.40 follows: as follows: $80.01 or more ...... $5.70 § 447.80 Enforceability of alternative § 447.82 Restrictions on payments to * * * * * premiums and cost sharing. providers. * * * * * (a) The plan must provide that the (2) For Federal FY 2009, any co- (a) * * * State Medicaid agency reduces the payment that the State imposes for (3) Waive payment of a premium in payment it makes to a provider by the services provided by a managed care any case where the State determines amount of a beneficiary’s cost sharing organization may not exceed $5.70 per that requiring the payment would create obligation, regardless of whether the visit. In succeeding years, any an undue hardship for the individual. provider successfully collects the cost copayment may not exceed this amount (b) With respect to alternative cost sharing. as updated each October 1 by the sharing, a State may amend its Medicaid (b) Payment that is due under percentage increase in the medical care State plan to permit a provider, Medicaid to an Indian health care component of the CPI–U for the period including a pharmacy or hospital, to provider or a health care provider of September to September ending in require an individual, as a condition for through referral under contract health the preceding calendar year and then receiving the item or service, to pay the services for directly furnishing an item rounded to the next higher 5-cent cost sharing charge, except as specified or service to an Indian may not be increment. in paragraphs (b)(1) through (3) of this reduced by the amount of any * * * * * section. enrollment fee, premium, or similar (Catalog of Federal Domestic Assistance * * * * * charge, or any deductible, copayment, Program No. 93.778, Medical Assistance (2) A hospital that has determined cost sharing, or similar charge that Program) after an appropriate medical screening otherwise would be due. Dated: April 22, 2010. pursuant to § 489.24 of this chapter, that (c) The plan must describe how the Marilyn Tavenner, an individual does not need emergency State identifies for providers, ideally services as defined at section 1932(b)(2) through the use of the automated Acting Administrator and Chief Operating Officer, Centers for Medicare & Medicaid of the Act and § 438.114(a), before systems, whether cost sharing for a Services. providing treatment and imposing specific item or service may be imposed Approved: May 18, 2010. alternative cost sharing on an individual on an individual beneficiary and in accordance with § 447.72(b)(2) and whether the provider may require the Kathleen Sebelius, § 447.74(b) of this chapter for non- beneficiary, as a condition for receiving Secretary. emergency services as defined in section the item or service, to pay the cost [FR Doc. 2010–12954 Filed 5–27–10; 8:45 am] 1916A(e)(4)(A) of the Act, must provide: sharing charge. BILLING CODE 4120–01–P

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Reader Aids Federal Register Vol. 75, No. 103 Friday, May 28, 2010

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Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202–741–6000 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since Laws 741–6000 the revision date of each title. Presidential Documents 2 CFR 1650...... 24785 Executive orders and proclamations 741–6000 Ch. IV...... 29183 Proposed Rules: The United States Government Manual 741–6000 Ch. XX ...... 27923 Ch. XXXVII ...... 27456 Other Services Proposed Rules: 7 CFR Electronic and on-line services (voice) 741–6020 Ch. 58 ...... 24494 1329...... 29215 272...... 23565 Privacy Act Compilation 741–6064 273...... 23565 Public Laws Update Service (numbers, dates, etc.) 741–6043 3 CFR 301...... 29189, 29191 TTY for the deaf-and-hard-of-hearing 741–6086 Proclamations: 319...... 28187 8505...... 23557 360...... 23151 ELECTRONIC RESEARCH 8506...... 23559 361...... 23151 World Wide Web 8507...... 23561 760...... 25103 Full text of the daily Federal Register, CFR and other publications 8508...... 24363 783...... 