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2 III

Contents Federal Register Vol. 62, No. 112

Wednesday, June 11, 1997

Agricultural Marketing Service Commodity Futures Trading Commission RULES RULES Spearmint oil produced in Far West, 31704–31707 Bankruptcy: NOTICES Chicago Board of Trade—London International Financial Agency information collection activities: Futures and Options Exchange Trading Link; Proposed collection; comment request, 31779–31780 distribution of customer property related to trading, 31708–31713 Agriculture Department See Agricultural Marketing Service Consumer Product Safety Commission See Animal and Plant Health Inspection Service NOTICES See Forest Service Meetings; Sunshine Act, 31793 See Grain Inspection, Packers and Stockyards Administration Customs Service NOTICES RULES Agency information collection activities: Merchandise, special classes: Submission for OMB review; comment request, 31779 Archaeological and ethnological material from— Peru, 31713–31721 Air Force Department NOTICES Defense Department Privacy Act: See Air Force Department Systems of records, 31793–31798 See Army Department See Defense Logistics Agency Animal and Plant Health Inspection Service NOTICES Defense Logistics Agency Environmental statements; availability, etc.: NOTICES Genetically engineered organisms; field test permits— Privacy Act: Rice plants, etc., 31780–31781 Computer matching programs, 31799–31801 Uruguay Round Agreements (URAA): International sanitary and phytosanitary standard-setting Education Department activities, 31781–31785 NOTICES Agency information collection activities: Army Department Submission for OMB review; comment request, 31801 NOTICES Environmental statements; availability, etc.: Employment and Training Administration Camp Roberts Army National Guard Training Site, CA; NOTICES combined-forces training activities, etc., 31798–31799 Agency information collection activities: Joint Vaccine Acquisition Program, 31799 Proposed collection; comment request, 31845–31846 Job Training Partnership Act: Arts and Humanities, National Foundation Annual Service Delivery Area Report See National Foundation on the Arts and the Humanities Correction, 31865

Centers for Disease Control and Prevention Employment Standards Administration NOTICES NOTICES Grants and cooperative agreements; availability, etc.: Minimum wages for Federal and federally-assisted Occupational safety and health— construction; general wage determination decisions, Composting; respiratory exposure hazards assessment, 31846–31848 31825–31830 Uranium milling; epidemiologic studies to evaluate Energy Department health effects, 31822–31825 See Federal Energy Regulatory Commission

Coast Guard Environmental Protection Agency RULES RULES Drawbridge operations: Air quality implementation plans; approval and California, 31723–31724 promulgation; various States: Mississippi, 31722–31723 Arizona, 31734–31738 Pennsylvania, 31732–31734, 31738–31740 Commerce Department PROPOSED RULES See Export Administration Bureau Air pollutants, hazardous; national emission standards: See International Trade Administration Hazardous air pollutants list; additions and deletions— See National Oceanic and Atmospheric Administration Research and development facilities, 31776–31777 IV Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Contents

Air quality implementation plans; approval and Applications, hearings, determinations, etc.: promulgation; various States: ANR Pipeline Co., 31801 Arizona, 31775–31776 CEA Philippines Holdings LLC, 31802 Pennsylvania, 31775, 31776 CNG Transmission Corp., 31802 NOTICES Colorado Interstate Gas Co., 31802–31803 Pesticide registration, cancellation, etc.: Columbia Gas Transmission Corp., 31803 Carbaryl et al., 31816–31819 El Paso Electric Co., 31803 El Paso Natural Gas Co., 31804 Executive Office of the President Gas Transport, Inc., 31804 See Presidential Documents Granite State Gas Transmission, Inc., 31804 Great Lakes Gas Transmission L.P., 31804 Export Administration Bureau Iroquois Gas Transmission System, L.P., 31805 NOTICES Kern River Gas Transmission Co., 31805 Agency information collection activities: KN Interstate Gas Transmission Co., 31805 Proposed collection; comment request; correction, 31786 Koch Gateway Pipeline Co., 31805–31806 Farm Credit Administration National Fuel Gas Supply Corp., 31806 NOTICES NorAm Gas Transmission Co., 31806–31807 Meetings; Sunshine Act, 31819–31820 Ozark Gas Transmission System, 31807 Pacific Gas & Electric Co., 31807 Federal Aviation Administration Pacific Gas Transmission Co., 31807–31808 RULES Southern Natural Gas Co., 31808–31809 Airworthiness standards: South Georgia Natural Gas Co., 31808 Special conditions— Tampa Electric Co., 31809 LET Aeronautical Works model L610G airplane, Texas Gas Transmission Corp., 31809 31707–31708 Transcontinental Gas Pipe Line Corp., 31809–31810 PROPOSED RULES West Texas Gas, Inc., 31810 Airworthiness directives: Williams Natural Gas Co., 31810 Fairchild, 31766–31769 Williston Basin Interstate Pipeline Co., 31810–31811 Class E airspace, 31769–31771 Wisconsin Public Service Corp., 31811 NOTICES Advisory circulars; availability, etc.: Federal Reserve System Airport lighting, 31859 NOTICES Auxiliary power unit rotor failure and uncontained Banks and bank holding companies: turbine engine; design considerations for minimizing Change in bank control, 31820 hazards, 31860 Formations, acquisitions, and mergers, 31820–31821 Environmental statements; availability, etc.: Los Angeles International Airport, CA; meetings, 31860– 31861 Federal Trade Commission Exemption petitions; summary and disposition, 31861– NOTICES 31862 Prohibited trade practices: Passenger facility charges; applications, etc.: Sears, Roebuck, and Co., 31821–31822 T.F. Green State Airport, RI, 31862 Fish and Wildlife Service Federal Communications Commission RULES RULES Endangered and threatened species: Common carrier services: Golden paintbrush, 31740–31748 Access charges— Guajon, 31757–31762 Local exchange carriers; price cap performance review, Steller’s eider (Alaska breeding population), 31748–31757 etc., 31868–31939 Local exchange carriers; price cap performance review, 31939–31941 Food and Drug Administration PROPOSED RULES RULES Personal communication services: Food for human consumption: Broadband PCS C and F block installment payment Canning low-acid foods in hermetically sealed containers; issues, 31777–31778 safe manufacturing, processing, and packaging procedures; technical amendment, 31721–31722 Federal Election Commission PROPOSED RULES NOTICES Medical devices: Meetings; Sunshine Act, 31820 General and plastic surgery devices— Tweezer-type epilator; reclassification, 31771–31775 Federal Energy Regulatory Commission NOTICES NOTICES Agency information collection activities: Electric rate and corporate regulation filings: Proposed collection; comment request, 31830–31831 American Ref-Fuel Co. of Delaware County, L.P., et al., GRAS or prior-sanctioned ingredients: 31811–31813 Beatrice Foods, Inc.; withdrawn, 31831 Northeast Empire L.P. No. 2, 31813–31815 Medical devices; premarket approval: Environmental statements; notice of intent: Millenium Medical Supply, Inc.; Needle-Ease 2501, Idaho Power Co., 31815–31816 31831–31832 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Contents V

Meetings: International Trade Administration Center for Biologics Evaluation and Research; refusal to NOTICES file practices use, standing oversight committee Antidumping: review, 31832 Cut-to-length carbon steel plate from— People’s Republic of China, 31972–31979 Forest Service Russian Federation, 31967–31972 NOTICES South Africa, 31963–31967 Environmental statements; notice of intent: Ukraine, 31958–31963 Hiawatha National Forest, MI; Perkins-Manistique 138 kV Hot-rolled lead and bismuth carbon steel products from— transmission line project, 31785–31786 United Kingdom, 31787–31789 Welded stainless steel pipe from— General Services Administration Korea, 31789–31790 RULES Antidumping and countervailing duties: Federal property management: Administrative review requests, 31786–31787 Motor equipment management— Justice Department Fuel economy standard, etc.; correction, 31740 See National Institute of Corrections RULES Government Ethics Office Conflict of interests RULES Correction, 31865 Conflict of interests: NOTICES Post-emmployment restrictions; exemption of positions Pollution control; consent judgments: and revision of departmental component Gold Fields Mining Corp., 31843–31844 designations Correction, 31865 Labor Department See Employment and Training Administration Grain Inspection, Packers and Stockyards Administration See Employment Standards Administration RULES See Occupational Safety and Health Administration Fees: NOTICES Official inspection and weighing services, 31701–31704 Agency information collection activities: Proposed collection; comment request, 31844–31845 Health and Human Services Department Land Management Bureau See Centers for Disease Control and Prevention See Food and Drug Administration NOTICES See Health Resources and Services Administration Environmental statements; availability, etc.: See National Institutes of Health Salt Lake District, Box Elder Resource Management Plan, See Public Health Service UT, 31839 Environmental statements; notice of intent: Kingman, AZ; scoping period; meetings, 31839–31840 Health Resources and Services Administration NOTICES Maritime Administration Agency information collection activities: NOTICES Proposed collection; comment request, 31832–31835 Agency information collection activities: Proposed collection; comment request, 31862–31863 Housing and Urban Development Department Meetings: RULES Voluntary Intermodal Sealift Agreement, 31863 Community facilities: Youthbuild program; application and grant award process National Archives and Records Administration removed, 31954–31955 RULES PROPOSED RULES Public availability and use: Community development block grants: Restrictions on use of records— New York small cities program, 31944–31951 USIA materials, prepared for dissemination abroad, in NOTICES custody; domestic distribution, 31724–31725 Grants and cooperative agreements; availability, etc.: Milton S. Eisenhower Foundation, 31837–31838 National Foundation on the Arts and the Humanities Public and Indian housing— NOTICES Drug Elimination Technical Assistance Program; Meetings: correction, 31838–31839 Combined Arts Advisory Panel, 31849–31850 Real Estate Settlement Procedures Act: Special information booklet; revision, 31982–32011 National Institute of Corrections NOTICES Interior Department Meetings: See Fish and Wildlife Service Advisory Board, 31845 See Land Management Bureau See National Park Service National Institutes of Health NOTICES NOTICES Meetings: Inventions, Government-owned; availability for licensing, Exxon Valdez Oil Spill Public Advisory Group, 31839 31836 VI Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Contents

Meetings: Personnel Management Office Division of Research Grants Special Emphasis Panel, PROPOSED RULES 31835–31836 Pay administration: National Cancer Institute, 31836–31837 Child support, alimony and commercial garnishment of Federal employees’ pay; processing, 31763–31766 National Oceanic and Atmospheric Administration NOTICES Postal Service Gulf of Mexico and southeastern U.S. Atlantic coastal RULES waters; shrimp virus risk assessment and meetings, Civil and criminal forfeitures, remission or mitigation 31790–31791 petitions; procedures, 31726–31732 Meetings: Gulf of Mexico Fishery Management Council, 31791 Presidential Documents Mid-Atlantic Fishery Management Council, 31791–31792 ADMINISTRATIVE ORDERS Modernization Transition Committee, 31792 Albania, Belarus, Kazakstan, Kyrgyzstan, Tajikistan, North Pacific Fishery Management Council, 31792 Turkmenistan, and Uzbekistan; Trade Act of 1974; Pacific Fishery Management Council, 31792–31793 Continuation of waiver authority (Presidential Determination No. 97–28 of June 3, 1997), 32019 National Park Service Armenia, Azerbaijan, Georgia, Moldova, and Ukraine; Trade NOTICES Act of 1974; emigration policies (Presidential Native American human remains and associated funerary Determination No. 97–27 of June 3, 1997), 32017 objects: Yugoslavia, Federal Republic (Serbia and Montenegro); Anthropology Department, Central Washington assistance, waiver of prohibition (Presidential University— Determination No. 97–26 of May 30, 1997), 32015 Inventory from Prince William Sound, AK, 31841 Inventory from Washington State, 31840–31841 Public Health Service Burke Museum, University of Washington, WA— See Centers for Disease Control and Prevention Inventory from Hartstine Island, 31841–31842 See Food and Drug Administration Milwaukee Public Museum, WI; cultural items, 31842 See Health Resources and Services Administration Springfield Science Museum, MA; inventory from See National Institutes of Health Hawaii, 31842–31843 NOTICES National toxicology program: National Science Foundation Toxicology and carcinogenesis studies— NOTICES Phenolphthalein, 31837 Meetings: Human Resource Development Special Emphasis Panel, Securities and Exchange Commission 31850 NOTICES Materials Research Special Emphasis Panel, 31850 Self-regulatory organizations; proposed rule changes: Physics Special Emphasis Panel, 31850–31851 National Association of Securities Dealers, Inc., 31854– Research, Evaluation and Communication Special 31857 Emphasis Panel, 31851 Pacific Exchange, Inc., 31857–31858 Small Business Administration Northeast Dairy Compact Commission NOTICES NOTICES Agency information collection activities: Meetings, 31851 Submission for OMB review; comment request, 31858– 31859 Nuclear Regulatory Commission NOTICES Surface Transportation Board Agency information collection activities: NOTICES Submission for OMB review; comment request, 31851– Railroad operation, acquisition, construction, etc.: 31852 Paducah & Louisville Railway, 31863 Reports; availability, etc.: Tritium producing burnable absorber rod lead test Transportation Department assembly, 31853 See Coast Guard Applications, hearings, determinations, etc.: See Federal Aviation Administration Northern States Power Co., 31852–31853 See Maritime Administration See Surface Transportation Board Occupational Safety and Health Administration NOTICES NOTICES Agency information collection activities: Agency information collection activities: Submission for OMB review; comment request, 31859 Proposed collection; comment request, 31848–31849 Treasury Department Peace Corps See Customs Service NOTICES NOTICES Agency information collection activities: Notes, Treasury: Submission for OMB review; comment request, 31853– Large position reports, call for; 6 1/4 percent notes 31854 (February 2007), 31863–31864 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Contents VII

United States Information Agency Part VI NOTICES Department of Housing and Urban Development, 31982– Art objects; importation for exhibition: 32011 Holocaust, a living memorial, 31864 Part VII Separate Parts In This Issue The President, 32015–32019

Part II Federal Communications Commission, 31868–31941 Reader Aids Part III Additional information, including a list of public laws, Department of Housing and Urban Development, 31944– telephone numbers, reminders, and finding aids, appears in 31951 the Reader Aids section at the end of this issue. Part IV Department of Housing and Urban Development, 31954– 31955 Electronic Bulletin Board Free Electronic Bulletin Board service for Public Law Part V numbers, Federal Register finding aids, and a list of Department of Commerce, International Trade documents on public inspection is available on 202–275– Administration, 31958–31979 1538 or 275–0920. VIII Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Contents

CFR PARTS AFFECTED IN THIS ISSUE

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

3 CFR Administrative Orders: Presidential Determinations: No. 97±26 of May 30, 1997 ...... 32015 No. 97±27 of June 3, 1997 ...... 32017 No. 97±28 of June 3, 1997 ...... 32019 5 CFR 2641...... 31866 3801...... 31866 Proposed Rules: 581...... 31763 582...... 31763 7 CFR 800...... 31701 985...... 31704 14 CFR 25...... 31707 Proposed Rules: 39...... 31766 71 (2 documents) ...... 31769, 31770 17 CFR 190...... 31708 19 CFR 12...... 31713 21 CFR 113...... 31721 Proposed Rules: 878...... 31771 24 CFR 585...... 31954 Proposed Rules: 570...... 31944 28 CFR 45...... 31866 33 CFR 117 (2 documents) ...... 31722, 31723 36 CFR 1256...... 31724 39 CFR 233...... 31726 40 CFR 52 (3 documents) ...... 31732, 31734, 31738 Proposed Rules: 52 (3 documents) ...... 31775, 31776 63...... 31776 41 CFR 101±38...... 31740 47 CFR 61 (2 documents) ...... 31868, 31939 69...... 31868 Proposed Rules: 1...... 31777 50 CFR 17 (3 documents) ...... 31740, 31748, 31757 31701

Rules and Regulations Federal Register Vol. 62, No. 112

Wednesday, June 11, 1997

This section of the FEDERAL REGISTER Executive Order 12988 Information Collection and contains regulatory documents having general This final rule has been reviewed Recordkeeping Requirements applicability and legal effect, most of which are keyed to and codified in the Code of under Executive Order 12988, Civil In compliance with the Paperwork Federal Regulations, which is published under Justice Reform. This action is not Reduction Act of 1995 (44 U.S.C. 50 titles pursuant to 44 U.S.C. 1510. intended to have a retroactive effect. Chapter 35), the previously approved The USGSA provides in § 87g that no information collection and The Code of Federal Regulations is sold by subdivision may require or impose any recordkeeping requirements have been the Superintendent of Documents. Prices of requirements or restrictions concerning approved by the Office of Management new books are listed in the first FEDERAL the inspection, weighing, or description and Budget under control number 0580– REGISTER issue of each week. of grain under the Act. Otherwise, this 0013. final rule will not preempt any State or local laws, regulations, or policies Background DEPARTMENT OF AGRICULTURE unless they present irreconcilable On May 13, 1997, GIPSA published in Grain Inspection, Packers and conflict with this final rule. There are the Federal Register (62 FR 26252) a Stockyards Administration no administrative procedures which proposal to increase by approximately 3 must be exhausted prior to any judicial percent certain fees it charges for official 7 CFR Part 800 challenge to provisions of this final rule. inspection and weighing services. A correction docket was published in the Effects on Small Entities RIN 0580±AA52 Federal Register (62 FR 28922) on May James R. Baker, Administrator, 28, 1997, which made non substantive Fees for Official Inspection and Official GIPSA, has determined that this final format and editorial changes to Table 1 Weighing Services rule will not have a significant of schedule A of section 800.71(a). economic impact on a substantial The USGSA requires FGIS to charge AGENCY: Grain Inspection, Packers and number of small entities, as defined in and collect reasonable fees for Stockyards Administration, USDA. the Regulatory Flexibility Act (5 U.S.C. performing official inspection and ACTION: Final rule. 601 et seq.). Most users of the official weighing services. The fees are to cover, inspection and weighing services do not as nearly as practicable, FGIS’ costs for SUMMARY: The Federal Grain Inspection meet the requirements for small entities. performing these services, including Service (FGIS) of the Grain Inspection, FGIS is required by statute to make related administrative and supervisory Packers and Stockyards Administration services available and to recover costs of costs. (GIPSA) is increasing by approximately providing such services, as nearly as The approximate 3-percent increase 3 percent fees it charges for certain of its practicable. in fees is designed to generate official inspection and weighing The fee revision is primarily additional revenue required to recover services performed in the United States applicable to entities engaged in the operational costs created by mandated under the United States Grain Standards export of grain. Under provisions of the cost-of-living increases to Federal Act (USGSA), as amended. The increase USGSA, most grain exported from U.S. salaries for GIPSA employees in fiscal covers hourly rates and certain unit export port locations must be officially year 1997. The average salary increase rates on tests performed at other than an inspected and weighed. Mandatory for GIPSA employees in fiscal year 1997 applicant’s facility. The increase is inspection and weighing services are is approximately 3 percent. The final designed to generate additional revenue provided by FGIS on a fee basis at 37 action is being taken immediately to required to recover operational costs export facilities. All of the export increase fiscal year 1997 revenue to created by mandated cost-of-living facilities are owned and managed by cover, in part, projected fiscal year 1997 increases to Federal salaries in fiscal multi-national corporations, large operational costs. year 1997. cooperatives, or public entities that do The current USGSA fees were EFFECTIVE DATE: June 15, 1997. not meet the criteria for small entities as published in the Federal Register on defined under the Regulatory Flexibility August 22, 1996 (61 FR 43301), and FOR FURTHER INFORMATION CONTACT: Act and the regulations issued became effective on October 1, 1996. George Wollam, USDA–GIPSA–ART, thereunder. Some users who request The current fee schedule is projected to Room 0623-South Building, STOP 3649, non-mandatory official inspection and generate approximately $22 million 1400 Independence Avenue, S.W., weighing services at other than export revenue for fiscal year 1997. This Washington, D.C., 20250–3649, locations could be considered small revenue is insufficient to recover Telephone (202) 720–0292, or FAX entities. However, this fee increase operating expenses in fiscal year 1997. (202) 720–4628, or E-Mail— merely reflects the cost-of-living This is 5.2 percent below estimated [email protected]. increases in Federal salaries for hourly fiscal year 1997 costs of $23.2 million. SUPPLEMENTARY INFORMATION: and certain unit fees. The approximate Similar losses have occurred over the 3-percent increase in fees will not have past 3 years with $753,000 in fiscal year Executive Order 12866 a significant impact on either small or 1994; $630,000 in fiscal year 1995; and This rule has been determined to be large entities. Additional revenue $1,273,000 in fiscal year 1996. These nonsignificant for the purpose of estimated for fiscal year 1997 is losses resulted in a retained earnings Executive Order 12866 and, therefore, projected to be $218,100 for a total of balance of only $922,000 at the has not been reviewed by the Office of $22.21 million in revenue projected for beginning of fiscal year 1997, Management and Budget. fiscal year 1997. significantly below a desired 3-month 31702 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations operating reserve of $6 million. With the One commentor also was of the view rule until 30 days after publication in fee increase, it is estimated that that the 15-day comment period did not the Federal Register (5 U.S.C. 553) $218,100 in additional revenue will be allow enough time to notify its members because: (1) Projected exports and the generated for fiscal year 1997. Total of the proposed action. As stated in the associated requests for official services costs for fiscal year 1997 are projected proposal, a 15-day comment period was for such grain are projected to decrease to be $23.2 million and revenues with deemed appropriate because projected in the coming months due to seasonal the fee increase for the last period of exports and the associated requests for and other adjustments; (2) given the fiscal year 1997 are projected to be official services for such grain are current level of the operating reserve, $22.21 million. projected to decrease in the coming the fee increase should be implemented A further adjustment of fees, months due to seasonal and other as soon as possible; and the effective including an adjustment to the per adjustments. Accordingly, given the date coincides with beginning of a metric ton administrative fee to recover current level of the operating reserve, it billing cycle. was deemed necessary to implement the indirect costs of field offices and List of Subjects in 7 CFR Part 800 headquarters and replenish the any fee increase that may result from operating reserve, is being considered this rulemaking as soon as possible. Administrative practice and and will be addressed in future Final Action procedure; Grain. For the reasons set out in the rulemaking. GIPSA is applying an approximate 3- preamble, 7 CFR part 800 is revised as percent increase to those hourly and Comment Review follows: certain unit rates in 7 CFR 800.71, Table FGIS received three comments from 1—Fees for Official Services Performed PART 800ÐGENERAL REGULATIONS trade associations during the 15-day at an Applicant’s Facility in an Onsite comment period. One commentor did FGIS Laboratory; Table 2—Services 1. The authority citation for part 800 not oppose the proposed increases to Performed at Other Than an Applicant’s continues to read as follows: existing fees; one was neutral on the Facility in an FGIS Laboratory; and Authority: Pub. L. 94–582, 90 Stat. 2867, proposed fee increase; and one did not Table 3—Miscellaneous Services. as amended (7 U.S.C. 71 et seq.) address the merits of the fee increase In reviewing the fee schedule to itself. All the commentors, however, identify fees that require a 3-percent 2. Section 800.71 is amended by encourage GIPSA to strengthen its increase, FGIS identified several fees revising Schedule A to read as follows: efforts to trim overhead and improve that under the current fee schedule are § 800.71 Fees assessed by the Service. operating efficiencies throughout the at levels that do not require any change. (a) * * * organization. GIPSA continuously Accordingly, those fees will remain the monitors its costs and strives to lessen same at this time. Schedule A.—Fees for Official overhead and improve operating It is found that good cause exists for Inspection and Weighing Services efficiencies. not postponing the effective date of this Performed in the United States

TABLE 1.ÐFEES FOR OFFICIAL SERVICES PERFORMED AT AN APPLICANT'S FACILITY IN AN ONSITE FGIS LABORATORY 1

Monday to Monday to Saturday, Friday (6 Friday (6 Sunday, a.m to 6 p.m. to 6 and Over- Holidays p.m.) a.m.) time 2

(1) Inspection and Weighing Services Hourly Rates (per service representative)

1-year contract ...... $23.80 $25.60 $33.40 $40.20 6-month contract ...... 25.80 27.60 35.40 46.20 3-month contract ...... 29.60 30.80 38.60 48.00 Noncontract ...... 34.00 36.00 44.20 54.20

(2) Additional Tests (cost per test, assessed in addition to the hourly rate) 3

(i) Aflatoxin (other than Thin Layer Chromatography) ...... $8.50 (ii) Aflatoxin (Thin Layer Chromatography method) ...... 20.00 (iii) Soybean protein and oil (one or both) ...... 1.50 (iv) Wheat protein (per test) ...... 1.50 (v) Sunflower oil (per test) ...... 1.50 (vi) Vomitoxin (qualitative) ...... 7.50 (vii) Vomitoxin (quantitative) ...... 12.50 (viii) Waxy corn (per test) ...... 1.50 (ix) Fees for other tests not listed above will be based on the lowest noncontract hour- ly rate...... (x) Other services ...... (a) Class Y Weighing (per carrier) ...... (1) Truck/container ...... 30 (2) Railcar ...... 1.25 (3) Barge ...... 2.50

(3) Administrative Fee (assessed in addition to all other applicable fees, only one administrative fee will be assessed when inspection and weighing services are performed on the same carrier).

(i) All outbound carriers (per-metric-ton) 4 (a) 1±1,000,000 ...... $ 0.090 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31703

TABLE 1.ÐFEES FOR OFFICIAL SERVICES PERFORMED AT AN APPLICANT'S FACILITY IN AN ONSITE FGIS LABORATORY 1Ð Continued

Monday to Monday to Saturday, Friday (6 Friday (6 Sunday, a.m to 6 p.m. to 6 and Over- Holidays p.m.) a.m.) time 2

(b) 1,000,001-1,500,000 ...... 0.082 (c) 1,500,001Ð2,000,000 ...... 0.042 (d) 2,000,001Ð5,000,000 ...... 0.032 (e) 5,000,001Ð7,000,000 ...... 0.017 (f) 7,000,001Ð ...... 0.002 (ii) Additional services (assessed in addition to all other fees) 3 (a) Submitted sample (per sampleÐgrade and factor) ...... 1.50 (b) Submitted sampleÐFactor only (per factor) ...... 0.70 1 Fees apply for original inspection and weighing, reinspection, and appeal inspection service include, but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be charged for service outside 25 miles as found in § 800.72 (a). 2 Overtime rates will be assessed for all hours in excess of 8 consecutive hours that result from an applicant scheduling or requesting service beyond 8 hours, or if requests for additional shifts exceed existing staffing. 3 Appeal and reinspection services will be assessed the same fee as the original inspection service. 4 The administrative fee is assessed on an accumulated basis beginning at the start of the Service's fiscal year (October 1 each year).

TABLE 2.ÐSERVICES PERFORMED AT OTHER THAN AN APPLICANT'S FACILITY IN AN FGIS LABORATORY 1 2

(1) Original Inspection and Weighing (Class X) Services (i) Sampling only (use hourly rates from Table 1) (ii) Stationary lots (sampling, grade/factor, & checkloading) (a) Truck/trailer/container (per carrier) ...... $17.80 (b) Railcar (per carrier) ...... 27.25 (c) Barge (per carrier) ...... 174.00 (d) Sacked grain (per hour per service representative plus an administrative fee per hundredweight) (CWT) ...... 0.02 (iii) Lots sampled online during loading (sampling charge under (i) above, plus): (a) Truck/trailer container (per carrier) ...... 9.75 (b) Railcar (per carrier) ...... 19.00 (c) Barge (per carrier) ...... 108.00 (d) Sacked grain (per hour per service representative plus an administrative fee per hundredweight) (CWT) ...... 0.02 (iv) Other services (a) Submitted sample (per sampleÐgrade and factor) ...... 10.25 (b) Warehouseman inspection (per sample) ...... 17.25 (c) Factor only (per factorÐmaximum 2 factors) ...... 4.20 (d) Checkloading/condition examination (use hourly rates from Table 1, plus an administrative fee per hundredweight if not previously assessed) (CWT) ...... 0.02 (e) Reinspection (grade and factor only. Sampling service additional, item (i) above) ...... 11.25 (f) Class X Weighing (per hour per service representative) ...... 45.00 (v) Additional tests (excludes sampling) (a) Aflatoxin (per testÐother than TLC method) ...... 25.25 (b) Aflatoxin (per testÐTLC method) ...... 100.75 (c) Soybean protein and oil (one or both) ...... 7.85 (d) Wheat protein (per test) ...... 7.85 (e) Sunflower oil (per test) ...... 7.85 (f) Vomitoxin (qualitative) ...... 25.25 (g) Vomitoxin (quantitative) ...... 30.25 (h) Waxy corn (per test) ...... 9.10 (i) Canola (per testÐ00 dip test) ...... 9.10 (j) Pesticide Residue Testing 3 (1) Routine Compounds (per sample) ...... 200.00 (2) Special Compounds (per service representative) ...... 100.00 (k) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1. (2) Appeal inspection and review of weighing service4 (i) Board Appeals and Appeals (grade and factor) 74.85 (a) Factor only (per factorÐmax 2 factors) ...... 38.25 (b) Sampling service for Appeals additional (hourly rates from Table 1). (ii) Additional tests (assessed in addition to all other applicable fees) (a) Aflatoxin (per test, other than TLC) ...... 25.25 (b) Aflatoxin (TLC) ...... 110.30 (c) Soybean protein and oil (one or both) ...... 15.45 (d) Wheat protein (per test) ...... 15.45 (e) Sunflower oil (per test) ...... 15.45 (f) Vomitoxin (per testÐqualitative) ...... 35.25 (g) Vomitoxin (per testÐquantitative) ...... 40.25 (h) Vomitoxin (per testÐHPLC Board Appeal) ...... 126.00 (i) Pesticide Residue Testing 3 (1) Routine Compounds (per sample) ...... 200.00 (2) Special Compounds (per service representative) ...... 100.00 31704 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

TABLE 2.ÐSERVICES PERFORMED AT OTHER THAN AN APPLICANT'S FACILITY IN AN FGIS LABORATORY 1 2ÐContinued (j) Fees for other tests not listed above will be based on the lowest noncontract hourly rate from Table 1. (iii) Review of weighing (per hour per service representative) 65.40 (3) Stowage examination (service-on-request) 3 (i) Ship (per stowage space) (minimum $250 per ship) ...... 50.00 (ii) Subsequent ship examinations (same as original) (minimum $150 per ship) ...... (iii) Barge (per examination) ...... 40.00 (iv) All other carriers (per examination) ...... 15.00 1 Fees apply for original inspection and weighing, reinspection, and appeal inspection service include, but are not limited to, sampling, grading, weighing, prior to loading stowage examinations, and certifying results performed within 25 miles of an employee's assigned duty station. Travel and related expenses will be charged for service outside 25 miles as found in § 800.72 (a). 2 An additional charge will be assessed when the revenue from the services in Schedule A, Table 2, does not cover what would have been col- lected at the applicable hourly rate as provided in § 800.72 (b). 3 If performed outside of normal business, 1±1/2 times the applicable unit fee will be charged. 4 If, at the request of the Service, a file sample is located and forwarded by the Agency for an official agency, the Agency may, upon request, be reimbursed at the rate of $2.50 per sample by the Service.

TABLE 3.ÐMISCELLANEOUS SERVICES 1

(1) Grain grading seminars (per hour per service representative) 2 ...... $45.00 (2) Certification of diverter-type mechanical samplers (per hour per service representative) 2 ...... 45.00 (3) Special weighing services (per hour per service representative) 2 (i) Scale testing and certification ...... 45.00 (ii) Evaluation of weighing and material handling systems ...... 45.00 (iii) NTEP Prototype evaluation (other than Railroad Track Scales) ...... 45.00 (iv) NTEP Prototype evaluation of Railroad Track ...... Scales (plus usage fee per day for test car) ...... 45.00 100.00 (v) Mass standards calibration and reverification ...... 45.00 (vi) Special projects ...... 45.00 (4) Foreign travel (per day per service representative) ...... 420.00 (5) Online customized data EGIS service ...... (i) One data file per week for 1 year ...... 500.00 (ii) One data file per month for 1 year ...... 300.00 (6) Samples provided to interested parties (per sample) ...... 2.50 (7) Divided-lot certificates (per certificate) ...... 1.50 (8) Extra copies of certificates (per certificate) ...... 1.50 (9) Faxing (per page) ...... 1.50 (10) Special mailing (actual cost) ...... (11) Preparing certificates onsite or during other than normal business hours (use hourly rates from Table 1) 1 Any requested service that is not listed will be performed at $45.00 per hour. 2 Regular business hours-Monday thru Friday-service provided at other than regular hours charged at the applicable overtime hourly rate.

Dated: June 6–5, 1997. final rule increasing the quantity of Administration Branch, Fruit and David R. Shipman, Class 3 (Native) spearmint oil produced Vegetable Division, AMS, USDA, room Acting Administrator. in the Far West that handlers may 2525, South Building, P.O. Box 96456, [FR Doc. 97–15267 Filed 6–10–97; 8:45 am] purchase from, or handle for, producers Washington, DC 20090–6456; telephone: BILLING CODE 3410±EN±P during the 1996–97 marketing year. This (202) 720–8139; Fax: (202) 720–5698. rule was recommended by the Small businesses may request Spearmint Oil Administrative information on compliance with this DEPARTMENT OF AGRICULTURE Committee (Committee), the agency regulation by contacting: Jay Guerber, responsible for local administration of Marketing Order Administration Agricultural Marketing Service the marketing order for spearmint oil Branch, Fruit and Vegetable Division, produced in the Far West. The AMS, USDA, P.O. Box 96456, room 7 CFR Part 985 Committee recommended this rule to 2525-S, Washington, DC 20090–6456; avoid extreme fluctuations in supplies [FV96±985±3 FIR] telephone (202) 720–2491; Fax: (202) and prices and thus help to maintain 720–5698. Spearmint Oil Produced in the Far stability in the Far West spearmint oil market. SUPPLEMENTARY INFORMATION: This rule West; Revision of the Salable Quantity is issued under Marketing Order No. and Allotment Percentage for Class 3 EFFECTIVE DATE: June 11, 1997. 985 (7 CFR part 985), regulating the (Native) Spearmint Oil for the 1996±97 FOR FURTHER INFORMATION CONTACT: handling of spearmint oil produced in Marketing Year Robert J. Curry, Northwest Marketing the Far West (Washington, Idaho, AGENCY: Agricultural Marketing Service, Field Office, Marketing Order Oregon, designated parts of Nevada, and USDA. Administration Branch, Fruit and Utah), hereinafter referred to as the ACTION: Final rule. Vegetable Division, AMS, USDA, 1220 ‘‘order.’’ This order is effective under SW Third Avenue, room 369, Portland, the Agricultural Marketing Agreement SUMMARY: The Department of Oregon 97204–2807; telephone: (503) Act of 1937, as amended (7 U.S.C. 601– Agriculture (Department) is adopting as 326–2043; Fax: (503) 326–7440; or 674), hereinafter referred to as the a final rule, without change, an interim Caroline C. Thorpe, Marketing Order ‘‘Act.’’ Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31705

The Department is issuing this rule in percent for Native spearmint oil for the reflect loss of base due to non- conformance with Executive Order 1996–97 marketing year. production of producer’s total annual 12866. The salable quantity is the total allotments. This adjustment resulted in This rule has been reviewed under quantity of each class of oil that a 900 pound loss of total industry base, Executive Order 12988, Civil Justice handlers may purchase from, or handle which is reflected in the calculations for Reform. Under the provisions of the for, producers during a marketing year. the revised salable quantity. marketing order now in effect, salable The salable quantity calculated by the This final rule finalizes the interim quantities and allotment percentages Committee is based on the estimated final rule that made an additional may be established for classes of trade demand. The total salable quantity amount of Native spearmint oil spearmint oil produced in the Far West. is divided by the total industry available by increasing the salable This rule continues an increase in the allotment base to determine an quantity which releases oil from the quantity of Native spearmint oil allotment percentage. Each producer is reserve pool. Only producers with produced in the Far West that may be allotted a share of the salable quantity Native spearmint oil in the reserve pool purchased from or handled for by applying the allotment percentage to will be able to use this increase in the producers by handlers during the 1996– the producer’s individual allotment base salable quantity. Prior to November 1, 97 marketing year, which ended on May for the applicable class of spearmint oil. 1996, producers without reserve pool oil 31, 1997. This rule will not preempt any The initial salable quantity and or producers with an insufficient supply State or local laws, regulations, or allotment percentages for Scotch and of reserve oil could have deficiencies in policies, unless they present an Native spearmint oils for the 1996–97 meeting their salable quantities filled by irreconcilable conflict with this rule. marketing year were recommended by producers having excess Native The Act provides that administrative the Committee at its September 26, spearmint oil. If all producers could use proceedings must be exhausted before 1995, meeting. The Committee their salable quantity, this 7 percent parties may file suit in court. Under recommended salable quantities of increase in the allotment percentage section 608c(15)(A) of the Act, any 989,303 pounds and 1,074,902 pounds, would have made an additional 135,276 handler subject to an order may file and allotment percentages of 55 percent pounds of Native spearmint oil available with the Secretary a petition stating that and 54 percent, respectively, for Scotch (1,989,659 x 7 percent). However, the order, any provision of the order, or and Native spearmint oils. A proposed Native spearmint oil producers having any obligation imposed in connection rule was published in the January 24, 25,546 pounds of Native spearmint oil with the order is not in accordance with 1996, issue of the Federal Register (61 will not be able to use their reserve pool law and request a modification of the FR 1855). Comments on the proposed deficiencies this marketing year. order or to be exempted therefrom. A rule were solicited from interested Deficiencies usually exist because of handler is afforded the opportunity for persons until February 23, 1996. No unplanned problems that may reduce a hearing on the petition. After the comments were received. Accordingly, spearmint production. Thus, rather than hearing the Secretary would rule on the based upon analysis of available 135,276 additional pounds being made petition. The Act provides that the information, a final rule establishing the available, this action continues to make district court of the United States in any salable quantities and allotment 113,730 additional pounds of Native district in which the handler is an percentages for Scotch and Native spearmint oil available to the market. inhabitant, or has his or her principal spearmint oils for the 1996–97 The following table summarizes the place of business, has jurisdiction to marketing year was published in the Committee recommendation: review the Secretary’s ruling on the March 20, 1996, issue of the Federal petition, provided an action is filed not Register (61 FR 11291). Native Spearmint Oil Recommendation later than 20 days after the date of the Pursuant to authority contained in (a) Actual Carry In on June 1, 1996: entry of the ruling. §§ 985.50, 985.51, and 985.52 of the The Far West spearmint oil industry order, at its November 14, 1996, 45,632 pounds is characterized by producers whose meeting, the Committee unanimously (b) 1995–96 Salable Quantity: 1,074,902 farming operations generally involve recommended that the allotment pounds more than one commodity and whose percentage for Native spearmint oil for (c) 1995–96 Available Supply: 1,120,534 income from farming operations is not the 1996-97 marketing year be increased pounds (a + b) exclusively dependent on the by 7 percent from 54 percent to 61 (d) Total Sales as of November 14, 1996: production of spearmint oil. The U.S. percent. This final rule increases the 1,036,058 pounds production of spearmint oil is 1996–97 marketing year salable quantity (e) Calculated Available Supply as of concentrated in the Far West, primarily of 1,074,902 pounds to 1,213,692 November 14, 1996: 84,476 pounds Washington, Idaho, and Oregon (part of pounds. (c–d) the area covered by the order). However, some Native spearmint oil (f) Reserve Deficiency Affecting Salable Spearmint oil is also produced in the producers did not produce all of their Quantity: 25,546 pounds Midwest. The production area covered individual salable quantities for the (g) Revised Total Allotment Base: by the order normally accounts for 1996–97 marketing year, or fill their 1,989,659 pounds approximately 75 percent of the annual deficiencies from the prior year’s (h) Recommended Allotment Percentage U.S. production of spearmint oil. production. The marketing order as of November 14, 1996: 61 percent This rule finalizes an interim final authorizes such producers to have their (i) Calculated Revised Salable Quantity: rule that increased the quantity of deficiencies filled by other producers 1,213,692 pounds (g x h) Native spearmint oil that handlers may who have production in excess of their (j) Actual Oil Available as Salable purchase from, or handle for, producers salable quantities. This is optional for Quantity: 1,188,146 pounds (i–f) during the 1996-97 marketing year, producers, but must be done before The Department, based on its analysis which ends on May 31, 1997. Thus, this November 1 of each marketing year. of available information, has determined rule finalizes the increase in the salable The original total industry allotment that an allotment percentage of 61 quantity from 1,074,902 pounds to base for Native spearmint oil for 1996– percent should be established for Native 1,213,692 pounds and the allotment 97 was established at 1,990,559 pounds spearmint oil for the 1996–97 marketing percentage from 54 percent to 61 and was revised to 1,989,659 pounds to year. This percentage will provide an 31706 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations increased salable quantity of 1,213,692 Far West spearmint oil may not be appears adequate to meet anticipated and a new allotment percentage from 54 classified as small entities. demand through May 31, 1997. percent to 61 percent for Native The Far West spearmint oil industry Without the increase in Native spearmint oil for the 1996–97 marketing is characterized by producers whose spearmint oil, the Committee believes year. farming operations generally involve the industry would not be able to meet This rule relaxes the regulation of more than one commodity, and whose market needs. As of November 14, 1996, Native spearmint oil and will allow income from farming operations is not 84,476 pounds of Native spearmint oil growers to meet market needs and exclusively dependent on the was available for market. Demand for improved returns. In conjunction with production of spearmint oil. Crop Native spearmint oil from December 1 to the issuance of this rule, the Department rotation is an essential cultural practice May 31 over the past five years has has reviewed the Committee’s revised in the production of spearmint for weed, ranged from a high of 245,661 pounds marketing policy statement for the insect, and disease control. A normal in 1991–92 to a low of 92,658 pounds 1996–97 marketing year. The spearmint producing operation would in 1992–93. The five year average is Committee’s marketing policy statement have enough acreage for rotation such 157,531 pounds. Therefore, given this has been reviewed under the provisions that the total acreage required to past history the industry would be as set forth in 7 CFR 985.50 and with produce the crop would be about one- unlikely to meet market demand other USDA guidelines. third spearmint and two-thirds without this change. When the Pursuant to requirements set forth in rotational crops. An average spearmint Committee made its initial the Regulatory Flexibility Act (RFA), producing farm would thus have to have recommendation for the establishment AMS has considered the economic considerably more acreage than would of the Native spearmint oil salable impact of this action on small entities. be planted to spearmint during any quantity and allotment percentage for Accordingly, AMS has prepared this given season. To remain economically the 1996–97 marketing year, it had final regulatory flexibility analysis. viable with the added costs associated anticipated that the year would end The purpose of the RFA is to fit with spearmint production, most with an ample available supply. This regulatory actions to the scale of spearmint producing farms would fall revision adds 113,730 pounds of Native business subject to such actions in order into the category of large businesses. spearmint oil to the amount available for market during the remainder of the that small businesses will not be unduly Small spearmint oil producers 1996–97 marketing year. or disproportionately burdened. represent a minority of farming Alternatives to this rule included not Marketing orders issued pursuant to the operations and are more vulnerable to to increase the available supply of Act, and rules issued thereunder, are market fluctuations. Such small farmers Native spearmint oil, which could unique in that they are brought about generally need to market their entire potentially hurt small producers. The through group action of essentially annual crop and do not have the Committee believes that the level small entities acting on their own resources to cushion seasons with poor recommended will meet market needs. behalf. Thus, both statutes have small spearmint oil returns. Conversely, large Annual salable quantities and entity orientation and compatibility. diversified producers have the potential allotment percentages have been issued There are 8 spearmint oil handlers to endure one or more seasons of poor for both classes of spearmint oil since subject to regulation under the spearmint oil markets because of the order’s inception. Reporting and marketing order and approximately 250 stronger incomes from alternate crops recordkeeping requirements have producers of spearmint oil in the which could support the operation for a remained the same for each year of regulated production area. Of the 250 period of time. Despite the advantage of regulation. Accordingly, this action will producers, approximately 135 producers larger producers, increasing the Native not impose any additional reporting or hold Class 1 (Scotch) oil allotment base, salable quantity and allotment recordkeeping requirements on either and approximately 115 producers hold percentage will help both large and small or large spearmint oil producers Class 3 (Native) oil allotment base. small producers by improving returns. and handlers. All reports and forms Small agricultural service firms are In addition, this change may potentially associated with this program are defined by the Small Business benefit the small producer more than reviewed periodically in order to avoid Administration (SBA)(13 CFR 121.601) large producers. This is because the unnecessary and duplicitous as those having annual receipts of less change ensures that small producers are information collection by industry and than $5,000,000, and small agricultural more likely to maintain a profitable cash public sector agencies. The Department producers have been defined as those flow and meet annual expenses. has not identified any relevant Federal whose annual receipts are less than In making this latest recommendation, rules that duplicate, overlap, or conflict $500,000. the Committee considered all available with this rule. Based on the SBA’s definition of information on supply and demand. The Finally, the Committee’s meeting was small entities, it is estimated that none 1996–97 marketing year began on June widely publicized throughout the of the eight handlers regulated by the 1, 1996. As required under § 985.50, the spearmint oil industry and all interested order would be considered small Committee reviewed at a public meeting persons were invited to attend and entities. All of the handlers are large and submitted to the Department, a participate on all issues. Interested corporations involved in the marketing policy that included the persons were also invited to submit international trading of essential oils following Native spearmint oil information on the regulatory and and the products of such essential oils. information: estimated quantity; informational impacts of this action on It is also estimated that 20 of the 135 estimated demand; prospective small businesses. Scotch spearmint oil producers and 10 production; estimated total allotment The interim final rule regarding this of the 115 Native spearmint oil base; quantity of reserve oil; oil prices; action was issued on January 3, 1997, producers would be classified as small market conditions; and whether the and published in the Federal Register entities under the SBA definition. This average price was expected to exceed (62 FR 1246, January 9, 1997), with an is based on production information parity. Handlers have indicated that effective date of January 9, 1997. That gathered from assessments. Thus, a with this action, the available supply of rule amended § 985.215 of the rules and majority of handlers and producers of both Scotch and Native spearmint oils regulations in effect under the order. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31707

That rule provided a 30-day comment Works Model L610G airplane. This to the ground in much the same manner period which ended February 10, 1997. airplane will have a novel or unusual as they would off a wing trailing edge. No comments were received. design feature associated with the use of LET’s use of the landing gear fairing After consideration of all relevant the landing gear fairing as an assist as an assist means results in features matter presented, including that means during an emergency evacuation. which are characteristic of both escape contained in the prior proposed, interim These special conditions contain the slides and overwing evacuation routes; final, and final rules in connection with additional safety standards that the therefore, the requirements for either the establishment of the salable Administrator considers necessary to configuration are insufficient by quantities and allotment percentages for establish a level of safety equivalent to themselves to assure that minimum Scotch and Native spearmint oils for the that established by the airworthiness standards are established. 1996–97 marketing year, the standards of 14 CFR part 25. These special conditions include Committee’s recommendation and other EFFECTIVE DATE: July 11, 1997. requirements pertinent to both overwing available information, it is found that to FOR FURTHER INFORMATION CONTACT: and non-overwing exits, as well as revise § 985.215 (61 FR 11291) to change Frank Tiangsing, Regulations Branch, additional criteria for this specific exit. the salable quantity and allotment ANM–114, Transport Airplane Type Certification Basis percentage for Native spearmint oil as Directorate, Aircraft Certification effective in the interim final rule (62 FR Service, FAA 1601 Lind Avenue SW, Under the provisions of 14 CFR 21.17, 1246), as hereinafter set forth, will tend Renton WA 98055–4056, (425) 227–121. LET must show the Model L610G meets to effectuate the declared policy of the the applicable provisions of part 25 as Act. SUPPLEMENTARY INFORMATION: amended by Amendments 15–1 through It is further found that good cause Background 25–70 thereon, except as follows: exists for not postponing the effective § 25.365 Amendment 25–71 date of this rule until 30 days after On April 25, 1990, LET Aeronautical § 25.571(e)(2) Amendment 25–72 publication in the Federal Register (5 Works applied for a type certificate for § 25.729 Amendment 25–75 U.S.C. 553) because this rule applies to the Model L610G airplane. On March § 25.905(d) Amendment 25–72 spearmint produced during the 1996–97 28, 1995, they applied for an extension marketing year, which ended May 31, of the original application in accordance If the Administrator finds that the 1997. Further, handlers are aware of this with 14 CFR 21.17(d)(2). The L610G is applicable airworthiness regulations rule, which was recommended at a a twin-engine, 40 passenger, high-wing (i.e., part 25 as amended) do not contain public meeting. Also, a 30-day comment airplane with a passenger emergency adequate or appropriate safety standards period was provided in the interim final exit configuration consisting of one pair for the Model 610G because of a novel rule and no comments were received. of Type I exits located at the aft end of or unusual design feature, special the cabin and a pair of Type III exits conditions are prescribed under the List of Subjects in 7 CFR Part 985 under the wing near the middle of the provisions of 14 CFR 21.16. In addition Marketing agreements, Oils and fats, cabin. to the applicable airworthiness Reporting and recordkeeping Type III exits are typically installed regulation and special conditions, the requirements, Spearmint oil. over the wings of the airplane. The are LET Aeronautical Works Model L610G allowed by part 25 to have a 27-inch must comply with the fuel vent and PART 985ÐSPEARMINT OIL step-down from the exit sill to the wing. exhaust emission requirements of 14 PRODUCED IN THE FAR WEST Additionally, if the escape route on the CFR part 34 and the noise certification Accordingly, the interim final rule wing terminates at a point more than six requirements of 14 CFR part 36. amending 7 CFR part 985 which was feet above the ground, means must be Special conditions, as appropriate, are published at 61 FR 1246 on January 9, provided to assist evacuees to reach the issued in accordance with 14 CFR 11.49 1997, is adopted as a final rule without ground. If the termination point is less after public notice, as required by 14 change. than six feet above the ground, then the CFR 11.28 and 11.29(b), and become assist means is not required. part of the type certification basis in Dated: June 4, 1997. Since this airplane is of a high-wing accordance with 14 CFR 21.17(a)(2). Robert C. Keeney, configuration, it is not practicable to Special conditions are initially Director, Fruit and Vegetable Division. incorporate overwing Type III exits. Part applicable to the model for which they [FR Doc. 97–15253 Filed 6–10–97; 8:45 am] 25 permits non-overwing, non-floor are issued. Should the type certificate BILLING CODE 3410±02±P level exits when certain conditions are for that model be amended later to satisfied. Included in these conditions is include any other model that the requirement for an assist means for incorporates the same novel or unusual DEPARTMENT OF TRANSPORTATION passengers and crew to egress from the design feature, the special conditions airplane to the ground when the exit sill would also apply to the other model Federal Aviation Administration height is more than six feet. This assist under the provisions of 14 CFR means must be an automatically erected 21.101(a)(1). 14 CFR Part 25 escape slide or equivalent, and must be Novel or Unusual Design Features [Docket No. NM±131, Special Conditions self-supporting on the ground. The sill No. 25±ANM±128] of the Type III exits on the L610G will The Model L610G will incorporate the be more than six feet above the ground; following novel or unusual design Special Conditions: LET Aeronautical therefore, an assist means will be feature: a Type III exit will be located Works Model L610G Airplane necessary. under each wing such that an evacuee AGENCY: Federal Aviation LET has positioned the Type III exits using the exit would step out onto the Administration (FAA), DOT. above the landing gear fairing such that main landing gear fairing. The evacuee ACTION: Final special conditions. the fairing will form a surface for would then slide or jump from the evacuees to use in lieu of what would landing gear fairing to the ground. SUMMARY: These final special conditions be provided by a wing. The evacuees 14 CFR 25.809(f) requires all non- are issued for the LET Aeronautical would then slide or jump off the fairing overwing exits more than six feet above 31708 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations the ground to be equipped with an necessary to address the possibility that gear fairing, where an evacuee would approved means to assist occupants in a fire on one side of the airplane could make first contact, shall not exceed 27 descending to the ground. also render the opposite side unusable. inches (ref. § 25.807(a)(3)). 14 CFR 25.809(h) similarly requires These special conditions are intended 3. The assist means must provide for all overwing exits having an escape to provided requirements which result safe evacuation of occupants, route which terminates at a point more in an evacuation system that is as considering all conditions of landing than six feet above the ground to be effective and safe as those envisioned by gear collapse. In addition, safe equipped with an assist means. The exit the regulations. Where appropriate, evacuation must be afforded via the for the Model L610G will be more than requirements have been drawn from Type III exit in the event of main six feet from the ground; however, the existing regulations. In other cases, new landing gear non-deployment. landing gear fairing surface will be requirements have been developed to 4. Exterior emergency lighting must within 27 inches of the lower exit sill. preserve the level of safety which is be provided for the assist means and all This distance corresponds to the inherent in the design of more areas of likely ground contact in allowable step-down for an overwing conventional exit arrangements or assist accordance with §§ 25.812(g)(1) (i) and Typing III exit. The distance from the means. (ii), and § 25.812(h)(1), as amended landing gear fairing to the ground is less through Amendment 25–58. than six feet. Discussion of Comments 5. The assist means must be 14 CFR 25.809(f) also requires that Notice of Proposed Special demonstrated to provide an adequate assist means be automatically erected Conditions No. SC–96–4–NM for the egress rate for the number of passengers during exit opening. Strictly speaking, LET Aeronautical Works Model L610G requested. The passenger capacity, as the landing gear fairing does not satisfy airplane, was published in the Federal permitted by § 25.807(c)(1), Table 1, this requirement since opening the exit Register on August 16, 1996. No may be reduced if satisfactory Type III is not correlated to the availability of the comments were received. exit performance cannot be assist means; however, since the fairing Applicability demonstrated. is a fixed piece of airplane structure it 6. It must be shown that a landing is always available for use. As discussed above, these special gear fire occurring on one side of the The regulations also require that an conditions are applicable to the LET airplane is unlikely to render the assist means be self-supporting on the Aeronautical Works Model L610G opposite exit unusable. ground. This requirement has been airplane. Should LET Aeronautical 7. The assist means must be shown to interpreted to mean that the assist Works apply at a later date for a change be as reliable as an escape slide means rests on the ground when in use to the type certificate to include another following exposure to the emergency such that an evacuee does not have to model incorporating the same novel or landing conditions that may be jump to the ground from the bottom of unusual design feature, the special encountered in service. In addition, safe the assist means. In the case of an conditions would apply to that model as evacuation from the airplane must be overwing exit where the terminating well under the provisions of 14 CFR afforded following the crash conditions edge of the escape route is less than six 21.101(a)(1). specified in § 25.561(b). feet from the ground, it is likely that evacuees might have to jump a short Conclusion Issued in Renton, Washington, on June 3, 1997. distance from the wing to the ground. This action affects only certain novel The Model L610G incorporates aspects or unusual design features on one model Darrell M. Pederson, of both of these exit arrangements, of airplanes. It is not a rule of general Acting Manager, Transport Airplane which are addressed in these special applicability, and it affects only the Directorate, Aircraft Certification Service, ANM–100. conditions. applicant who applied to the FAA for Other features of the exit arrangement approval of these features on the [FR Doc. 97–15311 Filed 6–10–97; 8:45 am] which involve both overwing and non- airplane. BILLING CODE 4910±13±M overwing exit considerations include marking, visibility, and width of the List of Subjects in 14 CFR Part 25 escape route. For the purposes of these Air transportation, Aircraft, Aviation COMMODITY FUTURES TRADING special conditions, this exit will be safety, Safety. COMMISSION treated as an overwing exit with respect The authority citation for these to these requirements. proposed special conditions is as 17 CFR Part 190 Other areas which are of particular follows: Distribution of Customer Property concern for this unusual exit Authority: 49 U.S.C. 106(g), 40113, 44701, Related to Trading on the Chicago arrangement are the effectiveness of the 44702, 44704. Board of TradeÐLondon International exit in the event of landing gear collapse Financial Futures and Options and the proximity of the escape route to The Special Conditions Exchange Trading Link the engines and wheel wells. Since a Accordingly, pursuant to the collapse of the landing gear could result authority delegated to me by the AGENCY: Commodity Futures Trading in some form of collapse of the landing Administrator, the following special Commission. gear fairing, the exit must be conditions are issued as part of the type ACTION: Final rules. demonstrated to be usable and provide certification basis for the LET for safe evacuation, considering all Aeronautical Works L610G airplane. SUMMARY: The Commodity Futures conditions of landing gear collapse. 1. The landing gear fairing must be Trading Commission (‘‘Commission’’) Since the Type III exits are directly established as an escape route in has adopted an additional amendment above the main landing gear, it is accordance with the dimensional, to Appendix B of its bankruptcy rules to possible that a fire originating in the reflectance, and slip resistant surface govern the distribution of property landing gear assembly could render requirements of § 25.803(e). where the debtor is a futures such an exit unusable. Due to the design 2. The step-down distance from the commission merchant (‘‘FCM’’) that of the Model L610G, it is considered exit sill to the surface of the landing maintains customer accounts that carry Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31709 or trade positions in Designated Chicago and Designated LIFFE Contracts 4 are deemed to be customer property under Board of Trade (‘‘CBT’’) Contracts at traded on the CBT, initially cleared by Section 4d(2) of the Act, or certain London International Financial Futures BOTCC and transferred to LCH. foreign currency margin deposited in and Options Exchange (‘‘LIFFE’’) or In the case of Designated CBT respect of Designated LIFFE Contracts is Designated LIFFE Contracts at CBT Contracts traded on LIFFE, the U.S. held in a Section 4d(2) clearing account, (‘‘Link Accounts’’) as well as non-Link FCM maintains a customer omnibus any customer net equity claim in respect accounts. This new distributional account with a LIFFE clearing member. of such Link property held by an FCM framework is intended to assure that Each day, LCH marks futures positions in a Link account would be treated as non-Link customers of such an FCM to a closing price, pays to and collects a customer net equity claim under Part would not be adversely affected by a from the LIFFE clearing member the 190 of the Commission’s rules 6 and shortfall in Section 4d(2) segregated difference between trade price and mark subchapter IV of chapter 7 of the funds caused by the operation of the price, pays and collects option Bankruptcy Code (the commodity Link.1 premiums and, at the request of the broker liquidation provisions).7 In the EFFECTIVE DATE: June 11, 1997. LIFFE clearing member, nets positions case of an FCM bankruptcy, the FOR FURTHER INFORMATION CONTACT: Lois prior to their transfer to BOTCC at commodity broker liquidation J. Gregory, Attorney, Division of Trading approximately 10:00 a.m. Chicago time. provisions of the Bankruptcy Code and and Markets, Commodity Futures Bank settlement commitments are Part 190 of the Commission’s rules Trading Commission, Three Lafayette required in response to instructions for provide for a pro rata distribution of Centre, 1155 21st Street, N.W., Link variation obligations on trade date assets in proportion to net equity claims Washington, D.C. 20581. Telephone: (‘‘T’’), with payment made to LCH on among the Section 4d(2) customers (202) 418–5483. the next day (‘‘T+1’’). Also, if the CBT whose accounts are carried by such is closed for a holiday, LCH will hold FCM. Thus, absent some provision to SUPPLEMENTARY INFORMATION: positions in Designated CBT Contracts the contrary, if a participating FCM I. Introduction overnight and can call for margin. defaulted due to losses in its Link- Property of the customers of the U.S. related account(s), non-Link customers On April 22, 1997, the Commission FCM that accrues to such customers as published a proposed amendment to could be forced to share in losses the result of such trades or contracts generated by a shortfall in Link Appendix B of its bankruptcy rules to prior to their transfer to BOTCC or govern the distribution of property property. To avoid that result, the new which is deposited to margin, guarantee framework provides a rule of where the debtor is an FCM that or secure trades or contracts in maintains customer accounts that carry distribution that operates to subordinate Designated CBT Contracts at LIFFE is claims for Link property to Section or trade positions in Link accounts as deemed to be ‘‘Link property.’’ During well as non-Link accounts, and allowed 4d(2) claims overall. 2 the interval before transfer back from 15 days for comment thereon. The LCH to BOTCC, Link property at LCH III. New Bankruptcy Distribution in the Commission received one written may for operational purposes be held in Context of the CBT–LIFFE Link comment in response to the proposal, a foreign depository consistent with When the Commission adopted its from the Chicago Mercantile Exchange CFTC Advisory 87–5.5 Part 190 bankruptcy regulations,8 it (‘‘CME’’), which expressed its view that In the case of Designated LIFFE included an Appendix intended to it does not want the same approach Contracts traded on CBT, property facilitate the execution of a trustee’s automatically applied to linkage received by the U.S. FCM to margin, duties, forms concerning customer arrangements CME may develop with secure or guarantee trades is included in instructions for return of non-cash other exchanges. The Commission has the foreign futures and foreign options property and transfer of hedge contracts, considered this comment and has secured amount, pursuant to determined to adopt the additional and a proof of claim form. The Commission Regulation 30.7. The Commission later adopted Appendix B amendment to Appendix B of its Commission granted BOTCC its request bankruptcy rules as it was proposed. to provide guidance to a trustee on the for a no action position to permit certain appropriate distribution of property The new Framework 2 governs the excess foreign currency contained in distribution of customer property where an FCM’s customers cross- such secured amount account and margined non-proprietary futures related to trading on the CBT–LIFFE separately accounted for at the clearing Link, specifically. positions with certain securities organization to be used by FCM clearing positions.9 II. Trading in Link Contracts members to meet original margin The Commission has now adopted an The CBT, LIFFE and their respective requirements for U.S. contracts under extension of Appendix B which will clearing houses have commenced Section 4d(2) of the Act. Such excess subordinate claims for Link property to operation of a trading link (Link) property held in a combined BOTCC claims for non-Link property when a whereby Designated CBT Contracts 3 are account but applied to margin shortfall in Link property is greater than traded on LIFFE, initially cleared by the requirements for U.S. contracts as the shortfall, if any, of non-Link related London Clearing House Limited Section 4d(2) property is also treated as property. The new amendment follows (‘‘LCH’’), and transferred to the Board of ‘‘Link property’’ under Appendix B. the guiding principles of Appendix B to To the extent that positions in Trade Clearing Corporation (‘‘BOTCC’’), Part 190: to assure that generally there Designated CBT Contracts executed on is pro rata distribution to customers of LIFFE and property supporting or 1 The proposal to establish a Link arrangement the customer property in the bankrupt between CBT and LIFFE was approved by the accruing from those positions are FCM’s commodity interest estate and Commission on May 6, 1997. that the satisfaction of non-Link 2 62 FR 19530 4 Designated LIFFE Contracts currently consist of customer claims are not adversely 3 Designated CBT Contracts currently consist of German Government Bond futures and futures U.S. Treasury Bond futures and futures options. At options. At a later date, it is anticipated that British 6 a later date, it is anticipated that 10 year U.S. Gilt futures and futures options and futures options 17 CFR part 190. Treasury Note futures and futures options and 5 on the Italian Government Bond will be added. 7 11 U.S.C. 761–766. year U.S. Treasury Note futures and futures options 5 Comm. Fut. L. Rep., ¶ 23,997 (December 3, 8 48 FR 8716 (March 1, 1983). will be added. 1987). 9 59 FR 17468 (April 13, 1994). 31710 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations affected by a shortfall in the pool of Link customers would never receive less they do no elect to do so, thus the Link property. The new amendment than they would have received in the inception of Framework 2 of Appendix will assure that non-Link claims will absence of the Link. The new B. It should not in itself have a never receive less than they would have Framework to the Appendix is intended significant economic impact but rather received in the absence of the Link, but to eliminate the need for each customer should operate to facilitate the Link the distributional rule will not require who seeks to trade pursuant to the Link arrangement and to prevent unintended Link-related claims to be subordinated to execute a separate subordination economic consequences to customers in every instance. agreement. not electing to participate in the Link. Under new Framework 2, a B. Paperwork Reduction Act bankruptcy trustee handling the IV. Effective Date commodity interest estate of a bankrupt The Administrative Procedure Act The Paperwork Reduction Act of 1995 FCM with Link property first will requires the publication of a final (Pub. L. 104–13 (May 13, 1996)) imposes determine the respective shortfalls, if substantive rule not less than 30 days certain requirements on federal agencies any, in the pools of Link customer and before its effective date unless otherwise (including the Commission) in non-Link customer segregated funds. provided by the agency for good cause connection with their conducting or The trustee then will calculate the found and published with the rule. See sponsoring any collection of shortfall in each pool as a percentage of 5 U.S.C. 553(d)(3) (1994). The information as defined by the the segregation requirement for the pool. Commission is making this amendment Paperwork Reduction Act. While this In making this determination, any effective as of June 11, 1997. The rule has no burden, the group of rules shortfall in Link property held overseas Commission has determined that good (3038–0021) of which this is a part has could be offset in whole or in part by cause exists to make this amendment to the following burden: any excess funds held by the FCM in Appendix B of its bankruptcy rules Average burden hours per response— segregation in the United States. effective upon publication because a 0.35 If there is: (1) No shortfall in either of distributional framework for property of Number of Respondents—802 the two pools; (2) an equal percentage a U.S. FCM that participates in the Frequency of response—on occasion shortfall in the two pools; (3) a shortfall currently operational CBT–LIFFE Copies of the OMB approved in the non-Link pool only; or (4) a trading link must be put into place information collection package greater percentage of shortfall in the immediately in the unlikely event such associated with this rule may be non-Link pool than in the Link pool, FCM should become bankrupt. obtained from Desk Officer, CFTC, then the two pools of segregated funds Office of Management and Budget, V. Related Matters would be combined and Link customers Room 10202, NEOB Washington, D.C. and non-Link customers would share A. Regulatory Flexibility Act 20503, (202) 395–7340. 10 pro rata in the combined pool. The Regulatory Flexibility Act (RFA), List of Subjects in 17 CFR Part 190 However, if there were (1) a shortfall 5 U.S.C. § 601–611 (1988), requires that in the Link pool only, or (2) a greater Bankruptcy. agencies consider the impact of those Accordingly, the Commission percentage of shortfall in the Link pool rules on small businesses. These rules than in the non-Link pool, then the two pursuant to the authority contained in will affect distributees of a bankrupt the Commodity Exchange Act and, in pools of segregated funds would not be FCM’s estate where the FCM has combined.11 Rather, Link customers particular, Sections 1a, 2(a), 4c, 4d, 4g, entered into a Link Clearing Agreement 5, 5a, 8a, 15, 19 and 20 thereof, 7 U.S.C. would share pro rata in the pool of Link with a clearing member of LIFFE to segregated funds (including any excess 1a, 2 and 4a, 6c, 6d, 6g, 7, 7a, 12a, 19, transfer or accept the transfer of 23 and 24 (1994), and in the Bankruptcy funds held by the FCM in segregation in positions in Designated Link Contracts. the U.S.), while non-Link customers Code and, in particular Sections 362, The Chairperson, on behalf of the 546, 548, 556 and 761–766 thereof, 11 would share pro rata in the pool of non- Commission, hereby certifies pursuant Link segregated funds. Further, if a pool U.S.C. 362, 546, 548, 556 and 761–766 to 5 U.S.C. 605(b), that the action taken (1994), hereby amends Part 190 of of property initially would be treated as herein will not have a significant if it had a shortfall because frozen or Chapter I of title 17 of the Code of economic impact on a substantial Federal Regulation as follows: otherwise unavailable as the result of number of small entities. The new government action, and later the freeze Framework will eliminate the need for PART 190ÐBANKRUPTCY were lifted or funds became available, customers of FCMs who wish to subsequent distribution would not be participate in the Link to execute a 1. The authority citation for Part 190 permitted to result in customers for subordination agreement. Further, the continues to read as follows: whom funds were frozen receiving any distributional framework is intended to Authority: 7 U.S.C. 1a, 2, 4a, 6c, 6d, 6g, 7, greater distribution than a pro rata assure that non-Link customers of such 7a, 12, 19, 23 and 24 and 11 U.S.C. 362, 546, distribution for Section 4d (segregated FCM would not be disadvantaged by a 548, 566 and 761–766. funds) customers as a whole. To shortfall in the pool of Link funds. 2. Part 190 is amended by adding at facilitate this distributional framework, Persons participating in the Link will be the end of Appendix B the following two subclasses of customer accounts, a provided with special risk disclosure Framework 2: Link account and a non-Link account which includes disclosure covering the Appendix B to Part 190—Special are recognized. treatment of Link customer funds. The Bankruptcy Distributions Like the existing distribution system adoption of this bankruptcy for a bankrupt FCM with customer distributional rule merely provides a * * * * * claims related to cross-margining, the framework for fairly distributing new amendment would assure that non- Framework 2—Special Distribution of customer funds in the event of an FCM Customer Funds When FCM Participated in bankruptcy. As customers elect to the Trading of Designated Link Contracts 10 See examples 1, 2, 5 and 6 of Appendix B to part 190, Framework 2. undertake Link transactions customers Pursuant to the CBT–LIFFE Link 11 See examples 3 and 4 of Appendix B to part need not take the risks of the Link if The Commission has established the 190, Framework 2. upon reviewing the relevant disclosures following distributional convention with Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31711 respect to Section 4d customer funds held by of the Link subclass of accounts, will be Link segregated funds, and Link customer net a futures commission merchant (FCM) that combined and will be paid pro rata out of the equity claims will be paid pro rata out of the participates in the trading of Chicago Board total pool of available Link and non-Link available Link segregated funds. In this way, of Trade (‘‘CBT’’)-designated contracts customer funds. In the event that there is a non-Link customers would never be executed on the London International shortfall in the Link pool of customer adversely affected by a Link shortfall.1 Financial Futures and Options Exchange segregated funds, and there is no shortfall in The following examples illustrate the (‘‘LIFFE’’) or LIFFE-designated contracts the non-Link pool of customer segregated operation of this distributional convention. executed on CBT (‘‘Designated Link funds, customer net equity claims arising The examples assume that the FCM has two Contracts’’) pursuant to the CBT–LIFFE Link from the non-Link subclass of accounts shall customers, one with exclusively Link (‘‘Link’’) which shall apply if customers of be satisfied from the non-Link customer accounts and one with exclusively non-Link the FCM have been provided with a notice segregated funds, and customer net equity accounts. In practice, the FCM would have a which makes reference to this distributional claims arising from the Link subclass of customer omnibus account with a LIFFE rule and the form of such notice has been accounts shall be paid from the Link clearing member or would itself be a LIFFE approved by the Commission by rule, customer segregated funds (and, if clearing member with its own customer regulation or order. The maintenance of applicable, any excess funds held by the omnibus account. Positions in Designated property in a Link account would result in FCM in segregation in the U.S.). Furthermore, subordination of the claim for such property in the event that there is a shortfall in both CBT Contracts traded at LIFFE and initially to certain non-Link customer claims in the non-Link and Link pools of customer cleared by LCH would be allocated to this certain circumstances. This results in segregated funds: (1) If the non-Link shortfall customer omnibus account; following the subclasses of customer accounts required to as a percentage of the segregation transfer of the positions via the Link, the be segregated for purposes of Section 4d(2) of requirement in the non-Link pool is greater FCM would allocate the positions and any the Commodity Exchange Act: a Link account than or equal to the Link shortfall as a gains or losses to its customers’ accounts. and a non-Link account (a person could hold percentage of the segregation requirement in Accordingly, a customer who trades each type of account), and results in two the Link pool, customer net equity claims Designated CBT Contracts at LIFFE may have pools of customer segregated funds: a Link will be paid pro rata; and (2) if the Link the portion of his account which reflects his pool and a non-Link pool. shortfall as a percentage of the segregation activity in the customer omnibus account at In the event that there is a shortfall in the requirement in the Link pool is greater than LIFFE deemed a Link account and the non-Link pool of customer segregated funds, the non-Link shortfall as a percentage of the remainder of the account a non-Link account. and there is no shortfall in the Link pool of segregation requirement of the non-Link Effectively this will result in the customer customer segregated funds, customer net pool, non-Link customer net equity claims having two claims—one against Link equity claims, whether or not they arise out will be paid pro rata out of the available non- property and one against non-Link property.2

Non-link Link Total

1. Sufficient Funds to Meet Non-Link and Link Customer Claims:

Funds in segregation ...... 150 ...... 150 ...... 300 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 0 ...... 0 ...... Shortfall (percent) ...... 0 ...... 0 ...... Distribution ...... 150 ...... 150 ...... 300 There are adequate funds available, and both the non-Link and Link customer claims would be paid in full.

2. Shortfall in Non-Link Only:

Funds in segregation ...... 100 ...... 150 ...... 250 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 50 ...... 0 ...... Shortfall (percent) ...... 50/150=33.3 ...... 0 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 125 ...... 125 ...... Distribution ...... 125 ...... 125 ...... 250 Due to the non-Link account, there are insufficient funds available to meet both the non-Link and the Link customer claims in full. Each cus- tomer will receive his or her pro rata share of the funds available, or 50% of the $250 available, or $125.

3. Shortfall in Link Only:

Funds in segregation ...... 150 ...... 100 ...... 250 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 0 ...... 50 ...... Shortfall (percent) ...... 0 ...... 50/150=33.3 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 125 ...... 125 ...... Distribution ...... 150 ...... 100 ...... 250

1 Because Link property will be located offshore, 2 Certain other property of the customers of the foreign currency with a Section 4d(2) account to it is possible that such property could be frozen by U.S. FCM also will be treated as ‘‘Link property’’ permit certain property in excess of the required governmental action or become unavailable as the and part of the Link account for purposes of this secured amount to be used to meet original margin result of sovereign events. In that situation, should Framework 2. In the case of Designated LIFFE requirements for U.S. contracts under Section 4d(2) Contracts traded on CBT, property received by the such property subsequently become available, the of the Act. Such excess property held in a U.S. FCM to margin, guarantee or secure trades is Link property account may acquire no greater included in the foreign futures and foreign options ‘‘combined’’ account but applied to margin distributional share than Section 4d(2) (segregated secured amount, pursuant to Commission requirements for U.S. contracts as Section 4d(2) funds) customers generally. Regulation 30.7. The Order approving the CBT/ property would also be ‘‘Link property’’ under this LIFFE Link permits BOTCC to commingle certain Framework. 31712 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

Non-link Link Total

Due to the Link account, there are insufficient funds available to meet both the non-Link and Link Customer claims in full. Accordingly, the Link funds and non-Link funds are treated as separate pools, and the non-Link customer will be paid in full, receiving $150, while the Link cus- tomer would receive the remaining $100.

4. Shortfall in Both, Link Shortfall Exceeding Non-Link Shortfall:

Funds in segregation ...... 125 ...... 100 ...... 225 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 25 ...... 50 ...... Shortfall (percent) ...... 25/150=16.7 ...... 50/150=33.3 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 112.50 ...... 112.50 ...... Distribution ...... 125 ...... 100 ...... 225 There are insufficient funds available to meet both the non-Link and Link customer claims in full, and the Link shortfall exceeds the non-Link shortfall. The non-Link customer will receive $125 available with respect to non-Link claims while the Link customer will receive the $100 avail- able with respect to the Link claims.

5. Shortfall in Both, With Non-Link Shortfall Exceeding Link Shortfall:

Funds in segregation ...... 100 ...... 125 ...... 225 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 50 ...... 25 ...... Shortfall (percent) ...... 50/150=33.3 ...... 25/150=16.7 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 112.50 ...... 112.50 ...... Distribution ...... 112.50 ...... 112.50 ...... 225 There are insufficient funds available to meet both the non-Link and Link customer claims in full, and the non-Link shortfall exceeds the Link shortfall. Each customer would receive 50% of the $225 available, or $112.50.

6. Shortfall in Both, Non-Link Shortfall=Link Shortfall:

Funds in segregation ...... 100 ...... 100 ...... 200 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 50 ...... 50 ...... Shortfall (percent) ...... 50/150=33.3 ...... 50/150=33.3 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 100 ...... 100 ...... Distribution ...... 100 ...... 100 ...... 200 There are insufficient funds available to meet both the non-Link and the Link customer claims in full, and the non-Link shortfall equals the Link shortfall. Each customer will receive 50% of the $200 available, or $100.

7. Shortfall in Link Account Caused by Freeze That is Subsequently Lifted, Where Non-Link Account Had Actual Shortfall But Link Account Did Not Subsequent to Lifting of Freeze Order:

Funds in segregation ...... 100 ...... Frozen ...... 100 Segregation Requirement ...... 150 ...... 150 ...... 300 Shortfall (dollars) ...... 50 ...... 150 ...... Shortfall (percent) ...... 50/150=33.3 ...... 150/150=100 ...... Pro Rata (percent) ...... 150/300=50 ...... 150/300=50 ...... Pro Rata (dollars) ...... 50 ...... 50 ...... Initial Distribution ...... 100 ...... 0 ...... 100 Freeze Lifted: Funds Previously Frozen ...... 0 ...... 150 ...... 150 Subsequent Distribution ...... 25 ...... 125 ...... Total Distribution ...... 125 ...... 125 ...... 250 Through the time of the initial distribution, this situation would follow the pattern of Example 4 because the shortfall in the Link account was larger. After the freeze was lifted, it would follow the pattern of Example 2 because the shortfall in the non-Link account was larger. These examples illustrate the principle that Pro rata distribution across both accounts is the preferable approach except when a shortfall in the Link account could harm non-Link customers. Thus, pro rata distribution occurs in Examples 1, 2, 5 and 6. Separate treatment of the Link and non-Link accounts occurs in Examples 3 and 4. In Example 7, separate treatment occurs where the funds are frozen. It is adjusted to be- come pro rata treatment after the freeze is lifted. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31713

Issued in Washington, D.C. on June 5, 1997 in nature, is immeasurable. Such items Columbian archaeological materials of by the Commission. often constitute the very essence of a Peru dating to the Colonial period and Jean A. Webb, society and convey important certain Colonial ethnological material Secretary of the Commission. information concerning a people’s from Peru as the result of a bilateral [FR Doc. 97–15246 Filed 6–10–97; 8:45 am] origin, history, and traditional setting. agreement entered into between the BILLING CODE 6351±01±P The importance and popularity of such United States and Peru. This agreement items regrettably makes them targets of was entered into on June 9, 1997, theft, encourages clandestine looting of pursuant to the provisions of 19 U.S.C. archaeological sites, and results in their 2602. Protection of the archaeological DEPARTMENT OF THE TREASURY illegal export and import. material from the Sipan region Customs Service The U.S. shares in the international previously reflected in § 12.104g(b) will concern for the need to protect be continued through the bilateral 19 CFR Part 12 endangered cultural property. The agreement without interruption. appearance in the U.S. of stolen or Accordingly, § 12.104g(a) of the [T.D. 97±50] illegally exported artifacts from other Customs Regulations is being amended RIN 1515±AC17 countries where there has been pillage to indicate that restrictions have been has, on occasion, strained our foreign imposed pursuant to the agreement Archaeological and Ethnological and cultural relations. This situation, between the United States and Peru and Material From Peru combined with the concerns of the emergency import restrictions on museum, archaeological, and scholarly certain archaeological material from AGENCY: U.S. Customs Service, communities, was recognized by the Peru is being removed from § 12.104g(b) Department of the Treasury. President and Congress. It became as those restrictions are now ACTION: Final rule. apparent that it was in the national encompassed in § 12.104g(a). interest for the U.S. to join with other This document contains the SUMMARY: This document amends the countries to control illegal trafficking of Designated List of Archaeological and Customs Regulations to reflect the such articles in international commerce. Ethnological Material representing the imposition of import restrictions on The U.S. joined international efforts cultures of the native peoples of Peru certain archaeological material of Peru’s and actively participated in which are covered by the agreement. pre-Columbian past dating to the deliberations resulting in the 1970 Importation of articles on this list is Colonial period and certain Colonial UNESCO Convention on the Means of restricted unless the articles are ethnological materials of Peru. These Prohibiting and Preventing the Illicit accompanied by an appropriate export restrictions are being imposed pursuant Import, Export and Transfer of certificate issued by the Government of to an agreement between the United Ownership of Cultural Property (823 Peru. States and Peru which has been entered U.N.T.S. 231 (1972)). U.S. acceptance of In reaching the decision to into under the authority of the the 1970 UNESCO Convention was recommend extension of protection, the Convention on Cultural Property codified into U.S. law as the Deputy Director, United States Implementation Act in accordance with ‘‘Convention on Cultural Property Information Agency, determined that, the United Nations Educational, Implementation Act’’ (Pub.L. 97–446, 19 pursuant to the requirements of the Act, Scientific and Cultural Organization U.S.C. 2601 et seq.) (‘‘the Act’’). This with respect to categories of pre- (UNESCO) Convention on the Means of was done to promote U.S. leadership in Columbian archaeological material Prohibiting and Preventing the Illicit achieving greater international proposed by the Government of Peru for Import, Export and Transfer of cooperation towards preserving cultural U.S. import restrictions, ranging in date Ownership of Cultural Property. The treasures that are of importance not only from approximately 12,000 B.C. to A.D. document also contains the Designated to the nations whence they originate, 1532, and including, but not limited to, List of Archaeological and Ethnological but also to greater international objects comprised of textiles, metals, Material which describes the articles to understanding of mankind’s common ceramics, lithics, perishable remains, which the restrictions apply. This heritage. The U.S. is, to date, the only and human remains that represent document also amends the Customs major art importing country to cultures that include, but are not limited Regulations by removing the listing of implement the 1970 Convention. to, the Chavin, Paracas, Vincus, Moche Peru and identification of the cultural During the past several years, import (including objects derived from the property to which emergency import restrictions have been imposed on a archaeological zone of Sipan), Viru, restrictions have been imposed. Articles emergency basis on archaeological and Lima, Nazca, Recuay, Tiahuanaco, which had been protected under that ethnological artifacts of a number of Huari, Chimu, Chancay, Cuzco, and provision are also covered under the signatory nations as a result of requests Inca; that the cultural patrimony of Peru new listing. for protection received from those is in jeopardy from the pillage of these nations. EFFECTIVE DATE: June 11, 1997. irreplaceable materials representing pre- Peru has been one of the countries Columbian heritage; and that with FOR FURTHER INFORMATION CONTACT: whose archaeological material has been respect to certain categories of Legal Aspects: Donnette Rimmer, afforded emergency protections. In T.D. ethnological material of the Colonial Intellectual Property Rights Branch 90–37, § 12.104g(b), Customs period, ranging in date from A.D. 1532 (202) 482–6960. Regulations, was amended to reflect that to 1821, proposed by the Government of Operational Aspects: Louis Alfano, archaeological material from the Sipan Peru for U.S. import restrictions but Commercial Enforcement, Office of Archaeological Region forming part of limited to (1) objects directly related to Field Operations (202) 927–0005. the remains of the Moche culture the pre-Columbian past, whose pre- SUPPLEMENTARY INFORMATION: received import protection under the Columbian design and function are emergency protection provisions of the maintained with some Colonial Background Act. This protection was extended in characteristics and may include textiles, The value of cultural property, T.D. 94–54. Import restrictions are now metal objects, and ceremonial wood, whether archaeological or ethnological being imposed on certain pre- ceramic and stone vessels; and (2) 31714 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations objects used for religious evangelism ranging in date from approximately those categories of Moche objects from among indigenous peoples and 12,000 B.C. to A.D. 1532, and including, the Sipa´n Archaeological Region of Peru including Colonial paintings and but not limited to, objects comprised of for which emergency import restrictions sculpture with distinct indigenous textiles, metals, ceramics, lithics, have been in place since 1990. With iconography; that the cultural perishable remains, and human remains publication of the Designated List patrimony of Peru is in jeopardy of that represent cultures that include, but below, protection of the Sipa´n material pillage of these irreplaceable materials are not limited to, the Chavin, Paracas, continues without interruption. as documented by the request. Vicu´ s, Moche, Viru´ , Lima, Nazca, The list is divided into seven Recuay, Tiahuanaco, Huari, Chimu´ , List of Designated Archaeological and categories of objects: Chancay, Cuzco, and Inca cultures. The Ethnological Material From Peru Designated List also includes certain I. Pre-Columbian Textiles Pursuant to a Memorandum of categories of ethnological materials from II. Pre-Columbian Metals Understanding between the United Peru dating to the Colonial period (A.D. III. Pre-Columbian Ceramics States and the Republic of Peru, the 1532–1821), limited to: (1) objects IV. Pre-Columbian Lithics following contains descriptions of the directly related to the pre-Columbian V. Pre-Columbian Perishable Remains VI. Pre-Columbian Human Remains cultural materials for which the United past, whose pre-Columbian design and States imposes import restrictions under VII. Ethnological Objects function are maintained with some A. Objects Directly Related to the Pre- the Convention on Cultural Property Colonial characteristics and may Columbian Past Implementation Act (Pub. L. 97–446), include textiles, metal objects, and B. Objects Used for Religious Evangelism the legislation enabling implementation ceremonial wood, ceramic and stone Among Indigenous Peoples of the 1970 UNESCO Convention on the vessels; and (2) objects used for Means of Prohibiting and Preventing the religious evangelism among indigenous What follows immediately is a chart Illicit Import, Export and Transfer of peoples and including Colonial of chronological periods and cultural Ownership of Cultural Property. The paintings and sculpture with distinct classifications currently widely used for Designated List includes archaeological indigenous iconography. The identifying archaeological remains in materials known to originate in Peru, Designated List below also subsumes Peru. All dates are approximate.

Rowe Lumbreras

1440±1532 A.D ...... Late Horizon ...... Inca Empire. 1100±1440 A.D ...... Late Intermediate Period ...... Regional states and kingdoms. 600±1100 A.D ...... Middle Horizon ...... Huari Empire. 200 B.C.±600 A.D ...... Early Intermediate Period ...... Regional Cultures. 1000±200 B.C ...... Early Horizon ...... Middle and Late Formative. 1700±1000 B.C ...... Initial Period ...... Early Formative. 2500±1800 B.C ...... Late Pre-ceramic ...... Late Archaic. 4500±2500 B.C ...... Middle Pre-ceramic ...... Middle Archaic. 6000±4500 B.C ...... Early Pre-ceramic ...... Early Archaic. 12000±6000 B.C ...... Early Pre-ceramic ...... Hunter-Gatherers.

The following Designated List is Panels—Chimu panels may be of two woven in tapestry technique; in fakes, representational and may be amended types: tapestry weave or plain-weave they have embroidered features. Usually as appropriate. cotton. Isolated anthropomorphic 20 cm. tall and 8 cm. wide. designs predominate and may be I. Pre-Columbian Textiles False Head—In Chancay culture, false associated with zoomorphic motifs. heads are made on a cotton of vegetal Textiles representing these principal Vary from 20 cm. x 20 cm. to 2.0 m. x fiber cushion covered with plain-weave cultures and main classes of objects: 1.8 m. cloth, decorated with shells, beads, Belts and Sashes—Generally made in A. Chimu metal, wood, or painting to depict facial tapestry technique, and predominantly features. They sometimes have real hair. Pillow—Piece of cloth sewn into a bag of red, white, ocher, and black. As with Usually 30 cm. x 35 cm. shape and stuffed with cotton of vegetal other Chimu textiles, they generally fibers. Generally the cloth is made in Unku/Tunic—Varied sizes and styles. depict human figures with rayed Some are in plain weave, others in tapestry technique. 60 cm. x 40 cm. headdresses. Up to 2.20 m. in length. Painted Cloth—Flat cloth of cotton on gauze, still others are in tapestry which designs are painted. Range B. Chancay technique or brocade. They are between 20 cm. and 6.1 m. Loom—Looms are commonly found in recognized by their iconography, which Headdress—Headdresses are usually Chancay culture, sometimes with pieces includes geometric motifs, birds, fish, made of feathers, especially white, of the textile still on the loom. Often plants, and human figures. Miniatures green, and dark brown, which are these pieces of cloth show varied are tiny; regular size examples are about attached to cloth and fitted to a cane or techniques and are referred to as 50 cm. x 50 cm. basketry frame. Feathers on the upper ‘‘samples.’’ 50 cm. x 20 cm. Belt—Chancay belts are multicolored, part are arranged to stand upright. Loincloth—Triangular panels of cloth with geometric motifs rendered in Feather Cloth—Cloth decorated with with tapestry woven borders. tapestry technique. Sometimes the ends bird feathers, especially panels and Dolls—Three dimensional human are finished in faux-velour technique. 2 tunics. They vary in shape and size; figures stuffed with vegetal fiber to m. x 5 cm. generally they depict geometric motif which hair and other decorations are Panels—Chancay panels may be made and volutes. Vary from 20 cm.—3 m. in added. Sometimes they depict lone in tapestry technique or may be painted length, and may be up to 1.5 m. in females; in other cases they are arranged on plain weave cloth. In these latter width. in groups. Most important, the eyes are cases, the panels may depict fish, Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31715 parrots, monkeys, viszcachas, felines, D. Huari with decoration reserved for the ends; foxes, and human figures. Vary in size Panel—Characterized by a complex there are others that are elaborately from miniatures to 4 m. x 2 m. and abstract iconography. Made in embroidered with colorful images Standards—Chancay standards are tapestry technique with a range of rendered in wool. These often form sets supported on a frame of straight reeds colors, including browns, beiges, with mantles and other garments. Skirts covered with cotton cloth which is yellows, reds, oranges, and greens. Vary are rectangular and very wide, with two painted in anthropomorphic designs in from 20 cm. x 20 cm. to 2.0 m. x 1.8 m. fringed ties. 3 m. long and 70 cm. wide. ochers and black. Sometimes they have Unku/tunic—Large with an abstract Wara/Loincloth—Made of cotton, not a handle. 20 cm. x 20 cm. and geometric iconography. Commonly as large as skirts, and may have Gauze—Pieces of cloth made in the designs repeat in vertical bands. embroidered edges. openwork gauze technique, with very Slings—Paracas slings are decorated Generally these tunics have a cotton fine cotton threads. May have in Cavernas style, made of vegetal fiber, warp and camelid fiber weft. Some are embroidered designs in the same thread and are of small size, generally 1.5 m. so finely woven that there are 100 that depict birds or other flora and x 5 cm. threads per cm 2. Vary in size from fauna. Usually 80 cm. x 80 cm.; some Furs—There are numerous examples miniatures up to 1.5 m. x 80 cm. are smaller. of animal skins reported from Paracas Caps—Most common are the so-called contexts, including the skins of the fox, C. Nazca ‘‘four-corner hats’’ made in a faux- vizcacha, guinea pig. Most are poorly velour technique that results in a Three-Dimensional Cloth—Cloth preserved. made in three dimensions, using velvety texture. On the base cloth, small needles. Of many and bright colors, tufts of brightly-colored wool are F. Moche knitted in long strips. Each figure is inserted. Bags—Moche bags are usually square, approx. 5 cm. long x 2 cm. wide. Vincha/headband or sashes—These small, and have a short handle. They are Unku/Tunic—These include garments are made in tapestry weave or made in tapestry technique with miniature and regular-sized tunics. faux-velour technique and depict brightly-woven designs. Principal colors They are generally of one color, mostly geometric motifs. used are white, black, red, light blue, light brown. The neck edges, hem, and Bags—Bags have an opening which is and ocher. fringes have multicolored geometric somewhat narrower than the body, with Panels—Recognizable by their designs. Fringes end in woven braids. designs depicting felines, camelids, iconography, these tapestry-technique Vary in size from miniatures up to human faces, and faces with animal panels may show people on balsa-reed approx. 1.5 m. x .8 m. attributes. rafts surrounded by a retinue. They are Bags—There are bags of many sizes, E. Paracas rendered in a geometric fashion, and are from miniatures to large ones, generally outlined in black and shown in profile. with a narrow opening and a wide Esclavina/Small shoulder poncho— Scenes of marine life and fauna pouch. Some are decorated with fringe. Paracas esclavinas are unique for their predominate. Vary from 20 cm. x 20 cm. Their iconography resembles the unku decoration with brightly colored images to 2 m. x 1.8 m. (tunic), stylized designs in yellow, red, in Paracas style such as birds, flowers, Ornamental canes—Small canes are and dark and light blue. animals, and human figures. Vary in ‘‘woven’’ together in a twill technique Sash—Nazca sashes are made on size from miniatures up to 60 cm. x 30 using colorful threads that depict special looms. Their ends are decorated cm. anthropomorphic designs. Approx. 10 with plied fringe. Mantle—Paracas mantles can be cm. x 10 cm. Tie-Dye (Painted) Cloth—Most divided into five types, based on their common are those made in the tie-dye decoration. All are approximately 2.5 m. G. Lambayeque technique, in which the textile is x 1.6 m. Panels—Lambayeque panels are knotted and tied before it is dyed, so a. Mantles with a plain field and small, made in tapestry technique, of that when it is untied, there are negative woven borders; cotton and wool. Vary from 20 cm. x 20 images of diamonds, squared, and b. Mantles with decorative cm. to 2 m. x 1.8 m. concentric dots. Most common are (embroidered) borders and plain field; H. Inca orange, red, blue, green, and yellow c. Mantles with decorative colors. Vary from approx. 20 cm. x 20 (embroidered) borders and a decorative Sling—There are two types of Inca cm. to 2.0 m. x 1.8 m. stripe in the center field; slings. Ceremonial ones are oversize and Patchwork Cloth—Variant of the Tie- d. Mantles with embroidered borders elaborately decorated with geometric Dye cloth, in which little panels are and center field embroidered in motifs, with long fringes. The other type made and later sewn together so that the checkerboard-fashion; is smaller and utilitarian, almost always resulting textile includes rectangles of e. Mantles with embroidered borders with decoration only on the pouch and tie-dyed panels of different colors. The and alternating diagonals of far ends. The decoration is geometric cloth may have a decorative fringe. Vary embroidered figures in the center field. and the slings have fringed ends. from 20 cm. x 20 cm. to 2.0 m. x 1.8 m. Gauzes—Paracas gauzes are made of Unku/tunic—Inca tunics are well- Wara/Loincloth—Generally made of a one color, such as lilac, yellow, red, or made and colorful, mostly in red, olive flat piece of cloth with colorful borders grey. They are generally rectangular and green, black, and yellow. Decorative depicting stylized geometric motifs. have a soft and delicate texture. Approx. elements may be arrayed checkerboard They terminate in fringe. 50 cm. x 30 1 m. x 1 m. fashion and are found on the upper and cm. Panels—Paracas panels are generally lower part of the garment. Vary in size Fans—The frame is of vegetal fiber of cloth and may have been used for from miniatures up to approx. 1.5 m. x provided with twisted cord into which utilitarian purposes. They are generally 80 cm. feathers are inserted. Commonly two undecorated. Vary from 20 cm. x 20 cm. Bags—Recognized by their bright colors of feathers are attached in this to 2 m. x 1.8 m. colors, they have an opening that is way, such as orange and green, or Skirts—Paracas skirts are of two narrower than the body and a wide yellow and blue. 30 cm. x 20 cm. types: some are plain, made of cotton pouch with long fringe and handle. Vary 31716 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations in size from miniatures up to 30 cm. x May be of copper or bronze. Vary from and surface decoration varies from 20 cm. 6 cm.–25 cm. in height. culture to culture. Shapes include Panels—Some are made in cotton Jingle Bells: Spherical bells with an beakers, bowls, and plates. Average .5 using the double-cloth technique, based opening on the lower part and a handle m.–.3 m. in height. on light brown and beige. Lines of on the upper part so they can be geometrically-rendered llamas suspended from a sash or other garment. I. [Reserved] predominate. Vary in size from 20 cm. They contain a small stone or a little J. Masks x 20 cm. to 2 m. x 1.8 m. ball of metal. The handles may be May be made of gold, silver, gilded Mantles—Inca mantles are of standard decorated. Jingle bells may decorate silver, copper, gilded copper, silver- dimensions, sometime more than a another object, such as rhythm sticks, covered copper, or may be made of two meter long, generally rectangular. They and may be of gold, silver, or bronze. metals. They vary greatly in shape and are multi-colored and made of cotton Used in all pre-Columbian cultures of design. The best known examples come warp and wool weft. Most common Peru. from the following cultures: Moche, colors are dark red, olive green, white, Chalchachas: Instruments shaped like Sican, Chimu´ , Huari, Inca, Nazca, and and black. Generally 2.5 m. x 1.6 m. a bivalve with repousse´ decoration. Chincha. The northern coast examples Kipu/quipu—Inca quipus (knotted Made of copper. string mnemonic devices) are made of Quenas (flutes): Tubular instruments, often have insets of shell, precious or cotton and wool cords, sometimes with generally of silver, with perforations to semi-precious stones, and may have the two fibers plied together. Rarely is vary the tone. plant resins to depict the eyes and teeth. their original color preserved, though Almost all examples that have not been F. Knives sometime one sees light blues and cleaned have a surface coloring of red browns. Some are wrapped with Knives vary depending on their cinnabar. Examples from Sican measure colorful threads on the ends of the provenance. They can have little or no up to 49 cm. in width by 29 cm. in cords. 80 cm. x 50 cm. decoration and can be of different height. Miniature examples can measure metals or made of two metals. The best 7 cm. × 5 cm. Miniature masks are also II. Pre-Columbian Metal Objects known are the tumis from the Sican used as decorations on other objects. A. Idols culture, which have a straight or Copper examples generally show heavy trapezoidal handle and a half-moon oxidation. Anthropomorphic or zoomorphic blade. The solid handle may have figures, some of which are hollow and K. Crowns carved or stamped designs. Generally others which are solid. They may be of made of gold, silver, or copper. In Thin or thick sheets of metal made to gold and silver, they may be gilded, or ceremonial examples, the blade and encircle the head. They may be of silver, of copper, or bronze. Sizes vary from 2 upper part may depict an gold, copper, gilded silver, silver- cm.—20 cm. in height. anthropomorphic figure standing or covered copper, or may be made of two B. Small Plaques seated, or simply a face or mask with an metals. Some examples have a curved central part, and may be decorated with Thin sheets of gold, silver, copper, or elaborate headdress, earspools, and inset semi-precious stones. Tumi pieces of metal and real or artificial gilded copper, used to cover the body feathers that are attached with small ´ handles can be triangular, rectangular, and made in pieces. They have repousse clamps. Found in all cultures. or punched designs on the edge and or trapezoidal, and blades can be middle of the sheet. Average .6 cm in ovaloid or shaped like a half-moon. L. Penachos (Stylized Metal Feathers) height. G. Pins Stylized metal feathers used to C. Axes With a straight shaft and pointed end, decorate crowns. May be made of gold, Almost always T-shaped and solid. pins can be flat or cylindrical in cross- silver, copper, or silver-covered copper. There are also axes in a traditional section. Most are hammered, and some M. Tocados (Headdresses) axehead shape. May be of bronze or are hollow. They can be of gold, silver, Headdress ornaments which may be copper. copper, bronze, gold-plated silver or may be made of two metals. Some pins simple or complex. They may be made D. Mace Heads are zoomorphic; others have floral of one part, or may include many These come in a great variety of images, and still others depict fish. pieces. Found in all cultures. They may shapes, including star-shaped, flat, or of Some have a round head; others have a take the form of crowns, diadems, or two or three levels. They may be made flat, circular head; still others have the small crowns. They may have two of copper or bronze. Most have a central shape of a half-moon. There are hollow- stylized feathers to decorate the crown hole through which a wooden handle headed rattle pins; others have solid and to hold it to the hair (especially the was affixed. anthropomorphic images. Most are up to Chimu examples). Paracas examples 50 cm. in length, with heads that are up generally have rayed appendages, with E. Musical Instruments to 10 cm. in diameter. The small pins pierced disks suspended from the ends Trumpets: Wind instrument with a are about 5 cm. in length. of the rays. tubular body and flaring end, fastened at H. Vessels N. Turbans the joint. May be of copper or bronze. Bells: Of varying shapes and materials There are a variety of metal vessels; Long pieces of cloth that are wrapped (including gold, silver, copper, and they may be made of gold, silver, gilded around the head. Metal ornaments may silver-plated copper). silver, gilded copper, silver-covered be sewn on turbans. Found in all Conos: Instrument shaped from a copper, and bronze. There are cultures; the metal decorations and the sheet of hammered metal, with or miniatures, as well as full-size vessels. cloth vary from culture to culture. without a clapper. Can be of copper or Such vessels are known from all O. Spoons silver. Up to .5 m. in height. cultures. Forms include beakers, bowls, Rattles: Musical instrument with a open plates, globular vessels, and Utilitarian object of gold, silver, or central hold to accommodate a handle. stirrup-spout bottles. The exact form copper. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31717

P. Lime Spatulas skin, or monkey tails are inserted and Characteristics Miniature spatula: a straight handle held in place with tar. They may be Decoration: Slip-painted and incised. has a slightly spoon-shaped end. The made of gold, silver, or gilded or silver- Modeled elements include stylized handle may have an anthropomorphic plated copper. felines and camelids, along with an figure. Made of gold, silver, or copper. III. Pre-Columbian Ceramics anthropomorphic image characteristically depicted with a staff Q. Ear Spools ´ A. Chavın in each hand. Vessels are typically Ear spools are generally made of a Date: 1200–200 B.C. decorated in yellows, black, and white large cylinder which fits through the on the red background of the vessel. earlobe and an even larger disk or Characteristics Designs are characteristically outlined decorative sheet on one side. The disk Decoration: A grey-black color. by incision. There may be modeled may be decorated with repousse´, Incised, modeled, and high and low- decoration, such as feline heads, stamped, or engraved designs, or may relief are combined to work out designs attached to the vessels. have inset stone or shell. May be made in grays and browns. The surface may Shapes: Tall bowls with annular ring of gold, silver, copper, or made of two also juxtapose polishing and matte bases predominate, along with vessels metals. Ear spools are found in all finish in different design zones. that depict anthropomorphic images. cultures. The largest measure up to 15 Forms: Bottles, plates, and bowls. Size: Bowls are up to 20 cm. in cm. height; typical diameter: 5 cm.–14 diameter and 20 cm. in height. cm. Size: 5 cm.–30 cm. Identifying: Characteristic traits of E. Paracas R. Nose Ornaments Cupisnique and Chavı´n ceramics Date: Developed around 200 B.C. Of varied shapes, nose ornaments can include: globular body with a flat base be as simple as a straight tube or as and stirrup spout; thick neck with an Characteristics complex as a flat sheet with repousse´ obvious and everted lip. Chavin style Vessels are typically incised, with design. In the upper part, there are two also includes long-necked bottles, bowls post-fired resin painting on a black points to attach the ornament to the with flaring walls, and highly-polished background. relief-decorated surfaces. septum. They may be of gold, silver, or Size: 10 cm.–15 cm. high copper or may be made of two metals. Styles: Chavin influence is seen in Cupisnique, Chongoyape, Poemape, F. Nazca S. Earrings Tembladera, Patapo, and Chilete. Date: A.D. 100–600. Decoration to be suspended from the earlobes. B. Vicu´ s Characteristics T. Rings Date: 900 B.C.–A.D. 500 Color: Typically very colorful, with a range of slips including cream, black, Simple bands with or without Characteristics red, violet, orange, gray, all in a range designs. Some are two bands united by Decoration: Geometric designs in of tones. filigree spirals. Some have inset stones. white on red, made using negative Slip: Background slip is generally May be of silver, gold, copper, or alloys. technique. There are also monochrome cream or orange. U. Bracelets examples. Shapes: Cups, bowls, beakers, plates, Bracelets are made of sheets of metal Forms: Anthropomorphic, double-spout-and-bridge bottles, with a straight or slightly trapezoidal zoomorphic and plant-shaped vessels. anthropomorphic figures, and musical shape, with stamped or repousse´ Some have a double body linked by a instruments. designs. Some are simple, narrow tube or common opening. Decoration: Realistic drawings of bands. Found in all cultures and with Size: 30 cm.–40 cm. tall. fantastic creatures, including the ‘‘Flying God.’’ In late Nazca, bottles are varied designs. May be of gold, silver, C. Viru´ or Gallinazo bronze, or alloys of copper. Generally 4 broader and flatter and the designs are cm.–14 cm. in width. Characteristics arrayed in broad bands. Typically have decorations of trophy heads, geometric Decoration: Negative technique over V. Necklaces motifs, and painted female faces. orange background. Necklaces are made of beads and/or Size: 5 cm.—20 cm. Forms: Faced anthropomorphic and small carved beads. May be of shell, zoomorphic vessels, face bottles for G. Recuay bone, stone, gold, silver, copper, or daily use in dwellings, ‘‘cancheros’’ bronze. The beads are of varied shapes. Date: A.D. 100–700. (type of pot without a neck and with a All beads have two lateral perforations horn-shaped handle). Characteristics to hold the cord. Size: Up to 15 cm. high. Slip: Both positive and negative slip- W. Tweezers Identifying: The surface is basically painting is found, generally in colors of Made in one piece, with two identical orange; the vessels have a truncated black, cream and red. ends and a flexed central handle. They spout, an arched bridge (like a tube) as Shapes: Sculptural, especially are of varied shapes, including handle, and geometric symbols in ceremonial jars known as ‘‘Paccha’’ triangular, trapezoidal, and ovaloid. The negative technique (concentric circles, which have an elaborate outlet to serve middle of the handle may have a hole frets and wavy lines). When the vessels a liquid. so the tweezers can be suspended from represent a face, the eyes are like ‘‘coffee Decoration: Usually show groups of a cord. beans,’’ applied on the surface and with religious or mythical personages. a transverse cut. Size: 20 cm.—35 cm. in height. X. Feather Carrier D. Pucara Conical objects with a pointed, H. Pashash hollow end, into which feathers, llama Date: 300 B.C.–300 A.D. Date: A.D. 1–600. 31718 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

Characteristics Characteristics P. Ica-Chincha Decoration: Positive decoration in Decoration: Pre-fired slip painting Date: Began to be developed in A.D. black, red, and orange on a creamy- with interlocking fish and snake 1200. white background. Some show negative designs, geometric motifs, including zig- Characteristics painting. zags, lines, circles, and dots. Shapes: Anthropomorphic vessels, Shapes: Breast-shaped bottles, cups, Decoration: Polychrome painting in bottles in the form of snakes, bowls with plates, bowls, and cook pots. black and white on red. annular base, and large vessels with Styles: Related to Playa Grande, Designs: Geometric motifs combined lids. Nieveria, and Pachacamac styles. with fish and birds. Size: The anthropomorphic vessels Shapes: Bottles with globular bodies are up to 20 cm. in height, serpent M. Huari and tall necks and with flaring rims. bottles are around 25 cm. wide x 10 cm. Date: A.D. 500–1000. Cups and pots. tall, and lidded vessels are more than 30 Size: 5 cm.—30 cm. high. Characteristics cm. in height. Q. Chimu´ Motifs: The decorations are rendered Colors: Orange, cream, violet, white, in positive or negative painting in zones black, and red. Date: A.D. 900–1500. that depict profile-face images of Motifs: Anthropomorphic, Characteristics zoomorphic figures, serpents, or worms, zoomorphic, and plant shapes, both seen from above and with trapezoidal stylized and realistic. In Pachacamac Slip: Monochrome. Usually black or heads. style one finds vessels with a globular red. Shapes: Varied shapes. Commonly I. Cajamarca body and long, conical neck. In Atarco style, there is slip painting that retains made in molds. They may represent Date: A.D. 500–900. Nazca motifs, especially in the full-body fish, birds, animals, fruit, people, and architectural forms. One sees globular Characteristics felines shown running. Slip: Background slip is commonly bodies with a stirrup spout and a small Decoration: Pre-fired slip painting cream, red, or black. bird or monkey at the base of the neck. with geometric designs, including Styles: Related to Vinaque, Atarco, Size: Between 30 cm.—40 cm. in stepped triangles, circles, lines, dots, Pachacamac, Qosqopa, Robles Moqo, height. and rows of volutes. They may include Conchopata, and Caquipampa styles. R. Lambayeque stylized birds, felines, camelids, Size: Most are around 25 cm. tall. Date: A.D. 700–1100. batrachians, and serpents. Spiral figures Robles Moqo urns may be up to 1 m. in may include a step-fret motif in the base height. Characteristics of the bowls. Shapes: Pedestal base bowls, tripod N. Santa Color: Generally black; a few are cream with red decoration. bowls, bottles with annular ring base, Date: Derived from Huari style, Shapes: Double spout and bridge goblets, spoons with modeled handles, around A.D. 800. bowls with carinated edges. vessels on a pedestal base are common. Characteristics At the base of the spout one sees J. Moche modeled heads and the bridge also often Decoration: Slip painted with figures has modeled heads. Date: A.D. 200–700. and designs in black and white on a red Size: 15 cm.—25 cm. in height. Characteristics background. There are also face-neck jars. S. Inca Forms: Stirrup-spout vessels, vessels Shapes: Effigy vessels, face-neck jars, in the shape of humans, animals, or Date: A.D. 1300–1500. double-body vessels. plants. Characteristics Colors: Generally red and white. Sizes: 12 cm.—20 cm. tall. Manufacture: Often mold-made. Shapes: Jars have a globular body and Decoration: Slip painted in black, red, Size: 15 cm.—25 cm. in height. face on the neck. The border may have white, yellow, and orange. Decoration: Wide range of images black and white checkerboard. The body Designs: Geometric designs showing scenes of real life or mythical sometimes takes the shape of a stylized (rhomboids and triangles) and stylized scenes depicting gods, warriors, and llama head. Common are white lines bees, butterflies, and animals. other images. dotted with black. Double-body vessels Sizes: 1 cm. to 1.5 m. in height. generally have an anthropomorphic K. Tiahuanaco image on the front vessel, and a plain IV. Pre-Columbian Lithics Date: A.D. 200–700. back vessel. A. Chipped Stone: Projectile Points Characteristics O. Chancay Paijan Type Points Decoration: Pre-fired slip painting on Date: A.D. 1000–1300. Size: 8 cm.—18 cm. a highly polished surface. Background is Characteristics Shape: Triangular or heart-shaped. generally a red-orange, with depictions Color: Generally reddish, orange, or of human, animal, and geometric Treatment: Rubbed surface. yellow. Can be made of quartz. Slip: White or cream with black or images, generally outlined in black and Leaf-Shaped Points white lines. dark brown designs. Shapes: Plates, cups, jars, beakers, Molds: Molds are commonly used, Size: 2.5 cm.—15 cm. open-backed incense burners on a flat especially for the anthropomorphic Shape: Leaf-shaped. Can be ovaloid or base. figures called ‘‘cuchimilcos,’’ which lanceolate. represent naked male and female figures Color: Generally bright reds, yellows, L. Lima with short arms stretched to the sides. ochers, quartz crystals, milky whites, Date: A.D. 200–700. Size: 3 cm.—1 m. greens and blacks. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31719