25103 is located at: http://www.gpoaccess.gov/nara/index.html 8509...... 24365 930...... 29647 Federal Register information and research tools, including Public 8510...... 24367 985...... 27631 Inspection List, indexes, and links to GPO Access are located at: 8511...... 24369 1205...... 24373 http://www.archives.gov/federallregister 8512...... 24371 1410...... 27165 E-mail 8513...... 25099 1416...... 25103 8514...... 25101 3017...... 29183 FEDREGTOC-L (Federal Register Table of Contents LISTSERV) is 8515...... 26055 4280...... 30114 an open e-mail service that provides subscribers with a digital 8516...... 26873 form of the Federal Register Table of Contents. The digital form Proposed Rules: 8517...... 26875 319...... 27225, 29680 of the Federal Register Table of Contents includes HTML and 8518...... 26877 930...... 29684 PDF links to the full text of each document. 8519...... 27919 1530...... 23631 To join or leave, go to http://listserv.access.gpo.gov and select 8520...... 28181 1951...... 29920 Online mailing list archives, FEDREGTOC-L, Join or leave the list 8521...... 28183 1980...... 27949 (or change settings); then follow the instructions. 8522...... 28185 4284...... 29920 PENS (Public Law Electronic Notification Service) is an e-mail 8523...... 29389 service that notifies subscribers of recently enacted laws. 8524...... 29391 9 CFR To subscribe, go to http://listserv.gsa.gov/archives/publaws-l.html 8525...... 29393 381...... 27925 and select Join or leave the list (or change settings); then follow 8526...... 29395 the instructions. Proposed Rules: Executive Orders: 310...... 28763 FEDREGTOC-L and PENS are mailing lists only. We cannot 13541...... 26879 respond to specific inquiries. 13542...... 27921 10 CFR Reference questions. Send questions and comments about the 13543...... 29397 72...... 24786, 27401 Federal Register system to: [email protected] Administrative Orders: 430 ...... 27170, 27182, 27926 The Federal Register staff cannot interpret specific documents or Presidential Proposed Rules: regulations. Determinations: 50...... 24324 Reminders. Effective January 1, 2009, the Reminders, including No. 2010-07 of May 4, 72...... 25120, 27463 Rules Going Into Effect and Comments Due Next Week, no longer 2010 ...... 27161 430 ...... 23191, 25121, 29824 appear in the Reader Aids section of the Federal Register. This No. 2010-08 of May 431 ...... 24824, 25121, 27227 information can be found online at http://www.regulations.gov. 11, 2010 ...... 27163 433...... 29933 CFR Checklist. Effective January 1, 2009, the CFR Checklist no Memorandums: 435...... 29933 longer appears in the Federal Register. This information can be Memorandum of April 1703...... 27228 found online at http://bookstore.gpo.gov/. 27, 2010 ...... 23563 Memorandum of May 11 CFR FEDERAL REGISTER PAGES AND DATE, MAY 3, 2010 ...... 24781 Memorandum of May 300...... 24375 23151–23556...... 3 28751–29182...... 24 4, 2010 ...... 27155 Proposed Rules: 23557–24362...... 4 29183–29388...... 25 Memorandum of May 7...... 27456 24363–24780...... 5 29389–29646...... 26 11, 2010 ...... 27157 12 CFR 24781–25098...... 6 29647–29876...... 27 Memorandum of May 204...... 24384 25099–25758...... 7 29877–30266...... 28 21, 2010 ...... 29399 25759–26054...... 10 Notices: 535...... 23565 26055–26642...... 11 Notice of May 3, 985...... 23152 26643–26880...... 12 2010 ...... 24779 989...... 23152 26881–27154...... 13 Notice of May 12, 1273...... 23152 27155–27398...... 14 2010 ...... 27399 1274...... 23152 27399–27630...... 17 Notice of May 13, 1291...... 29877 27631–27922...... 18 2010 ...... 27629 Proposed Rules: 27923–28180...... 19 327...... 23516, 26681 28181–28462...... 20 5 CFR 360...... 27464, 27471 28463–28750...... 21 1600...... 24785 614...... 27660

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652...... 27951 157...... 24392 706 ...... 25111, 27429, 29193 Proposed Rules: 701...... 24497 284...... 29404 9...... 28227 956...... 23631 Proposed Rules: 33 CFR 51...... 28227 1267...... 23631 37...... 24828 100 ...... 23587, 24400, 24799, 52 ...... 23640, 24542, 24544, 1281...... 29947 26091, 27430, 29886, 29889, 24844, 25797, 25798, 26685, 19 CFR 29891 26892, 27510, 27512, 27514, 14 CFR 101...... 24392 117 ...... 23588, 24400, 25765, 27975, 28227, 28509, 29699, 25...... 26643, 27926 28757 29965 39 ...... 23568, 23571, 23572, 21 CFR 127...... 29420 60...... 27249 23574, 23577, 23579, 24389, 520...... 26646 147...... 26091 63...... 28227 26881, 26883, 26885, 27401, 522...... 26647 165 ...... 23589, 23592, 24402, 80...... 26049, 26165 27403, 27406, 27409, 27411, 524...... 26647 24799, 25111, 25766, 26094, 81 ...... 26685, 26898, 27514 27414, 27416, 27419, 27422, 556...... 24394 26098, 26648, 26650, 27432, 82...... 25799 27424, 28188, 28463, 28465, 558...... 24394 27638, 27641, 28194, 28200, 85...... 29606 28469, 28471, 28475, 28478, Proposed Rules: 28202, 28757, 29427, 29658, 86...... 29606 28480, 28483, 28485, 28751 1140...... 27672 29660 98...... 26904 67...... 29403 334...... 26100 180...... 28156, 29475 71 ...... 23580, 23581, 24789, 22 CFR Proposed Rules: 300...... 26166, 27255 27427, 27637, 29652, 29653, 22...... 28188 100...... 26152 745...... 24848, 25038 29654, 29655, 29656, 29657 Proposed Rules: 117...... 28766, 29693 41 CFR 73...... 28752, 28756 62...... 23196 165 ...... 23202, 23209, 23212, 91...... 30160 25794, 26155, 26157, 27507, 102-39...... 24820 95...... 24790 24 CFR 28769, 29695 300-3...... 24434 Ch. 301 ...... 24434 97...... 25759, 25760 202...... 23582 173...... 25137 119...... 26645 174...... 25137 301-10...... 24434 Proposed Rules: 301-51...... 24434 Proposed Rules: 1000...... 29964 181...... 25137 23...... 29962 187...... 25137 301-52...... 24434 25...... 27662 26 CFR 301-70...... 24434 34 CFR 301-75...... 24434 27...... 24501, 24502 1 ...... 26061, 27927, 27934 29...... 24502 Ch. II ...... 28714 302-6...... 24434 54...... 27122 302-9...... 24434 39 ...... 23194, 24824, 25124, 602...... 27122 25785, 25788, 25791, 26148, 36 CFR Proposed Rules: 42 CFR 26681, 26888, 26889, 27487, 54...... 27141 251...... 24801 27489, 27491, 27665, 27668, 5a...... 29447 27956, 27959, 27961, 27964, 27 CFR 37 CFR 410...... 26350 27966, 27969, 27972, 27973, 411...... 26350 Proposed Rules: Proposed Rules: 28504, 28506, 29466 414...... 26350 9...... 29686 201...... 27248 71 ...... 23636, 24504, 26148, 415...... 26350 26150, 26151, 26891, 27229, 28 CFR 38 CFR 424...... 24437 27493, 27494, 27495, 27496, 431...... 24437 20...... 24796 Proposed Rules: 27670, 28765, 29963 447...... 30244 540...... 25110 1...... 24510, 26160 91...... 29466 457...... 30244 17...... 26683 93...... 29471 Proposed Rules: 485...... 26350 62...... 24514 110...... 25127 2...... 28221 498...... 26350 26...... 29217 119...... 25127 39 CFR Proposed Rules: 121...... 25127 29 CFR 5...... 26167 129...... 25127 111...... 29662, 29893 50...... 28688 135...... 25127 471...... 28368 232...... 28204 84...... 29699 570...... 28404 Proposed Rules: 412...... 23852 15 CFR 579...... 28404 111...... 24534 413...... 23852 744...... 29884 1202...... 26062 440...... 23852 748...... 25763, 27185 1206...... 26062 40 CFR 441...... 23852 1910...... 27188 Proposed Rules: 9...... 29429 482...... 23852, 29479 29...... 29215 1915...... 27188 51...... 27191, 27643 485...... 23852, 29479 1926...... 27188, 27428 52 ...... 23167, 24404, 24406, 489...... 23852 16 CFR 2590...... 27122 24408, 25770, 25772, 25775, 43 CFR Proposed Rules: 4022...... 27189 25778, 26102, 26113, 26118, 1102...... 29156 Proposed Rules: 26653, 27191, 27643, 27644, 8360...... 27452 1107...... 28336 1904...... 24505 27647, 27938, 27944, 29671, 44 CFR 1109...... 28208 1910 ...... 23677, 24509, 24835, 29894, 29897 1120...... 27497, 27504 27237, 27239, 28862 80...... 26026, 26121 64...... 24820, 28492 1915...... 27239 81 ...... 24409, 26113, 26118, 65 ...... 23593, 29195, 29197, 17 CFR 1926...... 27239 27944 29199, 29201, 29205, 29208, Proposed Rules: 2700...... 28223 82...... 23167, 25781 29210, 29211 200...... 23328 85...... 25324 67 ...... 