Paracas Type Points Pre-Inca: Very rare, they have straight Balance weights—Flat rectangles of Size: .3 cm.—25 cm. sides and incised or high-relief bone about 10 cm. in length. Chincha Shape: Triangular and lanceolate. decoration. Some have inset shells. culture. Musical instruments—Quenas (flutes) Show marks of pressure-flaking. Often Inca: Generally they are incised with and antaras (panpipes) in various they are broken. geometric designs on the entire exterior. Colonial Inca: Lacquer painted on the shapes. Paracas, Chincha, and Ancon Color: Generally black. exterior to depict scenes of daily life, cultures. Chivateros-Type Blanks nature, and war. C. Gourds Staffs—Objects of ritual or ceremonial Size: .8 cm.—18 cm. Vessels—Bowls, pots, and holders for Shape: Concave indentations on the use made of a single piece of wood. They can be distinguished on the basis lime (for coca chewing). Most surface from working. interesting are those which are carved or Color: Greens, reds, and yellows. of two or three of the following traits: On the lower third, the staff may have pyroengraved. Produced from the B. Polished Stone a metal decoration. Preceramic onward. Musical instruments—Ocarinas, small Bowl—Vessels of dark colored-stone, The body itself is cylindrical and of flutes, and whistles. Inca examples may sometimes streaked. They have a highly variable length. have incised decoration, or decoration polished, very smooth surface. Some The upper third may have with cords and feathers. show external carved decoration. decorations, including inset shell, stone, Diameters range from 12 cm—55 cm. or metal. Some staffs function as rattles, D. Cane Cups—Also vessels of dark-colored and in these cases, the rattle is in the upper part. Musical instruments—Flutes stone. Generally have flaring sides. (especially in Chancay culture), Typical of the Late Horizon. They are Carvings—Worked blocks of wood, such as wooden columns (orcones) to panpipes, and whistles. Flutes are often highly polished and may have external pyroengraved. Panpipes can have one or carved designs or may be in the shape support the roofs of houses: Chincha, ´ two tiers of pipes, which may be lashed of heads. 18 cm.—28 cm. in height. Chimu, and Chancay cultures. Individuals may be depicted standing or together with colored thread. Nazca Conopas—Small vessels in the form culture. of camelids with a hollow opening on seated on a pedestal. In the upper part the back. They are black to greenish- there is a notch to support the beams, E. Straw which generally has a face, sometimes black and highly polished. .8 cm.—16 Weaving baskets—Basketry over a painted, at the base of the notch. Their cm. in length. cane armature, in the shape of a lidded length varies, but they are generally at Idols—Small anthropomorphic box. Sometimes the basketry is made of least a meter or more. figurines, frequently found in Middle several colors of fiber to work out Box—Small lidded boxes, carved of Horizon contexts. The almond-shaped geometric designs. Some still hold their two pieces of wood. Generally the outer eyes with tear-bands are characteristic original contents: needles, spindle surface of box and lid are carved in of the style. Larger examples tend to be whorls, spindles, balls of thread, loose relief. Chimu´ -Inca cultures. They of lighter-colored stone while the thread, etc. Chancay culture. measure approximately 20 cm. × 10 cm. smaller ones are of dark stones. 12 Mirror—Wooden supports for a cm.—28 cm. in height. F. Shell reflective surface of polished anthracite Mace head—Varying shapes, most Musical instruments—Marine shells or pyrite. In some cases the upper part commonly are doughnut-shaped or star- (Strombus galeatus, Malea ringens, etc.), of backs of mirrors are worked in relief shaped heads, generally associated with some, especially those from the or have inset of shell. Moche culture. Late Intermediate Period and Inca Formative Period, with incised Paddle and rudder—Large carvings cultures. Commonly black, gray, or decoration. made of a single piece of wood. Paddles white, .8 cm.—20 cm. in diameter. Jewelry—Small beads and charms have three parts: the blade and the Metal-working hammer—Elongated worked of shell, chiefly Spondylus handle (sometimes decorated), and an shapes, frequently with one flat surface; princeps, used mainly in necklaces and upper decorated part, which can have highly polished. Generally of dark- pectorals. Moche, Chimu´ , and Inca metal plaques or decorative painting. colored stone, 3 cm.—12 cm. cultures. Rudders have two parts: the blade and C. Carved Material a handle which may be carved in relief. VI. Pre-Columbian Human Remains Tenon head—These heads have an Chincha culture. Paddles can be 2.30 m. The human remains included in this anthropomorphic face, prominent lips, in length and rudders are up to 1.4 m. listing demonstrate modifications of the and enormous noses. Some, especially Utensils—Bowls and spoons made of remains due to ritualistic practices or those carved of diorite, have snake-like wood decorated with zoomorphic or other intentional treatment of the traits. The carved surface is highly anthropomorphic motifs. deceased. Musical instruments—Trumpets and polished. whistles. Trumpets can be up to 1.2 m. A. Mummies Tablets—Tablets with high-relief long and are generally decorated on the design. The upper surface has a patina. Peruvian mummies were formed by upper third of the instrument. Whistles They range from 20 cm. to more than 1 natural mummification due to the vary a great deal from the undecorated m. in length. conditions of burial; they have generally to those decorated with human forms. not been eviscerated. Usually found in V. Pre-Columbian Perishable Remains Moche, Huari, and Inca cultures. flexed position, with extremities tied together, resulting in a fetal position. In A. Wood B. Bone many cases the cords used to tie the Keros (Beakers)—The most common Worked bone—Most interesting are body in this position are preserved. form is a bell-shaped beaker with a flat Chavı´n pieces with incised decorations. base, though some have a pedestal like The bones are generally the long bones B. Deformed Skulls a goblet. Decoration varies with the of mammals. They vary from 10 cm.–25 Many ancient Peruvian cultures period: cm. in length. practiced cranial deformation. Such 31720 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations skulls are easily recognized by their by leaving some of the animal hair, but can be seen in the introduction of unnatural shapes. these features are grotesque because Western designs, for example bi-frontal they appear to grow upside down. eagles and heraldic motifs. C. Skulls Displaying Trepanation Trepanation is an operation VII. Ethnological Objects Keros performed on a skull; the resulting cuts, A. Objects directly related to the pre- Material: wood. easily visible on a bare skull, take Columbian past, whose pre-Columbian Description: The most common form various forms. Cuts may be less easily design and function are maintained is a beakerlike cup with truncated base. distinguished if skin and hair are with some Colonial modifications or After the Conquest, keros started to be present: additions in technique and/or decorated with pictorial scenes. The iconography. most frequently used techniques Principal Techniques include incision, inlaying pigments in Colonial Indigenous Textiles a. Straight cuts: these cuts are pointed wood, and painting. Ideography at the ends and wider in the center. Predominant materials: cotton and includes geometric designs, figures Openings made this way have a wool. under a rainbow (an Inca symbol), polygonal shape. Description: These textiles are ceremonial rituals, scenes of war, and b. Cylindrical-conical openings: the characterized by the cut of the cloth, agricultural scenes. Sometimes are in openings form a discontinuous line. The with the four borders or selvages the form of human or zoomorphic resulting opening has a serrated edge. finished on the same loom. Clothes are heads. c. Circular: generally made by a file. untailored and made from smaller The resulting hole is round or elliptical, pieces of convenient sizes which were Cochas or Cocchas with beveled or straight edges. This is then sewn together. Colonial indigenous Material: ceramic. the most common form of trepanation. textiles of the period are differentiated Description: Ceremonial vessels with from pre-Columbian textiles primarily two or more concentric interior D. Pre-Columbian Trophy Heads by their decoration: western motifs such compartments which are linked. Often Trophy heads can be identified by the as lions, heraldic emblems, and Spanish decorated with volutes representing hole made in the forehead to personages are incorporated into the reptiles. accommodate a carrying cord. When the designs; sometimes fibers distinct from skin is intact, the eyes and the mouth cotton or wool (threads of silver, gold, Aribalos are held shut with cactus thorns. and silk) are woven into the cloth; and Material: ceramic. Finally, the occiput is missing since that the colors tend to be more vivid because Description: The post-Conquest is how the brain was removed when the the fabrics were made more recently. aribalos have a flat base, often using a trophy head was prepared. Another important characteristic of the glaze for finishing, and the decoration includes Inca and Hispanic motifs. E. Shrunken Trophy Heads From the clothing is the presence of tocapus or Amazon horizontal bands of small squares with Pacchas anthropomorphic, zoomorphic, These heads have had the bones phytomorphic and geometric ideographs Material: Stone, ceramic. removed and then have been cured to and designs. Characteristic textiles Description: One of the characteristics shrink them. They are recognizable include: of pacchas is that they have a drain because they conserve all the traits of Panels: Rectangular or square pieces which is used to sprinkle an offering on the original skin, including hair and of various sizes. the ground. They have pictorial or hair follicles. The mouth is sewn shut Anacus: Untailored woman’s dress sculpted relief decorations symbolizing and generally there are carrying cords consisting of two or three long the benefits hoped for from the ritual. attached. There may be an obvious seam horizontal pieces of cloth sewn together B. Objects that were used for religious to repair the cuts made when the skin that was wound around the body and evangelism among indigenous peoples. was removed from the skull. Finally, the held in place with ‘‘tupus’’ (pins). In Colonial paintings and sculptures skin is thick (up to 2.5 mm.) and has a Unku/Tunic: Man’s shirt with an Western religious themes were dark color. Trophy heads vary between opening for the head. Sometimes has reinterpreted by indigenous and mestizo 9.5 cm. and 15.5 cm. in height. sleeves. artists who added their own images and Lliclla/Shoulder Mantle: Rectangular other characteristics to create a distinct F. Tattoos piece of cloth that women put over their iconography. Tattooing in pre-Columbian Peru was shoulders and held in place by a tupu; Specific types of objects used for practiced mainly on the wrists. Most standard size: 40′′×45′′. Generally has a religious evangelism during the Colonial common are geometric designs, tripartite design based on contrasting period include the following: including bands of triangles and panels that alternate bands with Sculpture rhomboids of a bluish color. decoration and bands with solid colors. Types of statues include: G. False Shrunken Heads Chumpi/Belt: A woven belt, generally using tapestry technique. A three-dimensional sculpted image: False shrunken heads can be In the Peruvian Colonial period these recognized because they are made of the Tupus were made of maguey (a soft wood) and skin of a mammal, with some of the fur Material: Silver, gilded silver, copper, occasionally of cedar or walnut. left where the human hair would be. bronze. May have inlays of precious or Images made of a dough composed of The skin is first smoked, then pressed semi-precious stones. sawdust, glue and plaster: After they are into a mold to give it a face-like shape. Description: Tupus were used to hold sculpted, figures are dressed with cloth The eyes, nose, mouth and ears are in place llicllas and ancus. They are dipped in plaster. simple bumps without real holes. pins with a round or elliptical head, Images to be dressed: These are Further, the skin is very thin and with piercing, repousse´, and incised wooden frames resembling mannequins, yellowish in color. Often the ‘‘heads’’ decorations. The difference between with only the head and arms sculpted have eyebrows and moustaches formed pre-Columbian and ethnological tupus in wood (cedar or maguey). The images Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31721 are dressed with embroidered clothes Inapplicability of Notice and Delayed appropriate alphabetical order under the and jewelry. Frequently other elements Effective Date column headed ‘‘State party’’, the were added, such as teeth and false Because the amendment to the description ‘‘Archaeological artifacts eyelashes, wigs of real hair, eyes of Customs Regulations contained in this and ethnological material from Peru’’ colored glass, and palates made of glass. document imposing import restrictions under the column headed ‘‘Cultural property’’, and the reference ‘‘T.D. 97— Paintings on the above-listed Peruvian cultural property is being made in response to a 50’’ under the column headed ‘‘T.D. Catholic priests provided indigenous bilateral agreement entered into in No.’’ 3. In § 12.104g, paragraph (b), the list and mestizo artists with canvases and furtherance of the foreign affairs of emergency actions imposing import reproductions of Western works of art, interests of the United States, pursuant which the artists then ‘‘interpreted’’ restrictions on described articles of to section 553(a)(1) of the cultural property of State Parties is with their own images and other Administrative Procedure Act, no notice indigenous characteristics. These may amended by removing the entry for of proposed rulemaking or public ‘‘Peru’’ in its entirety. include symbolically associating procedure is necessary. For the same George J. Weise, Christian religious figures with reason, a delayed effective date is not indigenous divinities, or rendering the required. Commissioner of Customs. figures with Andean facial Regulatory Flexibility Act Approved: June 5, 1997. characteristics or in traditional Andean John P. Simpson, costume. In addition, each church, Because no notice of proposed Deputy Assistant Secretary of the Treasury. convent, monastery, and town venerated rulemaking is required, the provisions [FR Doc. 97–15428 Filed 6–10–97; 8:45 am] an effigy of its patron or tutelar saint, of the Regulatory Flexibility Act (5 some of them native to Peru. U.S.C. 601 et seq.) do not apply. BILLING CODE 4820±02±P Retables Accordingly, this final rule is not subject to the regulatory analysis or DEPARTMENT OF HEALTH AND Retables (retablos) are architectonic other requirements of 5 U.S.C. 603 and HUMAN SERVICES structures made of stone, wood, or other 604. material that are placed behind the altar Executive Order 12866 Food and Drug Administration and include attached paintings, sculptures or other religious objects. This amendment does not meet the 21 CFR Part 113 criteria of a ‘‘significant regulatory Liturgical Objects action’’ as described in E.O. 12866. [Docket No. 75N±0333] Objects Used for Mass Ritual: Drafting Information Thermally Processed Low-Acid Foods Chalices, cibaries, candelabras, vials for Packaged in Hermetically Sealed The principal author of this document christening or consecrated oil, Containers; Technical Amendment reliquaries, vessels for wine and water, was Peter T. Lynch, Regulations Branch, incense burners, patens, monstrances, Office of Regulations and Rulings, U.S. AGENCY: Food and Drug Administration, pelicans and crucifixes. Made out of Customs Service. However, personnel HHS. silver, gold or gilded silver, often inlaid from other offices participated in its ACTION: Final rule; technical with pearls or precious stones. development. amendment. Techniques: casting, engraving, List of Subjects in 19 CFR Part 12 piercing, repousse´, filigree. SUMMARY: The Food and Drug Customs duties and inspections, Administration (FDA) is amending its Fixtures for sculpted images: Areoles, Imports, Cultural property. current good manufacturing practices crowns, scepters, halo, halos in the form Amendment to the Regulations (CGMP’s) regulations for canning low- of rays, and books carried by religious acid foods in hermetically sealed scholars and founders of religious Accordingly, Part 12 of the Customs containers, to correct a typographical orders. Regulations (19 CFR Part 12) is error. This action is being taken to Ecclesiastical vestments: Some amended as set forth below: ensure the accuracy of the regulations. ecclesiastical vestments were EFFECTIVE DATE: June 11, 1997. PART 12Ð[AMENDED] commissioned by indigenous FOR FURTHER INFORMATION CONTACT: individuals or communities for the 1. The general authority and specific LaJuana D. Caldwell, Office of Policy celebrations of their patron saint and authority citation for Part 12, in part, (HF–27), Food and Drug thus are part of the religious legacy of continue to read as follows: Administration, 5600 Fishers Lane, a particular town. In such cases, the Rockville, MD 20857, 301–443–2994. vestment has the name of the donor and Authority: 5 U.S.C. 301, 19 U.S.C. 66, 1202 (General Note 20, Harmonized Tariff SUPPLEMENTARY INFORMATION: In a final of the town or church as well as the Schedule of the United States (HTSUS)), rule published in the Federal Register date. 1624; of March 16, 1979 (44 FR 16209), FDA Votive Offerings: These are * * * * * revised the specific CGMP’s for canning representations of miracles or favors Sections 12.104 through 12.104i also low-acid foods to ensure safe received from a particular saint. They issued under 19 U.S.C. 2612; manufacturing, processing, and can be made of different materials, * * * * * packaging procedures for low-acid usually metal or wood, and come in a canned foods in hermetically sealed variety of forms according to the type of § 12.104g [Amended] containers. The document was favor received, usually representing 2. In § 12.104g, paragraph (a), the list published with a typographical error in parts of the human body in reference to of agreements imposing import 21 CFR 113.40(b)(10)(ii). This document the organ healed or agricultural restrictions on described articles of corrects that error. products in recognition of a good cultural property of State Parties is Publication of this document harvest or increase in a herd. amended by adding ‘‘Peru’’ in constitutes final action on this change 31722 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations under the Administrative Procedure Act traffic during these periods and still Small Entities (5 U.S.C. 553). Notice and public provide for the reasonable needs of Under the Regulatory Flexibility Act comment are unnecessary because FDA navigation. (5 U.S.C. 601 et seq.) the Coast Guard is merely correcting a nonsubstantive DATES: This regulation becomes must consider whether this rule will error. effective on July 11, 1997. have a significant economic impact on List of Subjects in 21 CFR Part 113 FOR FURTHER INFORMATION CONTACT: a substantial number of small entities. Mr. Phil Johnson, Bridge Administration ‘‘Small entities’’ may include (1) small Food and Drug Administration, Food Branch, Eighth Coast Guard District, businesses and not-for-profit packaging, Foods, Reporting and telephone (504) 589–2965. organizations that are independently recordkeeping requirements. owned and operated and are not SUPPLEMENTARY INFORMATION: . Therefore, under the Federal Food, dominant in their field and (2) Drug, and Cosmetic Act and under Regulatory History governmental jurisdictions with authority delegated to the Commissioner The Coast Guard published a notice of populations of less than 50,000. A of Food and Drugs, 21 CFR part 113 is public notice was issued, requesting amended as follows: proposed rulemaking on March 3, 1997 (62 FR 9408). No comments were comments or objections to this proposed PART 113ÐTHERMALLY PROCESSED received in response to the proposed rule, specifying how the proposed rule LOW-ACID FOODS PACKAGED IN rule. No public hearing was requested would create a hardship on the HERMETICALLY SEALED and none was held. objector’s method of operation. The CONTAINERS public notice was mailed to a list of all Discussion of the Rule business owners and operators which 1. The authority citation for 21 CFR Growing industry and commercial are located on the Industrial Seaway part 113 continues to read as follows: retail development in the area over the Canal. No letters of objection were Authority: Secs. 402, 701, 704 of the past few years has increased vehicular received from any of the businesses. Federal Food, Drug, and Cosmetic Act (21 traffic on Lorraine-Cowan Road. The Therefore, the Coast Guard certifies U.S.C. 342, 371, 374); sec. 361 of the Public traffic has become unreasonably delayed under 5 U.S.C. 605(b) that this Health Service Act (42 U.S.C. 264). during bridge openings in the mornings rulemaking will not have a significant economic impact on a substantial § 113.40 [Amended] and afternoons when local residents are enroute to work and school. number of small entities. 2. Section 113.40 Equipment and Data submitted by the Harrison procedures is amended in paragraph Collection of Information County Board of Supervisors showed (b)(10)(ii) by removing the word This final rule contains no collection that, on average, 50,540 vehicles cross ‘‘warm’’ and adding in its place the of information requirements under the and 8 vessels pass each month during word ‘‘warn’’. Paperwork Reduction Act (44 U.S.C. the morning from 6:30 a.m. to 8:30 a.m. 3501 et seq.). Dated: June 3, 1997. and 46,000 vehicles cross and 3 vessels William K. Hubbard, pass each month during the afternoon Federalism Associate Commissioner for Policy from 4:30 p.m. to 6 p.m. The notice of This action has been analyzed in Coordination. proposed rulemaking proposed to allow accordance with the principles and [FR Doc. 97–15166 Filed 6–10–97; 8:45 am] the bridge to remain closed during these criteria contained in Executive Order BILLING CODE 4160±01±F time periods. No comments were 12612 and it has been determined that received on the notice of proposed this rule making does not have rulemaking. Few vessels pass the bride sufficient federalism implications to DEPARTMENT OF TRANSPORTATION during the bridge closure periods and warrant the preparation of a Federalism the revised schedule discontinues the Assessment. Coast Guard one-hour noon closure. Vessel operators will be able to adjust their arrival times Environment 33 CFR Part 117 at the bridge to avoid the temporary The Coast Guard considered the [CGD08±96±056] closure periods with very little environmental impact of this final rule inconvenience or added expense. The and concluded that under paragraph RIN 2115±AE47 Coast Guard is, therefore, revising the 2.B.2.g(5) of Commandant Instruction M16475.1B, this rulemaking is Drawbridge Operation Regulation; draw opening schedule as proposed. categorically excluded from further Industrial Seaway Canal, Mississippi Regulatory Evaluation environmental documentation. A AGENCY: Coast Guard, DOT. This rule is not a significant ‘‘Categorical Exclusion Determination’’ ACTION: Final rule. regulatory action under section 3(f) of has been prepared and placed in the Executive Order 12866 and does not rulemaking docket. SUMMARY: The Coast Guard is changing require an assessment of potential cost the regulation governing the operation and benefits under section 6(a)(3) of that List of Subjects in 33 CFR Part 117 of the double leaf bascule span order. It has not been reviewed by the Bridges. drawbridge on Lorraine-Cowan Road, Office of Management and Budget under Regulations across the Industrial Seaway Canal, mile that order. It is not significant under the 11.3, near Handsboro, Harrison County, regulatory policies and procedures of In consideration of the foregoing, part Mississippi. The new operating the Department of Transportation (DOT) 117 of title 33, Code of Federal schedule allows the draw to remain (44 FR 11040; February 26, 1979). The Regulations, is amended as follows: closed to navigation from 6:30 a.m. to Coast Guard expects the economic PART 117ÐDRAWBRIDGE 8:30 a.m. and from 4:30 p.m. to 6 p.m., impact of this rule to be so minimal that OPERATION REGULATIONS Monday through Friday, except Federal a full Regulatory Evaluation under holidays. The new schedule will paragraph 10e of the regulatory policies 1. The authority citation for part 117 provide relief for congested vehicular and procedures of DOT is unnecessary. continues to read as follows: Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31723

Authority: 33 U.S.C 499; 49 CFR 1.46; 33 holidays. The telephone number is (510) 10 miles may be experienced. The short CFR 1.05–1(g); section 117.255 also issued 437–3514. Commander (Pow) maintains term costs attributable to these detours under the authority of Pub. L. 102–587, 106 the public docket for this rulemaking. are outweighed by the long-term Stat. 5039. FOR FURTHER INFORMATION CONTACT: benefits to be gained by the installation 2. Section 117.680 is revised to read Susan Worden, Bridge Administrator, of a new bridge likely to provide as follows: Eleventh Coast Guard District, (510) uninterrupted rail service and timely, 437–3514. reliable openings for waterborne traffic § 117.680 Industrial Seaway Canal. for many years. The draw of the Lorraine-Cowan Road SUPPLEMENTARY INFORMATION: This temporary rule extends the Bridge across the Industrial Seaway Regulatory History effective date of the previously issued Canal, mile 11.3, need not be opened temporary rule authorizing a five month from 6:30 a.m. to 8:30 a.m. and from On August 28, 1990, the Coast Guard (150 day) closure of the bridge. Closure 4:30 p.m. to 6 p.m., Monday through published a notice of proposed for 5 months is necessary both to Friday, except Federal holidays. rulemaking NPRM in the Federal facilitate replacement of the span and Register (55 FR 35154) concerning reconstruction of the bridge support Dated: May 21, 1997. closure of the Henry Ford Avenue Paul J. Prokop, towers, as well as to avoid disrupting Railroad Bridge (Ford Bridge), across essential rail service during Captain, U.S. Coast Guard, Commander, Cerritos Channel of Los Angeles/Long Eighth Coast Guard District, Acting. reconstruction. The SNPRM advertised Beach, mile 4.8 Long Beach, California, a closure beginning in November 1996. [FR Doc. 97–15286 Filed 6–10–97; 8:45 am] for rehabilitation. On July 8, 1996, the Due to construction delays, the BILLING CODE 4910±14±M Coast Guard published a supplemental temporary final rule established the notice of proposed rulemaking (SNPRM) change in operating regulation effective in the Federal Register (61 FR 35702) DEPARTMENT OF TRANSPORTATION February 1, 1997. Additional concerning closure of the bridge for construction delays were experienced replacement. On November 20, 1996 the Coast Guard and actual closure of the span did not Coast Guard published a Temporary begin until May 6, 1997, necessitating 33 CFR Part 117 Final Rule in the Federal Register (61 this extension of the effective period. FR 59025) changing the bridge operation [CG11±90±03] regulation, allowing closure during Regulatory Evaluation RIN±2115±A47 replacement. On May 6, 1997, the This rule is not a significant Captain of the Port issued a safety zone regulatory action under section 3(f) of Drawbridge Operation Regulations; (COTP Los Angeles-Long Beach, CA; Executive Order 12866 and does not Cerritos Channel, CA 97–002; 33 CFR § 165.T11–057) require an assessment of potential costs prohibiting general navigation in a and benefits under section 6(a)(3) of that AGENCY: Coast Guard, DOT. defined regulated area around the bridge Order. It has been exempted from ACTION: Temporary final rule; change of during replacement. review by the Office of Management and effective date. Budget under that order. It is not Background and Purpose significant under the Department of SUMMARY: At the request of the Port of At the request of the Port of Los Transportation Regulatory Policies and Los Angeles, the Coast Guard is Angeles, the Coast Guard is extending Procedures (44 FR 11040, February 26, temporarily extending the effective date the closure period for the Ford Bridge 1979). The Coast Guard previously for the temporary change to the replacement project because the project calculated the expected economic regulation for operation of the Henry is behind schedule. The Ford Bridge, impact of this rule to be approximately Ford Avenue Railroad Bridge (Ford also known as the Badger Avenue $1 million to waterways users (to detour Bridge), across Cerritos Channel of Los Bridge, provides the only rail access to around the work site) and $2.5 million Angeles/Long Beach, mile 4.8 Long Terminal Island. It crosses a waterway to the bridge owner (to expedite work). Beach, California to authorize it to used by oceangoing cargo ships, tugs Although the current extension may remain in the closed to navigation and barges, tour boats, commercial cause these figures to be elevated, the position for an additional period from fishing vessels, and recreational boats. Coast Guard estimates that they remain July 1 to October 2, 1997. The action is The permanent regulations governing its below the threshold levels requiring a necessary both to facilitate operation require the bridge to remain formal Regulatory Evaluation. (Since the reconstruction of the bridge and to fully open except for the passage of original figures contemplate detours avoid disrupting essential rail service trains or for maintenance. around the work site, the additional during reconstruction. The closure The bridge is over 70 years old and no economic impact of the safety zone is period was most recently established as longer meets California seismic marginal.) The draft economic analysis February 1 to June 30, 1997; however, standards or Federal Railroad published with the NPRM was the project has been delayed, and the Administration clearance standards. superseded by a more detailed closure actually began on May 6, 1997. Interruption or delay of rail and water economic analysis in the Environmental EFFECTIVE DATES: This temporary final traffic is likely if the existing bridge Impact Statement, which is available in rule is effective from June 30 through were either to malfunction or to be the docket for inspection or copying October 2, 1997. damaged by seismic activity. In 1995, where indicated under ADDRESSES. ADDRESSES: Unless otherwise indicated, the Coast Guard issued a permit to documents referred to in this preamble replace the bridge. Replacement cannot Small Entities are available for inspection or copying be accomplished without closing the Under the Regulatory flexibility Act (5 at the office of Commander (Pow), bridge span for a period of five months. U.S.C. 601 et seq.) the Coast Guard must Eleventh Coast Guard District, Building Closure of the bridge will require consider whether this rule will have a 50–6, Coast Guard Island, Alameda, CA maritime traffic to use an alternate route significant economic impact on a 94501–5100 between 7 a.m. and 4 p.m., through the outer harbor. Detours of 5 substantial number of small entities. Monday through Friday, except Federal miles are expected; maximum detours of ‘‘Small entities’’ may include (1) small 31724 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations businesses and not-for-profit § 117.147 [Amended] years after initial dissemination abroad, organizations that are independently 2. Effective June 30, 1997 through or, if not disseminated, 12 years from owned and operated and are not October 2, 1997, § 117.147 is amended the preparation of the material. dominant in their fields and (2) by suspending paragraph (b) and Previously, section 501 of the United governmental jurisdictions with revising paragraph (c) to read as follows: States Information and Educational population of less than 50,000. The Exchange Act of 1948 (22 U.S.C. 1461) estimated cost to each recreational § 117.147 Cerritos Channel had prevented the domestic mariner affected by this extended * * * * * dissemination by the United States regulation and the safety zone is less (c) During the period June 30, 1997 Information Agency of such materials than $100. The estimated cost per through October 2, 1997, the bridge will prepared for dissemination abroad in ‘‘small business’’ towing company for be undergoing reconstruction and the perpetuity unless specifically and personnel hours and fuel consumption draw need not open for the passage of individually released by Congressional during detours remains less than vessels. legislation. The amended law allows $100,000. Because the impact of this Dated: May 29, 1997. release and dissemination once the 12- proposal is expected to be limited and J.C. Card, year threshold has been met and of relatively short duration, the Coast Vice Admiral, U.S. Coast Guard, Commander, instructs NARA to provide regulations Guard certifies under section 605(b) of Eleventh Coast Guard District. to ensure that any copyrights or underlying rights that may exist in these the Regulatory Flexibility Act (5 U.S.C. [FR Doc. 97–15284 Filed 6–10–97; 8:45 am] USIA materials have been protected and 601 et seq.) that this rule will not have BILLING CODE 4910±14±M a significant impact on a substantial releases obtained prior to dissemination number of small entities. in the United States. For the public this amended law provides access and Collection of Information NATIONAL ARCHIVES AND RECORDS potential use of over 35,000 USIA ADMINISTRATION motion picture films, 3,000 USIA This rule contains no collection of videotape productions, and over 20,000 information requirements under the 36 CFR Part 1256 sound recordings of Voice of America Paperwork Reduction Act (44 U.S.C. RIN 3095±AA55 (VOA) radio broadcasts that have been 3501 et seq.) selected as permanently valuable Federalism Domestic Distribution of United States audiovisual records and have been Information Agency Materials in the transferred into the custody of the The Coast Guard has analyzed this Custody of the National Archives Motion Picture, Sound and Video proposal under the principles and AGENCY: Branch of NARA. These regulations criteria contained in Executive Order National Archives and Records Administration. only apply to USIA records in NARA’s 12612 and has determined that this rule custody that were prepared for ACTION: Final rule. does not raise sufficient federalism dissemination abroad. implications to warrant the preparation SUMMARY: The National Archives and This final rule is not a significant of a Federalism Assessment. Records Administration (NARA) is regulatory action for purposes of Environment issuing regulations which govern the Executive Order 12866 of September 30, domestic distribution of USIA materials 1993, and has not been reviewed by the The Coast Guard has considered the prepared for dissemination abroad that Office of Management and Budget. As environmental impact of this rule. The are in the custody of NARA. Public Law required by the Regulatory Flexibility Coast Guard prepared an Environmental 101–246, section 202, requires the Act, it is hereby certified that this rule Impact Statement for the replacement of Archivist of the United States to issue will not have a significant impact on this historic bridge. The EIS analyzed necessary regulations to ensure that small entities. This rule does not the environmental and economic impact persons seeking release of such USIA contain any information collections of a 5 month bridge closure. The draft materials in the United States have subject to the Paperwork Reduction Act. Environmental Assessment published secured and paid for necessary rights This rule is not a major rule as defined with the NPRM has been superseded by and licenses. This rule affects members in 5 U.S.C. chapter 8, Congressional the more detailed environmental of the public who wish to use or obtain Review of Agency Rulemaking. analysis in the Final EIS, which is copies of USIA audiovisual records List of Subjects in 36 CFR Part 1256 available in the docket for inspection of transferred to NARA. Archives and records, Copyright, copying where indicated under EFFECTIVE DATE: July 11, 1997. ADDRESSES. Reporting and recordkeeping FOR FURTHER INFORMATION CONTACT: requirements. List of Subjects in 33 CFR Part 117 Nancy Allard at 301–713–7360, For the reasons set forth in the extension 226. preamble, part 1256 of title 36, Chapter Bridges. SUPPLEMENTARY INFORMATION: NARA XII of the Code of Federal Regulations For the reasons set out in the published a proposed rule for public is amended as follows: preamble, the Coast Guard is amending comment on January 31, 1997 (62 FR 33 CFR Part 117 as follows: 4669). No comments were received. The PART 1256ÐRESTRICTIONS ON THE proposed rule is adopted as final USE OF RECORDS PART 117Ð[AMENDED] without change. 1. The authority citation for Part 1256 On February 16, 1990, Public Law is revised to read as follows: 1. The authority citation for Part 117 101–246 (104 Stat. 49) amended the continues to read as follows: United States Information and Authority: 44 U.S.C. 2101–2118; 22 U.S.C. 1461(b). Authority: 33 U.S.C. 499; 49 CFR 1.46; and Educational Exchange Act (22 U.S.C. 33 CFR 1.05–1(g); section 117.255 also issued 1461) to provide for the domestic 2. A new subpart C, consisting of under the authority of Pub. L. 102–587, 106 release of motion pictures, videotapes, §§ 1256.50 through 1256.60, is added to Stat. 5039. sound recordings and other materials 12 part 1256 as follows: Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31725

Subpart CÐDomestic Distribution of United abroad, or, in the case of materials fair use provisions of 17 U.S.C. 107. No States Information Agency Materials in the prepared for foreign dissemination but copies of USIA audiovisual records will National Archives of the United States not disseminated abroad, until it has be provided until the fees authorized Sec. been at least 12 years since the under part 1258 of this chapter have 1256.50 Scope of subpart. preparation of the materials. been paid to NARA. 1256.52 Purpose. (a) Access to USIA audiovisual 1256.54 Definition. records that neither have copyright (3) If NARA has determined that a 1256.56 Transfer of USIA audiovisual protection nor contain copyright USIA audiovisual record prepared for records to NARA. material. USIA audiovisual records dissemination abroad may have 1256.58 Domestic distribution of USIA copyright protection or may contain audiovisual records transferred to prepared for dissemination abroad that NARA. NARA determines neither have copyrighted material, persons seeking 1256.60 Fees. copyright protection nor contain the release of such material in the copyrighted material are available for United States may obtain copies of the § 1256.50 Scope of subpart. examination and copying in accordance material by submitting to NARA written This subpart prescribes procedures with the regulations set forth in parts evidence from all copyright and/or governing the public availability of 1252, 1253, 1254, 1256, and 1258 of this license owner(s) that any necessary fees audiovisual records and other materials chapter. In determining whether have been paid or waived and any subject to 22 U.S.C. 1461(b) that have materials have copyright protection or necessary licenses have been secured. been transferred to the National contain copyrighted material, NARA (4) If NARA has determined that a Archives of the United States by the will rely on information contained United States Information Agency USIA audiovisual record prepared for within or affixed to individual records dissemination abroad may have (USIA). (e.g., copyright notices); information copyright protection or may contain contained within relevant USIA § 1256.52 Purpose. copyrighted material, persons seeking production, title, or other files that have the release of such material in the This subpart implements section 501 been transferred to NARA by USIA; of the United States Information and information provided by requesters United States may obtain copies of the Educational Exchange Act of 1948 (22 pursuant to paragraph (b)(2) of this material by submitting to NARA the U.S.C. 1461), as amended by section 202 section (e.g., evidence from the following certification statement: of Public Law 101–246 (104 Stat. 49, Copyright Office that copyright has I, (printed name of individual), certify that Feb. 16, 1990). This subpart prescribes lapsed or expired); and information my use of the copyrighted portions of the procedures by which the public may provided by copyright or license (name or title and NARA identifier of work inspect and obtain copies of USIA holders. involved) provided to me by the National audiovisual records and other materials (b) Reproduction of USIA audiovisual Archives and Records Administration prepared for dissemination abroad that records that either have copyright (NARA), will be limited to private study, have been transferred to NARA for protection or contain copyrighted scholarship, or research purposes, or for preservation and domestic distribution. material. other purposes permitted by the Copyright § 1256.54 Definition. (1) USIA audiovisual records Act of 1976, as amended. I understand that prepared for dissemination abroad that I am solely responsible for the subsequent For the purposes of this subpart— NARA determines may have copyright use of the copyrighted portions of the work Audiovisual records mean motion protection or may contain copyrighted identified above. picture films, videotapes, and sound material will be made available for recordings, and other materials examination in NARA research facilities (c) In every instance where a copy of regardless of physical form or in accordance with the regulations set an audiovisual record is provided under characteristics that were prepared for forth in this Title. this subpart, and NARA has determined dissemination abroad. (2) Copies of USIA audiovisual that the work being reproduced may § 1256.56 Transfer of USIA audiovisual records prepared for dissemination have copyright protection or may records to NARA. abroad that NARA determines may have contain copyrighted material, NARA The provisions of 44 U.S.C. 2107 and copyright protection or may contain shall provide a warning notice of 36 CFR part 1228 apply to the transfer copyrighted material will be provided to copyright. of USIA audiovisual records to NARA, persons seeking the release of such (d) Nothing in this section shall limit and to their deposit with the National materials in the United States once NARA’s ability to make copies of USIA Archives of the United States. At the NARA has audiovisual records for preservation, (i) Ensured, in accordance with time the audiovisual records are arrangement, repair and rehabilitation, paragraph (b)(3) of this section, that the transferred to NARA, the Director of description, exhibition, security, or persons seeking copies have secured USIA, in accordance with § 1228.184(e) reference purposes. of this chapter, will also transfer any and paid for necessary United States production or title files bearing on the rights and licenses; § 1256.60 Fees. ownership of rights in the productions (ii) Been provided with evidence from Copies or reproductions of in connection with USIA’s official the Copyright Office sufficient to audiovisual records will only be overseas programming. determine that copyright protection in the materials sought, or relevant provided under this subpart upon § 1256.58 Domestic distribution of USIA portions therein, has lapsed or expired; payment of fees in accordance with 44 audiovisual records transferred to NARA. or U.S.C. 2116(c) and 22 U.S.C. 1461(b)(3). No USIA audiovisual records in the (iii) Received a requester’s signed Dated: June 4, 1997. National Archives of the United States certification in accordance with that were prepared for dissemination paragraph (b)(4) of this section that the John W. Carlin, abroad will be available for copying materials sought will be used only for Archivist of the United States. until it has been at least 12 years since purposes permitted by the Copyright [FR Doc. 97–15258 Filed 6–10–97; 8:45 am] such materials were first disseminated Act of 1976, as amended, including the BILLING CODE 7515±01±P 31726 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

POSTAL SERVICE This rule amends 39 CFR 233.7(j) so 981(a)(1)(C), a civil forfeiture statute, the Postal Inspection Service can specifically provide for restoration or 39 CFR Part 233 transfer forfeited assets to victims of the remission to victims and, therefore, are offense or related offenses underlying covered by § 233.7(j), as amended. Revision of Regulations Governing the particular forfeiture actions. Under the List of Subjects in 39 CFR Part 233 Remission or Mitigation of Forfeitures current regulations, standing to seek AGENCY: Postal Service. remission or mitigation is limited to Administrative practice and procedure, Crime, Seizures and ACTION: Final rule. parties having a present legally cognizable interest in the forfeited forfeitures. SUMMARY: This rule amends and adopts property (e.g., owners, lienholders), and Accordingly, Title 39, part 233, of the regulations that govern the processing of unless a particular victim has such an Code of Federal Regulations is amended petitions for remission and mitigation of interest, forfeited assets cannot be used as follows: forfeitures by the United States Postal to restore property to those victimized Inspection Service. The amendments are by the criminal conduct. The PART 233Ð[AMENDED] made in an effort to ameliorate the harsh amendments permit the agency to 1. The authority citation for part 233 results in individual forfeiture cases and transfer certain forfeited assets to continues to read as follows: to provide relief to innocent persons victims of certain fraud-type offenses whose property is used by others for who lack a present ownership interest Authority: 39 U.S.C. 101, 401, 402, 403, criminal purposes. The revised in particular forfeited assets, but who 404, 406, 410, 411, 3005(e)(1); 12 U.S.C. 3401–3422; 18 U.S.C. 981, 1956, 1957, 2254, regulations parallel those promulgated are victims of the offense underlying the 3061; 21 U.S.C. 881; Inspector General Act of by the Department of Justice at 62 FR forfeiture or related offense where the 1978, as amended (Pub. L. No. 95–452, as 314–322 on January 3, 1997. applicable statutes allow such a transfer. amended), 5 U.S.C. App. 3. EFFECTIVE DATE: June 11, 1997. The current procedures in § 233.7(j) 2. Section 233.7 is amended by FOR FURTHER INFORMATION CONTACT: permit remission and mitigation to revising paragraph (j) to read as follows: Associate Counsel Maria D. Perez, victims of crime when the property was Postal Inspection Service, (202) 268– forfeited under a statute that specifically § 233.7 Forfeiture authority and 5477. provides for the restoration or remission procedures. SUPPLEMENTARY INFORMATION: United of forfeited property to victims. An * * * * * States Postal Service regulations example of such a statute is 18 U.S.C. (j) Remission or mitigation of pertaining to seizures and forfeitures 1963(g), which authorizes the Attorney administrative, civil, and criminal conducted by the Postal Inspection General to ‘‘restore forfeited property to forfeitures.—(1) Authority, purpose, and Service were promulgated by the Postal victims of a violation of this chapter.’’ scope.—(i) Purpose. This section sets Service in 1987 and are codified at 39 Some statutes, however, do not so forth the procedures for Postal CFR 233.7, Forfeiture authority and provide, and instead adopt the Inspection Service officials to follow procedures. provisions of customs laws relating to when considering remission or A grant of a petition for remission of remission. For example, 21 U.S.C. mitigation of administrative forfeitures forfeiture provides for the return of 881(d) provides that ‘‘[t]he provisions of under the jurisdiction of the Postal forfeited property or the return of an law relating to the seizure, summary Service. The purpose of these appropriate property interest to and judicial forfeiture, and regulations is to provide a basis for individuals who can show that they condemnation of property for violation ameliorating the effects of forfeiture acted without willful negligence. of customs laws; * * * the remission or through the partial or total remission of Mitigation provides for the partial or mitigation of such forfeitures; and the forfeiture for individuals who have an total relief from forfeiture through the compromise of claims shall apply to interest in the forfeited property but return of some or all of the property seizures and forfeitures incurred * ** who did not participate in, or have and/or the imposition of monetary or under any of the provisions of this knowledge of, the conduct that resulted other conditions. subchapter.’’ This new rule does not in the property being subject to This new rule establishes a permit remission or mitigation to forfeiture and, where required, took all comprehensive set of procedures, victims where the forfeiture occurs reasonable steps under the understandable by individuals and their under statutes that adopt the provisions circumstances to ensure that such attorneys, that will govern the handling of the customs laws without including property would not be used, acquired, and processing of petitions for language specifically authorizing or disposed of contrary to law. remission or mitigation in the restoration or remission to victims of Additionally, these regulations provide overwhelming majority of Postal Service crimes (e.g., forfeitures pursuant to the for partial or total mitigation of the forfeiture cases. civil money laundering statute, 18 forfeiture and imposition of alternative In addition to establishing a U.S.C. 981(a)(1)(A)). In such cases, the conditions in appropriate consistent petition process, this new remission process is governed solely by circumstances. rule seeks to: (1) Clarify provisions in the customs laws (specifically, 19 U.S.C. (ii) Authority to grant remission and existing rules; (2) distinguish between 1613 and 1618), which do not authorize mitigation. (A) Remission and the bases for the remission of forfeiture remission to those who lack a legally mitigation functions in administrative and the mitigation of forfeiture; (3) cognizable interest in the property. forfeitures are performed by the agency address inadequacies that have been However, the amended rules will permit seizing the property. Within the Postal detected in current rules due, in part, to remission to victims should the Inspection Service, authority to grant the increased use of forfeiture by federal applicable forfeiture statutes be remission and mitigation is delegated to law enforcement agencies; (4) promote amended to provide specifically for the the Independent Counsel, Office of the consistent and predictable decisions on restoration or remission of forfeited Chief Inspector, Washington, DC. petitions; and (5) recognize the interests properties to victims. At the present (B) Remission and mitigation of victims of crime in forfeited moneys time, most of the criminal forfeiture functions in judicial cases are within and other properties. statutes as well as 18 U.S.C. the jurisdiction of the Criminal Division Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31727 of the Department of Justice. Within the (viii) The term lienholder means a forfeited property under these Criminal Division, authority to grant creditor whose claim or debt is secured regulations. A petitioner may be an remission and mitigation has been by a specific right to obtain satisfaction owner of forfeited property as defined in delegated to the Chief, Asset Forfeiture against the particular property subject to paragraph (j)(2)(x) of this section; a and Money Laundering Section. forfeiture. A lien creditor qualifies as a lienholder as defined in paragraph (C) The powers and responsibilities lienholder if the lien: (j)(2)(viii) of this section; or a victim as within these regulations may be (A) Was established by operation of defined in paragraph (j)(2)(xxi) of this redelegated to attorneys or managers law or contract; section subject to the limitations of working under the supervision of the (B) Was created as a result of an paragraph (j)(8) of this section. designated officials. exchange of money, goods, or services; (xiv) The term Postal Service Fund (D) The time periods and internal and means the United States Postal Fund requirements established in these (C) Is perfected against the specific established under 39 U.S.C. 2003. regulations are designed to guide the property forfeited for which remission (xv) The term property means real or orderly administration of the remission or mitigation is sought (e.g., a real estate personal property of any kind capable of and mitigation process and are not mortgage, a mechanic’s lien). being owned or possessed. (ix) The term net equity means the intended to create rights or entitlements (xvi) The term record means a series amount of a lienholder’s monetary in favor of individuals seeking of arrests for related crimes, unless the interest in property subject to forfeiture. remission or mitigation. These arrestee was acquitted or the charges Net equity shall be computed by regulations will apply to all decisions were dismissed for lack of evidence; a determining the amount of unpaid on petitions for remission or mitigation conviction for a related crime or principal and unpaid interest at the time made on or after July 1, 1997. These completion of sentence within ten years of seizure, and by adding to that sum regulations will apply to decisions on of the acquisition of the property subject unpaid interest calculated from the date requests for reconsideration of a denial to forfeiture; or two convictions for a of seizure through the last full month of a petition under paragraphs (j)(3)(x) related crime at any time in the past. and (3)(xi) of this section only if the prior to the date of the decision on the petition. Where a rate of interest is set (xvii) The term related crime as used initial decision on the petition was in paragraphs (j)(2)(xvi) and (6)(v) of made under the provisions of this part forth in a security agreement, the rate of interest to be used in this computation this section means any crime similar in effective July 1, 1997. nature to that which gives rise to the (E) This section governs any petition will be the annual percentage rate so specified in the security agreement that seizure of property for forfeiture. For for remission or mitigation filed with example, where property is seized for a the Chief Postal Inspector and is the basis of the lienholder’s interest. In this computation, however, there violation of the federal laws dealing supersedes any Postal Service regulation with drugs, a related crime would be governing petitions for remission or shall be no allowances for attorneys’ fees, accelerated or enhanced interest any offense involving a violation of the mitigation to the extent such regulation federal laws relating to drugs or the laws is inconsistent with this section. charges, amounts set by contract as damages, unearned extended warranty of any state or political subdivision (2) Definitions. As used in this part: thereof relating to drugs. (i) The term administrative forfeiture fees, insurance, service contract charges (xviii) The term related offense as means the process by which property incurred after the date of seizure, used in paragraph (j)(8) of this section may be forfeited by an investigative allowances for dealer’s reserve, or any means: agency rather than through judicial other similar charges. (A) Any predicate offense charged in proceedings. (x) The term owner means the person (ii) The term appraised value means in whom primary title is vested or a Federal Racketeer Influenced and the estimated market value of an asset whose interest is manifested by the Corrupt Organizations Act (RICO) count at the time and place of seizure if such actual and beneficial use of the for which forfeiture was ordered; or or similar property was freely offered for property, even though the title is vested (B) An offense committed as part of sale between a willing seller and a in another. A victim of an offense as the same scheme or design, or pursuant willing buyer. defined in paragraph (j) (2)(xxi) of this to the same conspiracy, as was involved (iii) The term Attorney General means section may also be an owner if he or in the offense for which the forfeiture the Attorney General of the United she has a present legally cognizable was ordered. States or his or her designee. ownership interest in the property (xix) The term Ruling Official means (iv) The term beneficial owner means forfeited. A nominal owner of property any official to whom decision making a person with actual use of, as well as will not be treated as its true owner if authority has been delegated pursuant an interest in, the property subject to he or she is not its beneficial owner. to paragraph (j)(1)(ii) of this section. forfeiture. (xi) The term person means an (xx) The term seizing agency means (v) The term general creditor means individual, partnership, corporation, the federal agency that seized the one whose claim or debt is not secured joint business enterprise, estate, or other property or adopted the seizure of by a specific right to obtain satisfaction legal entity capable of owning property. another agency for federal forfeiture. against the particular property subject to (xii) The term petition means a (xxi) The term victim means a person forfeiture. petition for remission or mitigation of who has incurred a pecuniary loss as a (vi) The term judgment creditor forfeiture under these regulations. This direct result of the commission of the means one who has obtained a judgment definition includes a petition for offense underlying a forfeiture. A drug against the debtor but has not yet restoration of the proceeds of sale of user is not considered a victim of a drug received full satisfaction of the forfeited property and a petition for the trafficking offense under this definition. judgment. value of forfeited property placed into A victim does not include one who (vii) The term judicial forfeiture official use. acquires a right to sue the perpetrator of means either a civil or criminal (xiii) The term petitioner means the the criminal offense for any loss by proceeding in a United States District person applying for remission, assignment, subrogation, inheritance, or Court that may result in a final mitigation, restoration of the proceeds of otherwise from the actual victim, unless judgment and order of forfeiture. sale, or for the appraised value of that person has acquired an actual 31728 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations ownership interest in the forfeited (v) Filing petition with agency. (A) A for the denial or presents a basis clearly property. petition for remission or mitigation of demonstrating that the denial was (xxii) The term violator means the an administrative forfeiture by the erroneous. person whose use or acquisition of the Postal Inspection Service shall be sent (B) In no event shall a request for property in violation of the law to the Chief Postal Inspector, United reconsideration be decided by the same subjected such property to seizure for States Postal Service, 475 L’Enfant Plaza Ruling Official who ruled on the forfeiture. SW, Washington, DC 20260–2100. original petition. (3) Petitions in administrative (B) The petition shall be sworn to by (C) Only one request for forfeiture cases.—(i) Notice of seizure. the petitioner or by the petitioner’s reconsideration of a denial of a petition The notice of seizure and intent to attorney upon information and belief, shall be considered. forfeit the property shall advise any supported by the client’s sworn notice (xi) Restoration of proceeds from sale. persons who may have a present of representation pursuant to 28 U.S.C. (A) A petition for restoration of the ownership interest in the property to 1746, as set out in paragraph (j)(9)(vii) proceeds from the sale of forfeited submit their petitions for remission or of this section. property, or for the appraised value of mitigation within thirty (30) days of the (vi) Agency investigation. Upon forfeited property when the forfeited date they receive the notice in order to receipt of a petition, the Postal property has been retained by or facilitate processing. Petitions shall be Inspection Service shall investigate the delivered to a government agency for considered any time after notice until merits of the petition and prepare a official use, may be submitted by an the forfeited property is placed into written report containing the results of owner or lienholder in cases in which official use, sold, or otherwise disposed that investigation. This report shall be the petitioner: of according to law, except in cases submitted to the Ruling Official for (1) Did not know of the seizure prior involving petitions to restore the review and consideration. to the entry of a declaration of forfeiture; proceeds from the sale of forfeited (vii) Ruling. Upon receipt of the and property. A notice of seizure shall petition and the agency report, the (2) Could not reasonably have known include the title of the seizing agency, Ruling Official shall review the petition of the seizure prior to the entry of a the Ruling Official, the mailing and and the report, and shall rule on the declaration of forfeiture. (B) Such a petition shall be submitted street address of the official to whom merits of the petition. No hearing shall pursuant to paragraphs (j)(3)(ii) through petitions should be sent, and an asset be held. (viii) Petitions granted. If the Ruling (v) of this section within ninety (90) identifier number. Official grants a remission or mitigation days from the date the property is sold (ii) Persons who may file. A petition of the forfeiture, a copy of the decision or otherwise disposed of. for remission or mitigation must be filed shall be sent by certified mail to the (4) Petitions in judicial forfeiture by a petitioner as defined in paragraph petitioner, or, if represented by an cases.—(i) Procedure for filing petition. (j)(2)(xiii) of this section or as prescribed attorney, to the petitioner’s attorney. A If the forfeiture proceedings are judicial, in paragraphs (j)(9) (vii) and (viii) of this copy of the decision shall also be sent a petition for remission or mitigation of section. to the U.S. Marshals Service or other a judicial forfeiture shall be addressed (iii) Contents of petition. (A) All property custodian. The written to the Attorney General; shall be sworn petitions must include the following decision shall include the terms and to by the petitioner or by the petitioner’s information in clear and concise terms: conditions, if any, upon which the attorney upon information and belief, (1) The name, address, and social remission or mitigation is granted and supported by the client’s sworn notice security or other taxpayer identification the procedures the petitioner must of representation pursuant to 28 U.S.C. number of the person claiming an follow to obtain release of the property 1746; and shall be submitted to the interest in the seized property who is or the monetary interest therein. United States Attorney for the district in seeking remission or mitigation; (ix) Petitions denied. If the Ruling which the judicial forfeiture (2) The name of the seizing agency, Official denies a petition, a copy of the proceedings are brought. A petitioner the asset identifier number, and the date decision shall be sent by certified mail also shall submit a copy of the petition and place of seizure; to the petitioner, or, if represented by an to the Chief Postal Inspector if the Postal (3) A complete description of the attorney, to the petitioner’s attorney of Inspection Service was the seizing property including make, model, and record. A copy of the decision shall also agency. serial numbers, if any; and be sent to the U.S. Marshals Service or (ii) Ruling. Department of Justice (4) A description of the petitioner’s other property custodian. The written regulations on petitions for remission or interest in the property as owner, decision shall specify the reason that mitigation in judicial forfeiture cases are lienholder, or otherwise, supported by the petition was denied. The decision stated in 29 CFR 9.4. original or certified bills of sale, shall advise the petitioner that a request (5) Criteria governing administrative contracts, deeds, mortgages, or other for reconsideration of the denial of the remission and mitigation.—(i) documentary evidence. petition may be submitted to the Ruling Remission. (A) The Ruling Official shall (B) Any factual recitation or Official in accordance with paragraph not grant remission of a forfeiture unless documentation of any type in a petition (j)(3)(x) of this section. the petitioner establishes that: must be supported by a sworn affidavit. (x) Request for reconsideration. (A) A (1) The petitioner has a valid, good (iv) Releases. In addition to the request for reconsideration of the denial faith and legally cognizable interest in contents of the petition for remission or of the petition shall be considered if: the seized property as owner or mitigation set forth in paragraph (1) It is postmarked or received by the lienholder as defined in these (j)(3)(iii) of this section, upon request, office of the Ruling Official within ten regulations; and the petitioner shall also furnish the (10) days from the receipt of the notice (2) The petitioner is innocent within agency with an instrument executed by of the denial of the petition by the the meaning of the innocent owner the titled or registered owner and any petitioner; and provisions of the applicable civil other known claimant of an interest in (2) The request is based on forfeiture statute, is a bona fide the property releasing interest in such information or evidence not previously purchaser for value without cause to property. considered that is material to the basis believe that the property was subject to Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31729 forfeiture at the time of the purchase, or forfeiture will promote the interest of unless he or she otherwise qualifies as is one who held a legally cognizable justice and will not diminish the a petitioner under these regulations. interest in the seized property at the deterrent effect of the law. Extenuating (ii) Rival claimants. If the beneficial time of the violation underlying the circumstances justifying such a finding owner of the forfeited property and the forfeiture superior to that of the include those circumstances that reduce owner of a security interest in the same defendant within the meaning of the the responsibility of the petitioner for property each file a petition, and if both applicable criminal forfeiture statute, knowledge of the illegal activity, petitions are found to be meritorious, and is thereby entitled to recover his or knowledge of the criminal record of a the claim of the beneficial owner shall her interest in the forfeited property by user of the property, or failure to take take precedence. statute. (If the applicable civil forfeiture reasonable steps to prevent the illegal (iii) Voluntary bailments. A petitioner statute contains no innocent owner use or acquisition by another for some who allows another to use his or her defense, the innocent owner provisions reason, such as a reasonable fear of property without cost, and who is not in applicable to 21 U.S.C. 881(a)(4) shall reprisal; or the business of lending money secured apply.) Unless otherwise provided by (2) Where the minimum standards for by property or of leasing or renting statute, in the case of petitioners who remission have been satisfied but the property for profit, shall be granted acquired their interest in the property overall circumstances are such that, in remission or mitigation of forfeiture in after the time of the violation the opinion of the Ruling Official, accordance with the provisions of underlying the forfeiture, the question complete relief is not warranted. paragraph (j)(5) of this section. of whether the petitioner had (B) The Ruling Official may in his or (iv) Lessors. A person engaged in the knowledge of the violation shall be her discretion grant mitigation to a party business of leasing or renting real or determined as of the point in time when involved in the commission of the personal property on a long-term basis the interest in the property was offense underlying the forfeiture where with the right to sublease shall not be acquired. certain mitigating factors exist, entitled to remission or mitigation of a (B) The knowledge and including, but not limited to: The lack forfeiture of such property unless the responsibilities of petitioner’s of a prior record or evidence of similar lessor can demonstrate compliance with representative, agent, or employee in criminal conduct; if the violation does all the requirements of paragraph (j)(5) paragraph (j)(5)(i)(A)(2) of this section not include drug distribution, of this section. (v) Straw owners. A petition by any are imputed to the petitioner where the manufacturing, or importation, the fact person who has acquired a property representative, agent, or employee was that the violator has taken steps, such as acting in the course of his or her interest recognizable under these drug treatment, to prevent further employment and in furtherance of the regulations and who knew or had reason criminal conduct; the fact that the petitioner’s business. to believe that the interest was conveyed violation was minimal and was not part (C) The petitioner has the burden of by the previous owner for the purpose of a larger criminal scheme; the fact that establishing the basis for granting a of circumventing seizure, forfeiture, or the violator has cooperated with federal, petition for remission or mitigation of these regulations, shall be denied. A state, or local investigations relating to forfeited property, a restoration of petition by a person who purchases or the criminal conduct underlying the proceeds of sale or appraised value of owns property for another who has a forfeiture; or the fact that complete forfeited property, or a reconsideration record for related crimes as defined in forfeiture of an asset is not necessary to of a denial of such a petition. Failure to paragraph (j)(2)(xvii) of this section, or achieve the legitimate purposes of provide information or documents and a petition by a lienholder who knows or forfeiture. to submit to interviews, as requested, has reason to believe that the purchaser may result in a denial of the petition. (C) Mitigation may take the form of a or owner of record is not the real (D) The Ruling Official shall presume monetary condition or the imposition of purchaser or owner, shall be denied a valid forfeiture and shall not consider other conditions relating to the unless both the purchaser of record and whether the evidence is sufficient to continued use of the property, and the the real purchaser or owner meet the support the forfeiture. return of the property, in addition to the requirements of paragraph (j)(5) of this (E) Willful, materially false statements imposition of any other costs that would section. or information, made or furnished by be chargeable as a condition to (vi) Judgment creditors. (A) A the petitioner in support of a petition for remission. This monetary condition is judgment creditor will be recognized as remission or mitigation of forfeited considered as an item of cost payable by a lienholder if: property, the restoration of proceeds or the petitioner, and shall be deposited (1) The judgment was duly recorded appraised value of forfeited property, or into the Postal Service Fund as an before the seizure of the property for the reconsideration of a denial of any amount realized from forfeiture in forfeiture; such petition, shall be grounds for accordance with the applicable statute. (2) Under applicable state or other denial of such petition and possible If the petitioner fails to accept the local law, the judgment constitutes a prosecution for the filing of false Ruling Official’s mitigation decision or valid lien on the property that attached statements. any of its conditions, or fails to pay the to it before the seizure of the property (ii) Mitigation. (A) The Ruling Official monetary amount within twenty (20) for forfeiture; and may grant mitigation to a party not days of the receipt of the decision, the (3) The petitioner had no knowledge involved in the commission of the property shall be sold, and the monetary of the commission of any act or acts offense underlying forfeiture: amount imposed and other costs giving rise to the forfeiture at the time (1) Where the petitioner has not met chargeable as a condition to mitigation the judgment became a lien on the the minimum conditions for remission, shall be subtracted from the proceeds of forfeited property. but the Ruling Official finds that some the sale before transmitting the (B) A judgment creditor will not be relief should be granted to avoid remainder to the petitioner. recognized as a lienholder if the extreme hardship and that return of the (6) Special rules for specific property in question is not property of property combined with imposition of petitioners. (i) General creditors. A which the judgment debtor is entitled to monetary and/or other conditions of general creditor may not be granted claim ownership under applicable state mitigation in lieu of a complete remission or mitigation of forfeiture or other local law (e.g., stolen property). 31730 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

A judgment creditor is entitled under (1) Return of property. The lienholder victims of an offense, who do not have these regulations to no more than the may obtain possession of the property a present ownership interest in the amount of the judgment, exclusive of after paying the United States, through forfeited property that is clearly any interest, costs, or other fees the Ruling Official, the costs and superior to that of other petitioner including attorney’s fees associated with expenses incident to the forfeiture, the victims). The provisions of this section the action that led to the judgment or its amount, if any, by which the appraised apply only with respect to property collection. value of the property exceeds the forfeited pursuant to statutes that (C) A judgment creditor’s lien must be lienholder’s net equity in the property, explicitly authorize restoration or registered in the district where the and any amount specified in the Ruling remission of forfeited property to property is located if the judgment was Official’s decision as a condition to victims. Victims who have a superior obtained outside the district. remit the property. The Ruling Official, present legally cognizable ownership (7) Terms and conditions of remission at his or her discretion, may waive costs interest in forfeited property may file and mitigation.—(i) Owners. (A) An and expenses incident to the forfeiture. petitions as other owners, subject to the owner’s interest in property that has The Ruling Official shall forward a copy regulations set forth in paragraph been forfeited is represented by the of the decision, a memorandum of (j)(7)(i) of this section. The claims of property itself or by a monetary interest disposition, and the original releases to such owner victims, like those of any equivalent to that interest at the time of the U.S. Marshals Service or other other owners, shall have priority over seizure. Whether the property or a property custodian who shall thereafter the claims of any non-owner victims monetary equivalent will be remitted to release the property to the lienholder; or whose claims are recognized pursuant an owner shall be determined at the (2) Sale of Property and Payment to to this section. discretion of the Ruling Official. Lienholder—Subject to the provisions of (i) Qualifications to file. A victim, as (B) If a civil judicial forfeiture action paragraph (j)(9)(i) of this section, upon defined in paragraph (j)(2)(xxi) of this against the property is pending, release sale of the property, the lienholder may section, of an offense that was the of the property must await an receive the payment of a monetary underlying basis for the criminal, civil, appropriate court order. amount up to the sum of the or administrative forfeiture of specific (C) Where the government sells or lienholder’s net equity, less the property, or a victim of a related offense, disposes of the property prior to the expenses and costs incident to the may be granted remission of the grant of the remission, the owner shall forfeiture and sale of the property, and forfeiture of that property, if in addition any other monetary conditions imposed. receive the proceeds of that sale, less to complying with the other applicable The Ruling Official, at his or her any costs incurred by the government in provisions of this section, the victim discretion, may waive costs and the sale. The Ruling Official, at his or satisfactorily demonstrates that: expenses incident to the forfeiture. her discretion, may waive the deduction (A) A pecuniary loss of a specific (iii) If the lienholder does not notify amount has been directly caused by the of costs and expenses incident to the the Ruling Official of the selection of forfeiture. criminal offense, or related offense, that one of the two options set forth above resulted in the forfeiture, or by a related (D) Where the owner does not comply in paragraph (j)(7)(ii)(B) of this section with the conditions imposed upon offense, and that the loss is supported within twenty (20) days of the receipt of by documentary evidence including release of the property by the Ruling such notification, the Ruling Official Official, the property shall be sold. invoices and receipts; shall direct the U.S. Marshal or other (B) The pecuniary loss is the direct Following the sale, the proceeds shall be property custodian to sell the property result of the illegal acts and is not the used to pay all costs of the forfeiture and pay the lienholder an amount up to result of otherwise lawful acts which and disposition of the property, in the net equity, less the costs and were committed in the course of a addition to any monetary conditions expenses incurred incident to the criminal offense; imposed. The remaining balance shall forfeiture and sale, and any monetary (C) The victim did not knowingly be paid to the owner. conditions imposed. In the event a contribute to, participate in, benefit (ii) Lienholders. (A) When the lienholder subsequently receives a from, or act in a willfully blind manner forfeited property is to be retained for payment of any kind on the debt owed towards the commission of the offense, official use or transferred to a state or for which he or she has already received or related offense, that was the local law enforcement agency or foreign payment as a result of the granting of underlying basis of the forfeiture; government pursuant to law, and remission or mitigation, the lienholder (D) The victim has not in fact been remission or mitigation has been shall reimburse the Postal Service Fund compensated for the wrongful loss of granted to a lienholder, the recipient of to the extent of the payment received. the property by the perpetrator or the property shall assure that: (iv) Where the lienholder does not others; and (1) In the case of remission, the lien comply with the conditions imposed (E) The victim does not have recourse is satisfied as determined through the upon the release of the property, the reasonably available to other assets from petition process; or property shall be sold after forfeiture. which to obtain compensation for the (2) In the case of mitigation, an From the proceeds of the sale, all costs wrongful loss of the property. amount equal to the net equity, less any incident to the forfeiture and sale shall (ii) Pecuniary loss. The amount of the monetary conditions imposed, is paid to first be deducted, and the balance up to pecuniary loss suffered by a victim for the lienholder prior to the release of the the net equity, less any monetary which remission may be granted is property to the recipient agency or conditions, shall be paid to the limited to the fair market value of the foreign government. lienholder. property of which the petitioner was (B) When the forfeited property is not (8) Provisions applicable to victims. deprived as of the date of the occurrence retained for official use or transferred to The provisions of this section apply to of the loss. No allowance shall be made another agency or foreign country victims of an offense underlying the for interest foregone or for collateral pursuant to law, the lienholder shall be forfeiture of property, or of a related expenses incurred to recover lost notified by the Ruling Official of the offense, who do not have a present property or to seek other recompense. right to select either of the following ownership interest in the forfeited (iii) Torts. A tort associated with alternatives: property (or, in the case of multiple illegal activity that formed the basis for Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31731 the forfeiture shall not be a basis for pursuant to 18 U.S.C. 981(e)(3) or (7) (C) Payment to the Postal Service remission, unless it constitutes the shall take priority over claims of Fund of all other costs and expenses illegal activity itself, nor shall remission victims. incident to the forfeiture; be granted for physical injuries to a (9) Miscellaneous Provisions—(i) (D) In the case of victims, payment of petitioner or for damage to a petitioner’s Priority of payment. Except where any amount up to the amount of his or property. otherwise provided in this section, costs her loss; and (iv) Denial of petition. In the exercise incurred by the Postal Inspection (E) Payment of the balance remaining, of his or her discretion, the Ruling Service and other agencies participating if any, to the Postal Service Fund. Official may decline to grant remission in the forfeiture that were incident to (iii) Trustees and other assistants. In where: the forfeiture, sale, or other disposition the exercise of his or her discretion, the (A) There is substantial difficulty in of the property shall be deducted from Ruling Official may use the services of calculating the pecuniary loss incurred the amount available for remission or a trustee, other government official, or by the victim or victims; mitigation. Such costs include, but are appointed contractors to notify potential (B) The amount of the remission, if not limited to, court costs, storage costs, petitioners, process petitions, and make granted, would be small compared with brokerage and other sales-related costs, recommendations to the Ruling Official the amount of expenses incurred by the the amount of any liens and associated on the distribution of property to government in determining whether to costs paid by the government on the petitioners. The expense for such grant remission; or property, costs incurred in paying the assistance shall be paid out of the (C) The total number of victims is ordinary and necessary expenses of a forfeited funds. large and the monetary amount of the business seized for forfeiture, awards for (iv) Other agencies of the United remission so small as to make its information as authorized by statute, States. Where another agency of the granting impractical. expenses of trustees or other assistants United States is entitled to remission or (v) Pro rata basis. In granting pursuant to paragraph (j)(9)(iii) of this mitigation of forfeited assets because of remission to multiple victims pursuant section, investigative or prosecutive an interest that is recognizable under to this section, the Ruling Official costs specially incurred incident to the these regulations, or is eligible for such should generally grant remission on a particular forfeiture, and costs incurred transfer pursuant to 18 U.S.C. 981(e)(6), pro rata basis to recognized victims incident to the processing of the such agency shall request the transfer in when petitions cannot be granted in full petition(s) for remission or mitigation. writing, in addition to complying with due to the limited value of the forfeited The remaining balance shall be the provisions of paragraphs (j)(3) property. However, the Ruling Official available for remission or mitigation. through (5) of this section. The decision may consider, among others, the The Ruling Official shall direct the to make such transfer shall be made in following factors in establishing distribution of the remaining balance in writing by the Ruling Official. appropriate priorities in individual the following order of priority, except (v) Financial institution regulatory cases: that he or she may exercise discretion in agencies. A Ruling Official may direct (A) The specificity and reliability of determining the priority between the transfer of property under 18 U.S.C. the evidence establishing a loss; petitioners belonging to classes 981(e) to certain federal financial (B) The fact that a particular victim is described in paragraphs (j)(9)(iii) and institution regulatory agencies or an suffering an extreme financial hardship; (9)(iv) of this section in exceptional entity acting in their behalf, upon (C) The fact that a particular victim circumstances: receipt of a written request, in lieu of has cooperated with the government in (A) Owners; ruling on a petition for remission or the investigation related to the forfeiture (B) Lienholders; mitigation. or to a related prosecution or civil (C) Federal financial institution (vi) Transfers to foreign governments. action; and regulatory agencies (pursuant to A Ruling Official may decline to grant (D) In the case of petitions filed by paragraph (j)(9)(vi) of this section, not remission to any petitioner other than multiple victims of related offenses, the constituting owners or lienholders); and an owner or lienholder so that forfeited fact that a particular victim is a victim (D) Victims not constituting owners or assets may be transferred to a foreign of the offense underlying the forfeiture. lienholders (pursuant to paragraph (j)(8) government pursuant to 18 U.S.C. (vi) Reimbursement. Any petitioner of this section). 981(i)(1), 19 U.S.C. 1616a(c)(2), or 21 granted remission pursuant to this (ii) Sale or disposition of property U.S.C. 881(e)(1)(E). section shall reimburse the Postal prior to ruling. If forfeited property has (vii) Filing by attorneys. (A) A petition Service Fund for the amount received to been sold or otherwise disposed of prior for remission or mitigation may be filed the extent the individual later receives to a ruling, the Ruling Official may grant by a petitioner or by his or her attorney compensation for the loss of the relief in the form of a monetary amount. or legal guardian. If an attorney files on property from any other source. The The amount realized by the sale of the behalf of the petitioner, the petition petitioner shall surrender the property is presumed to be the value of must include a signed and sworn reimbursement upon payment from any the property. Monetary relief shall not statement by the client-petitioner stating secondary source. be greater than the appraised value of that: (vii) Claims of financial institution the property at the time of seizure and (1) The attorney has the authority to regulatory agencies. In cases involving shall not exceed the amount realized represent the petitioner in this property forfeitable under 18 U.S.C. from the sale or other disposition. The proceeding; 981(a)(1)(C) or (a)(1)(D), the Ruling proceeds of the sale shall be distributed (2) The petitioner has fully reviewed Official may decline to grant a petition as follows: the petition; and filed by a petitioner in whole or in part (A) Payment of the government’s (3) The petition is truthful and due to the lack of sufficient forfeitable expenses incurred incident to the accurate in every respect. funds to satisfy both the petition and forfeiture and sale, including court costs (B) Verbal notification of claims of the financial institution and storage charges, if any; representation is not acceptable. regulatory agencies pursuant to 18 (B) Payment to the petitioner of an Responses and notification of rulings U.S.C. 981 (e)(3) or (7). Generally, amount up to his or her interest in the shall not be sent to an attorney claiming claims of financial regulatory agencies property; to represent a petitioner unless a written 31732 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations notice of representation is filed. No ACTION: Direct final rule. coincidentally with those being extensions of time shall be granted due approved in this notice, and not to delays in submission of the notice of SUMMARY: EPA is approving a State identified below, will be addressed in a representation. Implementation Plan (SIP) revision separate rulemaking action. (viii) Consolidated petitions. At the submitted by the Commonwealth of Pursuant to sections 182(b)(2) and discretion of the Ruling Official in Pennsylvania. This revision establishes 182(f) of the Clean Air Act (CAA), individual cases, a petition may be filed and requires volatile organic Pennsylvania is required to implement by one petitioner on behalf of other compounds (VOC) and nitrogen oxides RACT for all major VOC and NO petitioners, provided the petitions are (NOX) reasonably available control X sources by no later than May 31, 1995. based on similar underlying facts, and technology (RACT) on five major The major source size is determined by the petitioner who files the petition has sources located in Pennsylvania. The its location, the classification of that written authority to do so on behalf of intended effect of this action is to area and whether it is located in the the other petitioners. This authority approve source-specific plan approvals ozone transport region (OTR), which is must be either expressed in documents and operating permits that establish the giving the petitioner the authority to file above-mentioned RACT requirements in established by the CAA. The petitions for remission, or reasonably accordance with the Clean Air Act. This Pennsylvania portion of the implied from documents giving the action is being taken under section 110 Philadelphia ozone nonattainment area petitioner express authority to file of the Clean Air Act. consists of Bucks, Chester, Delaware, claims or lawsuits related to the course DATES: This action will become effective Montgomery, and Philadelphia Counties of conduct in question on behalf of August 11, 1997 unless notice is and is classified as severe. The these other petitioners. An insurer or an received on or before July 11, 1997 that remaining counties in Pennsylvania are administrator of an employee benefit adverse or critical comments will be classified as either moderate or marginal plan, for example, which itself has submitted. If the effective date is nonattainment areas or are designated standing to file a petition as a ‘‘victim’’ delayed, timely notice will be published attainment for ozone. However, under within the meaning of paragraph in the Federal Register. section 184 of the CAA, at a minimum, (j)(2)(xxi) of this section, may also file ADDRESSES: Comments may be mailed to moderate ozone nonattainment area a petition on behalf of all its insured or David Campbell, Air, Radiation, and requirements (including RACT as plan beneficiaries for any claims they Toxics Division, Mailcode 3AT22, U.S. specified in sections 182(b)(2) and may have based on co-payments made Environmental Protection Agency, 182(f)) apply throughout the OTR. to the perpetrator of the offense Region III, 841 Chestnut Building, Therefore, RACT is applicable statewide underlying the forfeiture or the Philadelphia, Pennsylvania 19107. in Pennsylvania. The Pennsylvania perpetrator of a ‘‘related offense’’ within Copies of the documents relevant to this submittals that are the subject of this the meaning of paragraph (j)(2)(xviii) of action are available for public notice are meant to satisfy the RACT this section, if the authority to file inspection during normal business requirements for five sources in claims or lawsuits is contained in the hours at the Air, Radiation, and Toxics Pennsylvania. document or documents establishing the Division, U.S. Environmental Protection Summary of SIP Revision plan. Where such a petition is filed, any Agency, Region III, 841 Chestnut amounts granted as a remission must be Building, Philadelphia, Pennsylvania The details of the RACT requirements transferred to the other petitioners, not 19107; the Air and Radiation Docket for the source-specific plan approvals the party filing the petition; although, in and Information Center, U.S. and operating permits can be found in his or her discretion, the Ruling Official Environmental Protection Agency, 401 the docket and accompanying technical may use the actual petitioner as an M Street, SW, Washington, DC 20460; support document (TSD) and will not be intermediary for transferring the Pennsylvania Department of reiterated in this notice. Briefly, EPA is amounts authorized as a remission to Environmental Protection, Bureau of Air approving a revision to the the other petitioners. Quality Control, P.O. Box 8468, 400 Pennsylvania SIP pertaining to the Stanley F. Mires, Market Street, Harrisburg, Pennsylvania determination of RACT for five major Chief Counsel, Legislative. 17105. sources. Several of the plan approvals [FR Doc. 97–15303 Filed 6–10–97; 8:45 am] FOR FURTHER INFORMATION CONTACT: and operating permits contain conditions irrelevant to the BILLING CODE 7710±12±U Ruth E. Knapp, (215) 566–2191, at the EPA Region III office or via e-mail at determination of VOC or NOX RACT. knapp.ruth@epamail. epa.gov. While Consequently, these provisions are not being included in this approval for ENVIRONMENTAL PROTECTION information may be requested via e- source-specific VOC or NOX RACT. AGENCY mail, any comments must be submitted in writing to the above Region III RACT Determinations 40 CFR Part 52 address. SUPPLEMENTARY INFORMATION: On The following table identifies the [SIPTRAX No. PA±4057a; FRL±5835±4] December 8, 1995, February 20, 1996, individual plan approvals and operating Approval and Promulgation of Air March 21, 1996, April 16, 1996, and permits EPA is approving. The specific Quality Implementation Plans; September 13, 1996, the Commonwealth emission limitations and other RACT Pennsylvania; Approval of VOC and of Pennsylvania submitted formal requirements for these sources are revisions to its State Implementation summarized in the accompanying NOX RACT Determinations for Individual Sources Plan (SIP). Each source subject to this technical support document, which is rulemaking will be identified and available upon request from the EPA AGENCY: Environmental Protection discussed below. Any plan approvals Region III office listed in the ADDRESSES Agency (EPA). and operating permits submitted section of this notice. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31733

PENNSYLVANIAÐVOC AND NOX RACT DETERMINATIONS FOR INDIVIDUAL SOURCES

Plan approval (PA #), Source County operating permit (OP #), Source type ``Major source'' compliance permit (CP #), pollutant

CNG Transmission Corp., Ellisburg .. Potter ...... PA 53±0004A, OP 53±0004, CP 53± Natural Gas Transmission NOX, VOC. 0004A. CNG Transmission Corp., Greenlick Potter ...... PA 53±0003A, OP 53±0003, CP 53± Natural Gas Transmission NOX, VOC. 0003A. CNG Transmission Corp., Crayne .... Greene ...... OP 30±000±089 ...... Natural Gas Transmission NOX. CNG Transmission Corp., State Line Potter ...... OP 53±0008 ...... Natural Gas Transmission NOX, VOC. Station. CNG Transmission Corp., Big Run ... Jefferson ...... PA 33±147 ...... Natural Gas Transmission NOX.

Several of the plan approvals/ effective date by publishing a B. Regulatory Flexibility Act operating permits contain a provision subsequent notice that will withdraw Under the Regulatory Flexibility Act, that allows for future changes to the the final action. All public comments 5 U.S.C. 600 et seq., EPA must prepare emission limitations based on received will then be addressed in a a regulatory flexibility analysis Continuous Emissions Monitoring subsequent final rule based on this assessing the impact of any proposed or (CEM) or other monitoring data. Since action serving as a proposed rule. EPA final rule on small entities. 5 U.S.C. 603 EPA cannot approve emission will not institute a second comment and 604. Alternatively, EPA may certify limitations that are not currently before period on this action. Any parties that the rule will not have a significant it, any changes to the emission interested in commenting on this action impact on a substantial number of small limitations as submitted to EPA on should do so at this time. If no such entities. Small entities include small December 8, 1995, February 20, 1996, comments are received, the public is businesses, small not-for-profit March 21, 1996, April 16, 1996, and advised that this action will be effective enterprises, and government entities September 13, 1996, must be on August 11, 1997. If adverse with jurisdiction over populations of resubmitted to and approved by EPA in comments are received that do not less than 50,000. order for these changes to be pertain to all documents subject to this SIP approvals under section 110 and incorporated into the Pennsylvania SIP. rulemaking action, those documents not subchapter I, part D of the Clean Air Act Consequently, the source-specific RACT affected by the adverse comments will do not create any new requirements but emission limitations that are being be finalized in the manner described simply approve requirements that the approved into the Pennsylvania SIP are here. Only those documents that receive State is already imposing. Therefore, those that were submitted on the above- adverse comments will be withdrawn in because the Federal SIP approval does mentioned dates and are the subject of the manner described here. not impose any new requirements, the this rulemaking notice. These emission Final Action Administrator certifies that it does not limitations will remain unless and until have a significant impact on any small they are replaced pursuant to 40 CFR EPA is approving three plan entities affected. Moreover, due to the part 51 and approved by the U.S. EPA. approvals, four operating permits and nature of the Federal-State relationship In addition, several of the plan two compliance permits as RACT for under the CAA, preparation of a approvals and operating permits contain five individual sources. Nothing in this flexibility analysis would constitute a general provision that would allow action should be construed as Federal inquiry into the economic compliance date extensions at the permitting or allowing or establishing a reasonableness of state action. The request of the source and approval by precedent for any future request for Clean Air Act forbids EPA to base its Pennsylvania without EPA approval. revision to any state implementation actions concerning SIPs on such While EPA does not automatically plan. Each request for revision to the grounds. Union Electric Co. v. U.S. EPA, dismiss the possibility of compliance state implementation plan shall be 427 U.S. 246, 255–66 (1976); 42 U.S.C. date extensions, EPA cannot pre- considered separately in light of specific 7410(a)(2). approve compliance date extensions technical, economic, and environmental C. Unfunded Mandates through a general provision such as that factors and in relation to relevant which occurs in those plan approvals statutory and regulatory requirements. Under Section 202 of the Unfunded and operating permits. Mandates Reform Act of 1995 EPA is approving this SIP revision Administrative Requirements (‘‘Unfunded Mandates Act’’), signed without prior proposal because the A. Executive Order 12866 into law on March 22, 1995, EPA must Agency views this as a noncontroversial prepare a budgetary impact statement to amendment and anticipates no adverse This action has been classified as a accompany any proposed or final rule comments. However, in a separate Table 3 action for signature by the that includes a Federal mandate that document in this Federal Register Regional Administrator under the may result in estimated costs to State, publication, EPA is proposing to procedures published in the Federal local, or tribal governments in the approve the SIP revision should adverse Register on January 19, 1989 (54 FR aggregate; or to private sector, of $100 or critical comments be filed. This 2214–2225), as revised by a July 10, million or more. Under Section 205, action will be effective August 11, 1997 1995 memorandum from Mary Nichols, EPA must select the most cost-effective unless, within 30 days of publication, Assistant Administrator for Air and and least burdensome alternative that adverse or critical comments are Radiation. The Office of Management achieves the objectives of the rule and received. and Budget (OMB) has exempted this is consistent with statutory If EPA receives such comments, this regulatory action from E.O. 12866 requirements. Section 203 requires EPA action will be withdrawn before the review. to establish a plan for informing and 31734 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations advising any small governments that PART 52Ð[AMENDED] of item #4 regarding CO emission may be significantly or uniquely limitations, except for item #9 regarding impacted by the rule. 1. The authority citation for part 52 emission limitation revisions. EPA has determined that the approval continues to read as follows: (4) CNG Transmission Corporation— action proposed/promulgated does not Authority: 42 U.S.C. 7401–7671q. State Line Station, Potter County, OP– include a Federal mandate that may 53–0008, effective January 10, 1996 result in estimated costs of $100 million Subpart NNÐPennsylvania except for the expiration date of the or more to either State, local, or tribal operating permit, except for the portions 2. Section 52.2020 is amended by # governments in the aggregate, or to the adding paragraph (c)(121) to read as of item 22 regarding CO emission private sector. This Federal action follows: limitations. approves pre-existing requirements (5) CNG Transmission Corporation— under State or local law, and imposes § 52.2020 Identification of plan. Big Run, Jefferson County, PA 33–147, no new Federal requirements. * * * * * effective June 27, 1995, except for item Accordingly, no additional costs to (c) * * * #9 regarding emission limitation State, local, or tribal governments, or to (121) Revisions to the Pennsylvania revisions. the private sector, result from this Regulations, Chapter 129.91 pertaining (ii) Additional Material. action. to VOC and NOX RACT, submitted on (A) Remainder of the Commonwealth December 8, 1995, February 20, 1996, of Pennsylvania’s December 8, 1995, D. Submission to Congress and the February 20, 1996, March 21, 1996, General Accounting Office March 21, 1996, April 16, 1996, and September 13, 1996 by the Pennsylvania April 16, 1996, and September 13, 1996 Under section 801(a)(1)(A) as added Department of Environmental Resources submittals pertaining to the RACT by the Small Business Regulatory (now known as the Pennsylvania determinations for the five sources Enforcement Fairness Act of 1996, EPA Department of Environmental listed in (i) above. submitted a report containing this rule Protection): [FR Doc. 97–15095 Filed 6–10–97; 8:45 am] and other required information to the (i) Incorporation by reference. BILLING CODE 6560±50±P U.S. Senate, the U.S. House of (A) Five letters submitted by the Representatives and the Comptroller Pennsylvania Department of General of the General Accounting Environmental Resources (now, the ENVIRONMENTAL PROTECTION Office prior to publication of the rule in Pennsylvania Department of AGENCY today’s Federal Register. This rule is Environmental Protection) transmitting not a ‘‘major rule’’ as defined by section source-specific VOC and/or NOX RACT 40 CFR Part 52 804(2). determinations in the form of plan [AZ 68±0011; FRL±5835±8] E. Petitions for Judicial Review approvals or operating permits on the following dates: December 8, 1995, Approval and Promulgation of State Under section 307(b)(1) of the Clean February 20, 1996, March 21, 1996, Implementation Plans; ArizonaÐ Air Act, petitions for judicial review of April 16, 1996, and September 13, 1996. Maricopa County Ozone this action must be filed in the United (B) Plan approvals (PA), Operating Nonattainment Area States Court of Appeals for the permits (OP), Compliance permits (CP): appropriate circuit by August 11, 1997. (1) CNG Transmission Corporation— AGENCY: Environmental Protection Filing a petition for reconsideration by Ellisburg, Potter County, OP–53–0004, Agency (EPA). the Regional Administrator of this final effective February 29, 1996, except for ACTION: Direct final rule. rule does not affect the finality of this the expiration date of the operating rule for the purposes of judicial review permit; PA–53–0004A effective SUMMARY: EPA is taking direct final nor does it extend the time within February 29, 1996, except for the action approving a State which a petition for judicial review may expiration date of the plan approval; Implementation Plan (SIP) revision be filed, and shall not postpone the and CP–53–0004A except for the submitted by the State of Arizona on effectiveness of such rule or action. This expiration date, except for item #6 April 29, 1997, establishing a action to approve VOC and NOX RACT regarding future compliance extensions. summertime gasoline Reid Vapor determinations for a number of (2) CNG Transmission Corporation— Pressure (RVP) limit of 7.0 pounds per individual sources in Pennsylvania as a Greenlick Compressor Station, Potter square inch (psi) for gasoline distributed revision to the Commonwealth’s SIP County, PA–53–0003A, effective in the Maricopa County (Phoenix) ozone may not be challenged later in December 18, 1995, except for the plan nonattainment area. Arizona has proceedings to enforce its requirements. approval expiration date, except for the lowered the summertime RVP limit for (See section 307(b)(2).) portion of item #3 regarding carbon this area to reduce emissions of volatile monoxide (CO) emissions increases, organic compounds (VOC) in List of Subjects in 40 CFR Part 52 except the portion of item #4 regarding accordance with the requirements of the Environmental protection, Air CO emission limitations; OP–53–0003, Clean Air Act, as amended in 1990 pollution control, Hydrocarbons, effective December 18, 1995 except for (CAA). Arizona’s fuel requirement is not Incorporation by reference, the operating permit expiration date; preempted by federal fuels requirements Intergovernmental relations, Nitrogen and CP–53–0003A, except for the because EPA is finding that the control dioxide, Ozone, Reporting and expiration date of the compliance measure is necessary for the Maricopa recordkeeping requirements. permit, except for item #6 regarding area to attain the national ambient air quality standards (NAAQS) for ozone Dated: May 21, 1997. future compliance extensions. and is approving the measure into the W. T. Wisniewski, (3) CNG Transmission Corporation— Crayne Station, Greene County, OP 30– Arizona SIP. Acting, Regional Administrator, Region III. 000–089, effective December 22, 1995 DATES: This direct final rule is effective 40 CFR part 52, subpart NN of chapter except for the expiration date of the on August 11, 1997, unless EPA receives I, title 40 is amended as follows: operating permit, except for the portion adverse or critical comments by July 11, Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31735

1997. If such comments are received, II. State Submittal completeness criteria in 40 CFR part 51, EPA will withdraw this direct final rule Section 13 of Arizona House Bill Appendix V. and publish a timely notice in the (H.B.) 2001 (1993 Special Session), The SIP submittal contains: ARS 41– Federal Register. originally codified in Arizona Revised 2083(E) (now section (F)) as established ADDRESSES: Written comments should Statutes (ARS) at section 41–2083(E) 2, in section 13 of 1993 Special Session be sent to the Region IX contact listed was passed by the Arizona legislature House Bill 2001; documentation of the below. Copies of the SIP revision are on November 12, 1993. This provision public notice and hearing regarding the available in the docket (#AZ–RVP–97) limits the maximum summer vapor SIP revision, dated March 17, 1994; for this rulemaking, which is open for pressure (or Reid vapor pressure) of evidence of State legal authority; and public inspection at the addresses gasoline fuel sold in the Maricopa area VOC air quality modeling. Additional below. A copy of this notice is also to 7.0 psi beginning May 31, 1995 supporting information regarding available on EPA, Region IX’s website at through September 30, 1995, and will enforcement and compliance assurance http://www.epa.gov/region09. continue to apply from May 31 through for the SIP revision can be found in the September 30 of each year thereafter. ARS (specifically in Chapter 15, Air Planning Office (AIR–2), Air Department of Weights and Measures, of Division, Region IX, U.S. Gasoline distributed in the Maricopa area by refineries, importers, carriers, title 41) and the Arizona Administrative Environmental Protection Agency, 75 Code (ARC). Hawthorne Street, San Francisco, CA retail stations and other end users who sell or dispense gasoline must meet the Arizona Department of Weights and 94105 Measures implements the RVP limit and Arizona Department of Environmental 7.0 psi limit during those periods. The State of Arizona submitted section 13 of has the necessary authority under the Quality, Office of Outreach and ARS and ARC to obtain samples (ARS Information, First Floor, 3033 N. H.B. 2001 to EPA as a SIP revision on April 29, 1997. 41–2066(A)), test (ARS 41–2083(c) and Central Avenue, Phoenix Arizona ARC R20–2–720), prohibit the sale of 85012 III. Clean Air Act Requirements non-conforming gasoline (ARS 41– FOR FURTHER INFORMATION CONTACT: In determining the approvability of a 2066(A)(2) and ARC R20–2–110), and to Roxanne Johnson, Air Planning Office, SIP revision, EPA must evaluate the impose civil penalties on any person AIR–2, Air Division, U.S. proposed revision for consistency with who violates the fuel requirements of Environmental Protection Agency, the requirements of the CAA and EPA any provision of ARS 41–2083 (ARS 41– Region IX, 75 Hawthorne Street, San regulations, as found in section 110 and 2115(a)). EPA has concluded that these Francisco, CA 94105, Telephone: (415) part D of the CAA and 40 CFR part 51 provisions confer on the State the 744–1225. (Requirements for Preparation, requisite authority to enforce compliance with the 7 psi RVP limit. SUPPLEMENTARY INFORMATION: Adoption, and Submittal of Implementation Plans). B. Section 211(c)(4) I. Reid Vapor Pressure For SIP revisions addressing fuel 1. Federal Preemption Reid Vapor Pressure (RVP) is a measures, an additional statutory measure of a gasoline’s volatility and is requirement applies. CAA section CAA section 211(c)(4)(A) preempts a measurement of the rate at which 211(c)(4)(A) prohibits state regulation of certain state fuel regulations by gasoline evaporates and emits VOC; the a fuel characteristic or component for prohibiting a state from prescribing or lower the RVP, the lower the rate of which EPA has adopted a control or attempting to enforce any control or evaporation. The RVP of gasoline can be prohibition, unless the state control is prohibition on any characteristic or lowered by reducing the amount of its identical to the federal control. Section component of a fuel or fuel additive for volatile components, such as butane. 211(c)(4)(C) provides an exception to the purposes of motor vehicle emission Lowering RVP in the summer months this preemption if the measure is control if the Administrator has can offset the effect of summer approved in a SIP. EPA can approve prescribed under section 211(c)(1) a temperature upon the volatility of such a SIP provision if it finds that the control or prohibition applicable to such gasoline, which, in turn, lowers control or prohibition is necessary to characteristic or component of the fuel emissions of VOC. However, because achieve a NAAQS. EPA can make this or fuel additive, unless the state VOC is a necessary component in the finding if no other measures exist that prohibition is identical to the production of ground level ozone in hot would bring about timely attainment or prohibition or control prescribed by the summer months, reduction of RVP will if other measures exist and are Administrator. help ozone nonattainment areas like the technically possible to implement, but EPA first proposed to regulate Maricopa (Phoenix), Arizona, area attain are unreasonable or impracticable. See summertime gasoline RVP in 1987 (52 the NAAQS for ozone 1 and thereby section 211(c)(4)(C). The requirements FR 31274). EPA’s gasoline RVP proposal produce benefits for human health and of section 211(c)(4) are discussed in resulted in a two-phased final regulation the environment. further detail below. that Congress incorporated into the CAA The primary emission benefits from IV. EPA Evaluation at section 211(h). Phase I of the low RVP gasoline come from reductions regulation took effect in 1990 (54 FR in evaporative emissions; exhaust A. General SIP Requirements 11868) for the years 1990 and 1991. emission reductions are very small or As discussed below, EPA has Phase II of the regulation became nonexistent. Because oxides of nitrogen evaluated the submitted SIP revision effective in 1992 (55 FR 23658). These regulations are found in 40 CFR 80.27. (NOX) are a product of combustion, they and has determined that it is consistent will not be found in evaporative with the requirements of the CAA and Under the regulations, the continental emissions, and low RVP gasoline will EPA regulations. On May 8, 1997, EPA United States is divided into two control regions, Class B and Class C. have little or no effect on NOX. found that the April 29, 1997 SIP revision conformed to EPA’s Generally speaking, the Class B states 1 The Maricopa area is classified as a ‘‘moderate’’ are the warmer southern and western ozone nonattainment area under the CAA. 40 CFR 2 This section is currently codified in the ARS as states, and Class C states are the cooler 81.303. section 41–2083(F). northern states. The Phase II regulation 31736 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations limits the volatility of gasoline sold jurisdictions in Maricopa County have are: (1) purge test in I/M (evaluated for during the high ozone season to 9.0 psi adopted and implemented a broad range 2010); (2) final I/M cutpoints; (3) I/M RVP for Class C areas and 7.8 psi RVP of ozone control measures including the testing of constant 4-by-4 vehicles; (4) for Class B ozone nonattainment areas. summertime low RVP limit of 7.0 psi, federal RFG (both Phase I and Phase II Arizona is a Class B state and is an enhanced inspection and RFG at 7.2 psi RVP; (5) adoption of therefore required under the federal rule maintenance (I/M) program, stage II California standards for off-road mobile to meet the 7.8 psi RVP standard. vapor recovery, an employer trip sources; (6) voluntary catalyst Arizona has recently requested to opt reduction program, many transportation replacement program; (7) voluntary into EPA’s reformulated gasoline control measures, and numerous vehicle retirement program; (8) program (RFG). Should that opt in be stationary and area VOC controls. See voluntary commercial lawn mower approved as has been proposed, then the MAG 1993 Ozone Plan and replacement; (9) new standards for the the applicable federal standard for RVP Addendum, Maricopa Association of use of industrial cleaning solvents; (10) in the Maricopa ozone nonattainment Governments, March 1994. alternative fuels tax incentives; (11) area would be dictated by the The State has also recently adopted Motor Vehicle Division registration requirements of the RFG program. Like additional ozone control measures and enforcement and mandatory insurance; the RVP rule, the RFG regulation also undertaken additional planning efforts. (12) pollution prevention; (13) divides the continental United States In January of this year, the State temporary power at construction sites; into two control regions: Region 1 and requested that the Maricopa (14) alternative-fueled buses; and (15) Region 2. The Maricopa area is in nonattainment area be included in traffic light synchronization. See Exhibit Region 1 and would be subject to a EPA’s reformulated gasoline (RFG) 5 of the SIP submittal. maximum RVP limitation of 7.2 psi program to help avoid any ozone Results from the VOC modeling under the federal RFG program. See 40 NAAQS exceedances.3 Legislation demonstration showed that, using 7.0 CFR 80.41. passed in the 1997 session included psi RVP gasoline plus all other measures Because Arizona’s fuel requirement adoption of California’s off-road engine identified including federal RFG, the for the Maricopa nonattainment area standards, a state reformulated gasoline Maricopa area still fails to attain the limiting summertime RVP to 7.0 psi is program,4 and new standards for 12.0 ppm ozone NAAQS in 1999.6 See not identical to the federal fuel industrial cleaning solvents. Finally, the Exhibit 5 of the SIP submittal. Given standards applicable to the fuel Arizona Department of Environmental this result, it is clear that the State’s low characteristic RVP (i.e., federal phase II Quality (ADEQ) has developed a RVP requirement is a necessary volatility limit of 7.8 psi or federal Voluntary Early Ozone Plan (VEOP) component of the strategy to achieve phase I RFG RVP limit of 7.2 psi), including air quality modeling and timely attainment of the ozone strategy Arizona’s requirement is preempted additional control measures beyond in the Maricopa area and that there are unless it is in the Arizona SIP. those included in the legislation. no other measures that are reasonable The State’s RVP SIP submittal 2. Finding of Necessity and practicable that would bring about includes the Urban Airshed Model timely attainment. Section 211(c)(4)(C) allows a state to (UAM) modeling demonstration from prescribe and enforce controls or the draft VEOP. See Exhibit 6, Appendix C. Adjustment of the RVP Lower Limit prohibitions on the use of a fuel or fuel B of the SIP submittal. The modeling in the Federal Reformulated Gas additive for the purposes of motor used 1996 as the base year and Program vehicle emission control if the control evaluated the effects of existing and The federal RFG program includes or prohibition is contained in the future control measures. Arizona’s low standards for the RVP of gasoline. The applicable SIP. Section 211(c)(4)(C) RVP requirement is built into the 1996 maximum RVP of RFG is controlled states that the Administrator may base year inventory and modeled out to 5 primarily because of the increased VOC approve such provisions in a SIP: the 1999 and 2010 projected emissions that result from gasoline with if [s]he finds that the State control or attainment years. higher RVP levels. In addition to a low RVP requirement, prohibition is necessary to achieve the In addition, the minimum RVP national primary or secondary ambient air Arizona evaluated all reasonable and quality standard which the plan implements. practicable additional control measures standard addresses vehicle driveability The Administrator may find that a state that could be implemented in the problems, such as poor starting and control or prohibition is necessary to achieve Maricopa area. The fifteen control running, that can occur when low that standard if no other measures that would measures that were evaluated for 1999 volatility gasoline does not vaporize in bring about timely attainment exist, or if the vehicle engine. As a result, under 40 other measures exist and are technically 3 By letter dated January 17, 1997, Governor CFR 80.42(c)(1), the nationwide possible to implement, but are unreasonable Symington of the State of Arizona applied to EPA summertime minimum RVP allowed for or impracticable. The Administrator may to include the Maricopa County moderate ozone RFG is 6.6 psi, although under 40 CFR make a finding of necessity under this nonattainment area in the federal RFG program. 80.45(f)(1) this minimum RVP standard subparagraph even if the plan for the area Pursuant to the Governor’s letter and section does not contain an approved demonstration 211(k)(6) of the CAA, EPA proposed an effective changes to 6.4 psi beginning in 1998. of timely attainment. date for the federal RFG program of June 1, 1997 or 30 days after the publication of the final notice, 6 The State is continuing to evaluate the results Thus, to implement a state low RVP whichever was later. See 62 FR 7164 (February 18, of the UAM modeling in the VEOP. See ‘‘Status requirement, a state must submit a SIP 1997). Report on the Metropolitan Phoenix Voluntary revision adopting the state fuel control 4 The State RFG program for the Maricopa area Early Ozone Plan,’’ April 1997. This continuing has two phases. By June 1, 1998, gasoline sold must and must include specific information evaluation may change some of the modeling meet standards similar to EPA’s Phase I RFG results, such as the effect of NOX controls on ozone showing the measure is necessary to program or California’s Phase II RFG program. concentrations. Given the continued exceedances of meet the ozone NAAQS, based on the Starting May 1, 1999, gasoline must meet standards the ozone standard in the Maricopa area and the statutory specifications for showing similar to EPA’s Phase II RFG program or area’s rapid rate of growth, it is very unlikely that California’s Phase II RFG program. revised modeling would show that implementation necessity. 5 1999 was chosen as the modeling year because of all identified control measures, including the 7 The State, the Maricopa County air it is the next ozone attainment date in the Clean Air psi RVP limitation, will reduce emissions more pollution control agency, and the local Act after 1996. See CAA 181(a)(1). than is necessary for timely attainment. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31737

Arizona has requested that EPA being approved into the Arizona SIP businesses, small not-for-profit approve a SIP revision setting a under section 110(k)(3) of the CAA as enterprises, and government entities maximum summertime volatility meeting the requirements of section with jurisdiction over populations of standard for the Maricopa area of 7.0 110(a) and part D. less than 50,000. psi. As a result of today’s approval of Nothing in this action should be This federal action authorizes and this SIP revision as well as Arizona’s construed as permitting or allowing or approves requirements previously opt-in to federal RFG, refiners supplying establishing a precedent for any future adopted by the State, and imposes no RFG for the Maricopa area for use implementation plan. Each request for new requirements. Therefore, because during the summer will have to meet an revision to the state implementation this action does not impose any new RVP standard of 6.6 psi minimum (a plan shall be considered separately in requirements, the Administrator federal standard) and 7.0 psi maximum light of specific technical, economic, certifies that it does not have a (the State imposed standard). At the and environmental factors and in significant impact on any small entities March 18, 1997, public hearing and in relation to relevant statutory and affected. Moreover, due to the nature of subsequent comments to the Agency regulatory requirements. the Federal-State relationship under the regarding the Maricopa area opt-in, EPA is publishing this document CAA, preparation of a flexibility various refiners suggested that this without prior proposal because the analysis would constitute Federal narrow RVP range would create gasoline Agency views this as a noncontroversial inquiry into the economic production problems because of testing amendment and anticipates no adverse reasonableness of state action. The variability, but that this problem would comments. However, in a separate Clean Air Act forbids EPA to base its be resolved if the RVP minimum document in this Federal Register actions concerning SIPs on such standard were 6.4 psi. In addition, the publication, EPA is proposing to grounds. Union Electric Co. v. U.S. EPA, American Automobile Manufacturers approve the SIP revision should adverse 427 U.S. 246, 255–66 (1976); 42 U.S.C. Association has indicated in a letter to or critical comments be filed. This 7410(a)(2). EPA, dated April 4, 1997, that a action will be effective August 11, 1997, C. Unfunded Mandates summertime minimum RVP of 6.4 psi unless, within 30 days of its Under Section 202 of the Unfunded for use in the Maricopa area would not publication, adverse or critical Mandates Reform Act of 1995 create vehicle performance problems. comments are received. (‘‘Unfunded Mandates Act’’), signed (See docket AZ–RVP–97.) If the EPA receives such comments, into law on March 22, 1995, EPA must For these reasons, EPA believes it is this action will be withdrawn before the prepare a budgetary impact statement to appropriate to allow a minimum RVP of effective date by publishing a accompany any proposed or final rule 6.4 psi for VOC-controlled RFG in the subsequent document that will that includes a Federal mandate that Maricopa area. As a result, EPA will withdraw the final action. All public may result in expenditures to State, forego enforcement of the 6.6 psi comments received will then be local, and tribal governments in the minimum RVP standard under section addressed in a subsequent final rule aggregate, or to the private sector, of 80.42(c)(1) for VOC-controlled RFG used based on this action serving as a $100 million or more in any one year. in the Maricopa area, including RFG proposed rule. The EPA will not Under Section 205, EPA must select the produced for the Maricopa market that institute a second comment period on most cost-effective and least is used in non-RFG areas around this action. Any parties interested in burdensome alternative that achieves Maricopa, provided the following commenting on this action should do so the objectives of the rule and is conditions are met. at this time. If no such comments are consistent with statutory requirements. (1) RFG must meet a minimum RVP received, the public is advised that this Section 203 requires EPA to establish a standard of 6.4 psi during the period action will be effective August 11, 1997. May 1 through October 31. plan for informing and advising any (2) All other RFG must meet a V. Administrative Requirements small governments that may be significantly or uniquely impacted by minimum RVP standard of 6.6 psi. A. Executive Order 12866 (3) The refiner or importer must the rule. specify in the product transfer This action has been classified as a EPA has determined that this documents, required in section 80.77, Table 3 action for signature by the approval action does not include a the VOC-controlled RFG is for use only Regional Administrator under the Federal mandate that may result in in the Maricopa covered area. procedures published in the Federal expenditures of $100 million or more to Enforcement of the RFG requirements Register on January 19, 1989 (54 FR either State, local, and tribal in this manner will expire on January 1, 2214–2225), as revised by a July 10, governments in the aggregate, or to the 1998. (See EPA letter dated, April 18, 1995 memorandum from Mary Nichols, private sector in any one year. This 1997, to Urvan Sternfels, President, Assistant Administrator for Air and Federal action authorizes and approves National Petroleum Refiners Association Radiation. The Office of Management requirements previously adopted by the from Steven A. Herman, Assistant and Budget (OMB) has exempted this State, and imposes no new Administrator). regulatory action from E.O. 12866 requirements. Accordingly, no review. additional costs to State, local, or tribal D. Conclusion B. Regulatory Flexibility governments, or to the private sector, EPA has evaluated the submitted SIP will result from this action. revision and has determined that it is Under the Regulatory Flexibility Act, consistent with the CAA and EPA 5 U.S.C. 600 et seq., EPA must prepare D. Submission to Congress and the regulations. EPA has also found that a regulatory flexibility analysis General Accounting Office Arizona’s 7 psi RVP limit is necessary assessing the impact of any proposed or Under section 801(a)(1)(A) of the for attainment in the Maricopa ozone final rule on small entities. 5 U.S.C. 603 Administrative Procedure Act (APA) as nonattainment area, as required by and 604. Alternatively, EPA may certify amended by the Small Business section 211(c)(4)(C) for approval into the that the rule will not have a significant Regulatory Enforcement Fairness Act of SIP. Therefore, Arizona’s requirement to impact on a substantial number of small 1996, EPA submitted a report containing limit summertime low RVP gasoline is entities. Small entities include small this rule and other required information 31738 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations to the U.S. Senate, the U.S. House of (1) Section 13 of H.B, 2001 (A.R.S. SUPPLEMENTARY INFORMATION: On Representatives and the Comptroller § 41–2083(E)), adopted on November 12, December 8, 1995 the Commonwealth of General of the General Accounting 1993. Pennsylvania submitted a formal revision to its State Implementation Office prior to publication of the rule in [FR Doc. 97–15093 Filed 6–10–97; 8:45 am] today’s Federal Register. This rule is Plan (SIP). The SIP revision consists of BILLING CODE 6560±50±P not a ‘‘major rule’’ as defined by section one plan approval for one individual 804(2) of the APA as amended. source of volatile organic compounds (VOCs) and/or nitrogen oxides (NOX) E. Petitions for Judicial Review ENVIRONMENTAL PROTECTION AGENCY located in Pennsylvania. Any plan Under section 307(b)(1) of the Clean approvals and operating permits Air Act, petitions for judicial review of 40 CFR Part 52 submitted coincidentally with those being approved in this notice, and not this action must be filed in the United [PA83±4062a; FRL±5835±2] States Court of Appeals for the identified below, will be addressed in a separate rulemaking action. This appropriate circuit by August 11, 1997. Approval and Promulgation of Air rulemaking addresses one plan approval Filing a petition for reconsideration by Quality Implementation Plans; pertaining to the following source: (1) the Administrator of this final rule does Pennsylvania; Approval of Source- Pennzoil Products Company not affect the finality of this rule for the Specific VOC and NO RACT X (Rouseville, Venango County)— purposes of judicial review nor does it Determinations extend the time within which a petition petroleum refinery. Pursuant to sections 182(b)(2) and for judicial review may be filed, and it AGENCY: Environmental Protection 182(f) of the Clean Air Act (CAA), will not postpone the effectiveness of Agency (EPA). Pennsylvania is required to implement such rule or action. This action may not ACTION: Direct final rule. RACT for all major VOC and NO be challenged later in proceedings to X SUMMARY: EPA is approving a State sources by no later than May 31, 1995. enforce its requirements. (See section Implementation Plan (SIP) revision The major source size is determined by 307(b)(2).) submitted by the Commonwealth of its location, the classification of that List of Subjects in 40 CFR Part 52: Pennsylvania. This revision establishes area and whether it is located in the and requires volatile organic ozone transport region (OTR), which is Environmental protection, Air compounds (VOC) and nitrogen oxides established by the CAA. The pollution control, Hydrocarbons, (NOX) reasonably available control Pennsylvania portion of the Incorporation by reference, technology (RACT) on one major source. Philadelphia ozone nonattainment area Intergovernmental relations, Ozone, The intended effect of this action is to consists of Bucks, Chester, Delaware, Volatile organic compounds. approve source-specific plan approvals. Montgomery, and Philadelphia Counties Note: Incorporation by reference of the This action is being taken under section and is classified as severe. The State Implementation Plan for the State of 110 of the Clean Air Act. remaining counties in Pennsylvania are Arizona was approved by the Director of the DATES: This final rule is effective July classified as either moderate or marginal Federal Register on July 1, 1982. 28, 1997 unless within July 11, 1997, nonattainment areas or are designated Dated: May 28, 1997. adverse or critical comments are attainment for ozone. However, under Felicia Marcus, received. If the effective date is delayed, section 184 of the CAA, at a minimum, Regional Administrator. timely notice will be published in the moderate ozone nonattainment area Federal Register. requirements [including RACT as For the reasons stated in the specified in sections 182(b)(2) and preamble, part 52, chapter I, title 40 of ADDRESSES: Comments may be mailed to David J. Campbell, Pennsylvania RACT 182(f)] apply throughout the OTR. the Code of Federal Regulations is Therefore, RACT is applicable statewide amended as follows: Team Leader, Mailcode 3AT22, U.S. Environmental Protection Agency, in Pennsylvania. The December 8, 1995 Pennsylvania PART 52Ð[AMENDED] Region III, 841 Chestnut Building, Philadelphia, Pennsylvania 19107. submittals that are the subject of this notice are meant to satisfy the RACT Subpart DÐArizona Copies of the documents relevant to this action are available for public requirements for one source in 1. The authority citation for part 52 inspection during normal business Pennsylvania. continues to read as follows: hours at the Air, Radiation, and Toxics Summary of SIP Revision Authority: 42 U.S.C. 7401–7671q. Division, U.S. Environmental Protection The details of the RACT requirements Agency, Region III, 841 Chestnut for the source-specific plan approvals 2. Section 52.120 is amended by Building, Philadelphia, Pennsylvania can be found in the docket and adding paragraph (c)(87) to read as 19107; the Air and Radiation Docket accompanying technical support follows: and Information Center, U.S. document and will not be reiterated in Environmental Protection Agency, 401 § 52.120 Identification of plan. this notice. Briefly, EPA is approving M Street, SW, Washington, DC 20460; one plan approval as RACT. * * * * * and the Pennsylvania Department of (c) * * * Environmental Protection, Bureau of Air RACT Quality, P.O. Box 8468, 400 Market (87) New and amended fuel EPA is approving the plan approval of Street, Harrisburg, Pennsylvania 17105. regulations for the following Arizona the following facility located in Department of Environmental Quality FOR FURTHER INFORMATION CONTACT: Pennsylvania: (1) Pennzoil Products plan revisions were submitted on April Janice M. Lewis, (215) 566–2185, or by Company (Rouseville, Venango 29, 1997, by the Governor’s designee. e-mail at [email protected]. County)—petroleum refinery—major While information may be requested via source of NOX emissions. (i) Incorporation by reference. e-mail, comments must be submitted in The specific emission limitations and (A) Arizona Revised Statutes. writing to the above Region III address. other RACT requirements for these Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31739 sources are summarized in the do not create any new requirements but E. Petitions for Judicial Review accompanying technical support simply approve requirements that the Under section 307(b)(1) of the Clean document, which is available from the State is already imposing. Therefore, Air Act, petitions for judicial review of EPA Region III office. because the Federal SIP approval does this action must be filed in the United EPA is approving this SIP revision not impose any new requirements, the States Court of Appeals for the without prior proposal because the Administrator certifies that it does not appropriate circuit by July 28, 1997. Agency views this as a noncontroversial have a significant impact on any small Filing a petition for reconsideration by amendment and anticipates no adverse entities affected. Moreover, due to the the Administrator of this final rule does comments. However, in a separate nature of the Federal-State relationship not affect the finality of this rule for the document in this Federal Register under the CAA, preparation of a purposes of judicial review nor does it publication, EPA is proposing to flexibility analysis would constitute extend the time within which a petition approve the SIP revision should adverse Federal inquiry into the economic for judicial review may be filed, and or critical comments be filed. This reasonableness of state action. The shall not postpone the effectiveness of action will be effective July 28, 1997 Clean Air Act forbids EPA to base its such rule or action. This action, unless within July 11, 1997, adverse or actions concerning SIPs on such pertaining to the VOC and NOX RACT grounds. Union Electric Co. v. U.S. EPA, critical comments are received. determination for one source in 427 U.S. 246, 255–66 (1976); 42 U.S.C. If EPA receives such comments, this Pennsylvania, may not be challenged 7410(a)(2). action will be withdrawn before the later in proceedings to enforce its effective date by publishing a C. Unfunded Mandates requirements. (See section 307(b)(2).) subsequent document that will withdraw the final action. All public Under section 202 of the Unfunded List of Subjects in 40 CFR Part 52 Mandates Reform Act of 1995 comments received will then be Environmental protection, Air (‘‘Unfunded Mandates Act’’), signed addressed in a subsequent final rule pollution control, Incorporation by into law on March 22, 1995, EPA must based on this action serving as a reference, Intergovernmental relations, prepare a budgetary impact statement to proposed rule. EPA will not institute a Nitrogen dioxide, Ozone, Reporting and second comment period on this action. accompany any proposed or final rule that includes a Federal mandate that recordkeeping requirements. Any parties interested in commenting Dated: May 23, 1997. on this action should do so at this time. may result in estimated costs to State, local, or tribal governments in the James W. Newsom, If no such comments are received, the aggregate; or to private sector, of $100 public is advised that this action will be Acting Regional Administrator, Region III. million or more. Under section 205, effective on July 28, 1997. 40 CFR part 52, subpart NN of chapter EPA must select the most cost-effective I, title 40 is amended as follows: Final Action and least burdensome alternative that EPA is approving two plan approvals achieves the objectives of the rule and PART 52Ð[AMENDED] is consistent with statutory as RACT for one individual source 1. The authority citation for part 52 located in Pennsylvania. requirements. Section 203 requires EPA to establish a plan for informing and continues to read as follows: Administrative Requirements advising any small governments that Authority: 42 U.S.C. 7401–7671q. A. Executive Order 12866 may be significantly or uniquely impacted by the rule. Subpart NNÐPennsylvania This action has been classified as a EPA has determined that the approval 2. Section 52.2020 is amended by Table 3 action for signature by the action proposed/promulgated does not adding paragraph (c)(124) to read as Regional Administrator under the include a Federal mandate that may follows: procedures published in the Federal result in estimated costs of $100 million Register on January 19, 1989 (54 FR or more to either State, local, or tribal § 52.2020 Identification of plan. 2214–2225), as revised by a July 10, governments in the aggregate, or to the * * * * * 1995 memorandum from Mary Nichols, private sector. This Federal action (c) * * * Assistant Administrator for Air and approves pre-existing requirements (124) Revisions to the Pennsylvania Radiation. The Office of Management under State or local law, and imposes Regulations, Chapter 129.91 pertaining and Budget (OMB) has exempted this no new Federal requirements. to VOC and NOX RACT, submitted on regulatory action from E.O. 12866 Accordingly, no additional costs to December 8, 1995 by the Pennsylvania review. State, local, or tribal governments, or to Department of Environmental Resources B. Regulatory Flexibility Act the private sector, result from this (now known as the Pennsylvania action. Department of Environmental Under the Regulatory Flexibility Act, Protection): 5 U.S.C. 600 et seq., EPA must prepare D. Submission to Congress and the General Accounting Office (i) Incorporation by reference. a regulatory flexibility analysis (A) Two letters, dated December 8, assessing the impact of any proposed or Under section 801(a)(1)(A) as added 1995 and September 13, 1996, from the final rule on small entities. 5 U.S.C. 603 by the Small Business Regulatory Pennsylvania Department of and 604. Alternatively, EPA may certify Enforcement Fairness Act of 1996, EPA Environmental Protection transmitting that the rule will not have a significant submitted a report containing this rule source-specific VOC and/or NOX RACT impact on a substantial number of small and other required information to the determinations in the form of one plan entities. Small entities include small U.S. Senate, the U.S. House of approval for the following source: businesses, small not-for-profit Representatives and the Comptroller Pennzoil Products Company enterprises, and government entities General of the General Accounting (Rouseville, Venango County)— with jurisdiction over populations of Office prior to publication of the rule in petroleum refinery. less than 50,000. today’s Federal Register. This rule is (B) Plan Approval (PA): SIP approvals under section 110 and not a ‘‘major rule’’ as defined by section (1) Pennzoil Products Company subchapter I, part D of the Clean Air Act 804(2). (Rouseville)—(PA–61–016) effective 31740 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

September 8, 1995, except for condition 3. On page 328, first column, Lacey address (telephone 360/753– Nos. 9 pertaining to non-VOC and non- instruction 13 is corrected to read ‘‘13. 9440). NOX pollutants and expiration date of Section 101–38.401–1 is amended by SUPPLEMENTARY INFORMATION: the plan approval. removing the introductory text, (ii) Additional Material. removing paragraph (b), redesignating Background (A) Remainder of the Commonwealth paragraph (c) as paragraph (b), and Castilleja levisecta (golden of Pennsylvania’s December 8, 1995 revising paragraph (a) introductory text paintbrush) was first collected near Mill submittal. to read as follows:’’ Plain, Washington, by Thomas Jefferson (B) Additional material submitted by Howell in 1880 and was described by Pennsylvania dated May 23, 1997, Dated: June 5, 1997. Jesse More Greenman in 1898 providing clarifying information related Sharon A. Kiser, (Greenman 1898). A perennial herb of to Pennzoil Products Company plan FAR Secretariat. the figwort family (Scrophulariaceae), C. approval. [FR Doc. 97–15229 Filed 6–10–97; 8:45 am] BILLING CODE 6820±34±P levisecta typically has 1 to 15 erect to [FR Doc. 97–15102 Filed 6–10–97; 8:45 am] spreading unbranched stems, reaches a BILLING CODE 6560±50±P height of 30 centimeters (cm) (12 inches DEPARTMENT OF THE INTERIOR (in)), and is covered with soft, sticky hairs. The lower leaves are entire and GENERAL SERVICES Fish and Wildlife Service narrowly pointed; the upper leaves are ADMINISTRATION broader, usually with one to three pairs 50 CFR Part 17 of short lateral lobes on the distal end. 41 CFR Part 101±38 The flower, mostly hidden by the RIN 1018±AC52 [FPMR Amendment G±111] overlapping bracts, has a calyx 15 to 18 millimeters (mm) (0.6 to 0.7 in) long and RIN 3090±AG26 Endangered and Threatened Wildlife and Plants; Determination of deeply cleft, and a corolla 20 to 23 mm Motor Vehicles Threatened Status for Castilleja (0.8 to 0.9 in) long, with a slender galea levisecta (Golden Paintbrush) (concave upper lip) three to four times AGENCY: Office of Governmentwide the length of the unpouched lower lip Policy, GSA. AGENCY: Fish and Wildlife Service, (Hitchcock and Cronquist 1973). It is ACTION: Final rule; correction. Interior. distinguished from the other Castilleja ACTION: Final rule. species within its range by brilliant SUMMARY: This document contains golden to yellow floral bracts. The plant SUMMARY: corrections to a final rule published in The U.S. Fish and Wildlife flowers from April to June. When not the Federal Register on Friday, January Service (Service) determines threatened flowering, the plant is less conspicuous. 3, 1997, 62 FR 322. FPMR Amendment status pursuant to the Endangered The species may be semi-parasitic like G–111, which governs the management Species Act of 1973, as amended (Act), other members of the genus Castilleja, of motor vehicles. for the plant Castilleja levisecta (golden possibly requiring a host plant for EFFECTIVE DATE: January 3, 1997. paintbrush). This species once occurred seedling development in its native from Oregon to Vancouver Island in FOR FURTHER INFORMATION CONTACT: habitat (Heckard 1962, Sheehan and Sharon A. Kiser, Federal Acquisition British Columbia, Canada. Ten Sprague 1984). However, greenhouse Policy Division (202–501–216). populations of this plant now exist in experiments indicate it does not require open grasslands ranging from south of SUPPLEMENTARY INFORMATION: In rule a host to survive and flower (Wentworth Olympia in Thurston County, document 97–52 appearing at 62 FR 1994). Washington, north through the Puget 322, GSA revised Part 101–38. This The plant tends to grow in clumps. Trough to southwest British Columbia, document corrects three errors. One genetic individual may consist of 1 Canada. Threats to the species include to 15 stems, making the determination Corrections competition with encroaching native of exact numbers of individual plants in and non-native plant species; habitat § 101.38 [Corrected] the field difficult. The number of stems modification through succession in the per plant varies site to site. In addition, 1. On page 324, second column, absence of fire; and grazing by ‘‘PART 101–38—MOTOR EQUIPMENT researchers have used a variety of herbivores. Direct human-caused threats census methods over the years. MANAGEMENT’’ is corrected to read include conversion of habitat for ‘‘PART 101–38—MOTOR VEHICLE Therefore, population estimates can residential and commercial vary and a consistent approach is MANAGEMENT.’’ development, conversion to agriculture, 2. On page 325, the table in 101– needed. Experimentally designed and possible damage associated with sampling surveys have been conducted 38.104(b)(3) is corrected by adding the road maintenance. This rule implements following footnotes. where individual plants were tagged the Federal protections afforded by the and counted (Wentworth 1994). Year to ‘‘1 Established by section 502 of the Act for this plant. year variation in population densities Motor Vehicle Information and Cost Savings EFFECTIVE DATE: July 11, 1997. Act (89 Stat. 902, 15 U.S.C. 2002) and the can be high (G. Douglas, Conservation Secretary of Transportation. ADDRESSES: The complete file for this Data Center, British Columbia Ministry 2 Established by the Secretary of rule is available for inspection, by of Environment, Lands and Parks, pers. Transportation and mandated by Executive appointment, during normal business comm. 1996; Wentworth 1994). Order 12003 through fiscal year 1981 and by hours at the Western Washington Office, Castilleja levisecta occurs in open Executive Order 12375 beginning in fiscal North Pacific Coast Ecoregion, U.S. Fish grasslands at elevations below 100 year 1982. and Wildlife Service, 510 Desmond meters (m) (328 feet (ft)) around the 3 Fleet average fuel economy for light Drive S.E., Suite 101, Lacey, trucks is the combined fleet average fuel periphery of the Puget Trough. Most economy for all 4x2 and 4x4 light trucks. Washington 98503–1273. populations occur on glacially derived 4 Requirements not yet established by the FOR FURTHER INFORMATION CONTACT: soils, either gravelly glacial outwash or Secretary of Transportation.’’ Dave Frederick, Supervisor, at the above clayey glacio-lacustrine sediments Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31741

(Sheehan and Sprague 1984, Gamon In British Columbia, Canada, 2 on a 0.04-ha (0.10-acre) site (Gamon 1995). Associated species include populations exist on islands off of the 1995). The population declined from Festuca idahoensis, F. rubra, Camassia southern coast of Vancouver Island between 500 and 1,000 plants in the quamash, Holcus lanatus, Achillea (Ryan and Douglas 1994). A historic early 1980’s, to 120 plants in 1993 millefolium, Pteridium aquilinum, Vicia population at Beacon Hill in Victoria on (Gamon 1993; Fayette Krause, The spp., and Bromus spp. (Gamon 1995). Vancouver Island, British Columbia, Nature Conservancy, in litt., 1994), and Frequent, low intensity fires can be Canada, has been surveyed annually currently harbors about 230 individuals important in maintaining habitat for from 1991 through 1996. Three plants (Gamon 1995). This State-owned plant species such as C. levisecta. were observed in 1991 but subsequent historic site is managed as a park for Historically, periodic fires in the Puget surveys have not found any plants and recreational use (Ken Hageman, Fort Trough were instrumental in the site is presumed to be extirpated Casey State Park Manager, Washington maintaining native grassland habitat by (Gamon 1995; G. Douglas, pers. comm. Department of Parks, pers. comm. 1994). limiting successional encroachment of 1996). A third Whidbey Island population of trees and shrubs (Agee 1993, Kruckeberg The southernmost population of Castilleja levisecta occurs on and 1991, Sheehan and Sprague 1984). Castilleja levisecta occurs at the Rocky adjacent to the Bocker property. This Historically, Castilleja levisecta has Prairie site south of Olympia, in population consists of 3 colonies—1 been reported from over 30 sites in the Thurston County, Washington. The site colony is 60×150 m (197×492 ft) on the Puget Trough of Washington and British is owned by the Washington property, a second colony is adjacent to Columbia, and as far south as the Department of Natural Resources and is the property in a 4 m2 (43 ft2) area, and Willamette Valley of Oregon (Sheehan designated as a Natural Area Preserve a third colony is located near the and Sprague 1984, Gamon 1995). In that is managed primarily for protection ‘‘Admiral’s’’ house and covers an area of 1984, the Service granted funding to the of C. levisecta and Aster curtus (white- 4.5×9 m (15×30 ft). In 1996, 306 Washington Natural Heritage Program topped aster), and conservation of the individual plants existed (Wentworth, (Washington Department of Natural remnant native grasslands of Festuca pers. comm. 1996), down from an Resources) to conduct an assessment of idahoenis (Idaho fescue) (J. Gamon, estimated 1,200 plants in the mid-1980’s the status of the species throughout its pers. comm. 1996). In 1983, the time of (Krause, in litt. 1994). The property is range. The plant was found to be the last complete census, 15,000 plants owned by Seattle Pacific University and extirpated from more than 20 historic were sporadically distributed is used for environmental education sites (Sheehan and Sprague 1984, throughout the 15-hectare (ha) (37-acre) courses (Keith Ludemann, Gamon 1995). Many populations were site. A fire in 1985 reduced the Environmental Education Supervisor, found to be extirpated due to conversion southernmost patch of C. levisecta, and Bocker Environmental Preserve, pers. of habitat to agricultural, residential, in 1991 the total population was comm. 1992), but no covenants or other and commercial development. In estimated to be about 7,000 plants (R. restrictions on the property exist that Oregon, C. levisecta historically Schuller, pers. comm. 1991, 1996). prevent development. occurred in the grasslands and prairie of Five populations are located on the A fourth Whidbey Island population the Willamette Valley; the species has north half of Whidbey Island, Island occurs at Ebey’s Landing in a 10–20 m been extirpated from all of these sites as County, in Puget Sound. Three of these ×100 m (33–66 ft×328 ft) area. This the habitat has disappeared. The area populations are located within the population on private land was around the type locality at Mill Plain, administrative boundary of the Ebey’s estimated to be from 300 to 400 plants Washington, was converted to pasture Landing National Historic Reserve in 1984 (Sheehan and Sprague 1984) and orchards some time after the plant (Ebey’s Landing, Fort Casey, and Bocker and more than 4,000 individuals in was first collected there in 1880. property), and are managed by a private 1993 (Sheehan, in litt., 1994; Gamon Housing developments currently occupy landowner, Washington State Parks, and 1995). Differences in estimation the site (Sheehan and Sprague 1984, Seattle Pacific University, respectively. techniques, such as counting Gamon 1995). The largest of the Whidbey Island individuals rather than flowering stems Western Oregon and Washington (and populations occurs near Forbes Point at and estimates based on sampled southern Vancouver Island) have a Crescent Harbor and is owned by the population density are thought to maritime climate, characterized by wet, Department of Defense (Whidbey Island contribute to the differences in mild winters and cool, relatively dry Naval Air Station). A census conducted population estimates between 1984 and summers. Annual precipitation averages for Castilleja levisecta in 1985 counted 1993. 800 to 1350 mm (31 to 53 in) in the more than 10,000 flowering stems at the The fifth Whidbey Island population Puget-Willamette Trough (Sheehan and site (Clampitt 1985); the number of of Castilleja levisecta is located at West Sprague 1984). individual plants was not provided. The Beach, on a site less than 0.40 ha (1 Castilleja levisecta is now known population was monitored in 1990, acre) in size. The property is privately from 10 extant populations. Eight when it was estimated to be in the owned and is bisected by a county road. populations occur in Washington—1 thousands, and again in 1991, when a In 1991, the east side of the road population south of Olympia in reduction in density of about 25 percent supported 10 to 20 plants (M. Klope, Thurston County, 5 populations on was observed. A census was completed pers. comm. 1991), whereas the entire Whidbey Island in Island County, 1 in May 1995. The population numbered West Beach population was estimated at population on San Juan Island in San 1,346 plants with 5,243 stems; approximately 200 plants in 1984 Juan County, and 1 population on Lopez approximately 50 percent of the 1985 (Sheehan and Sprague 1984). A 1993 Island, Island County. The Lopez Island total (Gamon 1995). The site has been census of the site found 496 plants, population consisted of 4 plants in May mapped and measures about 20 by 60 m while the 1995 census counted 550 1996 (J. Wentworth, Washington Natural (66 by 197 ft) (Matt Klope, Whidbey plants west of the road (Gamon 1995). Heritage Program, Botanist, pers. comm. Island Naval Air Station, pers. comm. The apparent increase in this 1996). A population of fewer than five 1996). population may represent (1) a real individuals likely is not viable (J. A second population on Whidbey increase in the population, (2) natural Gamon, Washington Natural Heritage Island is located at Fort Casey State Park year-to-year fluctuation in population Program, scientist, pers. comm. 1996). where approximately 230 plants occur size, (3) differences in the way 31742 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations individual plants were determined of refugia is low due to reduction of originally scheduled to close on July 11, between 1993 and 1995, or (4) a more habitat. In addition, because the current 1994, was extended for 30 days in a July complete count was conducted in 1995. distribution of the species has been 7, 1994, Federal Register publication In a letter to the Island County engineer, greatly fragmented and reduced from (59 FR 34784) and closed on August 11, a citizen reported that roadside the historic distribution, the species is 1994. maintenance activities by the county vulnerable to other threats such as The processing of this final rule had resulted in the elimination of the interspecific competition with native conforms with the Service’s listing plants on the east side of the road (Steve and alien woody species, reduced vigor priority guidance published in the Erickson, Whidbey Environmental and reproductive potential due to Federal Register on December 5, 1996 Action Network, in litt., 1991). grazing by herbivores, and trampling or (61 FR 64475). The guidance clarifies Subsequent field inspection by collecting during public recreational use the order in which the Service will Washington Natural Heritage Program of sites. Five sites are vulnerable process rulemakings following two staff confirmed that the population on because they are zoned for residential related events—1) The lifting, on April the east side of the road had been development or commercial use. 26, 1996, of the moratorium on final reduced to about five plants; however, Previous Federal Action listings imposed on April 10, 1995 (Pub. the direct cause of the decline east of L. 104–6), and 2) the restoration of Federal action on this species began the road is unknown (Sheehan, in litt., funding for listing through passage of when the Service published a Notice of 1992; 1994). the Omnibus Budget Reconciliation law Review for plants on December 15, 1980 The population on San Juan Island on April 26, 1996, following severe (45 FR 82480). In this notice, Castilleja (San Juan County) is located on a funding constraints imposed by a levisecta was included as a category 1 privately owned parcel near the Mar number of continuing resolutions candidate. Category 1 candidates were Vista Resort at False Bay. The site is less between November 1995 and April formerly designated as those species for than 1 acre in size, and supports a 1996. The guidance calls for giving which the Service had on file population of 128 plants (Gamon 1995). highest priority to handling emergency The remaining population of substantial information on biological situations (Tier 1) and second highest Castilleja levisecta from the United vulnerability and threats to support priority (Tier 2) to resolving the listing States is on private land at Davis Point preparation of listing proposals, but for on Lopez Island, Island County, which listing proposals had not been status of the outstanding proposed Washington. When first discovered in prepared due to other higher priority listings. This final rule falls under Tier 1994, this occurrence consisted of a listing actions. Pending completion of 2. At this time there are no pending Tier single plant. A census conducted in updated status surveys, the status was 1 actions. This rule has been updated to May 1996 found four plants. The changed to category 2 in the November reflect any changes in distribution, viability of this population is 28, 1983, supplement to the Notice of status and threats since the effective questionable. Recently located Review (48 FR 53640). Category 2 date of the listing moratorium. This photographic evidence from within the candidates were formerly designated as additional information was not of a last 2 decades but prior to 1994, those species for which information in nature to alter the Service’s decision to indicates the population was possession of the Service indicated that list the species. historically larger, with an estimated proposing to list as endangered or Summary of Comments and population size of approximately 100 threatened was possibly appropriate, Recommendations plants. However, the area is now but for which conclusive data on dominated by non-native grasses that biological vulnerability and threat were In the May 10, 1994, proposed rule likely have outcompeted C. levisecta at not currently available to support a (59 FR 24106) and associated the site (Sheehan, in litt. 1994; J. proposed rule. Castilleja levisecta notifications, all interested parties were Wentworth, pers. comm. 1996). remained a category 2 candidate in the requested to submit factual reports or Two extant populations of Castilleja September 27, 1985, Notice of Review information that might contribute to the levisecta occur in British Columbia, for plants (50 FR 39526). In the February development of a final rule. Appropriate Canada, on small islands near Victoria. 21, 1990, Notice of Review (55 FR 6184), Federal and State agencies, county Historically, C. levisecta was C. levisecta was elevated to category 1 governments, scientific organizations, documented from nine sites on status, based on additional data The Nature Conservancy, and other southeastern Vancouver Island, and on collected by the Washington Natural interested parties were contacted and two adjacent islands. All but the two Heritage Program. The species remained requested to comment. The Service populations found on islands are in category 1 in the September 30, 1993, published newspaper notices in The extirpated or of unknown status but Notice of Review for plants. On May 10, Seattle Times, The Olympian, The likely have been extirpated (Ryan and 1994, the Service published in the Whidbey News Times, The Centralia Douglas 1994). One population is Federal Register (59 FR 24106) a Chronicle, and The Journal of the San located on Alpha Islet, consisting of proposal to list C. levisecta as Juan Islands on July 13, 1994, inviting 1,000 plants in an area of 100 m2 (33 by threatened. The Service noted that the general public comment. Eleven 33 ft), and is under the management of species was a proposed threatened comments, including those of one the Ministry of Parks (Ryan and Douglas species in the February 28, 1996, Notice Federal agency (National Park Service), 1994). A second population, estimated of Review for Plants and Animals (61 FR one State agency (Washington at 2,560 plants, in an area of about 0.5 7596). Department of Natural Resources ha (1.2 acre), is located on the Trial The 1994 proposal to list Castilleja Natural Heritage Program), one county Islands and is currently managed by the levisecta as threatened was based agency, three conservation Ministry of Parks as an Ecological primarily on information contained in organizations, one university, two Reserve (G. Douglas, pers. comm. 1996). status reports prepared by the Canadian agencies, and two individuals, Castilleja levisecta is threatened by Washington Natural Heritage Program were received during the open comment habitat modification through succession and on personal communications with period. All commenters supported the of grassland to shrub and forest habitat. knowledgeable resource scientists and listing of Castilleja levisecta under the Potential for expansion and persistence site managers. The comment period, Endangered Species Act. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31743

Several commenters provided as destruction of habitat, and can Development for residential or information on the status of various provide greater potential for commercial use is a potential threat at populations of Castilleja levisecta that implementing conservation measures to five of the privately owned sites, False updated the information presented in benefit the plant. With half the Bay, Davis Point, Bocker property, the proposed rule. That information has populations containing significant Ebey’s Landing and West Beach. The been incorporated into the Background numbers of plants (i.e., 1,000 or greater), three sites on Whidbey Island (Bocker and Summary of Factors sections of this and the distribution spread across property, Ebey’s Landing and West final rule. The primary issue of concern several counties in the United States Beach) are zoned for residential raised by commenters is the Service’s and into southwestern Canada, the development (County Planning, Island intent to list this species as threatened Service believes that threatened status is Co. pers. comm. 1996). The site on San rather than endangered. The five appropriate for C. levisecta. Juan Island (False Bay) is designated rural (Planning Department, San Juan commenters that raised this issue all Peer Review believe that endangered designation Island County, pers. comm. 1996), more accurately reflects the status of C. The Service solicited the expert indicating that the area is dominated by levisecta. Several arguments were opinions of appropriate and agricultural, forestry and recreational expressed to support the contention that independent specialists regarding uses and can be used for the extraction endangered status is warranted for pertinent scientific or commercial data of sand, gravel, and mineral deposits. Castilleja levisecta. Commenters stated relating to the biological and ecological This designation also allows residential that few populations of this species can information for Castilleja levisecta. development. The Davis Point be considered secure, even though Comments provided by John Gamon and population on Lopez Island is several sites are designated as preserves Jane Wentworth, botanists with the ‘‘designated conservancy’’ (Planning or parks; the 2 populations at Fort Casey Washington Department of Natural Department, San Juan Island County, State Park and the Bocker property have Resources’ Natural Heritage Program pers. comm., 1996), which allows the documented declines; 5 privately were incorporated into the final rule. construction of homes and the owned sites (False Bay, Davis Point, Mr. Gamon and Ms. Wentworth management of resources on a Bocker property, Ebey’s Landing, and provided information supporting the sustained-yield basis. Although no West Beach) have the potential for position of the Service that C. levisecta plans for development have been development; populations in British was threatened by several factors at each initiated at these sites, the habitat for occurrence of the species found in Columbia, Canada, should not be these populations remains vulnerable to western Washington. Dr. George assumed to be secure because the threats from adjacent areas that receive Douglas, Director, Conservation Data Service has little if any influence over high human use (see Factor E for a more Center, Victoria, British Columbia, how these populations are managed; the detailed discussion), and to the provided information supporting the number of populations is down from at potential for development on these position of the Service that C. levisecta least 30 to only 10; and sites with fewer privately owned sites. was facing several threats at the two than 10 to 30 plants likely are not viable In recent history (since 1850), the occurrences found in British Columbia, populations. The Service responds to suppression of fire has played a critical Canada. the issue of preferred status as follows. role in the reduction of grassland habitat in the Puget Trough (Kruckeberg 1991) The Service considered several factors Summary of Factors Affecting the Species and, therefore, in the reduction in in proposing threatened status for numbers and sizes of Castilleja levisecta Castilleja levisecta, including the After a thorough review and populations. In contrast, a large, high number of populations, number of consideration of all information intensity fire at any of the remaining plants, rate of decline, distribution of available, the Service has determined sites where C. levisecta occurs may the populations, current management of that Castilleja levisecta should be eliminate populations, although the populations, and availability of classified as a threatened species. Service is unaware of permanent techniques for reversing the decline. Procedures found at section 4 of the extirpations of this species due to fire. Castilleja levisecta was historically Endangered Species Act (16 U.S.C. Loss of suitable habitat from either reported from more than 30 sites in 1533) and regulations implementing the encroachment of woody species or Washington, Oregon, and British listing provisions of the Act (50 CFR development in the areas surrounding Columbia; today 10 sites are extant. part 424) were followed. A species may the disjunct populations prevents These 10 sites are distributed in 3 be determined to be an endangered or expansion of the species and affords no counties in Washington and two islands threatened species due to one or more refugia in the case of catastrophic events in British Columbia, Canada. Five of the of the five factors described in section that affect existing populations. Because 10 extant populations contain 1,000 or 4(a)(1). These factors and their the grassland habitat in the areas more plants. Though 2 populations have application to C. levisecta Greenman surrounding the existing populations declined in number by over 50 percent (golden paintbrush) are as follows: has been lost, it is doubtful that the in the last decade, 2 populations contain A. The present or threatened populations would expand naturally. higher numbers of plants than reported destruction, modification, or Thus, the continued existence of in the proposed rule. Active curtailment of its habitat or range. Castilleja levisecta is threatened by the management to benefit C. levisecta is Historic loss of prairie and grassland absence of available habitat for occurring at 4 sites (Rocky Prairie, Fort habitat in the Puget Trough has reduced recruitment and colonization. Casey, Forbes Point and West Beach). the range of Castilleja levisecta, and B. Overutilization for commercial, The Service agrees that designation of habitat loss continues to be the primary recreational, scientific, or educational sites as preserves or parks does not in threat to remaining populations. purposes. Castilleja levisecta has no and of itself guarantee the reduction or Currently, encroachment by native and known commercial use. Because of its removal of threats to a species such as alien woody species, as discussed in showy golden-yellow bracts, C. levisecta C. levisecta. However, these more detail under Factor E, is the is vulnerable to picking and collection designations do afford some level of primary cause of this habitat at public sites. Fort Casey State Park, protection against certain threats such modification. Bocker property, and Forbes Point are 31744 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations sites with high levels of public use were known to prey on C. levisecta conditions of the native prairie habitat, where collection and/or trampling are (Sheehan and Sprague 1984, Evans et al. continued funding of restoration cannot threats (see Factor E). For example, Fort 1984), they are not believed to currently be assured. Additionally, efforts by the Casey State Park receives a high amount pose a threat (J. Wentworth, pers. comm. Washington Department of Natural of recreational use, and the potential for 1996). Resources to eliminate the invasive overcollection is considered a genuine Predation (grazing and seed Cytisus scoparius (Scotch broom) and threat. Visitor use has increased within predation) by native species is one of Hieracium pilosella (mouse-ear the last decade, and park users have the natural pressures historically faced hawkweed) at this site are voluntary and been observed picking the flowering by Castilleja levisecta, but populations not statutorially required. This plant (K. Hageman, pers. comm. 1994). that have been reduced or stressed due population continues to face threats Once numbering over 500 plants to other factors are more vulnerable to from invasion of woody species. (Hageman, pers. comm. 1994; Krause, in decline and are less able to rebound Another publicly-owned population litt. 1994), the Fort Casey State Park after periods of heavy predation. occurs in Fort Casey State Park. Park population had declined to D. The inadequacy of existing managers have implemented vegetation approximately 230 individuals by 1995 regulatory mechanisms. Currently, no management measures (mowing, (J. Gamon 1995; Krause, in litt. 1994). regulatory mechanism provides for the clipping and removing vegetation) to Castilleja levisecta may become protection of Castilleja levisecta or its improve the conditions of the grassland vulnerable to collection by concerned habitat. Castilleja levisecta is listed as habitat, and protective measures citizens, amateur botanists and the endangered by the Washington Natural (fencing) to restrict trampling the general public as a result of increased Heritage Program (Washington Natural Castilleja levisecta plants. However, the publicity following publication of the Heritage Program 1994). However, no plant continues to be vulnerable to final rule. State Endangered Species Act exists for encroaching vegetation, picking (see C. Disease or predation. Disease is not plants in Washington and no legal Factor B), trampling, grazing and seed known to be a factor threatening protection is provided by the predation. Castilleja levisecta. Populations may Washington Natural Heritage Program The Forbes Point population occurs have been reduced from historical levels listing classification of endangered. The on Federal land at Whidbey Island by grazing by livestock and rabbits province of British Columbia uses The Naval Air Station. The Department of (Sheehan and Sprague 1984, Gamon Nature Conservancy’s rating system and Defense is participating in the 1995, J. Wentworth, pers. comm. 1996). has designated C. levisecta as a category Washington Registry of Natural Areas Grazing of the flowering stems of C. G1S1 species (critically imperilled due Program. A Navy staff biologist has levisecta, probably by rabbits and/or to extreme rarity or because of undertaken measures to evaluate the deer, has been observed at the Bocker vulnerability to extinction, and with status of the population. Efforts have property. Though the effect is unknown, typically less than 5 occurrences) (G. also been made to eradicate some presumably grazing affects seed number Douglas, pers. comm. 1996). Four sites invasive non-native species. A fence has and reproductive viability (K. are included among the Natural Heritage been constructed to restrict people Ludemann, pers. comm. 1991; J. Program’s Registry of Natural Areas trampling or picking the plants and to Wentworth, pers. comm. 1996)). (Laura Smith, Associate Director, The keep rabbits from browsing Castilleja Livestock and exotic feral rabbits also Nature Conservancy, Washington State levisecta; however, rodents still enter graze the False Bay population (Sheehan Office, pers. comm. 1996). All of these the fenced area and consume seed (M. and Sprague 1984). In 1990 and 1991 at designations are important because they Klope, pers. comm. 1996). Signs have the Forbes Point site, Klope (pers. recognize the sensitive status of the been erected designating the site as a comm. 1996) observed heavy predation species and encourage private land research area, but the Navy does not on herbaceous material and seeds by owners and management agencies to prohibit public use of this site, which rodents. Grazing also was noted at consider the species in management receives occasional foot traffic Forbes Point in 1984 and 1985 (Clampitt plans; however, they provide no legal associated with a nearby popular beach 1985), which may be reducing the protection. Therefore, changing land (M. Klope, pers. comm. 1996). reproductive potential at that site. At management priorities or inadequate The populations of Castilleja levisecta Fort Casey State Park, all flowering funding for protection could leave the at Ebey’s Landing and the Bocker stems of a small colony of C. levisecta species vulnerable at several of the sites. property are also listed on the were eaten by rabbits during the spring The Rocky Prairie Natural Area Washington Registry of Natural Areas. of 1996, thus eliminating seed set and Preserve population has the highest Ebey’s Landing is on private property reproduction for the current year (J. level of protection of the 10 sites. This within the designated boundary of Wentworth, pers. comm. 1996). State-owned site has been actively Ebey’s Landing National Historic The Rocky Prairie Natural Area managed to eliminate alien species, Reserve. The Bocker property, owned by Preserve population of Castilleja including the use of prescribed burning Seattle Pacific University, is currently levisecta has historically harbored a and hand removal of invasive plants. managed as a natural area used for population of the Whulge checkerspot Seven acres of the encroaching Douglas- education purposes with no active butterfly (Euphydryas editha taylori), a fir (Pseudotsuga menziesii) were management to retain grassland habitat. State sensitive species that is a potential directionally felled and removed from The Bocker property is also located seed predator. Because C. levisecta is Rocky Prairie during the winter of 1996. within the designated boundary of not a specific host and no individual This effort was accomplished through a Ebey’s Landing National Historic butterflies were observed at the site in cooperative agreement between the Reserve. Although C. levisecta is 1991, the threat is likely low (M. Service’s Washington State Ecosystems considered in the current management Sheehan, pers. comm. 1991; F. Krause, Conservation Program and the of the Historic Reserve, management is The Nature Conservancy, pers. comm. Washington Department of Natural not specifically directed toward the 1996). Insect larvae have been observed Resource’s Natural Heritage Program. long-term conservation of the plant. As feeding on inflorescences (flowering Despite these efforts to restore prairie a result, the population is threatened by parts) of C. levisecta (Gamon 1995). composition and structure by reducing predation and invasion of native Although several species of caterpillar shade onto the site and improve the Douglas-fir and alien woody plants. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31745

Ebey’s Landing, Bocker property, West In summary, most populations occur blackberry, Vicia sp. (vetch), and Beach, Davis Point, and False Bay in areas designated as reserves or parks; Trifolium sp. (clover). Invasive shrubs populations of the species are on private 4 sites receive active management to and Douglas-fir, which shades out C. property and receive no legal protection. benefit the species and help prevent levisecta, are competing with C. The Ebey’s Landing National Historic habitat destruction. However, habitat levisecta at the Bocker property site. Reserve was established by the management for Castilleja levisecta is Numbering over 1,200 individuals in combined efforts of the local land not assured nor coordinated among the 1984, the population had declined to owners, the National Park Service, and various population sites. 295 individuals by 1995 (J. Gamon the U.S. Congress to give recognition to E. Other natural or manmade factors 1995). the local land owners for maintaining affecting its continued existence. While fire may improve the grassland their dwellings and landscapes in a Grassland habitat has historically been habitat for Castilleja levisecta, the specific historic fashion. The Historic maintained by periodic fires that impacts associated with fire prevention Reserve designation serves as a form of prevented encroachment of woody plant may be a threat. An example of this took covenants that restrict the type of species (Sheehan and Sprague 1984; J. place August 9–11, 1996, in Thurston landscaping and architectural design Agee, pers. comm. 1996). Fire County, Washington. A fire was ignited used for the maintenance or remodeling suppression in recent years has led to from the spark of a train that runs of any existing structures or the invasion of grasslands by native species adjacent to Rocky Prairie. The fire construction of new structures within such as Douglas-fir, Rosa sp. (wild rose), burned grasses and shrubs for greater Ebey’s Landing National Historic and Berberis aquifolium (barberry). than 10 miles of the railroad right-of- Reserve. The National Historic Reserve Encroachment by alien species such as way and emergency vehicles were designation does not prohibit Cytisus scoparius and Hieracium activated to suppress the fire. To access development or extraction of natural pilosella also occurs. These species are the fire adjacent to Rocky Prairie, the resources and provides no protection for invasive and can dominate some areas fence surrounding Rocky Prairie Natural biological resources. The National Park and compete with Castilleja levisecta for Area Preserve was cut at two locations Service’s jurisdiction over Ebey’s space, light, and nutrients. to allow access of fire prevention Interspecific competition is a serious Landing National Historic Reserve is vehicles. Vehicles ran directly over a threat to the continued existence of only advisory in nature and is limited portion of the C. levisecta population, Castilleja levisecta. Loss of grassland to providing technical assistance to breaking and compacting individual habitat due, in part, to invasion of plants. Damage to plants and habitat are State and local governments and local woody species threatens the plant at the often the result of the fire suppression land owners in the management, Rocky Prairie Natural Area Preserve (J. activities associated with wildfires protection, and interpretation of the Wentworth, pers. comm. 1996; Krause, (James Agee, pers. comm. 1996). Historic Reserve (Gretchen Luxenberg, in litt. 1994; Sheehan, in litt. 1994), Trampling by recreationists may National Park Service, pers. comm. Bocker property (K. Ludemann, pers. threaten the plant at Fort Casey State 1997; Curt Soper, Director of Agency comm. 1991; Krause, in litt. 1994; Park on Whidbey Island where paths Relations, The Nature Conservancy, Sheehan, in litt. 1994; J. Wentworth, had been worn into the soil and pass pers. comm. 1997; Stacey Tucker, Island pers. comm. 1996), Ebey’s Landing (Jim directly through a Castilleja levisecta County Planning and Community Larson, Chief, Division of Natural population. A decorative fence erected Development Department, pers. comm. Resources, National Park Service, pers. in 1995 partially restricts foot traffic 1997). comm. 1991; J. Gamon pers. comm. through the C. levisecta population and The Castilleja levisecta populations in 1996), West Beach (M. Mills, pers. trampling by the public at this site has Canada receive no regulatory protection. comm. 1996; Krause, in litt. 1994; been reduced (J. Gamon, pers. comm. Legislation to protect endangered Sheehan, in litt. 1994), and Forbes Point 1996), although invasion by wild rose species has been proposed to the British (M. Klope, pers. comm. 1996; Krause, in remains a threat. The few plants that Columbia government, but currently no litt. 1994; Sheehan, in litt. 1994) sites. formerly occurred in Beacon Hill Federal or Provincial law protects Castilleja levisecta cannot survive under Municipal Park in Victoria were located sensitive species. The Trial Islands, a closed canopy, such as that formed by in a heavily used area of the park. offshore from the city of Victoria, are Douglas-fir, wild rose, barberry and the Trampling by the public may have designated as an Ecological Reserve by alien Cytisus scoparius. Those species contributed to the species extirpation at the British Columbia Ministry of Parks. may also outcompete C. levisecta for Beacon Hill (G. Douglas, pers. comm. The small population at Alpha Islet also root space and nutrients (Sheehan and 1996). is located within a designated Sprague 1984). The species appears to None of the private ownerships have Ecological Reserve. Ecological Reserves be unable to compete successfully been fenced or are otherwise protected. are protected areas that generally against species that tend toward The West Beach occurrence of Castilleja require permits for entry and do not monoculture (J. Gamon, pers. comm. levisecta is surrounded by beach front allow consumptive activities, like plant 1996). homes and foot traffic passes through collection or other activities destructive Four populations of Castilleja the population to access the beach. to resources (L. Ramsey, Conservation levisecta on Whidbey Island (Fort Casey Adjacent property owners maintain Data Center, Ministry of Environment, State Park, Forbes Point, Bocker their lawns with fertilizers and Lands and Parks, British Columbia, property, and West Beach) are also herbicides. Aerial drift from these pers. comm. 1997). However, the threatened with tree and/or shrub chemical treatments that come in Ecological Reserve designation does not succession. If left unchecked, contact with C. levisecta is a potential require specific management encroachment of wild rose and Rubus threat. Across Fort Casey Road from recommendations for the plant. Because sp. (blackberry) will eliminate the several new homes, the population on this designation is an administrative population at the West Beach site (M. the Bocker property is threatened by one, it could potentially be reversed by Mills, pers. comm. 1996). Clampitt foot traffic. At False Bay, several foot administrative decision, and the site (1985) noted the encroachment of paths have been established through the could be used for other purposes (G. several aggressive plants into C. population and individual plants have Douglas, pers. comm. 1996). levisecta habitat at Forbes Point, like been trampled. The only access to the 31746 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations beach from the resort at False Bay is above under Factor B in the Summary section 7 consultation processes. through the population. At Davis Point, of Factors Affecting the Species, C. Therefore, the Service finds that C. levisecta is found on a small patch levisecta is vulnerable to collecting. designation of critical habitat for within a 30-acre overgrown lot; pasture Publication of precise maps and critical Castilleja levisecta is not prudent at this grasses and wild rose are abundant and habitat descriptions in the Federal time, because a designation would threaten to overtake C. levisecta. This Register would be likely to increase the increase the threat posed by taking (i.e., site has not been managed and the C. degree of threats from collecting and vandalism, collection) and other human levisecta population has declined from vandalism, and would increase activities, and because the designation about 100 plants prior to 1994 to 4 enforcement problems. of critical habitat would not be individuals in 1996 (Wentworth 1996). Critical habitat protections apply only beneficial to the species. The Ebey’s Landing occurrence is to Federal actions and, therefore, critical Available Conservation Measures adjacent to a road on a steep hillslope habitat provides no protection for overlooking the ocean. Erosion and populations occurring on State or Conservation measures provided to slumping have occurred on the slope private land absent a Federal nexus. In species listed as endangered or and potentially threaten the species at addition, even where such a nexus threatened under the Act include this location. Ebey’s Landing is a occurs, designation of critical habitat recognition, recovery actions, recreation area with foot paths leading generally provides no additional requirements for Federal protection, and to the plants and trampling has been protection beyond that provided by prohibitions against certain activities. documented (Jane Wentworth, pers. listing. In particular, even though three Recognition through listing can comm. 1997). populations of Castilleja levisecta encourage and result in conservation The Service has carefully assessed the located within the administrative actions by Federal, State, and private best scientific and commercial boundary of Ebey’s Landing National agencies, groups, and individuals. information available regarding the past, Historic Reserve (the first population is Recovery efforts encourage present, and future threats faced by this on private property, the second communication and cooperative efforts species in determining to list Castilleja population is on State park land, and among various land managers and levisecta as threatened. Threats to C. the third population is owned by Seattle owners. The Act provides for possible levisecta include habitat modification Pacific University), the enabling land acquisition and cooperation with through succession of prairie and legislation (National Parks and the State and requires that recovery grassland habitats to shrub and forest Recreation Act, 1978, P.L. 95–625, actions be carried out for all listed lands; development of property for section 508) that established Ebey’s species. Funding may be available commercial, residential and agricultural Landing National Historic Reserve does through section 6 of the Act for the State use; low potential for expansion and not provide the National Park Service to conduct recovery activities. This may refugia due to constriction of habitat; the authority to manage biological assist in protection and recovery efforts recreational picking; and herbivory. resources on the private or State at Rocky Prairie Natural Area Preserve Several of the sites are designated as property within this National Historic and Fort Casey State Park, sites owned preserves or afforded some level of Reserve. The National Park Service’s by the State of Washington. The protection from certain threats through jurisdiction over Ebey’s Landing protection required by Federal agencies current management efforts, and 50 National Historic Reserve is only and prohibitions against certain percent of the populations contain 1,000 advisory in nature (G. Luxenberg, activities involving listed plants are or more individuals. The Service, National Park Service, pers. comm. discussed, in part, below. therefore, believes the species is not 1997). Section 7(a) of the Act, as amended, currently in danger of extinction. Critical habitat receives consideration requires Federal agencies to evaluate However, because the remaining under section 7 of the Act with regard their actions with respect to any species populations are threatened by the to actions carried out, authorized, or that is proposed or listed as endangered chronic factors described above, like funded by a Federal agency. As such, or threatened. Regulations successional modification and potential designation of critical habitat may affect implementing this interagency development of its habitat, Castilleja non-Federal lands only where such a cooperation provision of the Act are levisecta is likely to become endangered Federal nexus exists. Federal agencies codified at 50 CFR part 402. Section within the foreseeable future throughout must insure that their actions do not 7(a)(2) of the Act requires Federal all or a significant portion of its range. result in destruction or adverse agencies to insure that activities they The species, therefore, fits the definition modification of critical habitat. Aside authorize, fund, or carry out are not of threatened as defined by the Act. from this added consideration under likely to jeopardize the continued Critical habitat is not being proposed for section 7, the Act does not provide any existence of a listed species. If a Federal this species for reasons discussed in the additional protection to lands action may affect a listed species, Critical Habitat section of this rule. designated as critical habitat. regardless of whether the activity occurs Designating critical habitat does not on Federal or non-Federal lands, the Critical Habitat create a management plan for the areas responsible Federal agency must enter Section 4(a)(3) of the Act, as where the listed species occurs; does into formal consultation with the amended, requires that, to the maximum not establish numerical population Service. The population of Castilleja extent prudent and determinable, the goals or prescribe specific management levisecta at Forbes Point occurs on Secretary designate critical habitat actions (inside or outside of critical Federal land at Whidbey Island Naval concurrently with determining a species habitat); and does not have a direct Air Station. Federal actions there would to be endangered or threatened. The effect on areas not designated as critical be subject to section 7 requirements. Service finds that designation of critical habitat. The National Park Service administers habitat is not prudent for this species. In addition, all involved parties and Ebey’s Landing National Historic Such a determination would provide no landowners have been notified of the Reserve, where three populations of C. additional protection to Castilleja importance of the species’ habitat. levisecta are located on private lands. levisecta and could increase the degree Protection of its habitat can be The National Park Service’s jurisdiction of threat to the species. As discussed addressed through the recovery and over the Reserve is advisory in nature. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31747

However, in the event the National Park impacts of a species’ listing on proposed Evans, S., R. Schuller, and E. Augenstein. Service funded or carried out any and ongoing activities within the range 1984. A report on Castilleja levisecta activities that may affect the species, it of the species. In the case of Castilleja Greenman at Rocky Prairie, Thurston would be required to consult with the levisecta, unauthorized collection at County, Washington. Unpubl. Report to Service. In addition, sections 2(c)(1) and Forbes Point would constitute a The Nature Conservancy, Washington 7(a)(1) of the Act require Federal violation of section 9 because this site Field Office, Seattle, Washington. 56pp. Gamon, J. G. 1995. Report on the status of agencies to utilize their authorities in is under Federal jurisdiction; collection Castilleja levisecta (Greenman). furtherance of the purposes of the Act occuring under a Federal threatened Washington Natural Heritage Program, to carry out conservation programs for species permit for scientific or recovery Department of Natural Resources, endangered and threatened species. purposes would not result in a violation Olympia, Washington. 55pp. The Act and implementing of section 9. Collection or destruction of Gamon, J. 1993. Castilleja levisecta Within regulations found at 50 CFR 17.71 and C. levisecta on private or other non- Ebey’s Landing National Historic 17.72 set forth a series of general Federal lands are not a violation of Reserve: A report on the current status of prohibitions and exceptions that apply section 9. However, when a project the species, including preliminary to all threatened plants. With respect to occurring on non-Federal lands requires management recommendations. Castilleja levisecta, all trade Federal authorization, funding or Washington Natural Heritage Program, prohibitions of section 9(a)(2) of the Act, permiting and the project may affect Department of Natural Resources, implemented by 50 CFR 17.61, would listed species, including listed plants, Olympia, Washington. 7pp. apply. These prohibitions, in part, make the action agency must consult with the Goodman, D. 1987. The demography of it illegal any for any person subject to Service under section 7 of the Act to chance extinction. Pages 11–34 in M.E. Soule’, editor. Viable populations for the jurisdiction of the United States to ensure that the Federal action (e.g., import or export endangered or conservation. Cambridge University issuance of a Federal permit) will not Press, Cambridge, England. threatened plants; transport any such jeopardize the survival of the species. Greenman, J.M. 1898. Some new and other plant in interstate or foreign commerce Absent a Federal action, the Act does noteworthy plants of the Pacific in the course of a commercial activity; not provide protection to threatened Northwest. Bot. Gaz. 25:261–269. sell or offer for sale such species in plants on private lands. Questions Heckard, L.R. 1962. Root parasitism in interstate or foreign commerce; remove regarding whether specific activities Castilleja. Bot. Gaz. 124:21–29. and reduce such species to possession will constitute a violation of section 9 Hitchcock, C.L., and A. Cronquist. 1973. from areas under Federal jurisdiction. should be directed to the Supervisor, Flora of the Pacific Northwest. Univ. of Seeds from cultivated specimens of Western Washington Office, North Washington Press, Seattle. threatened plant species are exempt Pacific Coast Ecoregion, U.S. Fish and Kruckeberg, A.R. 1991. The Natural History from these prohibitions provided that a Wildlife Service, 510 Desmond Drive, of the Puget Sound Country. University statement of ‘‘cultivated origin’’ appears S.E., Suite 101, Lacey, Washington of Washington Press, Seattle, on their containers. Certain exceptions 98503–1273, telephone 360/753–9440. Washington. apply to agents of the Service and State Requests for copies of the regulations Ryan, M. and G. W. Douglas. 1994. Status conservation agencies. The Act and 50 on plants and inquiries regarding them, report on the golden paintbrush CFR 17.62, 17.63 and 17.72 also provide including permits, may be addressed to Castilleja levisecta Greenm. for the issuance of permits to carry out the U.S. Fish and Wildlife Service, Unpublished, draft report prepared by the British Columbia Ministry of otherwise prohibited activities Ecological Services, Endangered Species Environment, Lands and Parks. Victoria, involving endangered and threatened Permits, 911 NE 11th Avenue, Portland, B.C. plant species under certain Oregon 97232–4181, telephone 503/ Sheehan, M., and N. Sprague. 1984. Report circumstances. It is anticipated that few 231–2063. on the status of Castilleja levisecta. trade permits would ever be sought or Required Determinations Unpubl. Report submitted to the U.S. issued because the species is not Fish and Wildlife Service, Portland, common in cultivation or in the wild. The Fish and Wildlife Service has Oregon. 82pp. The proposal incorrectly stated that determined that Environmental Washington Natural Heritage Program. 1994. the Act prohibits any person from Assessments and Environmental Impact Endangered, threatened and sensitive removing, cutting, digging up, Statements, as defined under the vascular plants of Washington. damaging, or destroying any endangered authority of the National Environmental Department of Natural Resources, or threatened plant on areas that are not Policy Act of 1969, need not be Olympia. Second printing. 52pp. under Federal jurisdiction in knowing prepared in connection with regulations Wentworth, Jane. 1994. The demography and violation of any State law or regulation adopted pursuant to section 4(a) of the population dynamics of Castilleja or in the course of any violation of a Endangered Species Act. A notice levisecta, an endangered perennial. outlining the Service’s reasons for this Unpublished Master’s thesis. University State criminal trespass law. This of Washington. 53pp. prohibition under section 9(a)(2)(B) determination was published in the Federal Register on October 25, 1983 Wentworth, J. 1996. Conservation currently applies only to plant species recommendations for Castilleja levisecta listed as endangered. Section 4(d) of the (48 FR 49244). The Service has examined this in Washington. Washington Natural Act allows for the provision of such Heritage Program, Washington regulation under the Paperwork protection to threatened plants through Department of Natural Resources, regulation. This protection may apply to Reduction Act of 1995 and found it to Olympia, Washington. threatened plants including Castilleja contain no information collection levisecta in the future if regulations are requirements. Authors: promulgated. References Cited It is the policy of the Service (59 FR The authors of this final rule are 34272) to identify to the maximum Agee, J.K. 1993. Fire Ecology of Pacific Leslie Propp and Ted Thomas, U.S. Northwest Forests. Island Press. 493 pp. extent practicable at the time a species Clampitt, C. 1985. Report: Census of is listed those activities that would or Castilleja levisecta population at Forbes would not constitute a violation of Point. Prepared for L. Smith, The Nature section 9 of the Act. Such information Conservancy, Washington Field Office, is intended to clarify the potential Seattle, Washington. 4pp. 31748 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

Fish and Wildlife Service (see Regulations, is amended as set forth order under Flowering Plants, to the List ADDRESSES section). below: of Endangered and Threatened Plants, to read as follows: List of Subjects in 50 CFR Part 17 PART 17Ð[AMENDED] Endangered and threatened species, § 17.12 Endangered and threatened plants. 1. The authority citation for part 17 Exports, Imports, Reporting and continues to read as follows: * * * * * recordkeeping requirements, (h) * * * Transportation. Authority: 16 U.S.C. 1361–1407; 16 U.S.C. 1531–1544; 16 U.S.C. 4201–4245; Pub. L. 99– Regulation Promulgation 625, 100 Stat. 3500, unless otherwise noted. Accordingly, part 17, subchapter B of 2. Section 17.12(h) is amended by chapter I, title 50 of the Code of Federal adding the following, in alphabetical

Species Historic range Family Status When listed Critical Special Scientific name Common name habitat rules

FLOWERING PLANTS

******* Castilleja levisecta ... Golden paintbrush .. U.S.A. (OR, WA), Scrophulariaceae .... T 615 NA NA Canada (B.C.).

*******

Dated: May 16, 1997. appointment, during normal business (Petersen 1980, Troy and Johnson 1987, Jay L. Gerst, hours at the Ecological Services Metzner 1993). Acting Director, U.S. Fish and Wildlife Fairbanks Field Office, U.S. Fish and During the breeding season, Steller’s Service. Wildlife Service, 101 12th Avenue, Box eiders move inland in coastal areas, [FR Doc. 97–15245 Filed 6–10–97; 8:45 am] 19, Fairbanks, Alaska, 99701, telephone where they nest adjacent to shallow BILLING CODE 4310±55±P (907) 456–0441 or facsimile (907) 456– ponds or within drained lake basins 0208. (King and Dau 1981, Flint et al. 1984, Quakenbush and Cochrane 1993). In FOR FURTHER INFORMATION CONTACT: Ted DEPARTMENT OF THE INTERIOR inland areas, their diet includes aquatic Swem, Wildlife Biologist, at the above insects (primarily chironomid larvae), Fish and Wildlife Service address (telephone (907) 456–0441). plant materials, crustaceans, and SUPPLEMENTARY INFORMATION: mollusks (Cottam 1939, Quakenbush 50 CFR Part 17 and Cochrane 1993). Background RIN 1018±AC19 The current breeding distribution of The Steller’s eider is the smallest of the Steller’s eider encompasses the Endangered and Threatened Wildlife four eider species. It was first described arctic coastal regions of northern Alaska and Plants; Threatened Status for the by Pallas in 1769 as Anas stelleri and from Wainwright to Prudhoe Bay up to Alaska Breeding Population of the was subsequently grouped with the 90 kilometers (km)(54 miles) inland Steller's Eider other eiders in the genus Somateria. The (King and Brackney 1993), and Russia Steller’s eider is now recognized as a from the Chukotsk Peninsula west to the AGENCY: Fish and Wildlife Service, Taimyr, Gydan and Yamal peninsulas Interior. monotypic genus, Polysticta stelleri (American Ornithologists’ Union 1983). (American Ornithologists’ Union 1983, ACTION: Final rule. Yesou and Lappo 1992). Actual The adult male Steller’s eider has a numbers nesting in Alaska and Russia SUMMARY: The U.S. Fish and Wildlife white head with a greenish tuft and a are unknown but the majority of Service (Service) determines the Alaska small black eye patch, a black back, Steller’s eiders nest in arctic Russia breeding population of the Steller’s white shoulders, and a chestnut breast (Palmer 1976, Bellrose 1980). eider (Polysticta stelleri) to be and belly with a black spot on each side. After the nesting season, Steller’s threatened pursuant to the Endangered Adult females and juveniles are mottled eiders return to marine habitats where Species Act of 1973, as amended. This dark brown. Both adult sexes have a they molt (Jones 1965; Petersen 1980, determination is based upon a blue wing speculum with a white 1981). Concentrations of molting substantial decrease in the species’ border. The Inupiat Eskimo name for Steller’s eiders have been noted in nesting range in Alaska, a reduction in this eider is Iginikkauktuk and Yupik Russia (Gerasimov in Kistchinski 1973), the number of Steller’s eiders nesting in Eskimos call them Anarnissaguq. The near St. Lawrence Island in the Bering Alaska, and the resulting increased Siberian Yupik name used by residents Sea (Fay 1961), and along the northern vulnerability of the remaining breeding of St. Lawrence Island is Aglekesegak. shore of the Alaska Peninsula (Jones population to extirpation. This rule Steller’s eiders are sea ducks that 1965; Petersen 1980, 1981). In some implements the Federal protection and spend the majority of the year in years, groups of tens of thousands may recovery provisions of the Act for this shallow, near-shore marine waters molt in the bays and lagoons along the species. Critical habitat is not being where they feed by diving and dabbling Alaska Peninsula, in particular Nelson designated at this time. for molluscs and crustaceans (Petersen Lagoon and Izembek Lagoon (Petersen EFFECTIVE DATE: July 11, 1997. 1980). Principal foods in marine areas 1980). In other years, many of the birds ADDRESSES: The complete file for this include bivalves, crustaceans, complete their molt before arriving on rule is available for inspection, by polychaete worms, and molluscs the Peninsula (Jones 1965). Band Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31749 recoveries show that both Russia and Several biologists who have studied or Hooper Bay (Dufresne 1924). Alaska nesting Steller’s eiders come censused the species in this area believe Additionally, Alaska Natives reported together to molt in southwestern that Steller’s eider numbers have that large numbers nested on Nelson Alaskan waters (Jones 1965). decreased, possibly to a considerable Island in 1924 (Murie 1959) and During winter, most of the world’s degree, during the past few decades Gillham (1941) found them ‘‘in Steller’s eiders concentrate along the (Chris Dau, U.S. Fish and Wildlife considerable number’’ in the intertidal Alaska Peninsula from the eastern Service, pers. comm., 1994; Jim King, reaches of the lower Kashunuk River in Aleutian Islands to southern Cook Inlet U.S. Fish and Wildlife Service, ret., 1941. No systematic searches were in shallow, near-shore marine waters pers. comm., 1994; Margaret Petersen, conducted for Steller’s eiders on the Y– (Palmer 1976). They also occur, National Biological Service, pers. K Delta during this period, so the extent although in lesser numbers, in the comm., 1994; Robert Stehn, National of their nesting distribution and western Aleutian Islands and along the Biological Service, pers. comm., 1994). abundance was never determined. Pacific coast, occasionally to British However, disagreement exists as to the By the 1960s or 70s, the species had Columbia (Palmer 1976). A small certainty and extent of a population largely vanished from the Y–K Delta. number also winter along the Asian decline. Researchers (Johnsgard 1964, Kessel et coast, from the Commander Islands to In summary, there is concern that al. 1964, Holmes and Black 1973) failed the Kuril Islands (Palmer 1976), and Steller’s eiders may be declining in to find any nests in the Kokechik Bay some are found along the north Siberian number range-wide, but the magnitude area in the 1960s, whereas the species coast west to the Baltic States and of any change in population size is was described as ‘‘surprisingly Scandinavia (Dement’ev and Gladkov unknown because of a lack of precise common’’’ in the area in 1924 (Brandt 1967, Frantzen 1985, Petraitis 1991, population estimates. The worldwide 1943). Although pairs displaying Frantzen and Henricksen 1992). In population is still sizable; 138,000 were nesting behavior were observed near the spring, large numbers concentrate in counted in Bristol Bay in 1992 (Larned Kashunuk River as late as 1973, no nests Bristol Bay before migration; in 1992, an et al. 1994), and it is likely that this were found in the area after 1963 estimated 138,000 Steller’s eiders count did not include the entire (Kertell 1991). Nesting was documented congregated before sea ice conditions worldwide population. Thus, this rule along the Opagyarak River in 1969 and allowed movement northward (Larned does not include the entire range of the again in 1975; the single nest found in et al. 1994). species but includes only those Steller’s 1975 was the last documented nesting eiders that nest in Alaska. attempt on the Y–K Delta (Kertell 1991) Species Status, Worldwide until a pair nested unsuccessfully near Species Status, Alaska Breeding The status of Steller’s eiders the Kashunuk River in 1994 (Paul Flint, Population worldwide has been poorly National Biological Service, pers. documented. The species occurs Historically, Steller’s eiders nested in comm., 1994). primarily in Russia during the nesting Alaska in two general regions: western Steller’s eiders also apparently nested season, where few population censuses Alaska, where the species has been in low numbers in southwestern Alaska, have been conducted. The rest of the essentially extirpated, and the North on the Seward Peninsula, and on St. year is spent in marine areas where Slope, where the species still occurs. In Lawrence Island. The species was large-scale surveys are difficult and western Alaska, Steller’s eiders occurred reported to nest ‘‘sparingly’’ on Agattu expensive, and distribution varies primarily in the coastal fringe of the Island in the western Aleutians in the within and among years in response to Yukon-Kuskokwim (Y–K) Delta, where 1880s and a nest was found at Unalaska weather and other factors (Jones 1965). the species was common at some areas in the eastern Aleutians in 1872. A Therefore, the variance in repeated in the 1920s, was still present in the ‘‘few’’ nested at the western end of the counts in specific areas is too high to 1960s, but is virtually absent as a Alaska Peninsula in the 1880s or 1890s identify statistically significant breeder today (Kertell 1991). On the (Murie 1959). A single nest was found population trends (Robert Stehn, U.S. North Slope, Steller’s eiders historically on the Seward Peninsula in 1879 Fish and Wildlife Service, pers. comm., occurred from Wainwright east, nearly (Portenko 1981) and a few nests were 1994). Also, relative to many other to the United States-Canada border found on St. Lawrence Island as late as waterfowl species, Steller’s eiders have (Anderson 1913, Brooks 1915). The the 1950s (Fay and Cade 1959). None not been an important sport or species may have abandoned the eastern have been found nesting in any of these subsistence species so have received North Slope in recent decades, but it areas since. Apparently, Steller’s eiders less attention. still occurs at low densities from nested in several widely scattered areas Although the factors mentioned above Wainwright to at least as far east as in western Alaska in addition to the Y– have contributed to the lack of Prudhoe Bay. K Delta, but presumably in low population information, anecdotal Trends in Distribution—Information numbers, and they probably ceased observations suggest that Steller’s eider on both historical and current nesting in these areas many years ago. numbers may have been declining distribution of Steller’s eiders in Alaska Near Barrow, at the northernmost tip range-wide for a number of decades. is limited. However, it is certain that of Alaska, Steller’s eiders still occur Dement’ev and Gladkov (1952) reported Steller’s eiders once nested over a regularly, though not annually. In some that the enormous flocks wintering near considerably larger area in Alaska than years, up to several dozen pairs may the Commander Islands at the turn of they do now. Although the species no breed in a few square kilometers. The the century were greatly reduced by the longer nests on the Y–K Delta, early area immediately surrounding Barrow is 1930s. Similarly, Murie (1959) wrote ‘‘it qualitative assessments indicated the relatively accessible, and bird studies is also clear that there has been a great species was ‘‘common’’ at several have been conducted there for decades. diminution in numbers.’’ coastal sites in the central Y–K Delta As a result, there are records of the More recently, the number of (Murie 1924, Conover 1926, Brandt species’ presence or absence from 1900 wintering Steller’s eiders may have 1943). Specifically, the species was (Stone 1900, in Gabrielson and Lincoln declined along the Alaska Peninsula, found nesting near Kokechik Bay 1959), 1958 (Myres 1958), and 1975– where the majority of the worldwide (Brandt 1943), along the Kokechik River 1981 (Myers and Pitelka 1975, Myers et population winters (Larned et al. 1994). (Murie 1924, Conover 1926), and near al. 1976–1981). In 1991, more intensive 31750 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations studies on the nesting biology, average of one Steller’s eider per 165 km In the central North Slope, Steller’s predation, and habitat selection of of survey route. eiders have also abandoned some local Steller’s eiders in the area were initiated In recent years, efforts have been areas where they historically nested. (Quakenbush et al. 1995). In contrast, made to search for eiders or, in some Steller’s eiders nested near Cape Halkett elsewhere on the North Slope, the cases, specifically for Steller’s eiders, on (north of Teshekpuk Lake) in the 1940s, species apparently occurs at extremely the North Slope. From 1992 to 1996, and bred commonly at Nikilik on the low densities over a huge area and use extensive aerial searches for nesting Colville River Delta (P. Sovalik in Myres of specific areas appears to be irregular. eiders were conducted on the arctic 1958). Although these areas are within Evidence of nesting elsewhere from coastal plain of the North Slope. These the broad region occupied by Steller’s Barrow has been documented only searches sampled approximately 4 eiders, none have been seen in these twice in recent years; females with percent of a 42,000 sq. km (16,215 sq. specific areas for decades, despite young were seen in 1993 near Prudhoe mi) area. A maximum of 12 Steller’s continued observation (Jim Helmericks, Bay (Michele Johnson, University of eiders per year was recorded during pers. comm., 1995). these searches (Larned et al. 1992; California, Davis, pers. comm., 1994) Larned and Balogh 1994; Balogh and Trends in Numbers and in 1987 along the Colville River (T. Larned 1994; Bill Larned, U.S. Fish and Although Steller’s eiders are seen and Swem, unpubl. Service data). As a Wildlife Service, in litt., 1995; B. counted during extensive waterfowl result, the vast majority of both Larned, pers. comm., 1996). In 1994, 59 surveys and breeding eider surveys, historical and recent observations of the plots, 2.6 sq. km (1 sq mi) in size, were these observations cannot be used to species on the North Slope come from intensively searched for Steller’s eiders precisely estimate the number of Barrow. While part of this distinction from a helicopter in a 7,041 sq. km Steller’s eiders on the North Slope for may be attributable to the differences in (2,718.39 sq. mi) area (Laing 1995); none three reasons—1) the species-specific accessibility and search effort between were encountered. In 1995, intensive probability of detecting Steller’s eiders Barrow and elsewhere, it is also true aerial searches were conducted in two during aerial surveys has not been that Steller’s eiders seem to favor the specific areas, near Teshekpuk Lake and determined (Rod King, pers. comm., Barrow vicinity. Unfortunately, because near the mouth of the Chipp River, 1994), therefore it is impossible to use of the scarcity of observations where Steller’s eiders have been the number of sightings in the area elsewhere, it is currently impossible to observed previously; none were sampled to estimate the number of birds determine how important the Barrow observed (Robert Ritchie, ABR Inc., in actually present in the sample area; 2) area is to the Alaska breeding litt., 1995). The low number of Steller’s so few Steller’s eiders are seen during population as a whole. eiders observed during extensive surveys that confidence intervals Sightings made during extensive searches of suitable habitat and around estimates of the total number in aerial waterfowl breeding pair surveys intensive searches of previously the study area are extremely wide; and provide the most comprehensive view occupied areas indicates that the species 3) it is unknown whether Steller’s eiders of the distribution of Steller’s eiders on occurs at extremely low densities on the are evenly or unevenly distributed, and the North Slope. Waterfowl are counted North Slope. differences in distribution greatly affect annually from systematically located Steller’s eiders have been observed the precision of population size transects that sample approximately 2 recently near Prudhoe Bay during estimates (Alan Brackney, pers. comm., 1995). As a result, no statistically percent of the 63,210 sq km (24,404.12 intensive eider searches conducted from the ground. Although the species was meaningful population size estimates sq mi) of waterbird habitat on the arctic not recorded during the 1980s (North are available for the North Slope. coastal plain of Alaska between the 1990; Declan Troy, Troy Ecological However, two waterfowl researchers northwest coast of Alaska and the Research and Associates, pers. comm., who have conducted extensive aerial Alaska-Canada border (Brackney and 1995), a few pairs were seen each year waterfowl surveys on the North Slope in King 1993). Between 1989 and 1995, between 1992 and 1994 (D. Troy, pers. recent years subjectively estimate that Steller’s eiders were seen on 76 separate comm., 1995), and a female with young hundreds to a few thousand Steller’s occasions during these surveys, with was seen in 1992 (M. Johnson, pers. eiders inhabit the region (Bill Larned, sightings ranging from single birds up to comm., 1994). pers. comm., 1995; Rod King, pers. flocks containing 20 individuals Observations of local residents and comm., 1995). (Brackney and King 1993, King and early naturalists indicate that the Since there are no reliable counts of Brackney 1995). All 76 sightings were species originally occupied the eastern Steller’s eiders from which to calculate west of the Colville River or in the North Slope, whereas none have been a trend, all conclusions about trends Colville River drainage (Alan Brackney, seen in this region for several decades. must be made by inferring that the U.S. Fish and Wildlife Service, pers. For instance—(1) Bill Patkotak, a number of Steller’s eiders decreased as comm., 1994; Rod King, U.S. Fish and resident of Wainwright, saw Steller’s the species’ range in Alaska contracted. Wildlife Service, pers. comm., 1995), eiders near Collinson Point, Camden It is unknown how many Steller’s eiders indicating that the species currently Bay in the 1930s, but none have been nested historically on the Y–K Delta, but occurs predominantly in the seen in this area for many years; (2) Kertell (1991) estimated that a northwestern portion of the North Anderson (1913) recorded the species at maximum of 3,500 pairs may have Slope. Within the large area in which Barter Island but none have been nested on the Delta. This estimate was birds were seen, sightings were widely reported there for many years; and (3) made by extrapolating from the number distributed and ranged up to about 90 Brooks (1915) noted the species at nesting in one sample plot in 1951 and km (54 mi) inland from the coast. Demarcation Bay but none have been 1961–1966 to the entire vegetated Despite the large area over which seen there since. It is unknown how intertidal zone of the central Y–K Delta. sightings occurred, very few were widespread or numerous the Steller’s This estimate could be biased, however, observed. In 1993, for example, only 20 eider was throughout the eastern North if the number in this study plot was not of 2,617 ducks seen along 3,300 km Slope, but apparently the species has representative of coastal areas in the (1,980 mi) of transects were Steller’s abandoned this region in recent central delta in general, or if numbers in eiders (Brackney and King 1993), an decades. the 1960s were not representative of Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31751 historical population size. Regardless of In summary, the breeding range of continuing budget resolutions. When the number occurring historically on the Steller’s eiders in Alaska has contracted the moratorium was lifted, the Service delta, however, the number of Alaska in recent decades. The species no longer established listing priority guidance (61 breeding Steller’s eiders decreased with nests on the Y–K Delta or other areas in FR 24722) that gave highest priority to its extirpation from western Alaska, western Alaska, and is now found emergency situations (Tier 1) and including the Y–K Delta, the Aleutians, exclusively on the North Slope. second highest priority (Tier 2) to Alaska and Seward Peninsulas, and St. Breeding range on the North Slope may resolving the listing status of Lawrence Island. also have contracted. Apparently the outstanding proposed listings. Similarly, the number of Steller’s species is no longer found in areas Following receipt of its fiscal year 1997 eiders nesting on the North Slope has historically occupied on the eastern appropriation, the Service issued also likely decreased in recent decades North Slope and in at least two other revised listing priority guidelines (61 FR as a result of their abandonment of areas on the central North Slope. 64475). However, the Tier 1 and Tier 2 several previously used nesting areas. Current and historical population sizes priorities are unchanged from the Although birds using these areas could remain unknown, but overall numbers previous guidelines. This final rule falls have shifted to other areas of the North have likely declined. Steller’s eiders under Tier 2. At this time there are no Slope, there have been no indications still occur over a large area on the North pending Tier 1 actions; therefore, the that numbers have increased in other Slope, but at such low densities that processing of this final listing rule areas or that Steller’s eiders have only hundreds or a few thousand conforms with the Service’s current colonized previously unused areas in occupy the huge expanse of seemingly listing priority guidance. recent decades. suitable habitat. Although dozens of This rule constitutes the final Additionally, anecdotal observations pairs periodically nest near Barrow, determination resulting from the listing suggest that numbers may have only two nests have been documented proposal and all comments received decreased in one area on the North elsewhere on the North Slope in recent during both comment periods. Slope in which Steller’s eiders are still years. found. Inupiat elders from Wainwright Summary of Comments and recall that the species was common near Petition Background Recommendations Wainwright many years ago, which On December 10, 1990, the Service In the July 14, 1994, proposed rule (59 corresponds with the observations of received a petition from Mr. James G. FR 35896) and associated publications, Bailey (1948) and D. Bodfish (in Myres King of Juneau, Alaska, dated December all interested parties were requested to 1958). Now, Steller’s eiders are 1, 1990, to list the Steller’s eider as submit factual reports or information considered rare near Wainwright and endangered throughout its range and to that might contribute to the none have been found nesting there for designate critical habitat on the Yukon development of a proposed rule. several years (Quakenbush 1993). Delta National Wildlife Refuge and the Appropriate Federal and State agencies, In addition to changes in distribution National Petroleum Reserve in Alaska. borough, city, and village governments, and numbers, anecdotal observations Pursuant to section 4(b)(3)(B) of the scientific organizations, and other suggest that Steller’s eiders may be Endangered Species Act of 1973, as interested parties were contacted and successfully nesting in fewer locations amended (16 U.S.C. 1531 et seq.) (Act), requested to comment. Notices inviting than in previous decades. In recent the Service determined on May 8, 1992, public comments were published in the decades, nesting Steller’s eiders have that listing the Steller’s eider was Anchorage Daily News and Fairbanks been documented in only three areas— warranted, but precluded by listing Daily News-Miner. On June 30, 1995, (1) at Barrow; (2) on the lower Colville actions for higher priority species (57 the comment period was reopened (FR River, where a female with young was FR 19852). 60 FR 34225), and again, appropriate seen in 1987 (T. Swem, unpubl. data); In August 1993, the Service reviewed parties were contacted and invited to and (3) near Prudhoe Bay, where a the status of the species and concluded comment. Comments were received female with young was seen in 1993 (M. that the available information did not from a total of nine parties during the Johnson, pers. comm., 1994). In earlier support listing range-wide, but did two comment periods, including the decades, Steller’s eiders were found support listing the Alaska breeding North Slope Borough, the Alaska nesting at Wainwright (Bailey 1948), population. On July 14, 1994, the Department of Fish and Game, the inland on the Meade River (Bailey Service proposed to list this population Federal Aviation Administration, three 1948), Admiralty Bay (Reed 1965), at the as threatened (59 FR 35896). conservation organizations, two oil confluence of the Chipp and Ikpikpuk At the time of publication of the companies, and one private individual. Rivers (Bailey 1948), the mouth of the proposed rule, the Service implemented No one requested a public hearing on Ikpikpuk River (nest and oological a policy requiring that listing proposals the proposal. Of the comments, four records from the Western Foundation of be reviewed by at least three supported listing, four were neutral, and Vertebrate Zoology), the Topaguruk independent specialists (59 FR 34270). one, the Alaska Department of Fish and River (Bee 1958), and Pitt Point To comply with the new Service policy Game, opposed listing. (Gabrielson and Lincoln 1959). requiring peer review the Service Peer reviewers were selected from a Although birds have been detected in reopened the public comment period on group of recognized experts on seaduck these general areas in recent years, no June 30, 1995 (60 FR 34225), and or eider population monitoring, nests have been found despite solicited the opinions of seven modeling, or management. Individuals increasing interest in the species. independent specialists. with possible conflicts of interest in Breeding may resume in these areas; The completion of the listing process listing were not selected to ensure an Steller’s eiders near Barrow show for this species was also affected by unbiased review. Seven individuals, considerable annual variation in legislation (Public Law 104–6) signed who had published a combined total of reproductive effort and performance into law on April 10, 1995, that 453 articles on relevant topics in peer- (Myers and Pitelka 1975a,b; Myers et al. prevented the Service from making final reviewed scientific journals, were 1977–1981; Quakenbush et al. 1995, L. determinations on listing actions during selected. Four were employed by the Quakenbush, U.S. Fish and Wildlife Fiscal Year 1995. This moratorium was Canadian Wildlife Service, two by Service, pers. comm., 1996). extended until April 26, 1996, by universities, and one by the U.S. 31752 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

National Biological Service (now the species in Russia also may have only location in the United States where U.S. Geological Survey Biological declined, population numbers are the species breeds. As such, Alaska is Resources Division). Five of the seven estimated to range well over 100,000 the only portion of the species’ breeding individuals that were selected reviewed birds. However, the status of the range over which the United States the proposal and supporting documents. breeding population in the U.S., as government can exercise its authority to All five supported listing the Alaska inferred by the contraction of nesting provide for the conservation of the breeding population as threatened, and range, is reduced considerably from species during nesting. If, as some one of the five suggested that the historic times, despite the existence of researchers believe, the species is population should be classified as regulatory protections and an declining range-wide (Jim King, pers. endangered. abundance of seemingly suitable comm., 1994, Margaret Peterson, pers. Written comments received during habitat. comm., 1994, Chris Dau, pers. comm., the comment periods are addressed in If a population is considered discrete 1994, Robert Stehn, pers. comm., 1994), the following summary. Comments from under one or both of the above the importance of providing for the all respondents, including the peer conditions, its biological and ecological conservation of the species in Alaska reviewers, are combined. Because significance will then be considered in will increase. Furthermore, by securing multiple respondents offered similar light of Congressional guidance (Senate the survival of the Alaska breeding comments in some cases, comments of Report 151, 96th Congress, 1st Session) population, access to the species for a similar nature or point are grouped. that the authority to list distinct scientists to identify the factors These comments and the Service’s vertebrate population segments be used controlling the population and causing responses are as follows: ‘‘sparingly’’’ while encouraging the declines in other areas will be Comment: The Alaska Department of conservation of genetic diversity. In facilitated. Ultimately, this may be Fish and Game does not believe that the carrying out this examination, the essential to the survival of the species Alaska breeding population is currently, Service considers available scientific as a whole. As a result of the extent of or ever was, a discrete or significant part evidence of the discrete population the species’ historical breeding range in of the world population. Therefore, they segment’s importance to the taxon to Alaska, and the potential future believe it is inappropriate to consider which it belongs. This consideration importance to the worldwide this segment of the population a listable may include, but is not limited to, the population, the Service finds that the entity, and they are opposed to listing. following: disappearance of the Alaska breeding Service response: In recognizing 1. Persistence of the distinct population of Steller’s eiders would be distinct vertebrate population segments vertebrate population segment in an a significant loss to the species as a for purposes of listing, delisting, or ecological setting unusual or unique for whole. reclassifying species under the the taxon; Endangered Species Act, the Service 2. Evidence that loss of the distinct Comment: Accounts suggest that the currently uses guidelines published in vertebrate population segment would abundance of Steller’s eiders near the Federal Register on February 7, result in a significant gap in the range Barrow has varied widely among years. 1996 (61 FR 4721). To qualify as a of a taxon; It is likely that Steller’s eiders have listable vertebrate population, the 3. Evidence that the distinct always been rare on the North Slope and population must be both discrete in vertebrate population segment reflect a failure to thrive, typical of birds relation to the remainder of the species represents the only surviving natural in suboptimal range. to which it belongs, and significant to occurrence of a taxon that may be more Service response: Little is known of the species to which it belongs. abundant elsewhere as an introduced annual variation in Steller’s eider A population segment of a vertebrate population outside its historic range; or population size and breeding species may be considered discrete if it 4. Evidence that the distinct performance. However, recent studies satisfies either one of the following vertebrate population segment differs have found Steller’s eider numbers in conditions: markedly from other populations of the the Lena River Delta in Siberia to vary 1. It is markedly separated from other species in its genetic characteristics. tremendously among years, as well populations of the same taxon as a Loss of the Alaska breeding (Diane Solovieva, Lena Delta Nature consequence of physical, physiological, population of Steller’s eiders would Reserve, pers. comm., 1995 to L. ecological, or behavioral factors; or represent a significant reduction in the Quakenbush). This suggests that the 2. It is delimited by international species’ breeding range worldwide. variation in abundance seen at Barrow governmental boundaries within which Steller’s eiders nested historically along may be typical of Steller’s eiders in differences in control of exploitation, many hundreds of kilometers of general, rather than peculiar to Barrow management of habitat, conservation coastline in southwestern Alaska and or symptomatic of birds on the status, or regulatory mechanisms exist the North Slope, which are two periphery of the eastern end of the that are significant in light of section separate, major biogeographic regions of species’ range. Furthermore, although 4(a)(1)(D) of the Act. the State. On the North Slope, the Steller’s eiders occur at low densities on In the case of Alaska breeding species currently occurs from the north the North Slope, they occur over an Steller’s eiders, the population is coast to as much as 90 km inland, and extensive area so that possibly hundreds discrete by both criteria above. First, from Wainwright in the west to Prudhoe or as many as a few thousand may occur Alaska breeding Steller’s eiders are Bay in the east, so its current range there (Bill Larned, pers. comm., 1994; physically separated from Asia nesting covers a sizable area. Additionally, Rod King, pers. comm., 1994) populations by hundreds of kilometers because it historically also occurred on Historically, they were likely even more across the Bering and Chukchi seas. the Y–K Delta, other areas in numerous, as they have apparently Second, the Alaska breeding population southwestern Alaska, and the eastern abandoned the eastern North Slope and of Steller’s eiders is delimited by North Slope, its historical range in some other local areas in the international boundaries. Within these Alaska was considerably more northwestern North Slope. Therefore, international boundaries differences in extensive. although historical abundance is conservation status exist. While In addition, the Service finds that impossible to determine, the Service available information suggests that the another factor is pertinent. Alaska is the does not agree that the current apparent Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31753 scarcity of the species implies that the Service response: As defined in the management or research objectives that North Slope is suboptimal habitat. Act, an ‘‘endangered species’’’ is in could assist in conservation efforts. Comment: Kertell’s (1991) estimate of danger of extinction while a ‘‘threatened Specific recommendations were: the number of Steller’s eiders nesting on species’’’ is likely to become an (1) A conservation plan to protect the Y–K delta was a gross extrapolation endangered species within the important Steller’s eider habitat should from a single small plot surveyed only foreseeable future. The information be explored; seven times during 16 years. The use of currently available to the Service (2) Educational programs at villages Kertell’s estimate is a poor basis for a indicates that the species regularly within the range of Steller’s eiders listing action. Furthermore, it is occurs in low numbers near Barrow. should be expanded to reduce shooting doubtful that the species was ever very Although no more than a few dozen and egging and to encourage the abundant on the Y–K Delta, and their pairs occur there, there is no suggestion reporting of sightings of the species; and occurrence in this region was marginal. that the number near Barrow has (3) More information on the impacts Service response: Kertell’s (1991) declined since the late 1960s, when the of hunting should be gathered, estimate of the number of Steller’s earliest observations were made. including subsistence harvest, and eiders was not the basis for this listing. Elsewhere on the North Slope, the accidental and illegal shooting by sport His estimate was based upon an species is thought to number in the hunters. The Service agrees that these extrapolation from one small plot to a hundreds to a few thousand (Bill suggested actions have potential for large expanse of habitat deemed to be Larned, pers. comm., 1994; Rod King, contributing significantly to the similar at a very coarse scale. This pers. comm., 1994). This information conservation of the species in Alaska. extrapolation would have overestimated indicates that threatened status is the Each will be thoroughly considered historical population size if the density most appropriate designation at this during development of recovery within that single plot exceeded the time. The Service will continue to strategies. average density in the areas outside the actively collect and evaluate status plot, which is quite possible. information on Steller’s eiders and may Summary of Factors Affecting the Conversely, if density within the plot propose reclassification at any time, Species should this become warranted. had declined by the 1950s and 1960s, After a thorough review and this extrapolation would have Comment: Critical habitat should be established in order to protect nesting, consideration of all information underestimated historical population available, the Service has determined size. The latter case is supported by the molting, and wintering areas. Service response: This issue is that the Alaska breeding population of observation that Steller’s eiders had addressed under the section entitled the Steller’s eider should be classified as disappeared from nearby Kokechik Bay ‘‘Critical Habitat’’’ in this rule. a threatened species. Procedures found by the 1960s although the species was Comment: The impacts of oil and gas at section 4(a)(1) of the Act and common there in 1924 (Brandt 1943). development have been inadequately regulations implementing the listing For these reasons, the Service agrees addressed. provisions of the Act (50 CFR Part 424) that it is impossible to retrospectively Service response: The past and were followed. A species may be estimate historical population size with potential future impacts of oil and gas determined to be an endangered or any degree of accuracy. development remain largely unknown. threatened species due to one or more However, while we have no reliable Currently, considerable effort is of the five factors described in section estimate of historical population size, expended to research and monitor the 4(a)(1). These factors and their Steller’s eiders were considered to be effects of oil and gas activities and the application to the Alaska breeding common by several observers in several resultant habitat alteration upon population of the Steller’s eider locations in the Y–K delta (Murie 1924, spectacled eiders and other birds near (Polysticta stelleri) are as follows: Dufresne 1924, Conover 1926, Gillam Prudhoe Bay. Likewise, one of the A. Present or threatened destruction, 1941, Brandt 1943, Murie 1959). If objectives of ongoing studies of the modification, or curtailment of its Steller’s eiders were equally common in ecology of Steller’s eiders near Barrow habitat or range. Habitat destruction is large areas with comparable habitat, the is to identify the effects of all forms of not known to be a major factor in the total number occupying the delta would human disturbance upon the species, decline of Steller’s eiders in Alaska. The have been sizable. including those of the local gas pipeline species disappeared from the Y–K Delta Comment: Steller’s eiders should be and the accompanying service road. and the eastern North Slope although listed throughout their range, not just Knowledge of the impacts of oil and gas only a very small portion of the habitat the population that breeds in Alaska. development will increase as these in those areas has been affected by Service response: Concern that studies proceed. It is important to note, human activities. Other waterfowl Steller’s eiders have declined in number however, that it appears that the species species continue to nest in large range-wide remains a concern but may be tolerant of oil and gas numbers in these areas, demonstrating additional data are needed. Regardless development. Steller’s eiders regularly that what little habitat modification has of any possible worldwide population nest within a few hundred meters of a taken place has not precluded waterfowl decline, at least 138,000 Steller’s eiders gas pipeline near Barrow, and the nesting. Habitat modification and wintered in southwest Alaska in 1992 majority of nests found in recent years destruction do not appear to have (Larned et al. 1993). Based upon this in Alaska have been in proximity to played a major role in the decline of large recent count, the Service finds that ‘‘Gaswell Road,’’’ which parallels this breeding Steller’s eiders in Alaska. the species is neither in danger of pipeline. Furthermore, one of the only However, the factor or factors causing extinction nor likely to become two successful nests found elsewhere the decline are not understood. endangered within the foreseeable from Barrow in recent years was located On the North Slope, the current range future (the definitions of endangered near Prudhoe Bay, the most heavily of Steller’s eiders is largely contained and threatened species, respectively). developed oil field in Alaska. within the National Petroleum Reserve- Comment: The Alaska breeding In addition to comments pertaining to Alaska (NPR–A), which was set aside population should be listed as listing or the designation of critical for oil and gas development. The endangered. habitat, several respondents suggested National Petroleum Reserve Productions 31754 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

Act of 1976 encourages expeditious environmental pollutants. However, significantly affect eiders in these areas. leasing and permitting of oil exploration there is no evidence that modifications In fact, of 15 adult Steller’s eiders found and development activities in Petroleum of the marine environment have caused dead near Barrow between 1991 and Reserves. Although very little of NPR– the decline of the Alaska breeding 1994, 7 were believed to have been A has been leased, future leasing is population of Steller’s eiders. killed by predators. In addition, of 26 possible in areas where industry interest Substantial portions of the important nests found, 17 failed and 8 of these is sufficient. Potential impacts of oil and molting and wintering areas have been failures were believed to have been gas exploration and development on designated as National Wildlife Refuges, caused by avian predators or foxes nesting Steller’s eiders are not known State Game Refuges, or State Critical (Quakenbush et al. 1995). It is unknown but Steller’s eiders have nested Habitat Areas. how the rate of predation of eiders and successfully at Barrow within a few B. Overutilization for commercial, eider nests has been affected by the hundred meters of a gas pipeline and recreational, scientific, or educational possible artificial increase of predators the accompanying service road and purposes. Because of the small numbers in the Barrow area. Steller’s eiders frequently feed in ponds taken, overutilization is unlikely to have D. The inadequacy of existing within meters of the pipeline (Lori caused the decline of Alaska Steller’s regulatory mechanisms. Subsistence Quakenbush, pers. comm., 1995). eiders or their extirpation from the and sport hunting of waterfowl are All but two recent, known nests of Yukon-Kuskokwim Delta. In the past, regulated under authority of the Steller’s eiders in Alaska have been near some Steller’s eider eggs were collected Migratory Bird Treaty Act (16 U.S.C. Barrow, which is the largest Native in Alaska for avicultural exhibition and 703–711). Spring and summer village in northern Alaska. The human trade but the issuance of Federal subsistence hunting of eiders in Alaska population of Barrow increased 58 permits for collecting Steller’s eider eggs is currently in violation of the Migratory percent in 10 years, from 2267 in 1980 for avicultural purposes was terminated Bird Treaty Act, which prohibits to 3469 in 1990 (Harcharek 1992), and in 1987. A few dozen Steller’s eiders hunting for most migratory birds village expansion is likely to continue were taken annually before 1991 by between March 10 and September 1. in the future. Housing developments, collectors and sport waterfowl hunters The Service recognizes, however, that gas field access and development, and on the Alaska Peninsula and Kodiak and residents of certain rural areas in Alaska conveyance of land from the Ukpeagvik Nunivak islands (Robin West, U.S. Fish depend on waterfowl as a customary Inupiat Corporation to shareholders and Wildlife Service, pers. comm., and traditional source of food. As a could lead to nesting habitat loss and 1991), but this was prohibited by result, the Service has exercised disturbance to nesting birds. (Also see Service policy in 1991. The Service will discretion in enforcing seasonal discussion of increasing predators continue to collect information on any restrictions to allow for traditional around human use areas under factor C.) taking of Steller’s eiders. The Service subsistence use of many species. Although Steller’s eiders nest will consider listing the Russian Starting in 1994, the Service included successfully along heavily used all- population when in Alaska under the Steller’s eiders on the closed season terrain vehicle trails and directly under similarity of appearance provision of species list, indicating that restrictions approach lanes to the airport that are section 4(e) of the Act if such is deemed on taking Steller’s eiders during all used daily by large jets and numerous necessary to facilitate enforcement of seasons would be enforced as violations smaller aircraft (Lori Quakenbush, pers. taking of the Alaska breeding of the Migratory Bird Treaty Act. comm., 1995), the indirect effects of population. Recently, modifications to the treaty development and human presence can C. Disease or predation. Disease is not have been made to legalize subsistence be detrimental to Steller’s eiders. Of 15 known to be affecting the population at harvest during spring and summer, adult Steller’s eiders found dead near present, but small, restricted although implementation awaits Barrow in 1991–1994, one presumably populations are more vulnerable to all ratification by the U.S. Senate. Once died from striking wires and five had decimating factors, including disease. ratified, hunting between March 10 and been shot (Quakenbush et al. 1995). Natural predators of Steller’s eiders in September 1 will be permissible after Much of the former Steller’s eider Alaska include raptors, gulls, jaegers, suitable regulations are adopted. These breeding range in western Alaska is ravens, and foxes. Kertell (1991) regulations will be formulated to within the Yukon Delta National hypothesized that arctic foxes (Alopex accommodate the conservation needs of Wildlife Refuge and is protected from lagopus) may have contributed to the individual species, such as Steller’s major development although some of extirpation of Steller’s eiders on the eiders. the habitat where the species previously Yukon-Kuskokwim Delta by increasing Historically, Alaska Natives hunted bred is on Alaska Native land where predation pressure when major goose Steller’s eiders and their eggs for food at Federal involvement in protection is populations in the region crashed several villages (Braund et al. 1989; low. However, the likelihood that large- during the 1960s, but this remains Wentworth 1993; James Sheridan, U.S. scale development will take place in unproven. Fish and Wildlife Service, pers. comm., this remote region is limited. Because of Some predators may be increasing in 1993), but many villages along the the large amount of unaltered habitat number as a result of human habitation Steller’s eider migration route have not available on the Y–K Delta, it is unlikely and development. Predators and been surveyed so the total annual that the recovery of Steller’s eiders and scavengers such as gulls, ravens, and subsistence harvest is unknown the development of Native-owned foxes have increased in number due to (Cynthia Wentworth, U.S. Fish and private lands in the area will both the availability of refuse and handouts Wildlife Service, pers. comm., 1993). proceed to the point that they conflict. (Paul O’Neil, Animal and Plant Health However, Steller’s eiders are not a Steller’s eiders occupy a vast expanse Inspection Service, Animal Damage preferred species (Quakenbush and of marine habitat during the non-nesting Control, pers. comm., 1993). Gulls and Cochrane 1993), and they have been season. Within the marine distribution ravens are effective predators of eider taken in far fewer numbers than the of the Steller’s eider the environment eggs and young, and foxes depredate other three eider species (Klein 1966, has likely been affected by any number eggs, young, and adults. Predation is Nelson 1969, Johnson 1971). While not of human activities, including marine likely to increase near communities an important subsistence species, transport, commercial fishing, and where refuse is available and could Steller’s eiders are occasionally killed Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31755 incidental to hunting of preferred comm., 1994). Although nontoxic shot degree of threat to the species, or (2) species. Although apparently limited, is now legally required for waterfowl such designation of critical habitat this take may threaten the small hunting, illegal use of lead shot on the would not be beneficial to the species. breeding segment near Barrow and delta continues. Furthermore, it appears Section 7(a)(2) and regulations possibly near other villages. Ongoing that lead shot may remain in tundra codified at 50 CFR Part 402 require Service information and education wetland areas for many years, possibly Federal agencies to ensure, in programs aimed at gaining support in decades, after deposition (Margaret consultation with the Service, that Native villages for protection of Steller’s Petersen, pers. comm., 1994). There is activities they authorize, fund or carry and spectacled eiders continue. no evidence indicating that ingestion of out are not likely to jeopardize the Sport hunting of Steller’s eiders was lead shot caused the extirpation of continued existence of listed species or prohibited in 1991. A few may still be Steller’s eiders on the Y–K Delta but the destroy or adversely modify their shot accidentally or illegally by sport ingestion of lead shot may have affected habitat. The current nesting range of the hunters but the number taken, although the species in some heavily hunted Steller’s eiders on the North Slope is unknown, is likely small. areas. Furthermore, residual lead shot largely contained within the NPR–A. E. Other natural or manmade factors could potentially impair recovery of the Upon this rule taking effect, oil and gas affecting its continued existence. Some species if Steller’s eiders ingest lead exploration and other activities that may natural or manmade factor(s), currently shot which remains in areas that affect the continued existence of the unknown, caused the extirpation of the Steller’s eiders recolonize. The Alaska Alaska breeding population of Steller’s Steller’s eider from the Y–K Delta and Department of Fish and Game and U.S. eider will be addressed through the the eastern North Slope in Alaska. Fish and Wildlife Service are section 7 consultation process to ensure Several possible factors have been implementing educational programs, to that these activities do not jeopardize proposed but supporting evidence is be followed by increasing enforcement, the survival and recovery of the species. lacking. Two possible factors warranting aimed at eliminating the use of lead In addition, wetland filling and other discussion are changes in the Bering Sea shot. activities subject to Federal environment where Steller’s eiders molt Steller’s eiders that nest on Alaska’s authorization will undergo consultation and winter, and ingestion of lead shot North Slope are the only remaining to avoid detrimental impacts. In the fall, on the Y–K Delta. breeding population within the winter, and spring, the eiders disperse Recent changes in the Bering Sea jurisdiction of the United States. As a to marine areas in southern Alaska also ecosystem have been proposed as a result of their low numbers and used by large numbers of other possible factor affecting the spectacled restricted breeding range, the Alaska waterfowl and birds. Most of these eider (Stehn et al. 1993), which was breeding population is at risk from areas, including Y–K Delta where the classified as threatened in 1993 due to natural and human-caused factors. Steller’s eider historically nested, have rapid population declines on the Y–K Major storms, predation or disturbance been designated as National Wildlife Delta and elsewhere within its range. could severely deplete Steller’s eiders Refuges and are currently managed to Increasing Pacific walrus (Odobenus numbers on the North Slope and lead to ensure that Federal and other activities rosmarus), gray whale (Eschrichtius extirpation of this remnant population. do not deleteriously affect these bird robustus), and sea otter (Enhydra lutris) The Service has carefully assessed the concentrations. The Service believes populations may have restructured the best scientific and commercial that Federal involvement in both the marine community that forms the prey information available regarding the past, nesting and wintering areas where the base of these species (Stehn et al. 1993, present, and future threats faced by this species may occur can be identified and Kvitek et al. 1992), and this in turn may species in determining to make this addressed without the designation of have affected other members of the final rule. Based on this evaluation, the critical habitat. Therefore, the Service community. Similarly, changes in preferred action is to list the Alaska finds that designation of critical habitat commercial fishing pressure may also breeding population of the Steller’s is not prudent at this time because it have affected the marine ecosystem with eider as threatened. While probably not would result in no known benefit to the possible effects upon marine birds, in immediate danger of extinction, species not already afforded by the Act. including eiders (Stehn et al. 1993). Steller’s eiders that breed in Alaska Protection of this species’ habitat will Recently, other species in the Bering could become endangered in the also be addressed through the section 7 Sea have declined in numbers, foreseeable future if the population and recovery processes and, as including Steller’s sea lions declines further. appropriate, through the section 10 (Eumatopias jubatus) and oldsquaws habitat conservation planning process. (Clangula hyemalis (Stehn et al. 1993). Critical Habitat Declines in these species may have been Section 4(a)(3) of the Act, as Available Conservation Measures caused by the restructuring of the amended, and implementing regulations Conservation measures provided for trophic system outlined above or, (50 CFR 424.12) require that, to the species listed as endangered or alternatively, the declines may suggest a maximum extent prudent and threatened under the Endangered general deterioration of the Bering Sea determinable, the Secretary designate Species Act include recognition, ecosystem caused by contamination or critical habitat at the time the species is recovery actions, requirements for other factors. There is currently no determined to be endangered or Federal protection, and prohibitions documentation of a link between threatened. The Service finds that against certain practices. Recognition changes in the marine environment in designation of critical habitat is not through listing encourages and results Alaska and a contraction of the breeding prudent for the Alaska breeding in conservation actions by Federal, State range of Steller’s eiders in Alaska. population of Steller’s eiders at this and local governments and private It has recently been shown that lead time. Service regulations (50 CFR organizations, groups and individuals. shot, used for hunting waterfowl for 424.12(a)(1) state that designation of The Act provides for possible land many decades on the Y–K Delta, is critical habitat is not prudent when one acquisition and cooperation with the being ingested by spectacled eiders with or both of the following situations States and requires that recovery actions potentially serious effects upon adult exist—(1) the identification of critical be carried out for all listed species. The survival (Margaret Petersen, pers. habitat can be expected to increase the protection required of Federal agencies 31756 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations and the prohibitions against taking and commerce any listed species. It is also (1) Unauthorized trapping, capturing, harm are discussed below. illegal to possess, sell, deliver, carry, or collecting of the Alaska breeding Section 7(a) of the Act, as amended, transport, or ship any such wildlife that population of Steller’s eiders. Research requires Federal agencies to evaluate has been taken illegally. Certain activities, where birds are trapped or their actions with respect to any species exceptions apply to agents of the captured will require a permit under that is proposed or listed as endangered Service and State conservation agencies. section 10(a)(1)(A) of the Endangered or threatened, and with respect to its Permits may be issued to carry out Species Act. designated critical habitat. Regulations otherwise prohibited activities (2) Intentional or accidental shooting implementing this interagency involving threatened wildlife species or Steller’s eiders during the sport cooperation provision of the Act are under certain circumstances. hunting season. This take will be codified at 50 CFR Part 402. Section Regulations governing permits are in 50 addressed in the annual section 7 7(a)(4) of the Act requires Federal CFR 17.22, 17.23, and 17.32. Such consultation conducted on the agencies to confer with the Service on permits are available for scientific migratory bird sport hunting season. any action that is likely to jeopardize purposes, to enhance the propagation or Wanton killing or injury of Steller’s the continued existence of a proposed survival of the species, and/or for eiders is illegal under both the species or result in destruction or incidental take in connection with Endangered Species Act, MBTA, and adverse modification of proposed otherwise lawful activities. For other Federal and State laws. critical habitat. Section 7(a)(2) requires threatened species, permits are also Other activities not identified in the Federal agencies to ensure that activities available for zoological exhibition, above two paragraphs will be reviewed they authorize, fund, or conduct are not educational purposes, or special on a case-by-case basis to determine if likely to jeopardize the continued purposes consistent with the purposes a violation of section 9 of the Act may existence of endangered or threatened of the Act. be likely to result from such activity. species or to destroy or adversely It is the policy of the Service, Questions regarding any specific modify its critical habitat. If an action published in the Federal Register on activities should be directed to the Field may affect a listed species or its critical July 1, 1994 (59 FR 34272), to identify Supervisor of the Service’s Fairbanks habitat, the responsible Federal agency to the maximum extent practicable at Field Office (see ADDRESSES section). Section 10(e) of the Act exempts any must enter into formal consultation with the time a species is listed those Indian, Aleut, or Eskimo who is an the Service. activities that would or would not The Service anticipates consultation Alaska Native who resides in Alaska, or constitute a violation of section 9 of the with the U.S. Army Corps of Engineers any nonnative permanent resident of an Act. The intent of this policy is to and the U.S. Department of Alaska Native village, from prohibitions increase public awareness of the effect Transportation to avoid impacts to on taking any endangered or threatened of this listing on proposed and ongoing Steller’s eiders from wetland fill species if such taking is primarily for activities within the species’ range. The permitting and other activities on the subsistence purposes. Regulations Service believes that the following North Slope. Consultations to identify prohibiting or limiting subsistence actions will not result in a violation of potential effects on Steller’s eiders are harvest may be established pursuant to section 9, provided the activities are also expected with the U.S. Bureau of section 10(e)(4) of the Act if the carried out in accordance with any Land Management for NPR-A lands Secretary determines that such taking existing regulations and permit issues, the Minerals Management materially and negatively affects the requirements: Service for outer continental shelf oil threatened or endangered species. The (1) Unintentional flushing or and gas lease sales, and the National Service is not considering special disturbing of Steller’s eiders on the Marine Fisheries Service for commercial regulations under section 10(e)(4) of the species’ Alaska nesting or wintering fishing regulations. Act at this time, because all hunting of grounds. The Service will initiate development Steller’s eiders is currently restricted (2) Federally approved projects that of a recovery plan for the Steller’s eider under provisions of other Federal and involve activities such as, drilling, promptly upon listing. This recovery State laws. plan, prepared in cooperation with the discharge of fill material, draining, affected agencies and communities, will ditching, or aleration of surface or National Environmental Policy Act establish recovery goals and set recovery ground water into or out of a wetland The Fish and Wildlife Service has task priorities. An educational program (i.e., due to roads, impoundments, determined that an Environmental to gain public support for the protection discharge pipes, etc.) when such activity Assessment or Environmental Impact of Steller’s eiders has already been is conducted in accordance with any Statement, as defined under authority of initiated and will be expanded reasonable and prudent measures given the National Environmental Policy Act cooperatively with affected by the Service in accordance with of 1969, need not be prepared in communities. section 7 of the Act. connection with regulations adopted The Act and implementing (3) Hunting endangered and pursuant to section 4(a) of the regulations found at 50 CFR 17.21 and threatened species for subsistence Endangered Species Act of 1973, as 17.31 set forth a series of general purposes is permissible under the amended. A notice outlining the prohibitions and exceptions that apply Endangered Species Act under certain Service’s reasons for this determination to all threatened wildlife. These circumstances (section 10(e)of the Act, was published in the Federal Register prohibitions, in part, make it illegal for see further discussion below); however, on October 25, 1983 (48 FR 49244). any person subject to the jurisdiction of all hunting of Steller’s eiders remains the United States to take (includes prohibited under other provisions of Required Determinations harass, harm, pursue, hunt, shoot, law. The Service has examined this wound, kill, trap, capture, collect, or to Activities that the Service believes regulation under the Paperwork attempt any of these), import or export, could potentially result in ‘‘take’’ of the Reduction Act of 1995 and found it to ship in interstate commerce in the Alaska breeding population of Steller’s contain no information collection course of commercial activity, or sell or eiders include, but are not limited to, requirements. This rulemaking was not offer for sale in interstate or foreign the following activities: subject to review by the Office of Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31757

Management and Budget under List of Subjects in 50 CFR Part 17 Authority: 16 U.S.C. 1361–1407; 16 U.S.C. 1531–1544; 16 U.S.C. 4201–4245; Pub. L. 99– Executive Order 12866. Endangered and threatened species, 625, 100 Stat. 3500, unless otherwise noted. References Cited Exports, Imports, Reporting and A complete list of all the references recordkeeping requirements, 2. Section 17.11(h) is amended by cited herein, as well as others, is Transportation. adding the following, in alphabetical available upon request from the Regulation Promulgation order under BIRDS, to the List of Fairbanks Ecological Services Field Endangered and Threatened Wildlife, to Accordingly, part 17, subchapter B of Office (see ADDRESSES section). read as follows: Authors: The primary author of this chapter I, title 50 of the Code of Federal document is Ted Swem (see ADDRESSES Regulations, is amended as set forth § 17.11 Endangered and threatened section). Lori Quakenbush, U.S. Fish below: wildlife. and Wildlife Service, contributed data PART 17Ð[AMENDED] * * * * * and editorial assistance. Bill Larned and (h) * * * Rod King, U.S. Fish and Wildlife 1. The authority citation for part 17 Service, contributed survey data. continues to read as follows:

Species Historic range Vertebrate population where endan- Status When Critical Special Common name Scientific name gered or threatened listed habitat rules

******* BIRDS

******* Eider, Steller's ...... Polysticta stelleri .. U.S.A. (AK), Rus- U.S.A. (AK breeding population only) T 616 NA NA sia.

*******

Dated: March 21, 1997. ADDRESSES: The complete file for this commonly known as ‘‘coquı´s’’ (Rivero John G. Rogers, rule is available for inspection, by 1978, Moreno 1991). Acting Director, Fish and Wildlife Service. appointment, during normal business The guajo´n (Eleutherodactylus cooki), [FR Doc. 97–15244 Filed 6–10–97; 8:45 am] hours at the Boquero´n Field Office, U.S. also known commonly as ‘‘demon of Puerto Rico’’ or ‘‘demonio de Puerto BILLING CODE 4310±55±P Fish and Wildlife Service, P.O. Box 491, Boquero´n, Puerto Rico 00622, and at the Rico,’’ is a relatively large frog, Service’s Southeast Regional Office, approximately 8.5 centimeters (3.3 DEPARTMENT OF THE INTERIOR 1875 Century Boulevard, Atlanta, inches) in length. It is solid brown in Georgia 30345. color, although attending and calling Fish and Wildlife Service males may have a yellow throat. The FOR FURTHER INFORMATION CONTACT: Ms. guajo´n may be the only species of 50 CFR Part 17 Susan Silander at the Caribbean Field Eleutherodactylus in Puerto Rico that Office address (787/851–7297) or Ms. RIN 1018±AD52 exhibits sexual dimorphism in color Gloria Bell at the Atlanta Regional (Joglar et al. 1996). In both sexes, the Endangered and Threatened Wildlife Office address (404/679–7100). frogs have large, white-rimmed eyes, giving the species a specter or phantom- and Plants; Threatened Status for the SUPPLEMENTARY INFORMATION: Guajo n like appearance. The species is Background characterized by having large truncate AGENCY: Fish and Wildlife Service, discs and by a peculiar, melodious and Interior. Eleutherodactylus is the largest low voice which is completely different ACTION: Final rule. vertebrate genus with over 400 from any other species of described species. Two major centers of Eleutherodactylus in Puerto Rico SUMMARY: The Fish and Wildlife Service species diversity occur: northwestern (Rivero 1978). Rivero (1978) states that (Service) determines the guajo´n South America and the West Indies. its peculiar calling and phantom-like (Eleutherodactylus cooki) to be a Almost all species share two appearance made many local people threatened species pursuant to the characteristics—‘‘T-shaped’’ terminal fearful of the species, believing that the Endangered Species Act (Act) of 1973, phalanges, probably an adaptation for mere sight of an animal would be fatal. as amended. The guajo´n is endemic to climbing, and direct development, The guajo´n, first collected by Puerto Rico and is restricted to the allowing for reproduction away from Chapman Grant in 1932, is known only Pandura mountain range in the water. In the West Indies, from the Pandura range in southeastern southeastern part of the island. It is Eleutherodactylus species are a Puerto Rico and west to Patillas/San threatened in this area by agricultural, dominant amphibian group. No single Lorenzo where it lives in crevices and rural, and industrial development and species is naturally found on more than grottoes in and among boulders (Joglar the associated infrastructure. This final one of the four Greater Antilles, and et al. 1996). Such grottoes are rule will implement the Federal most are restricted to small areas within commonly referred to as guajonales. It is protection and recovery provisions an island (Hedges 1989). Seventeen from the grottoes or guajonales where afforded by the Act for E. cooki. species of this genus are known from the species lives that the frog derives its EFFECTIVE DATE: July 11, 1997. Puerto Rico and, collectively, they are name, the guajo´n. The species is 31758 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations apparently limited in distribution by the During a symposium/workshop on the guajo´n. In response to the proposed rock formation where it occurs (Rivero Puerto Rican reptiles and amphibians rule, four comment letters were 1978, Joglar 1992). Joglar et al. (1996) held in Puerto Rico in April of 1990, received, three of which were from documented population fluctuations, Moreno (1991) believed that the guajo´n specialists. One specialist provided apparently related to precipitation and was declining and in urgent need of a additional distributional data on the temperature. Numbers are lowest during status survey. Status surveys conducted species, increasing its known range to the winter months, during the period of in 1991 and 1992 indicated that the include the municipalities of Las least rainfall and lowest temperatures. guajo´n is extremely restricted in Piedras and Humacao in southeastern The number of egg clutches and distribution and currently faces Puerto Rico and agreed that the species’ juveniles was observed to be greatest significant threats (Joglar 1992). Joglar et habitat is threatened by human related during the months of October and al. (1996) recommended that, although activity. A second specialist stated that September. Eggs are laid on the humid studies of 2 specific areas conducted the range of the guajo´n is limited and faces of boulders in protected between 1991 and 1994 did not indicate that any significant alteration of its microhabitats within the grottoes and that those particular populations were habitat might have an effect on its up to 59 eggs, which may actually be declining, protecting the species was existence. Comments supplying multiple clutches, are apparently essential due to its limited distribution supplemental data have been guarded by the males (Rivero 1978, and rapid development of its habitat. incorporated into the Background Joglar et al. 1996). Diurnal activity of E. The Service elevated this species to a section of this rule, as appropriate. A cooki occurs only inside the caves. candidate and proposed it for public hearing was neither requested Many guajones, however, have been threatened status on October 2, 1995 (60 nor held. observed leaving the caves at dusk, FR 51432). Because additional On October 4, 1996, the Service presumably to forage and rehydrate, and information became available reopened the comment period. The returning before dawn (Joglar et al. concerning the species’ distribution and Service again solicited the expert 1996). biology, the Service reopened the opinions of three appropriate and During surveys conducted by Drewry comment period on October 4, 1996 (61 independent specialists. In response to (1986), Joglar (1992), and Joglar et al. FR 51878). the proposed rule, five comment letters (1996), the guajo´n was found at its The processing of this final rule were received, three of which were from historical localities, all of which occur conforms with the Service’s final listing specialists. The Natural Resource within the municipalities of Yabucoa priority guidance published in the Conservation Service, U.S. Department and San Lorenzo. Dr. Fernando Bird Federal Register on December 5, 1996 of Agriculture, stated that the listing of (pers. comm.) also reports the species (61 FR 64475). The guidance clarifies the guajo´n was important and expressed from the municipalities of Las Piedras the order in which the Service will interest in coordinating with the Fish and Humacao. Little historical data is process rulemakings during fiscal year and Wildlife Service in order to identify available on abundance; therefore, 1997. The guidance calls for giving agricultural land where the species reductions in populations are difficult highest priority to handling emergency occurs. to document. Nevertheless, E. cooki is situations (Tier 1) and second highest The following is a summary of other endemic to Puerto Rico and is extremely priority (Tier 2) to resolving the listing comments and concerns (referred to as restricted in geographical distribution. status of the outstanding proposed ‘‘Issues’’ for the purposes of this Further, it is a habitat specialist (i.e., listings. This rule falls under Tier 2. summary) regarding the proposed rule requires a particular habitat type) and Presently, there are no pending Tier 1 that were expressed in writing. occurs only on privately-owned lands. actions in Region 4. In the development Threats to the species include of this final rule, the Service has Comments of similar content have been deforestation and earth movement for conducted an internal review of all grouped together. agricultural activities and rural available information on the species and Issue 1: Two commenters indicated development, road construction, its habitat. that without the designation of critical including the construction of a major habitat the listing of the species would Summary of Comments and four-lane highway, and the construction not be beneficial. Recommendations of a reservoir. Response: The Service believes that, In the October 2, 1995, proposed rule because the guajo´n occupies an Previous Federal Action and associated notifications, all extremely restricted geographic area in In the Service’s notices of review for interested parties were requested to Puerto Rico, protection of its habitat can vertebrate candidates published in the submit factual reports of information be accomplished through the Section 7 Federal Register of December 30, 1982 that might contribute to the jeopardy standard and through Section (47 FR 58454), September 18, 1985 (50 development of a final rule. Appropriate 9 prohibitions against take. Harm in the FR 37958), January 6, 1989 (55 FR agencies of the Commonwealth of definition of ‘‘take’’ in the Act (50 CFR 17475) and November 21, 1991 (56 FR Puerto Rico, Federal agencies, scientific 17.3) means an act which actually kills 58804), Eleutherodactylus cooki was organizations, and other interested or injures wildlife. Such an act may included as a category 2 species. At that parties were requested to comment. A include significant habitat modification time, Category 2 species were those that newspaper notice inviting general or degradation where it actually kills or were being considered for possible public comment was published in The injures wildlife by impairing essential addition to the Federal List of San Juan Star on October 31, 1995, and behavioral patterns, including breeding, Endangered and Threatened Wildlife, in the El Nuevo Dı´a on October 25, feeding or sheltering. This issue is also but insufficient data on biological 1995. The Service also solicited the addressed in the ‘‘Critical Habitat’’ vulnerability and threat were not expert opinions of three appropriate and section of this rule. currently available to support such an independent specialists regarding Issue 2: Two commenters action. Designation of Category 2 pertinent scientific or commercial data recommended that the species remain a species was discontinued in the and assumptions relating to candidate for its protection until an December 5, 1996, Federal Register distribution, abundance, status and ongoing study of the guajo´n’s notice (61 FR 64481). biological and ecological information for reproductive biology is completed. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31759

Response: Candidate species receive right up to the entrance of the E. Other Natural or Manmade Factors no statutory protection under the Act. guajonales may eliminate nocturnal Affecting Its Continued Existence Thus, having it remain a candidate habitat of the species and increase the The decline in populations of would not provide the maximum pesticide and fertilizer run-off into the amphibians has become apparent ´ conservation benefit to the guajon. The water flowing under the caves. Caves globally. Factors which may be Act requires the Service to make a are also often used as garbage dumps. responsible for the decline of listing determination based upon the Road construction and the associated amphibians include habitat destruction best scientific and commercial data cut and fill has eliminated habitat and modification, acid rain, pesticide available. The Service believes that (Drewry 1986). A major four-line contamination, introduction of non- sufficient information on status and highway is currently proposed through native predators and competitors, threats is available to warrant listing the the area, as is the construction of a agriculture, mining and logging, species as threatened. Information major reservoir. increased levels of ultraviolet radiation, derived from the ongoing study of B. Overutilization for Commercial, collection, and global climatic change reproductive biology will be valuable Recreational, Scientific, or Educational (Wake and Morowitz 1991, Joglar and for recovery purposes and will be Purposes Burrowes 1996). incorporated into the recovery plan. Issue 3: A commenter indicated that Although not previously identified as Flash floods, droughts, and while scientific collection had not a determinant factor in the decline of catastrophic storms, such as Hurricane adversely affected the species, other the guajo´n specifically, scientific Hugo which occurred in 1989, may have human-related factors do affect the collecting of related species of coquı´ in caused localized extirpations of other guajo´n. Another commenter indicated Puerto Rico may have contributed to species of Eleutherodactylus in specific that collecting by artisans was probably declines. In a survey of only seven areas in Puerto Rico (Burrowes and not a threat due to the difficulty and the museums in both Puerto Rico and the Joglar 1991, Joglar 1992, Joglar and danger of entering the caves, but stated United States, numerous specimens of Burrowes 1996). Hurricane Hugo that scientific collecting should be the web-footed coquı´ (E. karlschmidti) negatively affected the abundance of E. regulated. and the mottled coquı´ (E. eneidae) were portoricensis, a species which is not Response: The rule states that located, with a total of 473 preserved abundant and is restricted in collection has been identified as a individuals of the former and 325 of the distribution (Joglar and Burrowes 1991). problem by scientists for other species latter species (Joglar 1992). Both of these The guajo´n is endemic to Puerto Rico, of Eleutherodactylus; therefore, it related species’ status are under a habitat specialist, and extremely should be considered as a potential evaluation by the Service because of restricted in distribution. It is known threat for the guajo´n. This issue is their extreme rarity. Collection of other only from the southeastern part of the addressed in the ‘‘Summary of Factors Eleutherodactylus sp. for use in local art island. Affecting the Species’’ section is this has also been documented, and this The Service has carefully assessed the rule. activity is currently being evaluated by best scientific and commercial the Commonwealth government for information available regarding the past, Summary of Factors Affecting the possible regulation. present, and future threats faced by this Species species in determining to make this rule After a thorough review and C. Disease or Predation final. Based on this evaluation, the consideration of all information Disease has not been documented as preferred action is to list available, the Service has determined a factor in the decline of this species. Eleutherodactylus cooki as threatened, that the guajo´n should be classified as However, examination of both preserved because the species is extremely a threatened species. Procedures found and live specimens of the guajo´n restricted in distribution and is at Section 4(a)(1) of the Act and revealed that the species is parasitized specialized in habitat utilization. regulations implementing the listing by the tick Ornithodoros talaje. Activities such as dam and road provisions of the Act (50 CFR part 424) Nevertheless, the effect of this parasite construction and land conversion to were followed. A species may be on the guajo´n has yet to be studied agriculture threaten to significantly determined to be an endangered or (Joglar 1992, Joglar et al. 1996). reduce available habitat. While not in threatened species due to one or more Introduced species such as cats, rats, immediate danger of extinction, the of the five factors described in section and mongoose, active at night, may guajo´n is likely to become an 4(a)(1). These factors and their adversely affect densities of this species endangered species in the foreseeable application to the guajo´n by feeding on the frogs and their eggs. future if present threats continue. The (Eleutherodactylus cooki) are as follows: reasons for not designating critical D. The Inadequacy of Existing habitat for this species are discussed A. The Present or Threatened Regulatory Mechanisms below in the ‘‘Critical Habitat’’ section. Destruction, Modification, or The Commonwealth of Puerto Rico Curtailment of Its Habitat or Range has adopted a regulation that recognizes Critical Habitat The guajo´n is only known from the and provides protection for certain Critical habitat is defined in section 3 municipalities of Yabucoa, San Lorenzo, Commonwealth listed species. However, of the Act as: (i) The specific areas Humacao, and Las Piedras in the the guajo´n is not yet on the within the geographical area occupied Pandura range in the extreme Commonwealth list. Federal listing by a species, at the time it is listed in southeastern corner of Puerto Rico. would provide immediate protection accordance with the Act, on which are Deforestation and earth movement for under the Act, and by virtue of an found those physical or biological agricultural and rural development have existing section 6 Cooperative features (I) essential to the conservation encroached upon known habitat of the Agreement with the Commonwealth, of the species and (II) that may require species. Deforestation may result in will also assure the addition of this special management considerations or increased flash flooding, resulting in the species to the Commonwealth list and protection and; (ii) specific areas drowning of adults and the destruction enhance its protection and possibilities outside the geographical area occupied of nests. The practice of planting crops for funding needed research. by a species at the time it is listed, upon 31760 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations a determination that such areas are Regulations promulgated for small roads and a major highway essential for the conservation of the implementing Section 7 of the Act through the area. species. ‘‘Conservation’’ means the use provide for both a jeopardy standard, The Act and its implementing of all methods and procedures needed based on listing alone, and for a regulations set forth a series of general to bring the species to the point at destruction or adverse modification trade prohibitions and exceptions that which listing under the Act is no longer standard, in cases where critical habitat apply to all threatened wildlife. The necessary. has been designated. The guajo´n prohibitions, codified at 50 CFR 17.21 Section 4(a)(3) of the Act, as occupies an extremely restricted and 17.31, in part, make it illegal for any amended, and implementing regulations geographic area in Puerto Rico and, person subject to the jurisdiction of the (50 CFR 424.12) require that, to the once listed, the Service believes that United States to take (includes harass, maximum extent prudent and protection of guajo´n habitat can be harm, pursue, hunt, shoot, wound, kill, determinable, the Secretary designate accomplished through the Section 7 trap, or collect; or to attempt any of critical habitat at the time the species is jeopardy standard, and through Section these), import or export, ship in determined to be endangered or 9 prohibitions against take. interstate commerce in the course of commercial activity, or sell or offer for threatened. The Service finds that the Available Conservation Measures designation of critical habitat is not sale in interstate or foreign commerce prudent for the guajo´n. Service Conservation measures provided to any listed species. It is also illegal to regulations (50 CFR 424.12(a)(1)) state species listed as endangered or possess, sell, deliver, carry, transport, or that designation of critical habitat is not threatened under the Endangered ship any such wildlife that has been prudent when one or both of the Species Act include recognition, taken illegally. Certain exceptions apply following situations exist—(1) The recovery actions, requirements for to agents of the Service and species is threatened by taking or other Federal protection, and prohibitions Commonwealth conservation agencies. human activity, and identification of against certain practices. Recognition Permits may be issued to carry out critical habitat can be expected to through listing results in conservation otherwise prohibited activities involving threatened wildlife species increase the degree of threat to the actions by Federal, Commonwealth, and under certain circumstances. species, or (2) such designation of private agencies, and individuals. The Regulations governing permits are at 50 critical habitat would not be beneficial Act provides for possible land CFR 17.32. Such permits are available to the species. acquisition and cooperation with the for scientific purposes, to enhance the While collection has not been Commonwealth and requires that recovery actions be carried out for all propagation or survival of the species, documented as contributing to the and/or for incidental take in connection ´ listed species. Such actions are initiated decline of the guajon specifically, large with otherwise lawful activities. For by the Service following listing. The numbers of other Eleutherodactylus threatened species, permits are also protection required of Federal agencies species, including several identified as available for zoological exhibition, and the prohibitions against taking and species at risk, have been documented educational purposes, or special harm are discussed, in part, below. in scientific collections. Collection of purposes consistent with the purposes Eleutherodactylus sp. has been Section 7(a) of the Act, as amended, of the Act. Requests for copies of the documented for use by local artisans, requires Federal agencies to evaluate regulations regarding listed wildlife and and such collection is currently under their actions with respect to any species inquiries about prohibitions and permits evaluation by the Commonwealth that is proposed or listed as endangered may be addressed to the Service’s government for possible regulation. In or threatened and with respect to its Southeast Regional Office, 1875 Century addition, due to the appearance of the critical habitat, if any is being Boulevard, Suite 200, Atlanta, Georgia animal, Rivero (1978) stated that local designated. Regulations implementing 30345 (404/679–7313). people were fearful of them. This fear this interagency cooperation provision It is the policy of the Service (59 FR could lead to killing of guajo´n. of the Act are codified at 50 CFR part 34272) to identify to the maximum The guajo´n is rare and restricted in 402. Section 7(a)(2) requires Federal extent practicable those activities that range, and taking for scientific and agencies to ensure that activities they would or would not constitute a private collection would pose a serious authorize, fund, or carry out are not violation of section 9 of the Act at the threat to the species if specific site likely to jeopardize the continued time of listing. The intent of this policy information were released. The existence of the species or destroy or is to increase public awareness of the publication of critical habitat maps in adversely modify its critical habitat. If a effect of listing on proposed or ongoing the Federal Register and local Federal action may affect a listed activities. The only known populations newspapers and other publicity species or its critical habitat, the of guajo´n are located on privately- accompanying critical habitat responsible Federal agency must enter owned land. The Service believes that, designation would likely increase the into formal consultation with the based on the best available information, collection threat and increase the Service. the following actions will not result in potential for vandalism if such habitat Federal agency actions that may a violation of section 9, provided these were designated. The Service believes, require consultation as described in the activities are carried out in accordance therefore, that the identification of preceding paragraph include the Army with existing regulations and permit critical habitat may increase the threat Corps of Engineers and/or National requirements: to the species. The locations of Resource Conservation Service (1) Possession of legally acquired populations of this species have (previously Soil Conservation Service) guajo´n, under Service-approved consequently been described only in involvement in the construction of a permitted conditions; and general terms in the final rule. Any reservoir; Rural Development (formerly (2) Federally funded or regulated existing precise locality data would be Farmer’s Home Administration) funding projects that involve activities, such as available to appropriate Federal, State, of water, sewer, and power lines, as well dam and road construction, earth and local governmental agencies from as residential developments; and the movement for agricultural activities and the Service office described in the Federal Highway Administration’s rural development, or diversion or ADDRESSES section. involvement in the construction of alteration of surface or ground water Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31761 flow into or out of grottoes (e.g., due to Required Determinations Moreno, J.A. (ed.) 1991. Status y Distribucio´n roads, impoundments, discharge pipes, de los Anfibios y Reptiles de Puerto The Service has examined this Rico. Publ. Cien. Misc. No. 1. storm water detention basins, etc.), regulation under the Paperwork when such activity is conducted in Departamento de Recursos Naturales y Reduction Act of 1995 and found it to Ambientales de Puerto Rico. San Juan, accordance with any reasonable and contain no information collection Puerto Rico 67 pp. prudent measures given by the Service requirements. Rivero, J.A. 1978. Los Anfibios y Reptiles de in accordance with section 7 of the Act. Puerto Rico. U.P.R. Editorial Activities that the Service believes References Cited Universitaria. San Juan, Puerto Rico 152 could potentially result in ‘‘take’’ of the Burrowes, P.A. and R.L. Joglar. 1991. A pp. guajo´n, include, but are not limited to: survey of the population status and an Wake, D.B. and H.J. Morowitz. 1991. (1) Unauthorized collecting or capture ecological evaluation of three Puerto Declining amphibian populations—a of the species; Rican frogs. Pp. 42–46 in J.A. Moreno, global phenomenon? Findings and ed., Status y Distribucio´n de los Anfibios recommendations. Alytes 9(2): 33–42. (2) Purposeful introduction of exotic y Reptiles de Puerto Rico. Publ. Cien. species, such as cats, rats, and Misc. No.1. Departamento de Recursos Author mongoose, that may adversely affect Naturales y Ambientales, San Juan, densities of this species by feeding on Puerto Rico. The primary author of this final rule adults or eggs; Drewry, G.E. 1986. Golden coqui recovery is Ms. Susan Silander, Boquero´n Field (3) Unauthorized destruction/ survey and brief status evaluation of five Office, U.S. Fish and Wildlife Service, alteration of the species’ habitat (e.g., other Puerto Rican Eleutherodactylus P.O. Box 491, Boquero´n, Puerto Rico rock removal, discharge of fill materials, species. Trip report prepared for the 00622 (809/851–7297). Caribbean Field Office, U.S. Fish and earth movement for agricultural Wildlife Service. 49 pp. List of Subjects in 50 CFR Part 17 activities and rural development, or Hedges, S.B. 1989. Evolution and diversion or alteration of surface or biogeography of West Indian frogs of the Endangered and threatened species, ground water flow into or out of genus Eleutherodactylus: slow-evolving Exports, Imports, Reporting and grottoes) when such activity is not loci and the major groups. Pp.305–370 in recordkeeping requirements, and conducted in accordance with section 7 Biogeography of the West Indies. Transportation. of the Act; Joglar, R.L. 1992. Status survey of four (4) Pesticide applications in violation species of Eleutherodactylus: Final Regulation Promulgation report. Report prepared for the Caribbean of label restrictions; and Field Office, U.S. Fish and Wildlife Accordingly, part 17, subchapter B of (5) Discharges or dumping of toxic Service. 41 pp. chapter I, title 50 of the Code of Federal chemicals, silt, or other pollutants into Joglar, R.S. and P.A. Burrowes. 1991. El Regulations, is amended as set forth areas supporting this species. efecto del Huraca´n Hugo sobre una below: Questions regarding whether specific comunidad de anfibios en El Yunque, Puerto Rico y algunas recomendaciones activities will constitute a violation of Part 17Ð[AMENDED] section 9 should be directed to the Field para la proteccio´n de las especies del ´ ´ genero Eleutherodactylus. Pp. 47–52 in Supervisor of the Service’s Boqueron J.A. Moreno, ed., Status y Distribucio´n 1. The authority citation for part 17 Field Office (see ADDRESSES section). de los Anfibios y Reptiles de Puerto continues to read as follows: Requests for copies of the regulations on Rico. Publ. Cien. Misc. No.1. Authority: 16 U.S.C. 1361–1407; 16 U.S.C. listed species and inquiries regarding Departamento de Recursos Naturales y prohibitions and permits should be Ambientales, San Juan, Puerto Rico. 1531–1544; 16 U.S.C. 4201–4245; Pub. L. 99– addressed to the U.S. Fish and Wildlife Joglar, R.S. and P.A. Burrowes. 1996. 625, 100 Stat. 3500, unless otherwise noted. Service, Ecological Services, 1875 Declining amphibian populations in Puerto Rico. Pp. 371–380 in R. Powell 2. Section 17.11(h) is amended by Century Boulevard, Atlanta, Georgia adding the following, in alphabetical 30345–3301 (404/679–7313). and R.W. Henderson, eds., Contributions to West Indian Herpetology: A Tribute to order under AMPHIBIANS, to the List of National Environmental Policy Act Albert Schwartz. Society for the Study of Endangered and Threatened Wildlife to Amphibians and Reptiles, Ithaca (New read as follows: The Fish and Wildlife Service has York). Contributions to Herpetology, vol. determined that an Environmental 12. § 17.11 Endangered and threatened Assessment, as defined under the Joglar, R.S., P.A. Burrowes, and N. Rios. wildlife. 1996. Biology of the Puerto Rican cave- authority of the National Environmental * * * * * Policy Act of 1969, need not be dwelling frog, Eleutherodactylus cooki, prepared in connection with regulations and some recommendations for its (h) * * * adopted pursuant to section 4(a) of the conservation. Pp. 251–258 in R. Powell and R.W. Henderson, eds., Contributions Endangered Species Act of 1973, as to West Indian Herpetology: A Tribute to amended. A notice outlining the Albert Schwartz. Society for the Study of Service’s reasons for this determination Amphibians and Reptiles, Ithaca (New was published in the Federal Register York). Contributions to Herpetology, vol. on October 25, 1983 (48 FR 49244). 12.