23595, 23600, 23608, 30 CFR 229...... 23328 86...... 25324 28497 230...... 23328 250...... 23582 131...... 29899 Proposed Rules: 232...... 23328 174...... 29431 67 ...... 23615, 23620, 28511, 31 CFR 239...... 23328 180 ...... 24421, 24428, 26652, 29219, 29238, 29246, 29253, 240...... 23328 363...... 26089 26668, 26673, 27434, 27443, 29258, 29264, 29268, 29290, 243...... 23328 551...... 24394 28488, 29435, 29441, 29901, 29296 249...... 23328 Proposed Rules: 29908 210...... 27239 300...... 26131, 27192 45 CFR 18 CFR 600...... 25324 144...... 27122 1b...... 24392 32 CFR 721...... 29429 146...... 27122 40...... 26057 551...... 24394 745...... 24802 147...... 27122

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149...... 24450 64...... 26701 225...... 25167 173...... 27273 159...... 24470 73...... 27977 227...... 25161 213...... 25928 Proposed Rules: 76...... 27256, 27264 234...... 25165 220...... 27672 94...... 28688 97...... 27272 242...... 25165 238...... 25928 160...... 23214 252 ...... 25160, 25161, 25165 578...... 29487 164...... 23214 48 CFR 904...... 28772 594...... 25169 212...... 27946 952...... 28772 46 CFR 222...... 27946 970...... 28772 50 CFR 388...... 28205 252...... 25119, 27946 9904...... 25982 21...... 29917 501...... 29451 928...... 29456 222...... 27649 502...... 29451 931...... 29456 49 CFR 300...... 27216 535...... 29451 932...... 29456 105...... 27205 622 ...... 23186, 24822, 26679, Proposed Rules: 933...... 29456 107...... 27205 27217, 27658, 28760 520 ...... 25150, 26906, 28516 935...... 29456 171...... 27205 635...... 26679, 27217 532 ...... 25150, 26906, 28516 936...... 29456 173...... 27205 640...... 27217 937...... 29456 174...... 27205 648 ...... 27219, 27221, 28762, 47 CFR 941...... 29456 176...... 27205 29459, 29678 0...... 28206 942...... 29456 177...... 27205 654...... 26679, 27217 2...... 29677 949...... 29456 179...... 27205 660 ...... 23615, 23620, 24482 54...... 25113, 26137 950...... 29456 383...... 28499 679...... 23189, 28502 64...... 29914 951...... 29456 389...... 29915 Proposed Rules: 73...... 25119, 27199 952...... 29456 391...... 28499 17 ...... 23654, 24545, 27690, 90...... 29677 Proposed Rules: 531...... 25324 29700 95...... 29677 4...... 28771 533...... 25324 20...... 27144 97...... 27200 24...... 26916 536...... 25324 83...... 24862 Proposed Rules: 49...... 28228 537...... 25324 223...... 29489 Ch. I...... 26171, 26180 52...... 28771 538...... 25324 224...... 25174 1...... 28517 207...... 25159 Proposed Rules: 253...... 24549 15...... 27256 211...... 25160 26...... 25815 660...... 26702 17...... 28517 212...... 25161 40...... 26183 665...... 28540 54...... 25156, 26906 215...... 25165 171...... 27273 697...... 26703

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The text of laws is not H.R. 3714/P.L. 111–166 enacted public laws. To published in the Federal Daniel Pearl Freedom of the subscribe, go to http:// LIST OF PUBLIC LAWS Register but may be ordered Press Act of 2009 (May 17, listserv.gsa.gov/archives/ in ‘‘slip law’’ (individual 2010; 124 Stat. 1186) publaws-l.html This is a continuing list of pamphlet) form from the public bills from the current Superintendent of Documents, Last List May 19, 2010 session of Congress which U.S. Government Printing Note: This service is strictly have become Federal laws. It Office, Washington, DC 20402 for E-mail notification of new may be used in conjunction (phone, 202–512–1808). The Public Laws Electronic laws. The text of laws is not with ‘‘P L U S’’ (Public Laws text will also be made Notification Service available through this service. Update Service) on 202–741– available on the Internet from (PENS) PENS cannot respond to 6043. This list is also GPO Access at http:// specific inquiries sent to this available online at http:// www.gpoaccess.gov/plaws/ address. www.archives.gov/federal- index.html. Some laws may PENS is a free electronic mail register/laws.html. not yet be available. notification service of newly

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