Species Vertebrate popu- Historic range lation where endan- Status When listed Critical Special Common name Scientific name gered or threatened habitat rules

******* Amphibians 31762 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

Species Vertebrate popu- Historic range lation where endan- Status When listed Critical Special Common name Scientific name gered or threatened habitat rules

******* GuajoÂn ...... Eleutherodactylus U.S.A. (PR) ...... NA ...... T 617 NA NA cooki.

*******

Dated: May 16, 1997. Jay L. Gerst, Acting Director, Fish and Wildlife Service. [FR Doc. 97–15300 Filed 6–10–97; 8:45 am] BILLING CODE 4310±55±P 31763

Proposed Rules Federal Register Vol. 62, No. 112

Wednesday, June 11, 1997

This section of the FEDERAL REGISTER OPM proposes to revise the definition of initial determination and honor the contains notices to the public of the proposed ‘‘child support’’ to permit the legal process. The district court issuance of rules and regulations. The garnishment of attorney fees relating to indicated that the current section purpose of these notices is to give interested the garnishment action. OPM also 582.305(g) supported the court’s holding persons an opportunity to participate in the proposes to include three more types of that Congress had waived the Federal rule making prior to the adoption of the final rules. Federal payments, that will be subject to Government’s immunity in instances garnishment: pension payments where an employing agency failed to disbursed by the Department of comply with a commercial garnishment OFFICE OF PERSONNEL Veterans Affairs; compensation for order. OPM’s regulations are neither MANAGEMENT death payments; and ‘‘black lung’’ intended, nor may they be properly benefits payable under any Federal constructed, as support for the 5 CFR Parts 581 and 582 program. conclusion that Congress has waived the RIN 3206±AH43 While not expressly mandated by Federal Government’s sovereign Public Law 104–193, OPM believes that immunity in a manner that would make Processing Garnishment Orders for it was the intent of Congress in enacting the Federal Government liable for Child Support and Alimony and this law, that awards for making damages as a result of a failure to Commercial Garnishment of Federal suggestions as authorized by 5 U.S.C. comply with legal process. The Employees' Pay 4503 be subject to support garnishment. proposed amendment to section OPM is, therefore, proposing to delete 582.305(g) would delete both that AGENCY: Office of Personnel the exception for suggestion awards in portion of the paragraph that discusses Management. section 581.104(j). These awards remain an agency’s authority to correct an error ACTION: Proposed rulemaking. exempt from commercial garnishment and the conclusion that under no orders. circumstances will an agency be SUMMARY: The Office of Personnel OPM proposes amendments to clarify required to pay more than if it had Management (OPM) proposes to amend section 581.105 concerning the originally honored the legal process, as the rules for processing garnishment precedence of tax levies and section this provision may be mistakenly orders for child support and alimony 581.402 concerning the applicability of construed as acknowledging and the rules for processing commercial the maximum limitation of the Government liability and a concomitant garnishment orders. The majority of the Consumer Credit Protection Act, 15 waiver of sovereign immunity. amendments to the child support and U.S.C. 1673, in the unusual situation OPM also proposed, in accordance alimony garnishment regulations where an employee-obligor receives with a request from the Justice (‘‘support regulations’’) are mandated by remuneration from more than one Department, to amend section the provisions of the Personal governmental entity. 581.305(e) to state the Government’s Responsibility and Work Opportunity In compliance with the National similar absence of liability in the Reconciliation Act of 1996. Defense Authorization Act (NDAA) for context of improperly effectuated In addition, OPM proposes to amend Fiscal Year 1996, Public Law 104–106, support garnishment orders. It is the both the support regulations and the enacted on February 10, 1996, OPM Federal Government’s position that the commercial garnishment regulations to proposes to amend section 582.305(k) to support garnishment statute did not provide that while the Federal require employing agencies to deduct waive sovereign immunity in a manner Government’s sovereign immunity has the agency’s administrative costs that would make the Federal been waived to allow for processing incurred in complying with commercial Government liable for damages as a garnishment orders, this waiver garnishment orders. In accordance with result of failure to comply with legal necessarily limited and that the Federal the intent of Congress as evidenced by process. This amendment to the support Government is not liable to pay money the applicable legislative history of the garnishment regulations alters damages for failure to comply with legal NDAA, the creditor will be required to regulatory language that has been in process. pay these costs. effect since 1980. The current regulatory DATES: Comments should be received by As requested by the Department of language is incorrect as a matter of law. August 11, 1997. Justice, OPM is also proposing to amend This amendment is in accordance with ADDRESSES: Send or deliver comments section 582.305(c) where an appeal of a several important judicial decisions to Lorraine Lewis, General Counsel, commercial garnishment action is filed concerning sovereign immunity, Office of Personnel Management, Room and to amend section 582.305(g) in including the decision recently 7355, 1900 E Street NW., Washington, response to an issue raised in a recent announced by the United States Court of DC 20415. judicial decision, First Virginia Bank v. Appeals for the District of Columbia FOR FURTHER INFORMATION CONTACT: Randolph, 920 F.Supp. 213 (D.D.C. Circuit in Department of the Army v. Murray M. Meeker, Senior Attorney, 1996), rev’d, No. 96–5205 (D.C. Cir. Federal Labor Relations Authority, 56 Office of the General Counsel, (202) April 11, 1997). Section 582.305(g) F.3d 273 (1995). 606–1701. currently provides that where an In accordance with the Minimum SUPPLEMENTARY INFORMATION: In employing agency initially determines Wage Increase Act of 1996, section 2104 accordance with the Personal that legal process should not be of Public Law 104–188, OPM is Responsibility and Work Opportunity honored, if it subsequently determines amending section 582.402. Effective Reconciliation Act of 1996, Public Law that the initial determination was October 1, 1996, section 2104 set the 104–193, enacted on August 22, 1996, erroneous, the agency may correct its minimum hourly wage at $4.75, and 31764 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules effective September 1, 1997, the subsections, and to any other legal of the individual to provide child minimum hourly wage will be $5.15. process brought by a State agency support, alimony, or both subject to regulations of the Secretary of Regulatory Flexibility Act * * * * * Health and Human Services that is (k) Individual obligee means any I certify that these regulations will not administering a program under an individual or entity other than a State have significant economic impact on a approved State plan to enforce the legal agency authorized to issue income substantial number of small entities obligations of obligors to provide child withholding notices pursuant to the because their effects are limited to support and alimony. requirements of section 666(b) to title 42 Federal employees and their creditors. (b) Section 659 of title 42, United of the United States Code. States Code, as amended, provides Executive Order 12866, Regulatory 4. In § 581.103, paragraph (c) is further that each governmental entity Review revised to read as follows: shall be subject to the same This rule has been reviewed by the requirements as would apply if the § 581.103 Moneys which are subject to Office of Management and Budget in governmental entity were a private garnishment. accordance with Executive Order 12866. person, except as set forth in this part. * * * * * 3. In § 581.102, paragraphs (d) and (f) (c) For obligors generally: List of Subjects in 5 CFR Parts 581 and are revised and paragraph (k) is added (1) Periodic benefits, including a 582 to read as follows: periodic benefit as defined in section Alimony, Child support, Claims, 429(h)(3) of title 42 of the United States Government employees, and Wages. § 581.102 Definitions. Code, title II of the Social Security Act, U.S. Office of Personnel Management. * * * * * to include a benefit payable in a lump (d) Child support means the amounts James B. King, sum if it is commutation of, or a required to be paid for the support and substitute for, periodic payments; or Director. maintenance of a child, including a other payments to these individuals Accordingly, OPM is proposing to child who has attained the age of under the programs established by amend parts 581 and 582 of Title 5, majority under the law of the issuing subchapter II of chapter 7 of title 42 of Code of Federal Regulations, as follows: State, or a child and the parent with the United States Code (Social Security whom the child is living, who provides Act); pension payments made by the PART 581ÐPROCESSING for monetary support, health care, Department of Veterans Affairs; and GARNISHMENT ORDERS FOR CHILD arrearages or reimbursement, and which payments under chapter 9 of title 45 of SUPPORT AND ALIMONY may include other related costs and the United States Code (Railroad 1. The authority citation for part 581 fees, interest and penalties, income Retirement Act) or any other system, is revised as follows: withholding, attorney’s fees, and other plan, or fund established by the United relief. States (as defined in section 662(a) of Authority: 42 U.S.C. 659; 15 U.S.C. 1673; E.O. 12105 43 FR 59465 and 3 CFR, 1979 * * * * * title 42 of the United States Code) which Comp., p. 262. (f) Legal process means any writ, provides for the payment of: order, summons, notice to withhold (i) Pensions; 2. Section 581.101 is revised to read income pursuant to subsection (a)(1) or (ii) Retirement benefits; as follows: (b) of section 666 of title 42, United (iii) Retired/retainer pay; (iv) Annuities; and § 581.101 Purpose. States Code, or other similar process in the nature of garnishment, which may (v) Dependents’ or survivors’ benefits (a) Notwithstanding any other include an attachment, writ of when payable to the obligor; provision of law (including section 407 execution, or court ordered wage (2) Refunds of retirement of title 42, United States Code, section assignment, which— contributions where an application has 5301 of title 38, United States Code, and (1) Is issued by: been filed; sections 8346 and 8470 of title 5, United (i) A court of competent jurisdiction, (3) Employee contributions and States Code), section 659 of title 42, including Indian tribal courts, within Government contributions to the United States Code, as amended, any State, territory, or possession of the obligor’s Thrift Savings Fund account in provides that moneys, the entitlement to United States, or the District of accordance with section 8437(e) of title which is based upon remuneration for Columbia; 5 of the United States Code; employment, due from, or payable by, (ii) A court of competent jurisdiction (4) Amounts received under any the United States or the District of in any foreign country with which the Federal program for compensation for Columbia to any individual, shall be United States has entered into an work injuries; and subject, in like manner and to the same agreement that requires the United (5) Benefits received under the extent as if the United States or the States to honor such process; or Longshoremen’s and Harbor Workers’ District of Columbia were a private (iii) An authorized official pursuant to Compensation Act. person: an order of a court of competent (6) Compensation for death under any (1) To legal process for the jurisdiction or pursuant to State or local Federal program, including death enforcement of an obligor’s legal law; or gratuities authorized under 5 U.S.C. obligations to provide child support, (iv) A State agency authorized to issue 8133(f); 5 U.S.C. 8134(a); Public Law alimony, or both, resulting from an income withholding notices pursuant to 103–332, section 312; and Public Law action brought by an individual obligee; State or local law or pursuant to the 104–208, section 651. and requirements of section 666(b) to title 42 (7) Any payment under any Federal (2) To withholding in accordance of the United States Code; and program established to provide ‘‘black with State law enacted pursuant to (2) Is directed to, and the purpose of lung’’ benefits; subsections (a)(1) and (b) of section 666 which is to compel, a governmental (8) Any payment by the Secretary of of title 42, United States Code, and to entity, to make a payment from moneys Veterans Affairs as compensation for a regulations of the Secretary of Health otherwise payable to an individual, to service-connected disability paid by the and Human Services under such another party to satisfy a legal obligation Secretary to a former member of the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31765

Armed Forces who is in receipt of However, valid service is not pay money damages for failure to retired or retainer pay if the former accomplished until the legal process is comply with legal process. member has waived either the entire received in the office of the designated * * * * * amount or a portion of the retired or agent. 10. In subpart D, § 581.402 is revised retainer pay in order to receive such * * * * * to read as follows: compensation. In such cases, only that 8. In § 581.303, paragraph (a) is part of the Department of Veterans § 581.402 Maximum garnishment revised to read as follows: limitations. Affairs payment that is in lieu of the waived retired pay or waived retainer § 581.303 Response to legal process or (a) Except as provided in paragraph pay is subject to garnishment. interrogatories. (b) of this section, pursuant to section (a) Whenever the designated agent is 1673(b)(2) (A) and (B) of title 15 of the § 581.104 [Amended] validly served with legal process United States Code (the Consumer 5. In § 581.104, paragraph (j) is pursuant to State procedures in effect Credit Protection Act, as amended), removed and paragraph (k) is pursuant to subsection (a)(1) or (b) of unless a lower maximum garnishment redesignated as paragraph (j). section 666 of title 42, United States limitation is provided by applicable 6. In § 581.105, paragraph (a) is Code, within 30 calendar days, or State or local law, the maximum part of revised to read as follows: within such longer period as may be the aggregate disposable earnings prescribed by applicable State law, the subject to garnishment to enforce any § 581.105 Exclusions. agent shall comply with all applicable support order(s) shall not exceed: * * * * * provisions of section 666, including as (1) Fifty percent of the obligor’s (a) Are owed by the individual to the follows: aggregate disposable earnings for any United States, except that an (1) If an agent is served with notice workweek, where the obligor asserts by indebtedness based on a levy for income concerning amounts owed by an obligor affidavit, or by other acceptable tax under section 6331 of title 26 of the to more than one person, the agent shall evidence, that he or she is supporting a United States Code, shall not be comply with section 666(b)(7); spouse, a dependent child, or both, excluded in complying with legal (2) Allocation of moneys due and other than the former spouse, child, or process for the support of minor payable to an individual under section both, for whose support such order is children if the legal process was entered 666(b) shall be governed by section issued, except that an additional five prior to the date of the levy; 666(b) and the regulations prescribed percent will apply if it appears on the * * * * * under such section by the Secretary of face of the legal process, or from other 7. In § 581.202, paragraphs (a) and (b) Health and Human Services; evidence submitted in accordance with are revised to read as follows: (3) Such moneys as remain after § 581.202(d), that such earnings are to compliance with paragraphs (a)(1) and enforce a support order for a period § 581.202 Service of process. (a)(2) of this section shall be available to which is 12 weeks prior to that (a) A party using this part shall serve satisfy any other such legal process on workweek. An obligor shall be legal process on the agent designated in a first-come, first-served basis, with any considered to be supporting a spouse, appendix A to this part, or if no agent such legal process being satisfied out of dependent child, or both, only if the has been designated for the such moneys as remain after the obligor provides over half of the support governmental entity having payment satisfaction of all such legal process for a spouse, dependent child or both. responsibility for the moneys involved, which have been previously served. (2) Sixty percent of the obligor’s then upon the head of that (4) The agent shall also respond aggregate disposable earnings for any governmental entity, which has moneys within 30 days to interrogatories which workweek, where the obligor fails to due and payable to the obligor. Where accompany legal process. assert by affidavit or establishes by other the legal process is directed to, and the * * * * * acceptable evidence, that he or she is purpose of the legal process is to compel 9. In § 581.305, paragraphs (d) and (e) supporting a spouse, dependent child, a governmental entity which holds are revised to read as follows: or both, other than a former spouse, moneys which are otherwise payable to child, or both, with respect to whose an individual, to make a payment from § 581.305 Honoring legal process. support such order is issued, except that such moneys in order to satisfy a legal * * * * * an additional five percent will apply if obligation of such individual to provide (d) If a governmental entity is served it appears on the face of the legal child support or make alimony with more than one legal process for the process, or from other evidence payments, the legal process need not same moneys due or payable to an submitted in accordance with expressly name the governmental entity individual, the entity shall comply with § 581.202(d), that such earnings are to as a garnishee. § 581.303(a). Provided, That in no event enforce a support order for period (b) Service shall be accomplished will the total amount garnished for any which is 12 weeks prior to that pursuant to State procedures in effect pay or disbursement cycle exceed the workweek. pursuant to subsection (a)(1) or (b) of applicable limitation set forth in (3) Where, under § 581.302(a)(2), an section 666 of title 42 of the United § 581.402. obligor submits evidence that he or she States Code. The designated agent shall (e)(1) Neither the United States, any is supporting a second spouse, child, or note the date and time of receipt on the disbursing officer, nor any governmental both a second spouse and dependent legal process. The governmental entity entity shall be liable for any payment child, copies of the evidence shall be shall make every reasonable effort to made from moneys due from, or payable sent by the governmental entity to the facilitate proper service of process on its by, the United States to any individual garnishor, or the garnishor’s designated agent(s). If legal process is pursuant to legal process regular on its representative, as well as the court, or not directed to any particular official face, if such payment is made in other authority as specified in within the entity, or if it is addressed to accordance with this part. § 581.102(f)(1), together with the wrong individual, the recipient (2) Neither the United States, any notification that the obligor’s support shall, nonetheless, forward the legal disbursing officer, nor any governmental claim will be honored. If the garnishor process to the designated agent. entity shall be liable under this part to disagrees with the obligor’s support 31766 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules claim, the garnishor should immediately amount deducted as a administrative aggregate disposable earnings are refer the matter to the court, or other costs, may not exceed the limitations in subject to garnishment. authority, for resolution. § 582.401 (2) If the employee-obligor’s aggregate (b) In instances where an obligor is [Example to paragraph (k): Where the disposable earnings for a workweek are receiving remuneration from more than employee-obligor’s aggregate disposable less than 40 times the FLSA minimum one governmental entity, an authority earnings are $1,000; the commercial hourly wage, garnishment may not described in § 581.102(f)(1) may apply garnishment is at the 25% maximum exceed the amount by which the the limitations described in paragraph percentage; and the cost of processing the employee-obligor’s aggregate disposable (a) of this section to the total commercial garnishment order is $25 per garnishment action: $225 would be remitted earnings exceed 30 times the current remuneration, i.e., to the combined in compliance with the order and $25 would minimum wage rate. For example, at an aggregate disposable earnings received be deducted as the administrative cost for a FLSA minimum wage rate of $5.15 per by the obligor. deduction total of $250. However, while only hour, the amount of aggregate $225 would be remitted, the agency would disposable earnings which may not be PART 582ÐCOMMERCIAL reduce the balance due as if $250 had been garnished is $154.50 [$5.15 x 30]. Only GARNISHMENT OF FEDERAL remitted.] the amount above $154.50 is EMPLOYEES' PAY * * * * * garnishable. 11. The authority citation for part 582 13. In § 582.402, paragraph (a) is (3) If the employee-obligor’s aggregate is revised as follows: revised to read as follows: disposable earnings in a workweek are Authority: 5 U.S.C. 5520a; 15 U.S.C. 1673; § 582.402 Maximum garnishment equal to or less than 30 times the FLSA Pub. L. 104–106, section 643; E.O. 12897, 3 limitations. minimum hourly wage, the employee- CFR, 1995 Comp., p. 858. * * * * * obligor’s earnings may not be garnished in any amount. 12. In § 582.305, paragraphs (c), (g), (a) Unless a lower maximum and (k) are revised to read as follows: limitation is provided by applicable * * * * * State or local law, the maximum part of [FR Doc. 97–15182 Filed 6–10–97; 8:45 am] § 582.305 Honoring legal process. an employee-obligor’s aggregate BILLING CODE 6325±01±M * * * * * disposable earnings subject to (c) (1) The filing of an appeal by an garnishment to enforce any legal debt employee-obligor will not generally other than an order for child support or DEPARTMENT OF TRANSPORTATION delay the processing of a garnishment alimony, including any amounts action. If the employee-obligor withheld to offset administrative costs Federal Aviation Administration establishes to the satisfaction of the as provided for in § 582.305(k), shall not employee-obligor’s agency that the law exceed 25 percent of the employee- 14 CFR Part 39 of the jurisdiction which issued the obligor’s aggregate disposable earnings legal process provides that the for any workweek. As appropriate, State [Docket No. 96±CE±58±AD] processing of the garnishment action or local law should be construed as shall be suspended during an appeal, providing a lower maximum limitation RIN 2120±AA64 and if the employee-obligor establishes where legal process may only be Airworthiness Directives; Fairchild that he or she has filed an appeal, the processed on a one at a time basis. Aircraft Incorporated Models SA226± employing agency shall comply with the Where an agency is garnishing 25 TC, SA226±T, SA226±T(B), and SA226± applicable law of the jurisdiction and percent or more of an employee- AT Airplanes delay or suspend the processing of the obligor’s aggregate disposable earnings garnishment action. for any workweek in compliance with AGENCY: Federal Aviation (2) Notwithstanding paragraph (c)(1) legal process to which an agency is Administration, DOT. of this section, the employing agency subject under sections 459, 461, and 462 ACTION: Notice of proposed rulemaking shall not be required to establish an of the Social Security Act, no additional (NPRM). escrow account to comply with legal amount may be garnished in compliance process even if the applicable law of the with legal process under this part. SUMMARY: This document proposes to jurisdiction requires private employers Furthermore, the following dollar adopt a new airworthiness directive to do so. limitations, which are contained in title (AD) that would apply to certain * * * * * 29 of the Code of Federal Regulations, Fairchild Aircraft Incorporated (g) (1) Neither the United States, an part 870, must be applied in (Fairchild) Models SA226–TC, SA226– executive agency, nor any disbursing determining the garnishable amount of T, SA226–T(B), and SA226–AT officer shall be liable for any payment the employee’s aggregate disposable airplanes. The proposed AD would made from moneys due from, or payable earnings: require inspecting the center flap hinge by, the United States to any individual (1) If the employee-obligor’s aggregate and wing trailing edge ribs at the flap pursuant to legal process regular on its disposable earnings for the workweek actuator attach brackets for cracks and if face, if such payment is made in are in excess of 40 times the Fair Labor no cracks are found, installing a doubler accordance with this part. Standard Act (FLSA) minimum hourly on the rib, or replacing a cracked rib (2) Neither the United States, an wage, 25 percent of the employee- with a new rib assembly that is executive agency, nor any disbursing obligor’s aggregate disposable earnings reinforced with a doubler. Fatigue officer shall be liable under this part to may be garnished. For example, cracks at the center flap hinge and the pay money damages for failure to effective September 1, 1997, when the support link has resulted in comply with legal process. FLSA minimum wage rate is $5.15 per concentrated stress on the wing trailing * * * * * hour, this rate multiplied by 40 equals edge ribs which prompted the proposed (k) The agency’s administrative costs $206.00 and thus, if an employee- action. The actions specified by the incurred in executing a garnishment obligor’s aggregate disposable earnings proposed AD are intended to prevent shall be paid by the creditor. The are in excess of $206.00 for a workweek, asymmetrical flap deflection forcing the amount garnished, including the 25 percent of the employee-obligor’s airplane into an uncommanded roll and Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31767 could cause loss of control of the Availability of NPRMs Cost Impact airplane. Any person may obtain a copy of this The FAA estimates that 240 airplanes DATES: Comments must be received on NPRM by submitting a request to the in the U.S. registry would be affected by or before August 11, 1997. FAA, Central Region, Office of the the proposed AD, that it would take ADDRESSES: Submit comments in Assistant Chief Counsel, Attention: approximately 100 workhours per triplicate to the Federal Aviation Rules Docket No. 96–CE–58–AD, Room airplane to accomplish the proposed Administration (FAA), Central Region, 1558, 601 E. 12th Street, Kansas City, installation of the doubler and 180 Office of the Assistant Chief Counsel, Missouri 64106. workhours per airplane to accomplish Attention: Rules Docket No. 96–CE–58– the proposed installation of the new rib AD, Room 1558, 601 E. 12th Street, Events Leading to the Proposed AD assembly and doubler, and that the Kansas City, Missouri 64106. Comments The FAA has received reports of three average labor rate is approximately $60 may be inspected at this location incidents on certain Fairchild SA226 an hour. Parts cost approximately $133 between 8 a.m. and 4 p.m., Monday series airplanes with fatigue cracks in for both wing rib assemblies per through Friday, holidays excepted. the wing trailing edge rib at the center airplane. The doubler can be Service information that applies to the flap hinge. Further investigation shows manufactured from local materials. proposed AD may be obtained from that the cracking is relieving the stress Based on these figures, the total cost Fairchild Aircraft Inc., P.O. Box 32486, load at the support link. This prevents impact of the proposed AD on U.S. San Antonio, Texas, 78284; telephone the flaps from extending to full operators is estimated to be $2,623,920 (210) 824–9421. This information also deflection, which could result in for the U.S. fleet or $10,933 per airplane may be examined at the Rules Docket at asymmetrical flap deflection and cause for the rib assembly and doubler the address above. the airplane to go into an uncommanded installations. The labor cost for the doubler installation is $6,000 per FOR FURTHER INFORMATION CONTACT: Mr. roll. airplane and the doubler can be Hung Viet Nguyen, Aerospace Engineer, Related Service Information FAA, Fort Worth Airplane Certification manufactured from local materials. Office, 2601 Meacham Boulevard, Fort Fairchild has issued Service Bulletin Regulatory Flexibility Determination Worth, Texas 76193–0150; telephone (SB) SB 57–016, Issued: June 25, 1981; and Analysis Revised: December 9, 1981, that (817) 222–5155; facsimile (817) 222– The Regulatory Flexibility Act of 1980 specifies procedures for inspecting the 5960. (RFA) was enacted by Congress to wing trailing edge ribs for cracks, if no SUPPLEMENTARY INFORMATION: ensure that small entities are not cracks are found, installing unnecessarily or disproportionately Comments Invited reinforcement doublers on the ribs, and burdened by government regulations. replacing ribs that have cracks with new Interested persons are invited to The RFA requires government agencies rib assemblies. participate in the making of the to determine whether rules would have proposed rule by submitting such (Note: The compliance time in this AD takes a ‘‘significant economic impact on a written data, views, or arguments as precedence over the compliance time in the substantial number of small entities,’’ they may desire. Communications Fairchild Service Bulletin referenced above.) and, in cases where the rule would have should identify the Rules Docket an economic impact, the agency making FAA’s Determination number and be submitted in triplicate to the rule is obligated to conduct a the address specified above. All After examining the circumstances Regulatory Flexibility Analysis in which communications received on or before and reviewing all available information alternatives to the rule are considered. the closing date for comments, specified related to the incidents and service FAA Order 2100.14A, Regulatory above, will be considered before taking information described above, the FAA Flexibility Criteria and Guidance, action on the proposed rule. The has determined that AD action should outlines FAA procedures and criteria for proposals contained in this notice may be taken to prevent asymmetrical flap complying with the RFA. Small entities be changed in light of the comments deflection forcing the airplane into an are defined as small businesses, small received. uncommanded roll and could cause loss not-for-profit organizations that are Comments are specifically invited on of control of the airplane. independently owned and operated, or the overall regulatory, economic, airports operated by small governmental environmental, and energy aspects of Explanation of the Provisions of the jurisdictions. A ‘‘substantial number’’ is the proposed rule. All comments Proposed AD defined as a number that is not less than submitted will be available, both before Since an unsafe condition has been 11 and that is more than one-third of the and after the closing date for comments, identified that is likely to exist or small entities subject to a proposed rule, in the Rules Docket for examination by develop in other Fairchild Models or any number of small entities judged interested persons. A report that SA226–TC, SA226–T, SA226–T(B), and to be substantial by the rulemaking summarizes each FAA-public contact SA226A–T airplanes of the same type official. A ‘‘significant economic concerned with the substance of this design, the proposed AD would require: impact’’ is defined by an annualized net proposal will be filed in the Rules compliance cost, adjusted for inflation, Docket. —Inspecting wing trailing edge ribs at which is greater than a threshold cost Commenters wishing the FAA to wing stations (WS) 98.385 and level for defined entity types. acknowledge receipt of their comments 100.635 for cracks, There are an estimated 240 Fairchild submitted in response to this notice —Replacing any cracked rib with a new SA226 series airplanes in the U.S. must submit a self-addressed, stamped rib assembly (part number (P/N) 27– registry that could be affected by the postcard on which the following 31085–1/2 or 27–31086–1/2 or FAA proposed action. For many of these statement is made: ‘‘Comments to equivalent), and airplanes, it is believed that the actions Docket No. 96–CE–58–AD.’’ The —Installing a reinforcement doubler (P/ that are proposed have already been postcard will be date stamped and N 27K36075–7 or FAA equivalent), completed. The entities affected by the returned to the commenter. whether or not cracks are found. proposed AD are largely grouped in the 31768 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

Standard Industrial Classification (SIC) approximately $3,430, which is a figure This policy simply states that reliance 4512, Operators of Aircraft for Hire, less than 70 percent of threshold value on repetitive inspections of critical areas classified as ‘‘Unscheduled.’’ FAA for significant cost. on airplanes utilized in commuter Order 2100.14A, Regulatory Flexibility The manufacturer indicates that most service carries an unnecessary safety Criteria and Guidance, defines a small of the older Fairchild Model SA226–TC risk when a design change exists that entity in this classification as one that airplanes (80 of which were listed in the could eliminate or, in certain instances, owns or operates nine or fewer aircraft. U.S. Registry records), have probably reduce the number of those critical In order to experience a significant been modified under the 1981 service inspections. The alternative to installing economic impact under Order bulletin that will be made mandatory by the doubler or the new rib assembly 2100.14A, an operator of aircraft for the AD. Fairchild Model SA226–TC would be relying on repetitive hire, unscheduled, would have to incur airplanes in service have average inspections to detect damaged wing annualized costs of $4975 (1996 dollars) cumulative usage of approximately ribs. or more. Costs are estimated to be 25,000 to 30,000 hours total TIS, with a approximately $6,000 per airplane if likely average annual usage in cargo Regulatory Impact only the doubler plates are installed, or service of 1,000 to 1,500 hours TIS, and as much as $10,933 per airplane if any an economic life of 35,000 hours total The regulations proposed herein ribs are found cracked and a rib TIS. This suggests that most Fairchild would not have substantial direct effects assembly replacement is required, in Model SA226–TC airplanes have on the States, on the relationship addition to installing the doubler plate. remaining lives of about five years (even between the national government and Annualized costs are dependent on the without prospective modifications that the States, or on the distribution of required work, the cost of capital for are likely to extend the life of the power and responsibilities among the airplane owners/operators, and the aircraft). A five-year life for an airplane various levels of government. Therefore, expected length of time that the that would be required to carry out both in accordance with Executive Order required changes are expected to be in modifications implies that annualized 12612, it is determined that this use. Since the changes are assumed to costs would be approximately $3,300. proposal would not have sufficient Thus, an owner of a single aging be permanent, the service life of the federalism implications to warrant the changes is the remaining life of the unmodified Fairchild Model SA226–TC preparation of a Federalism Assessment. airplane. The cost of capital for the airplane would not experience a airplane owners/operators is assumed to significant economic impact. For the reasons discussed above, I be 15 percent. Under these conditions, According to U.S. Registry records, certify that this action (1) is not a no owner/operator of a single airplane there are 12 entities (excluding ‘‘significant regulatory action’’ under would be subject to significant costs if Sweringen) that own 2 or more Executive Order 12866; (2) is not a the expected remaining service life of Fairchild Model SA226–TC airplanes, ‘‘significant rule’’ under DOT the aircraft were more than: accounting for a total of 49 airplanes. Regulatory Policies and Procedures (44 (a) 1.43 years (approximately 17 Because of the age of the aircraft and the FR 11034, February 26, 1979); and (3) if months), if the doubler plate installation likelihood of compliance with the promulgated, will not have a significant is required; or original service bulletin (dated 1981), economic impact, positive or negative, (b) 2.9 years (approximately 35 the FAA believes that significant on a substantial number of small entities months) if both the doubler plate impacts will not be felt by most owners under the criteria of the Regulatory installation and rib replacement is of the these airplanes. In addition, the Flexibility Act. A copy of the draft required. eight owners of two or more of these regulatory evaluation prepared for this Ownership of the new SA226 series airplanes account for less than one-tenth action has been placed in the Rules airplanes (i.e.: the airplanes other than of the affected entities. For these Docket. A copy of it may be obtained by the older Model SA226TC) is very reasons, the FAA has determined that contacting the Rules Docket at the widely dispersed. There are five the proposed AD would not have a separate entities (excluding Swearingen) significant economic impact on a location provided under the caption that show ownership of newer SA226 substantial number of small aircraft ADDRESSES. series airplanes in the U.S. Registry, operators. The FAA solicits comments List of Subjects in 14 CFR Part 39 each of which owns two SA226 series concerning the impact of this proposed airplanes. According to the AD on small entity owners of affected Air transportation, Aircraft, Aviation manufacturer, these airplanes are airplanes. Based on the possibility that safety, Safety. relatively new with typically less than this proposed AD could have a 10,000 hours total time-in-service (TIS), significant impact on a substantial The Proposed Amendment and are employed primarily as corporate number of small entities, the FAA Accordingly, pursuant to the aircraft with usage rates at conducted a regulatory flexibility authority delegated to me by the approximately 400 hours TIS per year. analysis. Administrator, the Federal Aviation Allocating a nominal remaining service A copy of the full Cost Analysis and Administration proposes to amend part life of 25,000 hours total TIS (out of a Regulatory Flexibility Determination for total service life of 35,000 hours) at the the proposed action may be examined at 39 of the Federal Aviation Regulations rate of 500 hours TIS per year, suggests the FAA, Central Region, Office of the (14 CFR part 39) as follows: remaining lives on the order of 50 years. Assistant Chief Counsel, Attention: PART 39ÐAIRWORTHINESS Even with a remaining service life of Rules Docket No. 96–CE–58–AD, Room DIRECTIVES half of this, or 25 years, annualized 1558, 601 E. 12th Street, Kansas City, costs for both doubler plate installation Missouri. and rib replacement would be on the 1. The authority citation for part 39 order of $1,715. Thus, an owner of two FAA’s Aging Commuter Aircraft Policy continues to read as follows: such airplanes would experience This action is consistent with the Authority: 49 USC 106(g), 40113, 44701. annualized costs for the proposed AD of FAA’s aging commuter airplane policy. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31769

§39.13 [Amended] a location where the requirements of this AD Administration, 222 West 7th Avenue, 2. Section 39.13 is amended by can be accomplished. Box 14, Anchorage, AK 99513–7587. adding a new airworthiness directive (c) An alternative method of compliance or adjustment of compliance time that provides The official docket may be examined (AD) to read as follows: an equivalent level of safety may be approved in the Office of the Assistant Chief Fairchild Aircraft Inc.: Docket No. 96–CE– by the Manager, Fort Worth Airplane Counsel for the Alaskan Region at the 58–AD. Certification Office, 2601 Meacham same address. Applicability: The following Models and Boulevard, Fort Worth, Texas 76193–0150. An informal docket may also be serial numbered airplanes, certificated in any The request shall be forwarded through an examined during normal business hours category. appropriate FAA Maintenance Inspector, in the Office of the Manager, System who may add comments and then send it to Management Branch, Air Traffic Models Serial Nos. the Manager, Fort Worth Airplane Certification Office. Division, at the address shown above SA226±TC ...... TC201 through TC379. Note 3: Information concerning the and on the Internet at the Alaskan SA226±T ...... T201 through T275, and existence of approved alternative methods of Region’s homepage at http:// T277 through T291. compliance with this AD, if any, may be www.alaska.faa.gov/at. SA226±T(B) ...... T(B)275, and T(B)292 obtained from the Fort Worth Airplane FOR FURTHER INFORMATION CONTACT: through T(B)378. Certification Office. Robert van Haastert, System SA226±AT ...... AT001 through AT069. (d) All persons affected by this directive Management Branch, AAL–538, Federal may obtain copies of the document referred Aviation Administration, 222 West 7th Note 1: This AD applies to each airplane to herein upon request to Fairchild Aircraft, identified in the preceding applicability Inc., P. O. Box 32486, San Antonio, Texas, Avenue, Box 14, Anchorage, AK 99513– provision, regardless of whether it has been 78284; or may examine this document at the 7587; telephone number: (907) 271– modified, altered, or repaired in the area FAA, Central Region, Office of the Assistant 5863; email: subject to the requirements of this AD. For Chief Counsel, Room 1558, 601 E. 12th [email protected]. airplanes that have been modified, altered, or Street, Kansas City, Missouri 64106. SUPPLEMENTARY INFORMATION: repaired so that the performance of the Issued in Kansas City, Missouri, on June 4, requirements of this AD is affected, the 1997. Comments Invited owner/operator must request approval for an John R. Colomy, alternative method of compliance in Interested parties are invited to accordance with paragraph (c) of this AD. Acting Manager, Small Airplane Directorate, participate in this proposed rulemaking The request should include an assessment of Aircraft Certification Service. by submitting such written data, views, the effect of the modification, alteration, or [FR Doc. 97–15174 Filed 6–10–97; 8:45 am] or arguments as they may desire. repair on the unsafe condition addressed by BILLING CODE 4910±13±U Comments that provide the factual basis this AD; and, if the unsafe condition has not supporting the views and suggestions been eliminated, the request should include presented are particularly helpful in specific proposed actions to address it. DEPARTMENT OF TRANSPORTATION Compliance: Required within the next 500 developing reasoned regulatory hours time-in-service (TIS) after the effective Federal Aviation Administration decisions on the proposal. Comments date of this AD, unless already accomplished. are specifically invited on the overall Note 2: The compliance time of this AD 14 CFR Part 71 regulatory, aeronautical, economic, takes precedence over the compliance time in environmental, and energy-related the Fairchild Service Bulletin referenced [Airspace Docket No. 97±AAL±8] aspects of the proposal. below. Proposed Revision of Class E Communications should identify the To prevent asymmetrical flap deflection Airspace; Ketchikan, AK airspace docket number and be forcing the airplane into an uncommanded submitted in triplicate to the address roll and cause loss of control of the airplane, AGENCY: Federal Aviation listed above. Commenters wishing the accomplish the following: Administration (FAA), DOT. FAA to acknowledge receipt of their (a) Inspect both wing trailing edge ribs at comments on this notice must submit the center flap actuator attach brackets, wing ACTION: Notice of proposed rulemaking. stations (WS) 98.385 and 100.635, for cracks with those comments a self-addressed, SUMMARY: This proposal will revise the in accordance with the Accomplishment stamped postcard on which the Instructions section, Part A, of Fairchild Class E airspace designated as the following statement is made: Service Bulletin (SB) 57–016, Issued: June 25, surface area for Ketchikan International ‘‘Comments to Airspace Docket No. 97– 1981; Revised: December 9, 1981. Airport, Ketchikan, AK. The Ketchikan AAL–8.’’ The postcard will be date/time (1) If no cracks are found, prior to further International Airport’s surface area is stamped and returned to the flight, install the reinforcement doubler, part currently effective 24 hours a day and commenter. All communications number (P/N) 27K36075–7 or an FAA has a mandatory communication received on or before the specified approved, in accordance with the requirement. The wording in the last closing date for comments will be Accomplishment Instructions section, Part B two sentences in the current description considered before taking action on the of Fairchild SB 57–016, Issued: June 25, apply to surface areas with less than 24 1981; Revised: December 9, 1981. proposed rule. The proposal contained (2) If any cracks are found, prior to further hour operations. These last two in this notice may be changed in light flight, replace any cracked rib with a new rib sentences will be deleted. The intended of comments received. All comments assembly (P/N 27–31085–1/2 or 27–31086–1/ effect of this proposal is to modify the submitted will be available for 2 or an FAA-approved) and install the new Ketchikan, AK, surface area description examination in the System Management reinforcement doubler (P/N 27K36075–7 or to indicate a continuous, 24 hour Branch, Air Traffic Division, Federal an FAA equivalent) in accordance with the operation. Aviation Administration, 222 West 7th Accomplishment Instructions section, Part B DATES: Comments must be received on Avenue, Box 14, Anchorage, AK, both and Part C of Fairchild SB 57–016, Issued: or before July 28, 1997. June 25, 1981; Revised: December 9, 1981. before and after the closing date for (b) Special flight permits may be issued in ADDRESSES: Send comments on the comments. A report summarizing each accordance with sections 21.197 and 21.199 proposal in triplicate to: Manager, substantive public contact with FAA of the Federal Aviation Regulations (14 CFR System Management Branch, AAL–530, personnel concerned with this 21.197 and 21.199) to operate the airplane to Docket No. 97–AAL–8, Federal Aviation rulemaking will be filed in the docket. 31770 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

Availability of NPRM’s under the criteria of the Regulatory SUMMARY: This action establishes Class Flexibility Act. E airspace at Huslia, AK. The Any person may obtain a copy of this development of Very High Frequency List of Subjects in 14 CFR Part 71 Notice of Proposed Rulemaking (NPRM) (VHF) omni-directional radio range by submitting a request to the System Airspace, Incorporation by reference, (VOR) and VOR/Distance Measuring Management Branch, AAL–530, Federal Navigation (air). Equipment (DME) instrument Aviation Administration, 222 West 7th The Proposed Amendment approaches to RWY 3 and RWY 21 have Avenue, Box 14, Anchorage, AK 99513– made this action necessary. This action 7587. Communications must identify In consideration of the foregoing, the will change the airport status from the notice number of this NPRM. Federal Aviation Administration Visual Flight Rules (VFR) to Instrument Persons interested in being placed on a proposes to amend 14 CFR part 71 as Flight Rules (IFR). The area would be mailing list for future NPRM’s should follows: depicted on appropriate aeronautical also request a copy of Advisory Circular charts thereby enabling pilots to PART 71Ð[AMENDED] No. 11–2A which describes the circumnavigate the area or otherwise application procedure. 1. The authority citation for 14 CFR comply with IFR procedures. The The Proposal Part 71 continues to read as follows: intended effect of this proposal is to Authority: 49 U.S.C. 40103, 40113, 40120; provide adequate controlled airspace for The FAA is considering an E.O. 10854, 24 FR 9565, 3 CFR, 1959–1963 IFR operations, segregating aircraft amendment to part 71 of the Federal Comp., p. 389; 49 U.S.C. 106(g); 14 CFR using instrument conditions from other Aviation Regulations (14 CFR part 71) to 11.69. aircraft operating in visual weather revise the Class E airspace designated as conditions, at Huslia Airport, AK. § 71.1 [Amended] the surface area for Ketchikan DATES: Comments must be received on International Airport, Ketchikan, AK. 2. The incorporation by reference in or before July 28, 1997. 14 CFR 71.1 of Federal Aviation The Ketchikan International Airport’s ADDRESSES: Send comments on the Administration Order 7400.9D, Airspace surface area is currently effective 24 proposal in triplicate to: Manager, Designations and Reporting Points, hours a day and has mandatory System Management Branch, AAL–530, dated September 4, 1996, and effective communication requirements. The Docket No. 97–AAL–7, Federal Aviation September 16, 1996, is amended as wording in the last two sentences of the Administration, 222 West 7th Avenue, follows: current description are for surface areas Box 14, Anchorage, AK 99513–7587. with less than 24 hour operations. These * * * * * The official docket may be examined last two sentences will be deleted. The Paragraph 6002 Class E airspace areas in the Office of the Assistant Chief coordinates for this airspace docket are listed below are designated as a surface area Counsel for the Alaskan Region at the based on North American Datum 83. for an airport. same address. The Class E airspace areas designated as * * * * * An informal docket may also be surface areas are published in paragraph examined during normal business hours 6002 of FAA Order 7400.9D, Airspace AAL AK E2 Ketchikan, AK in the Office of the Manager, System Designations and Reporting Points, Ketchikan International Airport, Ketchikan, Management Branch, Air Traffic dated September 4, 1996, and effective AK Division, at the address shown above ° ′ ′′ ° ′ ′′ September 16, 1996, which is (lat. 55 21 20 N, long. 131 42 49 W) and on the Internet at the Alaskan incorporated by reference in 14 CFR Ketchikan Localizer Region’s homepage at http:// (lat. 55°20′ 51′′ N, long. 131°42′ 00′′ W) 71.1 (61 FR 48403; September 13, 1996). www.alaska.faa.gov/at. The intended effect of this proposal is Within a 3-mile radius of the Ketchikan International Airport and within 1 mile each FOR FURTHER INFORMATION CONTACT: to modify the Ketchikan, AK, surface side of the Ketchikan localizer northwest/ Robert van Haastert, System area description to indicate continuous, southeast courses extending from the 3-mile Management Branch, AAL–538, Federal 24 hour operation. The Class E airspace radius to 4.6 miles northwest and 4.1 miles Aviation Administration, 222 West 7th designation listed in this document southeast of the airport. Avenue, Box 14, Anchorage, AK 99513– would be published subsequently in the * * * * * 7587; telephone number: (907) 271– Order. Issued in Anchorage, AK, on June 3, 1997. 5863; email: The FAA has determined that these Willis C. Nelson, [email protected]. proposed regulations only involve an Manager, Air Traffic Division, Alaskan SUPPLEMENTARY INFORMATION: established body of technical Region. regulations for which frequent and [FR Doc. 97–15309 Filed 6–10–97; 8:45 am] Comments Invited routine amendments are necessary to BILLING CODE 4910±13±P Interested parties are invited to keep them operationally current. It, participate in this proposed rulemaking therefore—(1) is not a ‘‘significant by submitting such written data, views, regulatory action’’ under Executive DEPARTMENT OF TRANSPORTATION or arguments as they may desire. Order 12866; (2) is not a ‘‘significant Comments that provide the factual basis rule’’ under DOT Regulatory Policies Federal Aviation Administration supporting the views and suggestions and Procedures (44 FR 11034; February presented are particularly helpful in 14 CFR Part 71 26, 1979); and (3) does not warrant developing reasoned regulatory preparation of a regulatory evaluation as [Airspace Docket No. 97±AAL±7] decisions on the proposal. Comments the anticipated impact is so minimal. are specifically invited on the overall Since this is a routine matter that will Proposed Establishment of Class E regulatory, aeronautical, economic, only affect air traffic procedures and air Airspace; Huslia, AK environmental, and energy-related navigation, it is certified that this rule, AGENCY: Federal Aviation aspects of the proposal. when promulgated, will not have a Administration (FAA), DOT. Communications should identify the significant economic impact on a airspace docket number and be ACTION: Notice of proposed rulemaking. substantial number of small entities submitted in triplicate to the address Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31771 listed above. Commenters wishing the operations, segregating aircraft using Issued in Anchorage, AK, on June 3, 1997. FAA to acknowledge receipt of their instrument conditions from other Willis C. Nelson, comments on this notice must submit aircraft operating in visual weather Manager, Air Traffic Division, Alaskan with those comments a self-addressed, conditions, at Huslia Airport, AK. The Region. stamped postcard on which the Class E airspace designation listed in [FR Doc. 97–15308 Filed 6–10–97; 8:45 am] following statement is made: this document would be published BILLING CODE 4910±13±P ‘‘Comments to Airspace Docket No. 97– subsequently in the Order. AAL–7.’’ The postcard will be date/time The FAA has determined that these stamped and returned to the proposed regulations only involve an DEPARTMENT OF HEALTH AND commenter. All communications established body of technical HUMAN SERVICES received on or before the specified regulations for which frequent and closing date for comments will be routine amendments are necessary to Food and Drug Administration considered before taking action on the keep them operationally current. It, proposed rule. The proposal contained therefore—(1) is not a ‘‘significant 21 CFR Part 878 in this notice may be changed in light regulatory action’’ under Executive [Docket No. 97N±0199] of comments received. All comments Order 12866; (2) is not a ‘‘significant submitted will be available for rule’’ under DOT Regulatory Policies General and Plastic Surgery Devices: examination in the System Management and Procedures (44 FR 11034; February Reclassification of the Tweezer-Type Branch, Air Traffic Division, Federal 26, 1979); and (3) does not warrant Epilator Aviation Administration, 222 West 7th preparation of a regulatory evaluation as Avenue, Box 14, Anchorage, AK, both the anticipated impact is so minimal. AGENCY: Food and Drug Administration, before and after the closing date for Since this is a routine matter that will HHS. comments. A report summarizing each only affect air traffic procedures and air ACTION: Proposed rule. substantive public contact with FAA navigation, it is certified that this rule, personnel concerned with this when promulgated, will not have a SUMMARY: The Food and Drug rulemaking will be filed in the docket. significant economic impact on a Administration (FDA) is proposing to substantial number of small entities reclassify the tweezer-type epilator from Availability of NPRM’s under the criteria of the Regulatory class III to class I when intended to Any person may obtain a copy of this Flexibility Act. remove hair. FDA also proposes to Notice of Proposed Rulemaking (NPRM) List of Subjects in 14 CFR Part 71 exempt this device from the premarket by submitting a request to the System notification requirements. This Management Branch, AAL–530, Federal Airspace, Incorporation by reference, reclassification is being proposed on the Aviation Administration, 222 West 7th Navigation (air). Secretary of Health and Human Avenue, Box 14, Anchorage, AK 99513– The Proposed Amendment Services’ own initiative based on new 7587. Communications must identify information. This action is being taken the notice number of this NPRM. In consideration of the foregoing, the under the Federal Food, Drug, and Persons interested in being placed on a Federal Aviation Administration Cosmetic Act (the act), as amended by mailing list for future NPRM’s should proposes to amend 14 CFR part 71 as the Medical Device Amendments of also request a copy of Advisory Circular follows: 1976 (the 1976 amendments) and the No. 11–2A which describes the PART 71Ð[AMENDED] Safe Medical Devices Act of 1990 (the application procedure. SMDA). The Proposal 1. The authority citation for 14 CFR DATES: Written comments by September Part 71 continues to read as follows: The FAA is considering an 9, 1997. FDA proposes that any final amendment to part 71 of the Federal Authority: 49 U.S.C. 40103, 40113, 40120; regulation based on this proposal Aviation Regulations (14 CFR part 71) to E.O. 10854, 24 FR 9565, 3 CFR, 1959–1963 become effective 30 days after date of Comp., p. 389; 49 U.S.C. 106(g); 14 CFR publication in the Federal Register. establish Class E airspace to 11.69. accommodate aircraft executing the ADDRESSES: Submit written comments VOR instrument approach procedures at § 71.1 [Amended] to the Dockets Management Branch Huslia, AK. Controlled airspace 2. The incorporation by reference in (HFA–305), Food and Drug extending upward from 700 to 1200 feet 14 CFR 71.1 of Federal Aviation Administration, 12420 Parklawn Dr., above the ground (AGL) is needed to Administration Order 7400.9D, Airspace rm. 1–23, Rockville, MD 20857. contain aircraft executing the approach. Designations and Reporting Points, FOR FURTHER INFORMATION CONTACT: This action will change the airport dated September 4, 1996, and effective Stephen P. Rhodes, Center for Devices status from Visual Flight Rules (VFR) to September 16, 1996, is amended as and Radiological Health (HFZ–410), Instrument Flight Rules (IFR). The follows: Food and Drug Administration, 9200 coordinates for this airspace docket are * * * * * Corporate Blvd., Rockville, MD 20850, based on North American Datum 83. 301–594–3090. The Class E airspace areas designated as Paragraph 6005 Class E airspace extending upward from 700 feet or more above the SUPPLEMENTARY INFORMATION: 700/1200 foot transition areas are surface of the earth. published in paragraph 6005 of FAA I. Regulatory Authorities * * * * * Order 7400.9D, Airspace Designations The act, as amended by the 1976 and Reporting Points, dated September AAL AK E5 Huslia, AK amendments (Pub. L. 94–295) and the 4, 1996, and effective September 16, Huslia Airport, AK SMDA (Pub. L. 101–629), established a 1996, which is incorporated by (Lat. 65° 41′ 50′′ N, long. 156° 23′ 21′′ W) comprehensive system for the regulation reference in 14 CFR 71.1 (61 FR 48403; That airspace extending upward from 700 of medical devices intended for human September 13, 1996). The intended feet above the surface within a 6.5-mile use. Section 513 of the act (21 U.S.C. effect of this proposal is to provide radius of the Huslia Airport. 360c) established three categories adequate controlled airspace for IFR * * * * * (classes) of devices, depending on the 31772 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules regulatory controls needed to provide and Welfare, 587 F.2d 1173, 1174 n.1 into class I or class II or require the reasonable assurance of their safety and (D.C. Cir. 1978); Upjohn v. Finch, 422 device to remain in class III and effectiveness. The three categories of F.2d 944 (6th Cir. 1970); Bell v. establish a schedule for the issuance of devices are class I (general controls), Goddard, 366 F.2d 177 (7th Cir. 1966).) a rule requiring the submission of class II (special controls), and class III Reevaluation of the data previously PMA’s for those devices remaining in (premarket approval). before the agency is an appropriate basis class III. Under section 513 of the act, devices for subsequent regulatory action where In the Federal Register of May 6, 1994 that were in commercial distribution the reevaluation is made in light of (59 FR 23731), FDA announced the before May 28, 1976 (the date of changes in ‘‘medical science.’’ (See availability of a document setting forth enactment of the amendments), Upjohn v. Finch, supra, 422 F.2d at its strategy for implementing the generally referred to as preamendments 951.) However, regardless of whether provisions of SMDA that require FDA to devices, are classified after FDA has: (1) data before the agency are past or new review the classification of Received a recommendation from a data, the ‘‘new information’’ on which preamendments class III. Under this device classification panel (an FDA any reclassification is based is required plan, the agency divided preamendment advisory committee); (2) published the to consist of ‘‘valid scientific evidence,’’ class III devices into the following three panel’s recommendation for comment, as defined in section 513(a)(3) of the act groups: Group 1 devices are devices that along with a proposed regulation and 21 CFR 860.7(c)(2). FDA relies upon FDA believes raise significant questions classifying the device; and (3) published ‘‘valid scientific evidence’’ in the of safety and/or effectiveness, but are no a final regulation classifying the device. classification process to determine the longer used or are in very limited use; FDA has classified most level of regulation for devices. For the Group 2 devices are devices that FDA preamendments devices under these purpose of reclassification, the valid believes have a high potential for being procedures. scientific evidence upon which the reclassified; and Group 3 devices are Devices that were not in commercial agency relies must be publicly available. devices that FDA believes are currently distribution prior to May 28, 1976, Publicly available information excludes in commercial distribution and are not generally referred to as post amendment trade secret and/or confidential likely candidates for reclassification. devices, are classified automatically by commercial information, e.g., the FDA also announced its intention to call statute (section 513(f) of the act) into contents of a pending PMA (see section for submission of PMA’s for the 15 class III without any FDA rulemaking 520(c) of the act (21 U.S.C. 360j(c)). highest priority devices in Group 3, and process. Those devices remain in class Section 513(d)(2)(A) of the act for all Group 1 devices. The agency also III and require premarket approval, authorizes FDA to exempt, by announced its intention to issue an unless and until FDA issues an order regulation, a generic type of class I order under section 515(i) of the act for finding the device to be substantially device from, among other things, the the remaining Group 3 devices and for equivalent, under section 513(i) of the requirement of premarket notification in all Group 2 devices. act, to a predicate device that does not section 510(k) of the act after stating the In the Federal Register of August 14, require premarket approval. The agency reasons for making such requirement 1995 (60 FR 41984 and 41986), FDA determines whether new devices are inapplicable. Such exemption permits published two orders for certain class III substantially equivalent to previously manufacturers to introduce into devices requiring the submission of offered devices by means of premarket commercial distribution generic types of safety and effectiveness information in notification procedures in section 510(k) devices without first submitting a accordance with the Preamendments of the act (21 U.S.C. 360(k)) and 21 CFR premarket notification to FDA. If FDA Class III Strategy document for part 807 of the regulations. has concerns about certain types of implementing section 515(i) of the act. A preamendments device that has changes to a particular class I device, The orders describe in detail the format been classified into class III may be the agency may grant a limited for submitting the type of information marketed, by means of premarket exemption from premarket notification required by section 515(i) of the act so notification procedures, without for that generic device. that the information submitted would submission of a premarket approval In 1990, the SMDA added section clearly support either reclassification of application (PMA) until FDA issues a 515(i) to the act. This section of the act the device into class I or II or retention final regulation under section 515(b) of requires FDA to issue an order to of the device in class III. The orders also the act (21 U.S.C. 360e(b)) requiring manufacturers of preamendment class scheduled the required submissions in premarket approval. III devices and substantially equivalent groups of nine devices at 6-month Reclassification of classified postamendments devices for which no intervals beginning with August 14, preamendments devices is governed by final regulation requiring the 1996. The devices proposed in this section 513(e) of the act. This section submission of PMA’s has been issued. regulation were included in the August provides that FDA may, by rulemaking, This order requires such manufacturers 14, 1995, Docket No. 94N–0417 Order reclassify a device (in a proceeding that to submit to the agency a summary of, on Group 2 devices. parallels the initial classification and a citation to, any information proceeding) based upon ‘‘new known or otherwise available to them II. Regulatory History of the Device information.’’ The reclassification can respecting such devices, including In the Federal Register of January 19, be initiated by FDA or by the petition adverse safety and effectiveness 1982 (47 FR 2810), FDA published a of an interested person. The term ‘‘new information that has not been submitted proposed rule to classify the tweezer- information,’’ as used in section 513(e) under section 519 of the act (21 U.S.C. type epilator into class III. The preamble of the act, includes information 360i). Section 519 of the act requires included the classification developed as a result of a reevaluation manufacturers, importers, distributors, recommendation of the General and of the data before the agency when the and device user facilities to submit Plastic Surgery Devices Classification device was originally classified, as well adverse event reports of certain device- Panel (the panel). The panel’s as information not presented, not related events and reports of certain recommendation included a summary of available, or not developed at that time. corrective actions taken. Section 515(i) the reasons why the device should be (See, e.g., Holland Rantos v. United of the act also directs FDA to either subject to premarket approval and States Department of Health, Education, revise the classification of the device identified certain risks to health Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31773 presented by the device, including: (1) V. Risks to Health notification procedures in 1996 (61 FR Cataract formation: Nonionization When the tweezer-type epilator was 44013, August 27, 1996). FDA believes radiation emitted from the device may proposed for classification into class III proposing reclassification of the cause heating of the lens of the eye in 1982, the panel identified certain tweezer-type epilator into class I leading to cataract formation (opacity of risks to health that they believed use of provides consistency in the the lens of the eye); (2) pacemaker the device presented. The risks to health classification of the device. interference: Patients with pacemakers identified were: (1) Cataract formation: may experience arrhythmias from the VII. Summary of Data Upon Which the Nonionization radiation emitted from Reclassification is Based use of the device; and (3) nonionizing the device may cause heating of the lens radiation exposure: The 27 megahertz of the eye leading to cataract formation A. Previously Identified Risks to Health (MHz) electromagnetic radiation emitted (opacity of the lens of the eye); (2) No reports of cataract formation, from the tip of the tweezer may be pacemaker interference: Patients with pacemaker interference, or any other potentially hazardous to organs other pacemakers may experience adverse nonionizing radiation exposure than the eye. In the Federal Register of June 24, arrhythmias from the use of the device; effects associated with the use of the 1988 (53 FR 23856), FDA published a and (3) nonionizing radiation exposure: tweezer-type epilator were found in the final rule classifying the tweezer-type The 27 MHz electromagnetic radiation literature, in FDA’s voluntary Device epilator into class III (21 CFR 878.5360). emitted from the tip of the tweezer may Experience Network (DEN) and In the Federal Register of May 6, 1994 be potentially hazardous (47 FR 2810). Mandatory Device Reporting (MDR) data (59 FR 23731), FDA categorized the No other risks to health were identified bases, or in the 515(i) submissions (Refs. tweezer-type epilator as a Group 2 by FDA when the device was classified 1 through 4). device, which FDA believes has a high into class III in 1988 (53 FR 23856). One of the 515(i) submissions (Ref. 4) potential for being reclassified. The One of the 515(i) submissions did address the possible risks to health agency also announced its intent to identified an additional potential risk to of cataract formation and pacemaker issue an order under section 515(i) of health, burning of the skin, associated interference. This submitter had its the act for Group 2 devices. with the use of electronic tweezer-type device tested for radio frequency and In the Federal Register of August 14, epilators (Ref. 2). If the tweezers touch microwave radiation emission. There 1995 (60 FR 41986), FDA published an the skin accidentally during the was no detectable emission from the order requiring manufacturers of procedure, the skin is instantly burned device in the 10–300 MHz range. Radio tweezer-type epilators to submit safety and the burned tissue is pulled away on frequency tweezer-type epilators utilize and effectiveness information in the tip of the tweezer. Another 515(i) 13.56, 27.12 or 40.68 MHz to remove accordance with the Preamendments submission stated that heat buildup hair. Thus, the probability of the use of Class III Strategy document for during the use of galvanic tweezer-type radio frequency tweezer-type epilators implementing section 515(i) of the act. epilators could potentially result in leading to cataract formation and Between August 8, 1996, and September smoking, sizzling, and even a mild causing pacemaker interference is low 24, 1996, four summaries of safety and shock (Ref. 3). during the proper use of the device. effectiveness information were VI. Summary of the Reasons for the B. Burning of the Skin and Electrical submitted to the agency (Refs. 1 through Reclassification Shock 4). These summaries recommended that the tweezer-type epilator be reclassified In accordance with section 513(e) of Although one 515(i) submission into class I or class II and provided the act and 21 CFR 860.130, based on identified burning of the skin as a information to assist FDA in new information with respect to the potential risk to health (Ref. 2) and reclassifying the device. device, FDA, on its own initiative, is another 515(i) submission identified proposing to reclassify the tweezer-type electrical shock as another potential risk III. Device Description epilator from class III to class I when to health (Ref. 3), no reports of burning FDA is proposing the following intended to remove hair because general of the skin or electrical shock associated device description based on the controls would provide reasonable with use of the device were found in the agency’s review: The tweezer-type assurance of safety and effectiveness. literature or in the agency’s DEN or epilator is a device intended to remove FDA is also proposing to exempt the MDR data bases. device from premarket notification hair by destroying the dermal papilla of C. Adverse Experience Reports a hair. The energy provided at the tip of procedures because: (1) There is no the tweezer used to remove hair may be history of significant risks to health; (2) The DEN data base included some radio frequency, galvanic (direct the characteristics of the device reports of lack of clinical effectiveness current), or a combination of radio necessary for safety and effectiveness and misleading claims of permanent frequency and galvanic energy. This are established; (3) any anticipated hair removal associated with use of the new device description reflects the changes that could affect safety and device. There also was one report of entire array of energy sources of effectiveness of the device could be pain, infection, and inadequate tweezer-type epilators on the market. readily detected and will not likely directions; one report of scarring; and result in a change of classification of the two reports of ingrown/infected hairs. IV. Proposed Reclassification device; and (4) there is no significant There were no reports of these or any FDA is proposing that the tweezer- history of false and misleading claims other adverse effects associated with the type epilator intended to remove hair associated with the use of the device. use of the device found in the MDR data should be reclassified from class III to Another reason for proposing base. There also were no reports of class I. FDA believes that class I would reclassification of the tweezer-type adverse effects in the records of the provide a reasonable assurance of safety epilator into class I is that the needle Consumer Product Safety Commission. and effectiveness of the device for its epilator also intended to remove hair by Based on the new information intended use. FDA is also proposing destroying the dermal papilla of hair submitted to it, and the agency’s own that the device be exempt from was reclassified from class II into class review of the literature and its DEN and premarket notification requirements. I and exempted from premarket MDR data bases, FDA has concluded 31774 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules that the risks to health identified when and 19.1 percent fewer in the radio 3. 515(i) Submission submitted by The the device was classified into class III frequency disabled tweezer-type Helene Edgar Corp., received September 10, and the new potential identified risks to epilator group). After 3 months of 1996. health do not appear to be risks to followup with no treatment, the radio 4. 515(i) Submission submitted by health when the device is used Removatron International Corp., received frequency treated group had 46.3 September 24, 1996. properly. FDA now believes that general percent fewer hairs indicating that hair 5. Chernosky, M. E., ‘‘Permanent Removal controls are sufficient to reasonably loss persisted 3 months after the last of Superfluous Hair,’’ Texas Medicine, ensure that the device is safe and treatment. The radio frequency disabled 67:72–78, 1971. effective for its intended use. FDA also tweezer-type epilator group had the 6. Hobbs, E. R., J. L. Ratz, and B. James, believes that the device should be same number of hairs as before ‘‘Electrosurgical Epilation,’’ Dermatologic exempted from the premarket treatment indicating there was no Clinic, 5:437–444, 1987. notification procedures because agency overall hair loss after the last treatment. 7. McKinstry, C. T., M. Inaba, and J. N. review of premarket notification Anthony, ‘‘Epilation by Electrocoagulation: In the second unpublished study (Ref. Facts that Result in Regrowth of Hair,’’ submissions will not increase the safety 3), use of a radio frequency tweezer-type and effectiveness of the device. Journal of Dermatologic Surgery and epilator weekly for 4 months was Oncology, 5:407–411, 1979. D. Benefits of the Device compared to use ‘‘at an earlier time’’ of 8. Verdich, J., ‘‘A Critical Evaluation of a Method for Treatment of Facial The psychological stress of a galvanic epilator in seven subjects for 9 weeks. The radio frequency tweezer- Hypertrichosis in Women,’’ Dermatologica, embarrassingly excessive hair growth is 168:87–89, 1984. well documented, and the elimination type epilator subjects were examined (hair counts) at 15 and 30 days after the 9. Wagner, R. F., Jr., J. M. Tomich, and D. of unwanted hair through destruction of J. Grands, ‘‘Electrolysis and Thermolysis for the papilla of the hair follicle is fairly last treatment given at 4 months. Hair Permanent Hair Removal,’’ Journal of the well characterized (Refs. 5 through 9). loss was reported to be 79 percent in the American Academy of Dermatology, 12:441– FDA has concluded from the literature radio frequency epilator group and 449, 1985. about 60 percent in the galvanic epilator and its knowledge of the device that the IX. Environmental Impact tweezer-type epilator can remove hair group. Because the treatment schedules and that the performance parameters of of the two groups are not identical, it is The agency has determined under 21 the device in regards to safety are also not possible to draw a definitive CFR 25.24(e)(2) that this action is of a well documented and understood. The conclusion from this report other than it type that does not individually or device has had a reasonable record of is suggestive of sustained hair removal. cumulatively have a significant effect on safety for over 20 years of use. Use of the noninvasive tweezer-type the human environment. Therefore, There is little published information epilator eliminates some risks to health neither an environmental assessment in regards to the claims of hair removal associated with the use of the needle- nor an environmental impact statement by tweezer-type epilators and only one type epilator. The needle-type epilator, is required. published clinical study (Ref. 8) an invasive device, removes unwanted X. Analysis of Impacts specifically investigating the use of hair by inserting a wire needle into the tweezer-type epilators. In this study, hair follicle to destroy the dermal FDA has examined the impacts of the eight subjects were treated with a papilla of a hair. Serious adverse device proposed rule under Executive Order tweezer-type epilator. The same area of events associated with the use of 12866, and the Regulatory Flexibility skin area on each subject was retreated needle-type epilators are also rare, but Act (5 U.S.C. 601–612) (as amended by with the device 5 to 7 months later and they include reports of temporary pain, subtitle D of the Small Business the epilated hairs were counted. In three edema, erythema, scarring, infection, Regulatory Fairness Act of 1996 (Pub. L. of the subjects, fewer hairs were and posttreatment hyper- and 104–121)), and the Unfunded Mandates counted, and more hairs were counted hypopigmentation; a case of diphtheroid Reform Act of 1995 (Pub. L. 104–4). in five subjects. The differences in hair endocarditis; and spreading of flat warts Executive Order 12866 directs agencies counts were not significant in any of the (Refs. 6 and 9). to assess all costs and benefits of available regulatory alternatives and, subjects. FDA now believes, based on publicly Two of the 515(i) submissions (Refs. when regulation is necessary, to select available information, that the tweezer- 3 and 4) provided unpublished clinical regulatory approaches that maximize type epilator can be regulated as a class information supporting the effectiveness net benefits (including potential I device (general controls) to reasonably of tweezer-type epilators for hair economic, environmental, public health assure the device’s safety and removal. Although the numbers of and safety, and other advantages; effectiveness. FDA further believes that subjects in both studies are low, these distributive impacts; and equity). The agency review of premarket notification study results are suggestive of clinical agency believes that this proposed rule submissions for the device will not effectiveness. In one study (Ref. 4), 12 is consistent with the regulatory enhance public health. subjects with 14 epilation sites were philosophy and principles identified in treated monthly for 6 months with both VIII. References the Executive Order. In addition, the a radio frequency tweezer-type epilator proposed rule is not a significant and the same tweezer-type epilator with The following references have been regulatory action as defined by the the radio frequency energy source placed on display in the Dockets Executive Order and so is not subject to disabled. Use of the radio frequency Management Branch (address above) review under the Executive Order. disabled device was considered and may be seen by interested persons The Regulatory Flexibility Act equivalent to manual plucking. The between 9 a.m. and 4 p.m., Monday requires agencies to analyze regulatory epilated hairs were counted at 6 months through Friday: options that would minimize any 1. 515(i) Submission submitted by Burke and at 9 months after 3 months of no Associates International, Inc., received significant impact of a rule on small treatment. After 6-month treatment, August 8, 1996. entities. Reclassification of this device there were fewer hairs in both groups 2. 515(i) Submission submitted by Lucy from class III to class I will relieve all (52.3 percent fewer in the radio Peters, International, Ltd., received manufacturers of the device of the cost frequency tweezer-type epilator group September 5, 1996. of complying with the premarket Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31775 approval requirements in section 515 of Dated: May 30, 1997. Campbell, Air, Radiation, and Toxics the act. Because reclassification will Joseph A. Levitt, Division, Mailcode 3AT22, U.S. reduce regulatory costs with respect to Deputy Director for Regulations Policy, Center Environmental Protection Agency, this device, it will impose no significant for Devices and Radiological Health. Region III, 841 Chestnut Building, economic impact on any small entities, [FR Doc. 97–15312 Filed 6–10–97; 8:45 am] Philadelphia, Pennsylvania 19107. and it may permit small potential BILLING CODE 4160±01±F Copies of the documents relevant to this competitors to enter the marketplace by action are available for public lowering their costs. The Commissioner inspection during normal business of Food and Drugs therefore certifies ENVIRONMENTAL PROTECTION hours at the Air, Radiation, and Toxics that this proposed rule, if issued, will AGENCY Division, U.S. Environmental Protection not have a significant economic impact Agency, Region III, 841 Chestnut on a substantial number of small 40 CFR Part 52 Building, Philadelphia, Pennsylvania entities. In addition, this proposed rule 19107; and the Pennsylvania [SIPTRAX No. PA4057b; FRL±5835±5] will not impose costs of $100 million or Department of Environmental more on either the private sector or Approval and Promulgation of Air Protection, Bureau of Air Quality State, local, and tribal governments in Quality Implementation Plans; Control, P.O. Box 8468, 400 Market the aggregate, and therefore a summary Pennsylvania; Approval of VOC and Street, Harrisburg, Pennsylvania 17105. statement of analysis under section NOx RACT Determinations for FOR FURTHER INFORMATION CONTACT: 202(a) of the Unfunded Mandates Individual Sources Ruth E. Knapp, (215) 566–2191, at the Reform Act of 1995 is not required. EPA Region III office or via e-mail at AGENCY: Environmental Protection XI. Comments knapp.ruth@epamail. epa.gov. While Agency (EPA). information may be requested via e- Interested persons may, on or before ACTION: Proposed rule. mail, comments must be submitted in September 9, 1997, submit to the writing to the above Region III address. Dockets Management Branch (address SUMMARY: EPA proposes to approve the SUPPLEMENTARY INFORMATION: See the above) written comments regarding this State Implementation Plan (SIP) information pertaining to this action, proposal. Two copies of any comments revision submitted by the VOC and NOX RACT determinations for are to be submitted, except that Commonwealth of Pennsylvania for the individual sources located in individuals may submit one copy. purpose of establishing volatile organic Pennsylvania, provided in the Direct Comments are to be identified with the compound (VOC) and nitrogen oxides Final action of the same title which is docket number found in brackets in the (NOx) reasonably available control located in the Rules and Regulations heading of this document. Received technology (RACT) for five major Section of this Federal Register. comments may be seen in the office sources located in Pennsylvania. In the above between 9 a.m. and 4 p.m., Final Rules section of this Federal Authority: 42 U.S.C. 7401–7671q. Monday through Friday. Register, EPA is approving the Dated: May 21, 1997. Commonwealth’s SIP revision as a W.T. Wisniewski, List of Subjects in 21 CFR Part 878 direct final rule without prior proposal Acting Regional Administrator, Region III. Medical devices. because the Agency views this as a [FR Doc. 97–15096 Filed 6–10–97; 8:45 am] Therefore, under the Federal Food, noncontroversial SIP revision and BILLING CODE 6560±50±P Drug, and Cosmetic Act and under anticipates no adverse comments. A authority delegated to the Commissioner detailed rationale for the approval is set of Food and Drugs, it is proposed that forth in the direct final rule and the ENVIRONMENTAL PROTECTION 21 CFR part 878 be amended as follows: accompanying technical support AGENCY document. If no adverse comments are PART 878ÐGENERAL AND PLASTIC received in response to this proposed 40 CFR Part 52 SURGERY DEVICES rule, no further activity is contemplated [AZ 68±0011; FRL±5835±7] 1. The authority citation for 21 CFR in relation to this rule. If EPA receives part 878 continues to read as follows: adverse comments, the direct final rule Approval and Promulgation of State Authority: Secs. 501, 510, 513, 515, 520, will be withdrawn and all public Implementation Plans; ArizonaÐ 522, 701 of the Federal Food, Drug, and comments received will be addressed in Maricopa County Ozone Cosmetic Act (21 U.S.C. 351, 360, 360c, 360e, a subsequent final rule based on this Nonattainment Area 360j, 360l, 371). proposed rule. EPA will not institute a second comment period on this action. AGENCY: Environmental Protection 2. Section 878.5360 is revised to read Agency (EPA). as follows: Any parties interested in commenting on this action should do so at this time. ACTION: Proposed rule. § 878.5360 Tweezer-type epilator. If adverse comments are received that SUMMARY: EPA is proposing to approve do not pertain to all documents subject (a) Identification. The tweezer-type a State Implementation Plan (SIP) to this rulemaking action, those epilator is a device intended to remove revision submitted by the State of documents not affected by the adverse hair by destroying the dermal papilla of Arizona on April 29, 1997, establishing comments will be finalized in the a hair. The energy provided at the tip of a summertime gasoline Reid Vapor manner described here. Only those the tweezer used to remove hair may be Pressure (RVP) limit of 7.0 pounds per documents that receive adverse radio frequency, galvanic (direct square inch (psi) for gasoline distributed comments will be withdrawn in the current), or a combination of radio in the Maricopa (Phoenix) ozone manner described here. frequency and galvanic energy. nonattainment area. Arizona has (b) Classification. Class I (General DATES: Comments must be received in lowered the summertime RVP limit for Controls). The device is exempt from writing by July 11, 1997. this area to reduce emissions of volatile premarket notification procedures in ADDRESSES: Written comments on this organic compounds (VOC) in subpart E of part 807 of this chapter. action should be addressed to David accordance with the requirements of the 31776 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

Clean Air Act, as amended in 1990 requirement to limit RVP gasoline to 7.0 Leader, Mailcode 3AT22, U.S. (CAA). Arizona’s fuel requirement is not psi). This revision was submitted by the Environmental Protection Agency, preempted by federal fuels requirements ADEQ to EPA on April 29, 1997. Region III, 841 Chestnut Building, because EPA is proposing to find that On May 8, 1997, EPA found the April Philadelphia, Pennsylvania 19107. the control measure is necessary for the 29, 1997, SIP revision conformed to Copies of the documents relevant to this Maricopa area to attain the national EPA’s completeness criteria in 40 CFR action are available for public ambient air quality standards (NAAQS) Part 51, Appendix V and the Federal inspection during normal business for ozone and is proposing to approve Register on August 26, 1991 (56 FR hours at the Air, Radiation, and Toxics the measure into the Arizona SIP. 42216). For further information, please Division, U.S. Environmental Protection In the final rules section of this see the information provided in the Agency, Region III, 841 Chestnut Federal Register, the EPA is approving Direct Final action that is located in the Building, Philadelphia, Pennsylvania the State’s SIP revision as a direct final Rules Section of this Federal Register. 19107; and the Pennsylvania rule without prior proposal because the Authority: 42 U.S.C. 7401–7671q. Department of Environmental Agency views this as a noncontroversial Dated: May 28, 1997. Protection, Bureau of Air Quality, P.O. revision and anticipates no adverse Box 8468, 400 Market Street, Harrisburg, Felicia Marcus, comments. A detailed rationale for this Pennsylvania 17105. Regional Administrator. approval is set forth in the direct final FOR FURTHER INFORMATION CONTACT: rule. If no adverse comments are [FR Doc. 97–15094 Filed 6–10–97; 8:45 am] Janice M. Lewis, (215) 566–2185, at EPA received in response to this proposed BILLING CODE 6560±50±P Region III or via e-mail at lewis- rule, no further activity is contemplated [email protected]. While in relation to this rule. If EPA receives information may be requested via e- ENVIRONMENTAL PROTECTION adverse comments, the direct final rule mail, comments must be submitted in AGENCY will be withdrawn and all public writing to the above Region III address. comments received will be addressed in 40 CFR Part 52 SUPPLEMENTARY INFORMATION: See the a subsequent final rule based on this information, pertaining to this action [PA083±4062b; FRL±5835±1] proposed rule. The EPA will not (VOC and NOX RACT approval) institute a second comment period on affecting one facility in Pennsylvania, this document. Any parties interested in Approval and Promulgation of Air Quality Implementation Plans; provided in the Direct Final action of commenting on this action should do so the same title which is located in the at this time. Pennsylvania; Approval of Source- Specific VOC and NO RACT Rules and Regulations Section of this DATES: Comments on this proposed rule X Determinations Federal Register. must be received in writing by July 11, Authority: 42 U.S.C. 7401–7671q. 1997. AGENCY: Environmental Protection Dated: May 23, 1997. ADDRESSES: Written comments should Agency (EPA). James W. Newsome, be sent to the Region IX contact listed ACTION: Proposed rule. below. Copies of the SIP revision are Acting Regional Administrator, Region III. available in the docket (#AZ–RVP–97) SUMMARY: EPA proposes to approve the [FR Doc. 97–15103 Filed 6–10–97; 8:45 am] for this rulemaking, which is open for State Implementation Plan (SIP) BILLING CODE 6560±50±P public inspection at the addresses revision submitted by the below. A copy of this notice is also Commonwealth of Pennsylvania for the ENVIRONMENTAL PROTECTION available on EPA, Region IX’s website at purpose of establishing VOC and NOX AGENCY http://www.epa.gov/region09. RACT for one facility. In the Final Rules section of this Federal Register, EPA is Air Planning Office (AIR–2), Air 40 CFR Part 63 Division, Region IX, U.S. approving the State’s SIP revision as a Environmental Protection Agency, 75 direct final rule without prior proposal [AD±FRL±5839±5] because the Agency views this as a Hawthorne Street, San Francisco, CA National Emission Standards for 94105 noncontroversial SIP revision and anticipates no adverse comments. A Hazardous Air Pollutants: Source Arizona Department of Environmental Category List Quality, Office of Outreach and detailed rationale for the approval is set Information, First Floor, 3033 N. forth in the direct final rule and the AGENCY: Environmental Protection Central Avenue, Phoenix Arizona accompanying Technical Support Agency (EPA). Document. If no adverse comments are 85012 ACTION: Extension of public comment FOR FURTHER INFORMATION CONTACT: received in response to this proposed period. Roxanne Johnson, Air Planning Office, rule, no further activity is contemplated (AIR–2), Air Division, U.S. in relation to this rule. If EPA receives SUMMARY: The EPA is announcing the Environmental Protection Agency, adverse comments, the direct final rule extension of the public comment period Region 9, 75 Hawthorne Street, San will be withdrawn and all public on the Advanced Notice of Proposed Francisco, CA 94105, Telephone: (415) comments received will be addressed in Rulemaking for listing research and 744–1225. a subsequent final rule based on this development facilities on the source proposed rule. EPA will not institute a category list (62 FR 25877), which was SUPPLEMENTARY INFORMATION: The second comment period on this action. published on May 12, 1997. revision is being proposed for approval Any parties interested in commenting into the Arizona SIP in section 13 of DATES: Written comments must be on this action should do so at this time. Arizona House Bill 2001 that adds to received on or before July 11, 1997. Arizona Revised Statutes (ARS) section DATES: Comments must be received in ADDRESSES: Submit comments in 41–2083(E) 1 (summertime fuel writing by July 11, 1997. duplicate if possible to: Air and ADDRESSES: Written comments on this Radiation Docket and Information 1 This section is currently codified in the ARS as action should be addressed to David J. Center (6102), Attention: Docket No. A– section 41–2083(F). Campbell, Pennsylvania RACT Team 97–11, U.S. Environmental Protection Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31777

Agency, 401 M Street, SW, Washington, SUMMARY: On June 2, the Wireless frequency for broadband PCS C and F DC 20460. The EPA requests that Telecommunications Bureau (‘‘Bureau’’) block licensees from quarterly to annual separate copies be sent to the of the Federal Communications installments. See Letter from Thomas appropriate contact person listed below. Commission released a Public Notice Gutierrez, Esq., et al. to Michele C. The docket may be inspected at the requesting comment on broadband PCS Farquhar, Esq., Chief, Wireless above address between 8:00 a.m. and C and F block installment payment Telecommunications Bureau (March 13, 5:30 p.m. on weekdays. A reasonable fee issues. The Public Notice seeks 1997) (‘‘Gutierrez Letter’’). Petitioners may be charged for copying. comment on specific restructuring include Alpine PCS, Inc.; DCR PCS, FOR FURTHER INFORMATION CONTACT: proposals, which are attached to the Inc.; Eldorado Communications, L.L.C.; For information concerning the ANPR, Public Notice as Appendices A through Indus, Inc.; KMTel L.L.C.; Mercury PCS, contact Mr. Mark Morris at (919) 541– G. The Bureau invites any additional L.L.C.; Microcom Associates; NextWave 5416, Organic Chemicals Group, proposals for addressing broadband PCS Communications, Inc.; and R&S PCS, Emission Standards Division (MD–13), C and F block financing terms. The Inc. As a result of the pendency of this U.S. Environmental Protection Agency, Bureau also seeks comment on issues request and other issues regarding Research Triangle Park, North Carolina related to refund requests from licensees certain debt functions, the Bureau 27711. who submitted timely payments prior to released an Order which suspended the SUPPLEMENTARY INFORMATION: In the suspension of the installment deadline for broadband PCS C block response to a request from several payments. The Bureau plans to conduct installment payments. See Order, In the companies involved in a large volume of a forum on broadband PCS C and F Matter of Installment Payments for PCS research and development activities, the block installment payment issues, on Licenses, DA 97–649 (released: March EPA is extending the public comment June 30, 1997, in Washington, D.C. 31, 1997). PCS F block installment period from June 11, 1997, to July 11, DATES: Comments are due on or before payments were later suspended as well. 1997, on the Advanced Notice of June 23, 1997. Reply comments are due See Public Notice, ‘‘FCC Announces Proposed Rulemaking for listing on or before July 8, 1997. Grant of Broadband Personal research and development facilities on ADDRESSES: Secretary, Federal Communications Services D, E, and F the source category list. The EPA agrees Communications Commission, 1919 M Block Licenses,’’ DA 97–883 (released: that an extension of the comment period Street, N.W., Room 222, Washington, April 28, 1997) at p. 2. will provide for more meaningful, DC 20554. In addition, two copies 2. The Bureau subsequently received constructive comments on the ANPR. should be hand delivered to: (1) several letters that propose alternative Having extended the comment period, Auctions and Industry Analysis financing arrangements for broadband the EPA nonetheless encourages Division, Wireless Telecommunications PCS C and F block licensees. See Letter commenters to submit as many of their Bureau, Room 5322, 2025 M Street, from Leonard S. Sawicki, Director, FCC comments as possible before July 11, N.W., Washington, D.C. 20554, Affairs, MCI Telecommunications this would assist the EPA in its Attention: Sande Taxali. Corporation, to Mr. William F. Caton, considerations of the issues raised. Due FOR FURTHER INFORMATION CONTACT: Secretary, Federal Communications to the unique nature of R&D activities Rachel Kazan or Sande Taxali, Wireless Commission (May 1, 1997) (‘‘Sawicki and the EPA’a request in the ANPR for Telecommunications Bureau, (202) 418– Letter’’). In this proposal, MCI requests specific information and 0660. that the Commission allow C block licensees to defer payment and accrue recommendations on how to list R&D SUPPLEMENTARY INFORMATION: This is a facilities, the extension to the comment summary of the Public Notice released interest for the first five years of the period will provide the EPA with more on June 2, 1997. The complete Public license term. MCI also suggests that the detailed comments that will result in Notice is available for inspection and Commission modify the PCS ownership future time savings on the project. copying during normal business hours and attribution rules to encourage additional investment in C block List of Subjects in 40 CFR Part 63 in the FCC Reference Center (Room 239), 1919 M Street, N.W., Washington, licensees. Finally, MCI suggests that Air pollution control, Hazardous air D.C., 20554, and also may be purchased such changes be available to all pollutants, Research and development, from the Commission’s copy contractor, broadband PCS C block licensees. See Environmental protection. International Transcription Services, also Letter from James H. Barker and Dated: June 5, 1997. (202) 857–3800, 2100 M Street, N.W., Michael S. Wroblewski, Counsel to Mary D. Nichols, Washington, D.C. 20037. The complete Fortunet Communications, L.P., to Mr. William F. Caton, Secretary, Federal Assistant Administrator. Public Notice is also available on the Communications Commission (May 9, [FR Doc. 97–15365 Filed 6–10–97; 8:45 am] Commission’s Internet home page (http://www.fcc.gov). 1997) (‘‘Barker Letter’’). In its proposal, BILLING CODE 6560±50±M Fortunet requests that the Commission Summary of the Public Notice (1) suspend interest payments until year Wireless Telecommunications Bureau five of the license term; (2) extend the FEDERAL COMMUNICATIONS license term to 20 years; (3) modify the COMMISSION Seeks Comment on Broadband PCS C and F Block Installment Payment Issues C block control group rules; (4) allow the transfer of C block licenses before 47 CFR Part 1 June 2, 1997. the expiration of the five year holding [DA 97±679] Comment Due Date: June 23, 1997 period with modified unjust enrichment Reply Comment Due Date: July 8, 1997 payments; and, (5) increase the level of Broadband PCS C and F Block 1. The Wireless Telecommunications foreign equity permitted. The Bureau Installment Payment Issues Bureau (‘‘Bureau’’) has received a also recently received a petition for AGENCY: Federal Communications request from several broadband Personal rulemaking regarding the issue of Commission. Communications Services (‘‘PCS’’) broadband PCS C and F block payments. licensees requesting that the See Cook Inlet Region, Inc., Petition for ACTION: Request for comments. Commission modify the payment Rulemaking, filed May 7, 1997 (RM– 31778 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

9093). Cook Inlet requests that the Bidding Proceeding, Order, Wireless Telecommunications Bureau Commission initiate a rulemaking to Memorandum Opinion and Order, and (April 4, 1997) (‘‘Lesse Letter’’); Letter establish the requirements and Notice of Proposed Rule Making, (62 FR from Julia F. Kogan, Hogan & Hartson procedures for the disposition of the 13540–02). In this Notice of Proposed L.L.P., for Americall International LLC, installment payment obligations of Rulemaking the Commission seeks to Linda King Friedman, Financial Commission licensees who obtained comment on numerous installment Operations Division, Office of Managing their licenses by competitive bidding. payment issues, including various Director (April 2, 1997) (‘‘Kogan Additionally, Cook Inlet requests that options for installment payments Letter’’). The Bureau seeks comment on the Commission lift the stay of the structures, and input on improvements how such compensation could be deadline for broadband PCS C and F in the installment payment program. formulated. block installment payments. (‘‘Cook Copies of the cited proposals are 6. Parties should file comments on or Inlet Petition’’). In order to consider attached to this Public Notice as before June 23, 1997 and replies to which options would be most Appendices A through H. These comments on or before July 8, 1997, appropriate for a restructuring of proposals can also be found in the with the Secretary, Federal Wireless Telecommunications Bureau broadband PCS C and F block debt, the Communications Commission, 1919 M Reference Room, Room 5608, 2025 M Bureau seeks comment on the proposals Street, N.W., Room 222, Washington, Street, N.W., Washington D.C. 20554. received to date, as set forth in the DC 20554. In addition, two copies Gutierrez Letter, the Sawicki Letter, the 4. In addition, the Bureau will hold a public forum to discuss the issues of C should be hand delivered to: (1) Barker Letter, and the Cook Inlet Auctions and Industry Analysis Petition. In addition, we note that other and F block restructuring and the current capital markets for financing Division, Wireless Telecommunications proposals have been informally raised Bureau, Room 5322, 2025 M Street, with the Bureau. See, e.g., General these licenses. The Bureau plans to conduct the forum on June 30, 1997 in N.W., Washington, D.C. 20554, Wireless Inc., Informal Proposal (May 6, Attention: Sande Taxali. Copies of the 1997). In its proposal, General Wireless Washington, D.C. Further information concerning this event will be provided petitions, comments, and reply recommends that the Commission comments may be obtained from the reduce the principal amount of its debt in a subsequent Public Notice. 5. Finally, the Bureau has received Commission’s duplicating contractor, from an average C block price of $40/ numerous refund requests from International Transcription Service, Inc. pop to $15/pop, consistent with A/B licensees that submitted timely (ITS), 2100 M Street, N.W. Suite 140, block prices. The Bureau seeks payments prior to the suspension of the Washington, D.C., 20037, (202) 857– comment on whether PCS licensees installment payments. The Bureau seeks 3800. Copies are also available for would be able to prepay their comment on whether these licensees public inspection during regular installment debt if any such discount should be offered any credit for the time business hours in Room 5608, 2025 M were to occur. Are there alternative value of their payments as a means to Street, N.W., Washington, D.C. 20554. proposals for calculating the present compensate these licensees for the cost When requesting copies, please refer to value of the broadband PCS C and F of retaining their money during the DA–679. block debt to the government that would period of payment suspension. See, e.g., 7. For further information contact permit licensees to prepay the debt Letter from Michael S. Wroblewski, based on the net present value? Rachel Kazan or Sande Taxali, Auctions Latham & Watkins, Counsel for and Industry Analysis Division, 3. The Bureau invites any additional Southeast Wireless Communications, Wireless Telecommunications Bureau at proposals for addressing the C and F L.P., to Regina Dorsey, Billings and (202) 418–0660. block broadband PCS financing terms. Collections Branch, Office of Managing Federal Communications Commission. Comments received in response to this Director (April 7, 1997) (‘‘Wroblewski Public Notice will be incorporated into Letter’’); Letter from Sylvia Lesse, William F. Caton, the record for the WT Docket No. 97– Kraskin & Lesse, LLP, for Comtel PCS Acting Secretary. 82 proceeding. Amendment of Part 1 of Mainstreet Limited Partnership, to A. [FR Doc. 97–15315 Filed 6–10–97; 8:45 am] the Commission’s Rules—Competitive Jerome Fowlkes, Auctions Division, BILLING CODE 6712±01±U 31779

Notices Federal Register Vol. 62, No. 112

Wednesday, June 11, 1997

This section of the FEDERAL REGISTER displays a currently valid OMB control Description of Respondents: contains documents other than rules or number. Individuals or households; Business or proposed rules that are applicable to the other for-profit; Farms. Agricultural Marketing Service public. Notices of hearings and investigations, Number of Respondents: 4,375. committee meetings, agency decisions and Title: Winter Pears Grown in Oregon, Frequency of Responses: Reporting: rulings, delegations of authority, filing of Washington, and California, Marketing petitions and applications and agency On occasion. statements of organization and functions are Order No. 927. Total Burden Hours: 2,108. examples of documents appearing in this OMB Control Number: 0581–0089. Donal Hulcher, section. Summary of Collection: Information is Departmental Clearance Officer. collected from growers and handlers for [FR Doc. 97–15263 Filed 6–10–97; 8:45 am] referendums, marketing agreements, and BILLING CODE 3410±01±M DEPARTMENT OF AGRICULTURE volume of fruit sold. Need and Use of the Information: The Submission for OMB Review; information is used to administer DEPARTMENT OF AGRICULTURE Comment Request Marketing Order No. 927. Description of Respondents: Business Agricultural Marketing Service June 6, 1997. or other for-profit; Farms. The Department of Agriculture has Number of Respondents: 1,890. [Docket No. PY±97±006] submitted the following information Frequency of Responses: Notice of Request for Approval of an collection requirement(s) to OMB for Recordkeeping; Reporting: On occasion; Information Collection review and clearance under the Biennially Paperwork Reduction Act of 1995, Total Burden Hours: 3,571. AGENCY: Agricultural Marketing Service, Public Law 104–13. Comments USDA. regarding (a) Whether the collection of Animal and Plant Health Inspection information is necessary for the proper Service ACTION: Proposed Collection. performance of the functions of the Title: Imported Seed and Screening. SUMMARY: Notice; in accordance with agency, including whether the OMB Control Number: 0579-New. the Paperwork Reduction Act of 1995 information will have practical utility; Summary of Collection: All seeds (44 U.S.C. Chapter 35), this notice (b) the accuracy of the agency’s estimate offered for entry into the United States announces the intention of the of burden including the validity of the must be accompanied by a declaration Agricultural Marketing Service (AMS) to methodology and assumptions used; (c) from the importer and the containers request an approval of an information ways to enhance the quality, utility and must be labeled. A certificate of analysis collection in support of the State Option clarity of the information to be stating that the seeds were analyzed and Contracts (SOC) Program. collected; (d) ways to minimize the found to present no noxious weed threat DATES: burden of the collection of information Comments on this notice must be to the United States must accompany received by August 11, 1997. on those who are to respond, including the shipment. through the use of appropriate Need and Use of the Information: The ADDITIONAL INFORMATION: Contact Connie automated, electronic, mechanical, or information is used to prevent the Helms, USDA/AMS/Poultry Division, other technological collection spread of insect pests and noxious Room 3943–S, 1400 Independence techniques or other forms of information weeds in the United States. Avenue S.W., STOP 0260, Washington, technology should be addressed to: Desk Description of Respondents: Business DC 20250–0260, (202) 720–7693. Officer for Agriculture, Office of or other for-profit; State, Local or tribal SUPPLEMENTARY INFORMATION: Information and Regulatory Affairs, Government. Title: Donation of Foods for use in the Office of Management and Budget Number of Respondents: 1,200. United States, its territories and (OMB), Washington, DC 20503 and to Frequency of Responses: possessions and areas under its Department Clearance Office, USDA, Recordkeeping; Reporting: On occasion. jurisdiction. OCIO, Mail Stop 7602, Washington, DC Total Burden Hours: 11,564. OMB Number: 0581–XXX 20250–7602. Comments regarding these Expiration Date of Approval: information collections are best assured Farm Service Agency Type of Request: Approval of a new of having their full effect if received Title: Foreign Investment Disclosure information collection. within 30 days of this notification. Act Report, 7 CFR 781. Abstract: Department of Agriculture Copies of the submission(s) May be OMB Control Number: 0560–0097. (USDA) Food Distribution Programs obtained by calling (202) 720–6204 or Summary of Collection: The assist American farmers and needy (202) 720–6746. Agricultural Foreign Investment people by purchasing commodities and An agency May not conduct or Disclosure Act of 1978 requires foreign delivering them to State agencies that, sponsor a collection of information investors to timely report all held, in turn, distribute them to organizations unless the collection of information acquired, or transferred U.S. agricultural for use in providing food assistance to displays a currently valid OMB control land. those in need. The commodities help to number and the agency informs Need and Use of the Information: The meet the nutritional needs of children potential persons who are to respond to information is used to track foreign from preschool age through high school the collection of information that such investment in U.S. agricultural land and in USDA Child Nutrition Programs and persons are not required to respond to prepare an annual report to Congress needy individuals participating in other the collection of information unless it and the President. domestic feeding programs. 31780 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

In accordance with the provisions of information to be collected; or (d) ways 4:30 p.m., Monday through Friday, section 3A of the Commodity to minimize the burden of the collection except holidays. Persons wishing to Distribution Reform Act (Act) and WIC of information on those who are to inspect those documents are requested Amendments of 1987 (7 U.S.C. 612c respond, including through the use of to call ahead on (202) 690–2817 to note) as added by section 1773 of the appropriate automated, electronic, facilitate entry into the reading room. Food, Agriculture, Conservation, and mechanical, or other technological FOR FURTHER INFORMATION CONTACT: Dr. Trade Act of 1990 (7 U.S.C. 1421 note) collection techniques or other forms of Arnold Foudin, Deputy Director, and 7 CFR part 250, USDA acts as the information technology, to: Catherine V. Biotechnology Evaluation, BSS, PPQ, administering agency for the Smith, Acting Chief, USDA/AMS/ APHIS, Suite 5B05, 4700 River Road implementation and operation of the Poultry Division, Room 3943–S, 1400 Unit 147, Riverdale, MD 20737–1237; SOC Program. This legislation allows Independence Avenue S.W., STOP (301) 734–7612. For copies of the the Secretary broad authority to 0260, Washington, DC 20250–0260. environmental assessments and findings establish regulatory provision All responses to this notice will be of no significant impact, contact Mr. promoting accountability in the use of summarized and included in the request Clayton Givens at (301) 734–7612; e- USDA commodities by Federal, State, for OMB approval. All comments will mail: [email protected]. Please and private agencies. also become a matter of public record. refer to the permit numbers listed below This program was previously Dated: June 5, 1997. when ordering the documents. administered by the Food and Michael D. Holbrook, Consumer Service (FCS). Effective SUPPLEMENTARY INFORMATION: The Director, Poultry Division, Agricultural regulations in 7 CFR part 340 (referred school year 1997–98, the Agricultural Marketing Service. Marketing Service (AMS) will assume to below as the regulations) regulate the [FR Doc. 97–15254 Filed 6–10–97; 8:45 am] the responsibility for administering the introduction (importation, interstate SOC Program. BILLING CODE 3410±02±P movement, and release into the The collection of information for the environment) of genetically engineered organisms and products that are plant program is currently approved under DEPARTMENT OF AGRICULTURE OMB number 0584–0293. The pests or that there is reason to believe expiration date of this approval is Animal and Plant Health Inspection are plant pests (regulated articles). A September 30, 1997. Service permit must be obtained or a The information collection and record notification acknowledged before a keeping requirements in this request are [Docket No. 97±044±1] regulated article may be introduced into essential in the administration of the the United States. The regulations set Availability of Environmental SOC Program. forth the permit application Assessments and Findings of No The information collected is used requirements and the notification Significant Impact only by authorized representatives of procedures for the importation, the USDA. The information is used to AGENCY: Animal and Plant Health interstate movement, and release into assure compliance with the Act and the Inspection Service, USDA. the environment of a regulated article. provisions of the SOC Federal-State ACTION: Notice. In the course of reviewing each permit agreement. application, the Animal and Plant Estimate of Burden: Public reporting SUMMARY: We are advising the public Health Inspection Service (APHIS) burden for this collection of information that three environmental assessments assessed the impact on the environment is estimated to average 2.00 hours per and findings of no significant impact that releasing the organisms under the response. have been prepared by the Animal and conditions described in the permit Respondents: State or local Plant Health Inspection Service relative application would have. APHIS has governments. to the issuance of permits to allow the issued permits for the field testing of the Estimated Number of Respondents: field testing of genetically engineered organisms listed below after concluding 20. organisms. The environmental that the organisms will not present a Estimated Number of Responses per assessments provide a basis for our risk of plant pest introduction or Respondent: 1.00 conclusion that the field testing of the dissemination and will not have a Estimated Total Annual Burden on genetically engineered organisms will significant impact on the quality of the Respondents: 40 hours. not present a risk of introducing or human environment. The Copies of this information collection disseminating a plant pest and will not environmental assessments and findings can be obtained from Connie Helms, have a significant impact on the quality of no significant impact, which are Commodity Procurement Branch, at of the human environment. Based on its based on data submitted by the (202) 720–7693. findings of no significant impact, the applicant and on a review of other Send Comments regarding, but not Animal and Plant Health Inspection relevant literature, provide the public limited to, the following: (a) Whether Service has determined that with documentation of APHIS’ review the collection of information is environmental impact statements need and analysis of the environmental necessary for the proper performance of not be prepared. impacts associated with conducting the the functions of the agency, including ADDRESSES: Copies of the environmental field tests. whether the information will have assessments and findings of no Environmental assessments and practical utility; (b) the accuracy of the significant impact are available for findings of no significant impact have agency’s estimate of burden including public inspection at USDA, room 1141, been prepared by APHIS relative to the the validity of the methodology and South Building, 14th Street and issuance of permits to allow the field assumptions used; (c) ways to enhance Independence Avenue SW., testing of the following genetically the quality, utility, and clarity of the Washington, DC, between 8 a.m. and engineered organisms: Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31781

Date Field test Permit No. Permittee Issued Organisms location

96±355±01 ..... Applied Phytologics, Incor- 3±31±97 Rice plants genetically engineered to express proteins of phar- California. porated. maceutical interest. 97±023±01 ..... Auburn University ...... 3±31±97 Pseudomonas syringae pv. tomato strain DC3000 genetically Alabama. engineered for decreased virulence. 97±044±02 ..... Betaseed, Incorporated ...... 4±25±97 Sugar beet plants genetically engineered to express virus resist- Idaho. ance and a marker gene.

The environmental assessments and or working group to which your under the auspices of the Office findings of no significant impact have comments are addressed. Comments International des Epizooties regarding been prepared in accordance with: (1) received may be inspected at USDA, animal health and zoonoses; (3) The National Environmental Policy Act Room 1141, South Building, 14th Street developed under the auspices of the of 1969, as amended (NEPA) (42 U.S.C. and Independence Avenue SW., Secretariat of the International Plant 4321 et seq.), (2) regulations of the Washington, DC, between 8 a.m. and Protection Convention in cooperation Council on Environmental Quality for 4:30 p.m., Monday through Friday, with the North American Plant implementing the procedural provisions except holidays. Persons wishing to Protection Organization regarding plant of NEPA (40 CFR parts 1500–1508), (3) inspect comments are requested to call health; or (4) established by or USDA regulations implementing NEPA ahead on (202) 690–2817 to facilitate developed under any other international (7 CFR part 1b), and (4) APHIS’ NEPA entry into the comment reading room. organization agreed to by the member Implementing Procedures (7 CFR part FOR FURTHER INFORMATION CONTACT: Mr. countries of the North American Free 372). John Greifer, Acting Director, Trade Trade Agreement or by member Done in Washington, DC, this 4th day of Support Team, International Services, countries of the World Trade June 1997. APHIS, room 1128, South Building, Organization. Terry L. Medley, 14th Street and Independence Avenue The Codex Alimentarius Commission (Codex) was created in 1962 by two Administrator, Animal and Plant Health SW, Washington, DC, 20250, (202) 720– Inspection Service. 7677; or e-mail [email protected]. United Nations organizations, the Food and Agriculture Organization (FAO) and [FR Doc. 97–15257 Filed 6–10–97; 8:45 am] SUPPLEMENTARY INFORMATION: the World Health Organization. It is the BILLING CODE 3410±34±P Legislation implementing the Uruguay Round of the General Agreements on major international organization for Tariffs and Trade (the Uruguay Round encouraging international trade in food DEPARTMENT OF AGRICULTURE Agreements Act) was signed into law and protecting the health and economic (Pub. L. 103–465) by the President on interests of consumers. Animal and Plant Health Inspection December 8, 1994. The Uruguay Round The Office International des Service Agreements Act amended title IV of the Epizooties (OIE) was created in Paris, Trade Agreements Act of 1979 (19 France, in 1924, with the signing of an [Docket No. 97±027±1] U.S.C. 2531 et seq.) by adding a new international agreement by 28 countries. The OIE facilitates intergovernmental International Sanitary and subtitle F, ‘‘International Standard- cooperation to prevent the spread of Phytosanitary Standard-Setting Setting Activities.’’ Subtitle F requires contagious diseases in animals, assists Activities the President to designate an agency to be responsible for informing the public in the development of animal AGENCY: Animal and Plant Health of the sanitary and phytosanitary production through improved health Inspection Service, USDA. standard-setting activities of each information, and shares scientific ACTION: Notice and solicitation of international standard-setting progress among its members. The OIE comments. organization. The designated agency provides the major international forum must inform the public by publishing a for discussion and agreement on SUMMARY: In accordance with legislation notice in the Federal Register, which recommendations and proposals on implementing the Uruguay Round of the provides the following information: (1) topics such as disease control, technical General Agreements on Tariffs and The sanitary or phytosanitary standards cooperation, trade standards, and the Trade, we are informing the public of under consideration or planned for exchange of research and disease international standard-setting activities consideration by the international information. of the Office International des standard-setting organization; and (2) The International Plant Protection Epizooties, the Secretariat of the for each sanitary or phytosanitary Convention (IPPC), in effect since 1952, International Plant Protection standard specified: a description of the is a multilateral treaty, administered by Convention, and the North American consideration or planned consideration FAO, that promotes ‘‘* * * common Plant Protection Organization, and we of the standard; whether the United and effective action to prevent the are soliciting public comment on the States is participating or plans to spread and introduction of pests of standards to be considered. participate in the consideration of the plants and plant products and to ADDRESSES: Please send an original and standard; the agenda for United States promote measures for their control three copies of your comments to participation, if any; and the agency (IPPC Preamble).’’ The IPPC Secretariat, Docket No. 97–027–1, Regulatory responsible for representing the United established within the FAO in 1993, Analysis and Development, PPD, States with respect to the standard. works with plant protection APHIS, Suite 3C03, 4700 River Road Subtitle F defines ‘‘international organizations at the national and Unit 118, Riverdale, MD 20737–1238. standard’’ as a standard, guideline, or regional levels to harmonize plant Please state in your letter that your recommendation: (1) Adopted by the quarantine activities worldwide, comments refer to Docket No. 97–027– Codex Alimentarius Commission facilitate the dissemination of 1, and state the name of the committee regarding food safety; (2) developed phytosanitary information, strengthen 31782 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices international cooperation, and support Agency/U.S. Participant(s): 4. Committee/Working Group: technical assistance to developing Delegate—Dr. Joan Arnoldi, Deputy International Animal Health Code countries. Administrator, Veterinary Services, Commission. The North American Plant Protection APHIS, Washington, D.C.; Alternate Agency/U.S. Participant(s): Dr. Alex Organization (NAPPO) was created in delegate—Dr. Alex Thiermann, Regional Thiermann. 1976 to coordinate plant protection Director (Europe, Africa, and Asia), General Purpose: The Code activities in Canada, the United States, International Services, APHIS, Brussels, Commission develops disease-specific and Mexico. NAPPO provides a Belgium. recommendations for international mechanism by which the three General Purpose: Establish, review, standards regarding the movement of countries can exchange information and adopt international standards animals and animal products. The Code related to plant pest control. NAPPO dealing with animal health. Commission also develops generic conducts its business through Date of Meeting: May (annually). standards for animal transport, permanent and ad hoc committees and Location of Meeting: Paris, France. regionalization and risk assessment annual meetings of the three member Major Discussion/Agenda: Animal procedures, surveillance and monitoring countries. NAPPO cooperates with other health standards related to trade, guidelines, and procedures for regional plant protection organizations including risk assessment standards, evaluating animal health infrastructures. and the FAO to achieve the objectives regionalization, and specific disease When adopted by the General Session, of the IPPC. issues. these standards are published in the OIE The World Trade Organization (WTO) 2. Committee/Working Group: International Animal Health Code, the was established on January 1, 1995, as Regional Commission for the Americas. WTO-recognized manual of standards the common international institution for Agency Participant(s): Dr. Joan for international movement of animals the conduct of trade relations among the Arnoldi. and animal products. members in matters related to the General Purpose: The Regional Dates of Meetings: January and Uruguay Round Agreements. The WTO Commission for the Americas is one of September (twice annually). is the successor to the General four OIE Regional Commissions. Location of Meetings: Paris, France. Agreements on Tariffs and Trade. U.S. Regional Commissions nominate Major Discussion/Agenda: The Code membership in the WTO was approved candidates for election to the expert Commission reviews and updates the by Congress when it enacted the Commissions and Working Groups, Code after proposed changes are Uruguay Round Agreements Act. discuss regional animal health issues, circulated to member countries for The President, pursuant to and propose topics of regional concern comments. Updates are submitted for Proclamation No. 6780 of March 23, as agenda items or for scientific review adoption at the General Session. 1995 (60 FR 15845), designated the at upcoming meetings of the OIE 5. Committee/Working Group: Foot Secretary of Agriculture as the official General Session. and Mouth Disease (FMD) and Other responsible for informing the public of Dates of Meetings: May and December Epizootics Commission. the sanitary and phytosanitary (SPS) or January (twice annually). Agency/U.S. Participant(s): There is standard-setting activities of Codex, Location of Meetings: Variable. no Agency or U.S. member on the FMD OIE, IPPC, and NAPPO. This Major Discussion/Agenda: Location of Commission. responsibility was delegated to the regional office for the Americas, animal General Purpose: The FMD and Other United States Department of health diseases control issues of Epizootics Commission monitors the Agriculture’s Food Safety and regional concern. world status of FMD and other major Inspection Service (FSIS) for Codex 3. Committee/Working Group: animal diseases and prepares activities and Animal and Plant Health Standards Commission. recommendations for adoption by the Inspection Service (APHIS) for OIE, Agency/U.S. Participant(s): Dr. James General Assembly. IPPC, and NAPPO activities. Pearson, Director, National Veterinary FSIS is responsible for publishing an Services Laboratory, APHIS, Ames, IA. Dates of Meetings: The Commission annual notice in the Federal Register to General Purpose: The Standards meets when called by the Director inform the public of SPS standard- Commission recommends changes in General. setting activities for Codex. APHIS is international standards for diagnostic Location of Meetings: Paris, France. Major Discussion/Agenda: Current responsible for publishing notice of OIE, tests and vaccines. These changes, when issues facing the Commission: IPPC, and NAPPO activities related to approved by the General Session, are International standards for FMD international standards. published in the OIE Manual of The United States is a participant in Standards for Diagnostic Tests and serological testing, protocols for each of the following activities, and Vaccines. endorsement of FMD-free areas, APHIS is the agency responsible for Dates of Meetings: February and standards for epidemiological representing the United States with September (twice annually). surveillance for contagious bovine respect to these standards. In some Location of Meetings: Paris, France. pleuropneumonia, and surveillance and cases, working groups and committees Major Discussion/Agenda: Review monitoring standards for bovine have not yet set meeting dates and and recommend revisions to spongiform encephalopathy (BSE). locations or determined specific international diagnostic test standards 6. Committee/Working Group: Fish standards to be discussed. Also, because published in the OIE Manual of Diseases Commission. working groups and the issues they Standards for Diagnostic Tests and Agency/U.S. Participant(s): There is address are not static, this list may not Vaccines; review OIE reference no Agency or U.S. member on the Fish present a complete picture of OIE, IPPC, laboratories, OIE reference sera, Diseases Commission. However, Dr. J. R. and NAPPO SPS standard-setting laboratory quality assurance, and make Winton, Research Team Leader at activities for the coming year. recommendations to the OIE Animal Northwest Biological Science Center in Health Code Commission; discuss Seattle, WA, is a U.S.-citizen observer. OIE Standard Setting Activities which diagnostic procedures would be General Purpose: The Fish Diseases 1. Committee/Working Group: General most appropriately prescribed for Commission drafted an Aquatic Animal Session. specific animal and poultry diseases. Health Code and a Diagnostic Manual Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31783 for Aquatic Animal Diseases that assisting an OIE ad hoc group in Agency/U.S. Participant(s): Dr. contain international standards for fish developing draft international William D. Hueston, Associate Dean, diseases. These manuals have been guidelines for veterinary drug Virginia-Maryland Regional College of approved by the General Session. registration. Veterinary Medicine. Date of Meeting: September 9. Committee/Working Group: General Purpose: The Working Group (annually). Working Group on Informatics and is considering changes in disease Location of Meeting: Paris, France. Epidemiology. categorization used to determine the Major Discussion/Agenda: Current Agency/U.S. Participant(s): There is urgency of reporting and the placement activities of the Fish Diseases no Agency or U.S. member on the of certain diseases on OIE Lists A, B, or Commission: Continual updating of the Working Group. However, Dr. Steve C. The Working Group submitted a OIE Fish Disease Manuals, preparation Weber, Acting Director, Centers for report to the Code Commission of the annual OIE report on the world- Animal Health and Epidemiology, suggesting changes in categorization wide status of fish diseases, and APHIS, Fort Collins, CO, serves as a criteria. The proposed changes are being planning and hosting international consultant to the working group. reviewed by the Code Commission. conferences on current topics in aquatic General Purpose: The Working Group After the Code Commission reviews the animal health. on Informatics and Epidemiology report, it will be presented for review by 7. Committee/Working Group: Ad Hoc develops programs to increase the the General Session. Working Group on Biotechnology. efficiency of OIE communications and Date of Meeting: The Working Group Agency/U.S. Participant(s): Dr. John to assist animal health officials of meets when called by the Director R. Gorham, Animal Disease Research member countries to more effectively General. Unit, Agricultural Research Service, utilize contemporary communications Location of Meeting: Paris, France. USDA, Pacific Western Area, is technology. One project of the Working Major Discussion/Agenda: The issue President of the Working Group. Group is HandiStatus, an information currently facing this working Group is General Purpose: The Ad Hoc network on animal diseases of to determine how frequently certain Working Group on Biotechnology international importance. diseases should be reported to the OIE. reviews the biotechnological aspects of Date of Meeting: The Working Group 12. Committee/Working Group: Ad each chapter of the OIE Manual for meets when called by the Director Hoc Group on Transmissible Diagnostic Tests and Vaccines and General. Spongiform Encephalopathies (TSEs): Location of Meeting: Paris, France. Coordination of Research and prepares an annual report and Major Discussion/Agenda: The recommendations dealing with Epidemiological Studies. Working Group is currently developing Agency/U.S. Participant(s): Dr. Linda biotechnology for consideration by the a Windows version of HandiStatus and General Session. The Working Group Detwiler, Veterinary Services, APHIS, designing and developing the OIE Web Robbinsville, NJ. has also developed an international Page. database on sources of General Purpose: The Group reported 10. Committee/Working Group: biotechnologically engineered vaccines its findings on TSEs and BSE to the Working Group on Wildlife Diseases. FMD Commission and developed a and diagnostic reagents. Agency/U.S. Participant(s): Dr. Victor Date of Meeting: The Working Group separate report on TSE research needs. Nettles, Director, Southeastern Date of Meeting: The group is meets when called by the Director Cooperative Wildlife Disease Study, currently inactive. General. College of Veterinary Medicine, Location of Meeting: Paris, France. Location of Meeting: Paris, France. University of Georgia, and Dr. M.H. Major Discussion/Agenda: Currently Major Discussion/Agenda: Current Woodford (Working Group Chairman). there are no issues facing this Working issues facing the Working Group: General Purpose: The Working Group Group. Ongoing reviews of diagnostic test kits, addresses issues involving the For further reference, the OIE applications of genetic engineering to relationship between diseases of standards are contained in two OIE animal health, veterinary products wildlife and those of domestic animals publications, the ‘‘International Animal developed using biotechnology, and and poultry. Health Code’’ and the ‘‘OIE Manual of possible uses of new biotechnological Date of Meeting: The Working Group Standards for Diagnostic Tests and techniques in veterinary medicine. meets when called by the Director Vaccines.’’ Staff veterinarians with 8. Committee/Working Group: General, usually annually in the National Center for Import and Export, Working Group on Veterinary Drug summer or fall. Veterinary Services, APHIS, each have Registration. Location of Meeting: Paris, France. copies of these publications. The Agency/U.S. Participant(s): Dr. Major Discussion/Agenda: Some publications may also be ordered from Sharon R. Thompson, Special Assistant issues currently facing the Working the OIE web page at http://www.oie.org. to the Director, Center for Veterinary Group are: development of reporting Medicine, Food and Drug methods for wildlife diseases IPPC Standard Setting Activities Administration, USDA. (particularly those naturally There is no rigid structure for General Purpose: Prepares transmissible between domesticated and development of draft IPPC standards. In recommendations for the General wild species); facilitating worldwide some cases, the IPPC Secretariat may Session. wildlife disease surveillance and the form an international working group to Date of Meeting: Every 2 years. applicability of routine diagnostic tests draft a standard deemed a priority by Location of Meeting: Paris, France. to wildlife species; and problems related FAO. In most cases, however, draft IPPC Major Discussion/Agenda: Current to propagation of wildlife species in standards originate from industry, State issues facing the group: Planning for the captivity and the disease hazards or provincial governments, or other upcoming session of the International associated with their release from zoos interested parties; they are submitted to Technical Consultations on Veterinary or game farms. the IPPC Secretariat through the Drug Registration, developing training 11. Committee/Working Group: Ad representative organization of the programs for veterinary drug registration Hoc Working Group on Animal Disease member country (APHIS) or through the officials of OIE member countries, and Categorization. regional plant protection organization 31784 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

(NAPPO). The IPPC Secretariat refers The four PRA supplementary standards (a negotiate changes to the revised text. draft standards to the Committee of through d) were combined into one Due to an inability to resolve several key Experts on Phytosanitary Measures integrated PRA supplementary standard in issues over the course of the Technical (CEPM). The CEPM considers the draft 1996. This integrated supplementary Consultation, the Consultation did not standard was not approved by the CEPM standards and recommends action; the pending further work; upon approval by the produce a final revised text to submit to draft standards are submitted either to CEPM (possibly in October 1997) the FAO for approval. FAO for approval or to member document will go for country consultation. Following the January Technical countries for consultation and comment V. New Standards (in initial draft stage). Consultations, the COAG established an (country consultation). The FAO a. Post-entry Quarantine Facilities, open-ended working group to finalize approval process involves review by postponed since 1996, no draft to date. the revision. This working group several bodies—the FAO Committee on b. Pest Free Production Sites, drafted in developed a final revised text which Agriculture (COAG), FAO Council, and October 1995, may be finalized by CEPM in October 1997 for FAO adoption. was presented to the COAG in April FAO Conference—before standards are c. Eradication, drafted in November 1995, 1997. The COAG adopted the revised adopted. may be finalized by CEPM in October 1997 text and will submit it to FAO Council Technical experts from the United for FAO adoption. and legal experts in June 1997 for States have participated directly in d. Guidelines for Import Regulations, consideration. If Council approves the working groups and indirectly as drafted in April 1996, will be reviewed by revised text, it will be submitted to reviewers of all current IPPC draft CEPM in October 1997 for country Conference for final approval in standards. In addition, documents and consultation. November 1997. If approved, the revised positions developed by APHIS and e. Phytosanitary Certification IPPC will be distributed to signatory NAPPO have served as the basis for (supplementing annexes to the Convention), drafted August 1996, will be reviewed by countries in January 1998. many of the standards adopted to date. CEPM in October 1997 for country NAPPO Standard Setting Activities A range of standards are currently consultation. moving through different stages of f. Pest Status Reports (previously referred Current information on NAPPO development, review, and approval. The to as Pest Data Sheets), drafted in March policies, standard setting activities, U.S. status of all IPPC standards (existing, 1997, will be reviewed by CEPM in October participants, and meeting agendas and drafted, and proposed) is summarized 1997 for country consultation. dates is available on the NAPPO home below: g. Pest Management (Quarantine Security), page at http://www.nappo.org. I. Reference Standards (completed but working group proposed for 1997. Interested individuals may also contact subject to revision). h. Dispute Resolution, proposed by some members as a new priority. Marshall Kirby, current APHIS a. Plant Quarantine Principles as Related representative on the APHIS NAPPO to Trade, adopted in 1993. i. Regulated Non-quarantine Pests, b. Glossary of Phytosanitary Terms, revised proposed by some members as a new Standards Panel, at (301) 734–8262. in September 1995. priority. NAPPO Standards Panel c. Policy and Standards for Construction of Further information on the IPPC International Standards for Phytosanitary standards is available from the United The NAPPO Standards Panel handles Measures (ISPMs), adopted in May 1994. Nation’s Food and Agriculture or supports development of NAPPO d. International Plant Protection standards and other cross-commodity Convention, revised in April 1997. Organization web page at: http:// faowfs0a.fao.org/waicent/faoinfo/ issues, reviews proposed international II. Completed Standards (approved by the standards, and recommends NAPPO FAO Committee on Agriculture and FAO agricult/agp/agpp/PQ/Default.htm. Council and adopted by FAO Conference in Revision of the IPPC positions on proposed international November 1995). The IPPC was amended in 1979 in standards. At the July 1997 meeting, the a. Guidelines for Pest Risk Analysis (PRA). response to changing plant pest Panel will develop a work plan for the b. Code of Conduct for the Import and conditions and quarantine concerns. upcoming year. Issues to be considered Release of Exotic Biological Control Agents. The amendment came into force in 1991 include: c. Requirements for the Establishment of upon ratification by two-thirds of the a. Review of existing NAPPO and Pest Free Areas. international standards for equivalency; III. Draft Standards (currently being IPPC signatory countries. However, the finalized). current IPPC does not directly recognize and a. Guidelines for Survey and Monitoring SPS principles and obligations. Nor b. Planning for NAPPO development Systems, revised and approved by the CEPM does it discuss the harmonization of of, or input into, new or revised regional in May 1996, adopted by COAG in April phytosanitary measures through and international standards. 1997. standards. In October 1995, IPPC In addition, the Standards Panel b. Framework for an Export Certification signatory countries agreed to revise the supports the work of other NAPPO System, revised and approved by the CEPM IPPC again in response to changes in panels on standards development. in May 1996, adopted by COAG in April Following is a summary of panel 1997. global agriculture, including the c. Inspection Methodology—redrafted for requirements of the SPS Agreement charges as they relate to the review by the October 1997 CEPM and regarding the development and development of standards (see the possible country consultation. application of international NAPPO home page for the most up-to- IV. Draft Supplementary Standards (require phytosanitary standards. date information, including a list of U.S. additional expert review). The IPPC Secretariat gathered participants on the panels): a. PRA, Pest Categorization. recommendations from signatory Accreditation Panel b. PRA, Economic Impact Assessment. countries regarding potential revisions c. PRA, Probability of Pest Introduction. to the current scope, coverage, and The Panel will finalize the draft d. PRA, Pest Management. provisions of the IPPC. In March 1996, standard, The accreditation of e. Procedures for Determining Freedom of an Area—Citrus Canker, drafted in October plant quarantine experts from various individuals to issue phytosanitary 1995; supplement to the Guidelines for signatory countries met to discuss and certificates, for approval by the NAPPO Survey and Monitoring standard which is develop draft text for the revised IPPC. Executive Committee (EC) at the 1997 currently under review by citrus canker In January 1997, IPPC signatory NAPPO Annual Meeting (October 21– experts. countries met in Rome to further 24). Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31785

Biological Control Panel and determine which species meet the Done in Washington, DC, this 4th day of June 1997. The Panel will: NAPPO definition of quarantine pest; a. Develop a framework, with b. Determine which phytosanitary Terry L. Medley, timelines, for the development of measures will reduce the probability of Administrator, Animal and Plant Health science-based guidelines to harmonize introduction of weed species that are Inspection Service. regulations and protocols for the determined to be quarantine pests into [FR Doc. 97–15256 Filed 6–10–97; 8:45 am] importation, quarantine, and release of Mexico’s territories; BILLING CODE 3410±34±P exotic biological control agents; and c. Review the Tilletia controversa b. Revise and resubmit draft of (dwarf bunt) PRA conducted by Mexico NAPPO guidelines for petition for in March 1996 and recommend the pest DEPARTMENT OF AGRICULTURE status for this species in the NAPPO release of exotic phytophagous insects Forest Service and mites for the biological control of region; and weeds in the NAPPO Standards format. d. Complete development of a NAPPO sampling protocol for the examination Proposed PerkinsÐManistique 138 kV Biotechnology Panel of railway (box) cars for (1) the presence Transmission Line Project The Panel will: of wheat grains and (2) the presence of AGENCY: Forest Service, USDA. a. Develop a NAPPO biotechnology Karnal bunted wheat grains that meets ACTION: Notice; intent to prepare an standard, taking into consideration the quarantine security requirements of environmental impact statement. existing national and international NAPPO member countries. SUMMARY: The USDA Forest Service will standards; and Hemispheric Training Center Panel b. Explore development of a NAPPO prepare an Environmental Impact release policy for wild types of maize The Panel will continue with the Statement (EIS) to analyze and disclose (cotton and tomato) and consider design of a Hemispheric Training Center the effects of a proposal by Wisconsin whether it can be included in the to enable plant protection staffs in Electric Power Company WEPCO and standard. Western Hemisphere countries to build Edison Sault Electric (ESE) to construct and strengthen plant health a 24 mile, 138 kV transmission line in Forestry Panel infrastructures and to harmonize Delta county, Michigan. The project area The Panel will: international plant protection and includes portions of the Hiawatha a. Develop a NAPPO standard for the quarantine systems. National Forest (HNF), Rapid River/ Manistique Ranger Districts. movement of Christmas trees within and Irradiation Panel among NAPPO member countries; DATES: Written comments concerning b. Harmonize gypsy moth regulations The NAPPO Irradiation Standard, the scope of the analysis (issues, among NAPPO member countries; developed by the Irradiation Panel, was preliminary alternatives, etc.) must be c. Develop a NAPPO standard for the approved by the EC in April 1997. There received in writing by July 11, 1997. are no current charges to this panel. movement of wood (including ADDRESSES: Send written comments and dunnage); and Pest Risk Analysis (PRA) Panel suggestions to Mr. William F. Spinner, d. Review the European Plant Forest Supervisor, Hiawatha National Protection Organization list of forestry The Panel will: a. Develop guidelines for the Forest, 2727 Lincoln Road, Escanaba, words/definitions for possible adoption Michigan, 49829. by NAPPO; propose alternatives for harmonized implementation and FOR FURTHER INFORMATION CONTACT: those considered inappropriate. application of the NAPPO PRA Standard and consider possible Technical questions regarding the Fruit Fly Panel amendment of the standard; proposed action and EIS should be directed to Ms. Patty Beyer, Project The Panel will: b. Compare and contrast how a. Complete the list of quarantine individual NAPPO member countries Coordinator, (906) 228–9681. significant fruit flies for the NAPPO apply the NAPPO PRA Standard using, SUPPLEMENTARY INFORMATION: WEPCO/ region and member countries; and as a case study, the PRAs which each ESE propose to construct, operate, and b. Prepare NAPPO standards country has prepared on maintain a 138 kV double circuit pertaining to survey procedures and Chrysanthemum white rust; and transmission line from the existing phytosanitary procedures for quarantine c. Analyze the Chrysanthemum white Perkins Substation one mile west of significant fruit flies. rust PRAs prepared by NAPPO member Perkins, Michigan to the proposed countries to determine the status of the Indian Lake Substation one mile Fruit Tree and Grapevine Nursery Stock causal agent of this disease as a northwest of Manistique, Michigan. The Certification Standard Panel quarantine pest in the NAPPO region. proposed 24 mile route lies adjacent to The Panel will: the Lakehead Oil Company pipeline Potato Panel a. Complete the grapevine portion of right-of-way. The Substation locations the Fruit Tree and Grapevine Nursery The Panel will: are outside the boundaries of the Stock Certification Standard in time for a. Advance the NAPPO Potato Hiawatha National Forest. The Federal EC approval at the 1997 annual meeting; Standard towards becoming an Land and Policy Act allows the use of and international standard; and national forest lands for electric b. Proceed with other components of b. Convene a subgroup to harmonize transmission rights-of-way. The the standard. and/or determine equivalencies among Hiawatha National Forest Land and diagnostic tests for Potato Virus Y Strain Resource Management Plan allows for Grains Panel N within the NAPPO region. utility right-of-ways within management The Panel will: Comments on standards being areas crossed by the proposed project. a. Review the list of weed species considered or to be considered by any WEPCO/ESE have identified a lack of intercepted by Mexico in imported of the committees or working groups adequate electric transmission facilities consignments of wheat grain for listed above may be sent to APHIS as serving Delta and Schoolcraft counties processing from other NAPPO countries directed under the heading ADDRESSES. in the Upper Peninsula of Michigan, 31786 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices presently an ESE service territory. The fields, impacts to wetlands from Correction Michigan Public Service Commission construction and effective wetland has determined the existing service is restoration, disturbances to threatened, In the Federal Register issue of May inadequate in three areas, including endangered and sensitive plant and 1, 1997, on page 23757, in the third load growth, reliability, and electrical animal habitat, noxious weed control, column, correct the OMB Number to transmission system reinforcement. recreation access to roads, rivers, and read: 0694–0001. WEPCO/ESE’s load growth has nearly trails during construction and the Dated: June 5, 1997. exceeded capacity and its need for commitment of forest resources over the Linda Engelmeier, reliable service and additional capacity long term. The public is invited to attend Departmental Forms Clearance Officer, Office to meet peak system demand is urgent. of Management and Organization. The purpose for constructing the project meetings to be held June 17, 18, and 19, [FR Doc. 97–15169 Filed 6–10–97; 8:45 a.m.] is to increase reliability of service and 1997, from 7:00 p.m. to 9:00 p.m. at the provide an additional source of power township hall in Nahma, the Omni BILLING CODE 3510±33±P to the customers served within WEPCO/ Center in Rapid River, and the township ESE service area. hall in Cooks, Michigan, respectively. In DEPARTMENT OF COMMERCE Permits or licenses required to additional meeting will be held June 17 at the Nahma township hall from 11:00 implement the proposed action include: International Trade Administration right-of-way easement from the a.m. to 1:00 p.m. The purpose of the workshop-style meetings, is to share Michigan Department of Natural Antidumping or Countervailing Duty project information and identify public Resources, wetland permits and erosion Order, Finding, or Suspended issues and concerns. To assist the Forest control standards from the Michigan Investigation; Opportunity to Request Service in identifying and considering Department of Environmental Quality, Administrative Review Section 404 determination and permit issues and concerns on the proposed action, written comments on the from the US Army Corps of Engineers, AGENCY: Import Administration, proposal should be as specific as road crossing permits from Delta and International Trade Administration, possible. Please note that written Schoolcraft counties and the Michigan Department of Commerce. Department of Transportation, railroad comments made on the proposal will be crossing permits from the Wisconsin regarded as public information. ACTION: Notice of opportunity to request Central Railroad, approval of Anticipated publication date for the administrative review of antidumping or Interchange Agreement from the Federal Draft EIS is November 1997 and the countervailing duty order, finding, or Energy Regulatory Commission, Final EIS in early 1998. suspension of investigation. Certificate of Public Convenience and Dated: June 5, 1997. Necessity from the Public Service William F. Spinner, Background Commission, Act 69 approval from the Forest Supervisor. Each year during the anniversary Michigan Public Service Commission, [FR Doc. 97–15234 Filed 6–10–97; 8:45 am] month of the publication of an Section 106 Review by the Michigan BILLING CODE 3410±11±M antidumping or countervailing duty State Historic Preservation Office and a order, finding, or suspension of Wild and Scenic River Determination investigation, an interested party, as from the USDA Forest Service. DEPARTMENT OF COMMERCE defined in section 771(9) of the Tariff The USDA Forest Service is serving as Act of 1930, as amended, may request, lead federal agency for the preparation Bureau of Export Administration in accordance with section 353.22 or of an EIS that will evaluate the purpose, 355.22 of the Department of Commerce need, and routing alternatives on the Exceptions to IC/DV Procedures; (the Department) Regulations (19 CFR Hiawatha National Forest for the Correction 353.22/355.22 (1993)), that the proposed project. The decision to be ACTION: Proposed collection; correction. Department conduct an administrative made is whether to allow the use of review of that antidumping or portions of the Hiawatha National SUMMARY: The Department of countervailing duty order, finding, or Forest for siting a transmission line Commerce, Bureau of Export suspended investigation. facility. The USDA Forest Service has Administration published a document invited other affected agencies to in the Federal Register of May 1, 1997 OPPORTUNITY TO REQUEST A REVIEW: Not participate in the environmental (62 FR 23757) concerning a request for later than the last day of June 1997, process. Preliminary issues associated comments on a collection of interested parties may request with this proposal include construction information. The document contained administrative review of the following across two designated wild and scenic an incorrect OMB control number. orders, findings, or suspended rivers, aesthetic effects, health and FOR FURTHER INFORMATION CONTACT: investigations, with anniversary dates in safety concerns from electromagnetic Stephen Baker, (202) 482–3673. June for the following periods:

Period

Antidumping Proceedings BELGIUM: Sugar, A±423±077 ...... 6/1/96±5/31/97 CANADA: Oil Country Tabular Goods, A±122±506 ...... 6/1/96±5/31/97 CANADA: Raspberries, A±122±401 ...... 6/1/96±5/31/97 FRANCE: Calcium Aluminate Flux, A±427±812 ...... 6/1/96±5/31/97 FRANCE: Large Power Transformers, A±427±030 ...... 6/1/96±5/31/97 FRANCE: Sugar, A±427±078 ...... 6/1/96±5/31/97 GERMANY: Industrial Belts, except Synchronous & V-Belts, A±428±802 ...... 6/1/96±5/31/97 GERMANY: Precipitated Barium Carbonate, A±428±061 ...... 6/1/96±5/31/97 GERMANY: Rayon Yarns, A±428±810 ...... 6/1/96±5/31/97 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31787

Period

GERMANY: Sugar, A±428±082 ...... 6/1/96±5/31/97 HUNGARY: Tapered Roller Bearings, A±437±601 ...... 6/1/96±5/31/97 ITALY: Large Power Transformers, A±475±031 ...... 6/1/96±5/31/97 ITALY: Synchronous and V-Belts, A±475±802 ...... 6/1/96±5/31/97 JAPAN: Fishnetting, A±588±029 ...... 6/1/96±5/31/97 JAPAN: Forklift Trucks, A±588±703 ...... 6/1/96±5/31/97 JAPAN: Grain-Oriented Electrical Steel, A±588±831 ...... 6/1/96±5/31/97 JAPAN: Industrial Belts, A±588±807 ...... 6/1/96±5/31/97 JAPAN: Large Power Transformers, A±588±032 ...... 6/1/96±5/31/97 JAPAN: Nitrile Rubber, A±588±706 ...... 6/1/96±5/31/97 JAPAN: PET Film, A±588±814 ...... 6/1/96±5/31/97 NEW ZEALAND: Kiwifruit, A±614±801 ...... 6/1/96±5/31/97 ROMANIA: Tapered Roller Bearings, A±485±602 ...... 6/1/96±5/31/97 RUSSIA: Ferrosilicon A±821±804 ...... 6/1/96±5/31/97 SINGAPORE: V-Belts, A±559±803 ...... 6/1/96±5/31/97 SOUTH AFRICA: Furfuryl Alcohol, A±791±802 ...... 6/1/96±5/31/97 SWEDEN: Stainless Steel Plate, A±401±040 ...... 6/1/96±5/31/97 TAIWAN: Carbon Steel Plate, A±583±080 ...... 6/1/96±5/31/97 TAIWAN: Oil Country Tubular Goods, A±583±505 ...... 6/1/96±5/31/97 TAIWAN: Stainless Steel Butt-Weld Pipe Fittings, A±583±816 ...... 6/1/96±5/31/97 TAIWAN: Washers, A±583±820 ...... 6/1/96±5/31/97 THE NETHERLANDS: Aramid Fiber, A±421±805 ...... 6/1/96±5/31/97 THE PEOPLE'S REPUBLIC OF CHINA: Furfuryl Alcohol, A±570±835 ...... 6/1/96±5/31/97 THE PEOPLE'S REPUBLIC OF CHINA: Silicon Metal, A±570±806 ...... 6/1/96±5/31/97 THE PEOPLE'S REPUBLIC OF CHINA: Sparklers, A±570±804 ...... 6/1/96±5/31/97 THE PEOPLE'S REPUBLIC OF CHINA: Tapered Roller Bearings, A±570±601 ...... 6/1/96±5/31/97 VENEZUELA: Ferrosilicon, A±307±807 ...... 6/1/96±5/31/97 Countervailing Proceedings ITALY: Grain-Oriented Electrical Steel, C±475±812 ...... 1/1/96±12/31/96

In accordance with sections 353.22(a) Seven copies of the request should be consumption and to continue to collect and 355.22(a) of the regulations, an submitted to the Assistant Secretary for the cash deposit previously ordered. interested party as defined by section Import Administration, International This notice is not required by statute, 353.2(k) may request in writing that the Trade Administration, Room B–099, but is published as a service to the Secretary conduct an administrative U.S. Department of Commerce, 14th international trading community. review. The Department has changed its Street & Constitution Avenue, N.W., Dated: June 4, 1997. requirements for requesting reviews for Washington, D.C. 20230. The Jeffrey P. Bialos, countervailing duty orders. Pursuant to Department also asks parties to serve a copy of their requests to the Office of Principal Deputy Assistant Secretary for 19 C.F.R. 355.22(a) of the regulations, an Import Administration. interest party must specify the Antidumping/Countervailing [FR Doc. 97–15288 Filed 6–10–97; 8:45 am] individual producers or exporters Enforcement, Attention: Sheila Forbes, BILLING CODE 3510±DS±M covered by the order or suspension in room 3065 of the main Commerce Building. Further, in accordance with agreement for which they are requesting section 353.31(g) or 355.31(g) of the a review (Interim Regulations, 60 FR regulations, a copy of each request must DEPARTMENT OF COMMERCE 25130, 25137 (May 11, 1995)). be served on every party of the International Trade Administration Therefore, for both antidumping and Department’s service list. countervailing duty reviews, the The Department will publish in the [A±412±810] interested party must specify for which Federal Register a notice of ‘‘Initiation individual producers or exporters of Administrative Review of Certain Hot-Rolled Lead and Bismuth covered by an antidumping finding or Antidumping or Countervailing Duty Carbon Steel Products from the United an antidumping or countervailing duty Order, Finding, or Suspended Kingdom: Notice of Amendment of order it is requesting a review, and the Investigation,’’ for requests received by Final Results of Antidumping requesting party must state why it the last day of June 1997. If the Administrative Review desires the Secretary to review those Department does not receive, by the last AGENCY: Import Administration, particular producers or exporters. If the day of June 1997, a request for review International Trade Administration, interested party intends for the of entries covered by an order, finding, Department of Commerce. Secretary to review sales of merchandise or suspended investigation listed in this ACTION: by an exporter (or a producer if that Notice of amendment of final notice and for the period identified results of antidumping duty producer also exports merchandise for above, the Department will instruct the administrative review. other suppliers) which were produced Customs Service to assess antidumping in more than one country of origin, and or countervailing duties on those entries SUMMARY: We are amending our final each country of origin is subject to a at a rate equal to the cash deposit of (or results of administrative review of the separate order, then the interested party bond for) estimated antidumping or antidumping duty order on certain hot- must state specifically, on an order-by- countervailing duties required on those rolled lead and bismuth carbon steel order basis, which exporter(s) the entries at the time of entry, or products from the United Kingdom, request is intended to cover. withdrawal from warehouse, for published on April 17, 1997, to reflect 31788 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices the correction of ministerial errors made flat-rolled products. Most of the understated imputed credit and in the margin calculation in those final products covered in this review are inventory carrying costs. BSES points results. We are publishing this provided for under subheadings out that the Department calculated amendment to the final results in 7213.20.00 and 7214.30.00.00 of the credit and inventory carrying costs for accordance with 19 CFR 353.28(c). HTSUS. Small quantities of these CV by first creating CV credit and EFFECTIVE DATE: June 11, 1997. products may also enter the United inventory carrying costs ratios. The FOR FURTHER INFORMATION CONTACT: G. States under the following HTSUS Department then multiplied the ratios Leon McNeill or Maureen Flannery, subheadings: 7213.31.30.00, 60.00; by total CV to yield the unit values of Import Administration, International 7213.39.00.30, 00.60, 00.90; CV credit and inventory carrying costs. Trade Administration, U.S. Department 7214.40.00.10, 00.30, 00.50; BSES argues that, since the denominator of Commerce, 14th Street and 7214.50.00.10, 00.30, 00.50; of the ratios was on a different basis Constitution Avenue, N.W., Washington 7214.60.00.10, 00.30, 00.50; and than total CV (the value by which the D.C. 20230; telephone (202) 482–4733. 7228.30.80.00. HTSUS subheadings are ratio was multiplied), the results of the provided for convenience and Customs Applicable Statute calculations were understated. BSES purposes. The written description of the claims that the Department normally Unless otherwise stated, all citations scope of this order remains dispositive. creates these variables by weight- to the statute are references to the Amended Final Results averaging values from above-cost home provisions effective January 1, 1995, the On May 1, 1997, BSES alleged that the market sales. As support for its effective date of the amendments made argument, BSES cites our Final Results to the Tariff Act of 1930 (the Act) by the Department of Commerce (the Analysis memorandum of April 9, 1997, Uruguay Round Agreements Act Department) committed ministerial where the Department states that ‘‘we (URAA). In addition, unless otherwise errors in calculating the final weighted-averaged the variables, indicated, all citations to the antidumping duty margin. BSES argues Department’s regulations are to the that, in calculating constructed value including credit and inventory carrying current regulations, as amended by the (CV) profit, the Department made a costs.’’ BSES notes that the total CV interim regulations published in the ministerial error in failing to ensure that (‘‘TOTCV’’) does not include movement Federal Register on May 11, 1995 (60 the profit ratio and the value by which expenses, while the home market total FR 25130). the ratio was multiplied shared the unit price (‘‘HMTOTUPR’’), which same basis. BSES argues that the serves as the denominator of the SUPPLEMENTARY INFORMATION: Department overstated the CV profit by imputed credit and inventory carrying Background including direct selling expenses, costs ratios, does include movement On December 10, 1996, we published indirect selling expenses, and packing expenses. BSES argues that the resulting the preliminary results of our in ‘‘CVPROFIT,’’ the value by which the unit values for credit and inventory administrative review of certain hot- profit ratio (‘‘PRATE2CV’’) was carrying costs are therefore understated. rolled lead and bismuth carbon steel multiplied, but excluding those BSES suggests that the Department products from the United Kingdom (61 expenses from the total cost of correct this error by using the FR 65022). We published the final production used in the denominator of Department’s standard weighted-average results of review on April 17, 1997 (62 the profit ratio. In order to ensure that method; alternatively, BSES suggests, if FR 18744). On May 1, 1997, we received denominator ‘‘TOTHMCOP’’ of the the Department continues to use the a timely allegation from respondent, profit ratio and value ‘‘CVPROFIT’’ ratio, the Department may correct its British Steel Engineering Steels Limited shared the same basis, BSES suggests error by either deducting movement (BSES), alleging that the Department that the Department either delete such expenses from the denominator made ministerial errors in the final expenses from ‘‘CVPROFIT’’ or include ‘‘HMTOTUPR’’ or by adding the results. them in the denominator movement expenses to ‘‘TOTCV.’’ ‘‘TOTHMCOP.’’ We agree that the Department made a Scope of Review We agree with BSES that the ministerial error as it intended to Department made a ministerial error by The products covered by this review calculate a weighted-average of the inadvertently excluding direct selling are hot-rolled bars and rods of nonalloy listed variables including credit and or other alloy steel, whether or not expenses, indirect selling expenses and inventory carrying costs. See Final descaled, containing by weight 0.03 packing expenses in the calculation of Analysis memorandum dated April 9, percent or more of lead or 0.05 percent CV profit. These items should have been 1997. Therefore, we have revised the or more of bismuth, in coils or cut included. Furthermore, we note that we margin calculation program by replacing lengths, and in numerous shapes and erred by deducting these expenses from sizes. Excluded from the scope of this gross price before the comparison of ‘‘SUM’’ with ‘‘MEAN’’ at line 441, and review are other alloy steels (as defined gross price with cost of production. deleting lines 454, 455, 456, 457, 1009, by the Harmonized Tariff Schedule of Therefore, we have excluded these 1010, 1014, and 1015. the United States (HTSUS) Chapter 72, expenses from the net cost of Amended Final Results of Review note 1 (f)), except steels classified as production, ‘‘NPRICOP,’’ and have other alloy steels by reason of added them to the total cost of Upon review of the submitted containing by weight 0.4 percent or production, ‘‘TOTCOP,’’ for these allegation, the Department has more of lead, or 0.1 percent or more of amended final results. determined that the following margin bismuth, tellurium, or selenium. Also Second, BSES alleges that, in the exists for the period March 1, 1995 excluded are semi-finished steels and calculation of CV, the Department through February 29, 1996.

Margin Manufacturer/Exporter Period of Review (percent)

British Steel Engineering Steels Limited (BSES) (formerly United Engineering Steels Limited) ...... 3/1/95±2/29/96 4.52 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31789

The Department shall determine, and notification of return/destruction of from Korea to determine whether or not the Customs Service shall assess, APO materials or conversion to judicial SEAH is the successor firm to PSP, and antidumping duties on all appropriate protective order is hereby requested. to determine whether SEAH is entitled entries. Individual differences between Failure to comply with the regulations to PSP’s cash deposit rate. export price and normal value may vary and the terms of an APO is a EFFECTIVE DATE: June 11, 1997. from the percentage stated above. sanctionable violation. Because there is a concurrent review of This administrative review and notice FOR FURTHER INFORMATION CONTACT: G. the countervailing duty order on the are in accordance with section 751(a)(1) Leon McNeill or Maureen Flannery, subject merchandise, final assessments of the Act (19 U.S.C. 1675(a)(1)) and 19 Import Administration, International for BSES will reflect the final results of CFR 353.22. Trade Administration, U.S. Department of Commerce, 14th Street and the countervailing duty administrative Dated: May 30, 1997. Constitution Avenue, N.W., review in accordance with section Robert S. LaRussa, 772(c)(1)(C) of the Act. The Department Washington, D.C. 20230; telephone Acting Assistant Secretary for Import (202) 482–4733. will issue appraisement instructions Administration. directly to the Customs Service. [FR Doc. 97–15289 Filed 6–10–97; 8:45 am] Applicable Statute Furthermore, the following deposit requirements will be effective upon BILLING CODE 3510±DS±P Unless otherwise indicated, all publication of this notice of amended citations to the statute are references to the provisions effective January 1, 1995, final results of review for all shipments DEPARTMENT OF COMMERCE of certain hot-rolled lead and bismuth the effective date of the amendments carbon steel products from the United International Trade Administration made to the Tariff Act by the Uruguay Kingdom entered, or withdrawn from Round Agreements Act. In addition, warehouse, for consumption on or after A±580±810 unless otherwise indicated, all citations to the Department’s regulations are to the publication date, as provided by Certain Welded Stainless Steel Pipe the current regulations, as amended by section 751(a)(1) of the Act: (1) The cash from Korea; Initiation of Changed the interim regulations published in the deposit rate for the reviewed company Circumstances Antidumping Duty Federal Register on May 11, 1995 (60 will be the rate listed above; (2) for Administrative Review previously reviewed or investigated FR 25130). companies not listed above, the cash AGENCY: Import Administration, SUPPLEMENTARY INFORMATION: deposit rate will continue to be the International Trade Administration, company-specific rate published for the Department of Commerce. Background most recent period; (3) if the exporter is ACTION: Notice of Initiation of Changed On March 27, 1997, SEAH requested not a firm covered in this review, a prior Circumstances Antidumping Duty that the Department conduct a changed review, or the original less-than-fair- Administrative Review. circumstances administrative review value (LTFV) investigation, but the SUMMARY: In response to a request from pursuant to section 751(b) of the Tariff manufacturer is, the cash deposit rate Act to determine whether SEAH should will be the rate established for the most SEAH Steel Corporation (SEAH), the Department of Commerce (the properly be considered the successor recent period for the manufacturer of firm to PSP and if, as such, SEAH the merchandise; and (4) for all other Department) is initiating a changed should be entitled to PSP’s cash deposit producers and/or exporters of this circumstances antidumping duty rate. merchandise, the cash deposit rate shall administrative review of the be 25.82 percent, the ‘‘all others’’ rate antidumping duty order on certain According to SEAH, PSP legally established in the LTFV investigation welded stainless steel pipe from Korea. changed its name to SEAH on December (58 FR 6207, January 27, 1993). These See Notice of Amended Final 28, 1995, which change became deposit requirements shall remain in Determination and Antidumping Duty effective on January 1, 1996. SEAH effect until publication of the final Order; Certain Welded Stainless Steel claims that its name change from PSP results of the next administrative Pipe From Korea, 60 FR 10064 (February was a change in name only, and that the review. 23, 1995). See also Antidumping Duty legal structure of the company, its This notice serves as a final reminder Order and Clarification of Final management, and ownership were not to importers of their responsibility Determination; Certain Welded affected by the name change. SEAH also under 19 CFR 353.26 to file a certificate Stainless Steel Pipe from Korea, 57 FR claims that it is a part of a larger group regarding the reimbursement of 62301, (December 30, 1992). of related companies, certain members antidumping duties prior to liquidation SEAH requested that the Department of which had SEAH in their names prior of the relevant entries during this determine that SEAH is the successor to January 1, 1996. review period. Failure to comply with firm to Pusan Steel Pipe (PSP). During In its request for a changed this requirement could result in the the less-than-fair-value (LTFV) circumstances review, SEAH indicated Secretary’s presumption that investigation, PSP was assigned a cash that PSP had acquired certain reimbursement of antidumping duties deposit rate of 2.67 percent. See production assets formerly owned by occurred and subsequent assessment of Antidumping Duty Order and Sammi Metal Products Co (Sammi). double antidumping duties. Clarification of Final Determination; SEAH asserts that the acquisition, Certain Welded Stainless Steel Pipe which occurred more than a year before Notification to Interested Parties from Korea, 57 FR 62301 (December 30, the name change and was effective This notice also serves as a reminder 1992). SEAH’s request is filed pursuant January 3, 1995, is not related to the to parties subject to administrative to section 751(b) of the Tariff Act of name change. SEAH claims that its protective order (APO) of their 1930, as amended (the Tariff Act). acquisition of the products and facilities responsibility concerning the We are initiating an antidumping duty of Sammi is functionally no different disposition of proprietary information changed circumstances administrative from PSP expanding its existing disclosed under APO in accordance review of the antidumping duty order facilities or contracting a new with 19 CFR 353.34(d). Timely written on certain welded stainless steel pipe manufacturing facility. 31790 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

The Department has examined This changed circumstances ACTION: Advance notice of a proposed SEAH’s request for a changed administrative review covers SEAH and shrimp virus risk assessment and public circumstances administrative review any parties affiliated with SEAH. meetings. and has determined that the facts before Initiation of Changed Circumstances the Department will require further SUMMARY: The Joint Subcommittee on Antidumping Duty Order investigation. Aquaculture (JSA); Office of Science On May 13, 1997, SEAH also Administrative Review and Technology Policy, is releasing a requested that the Department publish Pursuant to section 751(b) of the report describing the potential impacts concurrently its notice of initiation and Tariff Act, the Department will conduct of shrimp viruses on cultured shrimp preliminary results of changed a changed circumstances administrative and on wild shrimp populations in the circumstances review. On May 23, 1997, review upon receipt of information Gulf of Mexico and southeastern U.S. petitioners submitted a letter objecting concerning, or a request from an Atlantic coastal waters. Comments to the concurrent issuance of a notice of interested party of an antidumping duty received in writing, or at public initiation and preliminary results of order which shows, changed meetings, will be used to help develop changed circumstances review. circumstances sufficient to warrant a plans for an ecological risk assessment Petitioners’ objection is based on the review of the order. See section on shrimp viruses. complexity of the facts, and the inability 751(b)(1). In accordance with section DATES: Consideration will be given to of counsel to obtain proprietary 751(b) and 19 CFR 353.22(f)(1)(i), we are only to those comments received on or documents submitted by SEAH until initiating a changed circumstances before August 11, 1997. In addition, after an initiation. For these reasons, administrative review based upon the comments may be provided at any of and because we are considering whether information contained in SEAH’s March three public meetings to be held. See to seek additional information and want 27, 1997 request for this review. SUPPLEMENTARY INFORMATION section for petitioners to have an opportunity to The Department will publish in the further details regarding these meetings. comment, the Department has Federal Register a notice of preliminary ADDRESSES: Copies of a report prepared determined that it would not be results of changed circumstances for the JSA entitled, ‘‘An Evaluation of appropriate to issue our preliminary antidumping duty administrative Shrimp Virus Impacts on Cultured results of a changed circumstances review, in accordance with 19 CFR Shrimp and on Wild Shrimp review at this time. 353.22(f)(1)(v), which will set forth the Populations in the Gulf of Mexico and Scope of the Review factual and legal conclusions upon Southeastern U.S. Atlantic Coastal which our preliminary results are based. Waters’’ (the shrimp virus report) may The merchandise subject to this Not later than 270 days after publication be obtained by contacting NMFS antidumping duty order is welded of this notice of initiation, the Assistant Administrator’s Office of austenitic stainless steel pipe (WSSP) Department will issue its final results of Industry and Trade, at:301–713–2379 or that meets the standards and review. All written comments must be by accessing the NMFS Home Page, at: specifications set forth by the American submitted in accordance with 19 CFR http://kingfish.ssp.nmfs.gov/oit/ Society for Testing and Materials 353.31(e) and must be served on all oit.html. To help ensure that written (ASTM) for the welded form of interested parties on the Department’s comments are considered, send an chromium-nickel pipe designated service list in accordance with 19 CFR original and three copies to Mr. Jerome ASTM A–312. The merchandise covered 353.31(g). Erbacher, Office of Industry & Trade, by the scope of this order also includes This notice is in accordance with Room 3675, SSMC3, NMFS, 1315 East- WSSP made according to the standards section 751(b)(1) of the Tariff Act and West Highway, Silver Spring, MD of other nations which are comparable 20910, or facsimile to (301) 713–2384. to ASTM A–312. section 353.22(f)(1)(i) of the WSSP is produced by forming Department’s regulations. To attend any of the public meetings, stainless steel flat-rolled products into a Dated: June 2, 1997. contact the Eastern Research Group, Inc. (ERG), Conference Registration tubular configuration and welding along Robert S. LaRussa, Line,(617) 674–7374. the seam. WSSP is a commodity product Acting Assistant Secretary for Import generally used as a conduit to transmit Administration. FOR FURTHER INFORMATION CONTACT: For liquids or gases. Major applications [FR Doc. 97–15290 Filed 6–10–97; 8:45 am] technical information, contact Dr. Thomas McIlwain, Chairperson of the include, but are not limited to, digester BILLING CODE 3510±DS±P lines, blow lines, pharmaceutical lines, JSA Shrimp Virus Work Group, NMFS, petrochemical stock lines, brewery 3209 Frederick Street, Pascagoula, MS process and transport lines, general food DEPARTMENT OF COMMERCE 39567, (601) 762–4591 or Dr. Thomas C. processing lines, automotive paint lines Siewicki, 219 Ft. Johnson Road, and paper process machines. Imports of National Oceanic and Atmospheric Charleston SC 29412, (803)762-8534. WSSP are currently classifiable under Administration SUPPLEMENTARY INFORMATION: Evidence the following Harmonized Tariff suggests that exotic shrimp viruses may Schedule of the United States (HTS) [I.D. 060297C] be inadvertently introduced into U.S. subheadings: 7306.40.5005, An Evaluation of Potential Shrimp coastal regions. If established, these 7306.40.5015, 7306.40.5040, Virus Impacts on Cultured Shrimp and introduced viruses have the potential to 7306.40.5065 and 7306.40.5085. on Wild Shrimp Populations in the Gulf infect both wild shrimp stocks and Although these subheadings include of Mexico and Southeastern U.S. shrimp in aquaculture through a both pipes and tubes, the scope of this Atlantic Coastal Waters number of different pathways. Two antidumping duty order is limited to potentially significant pathways involve welded austenitic stainless steel pipes. AGENCY: National Marine Fisheries the shrimp aquaculture and shrimp Although the HTS subheadings are Service (NMFS), National Oceanic and processing industries. Though provided for convenience and Customs Atmospheric Administration (NOAA), considered less significant, examples of purposes, the written description of the Commerce, on behalf of the Joint other potential pathways include bait scope of this order is dispositive. Subcommittee on Aquaculture. shrimp, ship ballast water, research and Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31791 display, translocated animals (non- Brownsville, Texas. There is no charge Special Accommodations shrimp), and natural spread (e.g., for attending the public meetings listed This meeting is physically accessible migratory birds, large scale currents, above; however, seats are limited, so it to people with disabilities. Requests for flooding). is advisable to register as soon as sign language interpretation or other In 1995, Taura Syndrome Virus (TVS) possible. Participants wishing to make auxiliary aids should be directed to was documented in shrimp culture comments or address issues can register Anne Alford at the Council (see ponds in Texas. After the Texas with ERG prior to the workshop, or on ADDRESSES) by June 30, 1997. outbreak, ponds were restocked with site. Each participant will be assigned a shrimp seed native to the Gulf of time slot on a first-come, first-served Dated: June 5, 1997. Mexico. However, some of the shrimp in basis. Individual comments should be Bruce C. Morehead, the second stocking were later found limited to 3 to 5 minutes; additional or Acting Director, Office of Sustainable infected with other pathogenic viruses lengthy comments may be submitted in Fisheries, National Marine Fisheries Service. (e.g., White Spot Syndrome Virus writing to the address provided above. [FR Doc. 97–15243 Filed 6–10–97; 8:45 am] (WSSV) and Yellow Head virus (YHV), Dated: June 5, 1997. BILLING CODE 3510±22±F only previously identified in shrimp imported from the far east. In 1996, a Rolland Schmitten, repeat outbreak of TSV was Assistant Administrator for Fisheries, DEPARTMENT OF COMMERCE documented. In 1997, YHV and WSSV National Marine Fisheries Service. were identified (based on very limited [FR Doc. 97–15241 Filed 6–10–97; 8:45 am] National Oceanic and Atmospheric data) in South Carolina. These outbreaks BILLING CODE 3510±22±F Administration have raised concerns that viruses could be spread from aquaculture facilities to [I.D. 060497B] the wild shrimp stocks in U.S. coastal DEPARTMENT OF COMMERCE waters, with potentially serious Mid-Atlantic Fishery Management National Oceanic and Atmospheric implications. Council; Public Meeting To determine the likelihood and the Administration potential impacts of exotic shrimp AGENCY: National Marine Fisheries viruses on wild shrimp populations in [I.D. 060497A] Service (NMFS), National Oceanic and the Gulf of Mexico and Southeastern Atmospheric Administration (NOAA), U.S. Atlantic Coastal Waters and on Gulf of Mexico Fishery Management Commerce. cultured shrimp in aquaculture in these Council; Public Meeting ACTION: Notice of public meeting. areas, the JSA has decided to conduct an AGENCY: National Marine Fisheries ecological risk assessment. (The JSA SUMMARY: The Mid-Atlantic Fishery Service (NMFS), National Oceanic and consists of representatives from several Management Council will hold a public Atmospheric Administration (NOAA), Federal organizations, including the meeting. Commerce. National Marine Fisheries Service, U.S. DATES: The meeting will be held on June Department of Agriculture, U.S. Fish ACTION: Notice of public meeting. 25, 1997, the Council will meet from and Wildlife Service, and the U.S. 10:00 a.m. until approximately 5:00 Environmental Protection Agency). In SUMMARY: The Gulf of Mexico Fishery p.m. On June 26, 1997, the Council will support of information exchange and Management Council (Council) will meet from 8:00 a.m. until approximately education, and to determine any convene a public meeting of the Stone noon. necessary course of action to avert the Crab Advisory Panel (AP). ADDRESSES: The meeting will be held at introduction of pathogenic viruses, the DATES: This meeting will be held on July the Holiday Inn, 3845 Veterans JSA tasked a Federal interagency work 7, 1997, from 8:00 a.m. to 2:00 p.m. Memorial Highway, Ronkonkoma, NY group (Shrimp Virus Work Group; 11779; telephone: 516-585-9500. SVWG) with identifying research on ADDRESSES: This meeting will be held at the Monroe County Regional Service Council address: Mid-Atlantic Fishery shrimp viruses, the mode of virus Management Council, 300 S. New transmission, and the potential for the Center, 2798 Overseas Highway, Marathon, FL; telephone: 305–743– Street, Dover, DE 19904; telephone: introduction of these viruses into the 302–674–2331. Gulf of Mexico and Southeastern U.S. 6727. Atlantic Coastal Waters. The SVWG Council address: Gulf of Mexico FOR FURTHER INFORMATION CONTACT: helped to organize and participated in a Fishery Management Council, 3018 U.S. David R. Keifer, Executive Director, shrimp virus workshop in New Orleans, Highway 301 North, Suite 1000, Tampa, Mid-Atlantic Fishery Management LA, in June 1996. Recently, the SVWG FL 33619. Council; telephone: 302–674–2331. SUPPLEMENTARY INFORMATION: The prepared a shrimp virus report that FOR FURTHER INFORMATION CONTACT: purpose of this meeting is to review summarizes readily-available risk- Wayne Swingle, Executive Director, proposed Federal regulations to relevant information on shrimp viruses. Gulf of Mexico Fishery Management implement the Magnuson-Stevens Act, This report has been approved by the Council; telephone: 813–228–2815. JSA and is available to the public for discuss and possibly adopt for comment. SUPPLEMENTARY INFORMATION: The Secretarial approval the Monkfish Comments on the shrimp virus report purpose of the meeting will be to review Fishery Management Plan, and other received from the public (whether in effort and landing trends in the fishery fishery management matters. writing or at the public meetings) will and continue development of The above agenda items may not be be used as input to a workshop that will recommendations for a limited access taken in the order in which they appear help finalize plans for conducting a system and the structure of such a and are subject to change as necessary; shrimp virus ecological risk assessment. system. other items may be added. This meeting Meeting Locations and Times : July The AP is comprised of fishermen and may also be closed at any time to 15, in Charleston, South Carolina; July other user groups who advise the discuss employment or other internal 21, in Mobile, Alabama; and July 23, in Council on fishery issues. administrative matters. 31792 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Special Accommodations DEPARTMENT OF COMMERCE Dated: June 5, 1997. Bruce C. Morehead, The meeting is physically accessible National Oceanic and Atmospheric Acting Director, Office of Sustainable to people with disabilities. Requests for Administration Fisheries, National Marine Fisheries Service. sign language interpretation or other [I.D. 060497D] [FR Doc. 97–15239 Filed 6–10–97; 8:45 am] auxiliary aids should be directed to BILLING CODE 3510±22±F Joanna Davis at the Council (see North Pacific Fishery Management ADDRESSES) at least 5 days prior to the Council; Meetings meeting date. DEPARTMENT OF COMMERCE AGENCY: National Marine Fisheries Dated: June 5, 1997. Service (NMFS), National Oceanic and National Oceanic and Atmospheric Bruce C. Morehead, Atmospheric Administration (NOAA), Administration Acting Director, Office of Sustainable Commerce. [I.D. 060497C] Fisheries, National Marine Fisheries Service. ACTION: Notice of public meetings. [FR Doc. 97–15242 Filed 6–10–97; 8:45 am] Pacific Fishery Management Council; SUMMARY: Two meetings have been BILLING CODE 3510±22±F Public Meetings scheduled in July to begin preparation of an essential fish habitat (EFH) AGENCY: National Marine Fisheries DEPARTMENT OF COMMERCE assessment document for the fisheries Service (NMFS), National Oceanic and off Alaska, as mandated by the recent Atmospheric Administration (NOAA), National Oceanic and Atmospheric amendments to the Magnuson-Stevens Commerce. Administration Fishery Conservation and Management ACTION: Notice of public meetings. Act. Modernization Transition Committee DATES: Technical teams for Bering Sea/ SUMMARY: The Pacific Fishery (MTC); Meeting Aleutian Islands (BSAI) and Gulf of Management Council (Council) and its Alaska (GOA) groundfish will meet July advisory entities will hold public ACTION: Notice of public meeting. 8–9, 1997, in Seattle, WA, beginning at meetings. 1:00 p.m. on July 8. On July 15–17, DATES: The Council meeting will be TIME AND DATE: June 25, 1997 from 8:00 1997, the EFH Core Team will meet in held June 23–25, 1997. See a.m. to 4:30 p.m. Juneau, AK, beginning at 8:00 a.m. on SUPPLEMENTARY INFORMATION for specific July 15. dates and times. PLACE: This meeting will take place at ADDRESSES: the Silver Spring Holiday Inn, 8777 ADDRESSES: The groundfish technical The meetings will be held at the Red Lion Hotel-Seattle Airport, Georgia Avenue, Silver Spring, teams will meet July 8–9 in Seattle, WA, 18740 Pacific Highway South, Seattle, Maryland. at the Alaska Fisheries Science Center, 7600 Sand Point Way NE., Building 4, WA 98188; telephone: (206) 246–8600. STATUS: The meeting will be open to the Room 2079. Council address: Pacific Fishery public. The time between 10:30 a.m. to The EFH Core Team will meet July Management Council, 2130 SW Fifth 11:15 a.m. will be set aside for oral 15–17 in Juneau, AK, at the NMFS Avenue, Suite 224, Portland, OR 97201. comments or questions from the public. Alaska Regional Office, 709 W. 9th FOR FURTHER INFORMATION CONTACT: Approximately 50 seats will be available Street, Room 142A-B. Lawrence D. Six, Executive Director, on a first-come first-served basis for the Council address: North Pacific Pacific Fishery Management Council, public. Fishery Management Council, 605 W. 2130 SW Fifth Avenue, Suite 224, 4th Ave., Suite 306, Anchorage, AK Portland, OR; telephone: (503) 326– MATTERS TO BE CONSIDERED: This 99501–2252. 6352. meeting will cover: Consultation on 10 FOR FURTHER INFORMATION CONTACT: SUPPLEMENTARY INFORMATION: Various combined Consolidation and Cindy Hartmann, telephone: 907–586– advisory groups will be meeting on Automation Certifications, 4 combined 7585. Monday, June 23. The Council meeting Consolidation, Automation and Closure SUPPLEMENTARY INFORMATION: will begin on Monday, June 23, at Certifications, and 3 Consolidation 1. The Groundfish Technical Teams 1 p.m. with an open session. The Certifications; update on the Service for BSAI and GOA groundfish will Council meeting reconvenes on Level D Automation criteria; and an prepare a preliminary EFH assessment Tuesday, June 24, at 8 a.m. On update on the NWS and Astoria document. Wednesday, June 25, the Council will community interactions. 2. The EFH Core Team will review the convene in a closed session (not open to CONTACT PERSON FOR MORE INFORMATION: preliminary EFH assessment document the public) to discuss litigation and Mr. Nicholas R. Scheller, National and discuss preparation of EFH personnel matters. The open session Weather Service, Modernization Staff, amendments for the fishery begins at 8:30 a.m. and will adjourn 1325 East-West Highway, SSMC2, Silver management plans (FMPs) for BSAI and when Council business has been completed. Spring, Maryland 20910. Telephone: GOA groundfish, BSAI crab, and for the FMPs for scallops and salmon. The following items are on the (301) 713–0454. Council agenda: Dated: June 5, 1997. Special Accommodations A. Call to Order Nicholas R. Scheller, These meetings are physically B. Proposed Rules Implementing Manager, National Implementation Staff. accessible to people with disabilities. Magnuson-Stevens Fishery [FR Doc. 97–15218 Filed 6–10–97; 8:45 am] Requests for sign language Conservation and Management Act interpretation or other auxiliary aids 1. Agency Report BILLING CODE 3510±12±M should be directed to Cindy Hartmann, 2. Comments of Advisory Entities and 907–586–7585, at least 5 working days Public prior to the meeting date. 3. Council Comments Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31793

C. Salmon Management SSC 8 a.m. SUMMARY: The Department of the Air 1. Statement of Chair Concerning Force is amending the system WEDNESDAY, JUNE 25, 1997 1997 Process identifiers, the system names, and the 2. Sequence of Events and Status of GAP 7 a.m. (If necessary) Preamble to the Air Force’s compilation Fisheries Detailed agendas for the above of Privacy Act Systems of Records 3. Plans for Workshop on Chinook advisory meetings will be available after Notices. The system identifiers reflect Models June 13, 1997. the current numbering system used by 4. Procedure for Review and Revision Special Accommodations the Secretary of the Air Force. of Salmon Methodologies DATES: The amendments will be 5. Plan Amendments These meetings are physically effective on June 11, 1997. D. Dungeness Crab Management accessible to people with disabilities. ADDRESSES: 1. Report of the Ad Hoc Scoping Send comments to the Air Requests for sign language Force Access Programs Manager, Committee interpretation or other auxiliary aids 2. Scientific and Statistical Committee Headquarters, Air Force should be directed to Eric W. Greene at Communications and Information (SSC) and Public Comments (503) 326–6352 at least 5 days prior to 3. Determine Need for Federal Center/ITC, 1250 Air Force Pentagon, the meeting date. Management - ACTION Washington, DC 20330–1250. E. Coastal Pelagic Species Dated: June 5, 1997. FOR FURTHER INFORMATION CONTACT: Ms. Management Bruce C. Morehead, Anne Rollins at (703) 697–8674 or DSN 1. Need for Federal Management Acting Director, Office of Sustainable 227–8674. 2. Anchovy Biomass Estimate and Fisheries, National Marine Fisheries Service. SUPPLEMENTARY INFORMATION: The Quotas for 1997–1998 [FR Doc. 97–15240 Filed 6–10–97; 8:45 am] Department of the Air Force notices for F. Habitat Issues BILLING CODE 3510±22±F systems of records subject to the Privacy 1. Report of the Steering Group Act of 1974 (5 U.S.C. 552a), as amended, 2. Public Comments have been published in the Federal 3. Council - ACTION Register and are available from the G. Groundfish Management CONSUMER PRODUCT SAFETY COMMISSION address above. 1. Fixed Gear Sablefish Management The proposed amendments are not in 1997 within the purview of subsection (r) of 2. Fixed Gear Sablefish Management Sunshine Act Meeting the Privacy Act (5 U.S.C. 552a), as in 1998 and Beyond AGENCY: U.S. Consumer Product Safety amended, which would require the 3. Control Date for Potential Fixed Commission, Washington, DC 20207. Gear Sablefish Individual Quota submission of a new or altered system Program TIME AND DATE: Thursday, June 19, 1997, report for each system. The specific 4. Status of Federal Regulations 10:00 a.m. changes to the record systems being 5. Status of Fisheries and Inseason LOCATION: Room 410, East West Towers, amended are set forth below. Adjustments 4330 East West Highway, Bethesda, Dated: June 5, 1997. 6. Scoping Process for Plan Maryland. L. M. BYNUM, Amendments STATUS: Closed to the Public. 7. Capacity Reduction Program Alternate OSD Federal Register Liaison H. Administrative and Other Matters MATTER TO BE CONSIDERED: Officer, Department of Defense. 1. Report of the Budget Committee Compliance Status Report 2. Status of Legislation UNITED STATES AIR FORCE 3. Report of the Council Chairs’ The staff will brief the Commission on How Systems of Records are Arranged Meeting the status of various compliance 4. Approve September 1997 Agenda - matters. In the Air Force, records are grouped ACTION For a recorded message containing the by subject series. Each series has records 5. Appointments to Advisory Groups latest agenda information, call (301) about a specific activity or function to - ACTION 504–0709. which a subject title and number is given. Systems of records are grouped in 6. Council Comments on Draft NMFS CONTACT PERSON FOR ADDITIONAL the same way. For example, a system of Report on California Sea Lions and INFORMATION: Sadye E. Dunn, Office of records on personnel security clearances Harbor Seals - ACTION the Secretary, 4330 East West Highway, may be found in ’Security - 31,’ and one Bethesda, MD 20207 (301) 504–0800. Other Meetings about psychiatry in ’Medical Service - SCHEDULE OF ADVISORY GROUP/ Dated: June 9, 1997. 44.’ These numbers are part of the COMMITTEE MEETINGS Sadye E. Dunn, system identification which precede the MONDAY, JUNE 23, 1997 Time Secretary. notices. They look like this: F031 AF SP [FR Doc. 97–15446 Filed 6–9–97; 2:16 pm] A or F044 AFSG A. The letter ’F’ means Secretarial Center 8 a.m., June 23–25 BILLING CODE 6355±01±M Air Force. The first three digits (031 and Groundfish Management Team 8 a.m. 044) show that the records pertain to Scientific and Statistical Committee 8 Security and the Medical Service a.m. respectively. The letters that follow Habitat Steering Group 10 a.m. DEPARTMENT OF DEFENSE Groundfish Advisory Subpanel 1 p.m. indicate to whom the system applies Budget Committee After Council Department of the Air Force and/or the Office of Primary Session Responsibility (OPR). For example, in Enforcement Consultants 7 p.m. Privacy Act of 1974; System of system F031 AF SP A, AF indicates that Buyback Committee 7 p.m. Records this is an Air Force-wide system, with SP denoting Security Police as the OPR. AGENCY: Department of the Air Force, TUESDAY, JUNE 24, 1997 The last alpha designation is for internal DOD. Groundfish Advisory Panel (GAP) 8 management control. In the records ACTION: Notice to amend record systems. a.m. system F044 AFSG A, (without a space 31794 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices between the AF and SG) indicates this Flying Operations Manpower and Organization is a Surgeon General System and applies 011 038 to the office of the Surgeon General Maintenance Medical only. 021 044 Supply Law Using the Index Guide 023 Transportation 051 The systems of records maintained by Chaplain the Air Force are contained within the 024 052 subject series that are listed below. Security Scientific/Research Development This list identifies each series in the 031 Civil Engineering order in which it appears in this 061 032 Finance Management issuance. Use the list to identify subject Communications areas of interest. Having done so, use 065 033 Special Investigations the series number (for example 031 for Services Security) to locate the systems of 034 071 records grouping in which you are Public Affairs Command Policy interested. 035 090 System Identification Series Personnel Safety Subject Series 036 091

DEPARTMENT OF THE AIR FORCE PRIVACY ACT SYSTEMS OF RECORDS NOTICES

System Identifier System Name From: To:

F010 AF A F033 AF CIC A Automated Orders Data System F010 AFIS B F036 497IG A Prisoner of War (PW) Debriefing Files F010 ARPC A F033 ARPC A Background Material F010 AU A F036 AETC V Potential Faculty Rating System F010 CVAE A F033 CVAE A Secretary of the Air Force Historical Records F010 RE A F033 AFRE A Inquiries (Presidential/Congressional) F011 AF A F033 AF CIC D Locator, Registration and Postal Directory Files F011 AF B F034 AF SVA E Check Cashing Privilege Files F011 AF MP A F033 AF PC A Congressional and Other High Level Inquiries F011 AFA A F036 USAFA D Class Committee Products F011 AFA B F036 USAFA E Faculty Biographical Sketch F011 AF SG A F033 AFSG A High Level Inquiry File F011 ARPC A F033 ARPC B Locator or Personnel Data F011 LLI A F033 SAFLL A Congressional/Executive Inquiries F011 SG A F033 AFSG B Professional Inquiry Records System F012 AF A F033 AF CIC B Information Requests-Freedom of Information Act F012 AF B F033 AF CIC C Privacy Act Request File F021 AFSPC A F021 AFSPC A Cable Affairs Personnel/Agency Records F030 AF A F036 AF CIC A Biographical Data and Automated Personnel Management System F030 AF JA A F051 AF JA B Confidential Financial Disclosure Report F030 AF LE A F032 AF CE A Equal Opportunity in Off-Base Housing F030 AF LE B F032 AF CE B Off-Base Housing Referral Service F030 AF LE C F032 AF CE C Base Housing Management F030 AF LE D F032 AF CE D On/Off-Base Housing Records F030 AF MP A F036 AF PC Q Personnel Data System (PDS) F030 AF MP B F044 AF DP B Substance Abuse Reorientation and Treatment Case Files F030 AF MP C F036 AF PC R Casualty Files F030 AF MP D F036 AF PC S Contingency Operations System (COMPES) F030 AF MP E F044 AF DP A Drug Abuse Waiver Requests F030 AF SG A F044 AFSG A Aerospace Physiology Personnel Career Information System F030 AF SP A F031 AF SP O Documentation for Identification and Entry Authority F030 AFISA A F036 497IG B For Cause Discharge Program F030 AFIS C F031 497IG D Intelligence Applicant Files F030 ARPC A F036 ARPC H Applications for Identification (ID) Cards F030 ARPC B F036 ARPC I Point Credit Accounting Record System (PCARS) F030 MPC A F036 AFPC A Deceased Service Member's Dependent File F030 MPC B F036 AFPC C Indebtedness, Nonsupport Paternity F030 SG A F044 AFSG B Bioenvironmental Engineer Personnel Career Information System F030 SG B F044 AFSG C Aerospace Medicine Personnel Career Information System F033 AETC A F036 AETC A Lead Management System (LMS) F035 AF A F036 AFCA A Officer Quality Force Management Records F035 AF DP A F036 AF DP A Family Support Center (FSC) Accountability and Data Collection System F035 AF DP B F036 AF DP B Colonels Assignment File F035 AF MP A F036 AF PC A Effectiveness/Performance Reporting Systems F035 AF MP B F036 AF PC B Geographically Separated Unit Copy Officer Effectiveness/Airman Performance Report F035 AF MP C F036 AF PC C Military Personnel Records System F035 AF MP D F036 AF PC D Officer Performance Report (OPR)/Enlisted Performance Report (EPR) Appeal Case Files F035 AF MP E F036 AF PC E United States Air Force (USAF) Airman Retraining Program Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31795

DEPARTMENT OF THE AIR FORCE PRIVACY ACT SYSTEMS OF RECORDS NOTICESÐContinued

System Identifier System Name From: To:

F035 AF MP F F036 AF PC F Request for Selective Reenlistment Bonus (SRB) and/or Advance Payment of SRB F035 AF MP G F036 AF PC G Selective Reenlistment Consideration F035 AF MP H F036 AF PC H Air Force Enlistment/Commissioning Records System F035 AF MP I F036 AF PC I Incoming Clearance Records F035 AF MP J F036 AF PC J Absentee and Deserter Information Files F035 AF MP K F036 AF PC K Relocation Preparation Project Folders F035 AF MP L F036 AF PC L Unfavorable Information Files (UIF) F035 AF MP M F036 AF PC M Officer Promotion and Appointment F035 AF MP N F044 AF PC A Individual Weight Management File F035 AF MP O F036 AF PC N Unit Assigned Personnel Information F035 AF MP P F036 AF PC O General Officer Personnel Data System F035 AF MP R F036 AF PC P Application for Appointment and Extended Active Duty Files F035 AF MP S F044 AF SG N Physical Fitness File F035 AFA A F036 USAFA A Cadet Personnel Management System F035 AFA B F036 USAFA B Master Cadet Personnel Record (Active/Historical) F035 AFA C F036 USAFA C Prospective Instructor Files F035 AFOSI B F036 AFOSI A Career Development Folder F035 AFOSI C F036 AFOSI B Informational Personnel Records F035 AFOSI D F036 AFOSI C Internal Personnel Data System F035 AFRES A F036 AFRES A Personnel Interview Record F035 AFRES B F036 AFRES B Recruiters Automated Management System (RAMS) F035 AFMC A F036 AFMC A Personnel Management Information System for Air Force Materiel Command (AFMC) Com- manders F035 ARPC A F036 ARPC A Administrative Discharge for Cause on Reserve Personnel F035 ARPC B F036 ARPC B Informational Personnel Management Records F035 ARPC C F036 ARPC C Correction of Military Records of Officers and Airmen F035 ARPC D F036 ARPC D Data Change/Suspense Notification F035 ARPC E F036 ARPC E Flying Status Actions F035 ARPC G F036 ARPC F Officer Promotions F035 ARPC I F036 ARPC G Requests for Discharge from the Air Force Reserve F035 AETC B F036 AETC B Air Force Junior ROTC (AFJROTC) Applicant/Instructor System F035 AETC C F036 AETC C Air Force Reserve Officer Training Corps Qualifying Test Scoring System F035 AETC D F036 AETC D Basic Trainee Interview Record F035 AETC G F036 AETC E Recruiting Activities Management Support System (RAMSS) F035 AETC H F036 AETC F Recruiting Research and Analysis System F035 AETC I F036 AETC G Status of Ineffective Recruiter F035 AETC J F044 AETC A Drug Abuse Control Case Files F035 AETC K F036 AETC H Processing and Classification of Enlistees (PACE) F035 HC A F052 AFHC A Chaplain Information Sheet F035 HC B F052 AFHC B Chaplain Personnel Record F035 HC C F052 AFHC C Chaplain Personnel Action Folder F035 HC D F052 AFHC D Chaplain Applicant Processing Folder F035 HC E F052 AFHC E Assignment Action File F035 MP A F036 AFDP A Files on General Officers and Colonels Assigned to General Officer Position F035 MP B F036 AFRE A Statutory Tour Program F035 MPC B F036 AFPC B Civilian/Military Service Review Board F035 MPC D F036 AFPC D Correction of Military Records System F035 MPC E F036 AFPC E Disability Retirement Records F035 MPC F F036 AFPC F Health Education Records F035 MPC G F036 AFPC G Medical Officer Personnel Utilization Records F035 MPC H F036 AFPC H Medical Opinions on Board for Correction of Military Records Cases (BCMR) F035 MPC J F036 AFPC I Airmen Utilization Records System F035 MPC K F036 AFPC J Promotion Documents/Records Tracking (PRODART) and Airman Promotion Historical Records (APHR) System F035 MPC L F036 AFPC K Historical Airman Promotion Master Test File (MTF) F035 MPC P F036 AFPC L Recorder's Roster F035 MPC Q F036 AFPC M Officer Utilization Records System F035 MPC R F036 AFPC N Air Force Personnel Test 851, Test Answer Sheets F035 MPC S F036 AFPC O Aviation Service Historical Data File F035 MPC U F036 AFPC P Separation Case Files (Officer and Airman) F035 RE A F036 AFRE B Personnel Files on Statutory Tour Officers F035 RE B F036 AFRE C Files on Reserve General Officers; Colonels Assigned to General Officer Positions F035 SAFCB A F036 SAFCB A Military Records Processed by the Air Force Correction Board F035 SAFPA A F035 SAFPA B Mobilization Augmentee Training Folders F035 SAFPC A F036 SAFPC A Air Force Discharge Review Board Retain Files F035 SAFPC B F036 SAFPC B Air Force Discharge Review Board Original Case Files F035 SAFPC C F036 SAFPC C Air Force Discharge Review Board Voting Cards F035 SAFPC D F036 SAFPC D Air Force Discharge Review Board Case Control/Locator Cards F035 SG A F044 AFSG D Application for Aeronautical Rating (Senior and Chief Flight Surgeon) F035 SG B F044 AFSG E Medical Service Corps Personnel Files 31796 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF THE AIR FORCE PRIVACY ACT SYSTEMS OF RECORDS NOTICESÐContinued

System Identifier System Name From: To:

F035 SG C F044 AFSG F Veterinary Personnel Files F036 AFMC D F036 AFMC D Education/Training Management System (ETMS) F040 AA A F036 SAFAA A Civilian Personnel Files F040 AF DP A F044 AF SG I Civilian Employee Drug Testing Records F040 AF MP H F036 AF DP F Employee Assistance Program Case Record Systems F040 AF MP J F036 AF PC T Civilian Appeal and Grievance System F040 AF NAFI A F034 AF SVA A Non-Appropriated Fund (NAF) Civilian Personnel Records F040 AF NAFI B F034 AF SVA B Non-appropriated Fund (NAF) Civilian Personnel Records-Manpower F040 AFAA A F036 AFAA A Merit Promotion File F040 AFMC A F036 AFMC C Air Force Logistics Command (AFC) Senior Civilian Information File F040 AFRES A F036 AFRES C Air Reserve Technician (ART) Officer Selection Folders F040 ASG A F036 AF DP E Civilian Pay-Personnel-Manpower (PAPERMAN) F045 AETC C F036 AETC I Cadet Records F045 AFRES A F036 AFRES D Reserve Medical Service Corps Officer Appointments F045 ARPC A F036 ARPC J Air Force Reserve Application F045 ARPC B F036 ARPC K Inactive Duty Training, Extension Course Institute (ECI) Training F045 ATC E F036 AETC J Four-Year Reserve Officer Training Corps (AFROTC) Scholarship Program Files F045 MPC A F036 AFPC Q Educational Delay Board Findings F050 ACC B F036 ACC B Operations Training Development Evaluation F050 AETC A F036 AETC K Officer Training Group (OTG) Resource Management System - Officer Trainees F050 AETC B F036 AETC L Community College of the Air Force Student Record System F050 AETC I F036 AETC O Defense English Language Management Information System (DELMIS) F050 AF A F036 AETC R Student Records F050 AF MP A F036 AF PC U Education Services Program Records (Individual) F050 AF SG A F044 AF SG P Nursing Skill Inventory F050 AFA A F036 USAFA F Military Performance Average F050 AFA B F036 USAFA G Instructor Academic Records F050 AFA C F036 USAFA H Academy Athletic Records F050 AFAA A F036 AFAA B Air Force Audit Agency Office Training File F050 AFAA B F036 AFAA C Employee Training and Career Development File F050 AFC4A A F036 AFCA B Individual Academic Training Records F050 AFFSA A F036 AFFSA A USAF Air Traffic Control (ATC) Certification and Withdrawal Documentation F050 AFIC A F036 AFCA D Training Progress F050 AFOSI A F036 AFOSI D Air Force Special Investigations Academy Individual Academic Records F050 AFRES A F036 AFRES E Undergraduate Pilot and Navigator Training F050 AFMC A F036 AFMC B Systems Acquisition Schools Student Records F050 AFSPACECOM A F036 AFSPC A Space Command Operations Training F050 AMC A F036 AMC A Training Instructors (Academic Instructor Improvement/Evaluation) F050 AMC B F036 AMC B Training Progress (Permanent Student Record) F050 AMC C F036 AMC C Training Systems Research and Development Materials F050 ARPC A F036 ARPC L Professional Military Education (PME) F050 AU F F036 AETC M Air University Academic Records F050 AU G F036 AETC N Student Record Folder F050 AU J F036 AETC P Student Questionnaire F050 AU K F036 AETC Q Institutional Research Analysis System F050 SAFPA A F035 SAFPA C Graduates of Air Force Short Course in Communication (Oklahoma University) F050 SAFPA B F035 SAFPA D Information Officer Short Course Eligibility File F050 USAFE A F036 USAFE A Student Identification/Locator Card F051 AF A F036 AETC S Flying Training Records F051 AF B F036 AETC T Flying Training Records - Nonstudent F051 AF C F036 AETC U Flying Training Records - Student F051 AF JA A F051 AF JA A Judge Advocate General's Professional Conduct Files F051 AMC A F036 AMC D Air Crew Instruction Records F053 AFA A F036 USAFA I Educational Research Data Base F053 AFA B F036 USAFA J Preparatory School Records F053 AFA C F036 USAFA K Admissions Records F053 MP A F036 AFDP B Air Force Academy Appointment and Separation Records F055 ACC A F011 ACC A Air-to-Air Weapon System Evaluation Program F060 AF A F011 AF AMC A Air Force Operations Resource Management Systems (AFORMS) F060 AF B F011 AF AFMC A Contractor Flight Operations F060 ANG A F011 ANG A Progress Report, Undergraduate Pilot Training F066 AF A F021 AF IL A Core Automated Maintenance System (CAMS) F067 AF A F023 AF IL A Government Furnishings Issue Records F067 AF B F023 AF IL B Base Service Store/Tool Issue Center Access F067 AF LE A F023 AF IL C Personal Clothing and Equipment Record F067 AFMC A F023 AFMC A Equipment Maintenance Management Program (EMMP) F070 AF AFO A F065 AF AFC A Accounts Payable Records F075 AF DP A F024 AF DP A Application for Early Return of Dependents F075 AF LE A F024 AF IL A Household Goods Nontemporary Storage System (NOTEMPS) F075 AF LE B F024 AF IL B Personal Property Movement Records Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31797

DEPARTMENT OF THE AIR FORCE PRIVACY ACT SYSTEMS OF RECORDS NOTICESÐContinued

System Identifier System Name From: To:

F075 USAFE A F024 USAFE A Customs Control Records F076 AMC A F024 AF AMC A Passenger Reservation and Management System F077 AF LE A F024 AF IL C Motor Vehicle Operators' Records F080 AFMC A F061 AFMC A Aeromedical Research Data F090 AF A F032 AF CE E Visiting Officer Quarters-Transient Airman Quarters Reservation F090 AF B F032 AF CE F Unaccompanied Personnel Quarters Assignment/Termination F100 AFC4A A F033 AFCA A Military Affiliate Radio System (MARS) Member Records F110 AF JA A F051 AF JA C Legal Assistance Administration F110 AF JA B F051 AF JA D Litigation Records (Except Patents) F110 AFAFC H F065 AFAFC L Legal Administration Records of the Staff Judge Advocate F110 AFRES A F051 AFRES A Reserve Judge Advocate Training Report F110 JA A F051 AFJA A Freedom of Information Act Appeals F110 JA B F051 AFJA B Invention, Patent Application, Application Security, and Patent Files F110 JA C F051 AFJA C Judge Advocate Personnel Records F110 JA D F051 AFJA D Patent Infringement and Litigation Records F110 JA E F051 AFJA E Air Force Reserve Judge Advocate Personal Data F110 USAFE A F051 USAFE A Civil Process Case Files F111 AF JA A F051 AF JA E Automated Military Justice Analysis and Management System (AMJAMS) F111 AF JA B F051 AF JA F Courts-Martial and Article 15 Records F112 AF JA A F051 AF JA G Air Force Claims Information Management System (AFCIMS) F112 AF JA B F051 AF JA H Claims Records F120 AF IG A F090 AF IG A Inspector General Records - Freedom of Information Act F120 AF IG B F090 AF IG B Inspector General Records F123 AFISC A F091 AFIA A United States Air Force (USAF) Inspection Scheduling System F124 AF A F071 AF OSI A Counterintelligence Operations and Collection Records F124 AF B F071 AF OSI B Security and Related Investigative Records F124 AF C F071 AF OSI C Criminal Records F124 AF D F071 AF OSI D Investigative Support Records F124 AFOSI A F071 AF OSI E Badge and Credentials F124 AFOSI B F071 AF OSI F Investigative Applicant Processing Records F125 AF A F031 AF SP A Correction and Rehabilitation Records F125 AF SP A F031 AF SP B Air Force Policy Statement - Firearms Safety and Use of Force F125 AF SP B F031 AF SP C Complaint/Incident Reports F125 AF SP D F031 AF SP D Field Interview Card F125 AF SP E F031 AF SP E Security Police Automated System (SPAS) F125 AF SP F F031 AF SP F Notification Letters to Persons Barred From Entry to Air Force Installations F125 AF SP G F031 AF SP G Pickup or Restriction Order F125 AF SP H F031 AF SP H Provisional Pass F125 AF SP I F031 AF SP I Registration Records (Excluding Private Vehicle Records) F125 AF SP J F031 AF SP J Serious Incident Reports F125 AF SP K F031 AF SP K Vehicle Administration Records F125 AF SP L F031 AF SP L Traffic Accident and Violation Reports F125 AFMC A F031 AFMC A AFMC Badge and Vehicle Control Records F160 AF SG A F044 AF SG A USAF Hearing Conservation Record System F160 AF SG B F044 AF SG K Medical Professional Staffing Records F160 AF SG C F044 AF SG L Medical Treatment Facility Tumor Registry F160 AF SG D F044 AF SG B Drug Abuse Rehabilitation Report System F160 AFA A F044 USAFA A Cadet Hospital/Clinic Records F160 ARPC A F044 ARPC A Physical Examination Reports Suspense File F160 DODMERB A F044 USAFA A Department of Defense Medical Examination Review Board Medical Examination Files F160 MPC A F044 AFPC A Medical Assignment Limitation Record System F160 SG A F044 AFSG G Aircrew Standards Case File F161 AF SG A F044 AF SG H Air Force Aerospace Physiology Training Programs F161 AF SG B F044 AF SG M Compression Chamber Operations F161 AF SG C F044 AF SG O USAF Master Radiation Exposure Registry F162 AF SG A F044 AF SG C Dental Health Records F162 SG A F044 AFSG H Dental Personnel Actions F168 AF SG A F044 AF SG D Automated Medical/Dental Record System F168 AF SG B F044 AF SG Q Family Advocacy Program Record F168 AF SG C F044 AF SG E Medical Record System F168 AF SG D F044 AF SG F Medical Service Accounts F168 AF SG E F044 AF SG G Nursing Service Records F168 AF SG F F044 AF SG J Air Force Blood Program F168 AF SG G F044 AF SG R Reporting of Medical Conditions of Public Health and Military Significance F175 AFAA A F065 AFAA A Air Force Audit Agency Management Information System - Report File F176 AA A F065 SAFAA A Accounts Receivable F176 AF HC A F065 AF HC A Chaplain Fund Service Contract File F176 AF MP A F065 AF SVA A Non-appropriated Fund Instrumentalities (NAFIs) Financial System F176 AF MP B F065 AF SVA B Non-appropriated Fund (NAF) Insurance and Employee Benefit System File F176 AF MP C F065 AF SVA C Morale, Welfare, and Recreation (MWR) Participation/Membership/Training Records 31798 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF THE AIR FORCE PRIVACY ACT SYSTEMS OF RECORDS NOTICESÐContinued

System Identifier System Name From: To:

F176 AF MP D F065 AF SVA D Non-appropriated Funds Standard Payroll System F177 AETC A F065 AETC A Air Force ROTC Cadet Pay System F177 AF AFC A F065 AF AFC B Accounts Receivable Records Maintained by Accounting and Finance F177 AF AFC B F065 AF AFC C Travel Records F177 AF AFC C F065 AF AFC D Air Reserve Pay and Allowance System (ARPAS) F177 AF AFC D F065 AF AFC E Joint Uniform Military Pay System (JUMPS) F177 AF AFC E F065 AF AFC F Reports of Survey F177 AF AFC F F065 AF AFC G Civilian Pay Records F177 AF SG A F065 AF SG A Control Logs F177 AFA A F065 AFA A Cadet Accounting and Finance System F177 AFAFC A F065 AFAFC A Accounting and Finance Officer Accounts and Substantiating Documents F177 AFAFC B F065 AFAFC B Accrued Military Pay System, Discontinued F177 AFAFC C F065 AFAFC C Uniformed Services Savings Deposit Program (USSDP) F177 AFAFC D F065 AFAFC D Claims Case File - Active Duty Casualty Case Records F177 AFAFC E F065 AFAFC E Claims Case File - Corrected Military Records F177 AFAFC F F065 AFAFC F Claims Case File - Missing in Action Data F177 AFAFC G F065 AFAFC G Indebtedness and Claims F177 AFAFC I F065 AFAFC H Loss of Funds Case Files F177 AFAFC J F065 AFAFC I Military Pay Records F177 AFAFC K F065 AFAFC J Pay and Allotment Records F177 AFAFC L F065 AFAFC K USAF Retired Pay System F178 AFC4A A F038 SSG A Center Automated Manpower and Update System (CAMPUS) F178 AFMC B F038 AFMC A Manhour Accounting System (MAS) F190 AF PA A F035 AF SAFPA A Special Events Planning - Protocol F190 AF PA B F035 AF SAFPA B Hometown News Release Background Data File F190 SAFPA A F035 SAFPA A Biographies of Officers and Key Civilians Assigned to SAF/PA F190 SAFPA B F035 AF SAFPA C Official Biographies F190 SAFPA C F035 SAFPA E Public Affairs References F200 AFIS A F031 497IG C Security File for Foreign Intelligence Collection F205 AF A F031 AF SP M Personnel Security Access Records F205 AF SP A F031 AF SP N Special Security Files F205 AFISA A F031 497IG A Sensitive Compartmented Information Personnel Records F205 AFMC A F031 AFMC B Space Human Assurance and Reliability Program (SHARP) F205 AFSCO A F031 497IG B Special Security Case Files F205 AFSCO B F031 11 SPS A Presidential Support Files F205 AFSCO C F031 11 SPS B Personnel Security Clearance and Investigation Records F205 AFSP A F031 SAFPA A Requests for Access to Classified Information by Historical Researchers F211 AF MP A F036 AF DP C Family Services Volunteer Record F213 AF MP A F036 AF DP D Individual Class Record Form F213 AFMWRC A F034 AF SVA D Air Force Educational Assistance Loans F215 AF DP A F034 AF SVA C Child Development/Youth Activities Records F215 AFMWRSA A F034 AF SVA F Automated Air Force Library Information System F265 AFA A F052 USAFA A Cadet Chaplain Records F265 HC A F052 AFHC F Non-Chaplain Ecclesiastical Endorsement Files F265 HC B F052 AFHC G Chaplain Personnel Roster F265 HC D F052 AFHC H Records on Baptisms, Marriages and Funerals by Air Force Chaplains F900 ACC A F036 ACC A Special Awards File F900 AF MP A F036 AF PC V Awards and Decorations F900 AF MP B F036 AF PC W Suggestions, Inventions, Scientific Achievements F900 AFA A F036 USAFA L Cadet Awards Files F900 AFA B F036 USAFA M Thomas D. White National Defense Award

[FR Doc. 97–15164 Filed 6–10– 97; 8:45 am] DEPARTMENT OF DEFENSE ACTION: Notice of Availability. BILLING CODE 5000±01±F Department of the Army SUMMARY: The Record of Decision (ROD) was signed on May 1, 1997. Record of Decision for the Environmental Impact Statement/ The decision made in the ROD was to Environmental Impact Report (EIS/EIR) implement the proposed action and a for Proposed Combined-Forces series of mitigation measures to minimize the environmental impacts of Training Activities, New Equipment this action. The proposed action Utilization, and Range Modernization consists of three components: Program at Camp Roberts Army combined-forces training with two National Guard Training Site, California brigades of personnel and associated equipment, new equipment utilization, AGENCY: Department of the Army, DoD. and a range modernization program. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31799

The combined-forces training its continuing proliferation, there is an DEPARTMENT OF DEFENSE component would consist of increasing urgent need to protect our fighting men the intensity of training from a typical and women who go in harms way. The Defense Logistics Agency maximum of approximately 5,300 JVAP is implemented by the Department Privacy Act of 1974; New Computer soldiers to approximately 10,600 of Defense (DOD) through the Joint soldiers during an annual training Matching Program Between the Program Office for Biological Defense Department of Veterans Affairs and the period at Camp Roberts. Four new types (JPO BD) for which the Army is the lead of equipment would be introduced at Defense Manpower Data Center of the agency. The JVAP PEA characterizes Department of Defense Camp Roberts as part of the proposed and assesses the possible and probable action: the M1 Abrams series of tanks environmental consequences associated AGENCY: Defense Manpower Data would replace the M60 series tanks, with the JVAP as proposed and the Center, Defense Logistics Agency, Bradley Fighting Vehicles would alternatives considered. The PEA Department of Defense. replace the M113 series armored concludes that the proposed JVAP ACTION: Notice of a new computer personnel carriers, the Multiple-Launch activities and the alternatives analyzed matching program between the Rocket System would replace all but Department of Veterans Affairs (VA) and are not likely to have significant adverse two of the M110 8-inch howitzers, and the Department of Defense (DoD) for effects upon the quality of the the AH–64 series Apache helicopters public comment. would replace the Cobra helicopters. environment. The range modernization program Alternatives: a. Implement and SUMMARY: Subsection (e)(12) of the component would be composed of both operate the JVAP through which the Privacy Act of 1974, as amended, (5 upgrading existing ranges and Army proposes to develop, produce, U.S.C. 552a) requires agencies to constructing new ranges. store, test, and field vaccines for publish advance notice of any proposed Copies: Copies of the ROD will be biological defense which are otherwise or revised computer matching program mailed to individuals who participated unavailable (Preferred Alternative). by the matching agency for public in the public scoping process. Copies comment. The DoD, as the matching will also be sent to Federal, state, b. No action (cessation of all JVAP agency under the Privacy Act is hereby regional, and local agencies; interested activities now and in the future). giving constructive notice in lieu of organizations and agencies; and public c. Conduct current and currently direct notice to the record subjects of a libraries. Individuals not currently on planned JVAP activities in a computer matching program between the mailing list may obtain a copy by consolidated government facility. VA and DoD that their records are being matched by computer. The record request. d. Conduct current and currently FOR FURTHER INFORMATION CONTACT: subjects are VA delinquent debtors who planned JVAP activities at a may be current or former Federal Lieutenant Colonel William Parsonage, consolidated contractor facility. EIS/EIR Project Officer. Camp Roberts employees receiving Federal salary or Army National Guard Training Site, Comments: The JVAP Draft PEA is benefit payments and who are Camp Roberts, CA 93451–5000; available for public review and delinquent in their repayment of debts telephone (805) 238–8207. comment. Mr. Bruce G. Kay is the DA owed to the United States Government clearinghouse for requests for the JVAP under programs administered by VA so Dated: June 6, 1997. draft PEA and documentation from as to permit VA to pursue and collect Raymond J. Fatz, previous environmental analyses the debt by voluntary repayment or by Deputy Assistant Secretary of the Army, referenced in the draft PEA. Written administrative or salary offset (Environment, Safety, and Occupational comments for consideration in procedures under the provisions of the Health) OASA (I,L&E). Debt Collection Act of 1982. [FR Doc. 97–15276 Filed 6–10–97; 8:45 am] preparing the final Programmatic Environmental Assessment should be DATES: This proposed action will BILLING CODE 3710±08±M submitted to the address provided become effective July 11, 1997, and the below. computer matching will proceed DEPARTMENT OF DEFENSE accordingly without further notice, DATES: The agency must receive unless comments are received which Department of the Army comments on or before July 14, 1997. would result in a contrary ADDRESSES: Mail comments and determination or if the Office of Draft Programmatic Environmental document copy requests to: Joint Management and Budget or Congress Assessment (PEA) for the Joint Vaccine Acquisition Project objects thereto. Any public comment Vaccine Acquisition Program (JVAP) Management Office, JVAP–PMO (Attn: must be received before the effective date. AGENCY: Department of the Army, DOD. Mr. Bruce Kay), 568 Doughten Street, ADDRESSES: Any interested party may ACTION: Notice of availability. Fort Detrick, Maryland 21702–5040; or phone at (301) 619–2016; or fax at (301) submit written comments to the Director, Defense Privacy Office, Crystal SUMMARY: The U.S. Department of the 619–7230; e-mail: Mall 4, Room 920, 1941 Jefferson Davis Army (Army) announces the availability brucelglkay@ftdetrck- Highway, Arlington, VA 22202–4502. for public review and comment of a ccmail.army.mil. draft PEA for the JVAP. The primary FOR FURTHER INFORMATION CONTACT: Mr. objective of the JVAP is to develop, Dated: June 6, 1997. Aurelio Nepa, Jr. at telephone (703) produce, store, test, and field sufficient Raymond J. Fatz, 607–2943. quantities of U.S. Food and Drug Deputy Assistant Secretary of the Army, SUPPLEMENTARY INFORMATION: Pursuant Administration (FDA) licensed vaccines (Environment, Safety and Occupational to subsection (o) of the Privacy Act of to implement U.S. government policy Health), OASA (I L&E). 1974, as amended, (5 U.S.C. 552a), the for protecting its armed forces against [FR Doc. 97–15235 Filed 6–10–97; 8:45 am] DoD and VA have concluded an biological warfare agents. Because of the BILLING CODE 3710±08±M agreement to conduct a computer current threat of biological warfare and matching program between the agencies. 31800 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

The purpose of the match is to exchange program are the Department of Veterans information. Sections 5 and 10 of the personal data between the agencies for Affairs (VA) and the Defense Manpower Debt Collection Act will comprise the debt collection. The match will yield Data Center (DMDC) of the Department necessary authority to meet the Privacy the identity and location of the debtors of Defense (DoD). The VA is the source Act’s ‘compatibility’ condition. The within the Federal government so that agency, i.e., the activity disclosing the systems of records described below VA can pursue recoupment of the debt records for the purpose of the match. contain an appropriate routine use by voluntary payment or by The DMDC is the specific recipient disclosure between the agencies of the administrative or salary offset activity or matching agency, i.e., the information proposed in the match. The procedures. Computer matching agency that actually performs the routine use provisions are compatible appeared to be the most efficient and computer matching. with the purpose for which the effective manner to accomplish this task B. Purpose of the Match: Upon the information was collected. with the least amount of intrusion of execution of this agreement, VA will VA will use personal data from the personal privacy of the individuals provide and disclose debtor records to following Privacy Act record systems for concerned. It was therefore concluded DMDC to identify and locate any the match: Accounts Receivable-VA, and agreed upon that computer Federal personnel, employed or retired, 88VA20A6, published in the Federal matching would be the best and least who owe delinquent debts to the Register at 61 FR 60148 (Nov. 26, 1996). obtrusive manner and choice for Federal Government under certain DoD will use the record system accomplishing this requirement. programs administered by VA. VA will identified as S322.11 DMDC, entitled A copy of the computer matching use this information to initiate ‘Federal Creditor Agency Debt agreement between VA and DoD is independent collection of those debts Collection Data Base’ last published in available upon request to the public. under the provisions of the Debt the Federal Register at 61 FR 32779 on Requests should be submitted to the Collection Act of 1982 when voluntary June 25, 1996. address caption above or to the payment is not forthcoming. These E. Description of Computer Matching Department of Veterans Affairs, Debt collection efforts will include requests Program: VA, as the source agency, will Management Center, U.S. Department of by VA of the employing agency to apply provide DMDC with a electronic file Veterans Affairs, Bishop Henry Whipple administrative and/or salary offset which contains the names of delinquent Federal Building, 1 Federal Drive, Ft. procedures until such time as the debtors in programs VA administers. Snelling, MN 55111. obligation is paid in full. Upon receipt of the computer tape file of debtor accounts, DMDC will perform Set forth below is the notice of the C. Authority for Conducting the a computer match using all nine digits establishment of a computer matching Match: The legal authority for of the SSN of the VA file against a program required by paragraph 6.c. of conducting the matching program is DMDC computer database. The DMDC the Office of Management and Budget contained in the Debt Collection Act of database, established under an Guidelines on computer matching 1982 (Pub. L. 97–365), 31 U.S.C. interagency agreement between DoD, published in the Federal Register at 54 Chapter 37, Subchapter I (General) and OPM, OMB and the Department of the FR 25818 on June 19, 1989. Subchapter II (Claims of the United Treasury, consists of employment The matching agreement, as required States Government), 31 U.S.C. 3711 records of non-postal Federal employees by 5 U.S.C. 552a(r) of the Privacy Act, Collection and Compromise, 31 U.S.C. and an advance copy of this notice was and military members, active and 3716 Administrative Offset, 5 U.S.C. retired. Matching records (’hits’), based submitted on May 22, 1997, to the 5514, as amended, Installment Committee on Government Reform and on the SSN, will produce the member’s Deduction for Indebtedness (Salary name, service or agency, category of Oversight of the House of Offset); 10 U.S.C. 136, as amended, Representatives, the Committee on employee, and current work or home Under Secretary of Defense for address. The hits or matches will be Governmental Affairs of the Senate, and Personnel and Readiness; 10 U.S.C. 138, the Administrator of the Office of furnished to VA. VA is responsible for as amended, Assistant Secretaries of verifying and determining that the data Information and Regulatory Affairs, Defense; section 101(1) of Executive on the DMDC reply tape file are Office of Management and Budget Order 12731; 4 CFR Chapter II, Federal consistent with VA’s source file and for pursuant to paragraph 4d of Appendix Claims Collection Standards (General resolving any discrepancies or I to OMB Circular No. A–130, ‘Federal Accounting Office - Department of inconsistencies on an individual basis. Agency Responsibilities for Maintaining Justice); 5 CFR 550.1101 - 550.1108, VA will also be responsible for making Records about Individuals,’ dated Collection by Offset from Indebted final determinations as to positive February 8, 1996 (61 FR 6435, February Government Employees (OPM); 38 CFR identification, amount of indebtedness 20, 1996). The matching program is 1.980 - 1.994 (VA). and recovery efforts as a result of the subject to review by OMB and Congress D. Records to be Matched: The match. and shall not become effective until that systems of records maintained by the The electronic file provided by VA review period has elapsed. respective agencies under the Privacy will contain data elements of the Dated: June 5, 1997. Act of 1974, as amended, 5 U.S.C. 552a, debtor’s name, SSN, internal account Patricia L. Toppings, from which records will be disclosed for numbers and the total amount owed for Alternate OSD Federal Register Liaison the purpose of this computer match are each debtor on approximately 300,000 Officer, Department of Defense. as follows: delinquent debtors. Sections 5 and 10 of the Debt The DMDC computer database file NOTICE OF A COMPUTER MATCHING Collection Act of 1982 (public Law 97- contains approximately 8 million PROGRAM BETWEEN THE 365) authorize agencies to disclose records of active duty and retired DEPARTMENT OF VETERANS information about debtors in order to military members, including the Reserve AFFAIRS AND THE DEPARTMENT OF effect salary or administrative offsets. and Guard, and the OPM government- DEFENSE FOR DEBT COLLECTION Agencies must publish routine uses wide, non-postal Federal civilian pursuant to subsection (b)(3) of the records of current and retired Federal A. Participating Agencies: Privacy Act for those systems of records employees and Non-appropriated Fund Participants in this computer matching from which they intend to disclose this employees. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31801

DMDC will match the SSNs on the VA Management and Budget, 725 17th Responses: 2,100 tape by computer against the DMDC Street, NW., Room 10235, New Burden Hours: 28,100 database. Matching records, hits based Executive Office Building, Washington, Abstract: The Comprehensive on SSN’s, will produce data elements of DC 20503. Requests for copies of the application is for competitive awards the individual’s name, SSN, service or proposed information collection with a two-stage application process agency, and current work or home requests should be addressed to Patrick (preliminary and final). J. Sherrill, Department of Education, 600 address. [FR Doc. 97–15183 Filed 6–10–97; 8:45 am] Independence Avenue, SW., Room F. Inclusive Dates of the Matching BILLING CODE 4000±01±P Program: This computer matching 5624, Regional Office Building 3, program is subject to review by the Washington, DC 20202–4651. Office of Management and Budget and FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF ENERGY Congress. If no objections are raised by Patrick J. Sherrill (202) 708–8196. Individuals who use a either, and the mandatory 30 day public Federal Energy Regulatory telecommunications device for the deaf notice period for comment has expired Commission for this Federal Register notice with no (TDD) may call the Federal Information significant adverse public comments in Relay Service (FIRS) at 1–800–877–8339 [Docket Nos. RP97±171±005 and RP97±311± receipt resulting in a contrary between 8 a.m. and 8 p.m., Eastern time, 001] determination, then this computer Monday through Friday. matching program becomes effective SUPPLEMENTARY INFORMATION: Section ANR Pipeline Company; Notice of and the respective agencies may begin 3506 of the Paperwork Reduction Act of Proposed Changes in FERC Gas Tariff the exchange of data 30 days after the 1995 (44 U. S. C. Chapter 35) requires June 5, 1997. that the Office of Management and date of this published notice at a Take notice that, on May 29, 1997, Budget (OMB) provide interested mutually agreeable time and will be ANR Pipeline Company (ANR) tendered Federal agencies and the public an early repeated semiannually. Under no for filing as part of its FERC Gas Tariff, opportunity to comment on information circumstances shall the matching Second Revised Volume No. 1, the collection requests. OMB may amend or program be implemented before the 30 following tariff sheets to be effective waive the requirement for public day public notice period for comment June 1, 1997: has elapsed as this time period cannot consultation to the extent that public be waived. By agreement between VA participation in the approval process Substitute Twenty-Second Revised Sheet and DoD, the matching program will be would defeat the purpose of the No. 8 information collection, violate State or Substitute Fourth Revised Sheet No. 109 in effect and continue for 18 months Substitute Second Revised Sheet No. 132 with an option to renew for 12 Federal law, or substantially interfere Substitute Second Revised Sheet No. 134 additional months unless one of the with any agency’s ability to perform its parties to the agreement advises the statutory obligations. The Acting ANR states that the purpose of this other by written request to terminate or Director of the Information Resources filing is to comply with the modify the agreement. Management Group publishes this Commission’s May 19, 1997 order. That order addressed the incorporation of G. Address for Receipt of Public notice containing proposed information certain Gas Industry Standard Board Comments or Inquiries: Director, collection requests prior to submission business practices into ANR’s tariff and Defense Privacy Office, Crystal Mall 4, of these requests to OMB. Each accepted, subject to certain Room 920, 1941 Jefferson Davis proposed information collection, modifications, ANR’s proposal to allow Highway, Arlington, VA 22202–4502. grouped by office, contains the pool-to-pool transfers in ANR’s supply Telephone (703) 607–2943. following: (1) Type of review requested, e.g., new, revision, extension, existing areas. [FR Doc. 97–15163 Filed 6–10–97; 8:45 am] or reinstatement; (2) Title; (3) Summary ANR states that copies of the filing BILLING CODE 5000±04±F of the collection; (4) Description of the have been mailed to all affected need for, and proposed use of, the customers and state regulatory information; (5) Respondents and commissions. DEPARTMENT OF EDUCATION frequency of collection; and (6) Any person desiring to protest this Reporting and/or Recordkeeping filing should file a protest with the Submission for OMB Review; burden. OMB invites public comment at Federal Energy Regulatory Commission, Comment Request the address specified above. Copies of 888 First Street, NE., Washington, DC AGENCY: Department of Education. the requests are available from Patrick J. 20426, in accordance with Section 385.211 of the Commissions Rules ACTION: Submission for OMB review; Sherrill at the address specified above. Regulations. All such protests must be comment request. Dated: June 5, 1997. filed as provided in Section 154.210 of Linda C. Tague, SUMMARY: The Acting Director, the Commission’s Regulations. Protests Acting Director, Information Resources will be considered by the Commission Information Resources Management Management Group. Group, invites comments on the in determining the appropriate action to submission for OMB review as required Office of Postsecondary Education be taken, but will not serve to make by the Paperwork Reduction Act of protestants parties to the proceeding. Title: The Comprehensive Program of 1995. Copies of this filing are on file with the the Fund for the Improvement of Commission and are available for public DATES: Interested persons are invited to Postsecondary Education (New Grants). submit comments on July 11, 1997. inspection in the Public Reference Frequency: Annually. Room. ADDRESSES: Written comments should Affected Public: Not-for-profit be addressed to the Office of institutions; State, local or Tribal Gov’t, Lois D. Cashell, Information and Regulatory Affairs, SEAs or LEAs. Secretary. Attention: Dan Chenok, Desk Officer, Annual Reporting and Recordkeeping [FR Doc. 97–15205 Filed 6–10–97; 8:45 am] Department of Education, Office of Hour Burden: BILLING CODE 6717±01±M 31802 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF ENERGY file with the Commission and are Any person desiring to be heard or to available for public inspection. make any protest with reference to said Federal Energy Regulatory Lois D. Cashell, application should on or before June 26, Commission Secretary. 1997, file with the Federal Energy [FR Doc. 97–15189 Filed 6–10–97; 8:45 am] Regulatory Commission, Washington, [Docket No. EG97±65±000] BILLING CODE 6717±01±M DC 20426, a motion to intervene or a protest in accordance with the CEA Philippines Holdings LLC; Notice requirements of the Commission’s Rules of Application of CEA Philippines DEPARTMENT OF ENERGY of Practice and Procedure (18 CFR Holding LLC for Commission 385.214 or 385.211) and the Regulations Determination of Exempt Wholesale Federal Energy Regulatory under the Natural Gas Act (18 CFR Generator Status Commission 157.10). All protests filed with the [Docket No. CP97±549±000] Commission will be considered by it in June 5, 1997. determining the appropriate action to be On May 23, 1997, CEA Philippines CNG Transmission Corporation; Notice taken but will not serve to make the Holdings LLC (CPH), with its principal of Application protestants parties to the proceeding. Any person wishing to become a party office at The Corporation Trust June 5, 1997. to a proceeding or to participate as a Company, Corporate Trust Center, 1209 Take notice that on May 27, 1997, party in any hearing therein must file a Orange Street, Wilmington, Delaware CNG Transmission Corporation (CNGT), motion to intervene in accordance with filed with the Federal Energy Regulatory 445 Main Street, Clarksburg, West the Commission ’s Rules. Commission an application for Virginia 26301, filed in Docket No. Take further notice that, pursuant to determination of exempt wholesale CP97–549–000 an application pursuant the authority contained in and subject to generator status pursuant to Part 365 of to Section 7(b) of the Natural Gas Act for jurisdiction conferred upon the Federal the Commission’s Regulations. permission and approval to abandon Energy Regulation Commission by CPH is a company organized under and reclassify to gathering, 3 Sections 7 and 15 of the Natural Gas Act compressor stations and 65 transmission the laws of Delaware. CPH will be and the Commission’s Rules of Practice lines behind compressor stations, in engaged, directly or indirectly through and Procedure, a hearing will be held various counties in West Virginia and without further notice before the an Affiliate as defined in Section Pennsylvania, all as more fully set forth 2(a)(11)(B) of the Public Utility Holding Commission or its designee on this in the application on file with the application if no motion to intervene is Company Act of 1935, exclusively in Commission and open to public owning, or both owning and operating filed within the time required herein, if inspection. the Commission on its own review of a 63 MW diesel-fired cogeneration CNGT states that on October 30, 1996, the matter finds that a grant of the facility comprised of six 8 MW and CNGT filed a letter with the certificate is required by the public three 5 MW bunker-fired diesel Commission indicating that some convenience and necessity. If a motion generating units coupled with six heat classification anomalies existed in for leave to intervene is timely filed, or recovery steam generators located in CNGT’s production area which if the Commission on its own motion Cavite, Philippines and to engage in presented difficulties in administering various rules and regulations of the believes that a formal hearing is project development activities with required, further notice of such hearing respect thereto. CPH will in addition, Commission regarding transmission and gathering. CNGT notes that in several will be duly given. through an Affiliate as defined in Under the procedure herein provided Section 2(a)(11)(B), hold the voting instances gathering lines were downstream of lines classified as for, unless otherwise advised, it will be securities of a special purpose unnecessary for CNGT to appear or be subsidiary which will used solely to transmission. CNGT asserts that upon examination of these lines it believes represented at the hearing. own the land necessary for a future that the transmission classification is Lois D. Cashell, EWG which it will own or operate and inappropriate under the Commissions Secretary. which is currently under development. ‘‘primary functions’’ test for gathering. [FR Doc. 97–15185 Filed 6–10–97; 8:45 am] Any person desiring to be heard CNGT indicates that after a lengthy BILLING CODE 6717±01±M concerning the application for exempt review of the gathering systems in the wholesale generator status should file a production areas of West Virginia and motion to intervene or comments with Pennsylvania, CNGT proposes to DEPARTMENT OF ENERGY the Federal Energy Regulatory abandon and reclassify as gathering all Federal Energy Regulatory Commission, 888 First Street, NE., transmission lines found behind Commission Washington, DC 20426, in accordance compressor stations which feed with sections 385.211 and 385.214 of production into the station. [Docket No. TM97±5±32±000] the Commission’s Rules of Practice and CNGT states that there are about 65 Procedure. The Commission will limit lines that currently meet this criteria Colorado Interstate Gas Company; its consideration of comments to those and the lines range from 1 inch to 24 Notice of Tariff Filing inches in diameter. CNGT further states that concern the adequacy or accuracy that there are eight lines over 15 miles June 5, 1997. of the application. All such motions and in length and the longest is 36 miles in Take notice that, on May 30, 1997, comments should be filed on or before length. CNGT claims that there are three Colorado Interstate Gas Company (CIG) June 17, 1997 and must be served on the compressor stations that also should be filed Fourth Revised Sheet No. 11A of Applicant. Any person wishing to reclassified from transmission to its FERC Gas Tariff, First Revised become a party must file a motion to gathering since they act to feed Volume No. 1, reflecting an increase in intervene. Copies of this filing are on gathering gas to transmission its fuel reimbursement percentage for compressor stations. Lost, Unaccounted-For and Other Fuel Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31803

Gas from 0.68% to 0.76% effective July actually billed and collected, including Article III, Section I(6) of Stipulation II 1, 1997. the appropriate interest, from of the Settlement. CIG states that the increase reflected Columbia’s customers for the applicable Columbia states that copies of the by the instant filing is primarily amortization periods. filing have been served upon its traceable to conditions prevailing Any person desiring to protest this customers. during the first quarter of Calender Year filing should file a protest with the Any person desiring to protest this 1997. That period was marked by a Federal Energy Regulatory Commission, dramatic increase in prices for natural filing should file a protest with the 888 First Street, NE., Washington, DC Federal Energy Regulatory Commission, gas on the spot market. By contrast, 20426, in accordance with Section prices for natural gas liquids remained 888 First Street, NE., Washington, DC 385.211 of the Commission’s 20426, in accordance with Section relatively constant during this period. Regulations. All such protests must be CIG states that copies of this filing 385.211 of the Commission’s Rules and filed as provided in Section 154.210 of Regulations. All such protests must be have been served on CIG’s jurisdictional the Commission’s Regulations. Protests customers and public bodies. filed as provided in Section 154.210 of will be considered by the Commission the Commission’s Regulations. Protests Any person desiring to be heard or to in determining the appropriate action to protest said filing should file a motion will be considered by the Commission be taken, but will not serve to make in determining the appropriate action to to intervene or a protest with the protestants parties to the proceedings. Federal Energy Regulatory Commission, be taken, but will not serve to make Copies of this filing are on file with the 888 First Street, NE., Washington, DC protestants parties to the proceeding. Commission and are available for public 20426, in accordance with Sections Copies of this filling are on file with the inspection in the Public Reference 385.211 and 385.214 of the Commission and are available for public Room. Commission’s Rules of Practice and inspection in the Public Reference Procedure. All such motions or protests Lois D. Cashell, Room. must be filed in accordance with Secretary. Lois D. Cashell, Section 154.210 of the Commission’s [FR Doc. 97–15195 Filed 6–10–97; 8:45 am] Secretary. Regulations. Protests will be considered BILLING CODE 6717±01±M [FR Doc. 97–15196 Filed 6–10–97; 8:45 am] by the Commission in the determining BILLING CODE 6717±01±M appropriate action to be taken, but will not serve to make protestants parties to DEPARTMENT OF ENERGY the proceedings. Any person wishing to DEPARTMENT OF ENERGY become a party must file a motion to Federal Energy Regulatory intervene. Copies of this filing are on Commission Federal Energy Regulatory file with the Commission and are Commission available for public inspection in the [Docket No. RP95±408±019] Public Reference Room. [Docket No. ER97±1343±001] Lois D. Cashell, Columbia Gas Transmission Corporation; Notice of Proposed Secretary. El Paso Electric Company; Notice of Changes in FERC Gas Tariff [FR Doc. 97–15214 Filed 6–10–97; 8:45 am] Filing BILLING CODE 6717±01±M June 5, 1997. June 5, 1997. Take notice that on May 30, 1997, Columbia Gas Transmission Corporation Take notice that on May 14, 1997, El DEPARTMENT OF ENERGY (Columbia) tendered for filing as part of Paso Electric Company tendered for its FERC Gas Tariff, Second Revised filing its refund report in the above- Federal Energy Regulatory referenced docket. Commission Volume No. 1, the following revised tariff: Any person desiring to be heard or to [Docket No. RP94±158±007] protest said filing should file a motion To Be Effective February 1, 1997 to intervene or protest with the Federal Columbia Gas Transmission Fourth Revised Sheet No. 483 Third Revised Sheet No. 484 Energy Regulatory Commission, 888 Corporation; Notice of Filing Account To Be Effective June 1, 1997 First Street, NE., Washington, DC 20426, No. 191 Final Close-Out Report Third Revised Sheet No. 405 in accordance with Rules 211 and 214 Second Revised Sheet No. 406 June 5, 1997. of the Commission’s Rules of Practice On May 30, 1997, Columbia Gas Columbia is making the instant and Procedure (18 CFR 385.211 and 18 Transmission Corporation (Columbia) submission to effectuate revisions to its CFR 385.214). All such motions or tendered for filing in Docket No. RP94– tariff approved by the Commission by protests should be filed on or before 158, Columbia filed to reflect each order issued April 17, 1997, as part of June 18, 1997. Protests will be customer’s Account No. 191 monthly a comprehensive settlement agreement considered by the Commission in direct bill amounts based on the in Docket Nos. RP95–408, et al. determining the appropriate action to be customer elected amortization periods (Settlement). Sheet Nos. 405 and 406 taken, but will not serve to make and the then current FERC interest rate. reflect revisions to Section 25 of the protestants parties to the proceeding. Columbia stated in that filing that it General Terms and Conditions of Any person wishing to become a party would true-up a customer’s direct bill Columbia’s tariff, and bear an effective must file a motion to intervene. Copies amount (billed and collected) based on date of June 1, 1997, to coincide with of this filing are on file with the the actual FERC interest rates in effect Columbia’s implementation of the Commission and are available for public for the applicable amortization period. Settlement. Sheet Nos. 483 and 484 inspection. The true-up for each customer occurred reflect revisions to Section 46 of the Lois D. Cashell, in the last applicable billing month of General Terms and Conditions of Secretary. the customer’s amortization period. Columbia’s tariff, and bear an effective [FR Doc. 97–15191 Filed 6–10–97; 8:45 am] Appendix A sets forth the amounts date of February 1, 1997, pursuant to BILLING CODE 6717±01±M 31804 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF ENERGY 888 First Street, NE., Washington, DC by the Commission in determining the 20426, in accordance with Section appropriate action to be taken, but will Federal Energy Regulatory 385.211 of the Commission’s Rules of not serve to make protestants parties to Commission Practice and Procedure. All such the proceeding. Any person wishing to [Docket Nos. RP97±20±001, 002, and RP97± protests must be filed in accordance become a party must file a motion to 194±000 (not consolidated)] with Section 154.210 of the intervene. Copies of this filing are on Commission’s Regulations. Protests will file with the Commission and are El Paso Natural Gas Company; Notice be considered by the Commission in available for public inspection in the of Technical Conference determining the appropriate action to be Public Reference Room. taken but will not serve to make Lois D. Cashell, June 5, 1997. protestants parties to the proceeding. In the Commission’s order issued on Secretary. Copies of this filing are on file with the [FR Doc. 97–15208 Filed 6–10–97; 8:45 am] February 13, 1997, in the above- Commission and are available for public BILLING CODE 6717±01±M captioned proceedings concerning inspection. implementation by El Paso Natural Gas Lois D. Cashell, Company (El Paso) of the Gas Industry Secretary. Standards Board (GISB) standards, the DEPARTMENT OF ENERGY Commission held that the filings raised [FR Doc. 97–15202 Filed 6–10–97; 8:45 am] BILLING CODE 6717±01±M Federal Energy Regulatory issues for which a technical conference Commission is to be convened. On March 13, 1997, the Commission granted El Paso’s DEPARTMENT OF ENERGY request to delay its implementation of [Docket No. RP97±141±004] the GISB standards from April 1, 1997, Federal Energy Regulatory Great Lakes Gas Transmission Limited to June 1, 1997. Commission Partnership; Notice of Compliance The conference to address the issues Filing has been scheduled for Wednesday July [Docket No. TM97±2±4±000] 9, 1997, at 10:00 a.m. in a room to be June 5, 1997. designated at the offices of the Federal Granite State Gas Transmission, Inc.; Energy Regulatory Commission, 888 Notice of Proposed Changes in FERC Take notice that on May 30, 1997, First Street, NE., Washington, DC 20426. Gas Tariff Great Lakes Gas Transmission Limited Partnership (Great Lakes) tendered for All interested persons and Staff are June 5, 1997. permitted to attend. filing as part of its FERC Gas Tariff, Take notice that on May 30, 1997, Second Revised Volume No. 1, Lois D. Cashell, Granite State Gas Transmission, Inc. Substitute Second Revised Sheet No. 42 Secretary. (Granite State) tendered for filing in its and Substitute Original Sheet No. 42A, [FR Doc. 97–15197 Filed 6–10–97; 8:45 am] FERC Gas Tariff, Third Revised Volume to be effective June 1, 1997. BILLING CODE 6717±01±M No. 1, the revised tariff sheets listed below for effectiveness on July 1, 1997: Great Lakes states the above-named tariff sheets are being filed at the Third Substitute Eighth Revised Sheet No. 21 DEPARTMENT OF ENERGY direction of the Commission in its May Third Substitute Ninth Revised Sheet No. 22 19, 1997 Order on Great Lakes’ filing to Federal Energy Regulatory According to Granite State, the listed implement the GISB Standards adopted Commission tariff sheets state the surcharge for in Order No. 587. The Commission electric power costs applicable to its directed Great Lakes to remove the term [Docket No. RP97±157±004] firm transportation services for the third ‘‘business’ from its short-term release Gas Transport, Inc.; Notice of quarter of 1997. Granite State further provisions to clarify that short-term Compliance Filing states that the surcharge is derived releases will be available seven days a pursuant to the tracking procedure week. June 5, 1997. established in the Power Cost Any person desiring to protest said Take notice that on May 30, 1997, Gas Adjustment provision in its tariff, which filing should file a protest with the Transport, Inc. (GTI) tendered for filing was accepted in a Letter Order issued Federal Energy Regulatory Commission, as part of its FERC Gas Tariff, Second April 25, 1997 in Docket Nos. RP97– 888 First Street, NE., Washington, DC Revised Volume No. 1, certain tariff 300–000, et al. 20426, in accordance with Section Granite State states that copies of its sheets listed on Appendix A to the 385.211 of the Commission’s Rules and filing have been served on its firm filing, with a proposed effective date of Regulations. All such protests must be transportation customers and on the June 1, 1997. filed as provided in Section 154.210 of GTI states that these tariff sheets regulatory agencies of the states of the Commission’s Regulations. Protests reflect the requirements of the Letter Maine, Massachusetts and New will be considered by the Commission Order issued by the Federal Energy Hampshire. in determining the appropriate action to Regulatory Commission Any person desiring to be heard or to be taken, but will not serve to make (‘‘Commission’’) on May 15, 1997, in protest this filing should file a motion protestants parties to the proceeding. Docket Nos. RP97–157–000, et al. to intervene or protest with the Federal Copies of this filing are on file with the Gas Transport states that copies of Energy Regulatory Commission, 888 Commission and are available for public this compliance filing were served upon First Street, NE., Washington, DC 20426, inspection in the Commission’s Public its jurisdictional customers and the in accordance with Sections 385.214 Reference Room. Regulatory Commissions of the states of and 385.211 of the Commission’s rules Ohio and West Virginia. and regulations. All such motions or Lois D. Cashell, Any person desiring to protest said protests must be filed as provided in Secretary. filing should file a protest with the Section 154.210 of the Commission’s [FR Doc. 97–15200 Filed 6–10–97; 8:45 am] Federal Energy Regulatory Commission, Regulations. Protests will be considered BILLING CODE 6717±01±M Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31805

DEPARTMENT OF ENERGY DEPARTMENT OF ENERGY First Revised Sheet No. 4–E First Revised Sheet No. 4–F Federal Energy Regulatory Federal Energy Regulatory First Revised Volume No. 1–C Commission Commission Eighth Revised Sheet No. 4 KNI states that this filing adjusts [Docket No. RP97±178±004] [Docket Nos. RP97±161±005 and RP97±329± KNI’s fuel and loss reimbursement 002] Kern River Gas Transmission Co.; percentages through the reconciliation Notice of Compliance Filing of KNI’s actual fuel and loss volumes Iroquois Gas Transmission System, with the quantity retained in kind for L.P.; Notice of Proposed Changes in June 5, 1997. calendar year 1996. KNI proposes an FERC Gas Tariff Take notice that on May 30, 1997, effective date of July 1, 1997 for the Kern River Gas Transmission (Kern revised fuel and loss percentages. June 5, 1997. River) tendered for filing as part of its KNI states that copies of the filing were served upon KNI’s mainline and Take notice that on May 29, 1997, FERC Gas Tariff, First Revised Volume No. 1, the tariff sheets listed on the Buffalo Wallow customers, interested Iroquois Gas Transmission System, L.P. filing, in conformity with Part 154 of the public bodies, and all parties to the (Iroquois) tendered for filing as part of Regulations of the Federal Energy proceedings. its FERC Gas Tariff, First Revised Regulatory Commission to be effective Any person desiring to be heard or to Volume No. 1, the tariff sheets listed on on June 1, 1997. protest said filing should file a motion the filing, to become effective June 1, Kern River states that the purpose of to intervene or protest with the Federal 1997. this filing is to comply with the Energy Regulatory Commission, 888 Iroquois states that these sheets were Commission’s Order on Compliance First Street, NE., Washington, DC 20426, submitted in compliance with the Filing issued on May 20, 1997 in Docket in accordance with Sections 385.211 provisions of the Commission’s May 19, No. RP97–178–002. These revisions will and 385.214 of the Commission’s Rules of Practice and Procedure. All such 1997 Order Accepting and Rejecting conform Kern River’s tariff to the motions or protests must be filed as Tariff Sheets, Subject to Conditions, and standardized business practices issued provided in Section 154.210 of the Denying Rehearing, 70 FERC ¶ 61,196 by the Gas Industry Standards Board (GISB) and approved by the Commission’s Regulations. All protests (May 19, 1997). In its Order, the filed with the Commission will be Commission accepted tariff sheets that Commission. Any person desiring to protest this considered by it in determining the Iroquois had filed on April 2, 1997, appropriate action to be taken, but will subject to Iroquois filing revised sheets filing should file a protest with the Federal Energy Regulatory Commission, not serve to make protestants parties to to reflect certain changes. The tariff the proceedings. Any person wishing to sheets included herewith reflect the 888 First Street, NE., Washington, DC 20426, in accordance with Section become a party must file a petition to changes required by the Order. 385.211 of the Commission’s Rules and intervene. Copies of this filing are on Iroquois also states that copies of this Regulations. All such protests must be file with the Commission and are filing were served upon all customers filed as provided in Section 154.210 of available for public inspection. and interested state regulatory agencies. the Commission’s Regulations. Protests Lois D. Cashell, Any person desiring to protest said will be considered by the Commission Secretary. filing should file a protest with the in determining the appropriate action to [FR Doc. 97–15210 Filed 6–10–97; 8:45 am] Federal Energy Regulatory Commission, be taken, but will not serve to make BILLING CODE 6717±01±M 888 First Street, NE., Washington, DC protestants parties to the proceeding. Copies of this filing are on file with the 20426, in accordance with Section DEPARTMENT OF ENERGY 385.211 of the Commission’s Rules and Commission and are available for public inspection in the Public Reference Regulations. All such protests must be Federal Energy Regulatory Room. filed in accordance with Section Commission 154.210 of the Commission’s Lois D. Cahsell, [Docket No. RP97±154±004] Regulations. Protests will be considered Secretary. by the Commission in determining the [FR Doc. 97–15206 Filed 6–10–97; 8:45 am] Koch Gateway Pipeline Company; appropriate action to be taken, but will BILLING CODE 6717±01±M Notice of Compliance Filing not serve to make protestants parties to the proceeding. Copies of this filing are June 5, 1997. DEPARTMENT OF ENERGY on file with the Commission and are Take notice that on May 30, 1997, Koch Gateway Pipeline Company available for public inspection in the Federal Energy Regulatory Public Reference Room. (Koch) tendered for filing as part of its Commission FERC Gas Tariff, Fifth Revised Volume Lois D. Cashell, [Docket No. TM97±2±53±000] No. 1, the tariff sheets listed on the Secretary. filing, to become effective June 1, 1997. [FR Doc. 97–15204 Filed 6–10–97; 8:45 am] K N Interstate Gas Transmission Co.; Koch states that this filing is in BILLING CODE 6717±01±M Notice of Tariff Filing compliance with the Commission’s May 15, 1997 Order on Rehearing and June 5, 1997. Compliance Filing, 79 FERC ¶ 61,168. Take notice that on May 30, 1997 K The filing contains revised tariff sheets N Interstate Gas Transmission Co. (KNI) to comply with the GISB standards, as tendered for filing as part of its FERC specifically directed by the May 15, Gas Tariff, the following revised tariff 1997 Order, including the addition of a sheets, to be effective July 1, 1997: Trading Partner Agreement in Koch’s Third Revised Volume No. 1–A tariff. 31806 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Koch also states that it has served motions or protests must be filed in DEPARTMENT OF ENERGY copies of this filing upon each person accordance with Section 154.210 of the on the official service list compiled by Commission’s Regulations. Protests will Federal Energy Regulatory the Secretary in this proceeding. be considered by the Commission in Commission Any person desiring to protest this determining the appropriate action to be [Docket No. CP97±553±000] filing should file a protest with the taken but will not serve to make Federal Energy Regulatory Commission, protestants parties to the proceeding. NorAm Gas Transmission Company; 888 First Street, NE., Washington, DC Any person wishing to become a party Notice of Request Under Blanket 20426, in accordance with Section must file a motion to intervene. Copies Authorization 385.211 or the Commission’s Rules and of this filing are on file with the Regulations. All such protests must be Commission and are available for public June 5, 1997. filed as provided by Section 154.210 of inspection. Take notice that on May 30, 1997, NorAm Gas Transmission Company the Commission’s rules and regulations. Lois D. Cashell, (NGT), 525 Milam Street, P.O. Box Protests will be considered by the Secretary. Commission in determining the 21734, Shreveport, Louisiana 71151, [FR Doc. 97–15215 Filed 6–10–97; 8:45 am] appropriate action to be taken, but will filed in Docket No. CP97–553–000 a not serve to make protestants parties to BILLING CODE 6717±01±M request pursuant to Sections 157.205 the proceeding. Copies of this filing are and 157.211 of the Commission’s Regulations under the Natural Gas Act on file with the Commission and are DEPARTMENT OF ENERGY available for public inspection in the (18 CFR 157.205, 157.211) for Public Reference Room. Federal Energy Regulatory authorization to construct and operate a Lois D. Cashell, Commission new 1-inch delivery tap and first cut Secretary. regulator, located in Crittenden County, Arkansas, under NGT’s blanket [FR Doc. 97–15201 Filed 6–10–97; 8:45 am] [Docket No. TM97±12±16±000] certificate issued in Docket No. CP82– BILLING CODE 6717±01±M 384–000 and CP82–384–001, pursuant National Fuel Gas Supply Corporation; to Section 7(c) of the Natural Gas Act, Notice of Tariff Filing DEPARTMENT OF ENERGY all as more fully set forth in the request June 5, 1997. that is on file with the Commission and Federal Energy Regulatory Take notice that on May 30, 1997, open to public inspection. Commission National Fuel Gas Supply Corporation NGT proposes to construct and operate a new 1-inch delivery tap and [Docket No. TM97±11±16±000] (National) tendered for filing as part of its FERC Gas Tariff, Third Revised first cut regulator on NGT’s Line JM–23 National Fuel Gas Supply Corporation; Volume No. 1, Twenty-Second Revised located in Section 26, Township 7 Notice of Tariff Filing Sheet No. 5, with a proposed effective North, Range 8 East, West Memphis, date of July 1, 1997. Crittenden County, Arkansas to provide June 5, 1997. National states that this filing reflects service to ARKLA, a distribution Take notice that on May 30, 1997, the quarterly adjustment to the division of NorAm Energy Corporation. National Fuel Gas Supply Corporation reservation component of the EFT rate NGT states the estimated volumes to (National) tendered for filing as part of pursuant to the Transportation and be delivered to this tap are its FERC Gas Tariff, Third Revised Storage Cost Adjustment (TSCA) approximately 360 MMBtu annually Volume No. 1, Twenty-Third Revised provision set forth in Section 23 of the and 1 MMBtu on a peak day. NGT Sheet No. 5A, with a proposed effective General Terms and Conditions of declares it will transport gas to ARKLA date of June 1, 1997. National’s FERC Gas Tariff. and provide service under its tariff, that National states that pursuant to Any person desiring to be heard or to the volumes delivered are within Article II, Section 2, of the approved protest said filing should file a motion ARKLA’s certificated entitlement, and settlement at Docket Nos. RP94–367– to intervene or protest with the Federal NGT’s tariff does not prohibit the 000, et al., National is required to Energy Regulatory Commission, 888 addition of new delivery points. NGT recalculate the maximum Interruptible First Street, NE., Washington, DC 20426, asserts it has sufficient capacity to Gathering (IG) rate monthly and to in accordance with Sections 385.211 accomplish the deliveries without charge that rate on the first day of the and 385.214 of the Commission’s Rules detriment or disadvantage or following month if the result is an IG of Practice and Procedure. All such disadvantage to its other customers. NGT states the estimated total project rate more than 2 cents above or below motions or protests must be filed in costs will be approximately $2,394, and the IG rate as calculated under Section accordance with Section 154.210 of the ARKLA will reimburse NGT $1,750 of 1 of Article II. The recalculation Commission’s Regulations. Protests will the costs. produced an IG rate of 10 cents per dth. be considered by the Commission in National further states that, as Any person or the Commission’s staff determining the appropriate action to be required by Article II, Section 4, may, within 45 days after issuance of taken but will not serve to make National is filing a revised tariff sheet the instant notice by the Commission, protestants parties to the proceeding. within 30 days of the effective date for file pursuant to Rule 214 of the Any person wishing to become a party the revised IG rate. Commission’s Procedural Rules (18 CFR Any person desiring to be heard or to must file a motion to intervene. Copies 385.214) a motion to intervene or notice protest said filing should file a motion of this filing are on file with the of intervention and pursuant to Section to intervene or protest with the Federal Commission and are available for public 157.205 of the Regulations under the Energy Regulatory Commission, 888 inspection. Natural Gas Act (18 CFR 157.205) a First Street, NE., Washington, DC 20426, Lois D. Cashell, protest to the request. If no protest is in accordance with Sections 385.211 Secretary. filed within the time allowed therefor, and 385.214 of the Commission’s Rules [FR Doc. 97–15216 Filed 6–10–97; 8:45 am] the proposed activity shall be deemed to of Practice and Procedure. All such BILLING CODE 6717±01±M be authorized effective the day after the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31807 time allowed for filing a protest. If a the instant notice by the Commission, the proceeding. Copies of this filing are protest is filed and not withdrawn file pursuant to Rule 214 of the on file with the Commission and are within 30 days after the time allowed Commission’s Procedural Rules (18 CFR available for public inspection in the for filing a protest, the instant request 358.214) a motion to intervene or notice Public Reference Room. shall be treated as an application for of intervention and pursuant to Section Lois D. Cashell, authorization pursuant to Section 7 of 157.205 of the Regulations under the Secretary. the Natural Gas Act. Natural Gas Act (18 CFR 157.205) a [FR Doc. 97–15207 Filed 6–10–97; 8:45 am] Lois D. Cashell, protest to the request. If no protest is BILLING CODE 6717±01±M Secretary. filed within the time allowed therefor, [FR Doc. 97–15186 Filed 6–10–97; 8:45 am] the proposed activity shall be deemed to BILLING CODE 6717±01±M be authorized effective the day after the DEPARTMENT OF ENERGY time allowed for filing a protest. If a protest is filed and not withdrawn Federal Energy Regulatory DEPARTMENT OF ENERGY within 30 days after the time allowed Commission for filing a protest, the instant request Federal Energy Regulatory shall be treated as an application for [Docket No. ER97±2470±000] Commission authorization pursuant to Section 7 of Pacific Gas and Electric Company; [Docket No. CP97±554±000] the Natural Gas Act. Notice of Filing Lois D. Cashell, NorAm Gas Transmission Company; Secretary. June 5, 1997. Notice of Request under Blanket [FR Doc. 97–15187 Filed 6–10–97; 8:45 am] Take notice that on May 1, 1997, Authorization BILLING CODE 6717±01±M Pacific Gas and Electric Company tendered for filing an amendment in the June 5, 1997. above-referenced docket. Take notice that on May 30, 1997, DEPARTMENT OF ENERGY Any person desiring to be heard or to NorAm Gas Transmission Company protest said filing should file a motion (NGT), 1600 Smith Street, Houston, Federal Energy Regulatory to intervene or protest with the Federal Texas 77002, filed in Docket No. CP97– Commission Energy Regulatory Commission, 888 554–000 a request pursuant to Sections First Street, NE., Washington, DC 20426, 157.205, 157.211 and 157.216 of the [Docket No. RP97±179±005] in accordance with Rules 211 and 214 Commission’s Regulations under the of the Commission’s Rules of Practice Natural Gas Act (18 CFR 157.205, Ozark Gas Transmission System; and Procedure (18 CFR 385.211 and 18 157.211 and 157.216) for authorization Notice of Proposed Changes in FERC CFR 385.214). All such motions or to replace and upgrade certain facilities Gas Tariff protests should be filed on or before in Arkansas, under NGT’s blanket June 5, 1997. June 17, 1997. Protests will be certificate issued in Docket No. CP82– Take notice that on May 30, 1997, considered by the Commission in 384–000 and CP82–384–001 pursuant to Ozark Gas Transmission System (Ozark) Section 7 of the Natural Gas Act, all as determining the appropriate action to be tendered for filing as part of its FERC taken, but will not serve to make more fully set forth in the request that Gas Tariff, First Revised Volume No. 1, is on file with the Commission and open protestants parties to the proceeding. the following tariff sheets to become Any person wishing to become a party to public inspection. effective June 1, 1997: NGT proposes to upgrade a 1-inch must file a motion to intervene. Copies meter by replacing it with a 2-inch U- Substitute Second Revised Sheet No. 43B of this filing are on file with the shape meter station at an existing tap on Substitute Original Sheet No. 13B Commission and are available for public NGT’s Line TM–10 in Arkansas County, Fifth Revised Sheet No. 20 inspection. Arkansas. NGT installed this meter in Ozark states that the purpose of this Lois D. Cashell, 1995 to deliver gas to domestic and filing is to correct two minor Secretary. commercial customers served by Arkla. typographical errors, and to incorporate [FR Doc. 97–15192 Filed 6–10–97; 8:45 am] The existing meter station was the Commission’s May 21, 1997 Order BILLING CODE 6717±01±M certificated in Docket No. CP95–704 to allowing Ozark to specify that open deliver 1,105 MMBtu annually and 10 seasons for released capacity will end MMBtu on a peak day. NGT proposes to ‘‘at’’ 2 p.m. rather than ‘‘no later than’’ DEPARTMENT OF ENERGY upgrade this rural extension by 2 p.m. removing the existing 1-inch meter and Ozark states that copies of this filing Federal Energy Regulatory replacing it with a 2-inch U-shape are being served on all participants in Commission meter. The 2-inch meter would allow this proceeding. [Docket No. RP97±134±005] estimated deliveries of 4,500 MMBtu Any person desiring to protest this annually and 1,800 MMBtu on peak filing should file a protest with the Pacific Gas Transmission Company; day. The estimated cost of the new Federal Energy Regulatory Commission, Notice of Compliance Filing meter is $16,073. 888 First Street, NE., Washington, DC NGT states that the total volumes 20426, in accordance with Section June 5, 1997. delivered will not exceed total volumes 385.211 of the Commission’s Rules and Take notice that on May 30, 1997, authorized prior to this request and that Regulations. All such protests must be Pacific Gas Transmission Company NGT has sufficient capacity to filed in accordance with Section (PGT) tendered for filing as part of its accomplish deliveries without 154.210 of the Commission’s FERC Gas Tariff, First Revised Volume detriment or disadvantage to its other Regulations. Protests will be considered No. 1–A: Substitute Original Sheet No. customers. by the Commission in determining the 81A.01, Second Substitute Original Any person or the Commission’s staff appropriate action to be taken, but will Sheet No. 81A.05, Substitute First may, within 45 days after issuance of not serve to make protestants parties to Revised Sheet No. 110, and Original 31808 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Sheet Nos. 186 through 200C, to be respectively, of its FERC Gas Tariff, effective July 1, 1997. The derivation of effective June 1, 1997. Adjustment for Fuel, Line Loss and the revised FRP is based on South PGT asserts the purpose of this filing Other Unaccounted For Gas Georgia’s gas required for operations is to comply with the Commission’s Percentages. These tariff changes reflect (GRO) for the twelve-month period Order on Rehearing issued May 15, 1997 a decrease in PGT’s fuel and line loss ending April 30, 1997, adjusted for the in Docket Nos. RP97–134–000, et al. on surcharge percentage to become balance accumulated in the Deferred PGT’s compliance filing establishing effective July 1, 1997. Also included, as GRO Account at the end of said period, standards for business practices of required by Paragraphs 37 and 23, are divided by the Transportation volumes interstate natural gas pipelines. PGT workpapers showing the derivation of received during the same twelve-month states the filing conforms its FERC Gas the current fuel and line loss percentage period. Based on this calculation, the Tariff, First Revised Volume No. 1–A to in effect for each month the fuel revised FRP is 1.70% which is a the requirements of Order No. 587 in tracking mechanism has been in effect. reduction from the currently effective compliance with the May 15, 1997 PGT further states that a copy of this FRP of 2.25%. Order. filing has been served on PGT’s Any person desiring to be heard or to PGT further states a copy of this filing jurisdictional customers and interested protest said filing should file a motion has been served upon its jurisdictional state regulatory agencies. to intervene or protest with the Federal customers and interested state Any person desiring to be heard or Energy Regulatory Commission, 888 regulatory agencies, as well as the protest said filing should file a motion First Street, NE., Washington, DC 20426, official service list compiled by the to intervene or protest with the Federal in accordance with Sections 385.211 Secretary in the above-referenced Energy Regulatory Commission, 888 and 385.214 of the Commission’s Rules proceeding. First Street, NE., Washington, DC 20426, of Practice and Procedure. All such Any person desiring to protest said in accordance with Sections 385.214 motions or protests must be filed in filing should file a protest with the and 385.211 of the Commission’s Rules accordance with Section 154.210 of the Federal Energy Regulatory Commission, of Practice and Procedure. All such Commission’s Regulations. Protests will 888 First Street, NE., Washington, DC motions or protests must be filed as be considered by the Commission in 20426, in accordance with Section provided in Section 154.210 of the determining the parties to the 385.211 of the Commission’s Rules of Commission’s regulations. Protests will proceeding. Any person wishing to Practice and Procedure. All such be considered by the Commission in become a party must file a motion to protests must be filed as provided in determining the appropriate action to be intervene. Copies of this filing are on Section 154.210 of the Commission’s taken, but will not serve to make file with the Commission and are Regulations. Protests will be considered protestants parties to the proceeding. available for public inspection. by the Commission in determining the Any person wishing to become a party appropriate action to be taken, but will Lois D. Cashell, must file a motion to intervene. Copies Secretary. not serve to make protestants parties to of this filing are on file with the [FR Doc. 97–15209 Filed 6–10–97; 8:45 am] the proceeding. Copies of this filing are Commission and are available for public on file with the Commission and are inspection in the Public Reference BILLING CODE 6717±01±M available for public inspection in the Room. Public Reference Room. Lois D. Cashell, DEPARTMENT OF ENERGY Lois D. Cashell, Secretary. Secretary. [FR Doc. 97–15212 Filed 6–10–97; 8:45 am] Federal Energy Regulatory [FR Doc. 97–15198 Filed 6–10–97; 8:45 am] BILLING CODE 6717±01±M Commission BILLING CODE 6717±01±M [Docket No. RP97±137±005] DEPATMENT OF ENERGY DEPARTMENT OF ENERGY Southern Natural Gas Company; Notice of Proposed Changes in FERC Federal Energy Regulatory Gas Tariff Federal Energy Regulatory Commission Commission [Docket No. TM97±2±8±000] June 5, 1997. [Docket No. TM97±3±86±000] Take notice that on May 30, 1997, South Georgia Natural Gas Company; Southern Natural Gas Company Pacific Gas Transmission Company; Notice of Proposed Changes in FERC (Southern) tendered for filing as part of Notice of Compliance Filing Gas Tariff its FERC Gas Tariff, Seventh Revised June 5, 1997. Volume No. 1, the following revised June 5, 1997. Take notice that on May 29, 1997, Tariff sheets in compliance with the Take notice that on May 30, 1997, Commission’s May 16, 1997 Order in Pacific Gas Transmission Company South Georgia Natural Gas Company (PGT) tendered for filing as part of its this docket, to become effective June 1, (South Georgia) tendered for filing its 1997: FERC Gas Tariff, First Revised Volume FERC Gas Tariff Second Revised No. 1–A: Seventeenth Revised Sheet No. Volume No. 1, the following revised First Substitute Second Revised Sheet No. 129 5; and as part of its FERC Gas Tariff, tariff sheets to be effective July 1, 1997: Second Revised Volume No. 1: First Substitute Original Sheet No. 212h Thirteenth Revised Sheet No. 7. PGT Ninth Revised Sheet No. 5 First Substitute Second Revised Sheet No. requested the above-referenced tariff Eighth Revised Sheet No. 6 276 sheets become effective July 1, 1997. South Georgia states that the instant On July 17, 1996, the Commission PGT asserts that the purpose of this filing is submitted pursuant to Section issued Order No. 587 in Docket No. filing is to comply with Paragraphs 37 19.2 of the General Terms and RM96–1–000 which revised the and 23 of the terms and conditions of Conditions of its Tariff to adjust its fuel Commission’s regulations governing First Revised Volume No. 1–A and retention percentage (FRP) for all interstate natural gas pipelines to Second Revised Volume No. 1, transportation services on its system require such pipelines to follow certain Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31809 standardized business practices issued Commission and are available for public Regulations. All such motions or by the Gas Industry Standards Board inspection. protests must be filed in accordance (GISB) and adopted by the Commission Lois D. Cashell, with Section 154.210 of the in said Order. 18 CFR 284.10(b). Secretary. Commission’s Regulations. Protests will On April 7, 1997, Southern made its [FR Doc. 97–15190 Filed 6–10–97; 8:45 am] be considered by the Commission in Tariff filing to comply with Order No. determining the appropriate action to be BILLING CODE 6717±01±M 587 effective June 1, 1997. On May 16, taken, but will not serve to make 1997, the Commission issued an order protestants parties to the proceeding. in this docket accepting Southern’s DEPARTMENT OF ENERGY Any person wishing to become a party filing except for minor modifications. must file a motion to intervene. Copies The filing submitted herein complies Federal Energy Regulatory of this filing are on file with the with the Commission’s May 16, Order in Commission Commission and are available for public this docket. inspection in the Public Reference Any person desiring to protest this [Docket No. TM97±4±18±000] Room. filing should file a protest with the Texas Gas Transmission, Corporation; Lois D. Cashell, Federal Energy Regulatory Commission, Notice of Proposed Changes in FERC Secretary. 888 First Street, NE., Washington, DC [FR Doc. 97–15213 Filed 6–10 –97; 8:45 am] 20426, in accordance with Section Gas Tariff BILLING CODE 6717±01±M 385.211 of the Commission’s Rules of June 5, 1997. Practice and Procedure. All such Take notice that on May 30, 1997, protests must be filed in accordance Texas Gas Transmission Corporation DEPARTMENT OF ENERGY with Section 154.210 of the (Texas Gas) tendered for filing to Commission’s Regulations. Pro6tests become part of its FERC Gas Tariff, First Federal Energy Regulatory will be considered by the Commission Revised Volume No. 1, the following Commission in determining the appropriate action to revised tariff sheets to become effective [Docket No. RP97±159±005] be taken, but will not serve to make July 1, 1997: protestants parties to the proceeding. Transcontinental Gas Pipe Line Copies of this filing are on file with the First Revised Twenty-first Revised Sheet No. 10 Corporation; Notice of Compliance Commission and are available for public Filing inspection in the Public Reference First Revised Fourth Revised Sheet No. 10A First Revised Eighteenth Revised Sheet No. June 5, 1997. Room. 11 Lois D. Cashell, First Revised Fifth Revised Sheet No. 11B Take notice on May 30, 1997, Secretary. Transcontinental Gas Pipe Line Texas Gas states that the filing reflects [FR Doc. 97–15199 Filed 6–10–97; 8:45 am] Corporation (Transco) tendered for the expiration of the Miscellaneous filing certain tariff sheets to its FERC BILLING CODE 6717±01±M Revenue Credit Adjustment (MCRA) Gas Tariff, Third Revised Volume No. 1, (Docket No. TM96–5–18–000) originally which tariff sheets are listed on filed by Texas Gas on May 31, 1996, and DEPARTMENT OF ENERGY Appendices A and B to the filing. The approved by the Commission in its proposed effective date for the tariff Federal Energy Regulatory letter order dated June 17, 1996. This sheets is June 1, 1997. Commission filing also reflects the MCRA, as Transco states that the purpose of the required by Article IV of Texas Gas’s instant filing is to comply with the [Docket No. ER96±2922±000] Docket No. RP94–423 settlement Commission’s order dated May 15, 1997 agreement approved by the Tampa Electric Company; Notice of in Docket Nos. RP97–159–001 and Filing Commission’s letter order issued RP97–159–002 (the May 15 Order). The February 20, 1996, and the respective May 15 Order addressed Transco’s April June 5, 1997. Section 29 of the General Terms and 2, 1997 submission of tariff sheets Take notice that on May 9, 1997, Conditions of Texas Gas’s FERC Gas reflecting implementation of standards Tampa Electric Company tendered for Tariff, First Revised Volume No. 1. The proposed by the Gas Industry Standards filing an amendment in the above- effect of these two MCRA results in no Board (GISB) and adopted by the referenced docket. net change to the FT, NNS and SGT Commission in Order No. 587. The Any person desiring to be heard or to rates. Lastly, this filing reflects the ISS revised tariff sheets reflect the changes protest said filing should file a motion Revenue Credit Adjustment as required to Transco’s tariff required by the May to intervene or protest with the Federal by Section 5.3 of Rate Schedule ISS of 15 order. Energy Regulatory Commission, 888 Texas GAS’s FERC Gas Tariff, First Transco states that it is serving copies First Street, NE., Washington, DC 20426, Revised Volume No. 1 which results in of the instant filing to customers, State in accordance with Rules 211 and 214 a $.0001 decrease to the FT Daily Commission and other interested of the Commission’s Rules of Practice Demand and Overrun Rates. parties. and Procedure (18 CFR 385.211. and 18 Texas Gas states that copies of the Any person desiring to protest said CFR 385.214). All such motions or revised tariff sheets are being mailed to filing should file a protest with the protests should be filed on or before Texas Gas’s jurisdictional customers Federal Energy Regulatory Commission, June 17, 1997. Protests will be and interested state commissions. 888 First Street, Washington, D.C. considered by the Commission in Any person desiring to be heard or to 20426, in accordance with Section determining the appropriate action to be protest said filing should file a motion 385.211 of the Commission’s Rules and taken, but will not serve to make to intervene or protests with the Federal Regulations. All such protests should be protestants parties to the proceeding. Energy Regulatory Commission, 888 filed as provided in Section 154.210 of Any person wishing to become a party First Street, NE., Washington, DC 20426, the Commission’s Regulations. Protests must file a motion to interevene. Copies in accordance with Section 385.211 and will be considered by the Commission of this filing are on file with the 385.214 of the Commission’s Rules and in determining the appropriate action to 31810 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices be taken, but will not serve to make DEPARTMENT OF ENERGY authorization pursuant to Section 7 of protestants parties to the proceeding. the Natural Gas Act. Copies of this filing are on file with the Federal Energy Regulatory Lois D. Cashell, Commission and are available for public Commission Secretary. inspection in the Public Reference [FR Doc. 97–15188 Filed 6–10–97; 8:45 am] Room. [Docket No. CP97±556±000] BILLING CODE 6717±01±M Lois D. Cashell, Secretary. Williams Natural Gas Company; Notice of Request Under Blanket DEPARTMENT OF ENERGY [FR Doc. 97–15203 Filed 6–10–97; 8:45 am] Authorization BILLING CODE 6717±01±M Federal Energy Regulatory June 5, 1997. Commission DEPARTMENT OF ENERGY Take notice that on May 30, 1997, [Docket No. CP97±547±000] Williams Natural Gas Company (WNG), Williston Basin Interstate Pipeline Federal Energy Regulatory P.O. Box 3288, Tulsa, Oklahoma 42301, Company; Notice of Request Under Commission filed in Docket No. CP97–536–000 a request pursuant to Sections 157.205, Blanket Authorization [Docket No. TQ97±3±35±000] 157.212, and 157.216(b) of the June 5, 1997. Commission’s Regulations under the Take notice that on May 27, 1997, West Texas Gas, Inc.; Notice of Natural Gas Act (18 CFR 157.205, Williston Basin Interstate Pipeline Proposed Changes in FERC Gas Tariff 157.212, and 157.216) for approval to Company (Williston Basin), Suite 300, abandon in place approximately 5,280 200 North Third Street, Bismarck, North June 5, 1997. feet of 3-inch lateral pipeline and install Dakota 58501, filed in Docket No. CP97– Take notice that on May 30, 1997, a tap and construct approximately 2,600 547–000 a request pursuant to Sections West Texas Gas, Inc. (WTG), tendered feet of replacement four-inch lateral 157.205 and 157.216 of the for filing proposed changes in its FERC pipeline and a new high pressure Commission’s Regulations under the Gas Tariff, First Revised Volume No. 1, regulator setting to serve Missouri Gas Natural Gas Act (18 CFR 157.205, WTG submitted Twenty-Third Revised Energy in Johnson County, Missouri, 157.216) for authorization to abandon a Sheet No. 4 to be effective July 1, 1997. under Texas Gas’ blanket certificate farm tap at Station 154+90 on the This tariff sheet and the accompanying issued in Docket No. CP82–479–000, Cleveland-Grafton pipeline in Stutsman County, North Dakota, under Williston explanatory schedules constitute WTG’s pursuant to Section 7(c) of the Natural Basin’s blanket certificate issued in quarterly PGA filing submitted in Gas Act (NCA), all as more fully set Docket No. CP82–487–000 et al. accordance with the purchased gas forth in the request which is on file with pursuant to Section 7 of the Natural Gas adjustment provisions of Section 19 of the Commission and open to public Act, all as more fully set forth in the the General Germs and Conditions of inspection. request that is on file with the WTG’s FERC Gas Tariff, First Revised WNG states that the projected volume Commission and open to public Volume No. 1. of delivery will remain unchanged. inspection. WTG states that copies of the filing WNG further states that the construction Williston Basin proposes to remove were served upon WTG’s customers and cost is estimated to be $106,946 with a the tap and riser and the below-ground interested state commissions. reclaim cost estimated to be $1,500. valve will be accessed by backhoe WNG asserts that this change is not excavation of an area almost 10 feet in Any persons desiring to be heard or diameter. The valve will be shut in and to protest said filing should file a prohibited by its existing tariff and that WNG has sufficient capacity to the excavated area on existing right-of- motion to intervene or protest with the way will be backfilled and leveled. The accomplish the deliveries specified Federal Energy Regulatory Commission, owner will cultivate the area and without detriment or disadvantage to its 888 First Street, N.E., Washington, D.C. seeding is unnecessary. The farm tap is other customers. 20426, in accordance with Sections located in NE1⁄4, Section 18, TWP140N, 385.214 and 385.211 of the Any person or the Commission’s Staff RGE67W, Stutsman County, North Commission’s Rules and Regulations. may, within 45 days of the issuance of Dakota. Williston Basin states that All such motions or protests must be the instant notice by the Commission, Montana-Dakota, a local distribution filed as provided in Section 154.210 of file pursuant to Rule 214 of the company, has requested that this tap be the Commission’s Regulations. Protests Commission’s Rules of Practice and abandoned since the only end-use will be considered by the Commission Procedure (18 CFR 385.214), a motion to customer no longer requests service in determining the appropriate action to intervene and pursuant to Section there. The tap’s abandonment will not be taken, but will not serve to make the 157.205 of the regulations under the affect Williston Basin’s peak day or protestants parties to the proceeding. Natural Gas Act (18 CFR 157.205), a annual transportation to Montana- Any person wishing to become a party protest to the request. If no protest is Dakota and the total volumes delivered must file a motion to intervene. Copies filed within the time allowed therefor, will not exceed total volumes of this filing are on file with the the proposed activities shall be deemed authorized prior to this request. Any person or the Commission’s staff Commission and are available for public to be authorized effective the day after may, within 45 days after issuance of inspection in the Public Reference the time allowed for filing a protest. If Room. the instant notice by the Commission, a protest is filed and not withdrawn 30 file pursuant to Rule 214 of the Lois D. Cashell, days after the time allowed for filing a Commission’s Procedural Rules (18 CFR Secretary. protest, the instant request shall be 385.214) a motion to intervene or notice [FR Doc. 97–15217 Filed 6–10–97; 8:45 am] treated as an application for of intervention and pursuant to Section BILLING CODE 6717±01±M 157.205 of the Regulations under the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31811

Natural Gas Act (18 CFR 157.205) a determining appropriate action to be DEPARTMENT OF ENERGY protest to the request. If no protest is taken, but will not serve to make filed within the time allowed therefor, protestants parties to the proceeding. Federal Energy Regulatory Commission the proposed activity shall be deemed to Any person wishing to become a party be authorized effective the day after the must file a motion to intervene. Copies [Docket No. EG97±56±000, et al.] time allowed for filing a protest. If a of this filing are on file with the protest is filed and not withdrawn American Ref-Fuel Company of within 30 days after the time allowed Commission and are available for public inspection. Delaware County, L.P., et al.; Electric for filing a protest, the instant request Rate and Corporate Regulation Filings shall be treated as an application for Lois D. Cashell, authorization pursuant to Section 7 of Secretary. June 4, 1997. the Natural Gas Act. [FR Doc. 97–15211 Filed 6–10–97; 8:45 am] Take notice that the following filings Lois D. Cashell, BILLING CODE 6717±01±M have been made with the Commission: Secretary. 1. American Ref-Fuel Company of [FR Doc. 97–15184 Filed 6–10–97; 8:45 am] Delaware County, L.P. BILLING CODE 6717±01±M DEPARTMENT OF ENERGY [Docket No. EG97±56±000] Federal Energy Regulatory On May 30, 1997, American Ref-Fuel DEPATMENT OF ENERGY Commission Company of Delaware County, L.P. (ARC), a Delaware limited partnership, Federal Energy Regulatory [Docket No. ER97±2968±000] with its principal place of business at Commission c/o American Ref-Fuel Company, 770 [Docket No. TM97±3±49±000] Wisconsin Public Service Corporation; North Eldridge, Houston, TX 77079, Notice of Filing filed with the Federal Energy Regulatory Williston Basin Interstate Pipeline Commission an amendment to its Company; Notice of Compliance Filing June 5, 1997. application for determination of exempt wholesale generator status pursuant to June 5, 1997. Take notice that on May 15, 1997, Part 365 of the Commission’s Take notice that on May 30, 1997, Wisconsin Public Service Corporation Regulations. Williston Basin Interstate Pipeline (WPSC) tendered for filing an executed ARC is engaged directly and Company (Williston Basin), tendered for Non-Firm Open-Access Transmission exclusively in the business of operating filing its Annual Take-or-Pay Service Agreement between WPSC and a municipal solid waste-fired small Reconciliation Filing pursuant to the Oconto Electric Cooperative under power production facility with a Section 37 of the General Terms and WPSC’s Open Access Transmission maximum net power production Conditions of its FERC Gas Tariff, Tariff. WPSC states that also included in capacity of 79.5 MW which is an Second Revised Volume No. 1. More this filing is an executed service specifically, Williston Basin filed the eligible facility. All of the facility’s agreement between WPSC and the electric power net of the facility’s following tariff sheets, to be effective Cooperative under WPSC’s W–2A July 1, 1997: operating electric power is and will be Partial Requirements Wholesale Tariff. purchased at wholesale by Atlantic City Second Revised Volume No. 1 Any person desiring to be heard or to Electric Company and PECO Energy Twenty-fifth Revised Sheet No. 15 protest said filing should file a motion Company. Twenty-eighth Revised Sheet No. 16 Twenty-fourth Revised Sheet No. 18 to intervene or protest with the Federal Comment date: June 30, 1997, in Twenty-first Revised Sheet No. 21 Energy Regulatory Commission, 888 accordance with Standard Paragraph E Fourth Revised Sheet No. 321 First Street, N.E., Washington, D.C. at the end of this notice. The Original Volume No. 2 20426, in accordance with Rules 211 commission will limit its consideration Sixty-ninth Revised Sheet No. 11B and 214 of the Commission’s Rules of of comments to those that concern the Williston Basin states that the revised Practice and Procedure (18 CFR 385.211 adequacy or accuracy of the application. tariff sheets are being filed to reflect and 18 CFR 385.214). All such motions 2. Sky River Partnership recalculated fixed monthly surcharges or protests should be filed on or before [Docket No. EG97±66±000] and revised throughput surcharges to be June 17, 1997. Protests will be effective during the period July 1, 1997 considered by the Commission in On May 23, 1997, Sky River through June 30, 1998 pursuant to the determining the appropriate action to be Partnership, 13000 Jameson Road, procedures contained in Section 37 of taken, but will not serve to make Tehachapi, California 93561 (Sky River), the General Terms and Conditions of its protestants parties to the proceeding. filed with the Federal Energy Regulatory Commission an application for Williston Basin’s FERC Gas Tariff, Any person wishing to become a party determination of exempt wholesale Second Revised Volume No. 1. must file a motion to intervene. Copies Any person desiring to be heard or to generator status pursuant to Part 365 of of this filing are on file with the protest said filing should file a motion the Commission’s Regulations. to intervene or protest with the Federal Commission and are available for public Sky River owns a wind-powered Energy Regulatory Commission, 888 inspection. eligible facility with a capacity of First Street, NE, Washington, D.C. Lois D. Cashell, approximately 77 megawatts (along with 20426, in accordance with Sections Secretary. certain appurtenant interconnected 385.214 and 385.211 of the [FR Doc. 97–15193 Filed 6–10–97; 8:45 am] transmission facilities), located in Commission’s regulations. All such BILLING CODE 6717±01±M Tehachapi, California. motions or protests must be filed in Comment date: June 24, 1997, in accordance with Section 154.210 of the accordance with Standard Paragraph E Commission’s Regulations. Protests will at the end of this notice. The be considered by the Commission in Commission will limit its consideration 31812 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices of comments to those that concern the generating boiler and a single unit steam 9. Valero Power Services Company adequacy or accuracy of the application. turbine generator with a 100 percent [Docket No. ER97±1847±000] nominal load of 420 megawatts and a 3. Zond Windsystems Holding net output capacity of 400 megawatts. Take notice that on May 14, 1997, Company All of the output of the Facility will be Valero Power Services Company (Valero [Docket No. EG97±67±000] sold to PT Perusahaan Listrik Negara Power) filed an amendment to the On May 23, 1997, Zond Windsystems (Persero) (PLN), the state-owned electric notification of a change in its status Holding Company, 13000 Jameson utility of Indonesia, pursuant to a 30- which was previously filed on February Road, Tehachapi, California 93561 year Power Purchase Agreement. 26, 1997. The Amendment adopts the (ZWHC), filed with the Federal Energy Comment date: June 24, 1997, in Standards of Conduct applicable to the Regulatory Commission an application accordance with Standard Paragraph E relationship between Valero Power and for determination of exempt wholesale at the end of this notice. The Pacific Gas and Electric Company, a generator status pursuant to Part 365 of commission will limit its consideration wholly-owned subsidiary of PG&E the Commission’s Regulations. of comments to those that concern the Corporation, pending and after approval ZWHC owns a wind-powered eligible adequacy or accuracy of the application. of the proposed merger between PG&E Corporation and Valero Energy facility with a capacity of approximately 6. Pennsylvania Power Company 20 megawatts (along with certain Corporation. The Standards of Conduct appurtenant interconnected [Docket No. ER96±749±001] submitted are the same as Pacific Gas transmission facilities), located in Take notice that on April 24, 1997, and Electric Company has adopted to Tehachapi, California. Pennsylvania Power Company tendered govern its conduct with other power Comment date: June 24, 1997, in for filing its refund report in the above- marketing affiliates and which the accordance with Standard Paragraph E referenced docket. Commission has previously approved. at the end of this notice. The Comment date: June 18, 1997, in Comment date: June 18, 1997, in Commission will limit its consideration accordance with Standard Paragraph E accordance with Standard Paragraph E of comments to those that concern the at the end of this notice. at the end of this notice. adequacy or accuracy of the application. 7. Sunoco Power Marketing L.L.C. 10. Energis Resources Incorporated 4. Victory Garden Phase IV Partnership [Docket No. ER97±870±000] [Docket No. ER97±2176±001] [Docket No. EG97±68±000] Take notice that on May 22, 1997, Sunoco Power Marketing L.L.C. Take notice that on May 30, 1997, On May 23, 1997, Victory Garden (Sunoco), tendered for filing an Energis Resources Incorporated Phase IV Partnership, 13000 Jameson amended application in the above- tendered for filing copies of its Road, Tehachapi, California 93561 captioned docket seeking the additional compliance filing in the above (Victory Garden IV), filed with the authority to buy power from, and sell referenced docket in response to Federal Energy Regulatory Commission power to, all willing buyers and Ordering Paragraph (A) of the an application for determination of sellers—including, but not limited to, Commission’s Order Conditionally exempt wholesale generator status Sunoco’s affiliates—at market based Accepting For Filing Proposed Market- pursuant to Part 365 of the rates under Sunoco’s FERC Electric Rate Based Rates, Energis Resources Commission’s Regulations. Schedule No. 1. Sunoco requested that Incorporated, 79 FERC ¶ 61,170 (1997). Victory Garden IV owns a wind- it be granted this additional authority Comment date: June 18, 1997, in powered eligible facility with a capacity without prejudice to the blanket accordance with Standard Paragraph E of approximately 22.05 megawatts authorizations and waivers previously at the end of this notice. (along with certain appurtenant granted in this docket by order of the 11. Hartford Power Sales, L.L.C. interconnected transmission facilities), Director of the Division of Applications located in Tehachapi, California. of the Commission’s Electric Power [Docket No. ER97±2227±000] Comment date: June 24, 1997, in Regulation Office on April 11, 1997. Take notice that on May 22, 1997, accordance with Standard Paragraph E Sunoco also submitted a revised FERC Hartford Power Sales, L.L.C. filed a at the end of this notice. The Electric Rate Schedule No. 1 which it notice of withdrawal of its filing in this Commission will limit its consideration requested become effective within sixty docket. of comments to those that concern the (60) days from the date of its filing. Comment date: June 18, 1997, in adequacy or accuracy of the application. Comment date: June 18, 1997, in accordance with Standard Paragraph E accordance with Standard Paragraph E 5. Sachsen Holding B.V. at the end of this notice. at the end of this notice. [Docket No. EG97±69±000] 12. Wisconsin Electric Power Company On May 28, 1997, Sachsen Holding 8. Nevada Power Company [Docket No. ER97±2309±001] B.V. (Applicant) applied for a [Docket No. ER97±1655±000] determination that it will be an ‘‘exempt Take notice that on May 21, 1997, Take notice that Wisconsin Electric wholesale generator’’ within the Nevada Power Company (Nevada Power Company (Wisconsin Electric) on meaning of Section 32(a)(1) of PUHCA. Power) tendered for filing an May 27, 1997, tendered for filing its Applicant will own 45 percent of the Amendment to its Electric Service refund report in the above referenced equity capital of PT Dayalistrik Pratama Coordination Tariff (Amended proceeding. The submittal was made in (PTDP). PTDP is a special purpose Coordination Tariff) having a proposed compliance with the letter order issued company incorporated under the laws of effective date of March 1, 1997. The by the Director, Division of Applications Indonesia to develop, construct and amendment is being made to comply on May 13, 1997. own a power plant to be built in West with FERC’s Order No. 888 unbundling Copies of the filing have been served Java, Indonesia (the ‘‘Facility’’). requirements. on Madison Gas and Electric Company, Indirectly through PTDP, Applicant will Comment date: June 18, 1997, in Sonat Power Marketing, L.P., and the be an owner of the Facility. The Facility accordance with Standard Paragraph E Public Service Commission of will be a single unit, coal-fired steam at the end of this notice. Wisconsin. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31813

Comment date: June 18, 1997, in of this filing are on file with the dated April 7, 1997 and entered into by accordance with Standard Paragraph E Commission and are available for public MidAmerican and the City of Sergeant at the end of this notice. inspection. Bluff, Iowa (Sergeant Bluff) in accordance with MidAmerican’s Open 13. Houston Lighting & Power Company Lois D. Cashell, Secretary. Access Transmission Tariff. [Docket No. ER97±2524±000] [FR Doc. 97–15248 Filed 6–10–97; 8:45 am] MidAmerican requests an effective date of July 1, 1997 for the Agreements Take notice that on May 23, 1997, BILLING CODE 6717±01±P Houston Lighting & Power Company and, accordingly, seeks a waiver of the (HL&P) tendered for filing an Commission’s notice requirement. amendment to its filing in the DEPARTMENT OF ENERGY MidAmerican has served a copy of the referenced docket. filing on Sergeant Bluff, the Iowa HL&P states that copies of the Federal Energy Regulatory Utilities Board, the Illinois Commerce amendment have been served on the Commission Commission and the South Dakota Public Utilities Commission. parties to Docket No. ER97–2524 and on [Docket No. EC97±36±000, et al] the Public Utility Commission of Texas. Comment date: June 18, 1997, in Comment date: June 18, 1997, in Northeast Empire Limited Partnership accordance with Standard Paragraph E accordance with Standard Paragraph E #2, et al.; Electric Rate and Corporate at the end of this notice. at the end of this notice. Regulation Filings 4. Wisconsin Public Service 14. Keystone Energy Services June 3, 1997. Corporation [Docket No. ER97±3053±000] Take notice that the following filings [Docket No. ER97±2985±000] Take notice that on May 23, 1997, have been made with the Commission: Take notice that on May 15, 1997, Keystone Energy Services, Inc. 1. Northeast Empire Limited Wisconsin Public Service Corporation (Keystone) petitioned the Commission Partnership #2 (WPSC), tendered for filing executed for acceptance of Keystone Rate Transmission Service Agreements Schedule FERC No. 1; the granting of [Docket No. EC97±36±000] between WPSC and Wisconsin Power & certain blanket approvals, including the On May 27, 1997, Northeast Empire Light Company. The Agreements authority to sell electricity at market- Limited Partnership #2, c/o Thomas D. provide for transmission service under based rates; and the waiver of certain Emero, Twenty South Street, P.O. Box the Open Access Transmission Service Commission Regulations. 407, Bangor, Maine 04402–0407, filed Tariff, FERC Original Volume No. 11. Keystone intends to engage in with the Federal Energy Regulatory Comment date: June 18, 1997, in wholesale electric power and energy Commission an Application for accordance with Standard Paragraph E purchases and sales as a marketer. Approval of Disposition of at the end of this notice. Jurisdictional Facilities pursuant to Part Neither Keystone nor any affiliate of 5. Orange and Rockland Utilities, Inc. Keystone is in the business of generating 33 of the Commission’s Rules. or transmitting electric power. Comment date: June 17, 1997, in [Docket No. ER97±2986±000] Comment date: June 18, 1997, in accordance with Standard Paragraph E Take notice that on May 15, 1997, accordance with Standard Paragraph E at the end of this notice. Orange and Rockland Utilities, Inc. at the end of this notice. 2. Independent Power Producers of (Orange and Rockland), filed Service New York, Inc. Agreements between Orange and 15. Otter Tail Power Company Rockland and Cleveland Electric [Docket No. OA96±192±002] [Docket No. EL97±40±000] Illuminating Co., CMS Marketing Take notice that on May 12, 1997, Take notice that on May 23, 1997, Services and Trading Co., The Power Otter Tail Power Company tendered for Independent Power Producers of New Company of America L.P., and Toledo filing its refund report in the above- York, Inc. (IPPNY) filed a petition for a Edison Company. These Service referenced docket. declaratory order finding that New York Agreements specify that the Customers Comment date: June 18, 1997, in public utilities have no authority to have agreed to the rates, terms and accordance with Standard Paragraph E direct qualifying facilities under the conditions of Orange and Rockland at the end of this notice. Public Utilities Regulatory Policies Act Open Access Transmission Tariff filed of 1978 (PURPA) to comply with certain on July 9, 1996 in Docket No. OA96– Standard Paragraph orders of the New York Public Service 210–000. E. Any person desiring to be heard or Commission (PSC) respecting a QF Orange and Rockland requests waiver to protest said filing should file a monitoring program; seeking of the Commission’s sixty-day notice motion to intervene or protest with the enforcement action under PURPA requirements and an effective date of Federal Energy Regulatory Commission, § 210(h) and requesting expedited May 15, 1997 for the Service 888 First Street, N.E., Washington, D.C. consideration. Agreements. Orange and Rockland has 20426, in accordance with Rules 211 Comment date: June 18, 1997, in served copies of the filing on The New and 214 of the Commission’s Rules of accordance with Standard Paragraph E York State Public Service Commission Practice and Procedure (18 CFR 385.211 at the end of this notice. and on the Customers. Comment date: June 18, 1997, in and 18 CFR 385.214). All such motions 3. MidAmerican Energy Company or protests should be filed on or before accordance with Standard Paragraph E the comment date. Protests will be [Docket No. ER97±2984±000] at the end of this notice. considered by the Commission in Take notice that on May 15, 1997, 6. Commonwealth Electric Company & determining the appropriate action to be MidAmerican Energy Company Cambridge Electric Light Company taken, but will not serve to make (MidAmerican) filed with the protestants parties to the proceeding. Commission a Network Integration [Docket No. ER97±2987±000] Any person wishing to become a party Transmission Service Agreement and a Take notice that on May 15, 1997, must file a motion to intervene. Copies Network Operating Agreement, both Commonwealth Electric Company 31814 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

(Commonwealth) and Cambridge 8. New York State Electric & Gas 10. Public Service Electric and Gas Electric Light Company (Cambridge), Corporation Company collectively referred to as the [Docket No. ER97±2989±000] [Docket No. ER97±2991±000] Companies, tendered for filing with the Take notice that on May 16, 1997, Federal Energy Regulatory Commission Take notice that on May 16, 1997, Public Service Electric and Gas executed Service Agreements between New York State Electric & Gas Company (PSE&G) of Newark, New the Companies and the following Corporation (NYSEG), tendered for Jersey, tendered for filing an agreement Market-Based Power Sales Customers filing pursuant to Section 35.13 of the for the sale of capacity and energy to (collectively referred to herein as the Federal Energy Regulatory Plum Street Energy Marketing, Inc. Customers): Commission’s Regulations, (18 CFR 35.13), a Supplement to its September (Plum Street) pursuant to the PSE&G Bangor Hydro-Electric Company 28, 1993 Marcy-South 345 kV Bulk Power Service Tariff, presently on CNG Power Services Corporation Transmission Facilities-Transmission file with the Commission. Duke/Louis Dreyfus L.L.C. PSE&G further requests waiver of the Rainbow Energy Marketing Corporation Reinforcement Agreement (Agreement) with the New York Power Authority Commission’s Regulations such that the Town of South Hadley, Electric Light agreement can be made effective as of Department (NYPA), designated NYSEG Rate Schedule FERC No. 112. The proposed May 1, 1997. Copies of the filing have been served changes would decrease revenues for These Service Agreements specify upon Plum Street and the New Jersey the twelve month period ending June that the Customers have signed on to Board of Public Utilities. and have agreed to the terms and 30, 1998. Comment date: June 18, 1997, in conditions of the Companies’ Market- This rate filing is made pursuant to accordance with Standard Paragraph E Based Power Sales Tariffs designated as Article No. 2 of the Agreement. The at the end of this notice. Commonwealth’s Market-Based Power annual charges associated with other Sales Tariff (FERC Electric Tariff taxes, operating expenses, maintenance 11. Public Service Electric and Gas Original Volume No. 7) and Cambridge’s expenses, working capital, and Company Market-Based Power Sales Tariff (FERC associated revenue taxes are revised [Docket No. ER97±2992±000] Electric Tariff Original Volume No. 9). based on data taken from NYSEG’s Take notice that on May 16, 1997, These Tariffs, accepted by the FERC on Annual Report to the Federal Energy Public Service Electric and Gas February 27, 1997, and which have an Regulatory Commission (FERC Form 1) Company (PSE&G) of Newark, New effective date of February 28, 1997, will for the twelve months ended December Jersey, tendered for filing an agreement allow the Companies and the Customers 31, 1996. for the sale of capacity and energy to to enter into separately scheduled short- NYSEG requests an effective date of USGen Power Services, L.P. (USGen) term transactions under which the July 1, 1997, and, therefore, requests pursuant to the PSE&G Wholesale Companies will sell to the Customers waiver of the Commission’s notice Power Market Based Sales Tariff, capacity and/or energy as the parties requirements for good cause shown. presently on file with the Commission. may mutually agree. PSE&G further requests waiver of the Copies of the filing were served upon The Companies and the Customers Commission’s Regulations such that the the New York Power Authority and on have also filed Notices of Cancellation agreement can be made effective as of the Public Service Commission of the for service under the Companies’ Power May 1, 1997. State of New York. Sales and Exchange Tariffs (FERC Copies of the filing have been served Electric Tariff Original Volume Nos. 5 Comment date: June 18, 1997, in upon USGen and the New Jersey Board and 3) and the Customers’ respective accordance with Standard Paragraph E of Public Utilities. FERC Rate Schedules. at the end of this notice. Comment date: June 18, 1997, in accordance with Standard Paragraph E The Companies request an effective 9. Western Resources, Inc. at the end of this notice. date as specified on each Service [Docket No. ER97±2990±000] Agreement and Notice of Cancellation. 12. MidAmerican Energy Company Take notice that on May 16, 1997, Comment date: June 18, 1997, in [Docket No. ER97±2993±000] Western Resources, Inc., tendered for accordance with Standard Paragraph E Take notice that on May 16, 1997, at the end of this notice. filing a non-firm transmission agreement between Western Resources MidAmerican Energy Company 7. The Montana Power Company and Vastar Power Marketing, Inc. (MidAmerican), 666 Grand Avenue, Des Moines, Iowa 50303 submitted to the [Docket No. ER97±2988±000] Western Resources states that the purpose of the agreement is to permit Commission for filing a change to Take notice that on May 16, 1997, The non-discriminatory access to the MidAmerican’s Rate Schedule FERC No. Montana Power Company (Montana), transmission facilities owned or 19, as supplemented. The change tendered for filing with the Federal controlled by Western Resources in consists of the Second Amendment Energy Regulatory Commission accordance with Western Resources’ dated May 7, 1997, entered into by pursuant to 18 CFR 35.13, a Non-Firm open access transmission tariff on file MidAmerican and Central Iowa Power Point-to-Point Transmission Service with the Commission. The agreement is Cooperative (CIPCO) to Interconnection Agreement with Powerex under FERC proposed to become effective April 22, Agreement dated June 13, 1983, entered Electric Tariff, Original Volume No. 5 1997. into by Iowa-Illinois Gas and Electric (Open Access Transmission Tariff). Company (a predecessor by merger to Copies of the filing were served upon MidAmerican) and CIPCO. A copy of the filing was served upon Vastar Power Marketing, Inc. and the MidAmerican states that the purpose Powerex. Kansas Corporation Commission. of the rate schedule change is to make Comment date: June 18, 1997, in Comment date: June 18, 1997, in a technical correction to the description accordance with Standard Paragraph E accordance with Standard Paragraph E of an interconnection, add references to at the end of this notice. at the end of this notice. several normally closed points of Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31815 interconnection and modify 15. Central Illinois Public Service Centre under the NU System transmission service arrangements to Company Companies’ Sale for Resale, Tariff No. 7. NUSCO states that a copy of this filing CIPCO at a substation. [Docket No. ER97–2996–000] MidAmerican requests an effective has been mailed to the Village of date in accordance with Section IV of Take notice that on May 16, 1997, Rockville Centre. the Second Amendment and further Central Illinois Public Service Company NUSCO requests that the Service requests the Commission to accept the (CIPS), submitted a service agreement, Agreement become effective May 5, rate schedule change for filing within 60 dated May 7, 1997, establishing DuPont 1997. days of the date of its submission to the Power Marketing, Inc. as a customer Comment date: June 18, 1997, in Commission. MidAmerican has served a under the terms of CIPS’ Open Access accordance with Standard Paragraph E copy of the filing on representatives of Transmission Tariff. at the end of this notice. CIPS requests an effective date of May CIPCO, the Iowa Utilities Board, the Standard Paragraph Illinois Commerce Commission and the 7, 1997 for the service agreement. South Dakota Public Utilities Accordingly, CIPS requests waiver of E. Any person desiring to be heard or Commission. the Commission’s notice requirements. to protest said filing should file a Comment date: June 18, 1997, in Copies of this filing were served upon motion to intervene or protest with the accordance with Standard Paragraph E DuPont Power Marketing, Inc. and the Federal Energy Regulatory Commission, at the end of this notice. Illinois Commerce Commission. 888 First Street, N.E., Washington, D.C. Comment date: June 18, 1997, in 20426, in accordance with Rules 211 13. Louisville Gas and Electric and 214 of the Commission’s Rules of Company accordance with Standard Paragraph E at the end of this notice. Practice and Procedure (18 CFR 385.211 [Docket No. ER97±2994±000] and 18 CFR 385.214). All such motions Take notice that on May 16, 1997, 16. Southern California Edison Co. or protests should be filed on or before Louisville Gas and Electric Company, [Docket No. ER97±2997±000] the comment date. Protests will be tendered for filing copies of a service Take notice that on May 16, 1997, considered by the Commission in agreement between Louisville Gas and Southern California Edison Company determining the appropriate action to be Electric Company and City of Hamilton, (Edison), tendered for filing Service taken, but will not serve to make Ohio under Rate GSS. Agreements (Service Agreements) with protestants parties to the proceeding. Comment date: June 18, 1997, in the City of Vernon, Enron Power Any person wishing to become a party accordance with Standard Paragraph E Marketing, Inc., Pacific Gas & Electric, must file a motion to intervene. Copies at the end of this notice. and Valero Power Services Company for of this filing are on file with the 14. Commonwealth Edison Company Point-To-Point Transmission Service Commission and are available for public under Edison’s Open Access inspection. [Docket No. ER97±2995±000] Transmission Tariff (Tariff) filed in Lois D. Cashell, Take notice that on May 16, 1997, compliance with FERC Order No. 888, Secretary. Commonwealth Edison Company and a Notice of Cancellation of Service [FR Doc. 97–15247 Filed 6–10–97; 8:45 am] (ComEd) submitted for filing a short- Agreement Nos. 92, 93, 94, 95, 96, 97, BILLING CODE 6717±01±P term firm umbrella Service Agreement 98, 99, 100, 101, 102, 103, 104, 105, 106, for firm transactions with Illinois Power 107, 108, 109, 110, 111, 112, 113, 114, Company (IP), under the terms of and 115 under FERC Electric Tariff, DEPARTMENT OF ENERGY ComEd’s OATT, Docket No. OA97–569– Original Volume No. 4. 000 filed on March 26, 1997, and three Edison filed the executed Service Federal Energy Regulatory non-firm Service Agreements with Ohio Agreements with the Commission in Commission Edison Company (Ohio), Madison Gas compliance with applicable [Project Nos. 503, 1971, 1975±014, 2055, and Electric Company (MG&E), and Commission regulations. Edison also 2061±004, 2726, 2777±007, 2778±005Ð Delmarva Power & Light Company submitted a revised Sheet No. 152 Idaho] (DP&L), under the terms of ComEd’s (Attachment E) to the Tariff, which is an OATT, under Docket No. OA96–166– updated list of all current subscribers. Idaho Power Company; Notice of Intent 000. To Prepare an Environmental Impact ComEd also submitted an executed Edison requests waiver of the Commission’s notice requirement to Statement (EIS) and Conduct Public service agreement with Delhi Energy Scoping Meetings and a Site Visit Services, Inc. (Delhi). On April 18, 1997, permit an effective date of May 17, 1997 ComEd filed an unexecuted agreement for Attachment E, and to allow the June 5, 1997. with Delhi, to be effective March 20, Service Agreements to become effective The Federal Energy Regulatory 1997. ComEd now asks that the and terminate according to their terms. Commission (Commission) is reviewing Commission substitute the executed Copies of this filing were served upon applications to relicense and continue agreement for the previously filed the Public Utilities Commission of the operating the following Idaho Power unexecuted agreement, to be effective State of California and all interested Company hydroelectric projects: parties. March 20, 1997, the original effective Bliss Project—Project No. 1975 date. Comment date: June 18, 1997, in Lower Salmon Falls Project—Project No. ComEd requests various effective accordance with Standard Paragraph E 2061 dates, and accordingly seeks waiver of at the end of this notice. Upper Salmon Falls Project—Project No. 2777 the Commission’s requirements. Copies 17. Northeast Utilities Service Company of this filing were served upon IP, Ohio, Shoshone Falls Project—Project No. 2778 MG&E, DP&L, Delhi, and the Illinois [Docket No. ER97±2998±000] The projects are located on the Snake Commerce Commission. Take notice that on May 16, 1997, River in Twin Falls, Elmore, Gooding, Comment date: June 18, 1997, in Northeast Utilities Service Company and Jerome Counties, Idaho. accordance with Standard Paragraph E (NUSCO), tendered for filing, a Service Relicensing these projects could at the end of this notice. Agreement with the Village of Rockville constitute a major federal action 31816 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices significantly affecting the quality of the a.m. on Friday, July 18, 1997, at the documents with the Commission, to human environment. Therefore, the Boise Center on the Grove, 850 West serve a copy of the document on each Commission intends to prepare an Front Street, Boise, Idaho. person whose name appears on the Environmental Impact Statement (EIS) official service list. Further, if a party or Objectives on the projects in accordance with the interceder files comments or documents National Environmental Policy Act of At the July 15 and 17 scoping with the Commission relating to the 1969, and the Commission’s regulations. meetings, FERC staff will (1) identify merits of an issue that may affect the The EIS will objectively consider both preliminary environmental issues responsibilities of a particular resource site-specific and cumulative related to the proposed projects; (2) agency, they must also service a copy of environmental impacts of the projects attempt to identify preliminary resource the document on that resource agency. and reasonable alternatives, and will issues that are not important and do not Site Visit include an economic and engineering require detailed analysis; (3) identify analysis. reasonable alternatives to be addressed There will also be a tour of the Bliss, A draft EIS will be circulated for in the EIS; (4) solicit from the meeting Lower Salmon Falls, Upper Salmon review and comment by all interested participants all available information, Falls, and Shoshone Falls Projects on parties, and the Commission will hold especially quantified data, on the July 16, 1997. Attendees will meet at the a public meeting on the draft EIS. FERC resource issues; and (5) encourage Shoshone Falls overlook parking lot at staff will consider and respond to statements from experts and the public 9:00 a.m. Please call Craig Jones, Idaho comments received on the draft EIS in on issues that should be analyzed in the Power Company, at 208–388–2934, if the final EIS. the FERC staff’s EIS, including points of view in you plan to attend no later than July 9, conclusions and recommendations will opposition to, or in support of, the 1997. then be presented for the consideration staff’s preliminary views. For Further Information Contact: Alan of the Commission in reaching its final At the July 18 scoping meeting in Mitchnick, FERC–OHL (202) 219–2826. licensing decision. Boise, we will discuss approaches to Lois D. Cashell, The Commission staff is also evaluating cumulative impacts of the Secretary. Idaho Power’s eight relicense projects preparing a cumulative analysis of the [FR Doc. 97–15194 Filed 6–10–97; 8:45 am] and cumulative impact issues associated four projects already filed along with BILLING CODE 6717±01±M the following four other Idaho Power with the eight projects. Company projects, scheduled to be filed Procedures between 1998 and 2008: The meetings will be recorded by a ENVIRONMENTAL PROTECTION C.J. Strike Project—Project No. 2055 court reporter and all statements (oral AGENCY Upper and Lower Malad Project—Project No. and written) will become a part of the [OPP±340112; FRL 5721±2] 2726 official record of the Commission Hells Canyon Project—Project No. 1971 Swan Falls Project—Project No. 503 proceedings for the three projects. Notice of Receipt of Requests for Individuals presenting statements at the Amendments to Delete Uses in Certain Scoping meetings will be asked to clearly Pesticide Registrations Concerned citizens, special interest identify themselves for the record. groups, local governments, state and To help focus discussions at the AGENCY: Environmental Protection federal agencies, tribes, and any other scoping meeting, the FERC will mail a Agency (EPA). interested parties are invited to Scoping Document, outlining subject ACTION: Notice. comment on the scope of the areas to be addressed in the EIS, to SUMMARY: In accordance with section environmental issues that should be agencies and interested individuals on 6(f)(1) of the Federal Insecticide, analyzed in the EIS and the cumulative the project mailing list. Copies of the Fungicide and Rodenticide Act (FIFRA), analysis. Scoping will help ensure that scoping document will also be available as amended, EPA is issuing a notice of all significant issues related to this at the scoping meetings. receipt of request for amendment by proposal are addressed in the EIS. Persons choosing not to speak at the meetings, but who have views on the registrants to delete uses in certain Bliss, Lower Salmon Falls, Upper issues or information relevant to the pesticide registrations. Salmon Falls, and Shoshone Falls issues, may submit written statements DATES: Unless a request is withdrawn, Projects for inclusion in the public record at the the Agency will approve these use A scoping meeting oriented toward meetings. In addition, written scoping deletions and the deletions will become the public will be held starting at 7:00 comments may be filed with the Office effective on December 8, 1997. p.m. on Tuesday, July 15, 1997, at the of the Secretary, Dockets Room 1A, FOR FURTHER INFORMATION CONTACT: By College of Southern Idaho, located at Federal Energy Regulation Commission, mail: James A. Hollins, Office of 315 Falls Avenue West, Twin Falls, 888 First Street, NE, Washington, D.C. Pesticide Programs (7502C), Idaho. 20426 until August 18, 1997. All written Environmental Protection Agency, 401 A scoping meeting oriented toward correspondence should clearly identify M St., SW., Washington, DC 20460. the agencies will be held at 9:00 am on the appropriate projects on the first Office location for commercial courier, Thursday, July 15, 1997, at the Boise page: Project Nos. 503 (C.J. Strike), delivery, telephone number and e-mail: Center on the Grove, 850 West Front 2061–004 (Lower Salmon Falls), 2726 Room 216, Crystal Mall No. 2, 1921 Street, Boise, Idaho. (Upper and Lower Malad), 2777–007 Jefferson Davis Highway, Arlington, VA, The public and the agencies may (Upper Salmon Falls), 2778 (Shoshone (703) 305–5761; e-mail: attend either or both meetings. Falls). [email protected]. Intervenors—those on the SUPPLEMENTARY INFORMATION: Cumulative Analysis of the Snake River Commission’s service list for this Basin proceeding (parties)—are reminded of I. Introduction A scoping meeting for the cumulative the Commission’s Rules of Practice and Section 6(f)(1) of FIFRA provides that analysis will be held starting at 9:00 Procedure, requiring parties filing a registrant of a pesticide product may Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31817 at any time request that any of its II. Intent to Delete Uses being deleted should contact the pesticide registrations be amended to This Notice announces receipt by the applicable registrant before December 8, delete one or more uses. The Act further Agency of applications from registrants 1997 to discuss withdrawal of the provides that, before acting on the to delete uses in the 35 pesticide applications for amendment. This 180– request, EPA must publish a notice of registrations listed in the following day period will also permit interested receipt of any such request in the Table 1. These registrations are listed by members of the public to intercede with Federal Register. Thereafter, the registration number, product names, registrants prior to the Agency approval Administrator may approve such a active ingredients and the specific uses of the deletion. Note: Registration request. deleted. Users of these products who numbers preceded by ** indicate a 30– desire continued use on crops or sites day comment period.

TABLE 1. Ð REGISTRATIONS WITH REQUESTS FOR AMENDMENTS TO DELETE USES IN CERTAIN PESTICIDE REGISTRATIONS

EPA Reg No. Product Name Active Ingredient Delete From Label

000264±00325 SEVIN Brand 97.5% Manu facturing Carbaryl Avocados, grass for seed, maple trees Concentrate Carbaryl Insecticide forsap, oyster beds 000264±00328 SEVIN Brand Dust Base Carbaryl Insec- Carbaryl Almonds, apples, apricots, avocados, cher- ticide ries, chestnuts, citrus fruits, filberts, maple trees for sap, nectarines, olives, peaches, pecans, pistachios, plums pome fruits, prunes, trees, walnuts, oyster beds, grass for seed 000432±00566 SBP-1382/Chlorpyrifos Transparent Chlorpyrifos; Resmethrin Aircraft uses Emulsion Spray 000432±00567 SBP-1328/Chlorpyrifos Transparent Chlorpyrifos; Resmethrin Aircraft uses Emulsion Dilutable Conc. 000432±00568 UltraTEC Insecticide w/SBP-1382 Chlorpyrifos; Resmethrin Aircraft uses 000432±00658 Chlorpyrifos/Esbiothrin Transparent Chlorpyrifos; d-trans- Aircraft uses Emulsion Spray Allethrin 000432±00659 Crossfire-D TEDC w/Chlorpyrifos/ Chlorpyrifos; d-trans- Aircraft uses Esbiothrin Allethrin 000432±00660 UltraTEC Insecticide w/Chlorpyrifos Chlorpyrifos Aircraft uses TEDC 000432±00681 UlltraTEC Insecticide w/Chlorpyrifos/PY/ Chlorpyrifos; Piperonyl Aircraft uses PB TEDC butoxide; Pyrethrins 000769±00624 SMCP Malathion 50% Malathion Beef cattle, dogs, cats, potatoes, plums, prunes, indoor uses, poultry 000769±00844 Pratt Malathion 50 Spray Malathion Indoor uses 000769±00957 Pratt Malathion 25W Malathion Ornamentals, flies, apples pears, citrus, cherries, peaches, plum, prunes, beets, broccoli, brussel sprouts, cabbage, cauli- flower, kale, mustard greens, turnips, egg- plant, peppers, potatoes, tomatoes 002935±00084 Malathion 25 Spray Malathion Apples, apricots, avocadoes, cherries, fil- berts, nectarines, peaches, pears, pecans, plums, prunes, quinces, asparagus, beans, beets, carrots, dandelions, egg- plant, endive, garlic, leeks, parsley, pars- nips, peas, peppers, salsify, shallots, spin- ach, swiss chard, water cress, cabbage, broccoli, brussel sprouts, kale, mustard greens, turnips, celery, citrus, grapes, let- tuce, mushrooms, peppermint, spearmint, potatoes, tomatoes, cranberries, straw berries 004816±00707 Kicker Piperonyl butoxide; Aircraft uses Pyrethrins 010370±00059 Ford's Control Plus Roach Spray Chlorpyrifos Aircraft uses 010370±00061 Ford's Aquakill Plus Roach Spray Chlorpyrifos; Resmethrin Aircraft uses 010370±00147 Ford's 50% Malathion EC Malathion Household indoors, animals, animal quar- ters, stored grain, livestock, mushroom houses, greenhouses, plums, prunes 010370±00222 Ford's Ultra S.S.C. 12±2.5 Chlorpyrifos; Resmethrin Aircraft uses 31818 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

TABLE 1. Ð REGISTRATIONS WITH REQUESTS FOR AMENDMENTS TO DELETE USES IN CERTAIN PESTICIDE REGISTRATIONSÐContinued

EPA Reg No. Product Name Active Ingredient Delete From Label

010370±00256 Malathion 57% EC Malathion Non-medicated cattle feed blocks, bagged citrus pulp, residual warehouse spray, stored grains, field or garden seeds, ware- houses, livestock (hogs, sheep, goats, horses, beef & non- milking cattle) poultry, domestic pets (dogs & cats), plants proc- essing dry milk, food handling establish- ments (food & non-food areas), forest trees, green houses, residential homes, christmas trees, fly & mosquito control, in & around culled fruit and vegetable dumps 011678±00045** Pyrinex Technical Chlorpyrifos Indoor broadcast flea control, indoor total re- lease fogger use, paint additive use (in- cluding manhole covers, direct application pet care product (shampoos, dips, sprays) 019713±00288 Drexel Malathion ULV Malathion Soybeans, sugarbeets, tomatoes, safflower 019713±00340 Green Devil Containing Malathion Dogs, pets, household pests 034704±00544 Cythion 5-F Insecticide Malathion Almonds, apples, grape vines, greenhouse vegetables, filberts, pears, peanuts, plums, prunes, quince, safflower, soybeans, to- bacco, stored products, bagged citrus pulp, livestock, forestry, greenhouses, homes, dumps, processing plants, food establishments 039609±00001 Schultz Houseplants & Garden Insect Piperonyl butoxide; Jade plants, grapes Spray Pyrethrins 062719±00015** Dursban F Insecticide Chemical Chlorpyrifos Indoor/outdoor pest control (domestic), pets & domestic animals (indoor), aquatic uses (aquatic food crop/aquatic non-food), paint additives, sewer manhole applications 062719±00044** Dursban R Insecticide Chemical Chlorpyrifos Indoor/outdoor pest control (domestic), pets & domestic animals (indoor), aquatic uses (aquatic food crop/aquatic non-food), paint additives, sewer manhole applications 062719±00045** Dursban 30 SEC Insecticide Con- Chlorpyrifos Indoor/outdoor pest control (domestic), pets centrate & domestic animals (indoor), aquatic uses (aquatic food crop/aquatic non-food), paint additives, sewer manhole applications 062719±00066** Dursban HF Insecticidal Concentrate Chlorpyrifos Indoor/outdoor pest control (domestic), pets & domestic animals (indoor), aquatic uses (aquatic food crop/aquatic non-food), paint additives, sewer manhole applications 062719±00078** Dursban W Insecti Chlorpyrifos Indoor/outdoor pest cidal Chemical control (domestic), pets & domestic animals (in- door), aquatic uses (aquatic food crop/ aquatic non-food), paint additives, sewer manhole applications 062719±00099 Trifluralin Technical Trifluralin Forage legumes 062719±00131 Treflan TR-10 Trifluralin Forage legumes 062719±00225** XRM-5222 Chlorpyrifos Indoor/outdoor pest control (domestic), pets & domestic animals (indoor), aquatic uses (aquatic food crop/aquatic non-food), paint additives, sewer manhole applications 062719±00250 Treflan HFP Trifluralin Forage legumes 063310±00008 Rhizopon AA Water Indole-3-butyric acid Lawns, sod, golf Soluble Tablets greens, tees, fairways, greenhouses, field crops, field crop application timing, chemigation systems connected to public water sys- tems, sprinkler chemigation 066222±00008 Farmrite Folpet 50±W Folpet Crabapples, leeks, shallots Note: Registration numbers preceded by ** indicate a 30±day comment period. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31819

The following Table 2 includes the names and addresses of record for all registrants of the products in Table 1, in sequence by EPA company number.

TABLE 2. Ð REGISTRANTS REQUESTING AMENDMENTS TO DELETE USES IN CERTAIN PESTICIDE REGISTRATIONS

Com- pany No. Company Name and Address

000264 Rhone-Poulenc Ag Co., P.O. Box 12014, T.W. Alexander Dr., Research Triangle Park, NC 27709. 000432 AgrEvo Environmental Health, 95 Chestnut Ridge Road, Montvale, NJ 07645. 000769 SureCo, Inc., 10012 N. Dale Mabry, Ste. 221, Tampa, FL 33618. 002935 Wilbur-Ellis Company, 191 W. Shaw Ave., Suite 107, Fresno, CA 93704. 004816 AgrEvo Environmental Health, 95 Chestnut Ridge Road, Montvale, NJ 07645. 010370 AgrEvo Environmental Health, 95 Chestnut Ridge Road, Montvale, NJ 07645. 011678 Makhteshim-Agan of North America Inc., 551 Fifth Avenue., Suite 1100, New York, NY 10176. 019713 Drexel Chemical Co., P.O. Box 13327, 1700 Channel Ave., Memphis, TN 38113. 034704 Platte Chemical Co., P.O. Box 667, Greeley, CO 80632. 039609 Schultz Company, 14090 Riverport Dr., P.O. Box 173, Maryland Heights, MO 63043. 062719 DowElanco, 9330 Zionsville Rd., Indianapolis, IN 46268. 063310 Hortus USA Corp., P.O. Box 1956 Old Chelsea Sta., New York, NY 10113. 066222 Makhteshim-Agan of North America Inc., 551 Fifth Avenue, Suite 1100, New York, NY 10176.

III. Existing Stocks Provisions FOR FURTHER INFORMATION CONTACT: Farm Credit Administration in McLean, Floyd Fithian, Secretary to the Farm Virginia, on June 5, 1997, from 1:45 p.m. The Agency has authorized registrants Credit Administration Board, (703) 883– until such time as the Board concluded to sell or distribute product under the 4025, TDD (703) 883–4444. its business. previously approved labeling for a period of 18 months after approval of ADDRESSES: Farm Credit FOR FURTHER INFORMATION CONTACT: the revision, unless other restrictions Administration, 1501 Farm Credit Drive, Floyd Fithian, Secretary to the Farm have been imposed, as in special review McLean, Virginia 22102–5090. Credit Administration Board, (703) 883– actions. SUPPLEMENTARY INFORMATION: This 4025, TDD (703) 883–4444. meeting of the Board will be open to the ADDRESSES: Farm Credit List of Subjects public (limited space available). In order Administration, 1501 Farm Credit Drive, to increase the accessibility to Board McLean, Virginia 22102–5090. Environmental protection, Pesticides meetings, persons requiring assistance and pests, Product registrations. SUPPLEMENTARY INFORMATION: This should make arrangements in advance. meeting of the Board was open to the Dated: June 2, 1997. The matters to be considered at the public (limited space available). In order Linda A. Travers, meeting are: to increase the accessibility to Board Director, Information Resources Services Open Session meetings, persons requiring assistance Division, Office of Pesticide Programs. A. Approval of Minutes should make arrangements in advance. B. Report The matter considered at the meeting [FR Doc. 97–14985 Filed 6-10-97; 8:45 am] —FCSBA Quarterly Report was: BILLING CODE 6560±50±F C. New Business Regulations —Other Financing Institutions [12 CFR Open Session part 614] (Proposed) A. New Business Dated: June 9, 1997. Dated: June 9, 1997. FARM CREDIT ADMINISTRATION Floyd Fithian, Floyd Fithian, Secretary, Farm Credit Administration Board. Farm Credit Administration Board; Secretary, Farm Credit Administration Board. Regular Meeting; Sunshine Act [FR Doc. 97–15421 Filed 6–9–97; 12:58 pm] [FR Doc. 97–15422 Filed 6–9–97; 12:58 pm] Meeting BILLING CODE 6705±01±P BILLING CODE 6705±01±P

AGENCY: Farm Credit Administration. SUMMARY: Notice is hereby given, FARM CREDIT ADMINISTRATION FARM CREDIT ADMINISTRATION pursuant to the Government in the Farm Credit Administration Board; Farm Credit Administration Board; Sunshine Act (5 U.S.C. 552b(e)(3)), of Special Meeting; Sunshine Act Meeting Regular Meeting; Sunshine Act the forthcoming regular meeting of the Meeting Farm Credit Administration Board AGENCY: Farm Credit Administration. (Board). SUMMARY: Notice is hereby given, AGENCY: Farm Credit Administration. DATE AND TIME: The regular meeting of pursuant to the Government in the SUMMARY: Notice is hereby given, the Board will be held at the offices of Sunshine Act (5 U.S.C. 552b(e)(3)), of pursuant to the Government in the the Farm Credit Administration in the special meeting of the Farm Credit Sunshine Act (5 U.S.C. 552b(e)(3)), that McLean, Virginia, on June 12, 1997, Administration Board (Board). the July 10, 1997 regular meeting of the from 9:00 a.m. until such time as the DATE AND TIME: The special meeting of Farm Credit Administration Board Board concludes its business. the Board was held at the offices of the (Board) will not be held. The FCA Board 31820 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices will hold a special meeting at 9:00 a.m. DATE AND TIME: Thursday, June 19, 1997 Vice President) 250 Marquette Avenue, on Tuesday, July 22, 1997. An agenda at 10:00 a.m. Minneapolis, Minnesota 55480-2171: for this meeting will be published at a PLACE: 999 E Street, N.W., Washington, 1. James A. Espeland, Henning, later date. D.C. (ninth floor) Minnesota; to acquire an additional .04 FOR FURTHER INFORMATION CONTACT: STATUS: This Meeting will be open the percent, for a total of 31.32 percent, of Floyd Fithian, Secretary to the Farm the public. the voting shares of Henning Credit Administration Board, (703) 883– Bancshares, Inc., Henning, Minnesota, 4025, TDD (703) 883–4444. ITEMS TO BE DISCUSSED: and thereby indirectly acquire First ADDRESSES: Farm Credit Correction and Approval of Minutes. National Bank of Henning, Henning, Administration, 1501 Farm Credit Drive, Report of the Audit Division on Minnesota, and First National Bank of McLean, Virginia 22102–5090. Alexander for President, Inc. Battle Lake, Battle Lake, Minnesota. Advisory Opinion 1997–06: Kay C. Federal Reserve Bank of Kansas Dated: June 9, 1997. Bailey Hutchison for Senate Committee, City (D. Michael Manies, Assistant Vice Floyd Fithian, Kenneth W. Anderson, Jr., Treasurer. President) 925 Grand Avenue, Kansas Secretary, Farm Credit Administration Board. Administrative Matters. City, Missouri 64198-0001: [FR Doc. 97–15423 Filed 6–9–97; 12:58 pm] Person to contact for information: Mr. 1. George H. Moyer, Jr., Madison, BILLING CODE 6705±01±P Ron Harris, Press Officer, Telephone: Nebraska; to acquire an additional 13.30 (202) 219–4155. percent, for a total of 28.09 percent, and Marjorie W. Emmons, Jon M. Moyer, Madison, Nebraksa, to FEDERAL ELECTION COMMISSION Secretary of the Commission. acquire an additional 12.84 percent, for [FR Doc. 97–15453 Filed 6–9–97; 2:59 pm] a total of 31.83 percent, of the voting SUNSHINE ACT MEETING shares of Madison Bancshares, Inc., BILLING CODE 6715±01±M Madison, Nebraska, and thereby * * * * * indirectly acquire The Bank of Madison, Federal Register Number: 97–14897. Madison, Nebraksa. Previously announced date & time: FEDERAL RESERVE SYSTEM Tuesday, June 10, 1997 at 10:00 a.m. Board of Governors of the Federal Reserve Meeting closed to the public. Change in Bank Control Notices; System, June 6, 1997. Additional item to be discussed: Acquisitions of Shares of Banks or Jennifer J. Johnson, Report containing privileged or Bank Holding Companies Deputy Secretary of the Board. confidential financial or commercial The notificants listed below have [FR Doc. 97–15269 Filed 6–10–97; 8:45 am] information. (11 C.F.R. § 2.4(b)(2)). BILLING CODE 6210±01±F Thursday, June 12, 1997 at 10:00 a.m. applied under the Change in Bank Meeting open to the public. Control Act (12 U.S.C. 1817(j)) and § The following item was added to the 225.41 of the Board’s Regulation Y (12 FEDERAL RESERVE SYSTEM agenda: Petitions for Ruelmaking on CFR 225.41) to acquire a bank or bank Soft Money; Substitute Draft Notice of holding company. The factors that are Formations of, Acquisitions by, and Availability. considered in acting on the notices are Mergers of Bank Holding Companies set forth in paragraph 7 of the Act (12 * * * * * The companies listed in this notice DATE AND TIME: Tuesday, June 17, 1997 U.S.C. 1817(j)(7)). The notices are available for have applied to the Board for approval, at 10:00 a.m. immediate inspection at the Federal pursuant to the Bank Holding Company PLACE: 999 E Street, N.W., Washington, Reserve Bank indicated. Once the Act of 1956 (12 U.S.C. 1841 et seq.) D.C. notices have been accepted for (BHC Act), Regulation Y (12 CFR Part STATUS: This meeting will be closed to processing, they will also be available 225), and all other applicable statutes the public. for inspection at the offices of the Board and regulations to become a bank ITEMS TO BE DISCUSSED: of Governors. Interested persons may holding company and/or to acquire the express their views in writing to the assets or the ownership of, control of, or Compliance matters pursuant to 2 Reserve Bank indicated for that notice the power to vote shares of a bank or U.S.C. § 437g. or to the offices of the Board of bank holding company and all of the Audits conducted pursuant to 2 Governors. Comments must be received banks and nonbanking companies U.S.C. § 437g, § 438(b), and Title 26, not later than June 26, 1997. owned by the bank holding company, U.S.C. A. Federal Reserve Bank of Atlanta including the companies listed below. Matters concerning participation in (Lois Berthaume, Vice President) 104 The applications listed below, as well civil actions or proceedings or Marietta Street, N.W., Atlanta, Georgia as other related filings required by the arbitration. Board, are available for immediate Internal personnel rules and 30303-2713: 1. Susma Patel, London, England; inspection at the Federal Reserve Bank procedures or matters affecting a Suketu Madhusudan Patel (Suku), indicated. Once the application has particular employee. London, England; Parimal Kantibhai been accepted for processing, it will also DATE AND TIME: Wednesday, June 18, Patel (Perry), London, England; Bharat be available for inspection at the offices 1997 at 9:30 a.m. Muljibhai Amin, London, England; and of the Board of Governors. Interested PLACE: 999 E Street, N.W., Washington, Dennis John Lloyd King, Surrey, persons may express their views in D.C. (ninth floor) England; collectively, as the Patel writing on the standards enumerated in STATUS: This hearing will be open to the Group, each to acquire up to 50 percent the BHC Act (12 U.S.C. 1842(c)). If the public. of the voting shares of First Bankshares, proposal also involves the acquisition of Matter before the Commission: Notice Inc., Longwood, Florida, and thereby a nonbanking company, the review also of Proposed Rulemaking regarding indirectly acquire First National Bank of includes whether the acquisition of the coordinated and independent Central Florida, Longwood, Florida. nonbanking company complies with the expenditures by party committees. B. Federal Reserve Bank of standards in section 4 of the BHC Act. * * * * * Minneapolis (Karen L. Grandstrand, Unless otherwise noted, nonbanking Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31821 activities will be conducted throughout Commission, S–4429, 6th and agreements reaffirming debts owed to the United States. Pennsylvania Ave., NW., Washington, proposed respondent prior to the filing Unless otherwise noted, comments DC 20580. (202) 326–3224. Paul Block, of the bankruptcy petition. The regarding each of these applications Boston Regional Office, Federal Trade complaint charges that the proposed must be received at the Reserve Bank Commission, 101 Merrimac Street, Suite respondent: falsely represented to indicated or the offices of the Board of 810, Boston, MA 02114–4719. (617) consumers that signed reaffirmation Governors not later than July 7, 1997. 424–5960. agreements would be filed with the A. Federal Reserve Bank of St. Louis SUPPLEMENTARY INFORMATION: Pursuant bankruptcy courts, as required by the (Randall C. Sumner, Vice President) 411 to Section 6(f) of the Federal Trade United States Bankruptcy Code; falsely Locust Street, St. Louis, Missouri 63102- Commission Act, 38 Stat. 721, 15 U.S.C. represented to consumers that debts 2034: 46, and Section 2.34 of the associated with unfiled reaffirmation 1. The Union Illinois 1995 Investment Commission’s Rules of Practice (16 CFR agreements, or agreements that were Limited Partnership, Swansea, Illinois; 2.34), notice is hereby given that the filed but not approved by the to acquire at least a total of 13.18 above-captioned consent agreement bankruptcy courts, were legally binding percent, and up to a total of 18.22 containing a consent order to cease and on the consumers; and unfairly percent, of the voting shares of Union desist, having been filed with and collected debts that it was not permitted Illinois Company, Swansea, Illinois, and accepted, subject to final approval, by by law to collect. The proposed consent thereby indirectly acquire Union Bank the Commission, has been placed on the order contains provisions designed to of Illinois, Swansea, Illinois, and State public record for a period of sixty (60) remedy the violations charged and to Bank of Jerseyville, Jerseyville, Illinois. days. The following Analysis to Aid prevent the proposed respondent from B. Federal Reserve Bank of Public Comment describes the terms of engaging in similar acts in the future. Minneapolis (Karen L. Grandstrand, the consent agreement, and the The proposed consent order preserves Vice President) 250 Marquette Avenue, allegations in the accompanying the Commission’s right to seek Minneapolis, Minnesota 55480-2171: complaint. An electronic copy of the consumer redress if the Commission 1. New Prague Bancshares, Inc., New full text of the consent agreement determines that redress to consumers Prague, Minnesota; to become a bank package can be obtained from the provided through related named and holding company by acquiring 100 Commission Actions section of the FTC unnamed legal actions is not adequate. percent of the voting shares of Home Page (for June 4, 1997), on the Part I of the proposed order prohibits Community Security Bank, New Prague, World Wide Web, at ‘‘http:// the proposed respondent from Minnesota, a de novo bank. www.ftc.gov/os/actions/htm.’’ A paper misrepresenting to consumers who have copy can be obtained from the FTC filed petitions for bankruptcy protection Board of Governors of the Federal Reserve under the United States Bankruptcy System, June 5, 1997. Public Reference Room, Room H–130, Sixth Street and Pennsylvania Avenue, Code that (A) Reaffirmation agreements Jennifer J. Johnson, NW., Washington, DC 20580, either in will be filed in bankruptcy court; or (B) Deputy Secretary of the Board. person or by calling (202) 326–3627. any reaffirmation agreement is legally [FR Doc. 97–15270 Filed 6–10–97; 8:45 am] Public comment is invited. Such binding on the consumer. Part I.C of the BILLING CODE 6210±01±F comments or views will be considered proposed order prohibits the proposed by the Commission and will be available respondent from collecting any debt for inspection and copying at its (including any interest, fee, charge, or FEDERAL TRADE COMMISSION principal office in accordance with expense incidental to the principal Section 4.9(b)(6)(ii) of the Commission’s obligation) that has been legally [File No. 972±3187] Rules of Practice (16 CFR 4.9(b)(6)(ii)). discharged in bankruptcy proceedings and that the proposed respondent is not Sears, Roebuck and Co.; Analysis to Analysis of Proposed Consent Order to permitted by law to collect. Part II of the Aid Public Comment Aid Public Comment proposed order prohibits the proposed AGENCY: Federal Trade Commission. The Federal Trade Commission has respondent from making any material misrepresentation in the collection of ACTION: Proposed consent agreement. accepted an agreement to a proposed consent order from Sears, Roebuck and any debt subject to a pending SUMMARY: The consent agreement in this Co. The proposed respondent is a large bankruptcy proceeding. matter settles alleged violations of national retailer that sells a wide variety Part III of the proposed order contains federal law prohibiting unfair or of products and services. record keeping requirements for deceptive acts or practices or unfair The proposed consent order has been materials that demonstrate the methods of competition. The attached placed on the public record for sixty compliance of the proposed respondent Analysis to Aid Public Comment (60) days for reception of comments by with the proposed order. Part IV describes both the allegations in the interested persons. Comments received requires distribution of a copy of the draft complaint that accompanies the during this period will become part of consent decree to certain current and consent agreement and the terms of the the public record. After sixty (60) days, future principals, officers, directors, consent order—embodied in the consent the Commission will again review the managers, and representatives. agreement—that would settle these agreement and the comments received Part V provides for Commission allegations. and will decide whether it should notification upon any change in the withdraw from the agreement and take corporate respondent affecting DATES: Comments must be received on other appropriate action or make final compliance obligations arising under or before August 11, 1997. the agreement’s proposed order. the order. Part VI requires the proposed ADDRESSES: Comments should be The Commission’s complaint alleges respondent to notify the Commission of directed to: FTC/Office of the Secretary, several unfair or deceptive acts or proposed settlement terms in related Room 159, 6th St. and Pa. Ave., NW., practices related to the proposed actions filed by various named and Washington, DC 20580. respondent’s policy of inducing unnamed parties. Part VII requires the FOR FURTHER INFORMATION CONTACT: consumers who have filed for filing of compliance report(s). Finally, David Medine, Federal Trade bankruptcy protection to sign Part VIII provides for the termination of 31822 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices the order after twenty years under and their agencies. Thus, universities, effective October 1, 1996, expressly certain circumstances. colleges, research institutions, hospitals, prohibits the use of 1997 appropriated The purpose of this analysis is to other public and private organizations, funds for indirect or ‘‘grass roots’’ facilitate public comment on the State and local health departments or lobbying efforts that are designed to proposed order, and it is not intended their bona fide agents, federally support or defeat legislation pending to constitute an official interpretation of recognized Indian tribal governments, before State legislatures. This new law, the agreement and proposed order or to Indian tribes or Indian tribal Section 503 of Pub. L. No. 104–208, modify in any way their terms. organizations, and small, minority-and/ provides as follows: Donald S. Clark, or women-owned businesses are eligible Sec. 503(a) No part of any Secretary. to apply. appropriation contained in this Act shall be used, other than for normal and [FR Doc. 97–15282 Filed 6–10–97; 8:45 am] Note: Public Law 104–65, dated December recognized executive-legislative BILLING CODE 6712±01±M 19, 1995, prohibits an organization described in section 501(c)(4) of the IRS Code of 1986, relationships, for publicity or that engages in lobbying activities to propaganda purposes, for the influence the Federal Government, from preparation, distribution, or use of any DEPARTMENT OF HEALTH AND receiving Federal funds. kit, pamphlet, booklet, publication, HUMAN SERVICES Availability of Funds radio, television, or video presentation designed to support or defeat legislation Centers for Disease Control and Approximately $300,000 is available pending before the Congress, * ** Prevention in FY 1997 to fund one award. It is except in presentation to the Congress [Announcement 757] expected that the award will begin on or or any State legislative body itself. about September 1, 1997, and will be (b) No part of any appropriation National Institute for Occupational made for a 12-month budget period with contained in this Act shall be used to Safety and Health; Epidemiologic a one year project period. pay the salary or expenses of any grant Studies To Evaluate Health Effects of Preapplication Teleconference or contract recipient, or agent acting for Uranium Milling; Notice of Availability such recipient, related to any activity Applicants are invited by CDC/NIOSH of Funds for Fiscal Year for 1997 designed to influence legislation or to attend a preapplication technical appropriations pending before the Introduction assistance teleconference on Monday, Congress or any State legislature. The Centers for Disease Control and June 16, 1997, at 2:00 p.m.(EDT) to Department of Labor, Health and discuss the programmatic issues and Prevention (CDC) announces the Human Services, and Education, and time constraints regarding this program, availability of fiscal year (FY) 1997 Related Agencies Appropriations Act, and to ask question regarding its funds for a cooperative agreement 1997, as enacted by the Omnibus content. This teleconference is expected program to design and conduct Consolidated Appropriations Act, 1997, to last approximately one hour. All epidemiologic studies evaluating the Division A, Title I, Section 101(e), Pub. conference calls are scheduled on health effects of uranium milling. L. No. 104–208 (September 30, 1996). Eastern time. The conference name is CDC is committed to achieving the ‘‘Uranium Millers Technical Background health promotion and disease Assistance’’. The telephone bridge prevention objectives of Healthy People The National Institute for number for Federal participants is 404/ 2000, a national activity to reduce Occupational Safety and Health 639–4100 and for Non-Federal morbidity and mortality and improve (NIOSH) is developing and conducting participants it is 800/713–1971. the quality of life. This announcement a study of the health effects associated Participants will need the conference is related to the priority area of with uranium milling and will be code, 575934, to be connected. Occupational Safety and Health. (For awarding cooperative agreement funds ordering a copy of Healthy People 2000, Use of Funds to support this effort. see the section Where To Obtain NIOSH is conducting this research Restrictions on Lobbying Additional Information.) pursuant to an agreement with the Applicants should be aware of United States Army Environmental Authority restrictions on the use of HHS funds for Hygiene Agency in follow-up to a 1994 This program is authorized under lobbying of Federal or State legislative Congressional mandate to the Section 501 of the Federal Mine Safety bodies. Under the provisions of 31 Department of Defense. Public Law 103– and Health Act (30 U.S.C. 951). U.S.C. Section 1352 (which has been in 139 provides that the Department of effect since December 23, 1989), Defense shall conduct ‘‘* * * a study of Smoke-Free Workplace recipients (and their subtier contractors) the health effects of uranium milling, CDC strongly encourages all grant are prohibited from using appropriated including the effects of exposure to recipients to provide a smoke-free Federal funds (other than profits from a radon chemicals and uranium, on the workplace and promote the nonuse of Federal contract) for lobbying Congress health of those individuals employed in all tobacco products, and Public Law or any Federal agency in connection uranium mills in the southwestern 103–227, the Pro-Children Act of 1994, with the award of a particular contract, United States during the period prohibits smoking in certain facilities grant, cooperative agreement, or loan. beginning on January 1, 1947, and that receive Federal funds in which This includes grants/cooperative ending on December 31, 1971.’’ education, library, day care, health care, agreements that, in whole or in part, NIOSH has been evaluating available and early childhood development involve conferences for which Federal personnel and exposure records for services are provided to children. funds cannot be used directly or uranium mills which operated in indirectly to encourage participants to Colorado, New Mexico, Utah, and Eligible Applicants lobby or to instruct participants on how Arizona between 1947 and 1971 to Applications may be submitted by to lobby. determine which types of epidemiologic public and private, non-profit and for- In addition, the FY 1997 HHS studies of the health effects of uranium profit organizations and governments, Appropriations Act, which became milling would be feasible given the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31823 nature and extent of records available including the selection of an unexposed A. A brief program description. on uranium milling operations. To date, (non-uranium miller) comparison group, B. A listing of program goals and NIOSH has determined that a cross the data to be collected, and the objectives accompanied by a sectional study of renal and/or proposed analysis of the data. comparison of the actual pulmonary disease among uranium 4. Present the protocol to a panel of accomplishments related to the goals millers would be feasible. In addition, scientific peer reviewers and revise the and objectives established for the such a study is scientifically appropriate protocol as required for final approval. period. since prior research has indicated that 5. Perform data collection and C. If established goals and objectives uranium millers may be at increased management. Data collected may to be accomplished were delayed, risk of renal disease and non-malignant include worker symptomatology, results describe both the reason for the respiratory disease. of medical tests evaluating renal and/or deviation and anticipated corrective pulmonary function, and available Purpose action or deletion of the activity from exposure data. the project. The purpose of this cooperative 6. Conduct statistical analyses of the D. Other pertinent information, agreement is to utilize the special data collected. including the status of completeness, resources of the research community to 7. Report study results to the timeliness and quality of data. conduct studies evaluating the renal scientific community via presentations Final Report summarizing the and/or pulmonary health effects of at professional conferences and articles methodology; results obtained, uranium milling, including the effects of in peer-reviewed journals. All reports conclusions reached, and exposure to uranium dust, silica dust, should undergo appropriate scientific recommendations regarding inorganic acids, organic solvents, and peer review prior to public release. effectiveness and costs of components of ionizing radiation. The project results 8. Maintain the confidentiality of the Epidemiologic Studies to Evaluate should be applicable to individuals individually identifiable data. Provide Health Effects of Uranium Milling employed in uranium mills in the written assurance to the CDC that there program. southwestern United States between are adequate technical and January 1, 1947 and December 31, 1971. administrative safeguards in place to Application Content This project could include: (a) A protect the confidentiality of such The entire application, including morbidity study of renal disease, (b) a records and that the confidentiality of appendices, should not exceed 40 pages morbidity study of non-malignant the records will be maintained. and the Proposal Narrative section respiratory disease, and/or (c) a 9. Notify study participants of their contained therein should not exceed 25 morbidity study of other health individual and overall study results. pages. Pages should be clearly outcomes if substantial justification is B. CDC/NIOSH Activities numbered and a complete index to the given for evaluating other endpoints. application and any appendices Personnel and/or exposure records from 1. Provide technical assistance with program development, implementation, included. The original and each copy of U.S. uranium mills may be utilized to the application must be submitted the extent available. The recipient maintenance, priority setting, evaluation efforts, and information and unstapled and unbound. All materials should develop an epidemiologic study must be typewritten, double-spaced, design which specifies the methods that dissemination activities. 2. Provide scientific, epidemiologic, with unreduced type (font size 12 point) will be used to select former uranium 1 ′′ ′′ ′′ and medical collaboration for the on 8 ⁄2 by 11 paper, with at least 1 millers and a non-uranium miller margins, headers, and footers, and comparison group for the study. successful completion of this project. 3. Provide, obtain, and/or assist in printed on one side only. Do not include Program Requirements obtaining available personnel and/or any spiral or bound materials or In conducting activities to achieve the exposure records from uranium mills pamphlets. purpose of this program, the recipient located in the southwestern United The applicant should provide a will be responsible for the activities States that operated during the period detailed budget, with accompanying under A. (Recipient Activities), and between January 1, 1947 and December justification of all operating expenses, CDC/NIOSH will be responsible for 31, 1971. that is consistent with the stated activities under B. (CDC/NIOSH 4. Assist in reporting study results to objectives and planned activities of the Activities). the scientific community via project. CDC may not approve or fund presentations at professional all proposed activities. Applicants A. Recipient Activities conferences and articles in peer- should be precise about the program 1. Develop a study to evaluate the reviewed journals. Assist, if needed, in purpose of each budget item. For health effects of uranium milling among reporting individual and overall study contracts described within the individuals employed in uranium mills results to study participants. application budget, applicants should in the southwestern United States name the contractor, if known; Technical Reporting Requirements during the period between January 1, described the services to be performed 1947, and December 31, 1971. An original and two copies of semi- and provide an itemized breakdown and 2. Evaluate potential sources of annual progress reports are required. justification for the estimated cost of the recruitment of uranium millers Timelines for the semi-annual reports contract; the kinds of organizations or including company records, the registry will be established at the time of award. parties to be selected; the period of kept by the Office of Navajo Uranium Final financial status and performance performance; and the method of Workers, and other sources in order to reports are required no later than 90 selection. Place budget narrative pages propose a recruitment strategy. days after the end of the project period. showing, in detail, how funds in each 3. Develop a final study protocol that All reports are submitted to the Grants object class will be spent, directly reviews the pertinent literature on Management Branch, Procurement and behind form 424A. Do not put these potential health effects of uranium Grants Office, CDC. pages in the body of the application. milling and historical exposure data, Semi-annual progress report should The applicant should provide a describes the study methodology include: detailed description of all activities. 31824 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

A. Title Page accomplish the requirements stated D. Project Planning and Evaluation The heading should include the title above. List the names (if known), (15%) of the program, project title, qualifications, and time allocations of the existing professional staff to be The extent to which the proposed organization, name and address, project goals and objectives are clearly stated, director’s name and telephone number. assigned to (or recruited for) this project, the support staff available for time-phased, and measurable. The B. Abstract performance of this project, and the extent to which the methods are available facilities including space. sufficiently detailed to allow assessment A one page, singled-spaced, typed of whether the objectives can be abstract must be submitted with the 8. Human Subjects: State whether or not Humans are subjects in this achieved for the budget period. Clearly application. The heading should stated evaluation method for evaluating include the title of grant program, proposal. (See Human Subjects in the Evaluation Criteria and Other the accomplishments and a detailed project title, organization, name and security plan to safeguard and prevent address, project director and telephone Requirements sections.) 9. Provide a detailed budget which disclosure of records. The extent to number. This abstract should include a which a qualified plan is proposed that work plan identifying activities to be indicates: (a) Anticipated costs for personnel, travel, communications, will help achieve the goals stated in the developed, activities to be completed, proposal. and a timeline for completion these postage, equipment, supplies, etc., and activities. (b) all sources of funds to meet those E. Facilities and Resources (10%) needs. C. Proposal Narrative 10. Provide a detailed security plan to The adequacy of the applicant’s The narrative of each application ensure that there are reasonable facilities, equipment, and other must: administrative, technical, and physical resources available for performance of 1. Briefly state the applicant’s safeguards to prevent unauthorized use this project. understanding of the need or problem to or disclosure of records. F. Human Subjects (Not Scored) be addressed and the purpose of this Evaluation Criteria cooperative agreement. This should be Whether or not exempt from the reflected in a draft protocol for the The application will be reviewed and Department of Health and Human study. evaluated according to the following Services (DHHS) regulations, are 2. Describe clearly the objectives, the criteria: procedures adequate for the protection steps to be taken in planning and A. Understanding of the Problem (15%) of human subjects? Recommendations implementing this project, and the on the adequacy of protections include: respective responsibilities of the Responsiveness to the purpose of this (1) Protections appear adequate, and applicant for carrying out those steps. announcement including: there are no comments to make or Provide timelines for accomplishing 1. Applicant’s understanding of the concerns to raise, (2) protections appear each objective and a method of general objectives, and adequate, but there are comments evaluating the activities. 2. Evidence of the ability to regarding the protocol, (3) protections 3. Inclusion of women, ethnic, and understand the problem and to propose appear inadequate and the Objective racial groups: Describe how the CDC effective methodologies for evaluating Review Group has concerns related to policy requirements will be met renal and/or pulmonary effects. human subjects, or (4) disapproval of regarding the inclusion of women, B. Program Personnel (30%) the application is recommended ethnic, and racial groups in the because the research risks are proposed research. (See Women, Racial 1. Applicant’s technical experience sufficiently serious and protection and Ethnic Minorities in the Evaluation (e.g., in the areas of occupational health, against the risks are inadequate as to Criteria and Other Requirements industrial hygiene, health physics, and make the entire application sections.) project management), unacceptable. 4. Provide documentation of access to 2. The qualifications (e.g., in the areas G. Budget Justification (Not Scored) potential study sites with the sample of industrial hygiene, health physics, characteristics specified in the Program and occupational safety and health) and The budget will be evaluated to the Requirements Section, and provide time allocation of the professional staff extent that it is reasonable, clearly documentation of anticipated to be assigned to this project, and justified, and consistent with the involvement of management, labor, and 3. The applicant’s ability to describe intended use of funds. community representatives in the study. the approach to be used in carrying out 5. Document the applicant’s expertise the responsibilities of the applicant in Executive Order 12372 Review in the area of occupational health, this project. This program is not subject to industrial hygiene, health physics, and C. Study Design (30%) Executive Order 12372 review. project management. 6. Document the applicant’s ability to 1. Steps proposed in planning and Public Health System Reporting provide staff, knowledge, and other implementing this project and the Requirements resources required to perform the respective responsibilities of the responsibilities in this project. applicant for carrying out those steps, This program is not subject to the 7. Provide the name, qualifications, 2. The adequacy of the applicant’s Public Health System Reporting and proposed time allocation of the evidence of access to study populations, Requirements. Project Director who will be responsible and Catalog of Federal Domestic Assistance for administering the project. Describe 3. The degree to which the applicant Number staff, experience, facilities, equipment has met the CDC policy requirements available for performance of this project, regarding the inclusion of women, The Catalog of Federal Domestic and other resources that define the ethnic, and racial groups in the Assistance number for this project is applicant’s capacity or potential to proposed research. 93.283. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31825

Other Requirements Application Submission and Deadline Please refer to Announcement Number 757 when requesting A. Preapplication Letter of Intent Paperwork Reduction Act information and submitting an Although not a prerequisite of Projects that involve the collection of application. application, a non-binding letter of information from ten or more If you have questions after reviewing intent-to-apply is requested from individuals and funded by this the contents of all the documents, potential applicants. The letter should cooperative agreement will be subject to business management technical be submitted to Victoria F. Sepe, Grants review and approval by the Office of assistance may be obtained from Management Specialist, Grants Management and Budget (OMB) under Victoria Sepe, Grants Management Management Branch, CDC at the address the Paperwork Reduction Act. Specialist, Grants Management Branch, listed in this section. It should be Procurement and Grants Office, Centers Human Subjects postmarked no later than July 11, 1997. for Disease Control and Prevention The letter should identify the Program (CDC), Mailstop E–13, Room 321, 255 If the proposed project involves Announcement number 757 and the East Paces Ferry Road, NE., Atlanta, GA research on human subjects, the name of principal investigator. The 30305, telephone (404) 842–6804, applicant must comply with the DHHS letter of intent does not influence Internet: [email protected]. Regulations, 45 CFR part 46, regarding review or funding decisions, but it will Programmatic technical assistance the protection of human subjects. enable CDC to plan the review more may be obtained from Lynne E. Assurance must be provided to efficiently and will ensure that each Pinkerton, M.D., M.P.H., Medical demonstrate the project will be subject applicant receives timely and relevant Officer, Epidemiology 1 Section, to initial and continuing review by an information prior to application Industrywide Studies Branch, Division appropriate institutional review submission. of Surveillance, Hazard Evaluations, committee. The applicant will be B. Application and Field Studies, National Institute for responsible for providing assurance in Occupational Safety and Health, Centers accordance with the appropriate The original and four copies of the for Disease Control and Prevention guidelines and form provided in the application PHS Form 398 (Revised 5/ (CDC), Mailstop R–15, 4676 Columbia application kit. 95, OMB Number 0925–0001) must be Parkway, Cincinnati, OH 45226, In addition to other applicable submitted to Victoria Sepe, Grants telephone (513) 841–4344, Internet: committees, Indian Health Service (IHS) Management Specialist, Grants [email protected]. institutional review committees also Management Branch, Procurement and Potential applicants may obtain a must review the project if any Grants Office, Centers for Disease copy of Healthy People 2000 (Full component of IHS will be involved or Control and Prevention (CDC), Mailstop Report, Stock No. 017–001–00474–0) or will support the research. If any E–13, 255 East Paces Ferry Road, NE., Healthy People 2000 (Summary Report, American Indian community is Room 321, Atlanta, GA 30305, on or Stock No. 017–001–00473–1) referenced involved, its tribal government must before July 25, 1997. in the Introduction section through the also approve that portion of the project 1. Deadline: Applications will be Superintendent of Documents, applicable to it. considered as meeting the deadline if Government Printing Office, they are either: Washington, DC 20402–9325, telephone Women, Racial and Ethnic Minorities (a) Received on or before the deadline (202) 512–1800. date, or It is the policy of the Centers for This and other CDC announcements (b) Sent on or before the deadline date are available through the CDC homepage Disease Control and Prevention (CDC) and received in time for submission to and the Agency for Toxic Substances on the Internet. The address for the CDC the objective review group. (The homepage is: http://www.cdc.gov. and Disease Registry (ATSDR) to ensure applicants must request a legibly dated that individuals of both sexes and the U.S. Postal Service postmark or obtain Dated: June 4, 1997. various racial and ethnic groups will be a legibly dated receipt from a Diane D. Porter, included in CDC/ATSDR-supported commercial carrier or the U.S. Postal Acting Director, National Institute for research projects involving human Service. Private metered postmarks will Occupational Safety and Health, Centers for subjects, whenever feasible and not be acceptable as proof of timely Disease Control and Prevention (CDC). appropriate. Racial and ethnic groups mailing.) [FR Doc. 97–15179 Filed 6–10–97; 8:45 am] are those defined in OMB Directive No. 2. Late Applicants: Applications that BILLING CODE 4163±19±P 15 and include American Indian, do not meet the criteria in 1.(a) or 1.(b) Alaskan Native, Asian, Pacific Islander, above are considered late applications. Black and Hispanic. Applicants shall Late applications will not be considered DEPARTMENT OF HEALTH AND ensure that women, racial and ethnic in the current competition and will be HUMAN SERVICES minority populations are appropriately returned to the applicants. represented in applications for research Centers for Disease Control and involving human subjects. Where clear Where To Obtain Additional Prevention Information and compelling rationale exist that [Announcement 738] inclusion is inappropriate or not To receive additional written feasible, this situation must be information call (404) 332–4561. You National Institute for Occupational explained as part of the application. will be asked to leave your name, Safety and Health; Assessment of This policy does not apply to research address, and telephone number and will Respiratory Exposure Hazards in studies when the investigator cannot need to refer to NIOSH Announcement Composting control the race, ethnicity and/or sex of 757. You will receive a complete subjects. Further guidance to this policy program description, information on Introduction is contained in the Federal Register, application procedures, and application The Centers for Disease Control and Vol. 60, No. 179, pages 47947–47951, forms. CDC will not send application Prevention (CDC) announces the and dated Friday, September 15, 1995. kits by facsimile or express mail. availability of fiscal year (FY) 1997 31826 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices funds for a cooperative agreement to on or about September 30, 1997, and Division A, Title I, Section 101(e), Pub. conduct cross-sectional studies at will be made for 12-month budget L. No. 104–208 (September 30, 1996). composting facilities of respiratory periods within the project period of up Background exposures and respiratory health effects to 3 years. The funding estimate is among compost workers. subject to change. Composting is the decomposition of CDC is committed to achieving the Continuation awards within the organic materials under aerobic health promotion and disease project period will be made on the basis conditions which produces a stable, prevention objectives of Healthy People of satisfactory progress and the humus-like material which can be used 2000, a national activity to reduce availability of funds. as a soil amendment. Materials morbidity and mortality and improve composted can include yard waste, Use of Funds the quality of life. This announcement food/household waste, food processing is related to the priority area of Restrictions on Lobbying waste, agricultural wastes, biosolids, and animal wastes. The recycling of Occupational Safety and Health. (For Applicants should be aware of ordering a copy of Healthy People 2000, biosolids and the organic fractions of restrictions on the use of HHS funds for municipal solid waste is increasing see the section Where to Obtain lobbying of Federal or State legislative Additional Information.) because of the benefits that can arise bodies. Under the provisions of 31 and because the disposal alternatives CDC, National Institute for U.S.C. Section 1352 (which has been in Occupational Safety and Health such as land filling and incineration are effect since December 23, 1989), more costly, unpopular, or restricted by (NIOSH) is committed to the program recipients (and their subtier contractors) priorities developed by the National law. The consequence of this is a are prohibited from using appropriated dramatic increase in the number of Occupational Research Agenda (NORA). Federal funds (other than profits from a (For ordering a copy of the NORA, see composting operations and the number Federal contract) for lobbying Congress of workers exposed to organic dusts at the section WHERE TO OBTAIN ADDITIONAL or any Federal agency in connection INFORMATION.) these facilities. The proceedings from a with the award of a particular contract, national composting council workshop Authority grant, cooperative agreement, or loan. indicate that there were approximately This includes grants/cooperative This program is authorized under 2500 composting facilities operating in agreements that, in whole or in part, Sections 20(a) and 22(e)(7) of the the United States during 1992 with a involve conferences for which Federal Occupational Safety and Health Act of large expected growth rate (over 45 funds cannot be used directly or 1970 (29 U.S.C. 669(a) and 671(e)(7)). percent) in the number of composting indirectly to encourage participants to facilities during subsequent years. The Smoke-Free Workplace lobby or to instruct participants on how rapid growth in this industry, combined CDC strongly encourages all grant to lobby. with the potential for worker exposure recipients to provide a smoke-free In addition, the FY 1997 HHS to organic dusts containing many toxic workplace and to promote the nonuse of Appropriations Act, which became and immunogenic constituents, all tobacco products, and Public Law effective October 1, 1996, expressly indicates the need for studies to address 103–227, the Pro-Children Act of 1994, prohibits the use of 1997 appropriated potential respiratory health problems prohibits smoking in certain facilities funds for indirect or ‘‘grass roots’’ among workers in this industry. Upper that receive Federal funds in which lobbying efforts that are designed to respiratory tract irritation, organic dust education, library, day care, health care, support or defeat legislation pending toxic syndrome (ODTS), asthma, and early childhood development before State legislatures. This new law, bronchitis, and hypersensitivity services are provided to children. Section 503 of Pub. L. No. 104–208, pneumonitis are among the respiratory provides as follows: health problems described to occur from Eligible Applicants Sec. 503(a) No part of any organic dust exposures such as those Applications may be submitted by appropriation contained in this Act associated with composting. public and private, non-profit and for- shall be used, other than for normal and Composting is an emerging profit organizations and governments, recognized executive-legislative technology area. Under the NIOSH and their agencies. Thus, universities, relationships, for publicity or National Occupational Research Agenda colleges, research institutions, hospitals, propaganda purposes, for the (NORA), emerging technologies other public and private organizations, preparation, distribution, or use of any represent a priority area for research State and local health departments or kit, pamphlet, booklet, publication, efforts to (1) Assess their potential to their bona fide agents, federally radio, television, or video presentation cause harm to workers, (2) evaluate recognized Indian tribal governments, designed to support or defeat legislation specific worksites, (3) develop effective Indian tribes or Indian tribal pending before the Congress, * * * control strategies where occupational organizations, and small, minority- and/ except in presentation to the Congress hazards exist, (4) identify superior new or women-owned businesses are eligible or any State legislative body itself. technologies that diminish risk, and (5) to apply. (b) No part of any appropriation share information for the benefit of all contained in this Act shall be used to persons at risk and those responsible for Note: Public Law 104–65, dated December pay the salary or expenses of any grant 19, 1995, prohibits an organization described managing the risk. in section 501(c)(4) of the IRS Code of 1986, or contract recipient, or agent acting for This project addresses many of these that engages in lobbying activities to such recipient, related to any activity emerging technology criteria described influence the Federal Government, from designed to influence legislation or in NORA. receiving Federal funds. appropriations pending before the Congress or any State legislature. Purpose Availability of Funds Department of Labor, Health and The purpose of this project is to Approximately $200,000 will be Human Services, and Education, and conduct research to identify potential available in FY 1997 to fund up to two Related Agencies Appropriations Act, exposure hazards and respiratory health awards at approximately $100,000 each. 1997, as enacted by the Omnibus problems among workers in the It is expected that the awards will begin Consolidated Appropriations Act, 1997, composting industry. This information Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31827 will be used to promote respiratory designed to gather information on work describe both the reason for the health for this workforce and direct and exposure history and respiratory deviation and anticipated corrective prevention efforts as appropriate. health effects. The questionnaire should action or deletion of the activity from The specific objectives for this be administered to all members of this the project. cooperative agreement program include study population. the following: develop a research b. The development and Application Content protocol(s) for a cross-sectional study of implementation of a pulmonary The entire application, including respiratory exposures and respiratory function testing program appropriate to appendices, should not exceed 40 pages health effects among workers employed the investigation of respiratory health and the Proposal Narrative section at composting facilities; conduct in- effects among compost workers at contained therein should not exceed 25 depth environmental investigations of selected facilities. pages. Pages should be clearly respiratory exposure hazards at selected 4. Clarify the composting processes numbered and a complete index to the composting facilities; conduct in-depth used at each survey site including the application and any appendices clinical investigations on the respiratory control procedures used to reduce included. The original and each copy of health status of workers at selected worker exposures. the application must be submitted composting facilities; and describe the 5. Collaborate with CDC/NIOSH unstapled and unbound. All materials composting processes used at each scientists on study research efforts. must be typewritten, double-spaced, survey site including the control 6. Report and disseminate, if desired, with unreduced type (font size 12 point) research results and relevant health and procedures used to reduce worker on 81⁄2’’ by 11’’ paper, with at least 1’’ safety education and training exposures. margins, headers, and footers, and information to appropriate health care printed on one side only. Do not include Note: Protocols should exclude sampling providers, the scientific community, sites in Department of Health and Human any spiral or bound materials or agricultural workers and their families, Services (DHHS) Region VII from the sample pamphlets. management and union or other worker (DHHS Region VII includes the following The applicant should provide a States: Iowa, Kansas, Missouri, and representatives, and Federal, State, and Nebraska). This exclusion is to avoid local agencies. Emphasis should be detailed budget, with accompanying duplication with ongoing composting placed on the rapid dissemination of justification of all operating expenses, research efforts completed through the significant public health findings and that is consistent with the stated NIOSH funded Centers for Agriculture the translation of research findings into objectives and planned activities of the Research, Education and Disease Injury and prevention efforts. project. CDC may not approve or fund Prevention in DHHS Region VII. all proposed activities. Applicants Program Requirements B. CDC/NIOSH Activities should be precise about the program purpose of each budget item. For In conducting activities to achieve the 1. Provide technical assistance in the contracts described within the purpose of this agreement, the recipient areas of program development and application budget, applicants should will be responsible for conducting study research efforts, implementation, name the contractor, if known; activities under A. (Recipient Activities) maintenance. 2. Provide technical assistance, if described the services to be performed below, and CDC/NIOSH will be needed, related to the development and and provide an itemized breakdown and responsible for conducting activities implementation of the pulmonary justification for the estimated cost of the under B. (CDC/NIOSH Activities) below: function testing program. contract; the kinds of organizations or A. Recipient Activities 3. Provide technical assistance, if parties to be selected; the period of 1. Develop a research protocol(s) for a needed, related to the collection, review performance; and the method of and/or analysis of data. cross-sectional study of respiratory selection. Place budget narrative pages 4. Collaborate in the reporting and exposures and respiratory effects among showing, in detail, how funds in each dissemination of research results and workers employed at composting object class will be spent, directly relevant health and safety education and behind form 424A. Do not put these facilities. Obtain scientific peer review training information. of the protocol(s), revise, and finalize pages in the body of the application. the protocol(s). Technical Reporting Requirements The applicant should provide a detailed description of first-year 2. Conduct a comprehensive An original and two copies of semi- activities and briefly describe future- environmental investigation of annual progress reports are required. years objectives and activities. respiratory exposure hazards at selected Timelines for the semi-annual reports composting facilities. Personal and area will be established at the time of award. A. Title Page environmental sampling data collected Final financial status and performance from each of these facilities should reports are required no later than 90 The heading should include the title include, at a minimum, particulate not days after the end of the project period. of grant program, project title, otherwise regulated (formerly known as All reports are submitted to the Grants organization, name and address, project ‘‘total dust’’), metals, endotoxins, viable Management Branch, Procurement and director’s name address and telephone microorganisms, and ammonia. Grants Office, CDC. number. 3. Conduct in-depth clinical Semi-annual progress report should B. Abstract investigations on the respiratory health include: status of workers at selected composting A. A brief program description. A one page, singled-spaced, typed facilities. Study design should take into B. A listing of program goals and abstract must be submitted with the account sources of bias in particular the objectives accompanied by a application. The heading should problems encountered when limiting comparison of the actual include the title of grant program, the study to current employees. Clinical accomplishments related to the goals project title, organization, name and investigations should include, at a and objectives established for the address, project director and telephone minimum: period. number. This abstract should include a a. The development and C. If established goals and objectives work plan identifying activities to be administration of a questionnaire to be accomplished were delayed, developed, specific activities to be 31828 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices completed, and a time-line for the Evaluation Criteria and Other and technical expert and staff with the completion these activities. Requirements sections.) necessary training and experience 8. Provide a detailed budget which sufficient to accomplish proposed C. Proposal Narrative indicates: (a) anticipated costs for project. The narrative of each application personnel, travel, communications, E. Experience/Expertise (10%) must: postage, equipment, supplies, etc., and 1. Briefly state the applicant’s (b) all sources of funds to meet those Applicant’s knowledge/understanding understanding of the need or problem to needs. and experience in the composting be addressed and the purpose of this industry. Evaluation Criteria cooperative agreement. This should F. Facilities and Resources (5%) include a draft protocol for the study. Applications will be reviewed and The protocol(s) should include: evaluated according to the following Efficiency of resources and novelty of (a) A sampling strategy to insure that criteria: program. This includes the efficient use of existing and proposed personnel with a representative sample of composting A. Background and Need (20%) operations and technologies are assurances of a major time commitment included in the study, and Responsiveness to the purpose of this of the Project Director to the program (b) The sampling strategy should project, including the applicant’s and the novelty of program approach. understanding of the objectives of the maximize the number of study sites and G. Human Subjects (Not Scored) include a representative sample based proposed cooperative agreement and the Whether or not exempt from the on geographic considerations. relevance of the proposal to the DHHS regulations, are procedures 2. (a) Describe clearly the objectives of objectives. adequate for protection of human this project, the steps to be taken in B. Goals, Objectives and Methods (25%) subjects? Recommendations on the planning and implementing this project, 1. The extent to which the proposed adequacy of protections include: (1) and the respective responsibilities of the goals and objectives are clearly stated, Protections appear adequate, and there applicant for carrying out those steps. time-phased, and measurable. The are no comments to make or concerns to (b) Provide a proposed schedule for extent to which the methods are raise, (2) protections appear adequate, accomplishing each of the activities to sufficiently detailed to allow assessment but there are comments regarding the be carried out in this project and a of whether the objectives can be protocol, (3) protections appear method of evaluating the achieved for the budget period. The inadequate and the Objective Review accomplishments. extent to which a qualified plan is Group has concerns related to human 3. Provide documentation of access to proposed that will help achieve the subjects, or (4) disapproval of the potential study sites with the sample goals stated in the proposal. application is recommended because characteristics specified, and provide 2. The degree to which the applicant the research risks are sufficiently documentation of management and has met the CDC policy requirements serious and protection against the risks labor representatives to participate in regarding the inclusion of women, are inadequate as to make the entire the intervention study. ethnic, and racial groups in the application unacceptable. 4. Document the applicant’s expertise proposed project. This includes: (a) The in the area of exposure and health proposed plan for the inclusion of both H. Budget Justification (Not Scored) assessment as they pertain to sexes and racial and ethnic minority The budget will be evaluated to the occupational safety and health. populations for appropriate extent that it is reasonable, clearly 5. Provide the name, qualifications, representation; (b) The proposed justified, and consistent with the and proposed time allocation of the justification when representation is intended use of funds. Project Director who will be responsible limited or absent; (c) A statement as to Executive Order 12372 Review for administering the project. Describe whether the design of the study is staff, experience, facilities, equipment adequate to measure differences when Applications are subject to available for performance of this project, warranted; and (d) A statement as to Intergovernmental Review of Federal and other resources that define the whether the plan for recruitment and Programs as governed by Executive applicant’s capacity or potential to outreach for study participants include Order (E.O.) 12372. E.O. 12372 sets up accomplish the requirements stated the process of establishing partnerships a system for State and local government above. List the names (if known), with community(ies) and recognition of review of proposed Federal assistance qualifications, and time allocations of mutual benefits. applications. Applicants (other than the existing professional staff to be federally recognized Indian tribal assigned to (or recruited for) this C. Strength of Programs (20%) governments) should contact their State project, the support staff available for Strength of the applicant’s Single Point of Contact (SPOC) as early performance of this project, and the environmental and clinical research as possible to alert them to the available facilities including space. programs including a demonstrated prospective applications and receive 6. Human Subjects: State whether or ability in the conduct of occupational any necessary instructions on the State not Humans are subjects in this health studies involving organic dusts, process. For proposed projects serving proposal. (See Human Subjects in the gases, and respiratory health more than one State, the applicant is Evaluation Criteria and Other assessment. advised to contact the SPOC for each Requirements sections.) affected State. A current list of SPOCs 7. Inclusion of women, ethnic, and D. Project Management and Staffing is included in the application kit. racial groups: Plan (20%) If SPOCs have any State process Describe how the CDC policy Training and experience, recommendations on applications requirements will be met regarding the qualifications, and time commitment of submitted to CDC, they should be sent inclusion of women, ethnic, and racial the project director, staff, and to Victoria Sepe, Grants Management groups in the proposed research. (See organization. This includes a Project Specialist, Grants Management Branch, Women, Racial and Ethnic Minorities in director who is a distinguished scientist Procurement and Grants Office, Centers Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31829 for Disease Control and Prevention institutional review committees also 7/92, OMB Number 0937–0189) must be (CDC), 255 East Paces Ferry Road, NE., must review the project if any submitted to Victoria Sepe, Grants Room 321, Atlanta, GA 30305, no later component of IHS will be involved or Management Specialist, Grants than September 1, 1997. The Program will support the research. If any Management Branch, Procurement and Announcement Number 738 and American Indian community is Grants Office, Centers for Disease Program Title should be referenced on involved, its tribal government must Control and Prevention (CDC), 255 East the document. The granting agency does also approve that portion of the project Paces Ferry Road, NE., Room 321, not guarantee to ‘‘accommodate or applicable to it. Atlanta, GA 30305, on or before July 18, explain’’ State process 1997. Women and Minority Inclusion Policy recommendations it receives after that 1. Deadline: Applications will be date. It is the policy of the Centers of considered as meeting the deadline if Indian tribes are strongly encouraged Disease Control and Prevention (CDC) to they are either: to request tribal government review of ensure that women and racial and (a) Received on or before the deadline the proposed application. If tribal ethnic groups will be included in CDC date, or governments have any tribal process supported research projects involving (b) Sent on or before the deadline date recommendations on applications human subjects, whenever feasible and and received in time for submission to submitted to CDC, they should forward appropriate. Racial and ethnic groups the objective review group. (The them to: Victoria Sepe, Grants are those defined in OMB Directive No. applicants must request a legibly dated Management Specialist, Grants 15 and include American Indian, U.S. Postal Service postmark or obtain Management Branch, Centers for Alaskan Native, Asian, Pacific Islander, a receipt from a commercial carrier or Disease Control and Prevention, 255 Black and Hispanic. Applicants shall the U.S. Postal Service. Private metered East Paces Ferry Road, NE., Room 321, ensure that women, racial and ethnic postmarks will not be acceptable as Mailstop E–13, Atlanta, GA 30305. This minority population are appropriately proof of timely mailing.) should be done no later than September represented for research involving 2. Late Applicants: Applications that 1, 1997. The granting agency does not human subjects. Where clear and do not meet the criteria in 1.(a) or 1.(b) guarantee to ‘‘accommodate or explain’’ compelling rationale exist that inclusion above are considered late applications. for tribal process recommendations it is inappropriate or not feasible, this Late applications will not be considered receives after that date. situation must be explained as part of and will be returned to the applicants. Public Health System Reporting the application. In conducting the Where to Obtain Additional Requirements review of applications for scientific merit, review groups will evaluate Information This program is not subject to the proposed plans for inclusion of Public Health System Reporting To receive additional written minorities and both sexes as part of the Requirements. information call (404) 332–4561. You scientific assessment and assigned will be asked to leave your name, Catalog of Federal Domestic Assistance score. This policy does not apply to address, and telephone number and will Number research studies when the investigator need to refer to NIOSH Announcement The Catalog of Federal Domestic cannot control the race, ethnicity and/ 738. You will receive a complete Assistance Number for this program is or sex of subjects. Further guidance on program description, information on 93.262. this policy is contained in the Federal application procedures, and application Register, Vol. 60, No. 179, Friday, forms. CDC will not send application Other Requirements September 15, 1995, pages 47947– kits by facsimile or express mail. Please Paperwork Reduction Act 47951. refer to NIOSH Announcement Number Projects funded through the Application Submission and Deadline 738 when requesting information and submitting an application. cooperative agreement mechanism of A. Preapplication Letter of Intent this program involving the collection of If you have questions after reviewing information from 10 or more individuals Although not a prerequisite of the contents of all the documents, will be subject to review and approval application, a non-binding letter of business management technical by the Office of Management and intent-to-apply is requested from assistance may be obtained from Budget (OMB) under the Paperwork potential applicants. The letter should Victoria Sepe, Grants Management Reduction Act. be submitted to Victoria Sepe, Grants Specialist, Grants Management Branch, Management Specialist, Grants Procurement and Grants Office, Centers Human Subjects Management Branch, Procurement and for Disease Control and Prevention If the proposed project involves Grants Office, CDC at the address listed (CDC), Mailstop E–13, Room 321, 255 research on human subjects, the in this section. It should be postmarked East Paces Ferry Road, NE., Atlanta, GA applicant must comply with the DHHS no later than July 1, 1997. The letter 30305, telephone (404) 842–6804, Regulations, 45 CFR Part 46, regarding should identify Program Announcement Internet: [email protected]. the protection of human subjects. 738 and name of the principal Programmatic technical assistance Assurance must be provided to investigator. The letter of intent does may be obtained from Patrick Hintz, demonstrate the project will be subject not influence review or funding M.S., Division of Respiratory Disease to initial and continuing review by an decisions, but it will enable CDC to plan Studies, National Institute for appropriate institutional review the review more efficiently and will Occupational Safety and Health, Centers committee. The applicant will be ensure that each applicant receives for Disease Control and Prevention responsible for providing assurance in timely and relevant information prior to (CDC), Mailstop P04/111, 1095 accordance with the appropriate application submission. Willowdale Road, Morgantown, WV guidelines and form provided in the 26505–2888, telephone (304) 285–5744, B. Application application kit. Internet: [email protected]. In addition to other applicable The original and two copies of the This and other CDC announcements committees, Indian Health Service (IHS) application PHS Form 5161–1 (Revised are available through the CDC homepage 31830 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices on the Internet. The address for the CDC DEPARTMENT OF HEALTH AND existing collection of information, homepage is: http://www.cdc.gov. HUMAN SERVICES before submitting the collection to OMB Potential applicants may obtain a for approval. To comply with this Food and Drug Administration copy of Healthy People 2000 (Full requirement, FDA is publishing notice Report, Stock No. 017–001–00474–0) or [Docket No. 97N±0212] of the proposed collection of information listed below. Healthy People 2000 (Summary Report, Agency Information Collection Stock No. 017–001–00473–1) referenced With respect to the following Activities: Proposed Collection; collection of information, FDA invites in the Introduction section through the Comment Request; Extension comments on: (1) Whether the proposed Superintendent of Documents, collection of information is necessary Government Printing Office, AGENCY: Food and Drug Administration, for the proper performance of FDA’s Washington, DC 20402–9325, telephone HHS. functions, including whether the (202) 512–1800. ACTION: Notice. information will have practical utility; The National Occupational Research (2) the accuracy of FDA’s estimate of the Agenda: copies of this publication may SUMMARY: The Food and Drug burden of the proposed collection of be obtained from the National Institute Administration (FDA) is announcing an information, including the validity of for Occupational Safety and Health, opportunity for public comment on the the methodology and assumptions used; proposed collection of certain Publications Office, 4676 Columbia (3) ways to enhance the quality, utility, information by the agency. Under the Parkway, Cincinnati, OH 45226–1998 or and clarity of the information to be Paperwork Reduction Act of 1995 (the collected; and (4) ways to minimize the telephone 1–800–356–4674, and is PRA), Federal agencies are required to available through the NIOSH Home burden of the collection of information publish notice in the Federal Register on respondents, including through the Page; http://www.cdc.gov/niosh/ concerning each proposed collection of nora.html. use of automated collection techniques, information, including each proposed when appropriate, and other forms of NORA Priority Research Areas extension of an existing collection of information technology. information, and to allow 60 days for Disease and Injury public comment in response to the Importer’s Entry Notice—(OMB Control Allergic and Irritant Dermatitis notice. This notice solicits comments on Number 0910–0046)—Extension Asthma and Chronic Obstructive the electronic collection of data by FDA Section 801 of the Federal Food, Drug, Pulmonary Disease regarding FDA-regulated products of Fertility and Pregnancy Abnormalities and Cosmetic Act (the act) (21 U.S.C. foreign origin that are being offered for 381) charges FDA with the following Hearing Loss import into the United States. Infectious Diseases responsibilities: (1) Assuring that DATES: Submit written comments on the Low Back Disorders foreign-origin FDA-regulated foods, collection of information by August 11, Musculoskeletal Disorders of the Upper drugs, cosmetics, medical devices, and 1997. Extremities radiological health products offered for Traumatic Injuries ADDRESSES: Submit written comments import into the United States meet the on the collection of information to the same requirements of the act as do Work Environment and Workforce Dockets Management Branch (HFA– domestic products; and (2) preventing Emerging Technologies 305), Food and Drug Administration, shipments from entering the country if Indoor Environment 12420 Parklawn Dr., rm. 1–23, they are not in compliance. Mixed Exposures Rockville, MD 20857. All comments The information collected by FDA Organization of Work should be identified with the docket consists of the following: (1) Product Special Populations at Risk number found in brackets in the code, an alpha-numeric series of Research Tools and Approaches heading of this document. characters that identifies each product Cancer Research Methods FOR FURTHER INFORMATION CONTACT: FDA regulates; (2) FDA country of Control Technology and Personal Margaret R. Wolff, Office of Information origin, the country where the FDA- Protective Equipment Resources Management (HFA–250), registered or FDA-responsible firm is Exposure Assessment Methods Food and Drug Administration, 5600 located; (3) FDA manufacturer, the party Health Services Research Fishers Lane, rm. 16B–19, Rockville, who manufactured, grew, assembled, or Intervention Effectiveness Research MD 20857, 301–827–1223. otherwise processed the goods (if more Risk Assessment Methods SUPPLEMENTARY INFORMATION: Under the than one, the last party who Social and Economic Consequences of PRA (44 U.S.C. 3501–3520), Federal substantially transformed the product); Workplace Illness and Injury agencies must obtain approval from the (4) shipper, the party responsible for Surveillance Research Methods Office of Management and Budget packing, consolidating, or arranging the Dated: June 4, 1997. (OMB) for each collection of shipment of the goods to their final Diane D. Porter, information they conduct or sponsor. destination; (5) quantity and value of ‘‘Collection of information’’ is defined the shipment; and (6) if appropriate, Acting Director, National Institute for Occupational Safety and Health, Centers for in 44 U.S.C. 3502(3) and 5 CFR affirmation of compliance, a code that Disease Control and Prevention (CDC). 1320.3(c) and includes agency requests conveys specific FDA information, such or requirements that members of the as registration number, foreign [FR Doc. 97–15180 Filed 6–10–97; 8:45 am] public submit reports, keep records, or government certification, etc. This BILLING CODE 4163±19±P provide information to a third party. information is collected electronically Section 3506(c)(2)(A) of the PRA (44 by the entry filer via the U.S. Customs U.S.C. 3506(c)(2)(A)) requires Federal Service’s Automated Commercial agencies to provide a 60-day notice in System at the same time he/she files an the Federal Register concerning each entry for import with the U.S. Customs proposed collection of information, Service. FDA uses the information to including each proposed extension of an make admissibility decisions about Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31831

FDA-regulated products offered for FDA estimates the burden of this import into the United States. collection of information as follows:

ESTIMATED ANNUAL REPORTING BURDEN

Annual Frequency Total Annual No. of Respondents per Response Responses Hours per Response Total Hours

2,505 1,212.54 3,037,426 0.07 h 229,693 There are no capital costs or operating and maintenance costs associated with this collection.

The source of the estimate for the Beatrice Foods Co., Inc., of Chicago, Management Branch (HFA–305), Food number of respondents is the number of the submitter of the original GRAS and Drug Administration, 12420 importers who submitted entry data for affirmation petition no longer exists. Parklawn Dr., rm. 1–23, Rockville, MD foreign-origin FDA-regulated products Beatrice Cheese Inc., 770 North 20857. in 1996. The estimated reporting burden Springdale Rd., Waukesha, WI, 53180, FOR FURTHER INFORMATION CONTACT: is based on information obtained by which was formerly part of Beatrice Chiu S. Lin, Center for Devices and contacting several past respondents. Foods Co., Inc., indicated that the Radiological Health (HFZ–480), Food Dated: June 3, 1997. proposed use had been abandoned and and Drug Administration, 9200 William K. Hubbard, acknowledged that the agency should Corporate Blvd., Rockville, MD 20850, close the petition file and withdraw the Associate Commissioner for Policy 301–443–8913. Coordination. petition. Therefore, the agency is SUPPLEMENTARY INFORMATION: On announcing that it considers this [FR Doc. 97–15168 Filed 6-10-97; 8:45 am] December 6, 1996, Louise N. Howe of petition to be withdrawn, without BILLING CODE 4160±01±F the law firm HALE and DORR, as the prejudice to a future filing, in U.S. Representative on behalf of accordance with 21 CFR 171.7. Millenium Medical Supply, Inc., DEPARTMENT OF HEALTH AND Dated: May 12, 1997. Ontario, Canada, N3T 5M1, submitted to HUMAN SERVICES Alan M. Rulis, CDRH an application for premarket TM Director, Office of Premarket Approval, approval of Needle-Ease 2501. This Food and Drug Administration Center for Food Safety and Applied Nutrition. device is a sharps needle destruction [Docket No. 97G±0219] [FR Doc. 97–15313 Filed 6–10–97; 8:45 am] device that is intended for home use by BILLING CODE 4160±01±F diabetics to reduce the incidence of Beatrice Foods, Inc.; Withdrawal of needlesticks by the incineration of 28– GRAS Affirmation Petition 30 gauge needles, 29 and 30 gauge DEPARTMENT OF HEALTH AND diabetic ‘‘pen tips,’’ and 23–26 gauge AGENCY: Food and Drug Administration, HUMAN SERVICES diabetic lancets. HHS. In accordance with the provisions of ACTION: Notice. Food and Drug Administration section 515(c)(2) of the act (21 U.S.C. [Docket No. 97M±0186] 360e(c)(2)) as amended by the Safe SUMMARY: The Food and Drug Medical Devices Act of 1990, this Administration (FDA) is announcing the Millenium Medical Supply, Inc.; premarket approval application (PMA) withdrawal, without prejudice to a Premarket Approval of Needle-EaseTM was not referred to the General Hospital future filing, of a petition (GRASP 2501 and Personal Use Devices Panel of the 5G0047) proposing that the use of Medical Devices Advisory Committee, magnesium caseinate for use as an AGENCY: Food and Drug Administration, an FDA advisory committee, for review ingredient for making cheese alternate HHS. and recommendation because the products which can be blended with ACTION: Notice. information in the PMA substantially natural cheese or used alone as a total duplicates information previously substitute for cheese be affirmed as SUMMARY: The Food and Drug reviewed by this panel. On March 6, generally recognized as safe (GRAS). Administration (FDA) is announcing its 1997, CDRH approved the application FOR FURTHER INFORMATION CONTACT: approval of the application submitted by a letter to the applicant from the Rudolph Harris, Center for Food Safety by Louise N. Howe of the law firm Director of the Office of Device and Applied Nutrition (HFS–206),Food HALE and DORR, as the U.S. Evaluation, CDRH. and Drug Administration, 200 C St. SW., Representative on behalf of Millenium A summary of the safety and Washington, DC 20204, 202–418–3090. Medical Supply, Inc., Ontario, Canada, effectiveness data on which CDRH SUPPLEMENTARY INFORMATION: In a notice for premarket approval, under the based its approval is on file in the published in the Federal Register of Federal Food, Drug, and Cosmetic Act Dockets Management Branch (address February 4, 1975 (40 FR 5180), FDA (the act), of Needle-EaseTM 2501. FDA’s above) and is available from that office announced that a petition (GRASP Center for Devices and Radiological upon written request. Requests should 5G0047) had been filed by Beatrice Health (CDRH) notified the applicant, be identified with the name of the Foods Co., Inc., 1526 South State St., by letter of March 6, 1997, of the device and the docket number found in Chicago, IL 60605. This petition approval of the application. brackets in the heading of this proposed that the use of magnesium DATES: Petitions for administrative document. caseinate for use as an ingredient for review by July 11, 1997. making cheese alternate products which ADDRESSES: Written requests for copies Opportunity For Administrative can be blended with natural cheese or of the summary of safety and Review used alone as a total substitute for effectiveness data and petitions for Section 515(d)(3) of the act authorizes cheese is GRAS. administrative review to the Dockets any interested person to petition, under 31832 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices section 515(g) of the act, for ACTION: Notice. meeting cancellation on the CBER home administrative review of CDRH’s page at http://www.fda.gov/cber/ decision to approve this application. A SUMMARY: The Food and Drug confmeet.htm. Publication of any petitioner may request either a formal Administration (FDA) is announcing the meeting cancellation will be made only hearing under part 12 (21 CFR part 12) remaining 1997 meetings of its standing as time permits. of FDA’s administrative practices and oversight committee in the Center for Because the committee’s deliberations procedures regulations or a review of Biologics Evaluation and Research will deal with confidential commercial the application and CDRH’s action by an (CBER) that conducts a periodic review information, all meetings will be closed independent advisory committee of of CBER’s use of its refusal to file (RTF) to the public. The committee’s experts. A petition is to be in the form practices on product license deliberations will be reported in the of a petition for reconsideration under applications (PLA’s), establishment minutes of the meeting. Although those (21 CFR 10.33(b)). A petitioner shall license applications (ELA’s), and minutes will not be publicly available identify the form of review requested biologics license applications (BLA’s). because they will contain confidential (hearing or independent advisory CBER’s RTF oversight committee commercial information, summaries of committee) and shall submit with the examines all RTF decisions which the committee’s deliberations, with all petition supporting data and occurred during the previous quarter to such confidential commercial information showing that there is a assess consistency across CBER offices information omitted, may be requested genuine and substantial issue of and divisions in RTF decisions. in writing from the Freedom of material fact for resolution through DATES: The next meetings will be held Information Office (HFI–35), Food and administrative review. After reviewing on July 8, 1997, and October 14, 1997. Drug Administration, 5600 Fishers the petition, FDA will decide whether to FOR FURTHER INFORMATION CONTACT: Joy Lane, rm. 12A–16, Rockville, MD 20857, grant or deny the petition and will A. Cavagnaro, Center for Biologics approximately 15 working days after the publish a notice of its decision in the Evaluation and Research (HFM–5), Food meeting, at a cost of 10 cents per page. Federal Register. If FDA grants the and Drug Administration, 1401 If, following the committee’s review, an petition, the notice will state the issue Rockville Pike, Rockville, MD 20852– RTF decision changes, the appropriate to be reviewed, the form of the review 1448, 301–827–0379. division within CBER will notify the to be used, the persons who may SUPPLEMENTARY INFORMATION: In the sponsor. participate in the review, the time and Federal Register of May 15, 1995 (60 FR Dated: June 4, 1997. place where the review will occur, and 25920), FDA announced the William K. Hubbard, other details. establishment and first meeting of Associate Commissioner for Policy Petitioners may, at any time on or CBER’s standing oversight committee. Coordination. before July 11, 1997, file with the As explained in the notice, the [FR Doc. 97–15165 Filed 6–10–97; 8:45 am] Dockets Management Branch (address importance to the public health of BILLING CODE 4160±01±F above) two copies of each petition and getting new biological products on the supporting data and information, market as efficiently as possible has identified with the name of the device made improving the biological product DEPARTMENT OF HEALTH AND and the docket number found in evaluation process an FDA priority. HUMAN SERVICES brackets in the heading of this CBER’s managed review process focuses document. Received petitions may be on specific milestones or intermediate Health Resources and Services seen in the office above between 9 a.m. goals to ensure that a quality review is Administration and 4 p.m., Monday through Friday. conducted within a specified time Agency Information Collection This notice is issued under the period. CBER’s RTF oversight Activities: Proposed Collection: Federal Food, Drug, and Cosmetic Act committee continues CBER’s effort to Comment Request (secs. 515(d), 520(h) (21 U.S.C. 360e(d), promote the timely, efficient, and 360j(h))) and under authority delegated consistent review of PLA’s, ELA’s, and In compliance with the requirement to the Commissioner of Food and Drugs BLA’s. for opportunity for public comment on (21 CFR 5.10) and redelegated to the FDA regulations on filing PLA’s, proposed data collection projects Director, Center for Devices and ELA’s, and BLA’s are found in 21 CFR (section 3506(c)(2)(A) of Title 35, United Radiological Health (21 CFR 5.53). 601.2 and 601.3. A sponsor who States Code, as amended by the Dated: April 22, 1997. receives an RTF notification may Paperwork Reduction Act of 1995, request an informal conference with Joseph A. Levitt, Public Law 104–13), the Health CBER, and thereafter may ask that the Resources and Services Administration Deputy Director for Regulations Policy, Center application be filed over protest, similar for Devices and Radiological Health. (HRSA) will publish periodic to the procedure for drugs described summaries of proposed projects being [FR Doc. 97–15167 Filed 6–10–97; 8:45 am] under 21 CFR 314.101(a)(3). developed for submission to OMB under BILLING CODE 4160±01±F CBER’s standing RTF oversight the Paperwork Reduction Act of 1995. committee consists of senior CBER To request more information on the DEPARTMENT OF HEALTH AND officials, a senior official from FDA’s proposed project or to obtain a copy of HUMAN SERVICES Center for Drug Evaluation and the data collection plans, call the HRSA Research, and FDA’s Chief Mediator and Reports Clearance Officer on (301) 443– Food and Drug Administration Ombudsman. Meetings will ordinarily 1129. be held once a quarter to review all of Comments are invited on: (a) Whether Product, Establishment, and Biologics the RTF decisions. The purpose of such the proposed collection of information License Applications, Refusal to File; a review is to assess the consistency is necessary for the proper performance Meeting of Oversight Committee within CBER in rendering RTF of the functions of the agency, including decisions. If there are no RTF decisions whether the information shall have AGENCY: Food and Drug Administration, to review, however, the meeting may be practical utility; (b) the accuracy of the HHS. cancelled. FDA intends to post any agency’s estimate of the burden of the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31833 proposed collection of information; (c) OMB Approval No. 0915–0034, Lender’s 42 CFR 60.7(a)(3), School section of ways to enhance the quality, utility, and Application, Borrower Status, Manifest, the application clarity of the information to be Loan Transfer, Contract for Loan 42 CFR 60.51(a), School section of the collected; and (d) ways to minimize the Insurance: application burden of the collection of information Reporting Notification on respondents, including through the 42 CFR 60.7(c)(3), Employer 42 CFR 60.7(a)(2), Federal debt use of automated collection techniques certification of nonstudent status collection policies—student or other forms of information 42 CFR 60.31(a), Lender annual 42 CFR 60.33(c), Creditworthiness of technology. application applicant Proposed Project: The Health Education 42 CFR 60.38(a), Loan reassignment OMB Approval No. 0915–0043, Assistance Loan (HEAL) Program Notification Promissory Note, Repayment Schedule, Regulations—42 CFR part 60—0915– 42 CFR 60.12(c)(1), Borrower Call Report 0108—Extension, No Change deferment Notification This clearance request is for extension OMB Approval No. 0915–0036, Lender’s 42 CFR 60.7(c)(2) Federal debt of approval for the notification, Application for Insurance Claim: collection policies—nonstudent reporting and recordkeeping Reporting 42 CFR 60.11(e), Establishment of requirements in the HEAL program to 42 CFR 60.35(a)(2), Lender skip- repayment terms—borrower insure that the lenders, holders and tracing activities 42 CFR 60.11(f)(5), Borrower notice of schools participating in the HEAL 42 CFR 60.40(a), Lender supplemental repayment agreement program follow sound management documentation to litigate a default 42 CFR 60.33(e), Executed note to procedures in the administration of 42 CFR 60.40(c)(1) (i), (ii), and (iii), borrower federally-insured student loans. While Lender default claim 42 CFR 60.34(b)(1), Establishment of the regulatory requirements are 42 CFR 60.40(c)(2), Lender death repayment terms—lender approved under this OMB number, claim OMB Approval No. 0915–0204, much of the burden associated with the 42 CFR 60.40(c)(3), Lender disability regulations is cleared under the OMB Physician’s Certification of Permanent claim and Total Disability numbers for the HEAL forms used to 42 CFR 60.40(c)(4), Lender report of report required information (listed student bankruptcy Reporting below). The table listed at the end of 42 CFR 60.39(b)(2), Holder request to this notice contains the estimate of OMB Approval No. 0915–0038, Student Secretary to determine borrower burden for the remaining regulations. Application disability Annual Response Burden for the Reporting The estimate of burden for the following regulations is cleared by OMB 42 CFR 60.7(a)(1)(ii), Student regulatory requirements of this when the reporting forms are cleared: application clearance are as follows:

TABLE OF REGULATORY SECTIONS AND RESPONDENT BURDEN

Annual re- Type of burden Transactions Estimated time per sponse burden per year transaction (hours)

REPORTING Subpart D: LenderÐ32 Participating Lenders

60.32(b) Application for Loan ...... 10 0.00 ...... 0 60.40(c)(1)(iv) Bankruptcy Report to the Secretary ...... 140 12 min...... 28 60.42(d) Audit ...... 32 240 min. (4 hrs.) ...... 128 60.42(e) Evidence of Fraud ...... 3 120 min. (2 hrs.) ...... 6 60.43(b) Evidence of Cause for Administrative Hearing ...... 2 180 min. (3 hrs.) ...... 6

Subtotal ...... 177 ...... 168

Subpart E: SchoolÐ190 Participating Schools

60.56(c) Biennial Audit ...... 190 240 min. (4 hrs.) ...... 760 60.60(b) Evidence of Cause for Administrative Hearing ...... 3 180 min. (3 hrs.) ...... 9 60.61(b) Evidence of Fraud ...... 0.00 0.00 ...... 0.00 60.61(d) Bankruptcy Documentation ...... 140 10 min...... 23 Subtotal ...... 333 ...... 792

Total Reporting ...... 960 NOTIFICATION Subpart B: BorrowerÐ20,640 Borrowers

60.0(a)(5) Sale or Transfer of Loan ...... Burden included in 60.38a 60.8(b)(3) Status change ...... 20,500 10 min...... 3,417 60.61(d)* Bankruptcy ...... 140 10 min...... 23

Subtotal ...... 20,640 ...... 3,440 31834 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

TABLE OF REGULATORY SECTIONS AND RESPONDENT BURDENÐContinued

Annual re- Type of burden Transactions Estimated time per sponse burden per year transaction (hours)

Subpart C: Loan/LenderÐ32 Participating Lenders

60.18 Loan Consolidation ...... 5,000 40 min...... 3,333 60.21(b)(2) Refund Check Transfer ...... 1,000 30 min...... 500 60.21(b)(2) Refund Check Notification ...... 1,000 15 min...... 250

Subpart D: LenderÐ32 Participating Lenders

60.33(g) Denial of Loan ...... 133 14 min...... 31 60.33(h) Borrower Indebtedness ...... 15,227 1 min...... 254 60.34(c) Biannual Debt Status ...... 250,000 10 min...... 41,667 60.35(a)(1) Delinquent Payment Notice to Borrower ...... 9,500 30 min...... 4,750 60.35(c)(2) Delinquent Notice to Credit Reporting Agency ...... 1,300 15 min...... 325 60.35(e) Demand Letter ...... 1,300 10 min...... 217 60.37(a) Right to Forbearance ...... 2,400 5 min...... 200 60.37(c)(3) Reminder of obligation to pay ...... 1,200 10 min...... 200 60.38(a) Notification to Borrower of Loan Reassignment ...... 7,500 5 min...... 625 60.40(c)(1)(iv) and (c)(4) Default Notification to Courts ...... 140 25 min...... 58 Subtotal ...... 295,700 ...... 51,915

Subpart E: SchoolÐ190 Participating Schools

60.53 Change in Student Status ...... Burden included with 60.61(a)(7) 60.54 Notice of Refund Payment ...... 190 25 min...... 79 60.57 Borrower Identifying Information ...... 1,240 8 min...... 165 60.61(a)(1) Entrance Interview ...... 6,818 35 min...... 3,977 60.61(a)(2) Exit Interview ...... 6,818 50 min...... 5,682 60.61(a)(2) Student Departure Notification to Lender ...... 190 35 min...... 111 60.61(a)(3) Unresolved Discrepancies to Lender ...... 204 12 min...... 41 60.61(a)(7) Change in Student Address to Lender ...... 10,227 10 min...... 1,705

Subtotal ...... 25,687 ...... 11,760 Total Notification ...... 67,115

RECORDKEEPING Subpart B: Borrower

60.7(a)(2) Student Signed Stmt.-Gov. Debt Collection Procedures ...... Burden included in 60.34(b)(2) and 60.61(a)(1)&(2) 60.7(c)(2) Non-Student signed Stmt.-Gov. Debt Collection ...... 0.00 ...... 0.00 Subpart D: LenderÐ32 Participating Lenders

60.31(c) Procedures for Servicing & Collecting Loans ...... 32 240 min. (4 hrs.) ...... 128 60.33(e) Promissory Note ...... Burden included in 60.42(a)(2) 60.34(b)(2) Terms of Repayment Schedules ...... 15,227 5 min...... 1,269 60.35(a)(1) Attempts to Collect Delinquent Payment ...... 10,000 5 min...... 833 60.35(a)(2) Documentation of Skip-tracing ...... 2,500 10 min...... 417 60.37(a)(1) Documentation of Borrower's Inability to Pay ...... 2,500 15 min...... 625 60.37(c) Renewals of Forbearance ...... 1,200 10 min...... 200 60.37(c)(1) Basis for Belief of Borrower Itent to Default ...... 300 10 min...... 50 60.40(a) Documentation of Insurance Claims ...... 978 70 min...... 1,141 60.42(a)(1) Loan Records ...... Burden included in 60.42(a)(2) 60.42(a)(2) Borrower's Payment History ...... 133,500 15 min...... 33,375

Subtotal ...... 166,237 ...... 38,038

Subpart E: SchoolÐ190 Participating Schools

60.51(f)(1) Documentation of Needs Analysis Adjustment ...... Burden included in 60.61(a)(5) 60.51(f)(2) Documentation of Standard Student Budget Adjustments ...... Burden included in 60.61(a)(5) 60.56(a) Required Retention of HEAL Borrower Records ...... Burden included in 60.61(a)(5) 60.56(b) Five year Retention of Student Records ...... Burden included in 60.61(a)(5) 60.57 Retention of Reports to the Secretary ...... 190 45 min...... 143 60.61(a)(1) Entrance Interview ...... 6,8185 min. 568. 60.61(a)(2) Exit Interview ...... 6,818 5 min...... 568 60.61(a)(4) HEAL Check Receipt ...... 190 300 min. (5 hrs.) ...... 950 60.61((a)(5) Complete Records of HEAL Borrowers ...... 133,500 15 min...... 33,375 60.61(a)(6) Criteria for Student Budgets ...... 10,227 2 min...... 341

Subtotal ...... 154,743 ...... 35,945

Total Recordkeeping ...... 73,983 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31835

TABLE OF REGULATORY SECTIONS AND RESPONDENT BURDENÐContinued

Annual re- Type of burden Transactions Estimated time per sponse burden per year transaction (hours)

Total Annual Burden ...... 142,058 1 No new HEAL loans. 2 Burden is from Subpart EÐSchool.

Send comments to Patricia Royston, 5,000 women died from the disease. in Europe have demonstrated the HRSA Reports Clearance Officer, Room While the widespread promotion and commercial importance of a vaccine for 14–36, Parklawn Building, 5600 Fishers use of the Pap smear has contributed to hepatitis A. An attenuated vaccine Lane, Rockville, MD 20857. Written the reduced mortality rate associated would be more economical and easier to comments should be received within 60 with the disease over the last 30 years, administer. (portfolio: Infectious days of this notice. there is still a need for improvement Diseases—Vaccines, viral, non-AIDS) and optimization of the screening Dated: June 3, 1997. Vaccine for Dengue Virus process. Despite tremendous efforts, the James J. Corrigan, automated analysis of cervical PAP C–J Lai, M Bray, AG Pletnev, R Men, Y– Acting Associate Administrator for smears based on cytopathological stains M Zhang, KH Eckels (NIAID) Management and Program Support. has not been achieved. Also, Serial No. 08/250,802 filed 27 May 94 [FR Doc. 97–15278 Filed 6–10–97; 8:45 am] cytopathological analyses reveal Licensing Contact: Gloria H. Richmond, BILLING CODE 4160±15±P insufficient information to predict 301/496–7056 ext 268 disease progression. The claimed invention relates to This invention provides a method of recombinant modified or viable DEPARTMENT OF HEALTH AND detecting the presence of invasive chimeric dengue viruses for use as HUMAN SERVICES cervical carcinoma by detecting in a vaccines against dengue and other National Institutes of Health cervical cell taken from a patient the flavivirus disease, including tick-borne presence of a chromosomal aberration encephalitis. Dengue is a mosquito- Government-Owned Inventions; indicating the presence of invasive transmitted viral disease which occurs Availability for Licensing cervical carcinoma. The invention also in tropical and subtropical regions provides a method of diagnosing throughout the world. Inactivated whole AGENCY: National Institutes of Health. advanced-stage cervical carcinoma in a dengue virus vaccines have been shown ACTION: Notice. patient as well as a method of to be insufficiently immunogenic and classifying the progression of dysplastic live dengue virus vaccines prepared by SUMMARY: The inventions listed below cervical cells from non-invasive to serial passage in cell culture have not are owned by agencies of the U.S. invasive cervical carcinoma. In been shown to be consistently Government and are available for addition, the invention provides kits attenuated. A dengue vaccine is still not licensing in the U.S. in accordance with comprising nucleic acids that available. The present invention 35 U.S.C. 207 to achieve expeditious specifically hybridize in chromosome represents a technical breakthrough, commercialization of results of federally 3q and specifically hybridize to another which provides new approaches to funded research and development. chromosome, and to compositions dengue vaccines by construction of Foreign patent applications are filed on comprising nucleic acids. (portfolio: chimeric dengue viruses of all four selected inventions to extend market Cancer—Diagnostics, in vitro, other) serotypes and strategic modification to coverage for U.S. companies and may produce attentuated virus strains. Chimeric Nucleic Acid Sequences also be available for licensing. Several fields of use remain available for Encoding attenuated Hepatitis A ADDRESSES: Licensing information and licensing. (portfolio: Infectious Viruses and the Use of These Sequences copies of the U.S. patent applications Diseases—Vaccines, viral, non-AIDS) listed below may be obtained by writing and Viruses as Vaccines to the indicated licensing contact at the SU Emerson, SA Harmon, E Ehrenfeld, Parvovirus B19 Receptor and Office of Technology Transfer, National DF Summers (NIAID) Parvovirus B19 Detection Institutes of Health, 6011 Executive Serial No. 08/547,482 filed 24 Oct 95 N Young, K Brown (NHLBI) Boulevard, Suite 325, Rockville, Licensing Contact: Gloria Richmond, Serial No. 08/034,132 filed 22 Mar 93; Maryland 20852–3804; telephone: 301/ 301/496–7056 ext. 268 U.S. Patent 5,449,608 issued 12 Sep 496–7057; fax: 301/402–0220. A signed This invention is directed to chimeric 95 Confidential Disclosure Agreement will hepatitis A viruses, containing Licensing Contact: Gloria H. Richmond, be required to receive copies of the mutations in the 2A gene, which will be 301/496–7056 ext 268 patent applications. used as the basis for an attenuated The claimed invention provides a vaccine for humans. The mutations in method of detecting the presence of a Methods for Detecting Cervical Cancer the 2A gene are unusual because they parvovirus in a sample. Parvoviruses T Ried et al. (NHGRI) are not naturally occurring mutations infect animals and man. In man, the U.S. Patent Serial No. 08/781,424 filed but were engineered into an infectious only known pathogenic member of this 10 Jan 97 cDNA clone. These mutations in 2A are family is parvovirus B19. The inventors Licensing Contact: Mary Savagner, 301/ able to decrease pathology substantially have identified the parvovirus B19 496–7735 ext. 205 and offer the opportunity of receptor which provides for a method to Last year, nearly 16,000 women in the constructing a virus that will induce diagnose, prevent, and treat parvovirus United States were diagnosed with effective immunity without causing infection utilizing the binding affinity invasive cervical carcinoma and nearly disease. Sales of the inactivated vaccine for the receptor. (portfolio: Infectious 31836 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Diseases—diagnostics, viral, non-AIDS; Contact Person: Dr. Michael Micklin, Place: Latham Hotel, Washington, DC. Infectious Diseases—Therapeutics, anti- Scientific Review Administrator, 6701 Contact Person: Dr. Cheryl Corsaro, viral, non-AIDS) Rockledge Drive, Room 5198, Bethesda, Scientific Review Administrator, 6701 Maryland 20892, (301) 435–1258. Rockledge Drive, Room 6172, Bethesda, Dated: May 30, 1997. Name of SEP: Behavioral and Maryland 20892, (301) 435–1045. Barbara M. McGarey, Neurosciences. Name of SEP: Biological and Physiological Deputy Director, Office of Technology Date: July 16, 1997. Sciences. Transfer. Time: 8:30 a.m. Date: July 14–15, 1997. [FR Doc. 97–15299 Filed 6–10–97; 8:45 am] Place: Ramada Inn, Rockville, MD. Time: 8:30 a.m. Contact Person: Dr. Luigi Giacometti, Place: Doubletree Hotel, Rockville, MD. BILLING CODE 4140±01±M Scientific Review Administrator, 6701 Contact Person: Dr. Syed Quadri, Scientific Rockledge Drive, Room 5170, Bethesda, Review Administrator, 6701 Rockledge Drive, Maryland 20892, (301) 435–1246. Room 4132, Bethesda, Maryland 20892, (301) DEPARTMENT OF HEALTH AND 435–1211. HUMAN SERVICES Name of SEP: Chemistry and Related Sciences. Name of SEP: Biological and Physiological Sciences. National Institutes of Health Date: July 17, 1997. Time: 8:30 a.m. Date: July 16, 1997. Time: 8:30 a.m. Division of Research Grants; Notice of Place: Holiday Inn-Georgetown, Washington, DC. Place: Holiday Inn, Silver Spring, MD. Closed Meetings Contact Person: Dr. John Bowers, Scientific Contact Person: Dr. Bob Weller, Scientific Review Administrator, 6701 Rockledge Drive, Pursuant to Section 10(d) of the Review Administrator, 6701 Rockledge Drive, Room 4168, Bethesda, Maryland 20892, (301) Room 5204, Bethesda, Maryland 20892, (301) Federal Advisory Committee Act, as 435–1725. 435–1259. amended (5 U.S.C. Appendix 2), notice Name of SEP: Biological and Physiological Name of SEP: Biological and Physiological is hereby given of the following Division Sciences. Sciences. of Research Grants Special Emphasis Date: July 17, 1997. Date: July 25, 1997. Panel (SEP) meetings: Time: 2:45 p.m. Time: 8:30 a.m. Place: Doubletree Hotel, Rockville, MD. Purpose/Agenda: To review individual Place: Doubletree Hotel, Rockville, MD. Contact Person: Dr. Michael Micklin, grant applications. Contact Person: Dr. Martin Padarathsingh, Scientific Review Administrator, 6701 Name of SEP: Chemistry and Related Scientific Review Administrator, 6701 Rockledge Drive, Room 5198, Bethesda, Sciences. Rockledge Drive, Room 4146, Bethesda, Maryland 20892, (301) 435–1258. Date: June 24, 1997. Maryland 20892, (301) 435–1717. The meetings will be closed in accordance Time: 3:00 p.m. Name of SEP: Biological and Physiological with the provisions set forth in sections Place: NIH, Rockledge 2, Room 5150, Sciences. 552b(c)(4) and 552b(c)(6), Title 5, U.S.C. Telephone Conference. Date: July 17–18. 1997. Applications and/or proposals and the Contact Person: Dr. Zakir Bengali, Time: 8:20 a.m. discussions could reveal confidential trade Scientific Review Administrator, 6701 Place: Doubletree Hotel, Rockville, MD. secrets or commercial property such as Rockledge Drive, Room 5150, Bethesda, Contact Person: Dr. Bob Weller, Scientific patentable material and personal information Maryland 20892, (301) 435–1742. Review Administrator, 6701 Rockledge Drive, concerning individuals associated with the Room 5204, Bethesda, Maryland 20892, (301) Name of SEP: Behavioral and applications and/or proposals, the disclosure 435–1259. Neurosciences. of which would constitute a clearly Date: July 2, 1997. Name of SEP: Biological and Physiological unwarranted invasion of personal privacy. Time: 8:30 a.m. Sciences. (Catalog of Federal Domestic Assistance Place: Capitol Holiday Inn, Washington, Date: July 25, 1997. Program Nos. 93.306, 93.333, 93.337, 93.393– DC. Time: 1:00 p.m. 93.396, 93.837–93.844, 93.846–93.878, Contact Person: Dr. Jane Hu, Scientific Place: Doubletree Hotel, Rockville, MD. 93.892, 93.893, National Institutes of Health, Review Administrator, 6701 Rockledge Drive, Contact Person: Dr. Michael Micklin, HHS) Room 5168, Bethesda, Maryland 20892, (301) Scientific Review Administrator, 6701 435–1245. Rockledge Drive, Room 5198, Bethesda, Date: June 5, 1997. Name of SEP: Biological and Physiological Maryland 20892, (301) 435–1258. LaVerne Y. Stringfield, Sciences. Name of SEP: Chemistry and Related Committee Management Officer, NIH. Date: July 7, 1997. Sciences. [FR Doc. 97–15296 Filed 6–10–97; 8:45 am] Time: 11:30 a.m. Date: July 30–31, 1997. BILLING CODE 4140±01±M Place: NIH, Rockledge 2, Room 4132, Time: 8:30 p.m. Telephone Conference. Place: Hyatt Regency, Bethesda, MD. Contact Person: Dr. Syed Quadri, Scientific Contact Person: Dr. Marjam Behar, DEPARTMENT OF HEALTH AND Review Administrator, 6701 Rockledge Drive, Scientific Review Administrator, 6701 Room 4132, Bethesda, Maryland 20892, (301) Rockledge Drive, Room 5218, Bethesda, HUMAN SERVICES 435–1211. Maryland 20892, (301) 435–1180. National Institutes of Health Name of SEP: Biological and Physiological Name of SEP: Behavioral and Sciences. Neurosciences. National Cancer Institute; Notice of Date: July 7, 1997. Date: August 6, 1997. Closed Meeting Time: 3:00 p.m. Time: 8:30 a.m. Place: NIH, Rockledge 2, Room 4132, Place: Hyatt Regency Hotel, Bethesda, MD. Pursuant to Section 10(d) of the Telephone Conference. Contact Person: Dr. Carl Banner, Scientific Federal Advisory Committee Act, as Contact Person: Dr. Syed Quadri, Scientific Review Administrator, 6701 Rockledge Drive, amended (5 U.S.C. Appendix 2), notice Review Administrator, 6701 Rockledge Drive, Room 5182, Bethesda, Maryland 20892, (301) Room 4132, Bethesda, Maryland 20892, (301) 435–1251. is hereby given of the following National Cancer Institute Special 435–1211. Purpose/Agenda: To review Small Name of SEP: Biological and Physiological Business Innovation Research. Emphasis Panel (SEP) meeting: Sciences. Name of SEP: Biological and Physiological Name of SEP: Record Linkage Studies Date: July 11, 1997. Sciences. Utilizing Resources in Population-Based Time: 8:30 a.m. Date: June 27, 1997. Tumor Registries. Place: Doubletree Hotel, Rockville, MD. Time: 2:00 p.m. Date: June 10, 1997. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31837

Time: 10:00 a.m. males and 400, 800 or 1000 mg/kg to Management, NIEHS, MD E1–02, P.O. Place: Teleconference, Executive Plaza females). Box 12233, Research Triangle Park, NC North, Room 640, 6130 Executive Boulevard, Under the conditions of these 2-year 27709–2233; telephone (919) 541–3419. Bethesda, MD 20892. feed studies, there was clear evidence of Contact Person: Courtney M. Kerwin, Dated: May 28, 1997. carcinogenic activity 1 of PH.D., M.P.H., Scientific Review Kenneth Olden, phenolphthalein in male F344/N rats Administrator, National Cancer Institute, Director, National Toxicology Program. based on markedly increased incidences NIH, Executive Plaza North, Room 640, 6130 [FR Doc. 97–15298 Filed 6–10–97; 8:45 am] Executive Boulevard, MSC 7410, Bethesda, of benign pheochromocytomas of the MD 20892–7410, Telephone: 301/496–7421. adrenal medulla and of renal tubule BILLING CODE 4140±01±M Purpose/Agenda: To evaluate and review adenomas and adenomas or carcinomas grant applications. (combined). There was some evidence The meeting will be closed in accordance of carcinogenic activity of DEPARTMENT OF HOUSING AND with the provisions set forth in secs. phenolphthalein in female F344/N rats URBAN DEVELOPMENT 552b(c)(4) and 552b(c)(6), Title 5 U.S.C. based on the increased incidences of Applications and the discussions could [Docket No. FR±4152±N±02] reveal confidential trade secrets or benign pheochromocytomas of the commercial property such as patentable adrenal medulla in the 12,000 ppm Announcement of Funding Award FY material and personal information group and of benign or malignant 1996; Cooperative Agreement Between concerning individuals associated with the pheochromocytomas (combined) in the the Department of Housing and Urban applications, the disclosure of which would 12,000 and 25,000 ppm groups. There Development (HUD) and the Milton S. constitute a clearly unwarranted invasion of was clear evidence of carinogenic Eisenhower Foundation (MEF) personal privacy. activity of phenolphthalein in male This notice is being published less than 15 AGENCY: Office of the Assistant B6C3F1 mice based on increased Secretary for Public and Indian days prior to the meeting due to the urgent incidences of histiocytic sarcomas and need to meet timing limitations imposed by Housing. of malignant lymphomas of thymic the review and funding cycle. ACTION: Announcement of additional origin. there was clear evidence of (Catalog of Federal Domestic Assistance funding award. Program Numbers: 93.393, Cancer Cause and carcinogenic activity of phenolphthalein Prevention Research; 93.394, Cancer in female B6C3F1 mice based on SUMMARY: According to section Detection and Diagnosis Research; 93.395, increased incidences of histiocytic 102(a)(4)(C) of the Department of Cancer Treatment Research; 93.396, Cancer sarcomas, malignant lymphomas of all Housing and Urban Development Biology Research; 93.397, Cancer Centers types, lymphomas of thymic origin, and Reform Act of 1989, this document Support; 93.398, Cancer Research Manpower, benign sex-cord stromal tumors of the notifies the public of an additional 93.399, Cancer Control.) ovary. funding award for Fiscal Year (FY) 1996 Dated: June 5, 1997. Exposure of rats to phenophthalein in Technical Assistance to the Milton S. LaVerne Y. Stringfield, feed for 2 years resulted in increased Eisenhower Foundation. The purpose of Committee Management Officer, NIH. incidences of focal hyperplasia of the this document is to announce the name [FR Doc. 97–15297 Filed 6–10–97; 8:45 am] adrenal medulla in males and in and address of the existing grantee and BILLING CODE 4140±01±M increased incidences and/or severity of the amount of the additional award. nephropathy of the kidney in males and FOR FURTHER INFORMATION CONTACT: females. Exposure of mice to Malcolm E. Main, Office of Crime DEPARTMENT OF HEALTH AND phenolphthalein in feed for 2 years Prevention and Security, Office HUMAN SERVICES resulted in increased incidences of Community Relations and Involvement, atypical hyperplasia of the thymus in Public and Indian Housing, Department Public Health Service males and females, degeneration of the of Housing and Urban Development, germinal epithelium of the testis in Room 4112, 451 Seventh Street, S.W., National Toxicology Program; males, and ovarian hyperplasia in Availability of Technical Report on Washington, D.C. 20410, telephone females. (202) 708–1197, ext 4232. A Toxicology and Carcinogenesis Exposure of mice to phenolphthalein Studies of Phenolphthalein telecommunications device for hearing in feed for 2 years resulted in decreased or speech impaired persons (TDD) is The HHS’ National Toxicology incidences of hepatocellular neoplasms available at (202) 708–0850. (These are Program announces the availability of and nonneoplastic lesions in males and not toll-free telephone numbers.) the NTP Technical Report on the females. SUPPLEMENTARY INFORMATION: toxicology and carcinogenesis studies of Questions or comments about the phenolphthalein which is used as a Technical Report should be directed to I. Authority Central Data Management at P.O. Box laboratory reagent and acid-base This cooperative agreement is 12233, Research Triangle Park, NC indicator and in over-the-counter authorized under Chapter 2, Subtitle C, 27709–2233. laxative preparations. The results of Title V of the Anti-Drug Abuse Act of these studies were previously released Copies of Toxicology and Carcinogenesis Studies of 1988 (42 U.S.C. 11901 et. seq.), as in draft form prior to a public peer amended by Section 581 of the National review in December, 1995. Phenolphthalein (CAS No. 77–09–8) (TR–465) are available from Central Data Affordable Housing Act of 1990 Toxicology and carcinogenicity (NAHA), approved November 28, 1990, studies were conducted by 1 The NTP uses five categories of evidence of Pub. L. 101–625, and Section 161 of the administrating phenolphthalein to carcinogenic activity observed in each animal Housing and Community Development groups of 50 F344/N rats for 2 years and study: two categories for positive results (‘‘clear Act of 1992 (HCDA 1992) (Pub. L. 102– to B6C3F1 mice at exposures of 0, 3000, evidence’’ and ‘‘some evidence’’), one category for 550, approved October 28, 1992). 6000 or 12,000 ppm in the feed for 2 uncertain findings (‘‘equivocal evidence’’), one category for no observable effect (‘‘no evidence’’), II. FY 1996 Funding for Original Award years (equivalent to average daily doses and one category for studies that cannot be of approximately 300, 600 or 1200 mg evaluated because of major flaws (‘‘inadequate On April 26, 1996, the President phenolphthalein/kg body weight to study’’). signed the Omnibus Consolidated 31838 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Rescissions and Appropriations Act of V. Specific Change to Agreement to correct the application due date in 1996 (Pub. L. 104–134) (FY 1996 The amendment to the agreement the May 23, 1997 NOFA. Appropriations Act). The amount requires the Eisenhower Foundation to FOR FURTHER INFORMATION CONTACT: For available, to remain available until design, develop and deliver a best questions regarding the Public Housing expended. The FY 1996 Appropriations practices guidebook to HUD. The Drug Elimination program contact Act appropriated $290 million for the guidebook will identify best practices Bertha M. Jones, Office of Crime Drug Elimination Program. Of the total among drug-prevention efforts which Prevention and Security (OCPS), Office $290 million appropriated; $10 million operate through community-based of Community Relations and will fund drug elimination technical facilities, such as methods public Involvement (OCRI), Department of assistance, contracts and other housing authorities can use in support Housing and Urban Development, Room assistance training, program of residents, who must transition from 4112, 451 Seventh Street, SW, assessments, and execution for or on welfare to work. This task will parallel Washington, DC 20410; telephone (202) behalf of public housing agencies and and complement the existing scope of 708–1197. resident organizations (including the work. For questions regarding the Native cost of necessary travel for participants American program contact Tracy in such training). The Catalog of Federal Domestic Outlaw, National Office of Native Assistance number for the Drug Elimination III. Funding and Recipient Information Program is 14.854. American Programs (ONAP), Department of Housing and Urban Dated: June 6, 1997. Original award (FY 1996 Development, Suite 3990, 1999 appropriation 86X0197-DSP): Kevin Emanuel Marchman, Broadway, Denver, CO 80202; telephone $1,400,000. Acting Assistant Secretary for Public and (303) 675–1600. New award (FY 1996 appropriation Indian Housing. Hearing and speech-impaired persons 86X0197–DSP): $87,322. [FR Doc. 97–15287 Filed 6–10–97; 8:45 am] may access the telephone numbers via Total award amount: $1,487,322. BILLING CODE 4210±33±P TTY by calling the Federal Information Recipient: Milton S. Eisenhower Relay Service at 1–800–877–8339. (With Foundation, Suite 200, 1660 L. Street, the exception of the ‘‘800’’ number, NW, Washington, DC 20036. DEPARTMENT OF HOUSING AND these are not toll-free numbers.) Recipient contact person: Lynn A. URBAN DEVELOPMENT Curtis, President and CEO. SUPPLEMENTARY INFORMATION: Accordingly, FR Doc. 97–13519, Public Recipients phone number: (202) 429– [Docket No. FR±4208±C±03] 0440, fax (202) 452–0169. and Indian Housing Drug Elimination HUD cooperative agreement number: Public and Indian Housing Drug Technical Assistance Program Notice of DC00TTC0000096. Elimination Technical Assistance Funding Availability—FY 1997, published in the Federal Register on IV. General Objectives Program Notice of Funding AvailabilityÐFY 1997; Correction May 23, 1997 (62 FR 28576) is corrected On September 12, 1996, the United as follows: States Department of Housing and AGENCY: Office of the Assistant 1. On page 28576, in column 1, the Urban Development and the Milton S. Secretary for Public and Indian ‘‘DEADLINE DATES’’ section is Eisenhower Foundation entered into a Housing, HUD. corrected to read as follows: cooperative agreement to provide ACTION: Notice of Funding Availability DEADLINE DATES: This NOFA is effective technical assistance to housing (NOFA); correction. upon publication. Technical assistance authorities to implement and evaluate applications and consultant application law enforcement mini-stations and SUMMARY: On May 23, 1997 (62 FR kits may be immediately submitted to inner-city youth safe havens in the 28576), HUD published a notice the address specified in the application following public housing authorities: announcing the availability of $2.8 kit. Applications may be submitted District of Columbia, Columbia, SC, million under the Fiscal Year 1997 anytime, up to close of business on July Little Rock, AR, Memphis, TN, San Public and Indian Housing Drug 15, 1997. Technical assistance Juan, Puerto Rico, and Baltimore, MD. Elimination Technical Assistance applications will be reviewed on a In addition, the Foundation and HUD Program. continuing basis until July 15, 1997, or will identify best practices among drug- The funds reimburse consultants who until funds available under this NOFA prevention efforts which operate provide expert advice and work with are expended. There is no application through community-based facilities, as housing authorities or resident councils deadline for consultants. methods public housing authorities can to assist them in gaining skills and 2. On page 28581, in columns 1 and use in support of residents, who must training to eliminate drug abuse and 2, paragraph (b) of Section II. transition from welfare to work. related problems from public housing Application Process, is corrected to read The KOBAN police and community communities. In the body of the May 23, as follows: partnership program is a unique 1997 Notice of Funding Availability innovative program to improve (NOFA) is information concerning the II. Application Process relationships between local law following: (1) The purpose of the NOFA; * * * * * enforcement agencies and the inner-city (2) eligible applicants and activities; (3) (b) Application Submission. This neighborhoods they patrol, to reduce available funding amounts; (4) selection NOFA is effective upon publication. crime and drug abuse in the criteria; (5) application processing; (6) Short-term (90 days for completion) neighborhoods and prevent inner-city consultant eligibility; and (7) consultant technical assistance applications and youth from engaging in high-risk application processing. consultant application kits may be behavior. The program builds on The May 23, 1997 NOFA incorrectly immediately submitted to the address policing strategies that have operated provided for an application deadline specified in the application kit. The successfully in Japan and proven date of June 30, 1997. The application application submission deadline for the successful in other variations in due date should have been July 15, short-term technical assistance grants American cities. 1997. The purpose of this document is available under this NOFA is July 15, Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31839

1997. Technical assistance applications DEPARTMENT OF THE INTERIOR etc., of the Proposed Plan will be reviewed on a continuing first- Amendment. come, first-served basis, until funds Bureau of Land Management —A copy of all documents addressing under this NOFA are no longer available the issue(s) submitted by the protestor or until July 15, 1997. Applicants are [UT±020±07±1] during the planning process or a encouraged to submit their applications reference to the date when the as early as possible in the fiscal year. Salt Lake District, Box Elder Resource protester discussed the issue(s) for the Management Plan; Utah * * * * * record. Dated: June 6, 1997. AGENCY: Bureau of Land Management, —A concise statement as to why the Kevin Emanuel Marchman, Interior. protester believes the BLM State Director is incorrect. Acting Assistant Secretary, Public and Indian ACTION: Notice of availability. Housing. Dated: June 5, 1997. [FR Doc. 97–15302 Filed 6–10–97; 8:45 am] SUMMARY: The Bureau of Land G. William Lamb, BILLING CODE 4210±33±P Management, Salt Lake District, has State Director, Utah. completed an Environmental Analysis/ [FR Doc. 97–15232 Filed 6–10–97; 8:45 am] Finding of No Significant Impact of the BILLING CODE 4310±DQ±P Proposed Plan Amendment to the Box DEPARTMENT OF THE INTERIOR Elder Resource Management Plan (RMP). The Proposed Amendment, DEPARTMENT OF THE INTERIOR Office of the Secretary implementation of alternative #2, addresses management of 47,088 acres Bureau of Land Management Exxon Valdez Oil Spill Public Advisory of land acquired since the RMP was Group completed in 1986, provides [AZ±020±97±2200] management goals and objectives for Notice of Intent To Prepare An AGENCY: Department of the Interior, future acquisitions, and changes Office of the Secretary. Environmental Impact Statement For A management on 16,621 acres of selected Proposed Land Exchange Near ACTION: Notice of meeting. lands which were previously analyzed Kingman, Arizona, and Notice of in the RMP. Scoping Meetings SUMMARY: The Department of the DATES: The protest period for this Interior, Office of the Secretary is Proposed Plan Amendment will AGENCY: Bureau of Land Management, announcing a public meeting of the commence with the date of publication Interior. Exxon Valdez Oil Spill Public Advisory of this notice and last for 30 days. ACTION: Notice of intent, notice of Group. Protests must be received on or before scoping period, and notice of scoping July 11, 1997. meetings. DATES: July 16, 1997, at 9:00 a.m. ADDRESSES: Protests must be addressed ADDRESSES: Fourth floor conference to the Director (WO–210), Bureau of SUMMARY: The Bureau of Land room, 645 ‘‘G’’ Street, Anchorage, Land Management, Attn: Brenda Management is considering a proposal Alaska. Williams, 1849 C Street NW., to exchange land pursuant to Section Washington, DC 20240, within 30 days 206 of the Federal Land Policy and FOR FURTHER INFORMATION CONTACT: Management Act of 1976 (43 U.S.C. Douglas Mutter, Department of the after the date of publication of this Notice of Availability. 1716), as amended. An environmental Interior, Office of Environmental Policy impact statement will be prepared in and Compliance, 1689 ‘‘C’’ Street, Suite FOR FURTHER INFORMATION CONTACT: accordance with Section 102(2)(C) of the 119, Anchorage, Alaska, (907) 271– Alice Stephenson, Environmental National Environmental Policy Act of 5011. Specialist/Planner, Salt Lake District 1969 to analyze the impacts associated Office, 2370 South 2300 West, Salt Lake with the proposed exchange. The SUPPLEMENTARY INFORMATION: The City, Utah, 84119, (801) 977–4317. Public Advisory Group was created by exchange proponent is Santa Fe Copies of the Environmental Railroad Company being represented by Paragraph V.A.4 of the Memorandum of Assessment and Proposed Plan Agreement and Consent Decree entered Ben Brooks and Associates. It is Amendment are available for review at proposed to exchange approximately into by the United States of America the Salt Lake District Office. and the State of Alaska on August 27, 70,000 acres of public land for SUPPLEMENTARY INFORMATION: This 1991, and approved by the United States approximately 70,000 acres of private action is announced pursuant to section land. The final acreage may change as District Court for the District of Alaska 202(a) of the Federal Land Policy and in settlement of United States of the exchange will be on an equal value Management Act of 1976 and 43 CFR basis. There are 70,000 acres of offered America v. State of Alaska, Civil Action part 1610. The Proposed Amendment is No. A91–081 CV. The agenda will lands (lands currently in private subject to protest from any party who ownership) and 60,000 acres of selected include a review of current restoration has participated in the planning activities, recommendations on projects lands (lands currently in public process. Protests must be specific and ownership) 20 to 40 miles southwest of for the fiscal year 1998 restoration work contain the following information: plan, and discussion of the restoration Kingman, Arizona. The remaining reserve fund. —The name, mailing address, phone 10,000 acres of selected lands are number, and interest of the person located approximately 15 miles Dated: June 4, 1997. filing the protest. northeast of Kingman, Arizona. The Willie R. Taylor, —A statement of the issue(s) being exchange includes portions of Dutch Director, Office of Environmental Policy and protested. Flat and the Hualapai and McCracken Compliance. —A statement of the part(s) of the mountains. The BLM would acquire [FR Doc. 97–15172 Filed 6–10–97; 8:45 am] proposed amendment being protested lands mostly within the Hualapai and BILLING CODE 4310±RG±P and citing pages, paragraphs, maps McCracken mountains or foothills while 31840 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Santa Fe would acquire land in the Other Relevant Information University. No known individuals were Dutch Flat and Hualapai Valley areas. The EIS will be prepared by an identified. No associated funerary This notice is intended to invite the interdisciplinary team of resource objects are present. public to participate in identification of specialists. The team will include a In 1921, human remains representing issues and development of alternatives project manager, a wildlife specialist, a a minimum of two individuals were removed from Othello Street on Lake for the proposal. realty specialist, a botanist, a soil Washington in Seattle, King County, DATES: Public scoping meetings to scientist, a range management specialist, WA during city street construction. identify public concerns will be held on a visual resources specialist, a biological These human remains were donated to the following dates: resources specialist, and a cultural the Burke Museum that same year by resource specialist. Monday, June 30, in Wikieup, Arizona, the Seattle Coroner’s Office. In the at the Owens School, 14109 East Complete records of all phases of the EIS process will be available for public 1970s, these human remains were Chicken Springs Road, Wikieup, brought to the Department of review at the Kingman Field Office, Arizona 85360. Anthropology, Central Washington 2475 Beverly Avenue, Kingman, Tuesday, July 1, in Kingman, Arizona, at University. No known individuals were Arizona 86401. the BLM office located at 2475 identified. No associated funerary Beverly Avenue, Kingman, Arizona Denise P. Meridith, objects are present. 86401. State Director, Arizona. Around 1925, human remains Wednesday, July 2, in Yucca, Arizona, [FR Doc. 97–15231 Filed 6–10–97; 8:45 am] representing one individual were at the Brooks Realty Office, 12470 BILLING CODE 4310±32±M donated to the Burke Museum by Prof. South Yucca Frontage Road, Yucca, Trevor Kincaid. Accession information Arizona 86348. indicates these human remains were Comments relating to the DEPARTMENT OF THE INTERIOR recovered from an unknown location in identification of issues and alternatives the vicinity of Seattle, WA. In the 1970s, will be accepted for up to 45 days National Park Service these human remains were brought to following the publication of this notice. Notice of Inventory Completion for the Department of Anthropology, ADDRESSES: Send comments to: Bureau Native American Human Remains from Central Washington University. No known individuals were identified. No of Land Management, Kingman Field Washington State in the Possession of associated funerary objects are present. Office, 2475 Beverly Avenue, Kingman, the Department of Anthropology, Arizona 86401. In 1943, human remains representing Central Washington University, one individual were removed by Mr. FOR FURTHER INFORMATION CONTACT: Ellensburg, WA Harold Hammer during a house Don McClure, Project Manager, (520) AGENCY: National Park Service. construction in Seattle, King County, 757–3161. ACTION: Notice. WA, and donated to the Burke Museum SUPPLEMENTARY INFORMATION: The by the Seattle Coroner’s Office. In the proposed exchange area is located in Notice is hereby given in accordance 1970s, these human remains were northwestern Arizona. The land with provisions of the Native American brought to the Department of exchange will block federal ownership Graves Protection and Repatriation Act Anthropology, Central Washington to facilitate management of natural (NAGPRA), 25 U.S.C. 3003 (d), of the University. No known individuals were resources in the Hualapai and completion of an inventory of human identified. No associated funerary McCracken mountains and associated remains from Washington State in the objects are present. foothills. This exchange will help possession of the Department of At an unknown date, human remains alleviate problems associated with Anthropology, Central Washington representing one individual were private land sales and development in University, Ellensburg, WA. removed from an unknown location in the checker boarded lands in Dutch Flat A detailed assessment of the human the vicinity of Seattle and donated to and the Hualapai and McCracken remains was made by Department of the Burke Museum by Rev. Lester mountains. Consolidation of lands into Anthropology professional staff in Pontius. In the 1970s, these human public ownership in the Hualapai consultation with representatives of the remains were brought to the Department Mountains area was begun in the early Puyallup Indian Tribe of Indians and of Anthropology, Central Washington 1980s. To date, BLM has exchanged the Muckleshoot Indian Tribe. University. No known individuals were lands with the State of Arizona and In 1896, human remains representing identified. No associated funerary private entities to consolidate public one individual were removed from objects are present. ownership throughout the Hualapai ‘‘under a fir tree’’ by M. Choir near Lake In 1959, human remains representing Mountains. This proposed exchange Washington, Seattle, King County, WA, a minimum of two individuals were will consolidate the last large checker and donated to the Burke Museum. In removed from the Dash Point site (45– boarded area within the Hualapai the 1970s, these human remains were PI–41), Pierce County, WA, by Mr. M.V. Mountains into public ownership. brought to the Department of Petersen, Butler, and Garner and Anthropology, Central Washington donated to the Burke Museum. In the Anticipated Issues University. No known individuals were 1970s, these human remains were Management concerns that will be identified. No associated funerary brought to the Department of addressed include, but are not limited objects are present. Anthropology, Central Washington to, wildlife management, impacts on In 1913 or 1914, human remains University. No known individuals were visual quality, unique vegetation, Native representing one individual was identified. No associated funerary American religious concerns, and access recovered by Mr. Williams during a re- objects are present. concerns. Baseline studies will be grade of Jackson Street in Seattle, King In 1966, human remains representing conducted to gather information about County, WA, and donated to the Burke one individual were recovered from the cultural resources, hazardous materials, Museum. In the 1970s, these human Beachcrest Addition, Thurston County, minerals, water rights, and the general remains were brought to the Department WA by the Thurston County Sheriff’s habitat. of Anthropology, Central Washington Office and donated to the Burke Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31841

Museum. In the 1970s, these human DEPARTMENT OF THE INTERIOR Representatives of any other Indian tribe remains were brought to the Department that believes itself to be culturally of Anthropology, Central Washington National Park Service affiliated with these human remains University. No known individuals were should contact Steven Hackenberger, Notice of Inventory Completion for identified. No associated funerary Chair, Department of Anthropology, Native American Human Remains from objects are present. Central Washington University, 400 E. Prince William Sound, AK in the 8th Ave., Ellensburg, WA 98926–7544; Morphological evidence indicates Possession of the Department of telephone: (509) 963–3201, fax (509) these individuals are Native American Anthropology, Central Washington 963–3215 , before July 11, 1997. based on dental patterns and cranial University, Ellensburg, WA Repatriation of the human remains to formation. Anthropological evidence, AGENCY: National Park Service the Chugach Alaska Corporation may including continuities of technology begin after that date if no additional ACTION: Notice and material culture, indicates claimants come forward. continuous occupation by Salishan Notice is hereby given in accordance Dated: June 3, 1997. peoples over the last 2,000 years in the with provisions of the Native American Puget Sound region of Washington State Graves Protection and Repatriation Act Francis P. McManamon, which includes the sites and vicinities (NAGPRA), 25 U.S.C. 3003 (d), of the Departmental Consulting Archeologist, listed above. Consultation evidence, completion of an inventory of human Manager, Archeology and Ethnography including oral history, presented by remains from Prince William Sound, Program. representatives of the Puyallup Indian AK, in the possession of the Department [FR Doc. 97–15228 Filed; 6–10–97 8:45 am] Tribe of Indians and the Muckleshoot of Anthropology, Central Washington BILLING CODE 4310±70±F Indian Tribe further support this University, Ellensburg, WA. evidence of occupation. A detailed assessment of the human Based on the above mentioned remains was made by Department of DEPARTMENT OF THE INTERIOR information, officials of the Department Anthropology professional staff in National Park Service of Anthropology, Central Washington consultation with representatives of the University have determined that, Chugach Alaska Corporation. In 1902, human remains were Notice of Inventory Completion for pursuant to 43 CFR 10.2 (d)(1), the Native American Human Remains, human remains listed above represent recovered from Billy’s Hole cave on an island in Prince William Sound, AK, by Associated Funerary Objects, and an the physical remains of a minimum of Edmond S. Meany. During the 1970s, Unassociated Funerary Object from ten individuals of Native American human remains representing a Hartstine Island, Mason County, WA in ancestry. Officials of the Department of minimum of two individuals from this the Possession of the Burke Museum, Anthropology, Central Washington site were transferred to the Department University of Washington, Seattle, WA University have determined that, of Anthropology at Central Washington AGENCY: National Park Service pursuant to 25 U.S.C. 3001 (2), there is University. No known individuals were ACTION: Notice a relationship of shared group identity identified. No associated funerary which can be reasonably traced between objects are present. Notice is hereby given in accordance these Native American human remains Archeological and ethnographic with provisions of the Native American and Puyallup Indian Tribe of Indians evidence from the islands of Prince Graves Protection and Repatriation Act and the Muckleshoot Indian Tribe. William Sound, including manner of (NAGPRA), 25 U.S.C. 3003 (d), of the This notice has been sent to officials internment, continuity of technology, completion of an inventory of human of the Puyallup Indian Tribe of Indians and cultural items indicate continuous remains, associated funerary objects, and the Muckleshoot Indian Tribe. occupation by the same communities and an unassociated funerary object Representatives of any other Indian tribe from the precontact period to the from Hartstine Island, Mason County, that believes itself to be culturally present. Oral tradition presented by the WA, in the possession of the Burke affiliated with these human remains representatives of the Chugach Alaska Museum, University of Washington, should contact Steven Hackenberger, Corporation also supports Chugach Seattle, WA. occupation of this area throughout this Chair, Department of Anthropology, A detailed assessment of the human period. remains was made by Burke Museum Central Washington University, 400 E. Based on the above mentioned professional staff in consultation with 8th Ave., Ellensburg, WA 98926–7544; information, officials of the Department representatives of the Squaxin Island telephone: (509) 963–3201, fax (509) of Anthropology, Central Washington Tribe. 963–3215, before July 11, 1997. University have determined that, In 1923, human remains representing Repatriation of the human remains to pursuant to 43 CFR 10.2 (d)(1), the two individuals were removed from the Puyallup Tribe of Indians may begin human remains listed above represent graves on Hartstine Island, Mason after that date if no additional claimants the physical remains of a minimum of County, WA by Mr. A.G. Colley and come forward. two individuals of Native American donated to the Burke Museum. No Dated: June 3, 1997. ancestry. Officials of the Department of known individuals were identified. The Francis P. McManamon, Anthropology, Central Washington six associated funerary objects include Departmental Consulting Archeologist, University have also determined that, five wood fragments and one copper- pursuant to 25 U.S.C. 3001 (2), there is stained stone. Manager, Archeology and Ethnography a relationship of shared group identity Also in 1923, cultural items Program. which can be reasonably traced between consisting of a whalebone club and soil [FR Doc. 97–15224 Filed; 6–10–97 8:45 am] these Native American human remains from a grave on Hartstine were removed BILLING CODE 4310±70±F and the Chugach Alaska Corporation. by Mr. A.G. Colley and donated to the This notice has been sent to officials Burke Museum. No human remains of the Chugach Alaska Corporation. from this grave are present. 31842 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Hartstine Island has been identified as The National Park Service is not supported by the Menominee Indian having been occupied by the Squaxin responsible for the determinations Tribe of Wisconsin and members of Mr. Island Tribe from pre-contact times into within this notice. Annamitta’s extended family. Further, the historic period based on historical Dated: June 2, 1997. Mr. Richard Annamitta, Sr. has documents, ethnographic and Francis P. McManamon, presented proof of direct lineal descent anthropological evidence, and Departmental Consulting Archeologist, from the last rightful owner, Animita/ continuity of material culture. Oral Manager, Archeology and Ethnography Frank Annamitta, as his grandson and is history presented by representatives of Program. the current rightful inheritor of these the Squaxin Island Tribe further [FR Doc. 97–15225 Filed; 6–10–97 8:45 am] cultural items. supports this conclusion. Based on the above-mentioned BILLING CODE 4310±70±F information, officials of the Milwaukee Based on the above mentioned Public Museum have determined that, information, officials of the Burke DEPARTMENT OF THE INTERIOR pursuant to 25 U.S.C. 3001 (3)(C), these Museum have determined that, five cultural items are specific pursuant to 43 CFR 10.2 (d)(1), the National Park Service ceremonial objects needed by traditional human remains listed above represent Native American religious leaders for the physical remains of two individuals Notice of Intent to Repatriate Cultural the practice of traditional Native of Native American ancestry. Officials of Items in the Possession of the American religions by their present-day the Burke Museum have also Milwaukee Public Museum, Milwaukee, adherents. Officials of the Milwaukee determined that, pursuant to 25 U.S.C. WI Public Museum have also determined 3001 (3)(A), the six objects listed above that, pursuant to 25 U.S.C. 3005 AGENCY: National Park Service are reasonably believed to have been (a)(5)(A), Mr. Richard Annamitta, Sr. is ACTION: Notice placed with or near individual human the direct lineal descendant of the remains at the time of death or later as Notice is hereby given under the individual who owned these sacred part of the death rite or ceremony. Native American Graves Protection and objects. Officials of the Burke Museum have Repatriation Act, 25 U.S.C. 3005 (a)(2), This notice has been sent to Mr. further determined that, pursuant to 25 of the intent to repatriate cultural items Richard Annamitta, Sr. and officials of U.S.C. 3001 (3)(B), these two cultural in the possession of the Milwaukee the Menominee Indian Tribe of Wisconsin. Any other lineal descendent items are reasonably believed to have Public Museum, Milwaukee, WI, which who believes him or herself to be been placed with or near individual meet the definition of ‘‘sacred objects’’ culturally affiliated with these objects human remains at the time of death or under Section 2 of the Act. The cultural items include a bear- should contact Ann McMullen, Ph.D., later as part of the death rite or Curator of North American Ethnology, ceremony and are believed, by a cubskin medicine bag, two pinesnake skins, and two birchbark cases for the Milwaukee Public Museum, 800 West preponderance of the evidence, to have Wells St., Milwaukee, WI 53233; been removed from a specific burial site snake skins. In 1910, Dr. Samuel A. Barrett, telephone: (414) 278–2786, fax (414) of an Native American individual. 278–6100 before July 11, 1997. Lastly, officials of the Burke Museum Curator of Anthropology at the Milwaukee Public Museum purchased Repatriation of these objects to Mr. have determined that, pursuant to 25 these cultural items as a set from Richard Annamitta, Sr. may begin after U.S.C. 3001 (2), there is a relationship Spekapuwikweu (also known as that date if no additional claimants of shared group identity which can be Ashkapokok Annamitta Neconish), come forward. reasonably traced between these Native daughter of Animita (also known as American human remains, associated Frank Annamitta) on the Menominee Dated: June 3, 1997. funerary objects, and unassociated Reservation, Keshena, WI. Museum Francis P. McManamon, funerary objects and the Squaxin Island catalogue information states these items Departmental Consulting Archeologist, Tribe. were said to be associated with the Manager, Archeology and Ethnography This notice has been sent to officials Menominee Medicine Lodge/Mitawin, Program. of the Squaxin Island Tribe. although other documentation by Dr. [FR Doc.97–15227 Filed; 6–10–97 8:45 am] Representatives of any other Indian tribe Barrett indicates they were exclusively BILLING CODE 4310±70±F that believes itself to be culturally used for ‘‘sorcery.’’ affiliated with these human remains and Authorized representatives of the associated funerary objects should Menominee Indian Tribe of Wisconsin DEPARTMENT OF THE INTERIOR acting on behalf of Mr. Richard contact Dr. James Nason, Chair of the National Park Service Repatriation Committee, Burke Annamitta, Sr. have identified these five cultural items as specific ceremonial Museum, Box 353010, University of Notice of Inventory Completion for objects needed by Mr. Richard Washington, Seattle, WA 98195; Native American Human Remains from Annamitta, Sr. for the practice of on- telephone: (206) 543–9680, before July Washington State in the Possession of going and traditional ceremonial and the Department of Anthropology, 11, 1997. Repatriation of the human religious traditions, specifically the Central Washington University, remains, associated funerary objects, Mitawin or Grand Medicine Lodge. Ellensburg, WA and unassociated funerary objects to the Information provided by Mr. Richard Squaxin Island Tribe may begin after Annamitta, Sr. and other authorized AGENCY: National Park Service that date if no additional claimants Menominee tribal representatives ACTION: Notice come forward. indicates these items are rightfully inherited only by male descendants of Notice is hereby given in accordance the owner, and further that such items with provisions of the Native American could not have been rightfully alienated Graves Protection and Repatriation Act by any other person. This claim is also (NAGPRA), 25 U.S.C. 3003 (d), of the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31843 completion of an inventory of human identified. No associated funerary This notice has been sent to officials remains from Washington State in the objects are present. of the Puyallup Indian Tribe of Indians possession of the Department of At an unknown date, human remains and the Muckleshoot Indian Tribe. Anthropology, Central Washington representing one individual were Representatives of any other Indian tribe University, Ellensburg, WA. removed from an unknown location in that believes itself to be culturally A detailed assessment of the human the vicinity of Seattle and donated to affiliated with these human remains remains was made by Department of the Burke Museum by Rev. Lester should contact Steven Hackenberger, Anthropology professional staff in Pontius. In the 1970s, these human Chair, Department of Anthropology, consultation with representatives of the remains were brought to the Department Central Washington University, 400 E. Puyallup Indian Tribe of Indians and of Anthropology, Central Washington 8th Ave., Ellensburg, WA 98926–7544; the Muckleshoot Indian Tribe. University. No known individuals were telephone: (509) 963–3201, fax (509) In 1896, human remains representing identified. No associated funerary 963–3215, before July 11, 1997. one individual were removed from objects are present. Repatriation of the human remains to ‘‘under a fir tree’’ by M. Choir near Lake In 1959, human remains representing the Puyallup Tribe of Indians may begin Washington, Seattle, King County, WA, a minimum of two individuals were after that date if no additional claimants and donated to the Burke Museum. In removed from the Dash Point site (45– come forward. the 1970s, these human remains were PI–41), Pierce County, WA, by Mr. M.V. Dated: June 3, 1997. brought to the Department of Petersen, Butler, and Garner and Francis P. McManamon, Anthropology, Central Washington donated to the Burke Museum. In the Departmental Consulting Archeologist, University. No known individuals were 1970s, these human remains were Manager, Archeology and Ethnography identified. No associated funerary brought to the Department of Program. objects are present. Anthropology, Central Washington [FR Doc. 97–15226 Filed 6–10–97; 8:45 am] In 1913 or 1914, human remains University. No known individuals were representing one individual was identified. No associated funerary BILLING CODE 4310±70±F recovered by Mr. Williams during a re- objects are present. grade of Jackson Street in Seattle, King In 1966, human remains representing County, WA, and donated to the Burke one individual were recovered from the DEPARTMENT OF JUSTICE Museum. In the 1970s, these human Beachcrest Addition, Thurston County, Notice of Lodging of Consent Decree remains were brought to the Department WA by the Thurston County Sheriff’s Pursuant to the Comprehensive of Anthropology, Central Washington Office and donated to the Burke Environmental Response, University. No known individuals were Museum. In the 1970s, these human Compensation, and Liability Act of identified. No associated funerary remains were brought to the Department 1980 objects are present. of Anthropology, Central Washington In 1921, human remains representing University. No known individuals were Notice is hereby given that on April a minimum of two individuals were identified. No associated funerary 11, 1997, a proposed Consent Decree in removed from Othello Street on Lake objects are present. United States v. Gold Field Mining Washington in Seattle, King County, Morphological evidence indicates Corp., Civil Action No. 96–2146–JWL WA during city street construction. these individuals are Native American (D. Kan.) was lodged with the United These human remains were donated to based on dental patterns and cranial States District Court for the District of the Burke Museum that same year by formation. Anthropological evidence, Kansas. The proposed Consent Decree the Seattle Coroner’s Office. In the including continuities of technology resolves the United States’ claims in this 1970s, these human remains were and material culture, indicates action against Gold Fields Mining brought to the Department of continuous occupation by Salishan Corporation (‘‘Gold Fields’’) and Viacom Anthropology, Central Washington peoples over the last 2,000 years in the International Incorporated (‘‘Viacom’’) University. No known individuals were Puget Sound region of Washington State regarding their liability under Section identified. No associated funerary which includes the sites and vicinities 107(a) of CERCLA, 42 U.S.C. § 9607(a), objects are present. listed above. Consultation evidence, for response costs incurred and to be Around 1925, human remains including oral history, presented by incurred by the United States in representing one individual were representatives of the Puyallup Indian connection with the Cherokee County donated to the Burke Museum by Prof. Tribe of Indians and the Muckleshoot Superfund Site—Galena Subsite in Trevor Kincaid. Accession information Indian Tribe further support this Cherokee County, Kansas (‘‘Subsite’’). indicates these human remains were evidence of occupation. The proposed Consent Decree recovered from an unknown location in Based on the above mentioned requires, inter alia, that Gold Fields and the vicinity of Seattle, WA. In the 1970s, information, officials of the Department Viacom will pay to the EPA Hazardous these human remains were brought to of Anthropology, Central Washington Substance Superfund $2,100,000 and the Department of Anthropology, University have determined that, $492,000, respectively. The proposed Central Washington University. No pursuant to 43 CFR 10.2 (d)(1), the Consent Decree grants to the defendants known individuals were identified. No human remains listed above represent a covenant not to sue and the associated funerary objects are present. the physical remains of a minimum of contribution protection afforded by In 1943, human remains representing ten individuals of Native American Section 113(f)(2) of CERCLA, 42 U.S.C. one individual were removed by Mr. ancestry. Officials of the Department of § 9613(f)(2), for matters addressed in the Harold Hammer during a house Anthropology, Central Washington proposed Consent Decree. The proposed construction in Seattle, King County, University have determined that, Consent Decree contains reopeners WA, and donated to the Burke Museum pursuant to 25 U.S.C. 3001 (2), there is which allow the United States, in by the Seattle Coroner’s Office. In the a relationship of shared group identity certain situations, to institute additional 1970s, these human remains were which can be reasonably traced between proceedings to require the defendants to brought to the Department of these Native American human remains perform response actions or reimburse Anthropology, Central Washington and Puyallup Indian Tribe of Indians the United States for additional costs of University. No known individuals were and the Muckleshoot Indian Tribe. response. 31844 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

The Department of Justice will receive DEPARTMENT OF LABOR electronic, mechanical, or other comments relating to the proposed technological collections techniques or Consent Decree for a period of thirty Office of the Secretary other forms of information, e.g., (30) days from the date of this permitting electronic submissions of publication. Comments should be Proposed Information Collection responses. Request Submitted for Public addressed to the Assistant Attorney ADDRESSEE: Comments and questions Comment and Recommendations; General of the Environment and Natural regarding the collection of information Attestations by Employers Using Alien Resources Division, Department of on Form ETA 9033–A, Attestation by Crewmembers for Longshore Activities Justice, Washington, D.C. 20530, and Employers Using Alien Crewmembers in U.S. Ports should refer to United States v. Gold for Longshore Activities in the State of Field Mining Corp., DOJ No. 90–11–2– AGENCY: Employment and Training Alaska, should be directed to James 1081. Administration, Labor. Norris, Chief, Division of Foreign Labor The proposed Consent Decree may be ACTION: Notice. Certifications, U.S. Department of Labor, examined at the Office of the United 200 Constitution Avenue, NW., Room States Attorney for the District of SUMMARY: The Department of Labor, as N–4456, Washington, D.C. 20210 ((202) Kansas, 500 State Avenue, Suite 360, part of its continuing effort to reduce 219–5263 (this is not a toll-free Kansas City, Kansas 66101; and at the paperwork and respondent burden number)). conducts a preclearance consultation Consent Decree library, 1120 G Street, SUPPLEMENTARY INFORMATION: N.W. 4th Floor, Washington, D.C. program to provide the general public 20005. A copy of the proposed Consent and Federal agencies with an I. Background Decree may be obtained in person or by opportunity to comment on proposed The information collection is required mail from the Consent Decree Library. and/or continuing collections of due to amendments to section 258 of the When requesting a copy, please enclose information in accordance with the Immigration and Nationality Act (8 a check in the amount of $7.25 (25 cents Paperwork Reduction Act of 1995 U.S.C. 1101 et seq.) (NA). The per page reproduction cost) payable to (PRA95), 44 U.S.C. 3506(c)(2)(A). This amendments created an Alaska the Consent Decree Library. program helps to ensure that requested exception to the general prohibition on Joel Gross, data can be provided in the desired the performance of longshore work by format, reporting burden (time and Chief, Environmental Enforcement Section, alien crewmembers in U.S. ports. Under Environment and Natural Resources Division. financial resources) is minimized, the Alaska exception, before any collection instruments are clearly [FR Doc. 97–15230 Filed 6–10–97; 8:45 am] employer may use alien crewmembers understood, and the impact of collection BILLING CODE 4410±15±M to perform longshore work in the State requirements on respondents can be of Alaska, it must submit an attestation properly assessed. Currently, the to ETA containing the elements Employment and Training DEPARTMENT OF JUSTICE prescribed by the INA. Administration is soliciting comments The INA further requires that the National Institute of Corrections concerning the proposed extension to Department make available for public the collection of information on the examination in Washington, DC, a list of Advisory Board Meeting Attestation by Employers Using Alien employers which have filed attestations, Crewmembers to Perform Longshore and for each such employer, a copy of TIME AND DATA: 8:00 a.m., Tuesday, July Work at Locations in the State of Alaska. the employer’s attestation and 1, 1997. A copy of the proposed information accompanying documentation it has collection request (ICR) can be obtained received. PLACE: Sheraton City Centre, 1143 New by contacting the office listed below in Hampshire Avenue, NW., Washington, the addressee section of this notice. II. Current Actions DC 20037. DATES: Written comments must be In order for the Department to meet its STATUS: Open. submitted to the office listed in the statutory responsibilities under the INA addressee section below on or before there is a need for an extension of an MATTERS TO BE CONSIDERED: Update on August 11, 1997. existing collection of information the Corrections Program Office Violent The Department of Labor is pertaining to employers’ seeking to use Offender and Truth In Sentencing Grant particularly interested in comments alien crewmembers to perform Program, update on the NIC Executive which: longshore activities at locations in the Excellence Program, a history of NIC • Evaluate whether the proposed State of Alaska. Work Plan/Feasibility Study, victims information collection is necessary for Type of Review: Extension of a issues discussion points, a status report the proper performance of the functions currently approved collection without on the Mental Health Survey in Jails, an of the agency, including whether the change. update on NIC’s Strategic Planning, the information will have practical utility; Agency: Employment and Training NIC Program Plan for FY 1998, election • Evaluate the accuracy of the Administration, Labor. of officers and liaisons, and a quarterly agency’s estimate of the burden of the Title: Attestations by Employers Using report from the Office of Justice proposed collection of information Alien Crewmembers for Longshore Programs. including the validity of the Activities at Locations in the State of FOR FURTHER INFORMATION CONTACT: methodology and assumptions used; Alaska. • Enhance the quality, utility, and Larry Solomon, Deputy Director, (202) OMB Number: 2005–AB03. clarity of the information to be 307–3106, ext. 155. Affected Public: Businesses or other collected; and for-profit. Morris L. Thigpen, • Minimize the burden of the Form: Form ETA 9033–A. Director. collection of information on those who Total Respondents: 350. [FR Doc. 97–15295 Filed 6–10–97; 8:45 am] are to respond, including through the Frequency of Response: Annually. BILLING CODE 4410±36±M use of appropriate automated, Total Responses: 350. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31845

Average Burden Hours per Response: • Evaluate the accuracy of the Cite/Reference/Form/etc: Summer 3. agency’s estimate of the burden of the Reporting (Plan/Mid/Final) and Estimate Total Annual Burden Hours: proposed collection of information, Regional Monitoring. 1,050. including the validity of the Total Respondents: 56. Comments submitted in response to methodology and assumptions used; Frequency: Plan, Mid-Summer and this notice will be summarized and/or • Enhance the quality, utility, and End of Summer. included in the request for Office of clarity of the information to be Total Responses: 168. Management and Budget approval of the collected; and Average Time per Response: Two information collection request; they will • Minimize the burden of the hours per report each report. also become a matter of public record. collection of information on those who Estimated Total Burden Hours: 6717. Signed at Washington D.C. this 5th day of are to respond, including through the Total Burden Cost (operating/ June, 1997. use of appropriate automated, maintaining): $750.00. John R. Beverly, III, electronic, mechanical, or other Comments submitted in response to this comment request will be Director, U.S. Employment Service. technological collection techniques or other forms of information technology, summarized and/or included in the [FR Doc. 97–15260 Filed 6–10–97; 8:45 am] request for Office of Management and BILLING CODE 4510±30±M e.g., permitting electronic submissions of responses. Budget approval of the information collection request; they will also ADDRESSES: James Wiggins, U.S. become a matter of public record. DEPARTMENT OF LABOR Department of Labor, 200 Constitution Avenue, NW., Washington, DC 20210; Dated: June 5, 1997. Employment and Training Telephone (202) 219–7533 ext. 164 (this Charles L. Atkinson, Administration is not a toll-free number); internet Deputy Administrator, Office of Job Training address—[email protected]; fax Programs. Proposed Collection; Comment number (202) 219–7190. [FR Doc. 97–15259 Filed 6–10–97; 8:45 am] Request BILLING CODE 4510±30±M SUPPLEMENTARY INFORMATION: ACTION: Notice. I. Background SUMMARY: The Department of Labor, as DEPARTMENT OF LABOR part of its continuing effort to reduce Under the Job Training Partnership paperwork and respondent burden Act Program, title IIB, the Department of Employment and Training conducts a pre-clearance consultation Labor has established the Summer Administration program to provide the general public Youth Employment and Training and Federal agencies with an Program to: (1) Enhance the basic Unemployment Insurance Customer opportunity to comment on proposed education skills of youth; (2) encourage Satisfaction Survey school completion or enrollment in and/or continuing collections of ACTION: Notice. information in accordance with the supplementary or alternative school Paperwork Reduction Act of 1995 programs; provide eligible youth with SUMMARY: The Department of Labor, as (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This exposure to the world of work; and (3) part of its continuing effort to reduce program helps to ensure that requested enhance the citizenship skills of youth. paperwork and respondent burden, data can be provided in the desired The Department of Labor is responsible conducts a preclearance consultation format, reporting burden (time and for overseeing these programs. In order program to provide the general public financial resources) is minimized, to carry out that responsibility, the and Federal agencies with an collection instruments are clearly Department will be revising the opportunity to comment on proposed understood, and the impact of collection reporting instructions and monitoring and/or continuing collections of requirements on respondents can be instruments. information, in accordance with the properly assessed. Currently, the II. Current Actions Paperwork Reduction Act of 1995 Employment and Training (PRA95). This program helps to ensure Administration is soliciting comments The changes being proposed will be that requested data can be provided in concerning the proposed revised consistent with the current emergency the desired format, reporting burden is collection of the Summer Youth request which has been forwarded to the minimized, reporting forms are clearly Employment Program. Office of Management and Budget. The understood, and the impact of collection A copy of the proposed information Department is requesting reporting at requirements on respondents can be collection request (ICR) can be obtained three points during the summer properly assessed. Currently, the by contacting the office listed below in program—plan, mid and final. This Unemployment Insurance Service of the the addressee section of this notice. information will permit the Department Employment and Training DATES: Written comments must be to fulfill requests from the U.S. Administration is soliciting comments submitted to the office listed in the Congress, the Administration, the media concerning the proposed customer addressee section below on or before and the public. satisfaction survey of Unemployment August 11, 1997. Type or Review: Extension. Insurance claimants. A copy of the The Department of Labor is Agency: Employment and Training proposed satisfaction survey can be particularly interested in comments Administration, U.S. Department of obtained by contacting the employee which: Labor. listed below in the contract section of • Evaluate whether the proposed Title: Summer Youth Employment this notice. collection of information is necessary and Training Program. DATES: Written comments must be for the proper performance of the OMB Number: 1205–XXXX. submitted on or before August 11, 1997. functions of the agency, including Recordkeeping: Retention for three If you anticipate submitting written whether the information will have years. comments, but find it difficult to do so practical utility; Affected Public: States. within the length of time allowed by 31846 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices this notice, you should request an satisfaction survey for UI claimants greater accuracy. All respondents will extension from the contact person listed only. The objectives of this survey are be informed that the information they below as soon as possible. An effort will to support the Federal role in such tasks provide will be kept strictly be made to accommodate each request, as oversight and national program confidential. All data will be collected unless otherwise justified. development. The survey satisfies the by a private contractor and only FOR FURTHER INFORMATION CONTACT: intent of Executive Order 12862 by information that will preclude any Robert Pavosevich, U.S. Dept. of Labor, enabling the Department of Labor to individual’s identification will be Unemployment Insurance Service, develop customer satisfaction provided to the U.S. Department of Room C–4514, 200 Constitution Ave. benchmarks to which individual States Labor. This data collection process from N.W., Washington, D.C. 20210, (202) may compare results from their own individuals and states will occur only 219–5312, (this is not a toll-free surveys. once. The total burden of collecting the number), internet address: administrative data and conducting the II. Current Actions [email protected]. survey is estimated to be 2,030 hours. Public comments are being solicited SUPPLEMENTARY INFORMATION: The survey will be administered to 3,000 claimants in sixteen different to address the accuracy of the burden I. Background States. Each of the States will provide estimates and ways to minimize burden, Customer satisfaction has become a the data on claimants. It is estimated including the use of automated key area of focus in the Federal that the burden of collecting this collection techniques or the use of other Government. The United States administrative data is 80 hours per State forms of information technology. Department of Labor Employment and for a total of 1,280 hours. The survey Type of Review: New. Training Administration is seeking to will then be done over the telephone in Agency: Employment and Training determine the degree to which the an average of fifteen minutes per Administration. Unemployment Insurance (UI) system claimant (750 total burden hours). Title: Unemployment Insurance provides satisfactory service to its Computer Assisted Telephone Claimant Customer Satisfaction Survey. claimant customers. This project is for Interviewing (CATI) will be used to OMB Number: 1205—New. the development and implementation of conduct the survey in order to reduce Affected Public: Individuals or a nationally representative customer the burden on respondents and provide Households and State Government.

Total re- Total re- Avg. time per Burden Cite/reference spondents Frequency sponses resp. hours

State ...... 16 One-time ...... 16 80 hrs ...... 1,280 Survey ...... 3,000 One-time ...... 3,000 15 min ...... 750

Totals ...... 2,030

Total Burden Cost (capital/startup): of local wage conditions and data made work of the character and in the $43,551. available from other sources. They localities described therein. Total Burden Cost (operating/ specify the basic hourly wage rates and Good cause is hereby found for not maintaining): $94,296. fringe benefits which are determined to utilizing notice and public comment Comments submitted in response to be prevailing for the described classes of procedure thereon prior to the issuance this notice will be summarized and/or laborers and mechanics employed on of these determinations as prescribed in included in the request for Office of construction projects of a similar 5 U.S.C. 553 and not providing for delay Management and Budget approval of the character and in the localities specified in the effective date as prescribed in that information collection request; they will therein. section, because the necessity to issue also become a matter of public record. The determinations in these decisions current construction industry wage of prevailing rates and fringe benefits determinations frequently and in large Signed at Washington, D.C., this fourth day of June, 1997. have been made in accordance with 29 volume causes procedures to be CFR Part 1, by authority of the Secretary impractical and contrary to the public Grace A. Kilbane, of Labor pursuant to the provisions of interest. Director, Unemployment Insurance Service. the Davis-Bacon Act of March 3, 1931, General wage determination [FR Doc. 97–15261 Filed 6–10–97; 8:45 am] as amended (46 Stat. 1494, as amended, decisions, and modifications and BILLING CODE 4510±30±M 40 U.S.C. 276a) and of other Federal supersedes decision thereto, contain no statutes referred to in 29 CFR Part 1, expiration dates and are effective from Appendix, as well as such additional their date of notice in the Federal DEPARTMENT OF LABOR statutes as may from time to time be Register, or on the date written notice enacted containing provisions for the is received by the agency, whichever is Employment Standards Administration payment of wages determined to be earlier. These decisions are to be used Wage and Hour Division; Minimum prevailing by the Secretary of Labor in in accordance with the provisions of 29 Wages for Federal and Federally accordance with the Davis-Bacon Act. CFR Parts 1 and 5. Accordingly, the Assisted Construction; General Wage The prevailing rates and fringe benefits applicable decision, together with any Determination Decisions determined in these decisions shall, in modifications issued, must be made a accordance with the provisions of the part of every contract for performance of General wage determination decisions foregoing statutes, constitute the the described work within the of the Secretary of Labor are issued in minimum wages payable on Federal and geographic area indicated as required by accordance with applicable law and are federally assisted construction projects an applicable Federal prevailing wage based on the information obtained by to laborers and mechanics of the law and 29 CFR Part 5. The wage rates the Department of Labor from its study specified classes engaged on contract and fringe benefits, notice of which is Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31847 published herein, and which are MD970057 (Feb. 14, 1997) WI970002 (Feb. 14, 1997) contained in the Government Printing Pennsylvania WI970003 (Feb. 14, 1997) Office (GPO) document entitled PA970018 (Feb. 14, 1997) WI970004 (Feb. 14, 1997) ‘‘General Wage Determinations Issued PA970042 (Feb. 14, 1997) WI970005 (Feb. 14, 1997) PA970065 (Feb. 14, 1997) Under The Davis-Bacon And Related WI970006 (Feb. 14, 1997) Virginia WI970007 (Feb. 14, 1997) Acts,’’ shall be the minimum paid by VA970022 (Feb. 14, 1997) WI970008 (Feb. 14, 1997) contractors and subcontractors to VA970025 (Feb. 14, 1997) WI970009 (Feb. 14, 1997) laborers and mechanics. VA970034 (Feb. 14, 1997) WI970010 (Feb. 14, 1997) Any person, organization, or VA970039 (Feb. 14, 1997) WI970011 (Feb. 14, 1997) governmental agency having an interest VA970048 (Feb. 14, 1997) WI970012 (Feb. 14, 1997) in the rates determined as prevailing is VA970052 (Feb. 14, 1997) WI970013 (Feb. 14, 1997) encouraged to submit wage rate and VA970058 (Feb. 14, 1997) WI970014 (Feb. 14, 1997) VA970063 (Feb. 14, 1997) fringe benefit information for WI970015 (Feb. 14, 1997) VA970078 (Feb. 14, 1997) WI970016 (Feb. 14, 1997) consideration by the Department. VA970079 (Feb. 14, 1997) Further information and self- WI970017 (Feb. 14, 1997) VA970103 (Feb. 14, 1997) WI970018 (Feb. 14, 1997) explanatory forms for the purpose of VA970104 (Feb. 14, 1997) WI970019 (Feb. 14, 1997) submitting this data may be obtained by VA970105 (Feb. 14, 1997) WI970020 (Feb. 14, 1997) writing to the U.S. Department of Labor, West Virginia WI970021 (Feb. 14, 1997) WV970002 (Feb. 14, 1997) Employment Standards Administration, WI970022 (Feb. 14, 1997) WV970003 (Feb. 14, 1997) Wage and Hour Division, Division of WI970024 (Feb. 14, 1997) WV970006 (Feb. 14, 1997) Wage Determinations, 200 Constitution WI970025 (Feb. 14, 1997) Avenue, NW., Room S–3014, Volume III WI970026 (Feb. 14, 1997) Washington, DC 20210. Kentucky WI970027 (Feb. 14, 1997) WI970028 (Feb. 14, 1997) Modifications to General Wage KY970001 (Feb. 14, 1997) KY970002 (Feb. 14, 1997) WI970029 (Feb. 14, 1997) Determination Decisions KY970003 (Feb. 14, 1997) WI970030 (Feb. 14, 1997) The number of decisions listed in the KY970004 (Feb. 14, 1997) WI970031 (Feb. 14, 1997) KY970006 (Feb. 14, 1997) WI970032 (Feb. 14, 1997) Government Printing Office document WI970033 (Feb. 14, 1997) entitled ‘‘General Wage Determinations KY970007 (Feb. 14, 1997) KY970025 (Feb. 14, 1997) WI970034 (Feb. 14, 1997) Issued Under the Davis-Bacon and KY970027 (Feb. 14, 1997) WI970035 (Feb. 14, 1997) Related Acts’’ being modified are listed KY970028 (Feb. 14, 1997) WI970036 (Feb. 14, 1997) by Volume and State. Dates of KY970029 (Feb. 14, 1997) WI970037 (Feb. 14, 1997) publication in the Federal Register are KY970035 (Feb. 14, 1997) WI970039 (Feb. 14, 1997) in Parentheses following the decisions KY970044 (Feb. 14, 1997) WI970041 (Feb. 14, 1997) being modified. WI970049 (Feb. 14, 1997) Volume IV WI970066 (Feb. 14, 1997) Volume I Illinois WI970067 (Feb. 14, 1997) IL970008 (Feb. 14, 1997) Massachusetts Volume V MA970001 (Feb. 14, 1997) IL970009 (Feb. 14, 1997) MA970002 (Feb. 14, 1997) Minnesota Kansas MA970003 (Feb. 14, 1997) MN970005 (Feb. 14, 1997) KS970004 (Feb. 14, 1997) MA970006 (Feb. 14, 1997) MN970007 (Feb. 14, 1997) KS970006 (Feb. 14, 1997) MA970007 (Feb. 14, 1997) MN970008 (Feb. 14, 1997) KS970007 (Feb. 14, 1997) MA970008 (Feb. 14, 1997) MN970012 (Feb. 14, 1997) KS970008 (Feb. 14, 1997) MA970009 (Feb. 14, 1997) MN970015 (Feb. 14, 1997) KS970009 (Feb. 14, 1997) MA970010 (Feb. 14, 1997) MN970017 (Feb. 14, 1997) KS970012 (Feb. 14, 1997) MA970013 (Feb. 14, 1997) MN970027 (Feb. 14, 1997) KS970013 (Feb. 14, 1997) MA970017 (Feb. 14, 1997) MN970031 (Feb. 14, 1997) KS970016 (Feb. 14, 1997) MA970018 (Feb. 14, 1997) MN970035 (Feb. 14, 1997) KS970017 (Feb. 14, 1997) MA970019 (Feb. 14, 1997) MN970039 (Feb. 14, 1997) KS970021 (Feb. 14, 1997) MA970020 (Feb. 14, 1997) MN970046 (Feb. 14, 1997) KS970023 (Feb. 14, 1997) MA970021 (Feb. 14, 1997) MN970047 (Feb. 14, 1997) KS970025 (Feb. 14, 1997) New Jersey MN970049 (Feb. 14, 1997) KS970026 (Feb. 14, 1997) NJ970002 (Feb. 14, 1997) MN970058 (Feb. 14, 1997) KS970029 (Feb. 14, 1997) Rhode Island MN970059 (Feb. 14, 1997) KS970061 (Feb. 14, 1997) RI970001 (Feb. 14, 1997) MN970061 (Feb. 14, 1997) Louisiana RI970002 (Feb. 14, 1997) Ohio LA970005 (Feb. 14, 1997) OH970001 (Feb. 14, 1997) LA970009 (Feb. 14, 1997) Volume II OH970002 (Feb. 14, 1997) LA970018 (Feb. 14, 1997) District of Columbia OH970003 (Feb. 14, 1997) Texas DC970001 (Feb. 14, 1997) OH970012 (Feb. 14, 1997) TX970018 (Feb. 14, 1997) DC970002 (Feb. 14, 1997) OH970014 (Feb. 14, 1997) DC970003 (Feb. 14, 1997) OH970024 (Feb. 14, 1997) Volume VI Maryland OH970026 (Feb. 14, 1997) Colorado MD970008 (Feb. 14, 1997) OH970027 (Feb. 14, 1997) CO970001 (Feb. 14, 1997) MD970017 (Feb. 14, 1997) OH970028 (Feb. 14, 1997) South Dakota MD970034 (Feb. 14, 1997) OH970029 (Feb. 14, 1997) SD970003 (Feb. 14, 1997) MD970035 (Feb. 14, 1997) OH970032 (Feb. 14, 1997) SD970005 (Feb. 14, 1997) MD970036 (Feb. 14, 1997) OH970034 (Feb. 14, 1997) SD970006 (Feb. 14, 1997) MD970047 (Feb. 14, 1997) OH970035 (Feb. 14, 1997) MD970048 (Feb. 14, 1997) Wisconsin Volume VII MD970056 (Feb. 14, 1997) WI970001 (Feb. 14, 1997) None 31848 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

General Wage Determination opportunity to comment on proposed information collection request are Publication and/or continuing collections of available for inspection and copying in General wage determinations issued information in accordance with the the Docket Office and will be mailed under the Davis-Bacon and related Acts, Paperwork Reduction Act of 1995 immediately to persons who request including those noted above, may be (PRA95) (44 U.S.C. 3506(c)(2)(A)). This copies by telephoning Barbara Bielaski found in the Government Printing Office program helps to ensure that requested at (202) 219–7177. For electronic copies (GPO) document entitled ‘‘General Wage data can be provided in the desired of the information collection request on Determinations Issued Under The Davis- format, reporting burden (time and the OSHA Data Collection System, Bacon and Related Acts’’. This financial resources) is minimized, contact the Labor News Bulletin Board publication is available at each of the 50 collection instruments are clearly (202) 219–4784; or OSHA’s WebPage on Regional Government Depository understood, and the impact of collection Internet at http://www.osha.gov/ (click Libraries and many of the 1,400 requirements on respondents can be on Standards). properly assessed. Currently, the Government Depository Libraries across SUPPLEMENTARY INFORMATION: the county. Occupational Safety and Health The general wage determinations Administration (OSHA) is soliciting Background comments concerning the proposed issued under the Davis-Bacon and To meet many of OSHA’s program extension of the information collection related Acts are available electronically needs, OSHA is proposing to continue request for the OSHA Data Collection by subscription to the FedWorld its data system to collect occupational System. A copy of the proposed Bulletin Board System of the National injury and illness data and information information collection request (ICR) can Technical Information Service (NTIS) of on number of workers employed and be obtained by contacting the office the U.S. Department of Commerce at number of hours worked from listed below in the addressee section of (703) 487–4630. establishments in portions of the private this notice. Hard-copy subscriptions may be sector. OSHA will collect data from purchased from: Superintendent of DATES: Written comments must be 80,000 employers required in 1997 to Documents, U.S. Government Printing submitted to the office listed in the create and maintain records pursuant to Office, Washington, D.C. 20402, (202) addressee section below on or before CFR Part 1904. These data will allow 512–1800. August 11, 1997. The Department of OSHA to calculate occupational injury When ordering hard-copy Labor is particularly interested in and illness rates and to focus its efforts subscription(s), be sure to specify the comments which: • on individual workplaces with ongoing State(s) of interest, since subscriptions Evaluate whether the proposed serious safety and health problems. may be ordered for any or all of the collection of information is necessary Successful implementation of the data seven separate volumes, arranged by for the proper performance of the collection system is critical to OSHA’s State. Subscriptions include an annual functions of the agency, including reinvention efforts. The data collected edition (issued in January or February) whether the information will have will allow the Agency to deal with a practical utility; which includes all current general wage • larger number of employers without determinations for the States covered by Evaluate the accuracy of the massive increases in resources, will each volume. Throughout the remainder agency’s estimate of the burden of the reduce intrusive interventions in of the year, regular weekly updates are proposed collection of information, workplaces that are relatively safe, and distributed to subscribers. including the validity of the will lead to improved workplace safety methodology and assumptions used; and health for America’s workers. The Signed at Washington, D.C. this 6th day of • Enhance the quality, utility, and data collection system is also critical to June 1997. clarity of the information to be the Agency’s Government Performance Carl J. Poleskey, collected; and and Results Act (GPRA) requirements. Chief, Branch of Construction Wage • Minimize the burden of the The data will enable OSHA to monitor Determinations. collection of information on those who the results of agency activities, quantify [FR Doc. 97–15277 Filed 6–10–97; 8:45 am] are to respond, including through the and evaluate the successes and failure of BILLING CODE 4510±27±M use of appropriate automated, its various programs based on program electronic, mechanical, or other results, identify the most efficient and technological collection techniques or effective program mix, and promote the DEPARTMENT OF LABOR other forms of information technology, development of programs and policies e.g., permitting electronic submissions Occupational Safety and Health based on outcome data. of responses. Administration ADDRESSES: Comments are to be Current Action OSHA Data Collection System submitted to the Docket Office, Docket This notice requests OMB approval of No. ICR 97–17, U.S. Department of the paperwork requirements for the [Docket ICR 97±17] Labor, Room N–2625, 200 Constitution OSHA Data Collection System. AGENCY: Occupational Safety and Health Ave., NW., Washington, DC 20210, (202) Type of Review: Extension of existing Administration, Labor. 219–7894. Written comments limited to approval. ACTION: Notice; proposed collection 10 pages or less in length may also be Agency: Occupational Safety and request; submitted for public comment transmitted by facsimile to (202) 219– Health Administration, U.S. Department and recommendations. 5046. of Labor. FOR FURTHER INFORMATION CONTACT: Title OSHA Data Collection System. SUMMARY: The Department of Labor, as Dr. Joseph DuBois, Office of Statistics, OMB Number: 1218–0209. part of its continuing effort to reduce Occupational Safety and Health Agency Number: ICR–97–17. paperwork and respondent burden Administration, U.S. Department of Frequency: Annually. conducts a preclearance consultation Labor, Room N–3647, 200 Constitution Affected Public: Business or other for- program to provide the general public Ave., NW., Washington DC 20210, (202) profit and State, Local or Tribal and Federal agencies with an 219–6463. Copies of the reference Government. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31849

Form: OSHA Form 196A and OSHA Number of Respondents: 80,000. Estimated Total Burden Hours: 35,000 Form 196B. Estimated Time Per Respondent: 30 hours minutes

Total re- Total re- Cite/reference spondents Frequency sponses Average time per response Burden

OSHA Form 196A ...... 10,000 Annually ...... 10,000 30 minutes ...... (*) OSHA Form 196B ...... 70,000 Annually ...... 70,000 30 minutes ...... 35,000 hours.

Total Burden Cost (capital/startup/ applicants. In accordance with the public for a policy and guidelines operating/maintenance): $0. determination of the Chairman of March discussion. Comments submitted in response to 31, 1997, these sessions will be closed The remaining portions of this this comment request will be to the public pursuant to subsection (c) meeting, from 9:00 a.m. to 12:30 p.m. summarized and/or included in the (4), (6) and (9)(B) of section 552b of Title and from 2:30 p.m. to 4:30 p.m., are for request for Office of Management and 5, United States Code. the purpose of Panel review, discussion, Budget approval of the information Any person may observe meetings, or evaluation, and recommendation on collection request; they will be also portions thereof, of advisory panels applications for financial assistance become a matter of public record. which are open to the public, and may under the National Foundation on the Signed this 3 day of June 1997. be permitted to participate in the Arts and the Humanities Act of 1965, as Stephen A. Newell, panel’s discussions at the discretion of amended, including information given Director, Office of Statistics. the panel chairman and with the in confidence to the agency by grant approval of the full-time Federal [FR Doc. 97–15262 Filed 6–11–97; 8:45 am] applicants. In accordance with the employee in attendance. determination of the Chairman of March BILLING CODE 4510±26±M If you need special accommodations 31, 1997, these sessions will be closed due to a disability, please contact the to the public pursuant to subsection (c) Office of AccessAbility, National (4), (6) and (9)(B) of section 552b of Title NATIONAL FOUNDATION ON THE Endowment for the Arts, 1100 5, United States Code. ARTS AND THE HUMANITIES Pennsylvania Avenue, NW, Washington, Any person may observe meetings, or National Endowment for the Arts; D.C. 20506, 202/682–5532, TDY–TDD portions thereof, of advisory panels Combined Arts Panel 202/682–5496, at least seven (7) days which are open to the public, and may prior to the meeting. be permitted to participate in the Pursuant to Section 10(a)(2) of the Further information with reference to panel’s discussions at the discretion of Federal Advisory Committee Act (Pub. this meeting can be obtained from Ms. the panel chairman and with the L. 92–463), as amended, notice is hereby Kathy Plowitz-Worden, Committee approval of the full-time Federal given that a meeting of the Combined Management Officer, National employee in attendance. Arts Advisory Panel, Folk and Endowment for the Arts, Washington, If you need special accommodations Traditional Arts Section (Creation and D.C. 20506, or call 202/682–5691. due to a disability, please contact the Presentation, Heritage and Preservation, Dated: June 5, 1997. Office of AccessAbility, National Education and Access, and Planning Kathy Plowitz-Worden, Endowment for the Arts, 1100 and Stabilization categories) to the Pennsylvania Avenue, NW., National Council on the Arts will be Panel Coordinator, Panel Operations, National Endowment for the Arts. Washington, D.C. 20506, 202/682–5532, held on July 7–11, 1997. The panel will TDY–TDD 202/682–5496, at least seven [FR Doc. 97–15173 Filed 6–10–97; 8:45 am] meet from 9:00 a.m. to 7:00 p.m. on July (7) days prior to the meeting. 7 and 10; from 9:00 a.m. to 5:30 p.m. on BILLING CODE 7537±01±M Futher information with reference to July 8 and 11; and from 10:00 a.m. to this meeting can be obtained from Ms. 3:30 p.m. on July 9. The panel will meet NATIONAL FOUNDATION ON THE Kathy Plowitz-Worden, Committee in Room 716 at the Nancy Hanks Center, ARTS AND THE HUMANITIES Management Officer, National 1100 Pennsylvania Avenue, NW, Endowment for the Arts, Washington, Washington, D.C. 20506. A portion of National Endowment for the Arts; D.C. 20506, or call 202/682–5691. this meeting, from 10:30 a.m. to 12:00 Combined Arts Panel Dated: June 5, 1997. p.m. on July 11 will be open to the Kathy Plowitz-Worden, public for a policy and guidelines Pursuant to Section 10(a)(2) of the discussion. Federal Advisory Committee Act (Public Panel Coordinator, Panel Operations, The remaining portions of this Law 92–463), as amended, notice is National Endowment for the Arts. meeting, from 9:00 a.m. to 7:00 p.m. on hereby given that a meeting of the [FR Doc. 97–15236 Filed 6–10–97; 8:45 am] July 7 and 10; from 9:00 a.m. to 5:30 Combined Arts Advisory Panel, Design BILLING CODE 7537±01±M p.m. on July 8; from 10:00 a.m. to 3:30 Section (Creation and Presentation, p.m.; from 9:00 a.m. to 10:30 a.m. and Heritage and Preservation, Education from 1:00 p.m. to 5:30 p.m. on July 11, and Access, and Planning and NATIONAL FOUNDATION ON THE are for the purpose of Panel review, Stabilization categories) to the National ARTS AND THE HUMANITIES discussion, evaluation, and Council on the Arts will be held on July National Endowment for the Arts; recommendation on applications for 24, 1997. The panel will meet from 9:00 Combined Arts Panel financial assistance under the National a.m. to 4:30 p.m. in Room 714 at the Foundation on the Arts and the Nancy Hanks Center, 1100 Pennsylvania Pursuant to Section 10(a)(2) of the Humanities Act of 1965, as amended, Avenue, N.W., Washington, D.C. 20506. Federal Advisory Committee Act (Public including information given in A portion of this meeting, from 1:30 Law 92–463), as amended, notice is confidence to the agency by grant p.m. to 2:30 p.m., will be open to the hereby given that a meeting of the 31850 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Combined Arts Advisory Panel, NATIONAL SCIENCE FOUNDATION Materials Research, Room 1065, National Museum/Visual Arts Section (Heritage Science Foundation, 4201 Wilson Boulevard, and Preservation category) to the Special Emphasis Panel in Human Arlington, VA 22230, Telephone (703) 306– National Council on the Arts will be Resource Development 1817. held on July 15–16, 1997. The panel Purpose of Meeting: To provide advice and Notice of Meeting recommendations concerning support for the will meet from 9:00 a.m. to 7:00 p.m. on Center for Advanced Liquid Crystalline July 15 and from 9:00 a.m. to 5:00 p.m. In accordance with the Federal Optical Materials (ALCOM), Science and on July 16, in Room 716 at the Nancy Advisory Committee Act (Pub. L. 92– Technology Center, Kent State University. Hanks Center, 1100 Pennsylvania 463, as amended), the National Science Agenda: To review and evaluate a proposal Avenue, NW., Washington, DC 20506. A Foundation announces the following and provide advice and recommendations as portion of this meeting, from 11:00 a.m. meeting. part of the review process for proposal to 12:30 p.m. and from 1:00 p.m. to 2:00 Name and Committee Code: Special submitted to the National Science p.m. on July 16, will be open to the Emphasis Panel In Human Resource Foundation. public for a policy and guidelines Development (#1199). Reason For Closing: The activity being discussion. Date and Time: June 23, 1997: 8:00 a.m. to evaluated may include information of a 5:00 p.m.; June 24, 1997: 8:00 a.m. to 5:00 proprietary or confidential nature, including The remaining portions of this p.m. technical information; financial data, such as meeting, from 9:00 a.m. to 7:00 p.m. on Place: National Science Foundation, 4201 salaries and personal information concerning July 15 and from 9:00 a.m. to 11:00 a.m. Wilson Boulevard, Room 360, Arlington, VA individuals associated with the proposals. and 2:00 p.m. to 5:00 p.m., on July 16 22230. These matters are exempt under 5 U.S.C. Type of Meeting: Closed. 552b.(c) (4) and (6) of the Government in the are for the purpose of Panel review, Contact Person: Dr. Bobby Wilson, Program Sunshine Act. discussion, evaluation, and Director, Human Resource Development recommendation on applications for Division, Room 815, National Science Dated. June 5, 1997. financial assistance under the National Foundation, 4201 Wilson Boulevard, M. Rebecca Winkler, Foundation on the Arts and the Arlington, VA 22230, Telephone: (703) 306– Committee Management Officer. 1634. Humanities Act of 1965, as amended, [FR Doc. 97–15177 Filed 6–10–97; 8:45 am] including information given in Purpose of Meeting: To provide advice and recommendations concerning nominations BILLING CODE 7555±01±M confidence to the agency by grant submitted to NSF for financial support. applicants. In accordance with the Agenda: To review and evaluate determination of the Chairman of March nominations for Presidential Awards for NATIONAL SCIENCES FOUNDATION 31, 1997, these sessions will be closed Excellence in Science, Mathematics and to the public pursuant to subsection (c) Engineering Mentoring (PAESMEM) as part Special Emphasis Panel in the Division (4), (6) and (9)(B) of section 552b of Title of the selection process for awards. of Physics; Notice of Meeting Reason for Closing: The nominations being 5, United States Code. reviewed include information of a In accordance with the Federal Any person may observe meetings, or proprietary or confidential nature, including Advisory Committee Act (Pub. L. 92– portions thereof, of advisory panels technical information; financial data, such as salaries; and personal information 463, as amended), the National Science which are open to the public, and may Foundation announces the following be permitted to participate in the concerning individuals associated with the nominations. These matters are exempt meeting. panel’s discussions at the discretion of under 5 U.S.C. 552b(c), (4) and (6) of the the panel chairman and with the Name and Committee Code: Special Government in the Sunshine Act. Emphasis Panel in the Division of Physics approval of the full-time Federal Dated: June 5, 1997. (#1208). employee in attendance. M. Rebecca Winkler, Date and Time: Thursday, June 26, 1997 If you need special accommodations Committee Management Officer. 8:30 a.m.–5:00 p.m., Friday, June 27, 1997 due to a disability, please contact the [FR Doc. 97–15176 Filed 6–10–97; 8:45 am] 8:30 a.m.–5:00 p.m. Place: Thursday, June 26, 1997, Room Office of AccessAbility, National BILLING CODE 7555±01±M Endowment for the Arts, 1100 370N; Friday June 27, 1997, Room 370N 4201 Pennsylvania Avenue, NW., Wilson Blvd., Arlington, VA 22230. Type of Meeting: Closed. Washington, DC 20506, 202/682–5532, NATIONAL SCIENCE FOUNDATION Contact Person: Dr. John W. Lightbody, TDY–TDD 202/682–5496, at least seven Executive Officer, Division of Physics, Room (7) days prior to the meeting. Special Emphasis Panel in Materials Research; Notice of Meeting 1015, National Science Foundation, 4201 Further information with reference to Wilson Blvd., Arlington, VA 22230. this meeting can be obtained from Ms. In accordance with the Federal Telephone: (703) 306–1806. Kathy Plowitz-Worden, Committee Advisory Committee Act (Pub. L. 92– Purpose of Meeting: To provide advice and Management Officer, National 463 as amended), the National Science recommendations concerning the Borexino Endowment for the Arts, Washington, Foundation announces the following Review submitted to NSF for financial meetings. support. DC 20506, or call 202/682–5691. Agenda: To review and evaluate proposals Name and Committee Code: Special Dated: June 5, 1997. as part of the selection process for awards. Emphasis Panel in Materials Research #1293. Kathy Plowitz-Worden, Dates and Times: June 25, 1997; 6:00 pm– Reason for Closing: The proposals being reviewed include information of a Panel Coordinator, Panel Operations, 10:00 pm, June 26, 1997; 8:00 am–6:00 pm, proprietary or confidential nature, including National Endowment for the Arts. June 27, 1997; 8:00 am–5:00 pm. technical information; financial data, such as [FR Doc. 97–15237 Filed 6–10–97; 8:45 am] Place: Liquid Crystal Institute/Materials Science Building, Kent State University, salaries; and personal information BILLING CODE 7537±01±M Kent, OH concerning individuals associated with the Type of Meeting: Closed. proposals. These matters are exempt under 5 Contact Person: Dr. David L. Nelson, U.S.C. 552b(c) (4) and (6) of the Government Coordinating Program Director, Division of in the Sunshine Act. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31851

Dated: June 5, 1997. DATES: The meeting is scheduled for informs potential respondents that an M. Rebecca Winkler, June 19, 1997 commencing at 10:00 a.m. agency may not conduct or sponsor, and Committee Management Officer. to adjournment. that a person is not required to respond [FR Doc. 97–15178 Filed 6–10–97; 8:45 am] ADDRESS: The meeting will be held in to, a collection of information unless it BILLING CODE 7555±01±M Room 301–303 at the New Hampshire displays a currently valid OMB control Legislative Office Building located on number. 33 North State Street in Concord, NH 1. Type of submission, new, revision, NATIONAL SCIENCE FOUNDATION (exit 14 off Interstate 93). or extension: Revision 2. The title of the information FOR FURTHER INFORMATION CONTACT: Special Emphasis Panel in Research, Daniel Smith, Executive Director, collection: 10 CFR Part 50, ‘‘Domestic Evaluation and Communication; Notice Northeast Dairy Compact Commission, Licensing of Production and Utilization of Meeting 43 State Street, PO Box 1058, Facilities’’. 3. The form number if applicable: Not Montpelier, VT 05601. Telephone (802) In accordance with the Federal applicable. Advisory Committee Act (Pub. L. 92– 229–1941. 4. How often the collection is 463, as amended), the National Science SUPPLEMENTARY INFORMATION: Notice is required: As necessary in order for NRC Foundation announces the following hereby given that the Northeast Dairy to meet its responsibilities to conduct a meeting: Compact Commission will hold its detailed review of applications for Name: Special Emphasis Panel in regularly scheduled monthly meeting. licenses and amendments thereto to Research, Evaluation and Communication. The Compact Commission will consider construct and operate nuclear power Date and Time: June 30, 1997; 8:30 a.m. to certain administrative matters, plants, preliminary or final design 6:00 p.m., July 1, 1997; 8:30 a.m. to 4:00 p.m. including staffing and budget issues and approvals, design certifications, Place: Rooms 310, 320, 340, 360, 370, 380, the establishment of an ad hoc research and test facilities, reprocessing 390, National Science Foundation, 4201 committee on regional cost of plants and other utilization and Wilson Boulevard, Arlington, VA 22230. production. The Commission will also production facilities, licensed pursuant Type of Meeting: Closed. consider procedures to implement to the Atomic Energy Act of 1954, as Contact Person: Dr. Nora Sabelli, Senior Compact Sections 16 and 17, relative to Program Director, 4201 Wilson Boulevard, amended (the Act) and to monitor their Room 855, Arlington, VA 22230. Telephone the protection of the rights of any activities. (703) 306–1651. objectors to the compact over-order 5. Who will be required or asked to Purpose of Meeting: To provide advice and price regulation during administrative report: Licensees and applicants for recommendations concerning proposals and judicial review of their objections to nuclear power plants and non-power submitted to NSF for financial support. this regulation. reactors (research and test facilities). Agenda: To review and evaluate proposals (Authority: (a) Article V, Section 11 of the 6. An estimate of the number of and provide advice and recommendations as Northeast Interstate Dairy Compact, and all responses: 7,985. part of the selection process for proposals other applicable Articles and Sections, as 7. The estimated number of annual submitted to the Learning and Intelligent approved by Section 147, of the Federal respondents: 178. Systems Initiative (LIS) Program. Agriculture Improvement and Reform Act Reason for Closing: Because the proposals 8. An estimate of the total number of (FAIR ACT), Pub. L. 104–127, and as thereby hours needed annually to complete the reviewed include information of a set forth in S.J. Res. 28(1)(b) of the 104th proprietary or confidential nature, including requirement or request: 5.6M Congress; Finding of Compelling Public (approximately 2.9M reporting hours technical information; financial data, such as Interest by United States Department of salaries; and personal information Agriculture Secretary Dan Glickman, August and 2.7M recordkeeping hours); an concerning individuals associated with 8, 1996 and March 20, 1997. (b) Bylaws of average of 31.3K per respondent. proposals, the meetings are closed to the the Northeast Dairy Compact Commission, 9. An indication of whether Section public. These matters are within exemptions adopted November 21, 1996) 3507(d), Pub. L. 104–13 applies: Not (4) and (6) of 5 U.S.C. 552b(c), Government Daniel Smith, applicable. in the Sunshine Act. 10. Abstract: 10 CFR part 50 of the Executive Director. Dated: June 5, 1997. NRC’s regulations, ‘‘Domestic Licensing [FR Doc. 97–15233 Filed 6–10–97; 8:45 am] M. Rebecca Winkler, of Production and Utilization BILLING CODE 1650±01±P Committee Management Officer. Facilities,’’ specifies technical [FR Doc. 97–15175 Filed 6–10–97; 8:45 am] information and data to be provided to BILLING CODE 7555±01±M the NRC or maintained by applicants NUCLEAR REGULATORY and licensees so that the NRC may make COMMISSION determinations necessary to promote the health and safety of the public, in Agency Information Collection NORTHEAST DAIRY COMPACT accordance with the Act. The reporting Activities: Submission for OMB COMMISSION and recordkeeping requirements Review; Comment Request Meeting contained in 10 CFR part 50 are AGENCY: U. S. Nuclear Regulatory mandatory for the affected licensees and AGENCY: Northeast Dairy Compact Commission (NRC). applicants. Commission. ACTION: Notice of the OMB review of A copy of the submittal may be ACTION: Notice of Regular Meeting. information collection and solicitation viewed free of charge at the NRC Public of public comment. Document Room, 2120 L Street, NW SUMMARY: The Compact Commission (Lower Level), Washington, DC. will hold its regularly scheduled SUMMARY: The NRC has recently Members of the public who are in the monthly meeting to consider certain submitted to OMB for review the Washington, DC, area can access the matters relating to administration and following proposal for the collection of submittal via modem on the Public certain issues relating to information under the provisions of the Document Room Bulletin Board (NRC’s implementation of the compact over- Paperwork Reduction Act of 1995 (44 Advance Copy Document Library) NRC order price regulation. U.S.C. Chapter 35). The NRC hereby subsystem at FedWorld, 703–321–3339. 31852 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Members of the public who are located 6. An estimate of the number of Dated at Rockville, Maryland, this 5th day outside of the Washington, DC, area can responses: 3. of June, 1997. dial FedWorld, 1–800–303–9672, or use 7. The estimated number of annual For the Nuclear Regulatory Commission. the FedWorld Internet address: respondents: 3. Arnold E. Levin, fedworld.gov (Telnet). The document 8. An estimate of the total number of Acting Designated Senior Official for will be available on the bulletin board hours needed annually to complete the Information Resources Management. for 30 days after the signature date of requirement or request: 54 hours [FR Doc. 97–15273 Filed 6–10–97; 8:45 am] this notice. If assistance is needed in initially; thereafter 48 hours annually— BILLING CODE 7590±01±P accessing the document, please contact 16 hours for each of 3 respondents (48 the FedWorld help desk at 703–487– hours per year reporting burden and a 4608. Additional assistance in locating one-time 6-hour recordkeeping burden, NUCLEAR REGULATORY the document is available from the NRC 2 hours for each of 3 respondents) COMMISSION Public Document Room, nationally at 1– 9. An indication of whether Section 800–397–4209, or within the 3507(d). Pub. L. 104–13 applies: [Docket Nos. 50±282 and 50±306] Washington, DC, area at 202–634–3273. Applicable. Comments and questions should be 10. Abstract: In response to a petition Northern States Power Company; directed to the OMB reviewer by July for rulemaking submitted by Tri-Med Prairie Island Nuclear Generating 11, 1997: Edward Michlovich, Office of Specialties, Inc., the NRC is proposing Plant, Unit Nos. 1 and 2 Environmental Information and Regulatory Affairs to amend its regulations to allow NRC Assessment and Finding of no (3150–0011), NEOB–10202, Office of licensees to distribute a radioactive drug Significant Impact Management and Budget, Washington, containing one microcurie of carbon-14 DC 20503. urea to any person for ‘‘in vivo’’ The U.S. Nuclear Regulatory Comments can also be submitted by diagnostic use. The adoption of this Commission (the Commission) is telephone at (202) 395–3084. amendment would make the drug more considering issuance of amendments to The NRC Clearance Officer is Brenda widely available, thus reducing costs to Facility Operating Licenses Nos. DPR– Jo. Shelton, (301) 415–7233. patients. 42 and DPR–60, issued to Northern Dated at Rockville, Maryland, this 5th day Submit, by July 11, 1997, comments States Power Company (NSP, the of June 1997. that address the following questions: licensee), for operation of Prairie Island For the Nuclear Regulatory Commission. 1. Is the proposed collection of Nuclear Generating Plant, Unit Nos. 1 Arnold E. Levin, information necessary for the NRC to and 2, located in Goodhue County, Acting Designated Senior Official for properly perform its functions? Does the Minnesota. Information Resources Management. information have practical utility? Environmental Assessment [FR Doc. 97–15272 Filed 6–10–97; 8:45 am] 2. Is the burden estimate accurate? BILLING CODE 7590±01±P 3. Is there a way to enhance the Identification of the Proposed Action quality, utility, and clarity of the The proposed amendments would information to be collected? 4. How can the burden of the revise the technical specifications (TS) NUCLEAR REGULATORY to take credit for soluble boron in the COMMISSION information collection be minimized, including the use of automated spent fuel pool in maintaining an Agency Information Collection collection techniques or other forms of acceptable margin of subcriticality. Activities: Submission for OMB information technology? However, even if the spent fuel pool Review; Comment Request A copy of the submittal may be were to be completely filled with viewed free of charge at the NRC Public unborated water, the licensee’s dilution AGENCY: U.S. Nuclear Regulatory Document Room, 2120 L Street NW, event calculations show that the spent Commission (NRC). (Lower Level), Washington, DC. The fuel pool would remain subcritical. ACTION: Notice of the OMB review of proposed rule indicated in ‘‘The title of The Need for the Proposed Action information collection and solicitation the information collection’’ is or has of public comment. been published in the Federal Register Currently, compliance with the TS requirement to maintain criticality (keff) SUMMARY: The NRC has recently within several days of the publication in the spent fuel pool to less than 0.95 submitted to OMB for review the date of this Federal Register Notice. with unborated water is accomplished following proposal for the collection of Instructions for accessing the electronic through the use of Boraflex, a neutron information under the provisions of the OMB clearance package for the absorber. However, recent tests have Paperwork Reduction Act of 1995 (44 rulemaking have been appended to the indicated that the Boraflex is showing U.S.C. Chapter 35). electronic rulemaking. Members of the 1. Type of submission, new, revision, public may access the electronic OMB degradation induced by gamma or extension: Revision. clearance package by following the radiation. Maintaining a boron 2. The title of the information directions for electronic access provided concentration of 1800 parts per million collection: Proposed rule, 10 CFR Parts in the preamble to the titled rulemaking. in the spent fuel pool is more than 30 and 32—Exempt Distribution of a Comments and questions should be sufficient to ensure that the keff is Radioactive Drug Containing One directed to the OMB reviewer by July maintained below 0.95. Microcurie of Carbon-14 Urea. 11, 1997: Edward Michlovich, Office of Environmental Impacts of the Proposed 3. The form number if applicable: Information and Regulatory Affairs Action NRC Form 313. (3150–0001), NEOB–10202, Office of 4. How often the collection is Management and Budget, Washington The Commission has completed its required: On occasion. DC 20503. evaluation of the proposed action and 5. Who will be required or asked to Comments can also be submitted by concludes that the licensee’s proposal to report: Manufacturers and distributors telephone at (202) 395–3084. take credit for soluble boron in the spent of the radioactive drug containing The NRC Clearance Officer is Brenda fuel pool water to maintain keff less than Carbon-14 urea. Jo. Shelton, (301) 415–7233. or equal to 0.95 is acceptable. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31853

The change will not increase the Document Room, The Gelman Building, the Gelman Building, 2120 L Street probability or consequences of 2120 L Street, NW., Washington, DC, (Lower Level), NW., Washington, DC. accidents, no changes are being made in and at the local public document room Printed copies of NUREG–1607 are the types of any effluents that may be located at the Minneapolis Public available from the Superintendent of released offsite, and there is no Library, Technology and Science Documents, U.S. Government Printing significant increase in the allowable Department, 300 Nicollet Mall, Office, P. O. Box 37082, Washington, DC individual or cumulative occupational Minneapolis, Minnesota 55401. 20402–9328. radiation exposure. Accordingly, the Dated at Rockville, Maryland, this 4th day FOR FURTHER INFORMATION CONTACT: J. H. Commission concludes that there are no of June 1997. Wilson, Office of Nuclear Reactor significant radiological environmental For the Nuclear Regulatory Commission. Regulation, U.S. Nuclear Regulatory impacts associated with the proposed Beth A. Wetzel, Commission, Washington, DC 20555, action. telephone (301) 415–1108; e-mail With regard to potential Project Manager, Project Directorate III–1, Division of Reactor Projects—III/IV, Office of [email protected]. nonradiological impacts, the proposed Nuclear Reactor Regulation. Dated at Rockville, Maryland, this 2nd day action involves features located entirely [FR Doc. 97–15274 Filed 6–10–97; 8:45 am] of June, 1997. within the restricted area as defined in BILLING CODE 7590±01±P For the Nuclear Regulatory Commission. 10 CFR Part 20. It does not affect Marylee M. Slosson, nonradiological plant effluents and has Acting Director, Division of Reactor Program no other environmental impact. NUCLEAR REGULATORY Management, Office of Nuclear Reactor Accordingly, the Commission concludes COMMISSION Regulation. that there are no significant [FR Doc. 97–15275 Filed 6–10–97; 8:45 am] nonradiological environmental impacts [Project No. 697] BILLING CODE 7590±01±P associated with the proposed action. Notice of Issuance of Staff's Safety Alternatives to the Proposed Action Evaluation on DOE's Report on Since the Commission has concluded Tritium-Producing Burnable Absorber PEACE CORPS Rod Lead Test Assemblies there is no measurable environmental Information Collection Requests Under impact associated with the proposed The U.S. Department of Energy (DOE) OMB Review action, any alternatives with equal or is considering the use of commercial ACTION: Notice of public use form greater environmental impact need not light water reactors to produce tritium review request to the Office of be evaluated. As an alternative to the in order to maintain the strategic Management and Budget. proposed action, the staff considered stockpile. On December 4, 1996, as denial of the proposed action. Denial of revised on March 17, 1997, DOE SUMMARY: Pursuant to the Paperwork the application would result in no submitted a report to the U.S. Nuclear change in current environmental Reduction Act of 1981 (44 USC, Chapter Regulatory Commission (NRC) entitled, 35), the Peace Corps is requesting impacts. The environmental impacts of ‘‘Report on the Evaluation of the the proposed action and the alternative approval from the Office of Management Tritium Producing Burnable Absorber and Budget for the continued use of the action are similar. Rod Lead Test Assembly.’’ This report RPCV County Survey to be used by the Alternative Use of Resources contained information to allow the NRC World Wise Schools (WWS) program. A This action does not involve the use staff to determine whether the use of a copy of the information collection may of any resources not previously commercial light-water reactor to be obtained from Alyce P. Hill, Office of considered in the Final Environmental irradiate a limited number of tritium- World Wise Schools, Peace corps, 1990 Statement for the Prairie Island Nuclear producing burnable absorber rods K St., NW, Washington DC 20525. Ms. Generating Plant, Unit Nos. 1 and 2. (TPBARs) in lead test assemblies (LTAs) Hill may be contacted at (202) 606– requires prior NRC review and approval. 3294. The purpose of this notice is to Agencies and Persons Consulted The NRC staff has reviewed the DOE allow an additional 30 days for public In accordance with its stated policy, report and has prepared its safety comments. This process is conducted in the NRC staff consulted with the evaluation. accordance with 5 CFR Part 1320.10; the Minnesota State official, Mr. Michael The staff’s safety evaluation initial notice was published in the McCarthy of the Department of Public concludes that DOE’s proposal involves Federal Register on April 16, 1997 (pp. Services, on May 5, 1997, regarding the at least one issue requiring prior 18659), during which time no comments proposed actions. Mr. McCarthy had no Commission review and approval; were received by the agency. Peace comments. therefore, an NRC licensee seeking to Corps invites comments on whether the perform the LTA irradiation must proposed collection of information is Finding of No Significant Impact submit an amendment to its facility necessary for proper performance of the Based upon the environmental operating license prior to placing the functions of the Peace Corps, including assessment, the Commission concludes TPBAR LTAs in the reactor core. The whether the information will have that the proposed action will not have staff’s safety evaluation is being practical use; the accuracy of the a significant effect on the quality of the published as NUREG–1607, ‘‘Safety agency’s estimate of the burden of the human environment. Accordingly, the Evaluation Report Related to the proposed collection of information, Commission has determined not to Department of Energy’s Proposal for the including the validity of the prepare an environmental impact Irradiation of Lead Test Assemblies methodology and assumptions used; statement for the proposed action. Containing Tritium-Producing Burnable ways to enhance the quality, utility and For further details with respect to the Absorber Rods in Commercial Light- clarity of the information to be proposed action, see the licensee’s letter Water Reactors.’’ collected; and, ways to minimize the dated July 28, 1995, as revised February NUREG–1607 is available for public burden of the collection of information 21, 1997, which are available for public inspection and copying for a fee at the on those who are to respond, including inspection at the Commission’s Public Commission’s Public Document Room, through the use of automated collection 31854 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices techniques, when appropriate, and other by the agency. Peace Corps invites SECURITIES AND EXCHANGE forms of information technology. comments on whether the proposed COMMISSION Comments on this form should be collection of information is necessary [Release No. 34±38715; File No. SR±NASD± addressed to Victoria Becker Wassmer, for proper performance of the functions 97±37] Desk Officer, Office of Management and of the Peace Corps, including whether Budget, NEOB, Washington, DC 20503. the information will have practical use; Self-Regulatory Organizations; Notice Information Collection Abstract the accuracy of the agency’s estimate of of Filing of Proposed Rule Change by the burden of the proposed collection of National Association of Securities Title: RPCV Country Survey. information, including the validity of Dealers, Inc. in Providing an Need for and use of the Information: the methodology and assumptions used; Interpretation to NASD Conduct Rule World Wise Schools needs this ways to enhance the quality, utility and 2110 Regarding Anti-Intimidation/ information to accurately describe other Coordination Activities of Member countries and its educational materials. clarity of the information to be collected; and, ways to minimize the Firms and Persons Associated With The information collected assists WWS Member Firms and the agency in fulfilling the third burden of the collection of information goal of Peace Corps as required by on those who are to respond, including June 4, 1997. Congressional legislation and to through the use of automated collection Pursuant to Section 19(b)(1) of the enhance the Office of World Wise techniques, when appropriate, and other Securities Exchange Act of 1934 Schools global education program. forms of information technology. (‘‘Act’’),1 notice is hereby given that on Respondents: Returned Peace Corps Comments on this form should be May 7, 1997, the National Association of Volunteers (RPCVs). addressed to Victoria Becker Wassmer, Securities Dealers, Inc. (‘‘NASD‘‘ or Respondents obligation to reply: Desk Officer, Office of Management and ‘‘Association;;) filed with the Securities Voluntary. Budget, NEOB, Washington, DC 20503. and Exchange Commission (‘‘SEC’’ or Burden on the Public: ‘‘Commission’’) the proposed rule a. Annual reporting burden: 75 hrs Information Collection Abstract change as described in Items I, II, and III below, which Items have been b. Annual record keeping burden: 0 hrs Title: Teacher Brochure/Enrollment prepared by NASD Regulation, Inc. The c. Estimated average burden per Form. response: 15 min Commission is publishing this notice to d. Frequency of response: on occasion Need for and use of the Information: solicit comments on the proposed rule c. Estimated number of likely This form is completed voluntarily be change from interested persons. educators throughout the country. This respondents: 300 I. Self-Regulatory Organization’s information will be used by WWS to f. Estimated cost to respondents: $3.03 Statement of the Terms of Substance of enroll classrooms in the program and to This notice is issued in Washington, DC, the Proposed Rule Change on June 6, 1997. determine what changes need to be The NASD is proposing IM–2110–5 to Stanley D. Suyat, addressed to meet the needs of participating teachers and the Peace prohibit certain anti-competitive and Associate Director for Management. coordination conduct of member broker/ [FR Doc. 97–15219 Filed 6–10–97; 8:45 am] Corps Volunteers. Enrollment in this program also fulfills the third goal of dealers and persons associated with BILLING CODE 6051±01±M member broker/dealers. Below is the Peace Corps as required by text of the proposed rule change. Congressional legislation and to Proposed new language is in italics. PEACE CORPS enhance the Office of World Wise Schools global education program. IM–2110–5. Anti-Intimidation/ Information Collection Requests Under Respondents: Educators throughout Coordination OMB Review the public and private school systems in The Board of Governors is issuing this ACTION: Notice of public use form the United States. interpretation to codify a longstanding policy. It is conduct inconsistent with review request to the Office of Respondents obligation to reply: just and equitable principles of trade for Management and Budget. Voluntary. any member or person associated with SUMMARY: Pursuant to the Paperwork Burden on the Public: a member to coordinate the prices Reduction Act of 1981 (44 USC, Chapter a. Annual reporting burden: 833 hrs (including quotations), trades, or trade 35), the Peace Corps is requesting reports of such member with any other approval from the Office of Management b. Annual record keeping burden: 0 hrs member or person associated with a and Budget for the continued use of the c. Estimated average burden per member; to direct or request another Teacher Brochure/Enrollment Form to response: 10 min member to alter a price (including a be used by the World Wise Schools d. Frequency of response: on occasion & quotation); or to engage, directly or program. A copy of the information annually indirectly, in any conduct that collection may be obtained from Alyce threatens, harasses, coerces, P. Hill, Office of World Wise Schools, e. Estimated number of likely intimidates, or otherwise attempts Peach Corps, 1990 K St., NW, respondents: 5,000 improperly to influence another member Washington DC 20525. Ms. Hill may be f. Estimated cost of respondents: $2.02 or person associated with a member. called at (202) 606–3294. The purpose This includes, but is not limited to, any This notice is issued in Washington, DC, of this notice is to allow an additional attempt to influence another member or on June 6, 1997. 30 days for public comments. This person associated with a member to process is conducted in accordance with Stanley D. Suyat, adjust or maintain a price or quotation, 5 CFR Part 1320.10; the initial notice Associate Director for Management. whether displayed on any automated was published in the Federal Register [FR Doc. 97–15220 Filed 6–10–97; 8:45 am] system operated by The Nasdaq Stock on April 16, 1997 (pp. 18659), during BILLING CODE 6051±01±M which time no comments were received 1 15 U.S.C. § 78s(b)(1)(1988). Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31855

Market, Inc. (Nasdaq), or otherwise, or may be examined at the places specified concerted refusals to deal by market refusals to trade or other conduct that in Item IV below. The NASD has makers.’’ retaliates against or discourages the prepared summaries, set forth in To comply with NASD Undertaking competitive activities of another market Sections A, B, and C below, of the most 11, the NASD has prepared the maker or market participant. Nothing in significant aspects of such statements. following rule interpretation of NASD this interpretation respecting Conduct Rule 2110 (formerly Article III, coordination of quotes, trades, or trade A. Self-Regulatory Organization’s Section 1 of the NASD’s Rules of Fair reports shall be deemed to limit, Statement of the Purpose of, and Practice). The NASD believes that the constrain, or otherwise inhibit the Statutory Basis for, the Proposed Rule conduct described in Undertaking 11 freedom of a member or person Change already is proscribed by existing NASD associated with a member to: 1. Purpose Rule 2110, which requires members to (1) Set unilaterally its own bid and observe high standards of commercial ask in any Nasdaq security, the prices On August 8, 1996, the SEC issued an honor and just and equitable principles at which it is willing to buy or sell any Order pursuant to Section 19(h)(1) of of trade. The conduct described in the Nasdaq security, and the quantity of the Act (‘‘SEC Order’’), making certain interpretation is fundamentally shares of any Nasdaq security that it is findings about the NASD and conduct inconsistent with the obligations of willing to buy or sell; on the Nasdaq Market, and imposing member firms to their customers and is (2) Set unilaterally its own dealer remedial sanctions.2 Among other inimical to the public interest in fair spread, quote increment, or quantity of findings, the SEC determined that and efficient securities markets. shares for its quotations (or set any certain activities of Nasdaq market Although such conduct already is relationship between or among its makers had directly and indirectly prohibited, this interpretation is dealer spread, inside spread, or the size impeded price competition in the designed to address specifically certain of any quote increment) in any Nasdaq Nasdaq market. In addition, the SEC of the findings contained in the SEC security; determined that a number of Nasdaq Order and to emphasize the importance (3) Communicate its own bid or ask, market makers had coordinated placed by the NASD on the enforcement or the prices at or the quantity of shares quotations, trades and trade reports with of the prohibition. in which it is willing to buy or sell any other Nasdaq market makers for the This rule interpretation defines as Nasdaq security to any person, for the purpose of advancing or protecting the conduct inconsistent with just and purpose of exploring the possibility of a market maker’s proprietary trading equitable principles of trade certain purchase or sale of that security, and to interests. Based on the SEC’s specific conduct by and among members firms, negotiate for or agree to such purchase findings of certain anti-competitive and sets forth specific exclusions or sale; behavior of Nasdaq market makers in (numbered 1 through 7) which identify (4) Communicate its own bid or ask, the Nasdaq Stock Market, the NASD bona fide commercial activities by and or the price at or the quantity of shares agreed to certain undertakings. In among member firms. The interpretation in which it is willing to buy or sell any particular, Undertaking 11 requires the identifies three general areas of conduct Nasdaq security, to any person for the NASD ‘‘[t]o propose a rule or rule that are prohibited. The first part of the purpose of retaining such person as an interpretation for Commission approval interpretation prohibits coordinating agent or subagent for the member or for which expressly makes unlawful the activities by member firms involving a customer of the member (or for the coordination by or among market quotations, prices, trades and trade purpose of seeking to be retained as an makers of their quotes, trades and trade reporting. Conduct covered by this agent or subagent), and to negotiate for reports, and which prohibits retribution prohibition would include, but not be limited to agreements to report trades or agree to such purchase or sale; or retaliatory conduct for competitive late or inaccurately, or to agree to (5) Engage in any underwriting (or any actions of another market maker or other maintain certain minimum spreads or syndicate for the underwriting) of market participant.’’ Undertaking 12 quote sizes above the legal minimums. securities to the extent permitted by the requires the NASD ‘‘[t]o enforce Article federal securities laws; The second part of the interpretation III, Section 1 of the NASD Rules of Fair prohibits ‘‘directing or requesting’’ (6) Take any unilateral action or make Practice (currently NASD Conduct Rule any unilateral decision regarding the another member to alter prices or 2110), with a view to enhancing market quotations. This would include market makers with which it will trade maker competitiveness by: (a) Acting to and the terms on which it will trade situations in which a market maker eliminate anti-competitive or unlawful requests another market maker to move unless such action is prohibited by the enforced or maintained industry pricing second and third sentences of this or adjust its displayed quotations to conventions, and to discipline market accommodate the requesting market Interpretation; and makers who harass other market makers (7) Deliver an order to another maker. This prohibition does not extend for narrowing the displayed quotations member for handling, provided, to activity, identified in exclusion in the Nasdaq market, trading not more however, that the conducted described number 7, that permits a member to than the quantities of securities they are in (1) through (7) is otherwise in route customer orders to market makers required to trade under the NASD’s compliance with all applicable law. for handling or a correspondent firm of rules, or otherwise engaging in the member to ask a market maker to II. Self-Regulatory Organization’s competitive conduct; (b) acting to represent an order in the market maker’s Statement of the Purpose of, and eliminate coordination between or quote. Statutory Basis for, the Proposed Rule among market makers or quotes, trades The third part of the interpretation Change and trade reports; and (c) acting to relates to conduct that threatens, In its filing with the Commission, the eliminate concerted discrimination and harasses, coerces, intimidates or NASD included statements concerning otherwise attempts improperly to the purpose of and basis for the 2 See Securities Exchange Act Release No. 37538 influence another member in a manner (August 8, 1996), SEC’s Order Instituting Public proposed rule change and discussed any Proceedings Pursuant to Section 19(h)(1) of the that interferes with or impedes the comments it received on the proposed Securities Exchange Act of 1934, Making Findings forces of competition among member rule change. The text of these statements and Imposing Remedial Sanctions. firms in the Nasdaq Stock Market. This 31856 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices part of the prohibition is intended to organization consents,4 the Commission SECURITIES AND EXCHANGE reach conduct that goes beyond will: COMMISSION legitimate bargaining among member A. By order approve such proposed [Release No. 34±38720; File No. SR±NASD± firms. This conduct may include, among rule change, or 97±26] other things, refusals to trade, improper systems messages, trading in odd lots, B. Institute proceedings to determine Self-Regulatory Organizations; Notice and other conduct intended to influence whether the proposed rule change of Extension of the Comment Period a member to engage in improper market should be disapproved. for the Proposed Rule Change by the activity or refrain from legitimate IV. Solicitation of Comments National Association of Securities market activity. However, as identified Dealers, Inc., Relating to an Expansion in exclusion number 6, this language Interested persons are invited to of the Pilot for the NASD's Rule would not prohibit a member from submit written data, views, and Permitting Market Makers To Display taking unilateral action in selecting with arguments concerning the foregoing. Their Actual Quotation Size whom to trade and under what terms, Persons making written submissions June 5, 1997. based on legitimate market and should file six copies thereof with the commercial criteria (e.g., credit On April 11, 1997, the National Secretary, Securities and Exchange Association of Securities Dealers, Inc. exposure). Commission, 450 Fifth Street, N.W., In addition, this interpretation does (‘‘NASD’’ or ‘‘Association’’) filed with Washington, D.C. 20549. Copies of the not prohibit a market maker from the Securities and Exchange submission, all subsequent contracting another market maker in a Commission (‘‘Commission’’ or ‘‘SEC’’) amendments, all written statements locked or crossed market situation to a proposed change to NASD Rule attempt to unlock or uncross the market. with respect to the proposed rule 4613(a)(1)(C). The proposal would allow Moreover, the overall prohibition change that are filed with the market makers to quote their actual size applies to primary market as well as Commission, and all written by reducing the minimum quotation secondary trading activities. communications relating to the size requirement for market makers in proposed rule change between the certain securities listed on The Nasdaq 2. Statutory Basis Commission and any person, other than Stock Market (‘‘Nasdaq’’) to one normal The NASD believes that the proposed those that may be withheld from the unit of trading (‘‘Actual Size Rule’’). The rule change is consistent with the public in accordance with the Actual Size Rule presently applies to a provisions of Section 15A(b)(6) of the provisions of 5 U.S.C. 552, will be group of fifty Nasdaq securities on a Act 3 in that regulating the conduct of available for inspection and copying in pilot basis.1 The NASD has proposed to member broker/dealers and persons the Commission’s Public Reference extend this pilot program to December associated with member broker/dealers Room. Copies of such filing will also be 1997 and to add an additional 100 by prohibiting anti-competitive conduct available for inspection and copying at stocks to the pilot program. The Commission has already received is in furtherance of the requirements the principal office of the NASD. All comments from many individual that the Association’s rules to promote submissions should refer to the file just and equitable principles of trade, investors and other market participants number in the caption above and should on the ongoing pilot. prevent fraudulent and manipulative be submitted by July 2, 1997. acts and practices, and to protect On June 3, 1997, the NASD filed with investors and the public interest. For the Commission, by the Division of the Commission a revised report Market Regulation, pursuant to delegated containing its economic analysis of the B. Self-Regulatory Organization’s authority.5 operation of the Actual Size Rule for the Statement on Burden on Competition Margaret H. McFarland, group of 50 stocks in the pilot, as 2 The NASD does not believe that the Deputy Secretary. requested by the Commission. The study examines the effects of the proposed rule change will result in any [FR Doc. 97–15170 Filed 6–10–97; 8:45 am] burden on competition that is not removal of the 1,000-Share Quote Size necessary or appropriate in furtherance BILLING CODE 8010±01±M Rule on market quality. of the purposes of the Act, as amended. The NASD’s study compares the market quality of pilot stocks with the C. Self-Regulatory Organization’s market quality of peer stocks in the next Statement on Comments on the tranche of stocks that became subject to Proposed Rule Change Received From the Order Handling Rules, but remained Members, Participants, or Others subject to the 1,000-Share Quote Size Written comments were neither Rule. The study: (1) Summarizes the solicited nor received. relevant academic literature; (2) empirically assesses market quality for III. Date of Effectiveness of the both groups pre- and post-rule change Proposed Rule Change and Timing for by examining spread, volatility, depth, Commission Action Within 35 days of the date of 1 The approval of the pilot program was publication of this notice in the Federal announced in Securities Exchange Act Release No. Register or within such longer period (i) 38156 (January 10, 1997), 62 FR 2415 (January 16, 1997). The approval of the extension was as the Commission may designate up to 4 The NASD has requested that the Commission find good cause pursuant to Section 19(b)(2) for announced in Securities Exchange Act Release No. 90 days of such date if it finds such 38156 (April 15, 1997), 62 FR 19373 (April 21, approving the proposed rule change prior to the 1997). longer period to be appropriate and 30th day after its publication in the Federal publishes its reasons for so finding or 2 A copy of the executive summary of the report Register. The NASD believes that the conduct is available at Nasdaq’s World Wide Web site at (ii) as to which the self-regulatory described in the proposed rule change is already ‘‘http://www.nasdaq.com’’. Members of the public proscribed by existing NASD Rule 2110. may also download a file containing the entire 3 15 U.S.C. § 78o–3. 5 17 CFR 200.30–3(a)(12) (1996). report at this site. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31857 and liquidity; and (3) examines the use Margaret H. McFarland, specialists.1 The Exchange is now of automatic execution systems for the Deputy Secretary. proposing to extend the pilot program pilot stocks, Nasdaq’s Small Order [FR Doc. 97–15331 Filed 6–6–97; 4:08 pm] for an additional six month period, until Execution System (‘‘SOES’’), and some BILLING CODE 8010±01±U January 1, 1998. The reason for the private systems to assess whether extension is that the Exchange needs investors continue to have reasonable more time to evaluate the impact of the access to market maker capital. SECURITIES AND EXCHANGE SEC’s new order handling rules 2 on the COMMISSION performance criteria. During the The NASD asserts that the evidence extension of the pilot, the Exchange will analyzed in the study reveals that the [Release No. 34±38712; File No. SR±PCX± 97±19] determine an organization overall pilot stocks and non-pilot stocks have passing score and individual passing experienced virtually the same June 3, 1997. scores for each criterion used in the improvements in market quality since pilot program. In addition, the Exchange implementation of the SEC’s Order Self-Regulatory Organizations; Notice proposes to implement for use in the Handling Rules. Specifically, the NASD of Filing of Proposed Rule Change by evaluation program, beginning with the says that it found no statistically the Pacific Exchange, Inc., Relating to third quarter review period of 1997 (i.e., significant basis to conclude that the Its Specialist Evaluation Program July 1, 1997 to September 30, 1997), market quality of the pilot stocks has Pursuant to Section 19(b)(1) of the certain programming changes requested been affected as a result of removal of Securities Exchange Act of 1934 by the Commission in its October 1, the 1,000-Share Quote Size Rule. In (‘‘Act’’), 15 U.S.C. 78s(b)(1), notice is 1996 order approving the pilot program. addition, the NASD found that investors hereby given that on May 29, 1997, the Specifically, the Commission requested in the pilot stocks continue to have Pacific Exchange, Inc. (‘‘PCX’’ or that the Exchange reprogram its systems substantial and reasonable access to ‘‘Exchange’’) filed with the Securities so that the following criteria are market maker capital through both and Exchange Commission calculated using the NBBO instead of SOES and market makers’ proprietary (‘‘Commission’’) the proposed rule the primary market quote: Trading automatic execution systems. change as described in Items I, II, and Between the Quote, Book Display Time, III below, which Items have been and Quote Performance (Equal or Better In order to give the public additional Quote Performance and Better Quote time to comment on this analysis, the prepared by the self-regulatory organization. The Commission is Performance). The description of these comment period for the NASD’s current performance criteria will be modified as proposal has been extended at the publishing this notice to solicit comments on the proposed rule change follows: Commission’s request to July 3, 1997. A from interested persons. 3 copy of the report is available in the a. Trading Between the Quote Commission’s Public Reference room in I. Self-Regulatory Organization’s ‘‘Trading Between the Quote’’ File No. SR–NASD–97–26. Statement of the Terms of Substance of currently measures the number of market and marketable limit orders that Interested persons are invited to the Propose Rule Change are executed between the best primary submit written data, views, and The PCX is proposing to extend its market bid and offer. For this criterion arguments concerning the foregoing. pilot program regarding the evaluation of its equity specialists until January 1, Persons making written submissions 1 Prior to the adoption of the pilot program, PCX should file six copies thereof with the 1998. In addition, the Exchange is Rule 5.37(a) provided that the Exchange’s Equity Jonathan G. Katz, Secretary, Securities proposing to implement certain changes Allocation Committee (‘‘EAC’’) evaluate all and Exchange Commission, 450 Fifth to the pilot program. registered specialists on a quarterly basis and that each specialist receive an overall evaluation rating Street, NW., Washington, DC 20549. Self-Regulatory Organizations based on three criteria of specialist performance: (1) Copies of the submission, all subsequent Statement of the Purpose of, and Specialist Evaluation Questionnaire Survey amendments, all written statements (‘‘Questionnaire’’); (2) SCOREX Limit Order Statutory Basis for, the Proposed Rule Acceptance Performance; and (3) National Market with respect to the proposed rule Change System Quote Performance. The pilot program change that are filed with the modifies Rule 5.37(a) by adding three new criteria In its filing with the Commission, the Commission, and all written of performance and eliminating one performance self-regulatory organization included criterion. The new criteria are: (1) Executions (itself communications relating to the statements concerning the purpose of consisting of four criteria; (a) Turnaround Time; (b) proposed rule change between the and basis for the proposed rule change Holding Orders Without Action; (c) Trading Between the Quote; and (d) Executions in Size Commission and any person, other than and discussed any comments it receive those that may be withheld from the Greater Than BBO); (2) Book Display Time; and (3) don the proposed rule change. The text Post-1 p.m. Parameters. The SCOREX Limit Order public in accordance with the of these statements may be examined at Acceptance Performance criterion has been provisions of 5 U.S.C. 552, will be the places specified in Item IV below. eliminated. The pilot also adds more questions to available for inspection and copying in the Questionnaire and expands the National Market The self-regulatory organization has System Quote Performance criterion (renamed the Commission’s Public Reference prepared summaries, set forth in Quote Performance under the pilot) to include Room. Copies of such filing will also be Sections A, B, and C below, of the most within it a submeasure for bettering the quote. For available for inspection and copying at significant aspects of such statements. a more detailed description of the performance the principal office of the NASD. All criteria utilized in the PCX’s pilot program, see A. Self-Regulatory Organization’s Securities Exchange Act Release No. 37770 (October submissions should refer to file number 1, 1996), 61 FR 52820 (October 8, 1996) (File No. SR–NASD–97–26 and should be Statement of the Purpose of, and SR–PSE–96–28). See generally PCX Rule 5.37 submitted by July 3, 1997. Statutory Basis for, the Proposed Rule (description of the standards and procedures Change applicable to the EAC’s evaluation of specialists). For the Commission, by the Division of 2 See Securities Exchange Act Release No. Market Regulation, pursuant to delegated 1. Purpose 37619A (September 6, 1996), 61 FR 48290 authority.3 (September 12, 1996) (File No. S7–30–95). On October 1, 1996, the Commission 3 ‘‘Trading Between the Quote’’ is one of the four approved a nine-month pilot program criteria which together constitute ‘‘Executions’’ 3 17 CFR 200.30–3(a)(12) (1989). for the evaluation of PCX equity criterion. See supra note 1. 31858 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices to count toward the overall evaluation Equal or Better Quote Performance Commission may designate up to 90 score, ten orders or more must have calculates for each issue traded, the days of such date if it finds such longer been executed during the quarter in percentage of time in which a period to be appropriate and publishes which the specialist is being evaluated. specialist’s bid or offer is equal to or its reasons for so finding or (ii) as to If less than ten orders are executed, this better than the primary market quote which the self-regulatory organization criterion will not be counted and the with a 500 share market size or the consents, the Commission will: rest of the evaluation criteria will be primary market size, whichever is less, (A) by order approve the proposed given more weight. with a 200 share minimum. rule change, or When a market or marketable limit Better Quote Performance calculates (B) institute proceedings to determine order is executed, the execution price is for each issue traded, the percentage of whether the proposed rule change compared to the primary market bid and time in which a specialist’s bid or offer should be disapproved. offer. The specialist will be awarded is better than the primary market quote IV. Solicitation of Comments points based on the percentage of orders with a 500 share market size or the the specialist receives that are executed primary market size, whichever is less, Interested persons are invited to between the primary market bid and with a 200 share minimum. submit written data, views, and offer. If the execution price falls The Exchange is proposing to arguments concerning the foregoing. between the primary market bid and continue using this criterion, but to Persons making written submissions offer, the trade is counted as one that replace references to the ‘‘primary should file six copies thereof with the traded between the quote at the time of market bid and offer’’ with references to Secretary, Securities and Exchange execution. Each time a trade is the ‘‘NBBO.’’ Commission, 450 Fifth Street, N.W., executed, the primary market quote will Further, the Commission has Washington, D.C. 20549. Copies of the be noted. If the spread of that quote is requested that the Exchange file a report submission, all subsequent two or more trading fractions apart, that regarding the Exchange’s experience amendments, all written statements trade will count as one eligible for the with the pilot. with respect to the proposed rule comparison of the execution price to the This report has been filed with the change that are filed with the quote. Commission under separate cover. In Commission, and all written The Exchange is now proposing to addition, the Exchange will submit a communications relating to the continue using this criterion, but to proposed rule change with the proposed rule change between the replace references to the ‘‘primary Commission pursuant to Rule 19b–4 Commission and any person, other than market bid and offer’’ with references to under the Act 4 by November 15, 1997, those that may be withheld from the the ‘‘NBBO.’’ that will specify an overall passing score public in accordance with the b. Book Display Time for the performance evaluation and provisions of 5 U.S.C. 552, will be individual passing scores for each available for inspection and copying at This criterion calculates the criterion, as well as a request to further the Commission’s Public Reference percentage of book shares at the best extend the pilot beyond January 1, 1998. Section, 450 Fifth Street, N.W., price in the book that is displayed in the Washington, D.C. 20549. Copies of such 2. Statutory Basis specialist’s quote, by symbol, and the filing will also be available for duration of time that each percentage is The proposed rule change is inspection and copying at the principal in effect. This criterion rates the P/ consistent with Section 6(b)(5) of the office of the Exchange. All submissions COAST book displayed 100% of the Act 5 in that it is designed to prevent should refer to File No. SR–PCX–97–19 time. The sizes of all open buy limit fraudulent and manipulative acts and and should be submitted by July 2, orders at the best price for the symbol practices and to perfect the mechanism 1997. in the specialist’s book are totaled and of a free and open market. compared to the bid size quote. The For the Commission, by the Division of sizes of all open sell limit orders at the B. Self-Regulatory Organization’s Market Regulation, pursuant to delegated authority. best price for the symbol in the book are Statement on Burden on Competition Margaret H. McFarland, totaled and compared to the offer size The Exchange does not believe that quote. This will be done for each the proposed rule change will impose Deputy Secretary. symbol traded by the specialist, but only any burden on competition that is not [FR Doc. 97–15255 Filed 6–10–97; 8:45 am] for those orders within the primary necessary or appropriate in furtherance BILLING CODE 8010±01±M market quote. Limit orders in the book of the purposes of the Act. that were priced beyond the primary market quote will not be included; they C. Self-Regulatory Organization’s SMALL BUSINESS ADMINISTRATION will not be executed until they reach the Statement on Comments on the price in the primary market quote, so Proposed Rule Change Received From Members, Participants, or Others Reporting and Recordkeeping the specialist should not be required to Requirements Under OMB Review cover them in his (her) quote sizes. Written comments on the proposed The Exchange is now proposing to rule change were neither solicited nor ACTION: Notice of reporting requirements continue using this criterion, but to received. submitted for review. replace references to the ‘‘primary market bid and offer’’ to references to III. Date of Effectiveness of the SUMMARY: Under the provisions of the the ‘‘NBBO.’’ Proposed Rule Change and Timing for Paperwork Reduction Act (44 U.S.C. Commission Action Chapter 35), agencies are required to c. Quote Performance Within 35 days of the publication of submit proposed reporting and This criterion, on which 10% of each this notice in the Federal Register or recordkeeping requirements to OMB for specialist evaluation is based, consists within such longer period (i) as the review and approval, and to publish a of two submeasures: (a) Equal or Better notice in the Federal Register notifying Quote Performance; and (b) Better Quote 4 17 CFR 240.19b–4. the public that the agency has made Performance. 5 15 U.S.C. 78f(b)(5). such a submission. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31859

DATES: Comments should be submitted FOR FURTHER INFORMATION CONTACT: DEPARTMENT OF TRANSPORTATION on or before July 11, 1997. If you intend Richard Weaver, MARAD Clearance to comment but cannot prepare Officer, (202) 366–2811, and refer to the Federal Aviation Administration comments promptly, please advise the OMB Control Number. OMB Reviewer and the Agency Proposed Advisory Circulars for Clearance Officer before the deadline. SUPPLEMENTARY INFORMATION: Airport Lighting COPIES: Request for clearance (OMB 83– Maritime Administration AGENCY: Federal Aviation 1), supporting statement, and other Administration. Title: Monthly Report of Ocean documents submitted to OMB for ACTION: Notice of availability, proposed review may be obtained from the Shipments Moving Under Export-Import advisory circulars. Agency Clearance Officer. Submit Bank Financing. comments to the Agency Clearance Type of Request: Extension of a SUMMARY: The Federal Aviation Officer and the OMB Reviewer. currently approved information Administration (FAA) announces (1) the collection. availability of proposed Advisory FOR FURTHER INFORMATION CONTACT: Circular (AC) 150/5340–28, Low OMB Control Number: 2133–0013. Agency Clearance Officer: Jacqueline Visibility Taxiway Lighting Systems, White, Small Business Administration, Affected Entities: Export-Import Bank which provides standards for the 409 3rd Street, S.W., 5th Floor, Financed Foreign Borrowers. design, installation and maintenance of Washington, D.C. 20416, Telephone: Abstract: Title 46 App. U.S.C. 1241– taxiway centerline lights, stop bars, runway guard lights, and clearance bars, (202) 205–6629. 1, Public Resolution 17, 73rd Congress (2) the proposed cancellation of AC 150/ OMB Reviewer: Victoria Wassmer, (PR 17), requires the MARAD to monitor 5340–19, Taxiway Centerline Lighting Office of Information and Regulatory and enforce the U.S.-flag shipping System, (3) the availability of AC 150/ Affairs, Office of Management and requirements relative to the loans/ Budget, New Executive Office Building, 5345–3E, FAA Specification for L–821, guarantees extended by the Export- for Control of Airport Lighting, this Washington, D.C. 20503. Import Bank (Eximbank) to foreign Title: Request for Management and circular has been rewritten to include borrowers. PR 17 requires that all control panels for stop bar lighting Technical Assistance. shipments financed by Eximbank and Form No: SBA Form 641B. systems and for land and hold short that move by sea, must be transported lighting systems, (4) the proposed Frequency: On Occasion. exclusively on U.S.-flag registered Description of Respondents: cancellation of AC 150/5345–3D, vessels unless a waiver is obtained from Specification for L–821 Panels for Individuals Interested in Using the BIC. MARAD. Annual Responses: 60,000. Remote Control of Airport Lighting, (5) Annual Burden: 12,000. Need and Use of the Information: The the availability of AC 150/5345–46B, prescribed monthly report is necessary Specification for Runway and Taxiway Dated: June 5, 1997. for MARAD to fulfill its responsibilities Light Fixtures, which includes new Jacqueline White, under PR 17, to ensure compliance of specifications for stop bar and runway Chief, Administrative Information Branch. ocean shipping requirements operating guard light fixtures, updates the [FR Doc. 97–15268 Filed 6–10–97; 8:45 am] under Eximbank financing and to classification of lighting fixtures, BILLING CODE 8025±01±P ensure equitable distribution of photometric requirements, chromaticity shipments between U.S. flag and foreign requirements, and applicable ships. MARAD will use this information documents and document sources. In DEPARTMENT OF TRANSPORTATION to report annually to Congress, the total addition, instruction manuals have been shipping activities during the calendar made mandatory and a new option for Office of the Secretary year. an automatic lampchanger has been added, and (6) the proposed Reports, Forms and Recordkeeping Annual Responses: 336. cancellation of AC 150/5345–46A, Requirements; Agency Information Estimated Annual Burden: 168 hours. Specification for Runway and Taxiway Collection Activity Under OMB Review Comments: Send all comments Light Fixtures. Paper copies of these AGENCY: Office of the Secretary, DOT. regarding whether this information documents may be obtained by contacting the address shown below. ACTION: Notice. collection is necessary for proper performance of the function of the Electronic copies of these documents SUMMARY: In compliance with the agency and will have practical utility, are available over the Internet at Paperwork Reduction Act of 1995 (44 accuracy of the burden estimates, ways www.faa.gov/arp/draftacs.htm. U.S.C. 3501 et seq.), this notice to minimize this burden, and ways to DATES: Comments must be received by announces that the Information enhance quality, utility, and clarity of July 25, 1997. Collection Request (ICR) abstracted the information to be collected to the ADDRESSES: Comments should be sent to below has been forwarded to the Office Office of Information and Regulatory the Federal Aviation Administration, of Management and Budget (OMB) for Affairs, Office of Management and Engineering and Specifications Division review and comment. The ICR describes Budget, 725–17th Street, NW., (AAS–200), 800 Independence Ave., the nature of the information collection Washington, DC 20503, Attention DOT S.W., Washington, DC 20591. and its expected burden. The Federal Desk Officer. FOR FURTHER INFORMATION CONTACT: Register Notice with a 60-day comment John L. Rice, AAS–200, at (202) 267– period soliciting comments on the Issued in Washington, DC, on June 6, 1997. 8745. following collection of information was Vanester M. Williams, Raymond T. Uhl, published in 62 FR 14718–14719, March Clearance Officer, United States Department Deputy Director, Office of Airport Safety and 27, 1997. of Transportation. Standards, AAS–2. DATES: Comments must be submitted on [FR Doc. 97–15304 Filed 6–10–97; 8:45 am] [FR Doc. 97–15305 Filed 6–10–97; 8:45 am] or before July 11, 1997. BILLING CODE 4910±62±P BILLING CODE 4910±13±M 31860 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF TRANSPORTATION Governmental and Public Agency The following master planning scoping meeting. development concepts and the No Federal Aviation Administration Action Alternative are proposed to be SUMMARY: The Federal Aviation evaluated in the EIR/EIS as described Advisory Circular 20±128A, Design Administration (FAA) is issuing this below: Considerations for Minimizing Hazards notice to advise the public that an Caused by Uncontained Turbine Environmental Impact Statement will be Concept 1 Engine and Auxiliary Power Unit Rotor prepared for development • Construction of a new 6,000 foot Failure recommended by the Master Plan for long runway along the northern border Los Angeles International Airport, Los of the airport. AGENCY: Federal Aviation Angeles, California. To ensure that all • Relocation to the south and Administration, DOT. significant issues related to the extension of Runways 6L/24R and 6R/ ACTION: Notice of issuance of advisory proposed action are identified, three (3) 24L to lengths of 10,000 and 12,000 feet circular. public scoping meetings and one (1) respectively. governmental and public agency • Relocation to the south and SUMMARY: This notice announces the scoping meeting will be held. extension of Runway 7R/25L to 12,000 issuance of Advisory Circular (AC) 20– FOR FURTHER INFORMATION CONTACT: feet in length. 128A, Design Considerations for David B. Kessler, AICP, Environmental • Terminal Building Expansion and Minimizing Hazards Caused by Protection Specialist, AWP–611.2, associated terminal area improvements Uncontained Turbine Engine and Planning Section, Airports Division, including adding 100 narrow body Auxiliary Power Unit Rotor Failure. Federal Aviation Administration, equivalent aircraft gates. This AC sets forth a method of Western-Pacific Region, P.O. Box 92007, • Reduction of the ancillary facilities compliance with the requirements of the World Way Postal Center, Los Angeles, area to approximately 228 acres and Federal Aviation Regulations pertaining California 90009–2007, Telephone: 310/ relocating the fuel farm to an on-airport to design precautions taken to minimize 725–3615. Comments on the scope of site located at Imperial Highway and the hazards to an airplane in the event the EIS should be submitted to the Sepulveda Boulevard. • of uncontained engine or auxiliary address above and must be received no Expansion of air cargo space to power unit (APU) rotor failures. The later than Thursday, July 31, 1997. approximately 4.8 million square feet. guidance provided within this AC is • Acquisition of approximately 220 SUPPLEMENTARY INFORMATION: The harmonized with that of the European acres of land. Federal Aviation Administration (FAA) Joint Aviation Authorities (JAA) and is in cooperation with the city of Los Concept 2 intended to provide a method of Angeles, California, will prepare an compliance that has been found • Construction of a new 6,000 foot Environmental Impact Statement for acceptable. long runway along the northern border future development recommended by of the airport. DATES: Advisory Circular 20–128A was the Master Plan for Los Angeles • Relocation to the east and extension issued by the Manager, Aircraft International Airport (LAX). The need to of Runways 6L/24R and 6R/24L to Engineering Division, AIR–100, on prepare an Environmental Impact lengths of 10,000 and 12,000 feet, March 25, 1997. Statement (EIS) is based on the respectively. HOW TO OBTAIN COPIES: A copy may be procedures described in FAA Order • Relocation to the south and obtained by writing to the U.S. 5050.4A, Airport Environmental extension of Runway 7R/25L to 12,000 Department of Transportation, Handbook. LAX is a commercial service feet in length. Subsequent Distribution Office, DOT airport located within a standard • Construction of a new 6,000 foot Warehouse, SVC–121.23, 3341Q 75th metropolitan statistical area and the long runway along the southeastern Avenue, Landover, MD 20785, or faxing proposed development includes border of the airport. your request to that office at 301–5394. construction of new runway(s) capable • Terminal Building Expansion and of accommodating air carrier aircraft Issued in Renton, Washington, on June 3, associated terminal area improvements 1997. requiring FAA approval of the Airport including adding approximately 131 Layout Plan, the area around the airport Darrell M. Pederson, narrow body equivalent aircraft gates. contains non-compatible land uses in • Reduction of ancillary facilities area Acting Manager, Transport Airplane terms of aircraft noise; and the proposed Directorate, Aircraft Certification Service, to approximately 228 acres and ANM–100. development is likely to be relocating the fuel farm to an off-airport controversial. [FR Doc. 97–15310 Filed 6–10–97; 8:45 am] site away from residential land uses. The city of Los Angeles, pursuant to • BILLING CODE 4910±13±M Expansion of air cargo space to the California Environmental Quality approximately 4.7 million square feet. Act of 1970 (CEQA) will also prepare an • Acquisition of approximately 446 DEPARTMENT OF TRANSPORTATION Environmental Impact Report (EIR) for acres of land. the proposed development. In an effort Federal Aviation Administration to eliminate unnecessary duplication Concept 3 and reduce delay, the document to be • Construction of a new 6,000 foot Intent To Prepare an Environmental prepared, will be a joint EIR/EIS in long runway along the northwestern Impact Statement and Hold Scoping accordance with the President’s Council border of the airport into the LAX Meetings for Los Angeles International on Environmental Quality Regulations dunes/preserve area. Airport, Los Angeles, California described in 40 Code of Federal • Relocation to the east and extension Regulations §§ 1500.5 and 1506.2. of Runway 6L/24R to a length of 10,000 AGENCY: Federal Aviation The Joint Lead Agencies for the feet. Administration. preparation of the EIR/EIS will be the • Relocation to the south and ACTION: Notice to hold three (3) public Federal Aviation Administration and extension of Runway 6R/24L to a length scoping meetings and one (1) the city of Los Angeles, California. of 12,000 feet. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31861

• Relocation to the south and concerning the scope of the EIS/EIR may Regulations (14 CFR Chapter I), extension of Runway 7R/25L to 12,000 be mailed to the FAA informational dispositions of certain petitions feet in length. contact listed above and must be previously received, and corrections. • Construction of a new 6,000 foot received no later than Thursday, July The purpose of this notice is to improve long runway along the southeastern 31, 1997. the public’s awareness of, and border of the airport. Public Scoping Meetings participation in, this aspect of FAA’s • Terminal Building Expansion and regulatory activities. Neither publication associated terminal area improvements The FAA will hold three (3) public of this notice nor the inclusion or including adding approximately 131 and one (1) governmental agency omission of information in the summary narrow body equivalent aircraft gates. scoping meetings to solicit input from is intended to affect the legal status of • Reduction of ancillary facilities area the public and various Federal, State any petition or its final disposition. and local agencies which have to approximately 228 acres and DATES: Comments on petition received jurisdiction by law or have specific relocating the fuel farm to an off-airport must identify the petition docket expertise with respect to any site away from residential land uses. number involved and must be received • environmental impacts associated with Expansion of air cargo space to on or before June 30, 1997. approximately 4.7 million square feet. the proposed projects. The first two • Acquisition of approximately 400 public scoping meetings will be held on ADDRESSES: Send comments on any acres of land. Saturday, July 12, 1997, at the Proud petition in triplicate to: Federal Bird Restaurant, 11022 Aviation Aviation Administration, Office of the Concept 4 Boulevard, Los Angeles, California Chief Counsel, Attn: Rule Docket (AGC– llll • Realignment and extension of the 90045. The first meeting will be held 200), Petition Docket No. , 800 existing runway at Jack Northrop Field/ from 8:00 am to 12:30 p.m. Pacific Independence Avenue, SW., Hawthorne Municipal Airport to 6,000 Daylight Time (PDT). The second Washington, D.C. 20591. feet in length to accommodate meeting will be held beginning at 2:00 Comments may also be sent commuter aircraft operations. p.m. to 7:00 p.m. (PDT). The third electronically to the following internet • Relocation to the south and public scoping meeting will be held on address: 9–NPRM–[email protected]. extension of Runway 6L/24R to a length Tuesday, July 15, 1997, from 5:00 p.m. The petition, any comment received, of 10,000 feet. to 9:00 p.m. (PDT) at the Hawthorne and a copy of any final disposition are • Relocation to the south and Memorial Center, 3901 El Segundo filed in the assigned regulatory docket extension of Runway 6R/24L to a length Boulevard, Hawthorne, California and are available for examination in the of 12,000 feet. 90250. A scoping meeting will be held Rules Docket (AGC–200), Room 915G, • Terminal Building Expansion and specifically for governmental and public FAA Headquarters Building (FOB 10A), associated terminal area improvements agencies on Wednesday, July 16, 1997, 800 Independence Avenue, SW., including adding approximately 131 from 9:00 a.m. to 5:00 p.m. (PDT) in the Washington, D.C. 20591; telephone narrow body equivalent aircraft gates. Board Room of the Los Angeles (202) 267–3132. • Reduction of the ancillary facilities Department of Airports Building, Los FOR FURTHER INFORMATION CONTACT: area to approximately 228 acres and Angeles International Airport, 1 World Heather Thorson (202) 267–7470 or relocating the fuel farm to an on-airport Way, Los Angeles, California 90009. Angela Anderson (202) 267–9681 Office site located at Imperial Highway and Issued in Hawthorne, California, on of Rulemaking (ARM–1), Federal Sepulveda Boulevard. Aviation Administration, 800 • Monday, June 4, 1997. Expansion of air cargo space to Herman C. Bliss, Independence Avenue, SW., approximately 4.8 million square feet. Washington, DC 20591. • Acquisition of approximately 500 Manager, Airports Division, Western-Pacific Region, AWP–600. This notice is published pursuant to acres of land. [FR Doc. 97–15306 Filed 6–10–97; 8:45 am] paragraphs (c), (e), and (g) of § 11.27 of Part 11 of the Federal Aviation No Action Alternative BILLING CODE 4910±13±M Regulations (14 CFR part 11). • This alternative does not include any projects that would increase the Issued in Washington, DC, on June 4, 1997. DEPARTMENT OF TRANSPORTATION airport’s passenger or airfield capacity, Michael E. Chase, Acting Assistant Chief Counsel for but does include the following minor Federal Aviation Administration development items: Regulations. • Extension and minor improvements [Summary Notice No. PE±97±31] Dispositions of Petitions to existing taxiways. • Remodeling and minor expansion Petitions for Exemption; Summary of Docket No.: 26919. of the existing Tom Bradley Petitions Received; Dispositions of Petitioner: Kalamazo Aviation History International Terminal. Petitions Issued Museum. Sections of the FAR Affected: 14 CFR • Construction of additional remote AGENCY: Federal Aviation 45.25 and 45.29. gates/aircraft ramp area on the west side Administration (FAA), DOT. Description of Relief Sought/ of the airport. ACTION: Notice of petitions for • Minor expansion of public parking Disposition: To permit the petitioner to exemption received and of dispositions operate its Ford Tri-motor, Model No. lots. of prior petitions. • Minor expansion of air cargo space. 5–AT–C, Serial No. 58, with 3 inch-high Comments and suggestions are invited SUMMARY: Pursuant to FAA’s rulemaking nationally and registration marks from Federal, State and local agencies, provisions governing the application, located on each side of the fuselage and other interested parties to ensure processing, and disposition of petitions under the leading edge of the horizontal that the full range of issues related to for exemption (14 CFR Part 11), this stabilizer. Grant, May 20, 1997, these proposed projects are addressed notice contains a summary of certain Exemption No. 5519B. and all significant issues are identified. petitions seeking relief from specified Docket No.: 28094. Written comments and suggestions requirements of the Federal Aviation Petitioner: American Trans Air. 31862 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

Sections of the FAR Affected: 14 CFR State Airport, 2000 Post Road, Warwick, application in person in the Rhode 121.433 (c)(1)(iii), 121.441(a)(1) and Rhode Island, 02886. Island Aviation Corporation, 2000 Post (b)(1) and appendix F to part 121. Air carriers and foreign air carriers Road, Warwick, Rhode Island. Description of Relief Sought/ may submit copies of written comments Issued in Burlington, Massachusetts, on Disposition: To permit the petitioner to previously provided to the Connecticut June 4, 1997. combine recurrent flight and ground Department of Transportation under Bradely A. Davis, training and proficiency checks for section 158.23 of Part 158 of the Federal Assistant Manager, Airports Division, New ATA’s flight crewmembers in a single Aviation Regulations. England Region. annual training and proficiency FOR FURTHER INFORMATION CONTACT: [FR Doc. 97–15307 Filed 6–10–97; 8:45 am] evaluation program. Grant, May 28, Priscilla A. Scott, PFC Program BILLING CODE 4910±13±M 1997, Exemption No. 6090A. Manager, Federal Aviation Docket No.: 26237. Administration, Airports Division, 12 Petitioner: MCI Systemhouse New England Executive Park, DEPARTMENT OF TRANSPORTATION Corporation. Burlington, Massachusetts 01803, (617) Sections of the FAR Affected: 14 CFR 238–7614. The application may be Maritime Administration 91.611. reviewed in person at 16 New England [Docket No. M±036] Description of Relief Sought/ Executive Park, Burlington, Disposition: To allow petitioner to Massachusetts. Information Collection Available for conduct ferry flights with one engine SUPPLEMENTARY INFORMATION: The FAA Public Comments and inoperative in MCI’s Falcon Trijet proposes to rule and invites public Recommendations aircraft, Model Nos. 50 and 900, without comment on the application to impose obtaining a special flight permit for each and use the revenue from a Passenger ACTION: Notice and request for flight. Grant, May 27, 1997, Exemption Facility Charge (PFC) at T.F. Green State comments. No. 5332C. Airport under the provisions of the SUMMARY: In accordance with the [FR Doc. 97–15171 Filed 6–10–97; 8:45 am] Aviation Safety and Capacity Expansion Act of 1990 (Title IX of the Omnibus Paperwork Reduction Act of 1995, this BILLING CODE 4910±13±M Budget Reconciliation Act of 1990) notice announces the Maritime (Pub. L. 105–508) and Part 158 of the Administration’s (MARAD’s) intentions to request extension of approval for DEPARTMENT OF TRANSPORTATION Federal Aviation Regulations (14 CFR Part 158). three years of a currently approved information collection. Federal Aviation Administration On May 2, 1997, the FAA determined that the application to impose and use DATES: Comments should be submitted Notice of Intent To Rule on Application the revenue from a PFC submitted by on or before August 11, 1997. To Impose and Use the Revenue From the Rhode Island Aviation Corporation FOR FURTHER INFORMATION CONTACT: a Passenger Facility Charge (PFC) at was substantially complete within the Richard L. Walker, Director, Office of T.F. Green State Airport requirements of § 158.25 of Part 158 of Intermodal Development, Maritime the Federal Aviation Regulations. The Administration, MAR–810, Room 7209, AGENCY: Federal Aviation FAA will approve or disapprove the 400 Seventh Street, S.W., Washington, Administration (FAA), DOT. application, in whole or in part, no later D.C. 20590. Telephone 202–366–8888 or ACTION: Notice of intent to rule on than August 6, 1997. FAX 202–366–6988. Copies of this application. The following is a brief overview of collection can also be obtained from that the impose and use application. office. SUMMARY: The FAA proposes to rule and PFC Project #: 97–02–C–00–PVD. invites public comment on the SUPPLEMENTARY INFORMATION: Level of the proposed PFC: $3.00. application to impose and use the Proposed charge effective date: Title of Collection: Inventory of revenue from a Passenger Facility September 1, 2013. American Intermodal Equipment. Charge at T.F. Green State Airport under Proposed estimated charge expiration Type of Request: Extension of the provisions of the Aviation Safety date: May 27, 2014. currently approved information and Capacity Expansion Act of 1990 Estimated total net PFC revenue: collection. (Title IX of the Omnibus Budget $3,892,980. OMB Control Number: 2133–0503. Reconciliation Act of 1990) (Pub. L. Brief description of project: Terminal Expiration Date of Approval: 101–508) and Part 158 of the Federal Leasehold Acquisition. December 31, 1997. Regulations (14 CFR Part 158). Class or classes of air carriers which Summary of Collection of DATES: Comments must be received on the public agency has requested not be Information: The collection consists of or before July 11, 1997. required to collect PFCs: On demand an intermodal equipment inventory that ADDRESSES: Comments on this Air Taxi/Commercial Operators (ATCO), provides data essential to both the application may be mailed or delivered that (1) do not enplane or deplane government and the transportation in triplicate to the FAA at the following passengers at the main passenger industry in planning for the most address: Federal Aviation terminal building; and (2) enplane less efficient use of intermodal equipment. Administration, Airports Division, 12 than 500 passengers per year at T.F. Need and Use of the Information: The New England Executive Park, Green State Airport. information contained in the inventory Burlington, Massachusetts 01803. Any person may inspect the provides data about U.S.-based In addition, one copy of any application in person at the FAA office companies that own or lease intermodal comments submitted to the FAA must listed above under FOR FURTHER equipment and is essential to both be mailed or delivered to Ms. Elaine INFORMATION CONTACT. government and industry in planning Roberts, at the following address: In addition, any person may, upon for contingency operations. Executive Director of Airports, Rhode request, inspect the application, notice Description of Respondents: The Island Aviation Corporation, T.F. Green and other documents germane to the report requests information from U.S. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31863 steamship and intermodal equipment DEPARTMENT OF TRANSPORTATION DEPARTMENT OF THE TREASURY leasing companies. Government Securities: Call for Large Annual Responses: 22 companies. Surface Transportation Board Position Reports Annual Burden: 66 hours. [STB Finance Docket No. 33405] AGENCY: Office of the Under Secretary Comments: Send all comments for Domestic Finance, Treasury. regarding this information collection to Paducah & Louisville RailwayÐ Joel C. Richard, Department of Trackage Rights ExemptionÐCSX ACTION: Notice. Transportation, Maritime Transportation, Inc. SUMMARY: The Department of the Administration, MAR–120, Room 7210, Treasury (‘‘Department’’ or ‘‘Treasury’’) 400 Seventh Street, S.W., Washington, CSX Transportation, Inc. (CSXT) has called for the submission of Large D.C. 20590. Send comments regarding agreed to grant overhead trackage rights Position Reports by those entities whose to Paducah & Louisville Railway (P&L) whether this information collection is reportable positions in the 61⁄4% necessary for proper performance of the between Madisonville, KY, at or near Treasury Notes of February 2007 milepost OOH 275, and the Providence 1 function of the agency and will have equaled or exceeded $2 ⁄2 billion as of practical utility, accuracy of the burden 1 Mine (Mine) located on CSXT’s close of business June 6, 1997. Morganfield Branch, at or near milepost estimates, ways to minimize this DATES: Large Position Reports must be MB 288.8, a distance of approximately burden, and ways to enhance quality, received before noon Eastern time on 13.5 miles. utility, and clarity of the information to June 13, 1997. be collected. The transaction is scheduled to be ADDRESSES: The reports must be consummated on June 7, 1997. By Order of the Maritime Administrator. submitted to the Federal Reserve Bank Dated: June 15, 1997. The purpose of the trackage rights is of New York, Market Reports Division, to allow P&L to handle movements of 4th Floor, 33 Liberty Street, New York, Joel C. Richard, coal from the Mine to the generating New York 10045; or facsimile 212–720– Secretary. facilities of Louisville Gas and Electric 8028. [FR Doc. 97–15280 Filed 6–10–97; 8:45 am] Company at Kosmosdale and Louisville, FOR FURTHER INFORMATION CONTACT: Ken BILLING CODE 4910±81±P KY, and to handle empties via the Papaj, Director, or Kerry Lanham, reverse route. Government Securities Specialist, As a condition to this exemption, any Bureau of the Public Debt, Department DEPARTMENT OF TRANSPORTATION employees affected by the trackage of the Treasury, at 202–219–3632. Maritime Administration rights will be protected by the SUPPLEMENTARY INFORMATION: Pursuant conditions imposed in Norfolk and to the Department’s large position rules Voluntary Intermodal Sealift Western Ry. Co.—Trackage Rights—BN, under the Government Securities Act Agreement 354 I.C.C. 605 (1978), as modified in regulations (17 CFR Part 420), the Mendocino Coast Ry., Inc.—Lease and Treasury, in a press release issued on AGENCY: Maritime Administration, DOT. Operate, 360 I.C.C. 653 (1980). June 9, 1997, and in this Federal Register notice, called for Large Position ACTION: Notice of public meeting. This notice is filed under 49 CFR 1180.2(d)(7). If it contains false or Reports from those entities whose 1 misleading information, the exemption reportable position in the 6 ⁄4% The Maritime Administration and is void ab initio. Petitions to revoke the Treasury Notes of February 2007, Series United States Transportation Command, 1 exemption under 49 U.S.C. 10502(d) B–2007, equaled or exceeded $2 ⁄2 with its sealift component Military may be filed at any time. The filing of billion as of the close of business Sealift Command, announce a public a petition to revoke will not Friday, June 6, 1997. The call for Large meeting to discuss and provide automatically stay the transaction. Position Reports is a test. Entities whose background information focused reportable positions in this 10-year note primarily to the U.S.-flag tug/barge An original and 10 copies of all equaled or exceeded the $21⁄2 billion industry on the advantages of becoming pleadings, referring to STB Finance threshold must report these positions to a participant in the Voluntary Docket No. 33405, must be filed with the Federal Reserve Bank of New York. Intermodal Sealift Agreement (VISA) the Surface Transportation Board, Office Large Position Reports, which must of the Secretary, Case Control Unit, 1925 Program. The meeting will be held in include the required position and K Street, N.W., Washington, DC 20423– Room 3200–3204, Department of administrative information, must be 0001. In addition, a copy of each Transportation, 400 Seventh Street, SW, received by the Market Reports Division pleading must be served on (1) J. of the Federal Reserve Bank of New Washington, D.C. 20590 on June 25, Thomas Garrett, Esq., Paducah & 1997 from 1:00 p.m. to 4:00 p.m. York before noon Eastern time on Louisville Railway, 1500 Kentucky Friday, June 13, 1997. The Reports may CONTACT PERSON FOR ADDITIONAL Avenue, Paducah, KY 42003, and (2) be filed by facsimile at (212) 720–8028 INFORMATION: Raymond R. Barberesi, Fred R. Birkholz, Esq., CSX or delivered to the Bank at 33 Liberty Director, Office of Sealift Support, (202) Transportation, Inc., 500 Water Street, Street, 4th floor. 366–2323. J–150, Jacksonville, FL 32202. The 61⁄4% Treasury Notes of February By Order of the Maritime Administrator. Decided: June 4, 1997. 2007 have a CUSIP number of 912827 2J 0, a STRIPS principal component CUSIP Dated: June 6, 1997. By the Board, David M. Konschnik, Director, Office of Proceedings. number of 912820 BW 6, and a maturity Joel C. Richard, date of February 15, 2007. Vernon A. Williams, Secretary. The press release and a copy of this [FR Doc. 97–15279 Filed 6–10–97; 8:45 am] Secretary. Federal Register notice calling for the [FR Doc. 97–15264 Filed 6–10–97; 8:45 am] BILLING CODE 4910±81±P Large Position Reports, and a copy of a BILLING CODE 4915±00±P sample Large Position Report which 31864 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices appears in Appendix B of the rules at 17 UNITED STATES INFORMATION exhibition or display of the listed CFR Part 420, can be obtained by calling AGENCY exhibit objects at A Living Memorial to (202) 622–2040 and requesting the Holocaust—Museum of Jewish document number 1737. These Culturally Significant Objects Imported Heritage in New York from on or about documents are also available at the for Exhibition; Determinations July 1, 1997, through July 1, 2002, is in Bureau of the Public Debt’s Internet site Notice is hereby given of the the national interest. The action of the at the following address: http:// following determinations: Pursuant to United States in this matter and the www.publicdebt.treas.gov. the authority vested in me by the Act of immunity based on the application of Questions about Treasury’s large October 19, 1965 (79 Stat. 985, 22 U.S.C. the provisions of the law involved does position reporting rules should be 2459), Executive Order 12047 of March not imply any view of the United States directed to Public Debt’s Government 27, 1978 (43 F.R. 13359, March 29, Securities Regulations Staff at (202) concerning the ownership of the 1978), and Delegation Order No. 85–5 of 219–3632. Questions regarding the exhibition objects. Further, it is not June 27, 1985 (50 F.R. 27393, July 2, method of submission of Large Position based upon and does not represent any 1985), I hereby determine that the seven Reports may be directed to the Market change in the position of the United objects (See list 1), to be exhibited in A Reports Division of the Federal Reserve States regarding the status of Jerusalem Living Memorial to the Holocaust— Bank of New York at (212) 720–8021. or the territories occupied by Israel Museum of Jewish Heritage in New The collection of large position since 1967. Public Notice of these York, imported from abroad for the information has been approved by the determinations is ordered to be temporary exhibition without profit Office of Management and Budget published in the Federal Register. within the United States, are of cultural pursuant to the Paperwork Reduction Date: June 5, 1997. significance. These objects are imported Act under OMB Control Number 1535– pursuant to a loan agreement with the Les Jin, 0089. foreign lenders. I also determine that the General Counsel. Dated: June 6, 1997. [FR Doc. 97–15283 Filed 6–10–97; 8:45 am] John D. Hawke, Jr., 1 A copy of this list may be obtained by BILLING CODE 8230±01±M Under Secretary, Domestic Finance. contacting Ms. Jacqueline Caldwell, Assistant General Counsel, at 202/619–6982, and the address [FR Doc. 97–15445 Filed 6–9–97; 3:33 pm] is Room 700, U.S. Information Agency, 301 4th BILLING CODE 4810±39±P Street, S.W., Washington, D.C. 20547–0001. 31865

Corrections Federal Register Vol. 62, No. 112

Wednesday, June 11, 1997

This section of the FEDERAL REGISTER Appendix B to Part 2641 [Corrected] May 2, 1997, make the following contains editorial corrections of previously 2. On page 26917, in the first column, correction: published Presidential, Rule, Proposed Rule, and Notice documents. These corrections are in the eighth line from the bottom, § 3801.106 [Corrected] prepared by the Office of the Federal ‘‘anuary’’ should read ‘‘January’’. Register. Agency prepared corrections are 3. On page 26917, in the second On page 23943, in the first column, in issued as signed documents and appear in column, in footnote 1, in the second line the first line of § 3801.106 (b)(1)(ii), the appropriate document categories ‘‘Secreary’’ should read ‘‘Secretary’’. ‘‘have as’’ should read ‘‘habeas’’. elsewhere in the issue. 4. On page 26917, in the second BILLING CODE 1505-01-D column, in footnote 1, in the sixth line ‘‘Secreary’’ should read ‘‘Secretary’’. 5. On page 26917, in the second OFFICE OF GOVERNMENT ETHICS DEPARTMENT OF LABOR column, in footnote 2, in the first line 5 CFR Part 2641 ‘‘Untied’’ should read ‘‘United’’. Employment and Training 6. On page 26917, in the second Administration column, in footnote 3, in the first line, RIN 3209-AA07 ‘‘Untied’’ should read ‘‘United’’. Job Training Partnership Act Annual 7. On page 26917, in the second Post-Employment Conflict of Interest Service Delivery Area Report (JASDA); column, in footnote 3, in the second line Comment Request Restrictions; Exemption of Positions ‘‘Attorneys’’ should read ‘‘Trustees’’. and Revision of Departmental 8. On page 26917, in the third Correction Component Designations column, in footnote 5, in the first line ‘‘Untied’’ should read ‘‘United’’. In notice document 97–14056 Correction BILLING CODE 1505-01-D beginning on page 29154 in the issue of In rule document 97–12898, Thursday, May 29, 1997, make the following correction: beginning on page 26915, in the issue of DEPARTMENT OF JUSTICE Friday, May 16, 1997, make the On page 29154, in the third column, following corrections: 5 CFR Part 3801 under the DATES section ‘‘June 28, 1997’’ should read ‘‘July 28, 1997’’. Appendix A to Part 2641 [Corrected] 28 CFR Part 45 BILLING CODE 1505-01-D 1. On page 26917, in the first column, RIN 3209-AA15 in Appendix A to part 2641, the listing for the Department of Justice should Supplement Standards of Ethical read as follows: Conduct for Employees of the * * * * * Department of Justice Agency: Department of Justice. Positions: United States Trustee (21)(effective Correction June 2, 1994). In rule document 97–11476 beginning * * * * * on page 23941 in the issue of Friday, federal register June 11,1997 Wednesday Internet Providers;Rules Network byInformationServiceand Pricing; UsageofthePublicSwitched Carriers; TransportRateStructureand Performance ReviewforLocalExchange Access ChargeReform;PriceCap 47 CFRParts61and69 Commission Communications Federal Part II 31867 31868 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

FEDERAL COMMUNICATIONS Register at a later date announcing the this Report and Order, as required by COMMISSION effective date for the sections containing the Paperwork Reduction Act of 1995, information collection requirements. Public Law 104–13. Please note that the 47 CFR Parts 61 and 69 FOR FURTHER INFORMATION CONTACT: Commission has requested emergency [CC Docket Nos. 96±262, 94±1, 91±213, 96± Richard Lerner, Attorney, Common review and approval of this collection 263; FCC 97±158] Carrier Bureau, Competitive Pricing by June 10, 1997 under the provisions Division, (202) 418–1530. For additional of 5 CFR 1320.13. OMB notification of Access Charge Reform; Price Cap information concerning the information action is due June 10, 1997. Comments Performance Review for Local collections contained in this Report and should address: (a) Whether the Exchange Carriers; Transport Rate Order contact Judy Boley at 202–418– proposed collection of information is Structure and Pricing; Usage of the 0214, or via the Internet at necessary for the proper performance of Public Switched Network by [email protected]. the functions of the Commission, Information Service and Internet SUPPLEMENTARY INFORMATION: This is a including whether the information shall Access Providers summary of the Commission’s Report have practical utility; (b) the accuracy of the Commission’s burden estimates; (c) AGENCY: Federal Communications and Order adopted May 7, 1997, and Commission. released May 16, 1997. The full text of ways to enhance the quality, utility, and clarity of the information collected; and ACTION: Final rule. this Report and Order is available for inspection and copying during normal (d) ways to minimize the burden of the SUMMARY: On December 23, 1996, the business hours in the FCC Reference collection of information on the Commission adopted a Notice of Center (Room 239), 1919 M St., N.W., respondents, including the use of Proposed Rulemaking in this docket, Washington, DC. The complete text also automated collection techniques or seeking comment on how the interstate may be obtained through the World other forms of information technology. access charge regime should be revised Wide Web, http://www.fcc.gov/ OMB Approval Number: 3060–0760. in light of the local competition and Bell Bureaus/CommonlCarrier/Orders/ Title: Access Charge Reform Report Operating Company entry provisions of 1997/fcc97158.wp, or may be purchased and Order. the Telecommunications Act of 1996 from the Commission’s copy contractor, Form No.: N/A. and state actions to open local markets International Transcription Service, Type of Review: Revised Collection. to competition, the effects of potential Inc., (202) 857–3800, 2100 M St., N.W., Respondents: Business and other for and actual competition on incumbent Suite 140, Washington, DC 20037. To profit. LEC pricing for interstate access, and seek comment on the rules adopted in Number of Respondents: 13. the impact of the Act’s mandate to this Report and Order, the Commission Estimated Time Per Response: preserve and enhance universal service. released Access Charge Reform, CC 138,714 hours. In this Report and Order, the Docket No. 96–262, Notice of Proposed Total Annual Burden: 1,803,282 Commission adopts many of the rules it Rulemaking, 62 FR 4670 (January 31, hours. proposed. These rule revisions are 1997); Price Cap Performance Review Estimated costs per respondent: intended to foster competition, move for Local Exchange Carriers, CC Docket $2,400. access charges over time to more No. 94–1, Second Further Notice of Total Annual Estimated Costs: economically efficient levels and rate Proposed Rulemaking, 60 FR 49539 $31,200. structures, preserve universal service, (September 25, 1995); and Price Cap Needs and Uses: In the Access Charge and lower rates. Performance Review for Local Exchange Reform First Report and Order, the DATES: The following rules or Carriers, CC Docket 94–1, Fourth Commission adopts, that, consistent amendments thereto, shall become Further Notice of Proposed Rulemaking, with principles of cost-causation and effective July 11, 1997 47 CFR 69.103, 60 FR 52362 (October 6, 1995). This economic efficiency, non-traffic 69.107, 69.122, 69.303, 69.304, 69.307, Report and Order contains proposed or sensitive (NTS) costs associated with 69.308, and 69.406. The following rules modified information collections subject local switching should be recovered on or amendments thereto, which impose to the Paperwork Reduction Act of 1995 an NTS basis, through flat-rated, per new or modified information or (PRA). It has been submitted to the month charges. The information collection requirements, shall become Office of Management and Budget collections resulting from this Report effective upon approval by the Office of (OMB) for review under the PRA. OMB, and Order are as follows: Management and Budget (OMB), but no the general public, and other Federal a. Cost Study of Local Switching sooner than June 15, 1997: 47 CFR agencies are invited to comment on the Costs: The FCC does not establish a 61.45, 61.47, 69.104, 69.126, 69.151, proposed or modified information fixed percentage of local switching costs 69.152, and 69.410. The following rules, collections contained in this that incumbent LECs must reassign to or amendments thereto, in this Report proceeding. Please note that the the Common Line basket or newly and Order shall be effective January 1, Commission has requested emergency created Trunk Cards and Ports service 1998: 47 CFR 61.3, 61.46, 69.1, 69.2, review and approval of this collection category as NTS costs. In light of the 69.105, 69.123, 69.124, 69.125, 69.154, by June 10, 1997 under the provisions widely varying estimates in the record, 69.155, 69.157, 69.305, 69.306, 69.309, of 5 CFR 1320.13. we conclude that the portion of costs 69.401, 69.411, 69.501, 69.502, and that is NTS costs likely varies among 69.611. The following rules, which Paperwork Reduction Act LEC switches. Accordingly, we require impose new or modified information or This Report and Order contains either each price cap LEC to conduct a cost collection requirements, shall become a proposed or modified information study to determine the geographically- effective upon approval by the Office of collection. As part of its continuing averaged portion of local switching Management and Budget (OMB), but no effort to reduce paperwork burdens, we costs that is attributable to the line-side sooner than January 1, 1998: 47 CFR invite the general public and the Office ports, as defined above, and to 61.42, 61.48, 69.4, 69.106, 69.111, of Management and Budget (OMB) to dedicated trunk side cards and ports. 69.153, and 69.156. The Commission take this opportunity to comment on the These amounts, including cost support, will publish a document in the Federal information collections contained in should be reflected in the access charge Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31869 elements filed in the LEC’s access tariff of competition into all advance universal service.’’ As effective January 1, 1998. telecommunications markets, pursuant explained further in the Joint b. Cost Study of Interstate Access to the mandate of the 1996 Act. Explanatory Statement of the Committee Service That Remain Subject to Price 2. In the Local Competition Order, we of the Conference, Congress intended Cap Regulation: The 1996 Act has set forth rules to implement section 251 that, ‘‘[t]o the extent possible, * * * any created an unprecedented opportunity and section 252 of the Communications support mechanisms continued or for competition to develop in local Act of 1934, as amended. created under new section 254 should telephone markets. We recognize, Implementation of the Local be explicit, rather than implicit as many however, that competition is unlikely to Competition Provisions of the support mechanisms are today.’’ develop at the same rate in different Telecommunications Act of 1996, CC Congress directed the Commission, by locations, and that some services will be Docket No. 96–98, First Report and May 8, 1997, to complete a universal subject to increasing competition more Order, 61 FR 45476 (August 29, 1996) service proceeding that ‘‘include[s] a rapidly than others. We also recognize, (Local Competition Order), Order on definition of the services that are however, that there will be areas and Reconsideration, CC Docket No. 96–98, supported by Federal universal service services for which competition may not 61 FR 52706 (October 8, 1996), petition support mechanisms and a specific develop. We will adopt a prescriptive for review pending and partial stay timetable for implementation.’’ ‘‘backstop’’ to our market-based granted, sub nom. Iowa Utils. Bd. v. 5. Through our accompanying approach that will serve to ensure that FCC, 109 F.3d 418 (8th Cir. 1996). As Universal Service Order, we establish all interstate access customers receive with all of Part II of Title II of the the definition of services to be the benefits of more efficient prices, Communications Act, those sections, supported by federal universal service even in those places and for those and the rules implementing them, seek support mechanisms and the specific services where competition does not to remove the legal, regulatory, timetable for implementation. Further, develop quickly. To implement our economic, and operational barriers to through this First Report and Order in backstop to market-based access charge telecommunications competition. our access reform docket and our reform, we require each incumbent Among other things, sections 251 and Universal Service Order, we set in place price cap LEC to file a cost study no 252 provide entrants with the rules that will identify and convert later than February 8, 2001, opportunity to compete for consumers existing federal universal service demonstrating the cost of providing in local markets by either constructing support in the interstate high cost fund, those interstate access services that new facilities, leasing unbundled the dial equipment minutes (DEM) remain subject to price cap regulation network elements, or reselling weighting program, Long Term Support, because they do not face substantial telecommunication services. Lifeline, Link-up, and interstate access competition. 3. In the Universal Service Order, charges to explicit federal universal c. Tariff Filings. The Commission also which we adopt in a companion order service support mechanisms. As suggests several information collections today, we take steps to ensure that detailed below, we will identify the relating to tariff filings. Specifically, the support mechanisms that are necessary implicit federal universal service Commission adopts its proposals to to maintain local rates at affordable support currently contained in interstate require the filing of various tariffs, with levels are protected and advanced as access charges through three methods. modifications. For example, the FCC local telecommunication markets 6. First, we will reduce usage- directs incumbent LECs to establish become subject to the competitive sensitive interstate access charges by separate rate elements for the pressures unleashed by the 1996 Act. phasing out local loop and other non- multiplexing equipment on each side of Federal-State Board on Universal traffic-sensitive (NTS) costs from those the tandem switch. LECs must establish Service, CC Docket No. 96–45, First charges and directing incumbent local Report and Order, FCC 97–157, lll exchange carriers (LECs) to recover a flat-rated charge for the multiplexers lll on the SWC side of the tandem, FR (released May 8, 1997) those NTS costs through more imposed pro-rata on the purchasers of (Universal Service Order). When it economically efficient, flat-rated enacted section 254 of the charges. Because NTS costs, by the dedicated trunks on the SWC side of Communications Act, Congress detailed definition, do not vary with usage, the the tandem. Multiplexing equipment on the principles that must guide this recovery of NTS costs on a usage basis the EO side of the tandem shall be effort. It placed on the Commission and pursuant to our current access charge charged to users of common EO-to- the states the duty to implement these rules amounts to an implicit subsidy tandem transport on a per-minute of use principles in a manner consistent with from high-volume users of interstate toll basis. These multiplexer rate elements the pro-competition purposes of the Act, services to low-volume users of must be included in the LEC access as embodied in, for instance, the interstate long-distance services. tariff filings to be effective January 1, interconnection provisions of the Act. It 7. Second, we will rely in part on 1998. stated that ‘‘[t]here should be specific, emerging competition in local Synopsis of Report and Order predictable and sufficient Federal and telecommunications markets, spurred State mechanisms to preserve and by the adoption of the 1996 Act, to help I. Introduction advance universal service.’’ identify the differences between the 1. In passing the Telecommunications 4. Congress also specified that rates for interstate access services Act of 1996, Public Law 104–104, 110 universal service support ‘‘should be established by incumbent LECs under Stat. 56 (codified at 47 U.S.C. secs. 151 explicit,’’ and that, with respect to price cap regulation and those that et seq.) (1996 Act), Congress sought to federal universal service support, competition would set. The prices for establish ‘‘a pro-competitive, ‘‘[e]very telecommunications carrier that interstate access services offered by deregulatory national policy provides interstate telecommunications competing providers presumably will framework’’ for the United States’ services shall contribute, on an not contain any implicit universal telecommunications industry. With this equitable and non-discriminatory basis, service support such as that embedded Order, we begin the third part in a to the specific, predictable, and in the incumbent LECs’ access charges. trilogy of actions collectively intended sufficient mechanisms established by Consequently, the introduction of to foster and accelerate the introduction the Commission to preserve and competition inevitably will help to 31870 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations remove implicit support from the existing web of implicit subsidies to a services such as call waiting and call incumbent LECs’ access charges where system of explicit support would be a forwarding. By not mandating competition develops and also will help difficult task that probably could not be immediate Commission action to to identify the extent of implicit support accomplished immediately. As eliminate these policies and instead by in other areas. explained below, we conclude that a ordering that the Commission and the 8. Third, we will engage in further process that eliminates implicit states together achieve universal service deliberations on a forward-looking subsidies from access charges over time goals, Congress intended that states, economic cost-based mechanism that is warranted primarily for three reasons. acting pursuant to section 254(f) of the we will use to distribute federal support First, we simply do not have the tools Communications Act, must in the first to rural, insular, and high cost areas, to identify the existing subsidies instance be responsible for identifying beginning in 1999. Based on cost studies precisely at this time. Second, we prefer intrastate implicit universal service the states will conduct during the to rely on the market rather than support. Indeed, by our decisions in this coming year (or, at a state’s election, regulation to identify implicit support Order and in our companion Universal based upon Commission-developed because we are more confident of the Service Order, we strongly encourage proxy methods), an estimate of the market’s ability to do so accurately. states to take such steps. forward-looking economic cost of Third, even if we were more confident 12. To achieve the vital, historic, and providing service to a customer in a of our ability to identify all of the congressionally-mandated purposes of particular rural, insular, or high cost existing implicit support mechanisms at universal service in every state in an era area will be calculated. We will this time, eliminating them all at once in which competition replaces distribute federal universal service might have an inequitable impact on the monopoly, it is necessary that the states support based on the interstate portion incumbent local exchange carriers. and the Commission develop new and of the difference between forward- 10. Nor, by our orders today, do we effective mechanisms of complementing looking economic cost and a nationwide attempt to identify or eliminate the the activities of each other. Therefore, as revenue benchmark. The amount of the implicit universal service support states implement their universal service support will be explicitly calculable and mechanisms established by state plans, we will be able to assess whether identifiable by competing carriers, and commissions. We recognize that states additional federal universal service the support will be portable among are initially responsible for identifying support is necessary to ensure that competing carriers, i.e., distributed to implicit intrastate subsidies. For the quality services remain ‘‘available at the eligible telecommunications carrier reasons stated above, we believe the just, reasonable, and affordable rates.’’ chosen by the customer. It will be Commission has discretion under the Our decisions in this Order are meant in funded by equitable and non- statute to employ pro-competitive, part to provide some elements of the discriminatory contributions from all deregulatory policies to aid in the plan and time sufficient to discharge carriers that provide interstate reform of the existing, complex system responsibly an aspect of the federal role telecommunications services. Through of universal service. Where pro- in this federal-state universal service this First Report and Order, we direct competition policies, such as those set partnership. that federal universal service support forth in sections 251, 252 and 253, can 13. In this First Report and Order, we received by incumbent LECs be used to force prices for telecommunications also take the actions necessary to permit reduce or satisfy the interstate revenue services to competitive levels, and, as a the market, in the first instance, to requirement otherwise collected result, eliminate or, at least, expose any implicit universal service through interstate access charges. substantially eliminate implicit support, support that we may fail to identify as Accordingly, through both our the Act grants us the authority to rely on we implement our federal mechanisms Universal Service Order and this First such policies over a period of time. We for supporting universal service in Report and Order on access reform, find that the Act does not require, nor insular, rural, and high cost areas and to interstate implicit support for universal did Congress intend, that we drive access rates toward levels that service will be identified and removed immediately institute a vast set of wide- competition would be expected to from interstate access charges, and ranging pricing rules applicable to produce. Our decision also fulfills the support will be provided through the interstate and intrastate services congressional intent that we eliminate explicit interstate universal service provided by incumbent LECs that would the rules that have helped to sustain de support mechanisms. have enormously disruptive effects on facto or de jure monopolies in access 9. Although these three steps will set both ratepayers as well as the affected markets and instead create the in motion a process that will remove LECs. Indeed, the congressional conditions for competitive entry on a implicit universal service support from mandate that we implement pro- sustainable, long-term basis. That access charges, it will not remove all competitive, deregulatory policies is a requires, among other things, that we implicit support from all access charges continuing reminder that, wherever phase out opportunities for inefficient immediately. This result is fully in feasible, we should select competition entry that are created primarily by accord with Congress’s directives. instead of regulation as our means of anomalies in the current, monopoly- Although Congress said in the Act that accomplishing the stated statutory goals. oriented regime. Consequently, this ‘‘support should be explicit’’, it did not Reliance on competition is the keystone Order sets forth a plan for removing provide that ‘‘support shall be explicit.’’ that unifies our universal service and distortions and inefficiencies in both the Congress’s decision to say ‘‘should’’ access reform orders. current ‘‘rate structures’’ (the term used instead of ‘‘shall’’ is especially pertinent 11. Nevertheless, implicit intrastate to describe the manner in which a in light of Congress’s repeated use of universal service support is substantial. particular charge is assessed, such as ‘‘shall’’ in the 1996 Act. Moreover, in States have maintained low residential through a per-minute-of-use fee or a flat- the Act’s legislative history, Congress basic service rates through, among other rated fee) and ‘‘rate levels’’ (the term qualified its intention that ‘‘support things, a combination of: geographic rate used to describe the aggregate size of a mechanisms should be explicit, rather averaging, high rates for business particular access charge). By than implicit,’’ with the phrase ‘‘[t]o the customers, high intrastate access rates, rationalizing the access charge rate extent possible.’’ Thus, Congress high rates for intrastate toll service, and structure, we ensure that charges more recognized that the conversion of the high rates for vertical features and accurately reflect the manner in which Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31871 the costs are incurred, thereby looking economic costs of interstate services between the two jurisdictions facilitating the movement to a access and any historic costs associated are discussed below. competitive market. We also establish, with the provision of interstate access 18. At first, there was no formal in this First Report and Order, a services. We cannot remove universal system of tariffed charges to determine prescriptive mechanism to ensure that, service costs from interstate access how the BOCs and the hundreds of through the operation of price caps and charges until we can identify those unaffiliated, independent LECs would by other means, interstate access costs, which we will not be able to do recover the costs allocated to the charges in areas where competition does even for non-rural LECs before January interstate jurisdiction by the separations not develop will also be driven toward 1, 1999. rules. Instead, AT&T remitted to these companies the amounts necessary to the levels that competition would be 16. Coupled with the modifications recover their allocated interstate costs, expected to produce. The Price Cap implemented in our Universal Service including a return on allocated capital Fourth Report and Order, which is also Order, the changes we put in place the Second Report and Order in this investment. today will provide far-reaching benefits 19. In the 1970s, MCI and other docket and which is also adopted today, to the American people. This Order will modifies the X-Factor in accordance interexchange carriers (IXCs) began to restructure access charges, resulting in with this plan. Price Cap Performance provide switched long-distance service lower long-distance rates for many Review for Local Exchange Carriers, in competition with AT&T. However, consumers, while substantially Fourth Report and Order in CC Docket AT&T still maintained monopolies in increasing the volume of long-distance No. 94–1, and Access Charge Reform, the local markets served by its local calling. It will promote the spread of Second Report and Order in CC Docket subsidiaries, the Bell Operating competition by replacing significant No. 96–262, FCC 97–159, lll FR Companies (BOCs). The BOCs owned implicit subsidies with an explicit and lll (adopted May 7, 1997) (Price Cap and operated the telephone wires that secure universal service support system. Fourth Report and Order). connected the customers in their local 14. In a subsequent order in the It will foster competition and economic markets. Other independent (non-Bell) present docket, we will provide detailed prosperity by creating an access charge LECs held similar monopoly franchises rules for implementing the market-based system that is both efficient and fair. We in their local service areas. MCI and the approach that we adopt in today’s believe that the changes implemented other IXCs were dependent on the BOCs Order. That process will give carriers by this Order are necessary to meet the and the independent LECs to complete progressively greater flexibility in goal set forth in the 1996 Act—‘‘opening the long-distance calls to the end user. setting rates as competition develops, all telecommunications markets to 20. For much of the 1970s, MCI and gradually replacing regulation with competition.’’ AT&T fought over the fees—the access competition as the primary means of A. Background charges—that MCI should pay the BOCs setting prices and facilitating for originating and terminating investment decisions. A separate order 1. The Existing Rate System interstate calls placed by or to end users in this docket will also address on the BOCs’ local networks. That battle ‘‘historical cost’’ recovery: whether and 17. For much of this century, most took place before federal regulators, as to what extent carriers should receive telephone subscribers obtained both well as in the federal courts. In compensation for the recovery of the local and long-distance services from December 1978, under Commission allocated costs of past investments if the same company, the pre-divestiture supervision, AT&T, MCI, and the other competitive market conditions prevent Bell System, owned and operated by long-distance competitors entered into a them from recovering such costs in their AT&T. Its provision of local and comprehensive interim agreement, charges for interstate access services. intrastate long-distance services through known as Exchange Network Facilities 15. By our orders today, we reject the its wholly-owned operating companies for Interstate Access (ENFIA), that set arguments made by some parties that was regulated by state commissions. rates that AT&T would charge long- section 254 compels us immediately to The Commission regulated AT&T’s distance competitors for originating and remove all universal service costs from provision of interstate long-distance terminating interstate traffic over the interstate access charges. Making service. Much of the telephone plant facilities of its local exchange affiliates. ‘‘implicit’’ universal service subsidies that is used to provide local telephone Several years afterwards, AT&T’s ‘‘explicit’’ ‘‘to the extent possible’’ service (such as the local loop, the line divestiture was completed, separating means that we have authority at our that connects a subscriber’s telephone to the local exchange operations of the discretion to craft a phased-in plan that the telephone company’s switch) is also BOCs from the rest of AT&T’s relies in part on prescription and in part needed to originate and terminate operations, including AT&T’s long on competition to eliminate subsidies in interstate long-distance calls. distance business. The BOCs the prices for various products sold in Consequently, a portion of the costs of maintained monopoly franchises in the market for telecommunications this common plant historically was their local market, but by splitting them services. Moreover, we have met section assigned to the interstate jurisdiction off from AT&T’s long-distance business, 254’s clear command that we identify and recovered through the rates that the federal courts removed an incentive the services to be supported by federal AT&T charged for interstate long- for the BOCs to favor AT&T’s long universal service support mechanisms distance calls. The balance of the costs distance business over its competitors. and that we establish a specific of the common plant was assigned to Now AT&T competed directly with MCI timetable for implementation. Under the intrastate jurisdiction and recovered and the other competitors to provide that timetable, we will over the next through the charges administered by the interstate service, and all of the year identify implicit interstate state commissions for intrastate competitors paid the BOCs for the universal support and make that services. The system of allocating costs service of providing the necessary support explicit, as further provided by between the interstate and intrastate access to end users. section 254(e). As with any implicit jurisdictions is known as the 21. In 1978, the Commission support mechanism, universal service separations process. The difficulties commenced a wide-ranging review of costs are presently intermingled with all inherent in allocating the costs of the system by which LECs were other costs, including the forward- facilities that are used for multiple compensated for originating and 31872 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations terminating interstate traffic. In 1983, contrast, the costs of other facilities to the interstate jurisdiction by the following the decision to break-up used for both interstate and intrastate separations rules, the access charge for AT&T, the Commission adopted traffic do not vary with the amount of local switching would be set at $0.10 uniform access charge rules in lieu of traffic carried over the facilities, i.e., the per minute ($1,000/10,000 minutes). In earlier agreements. MTS and WATS costs are non-traffic-sensitive. These 1991, however, we implemented a Market Structure, Third Report and costs pose particularly difficult system of price cap regulation that Order, CC Docket No. 78–72, Phase 1, 48 problems for the separations process: altered the manner in which the largest FR 10319 (March 11, 1983) (MTS and The costs of such facilities cannot be incumbent LECs established their WATS Market Structure Third Report allocated on the basis of cost-causation interstate access charges. While most and Order), recon., 48 FR 42984 principles because all of the facilities rural and small LECs remained subject (September 21, 1983), second recon., 49 would be required even if they were to all of the Part 69 cost-of-service rules, FR 7810 (March 2, 1984). These rules used only to provide local service or generally the largest incumbent LECs governed the provision of interstate only to provide interstate access are now subject to price cap regulations access services by all incumbent LECs, services. A significant illustration of this set forth in Part 61 of our rules. BOCs as well as independents. The problem is allocating the cost of the access charge rules provide for the local loop, which is needed both to 26. Price cap regulation recovery of the incumbent LECs’ costs provide local telephone service as well fundamentally alters the process by assigned to the interstate jurisdiction by as to originate and terminate long- which incumbent LECs determine the the separations rules. distance calls. The current separations revenues they are permitted to obtain 22. The Commission uses a multi-step rules allocate 25 percent of the cost of from interstate access charges for access process to identify the cost of providing the local loop to the interstate services. Briefly stated, cost-of-service access service. First, the rules require an jurisdiction for recovery through regulation is designed to limit the incumbent LEC to record all of its interstate charges. The general process profits an incumbent LEC may earn expenses, investments, and revenues in of separating these costs between the from interstate access service, whereas accordance with accounting rules set interstate and intrastate jurisdictions is price cap regulation focuses primarily forth in our regulations. Second, the discussed by the Supreme Court in on the prices that an incumbent LEC rules divide these costs between those Smith v. Illinois Bell Tel. Co., 282 U.S. may charge and the revenues it may associated with regulated 133 (1930). generate from interstate access services. telecommunications services and those 24. The Commission has recognized Under the Part 69 cost-of-service rules, associated with nonregulated activities. in prior rulemaking proceedings that, to revenue requirements are based on Third, the separations rules determine the extent possible, costs of interstate embedded or accounting costs allocated the fraction of the incumbent LEC’s access should be recovered in the same to individual services. Incumbent LECs regulated expenses and investment that way that they are incurred, consistent are limited to earning a prescribed should be allocated to the interstate with principles of cost-causation. Thus, return on investment and are potentially jurisdiction. After the total amount of the cost of traffic-sensitive access obligated to provide refunds if their interstate cost is identified, the access services should be recovered through interstate rate of return exceeds the charge rules translate these interstate corresponding per-minute access rates. authorized level. By contrast, although costs into charges for the specific Similarly, NTS costs should be the access charges of price cap LECs interstate access services and rate recovered through fixed, flat-rated fees. originally were set at the cost-of-service elements. Part 69 specifies in detail the The Commission, however, has not levels that existed at the time they rate structure for recovering those costs. always adopted rules that are consistent entered price caps, their prices have That is, the rules tell the incumbent with this goal. In particular, the been limited ever since by price indices LECs the precise manner in which they Commission limited the amount of the that have been adjusted annually may assess charges on interexchange allocated interstate cost of a local loop pursuant to formulae set forth in our carriers and end users. that is assessed to residential and Part 61 rules. Price cap carriers whose 23. Determining the costs that an business customers as a flat monthly interstate access charges are set by these incumbent LEC incurs to provide charge, because of concerns that pricing rules are permitted to earn interstate access services and that, allowing the flat charges to rise above returns significantly higher than the consequently, should be recovered from the specified limits might cause those services, is relatively customers to disconnect their telephone prescribed rate of return that incumbent straightforward in some cases and service. The residual cost of the loop not LECs are allowed to earn under cost-of- problematic in others. Some facilities, recovered from end users through the service rules. Price cap regulation such as private lines, can be used flat charge is recovered through a per- encourages incumbent LECs to improve exclusively for interstate services and, minute-of-use charge assessed to long- their efficiency by harnessing profit- in such cases, the entire cost of those distance carriers. making incentives to reduce costs, facilities is assigned to the interstate 25. Through the end of 1990, the vast invest efficiently in new plant and jurisdiction by the separations rules. majority of access revenues were facilities, and develop and deploy Most facilities, however, are used for governed by ‘‘cost-of-service’’ innovative service offerings, while both intrastate and interstate services. regulation. Under cost-of-service setting price ceilings at reasonable The costs of some of these facilities vary regulation, incumbent LECs calculate levels. In this way, price caps act as a depending on the amount of the specific access charge rates using transitional regulatory scheme until the telecommunications traffic that they projected costs and projected demand advent of actual competition makes handle. The separations rules typically for access services. Thus, for example, if price cap regulation unnecessary. Price assign these traffic-sensitive (TS) costs an incumbent LEC projects that it will Cap Performance Review for Local on the basis of the relative interstate and provide 10,000 total minutes of Exchange Carriers, Second Further intrastate usage of the facilities, as switching for interstate calls and Notice of Proposed Rulemaking in CC measured, for example, by the relative estimates that it must generate $1,000 Docket No. 93–124, and Second Further minutes of interstate and intrastate dollars in revenue in order to recover Notice of Proposed Rulemaking in CC traffic carried by such facilities. By the costs of switching that are allocated Docket No. 93–197, 60 FR 49539 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31873

(September 26, 1995) (Price Cap Second rules require larger incumbent LECs to 30. This ‘‘patchwork quilt of implicit Further NPRM). allocate the costs of their switching and explicit subsidies’’ generates 27. Although price cap regulation facilities between the interstate and inefficient and undesirable economic eliminates the direct link between intrastate jurisdictions on the basis of behavior. For example, a rate structure changes in allocated accounting costs relative use (i.e., if 30 percent of the that requires the use of per-minute and change in prices, it does not sever minutes of use handled by the LEC’s access charges where flat-rated fees the connection between accounting switching facilities are interstate long- would be more appropriate increases costs and prices entirely. The overall distance calls, 30 percent of the LEC’s the per-minute rates paid by IXCs and interstate revenue levels still generally switching costs are allocated to the long-distance consumers, thus reflect the accounting and cost interstate jurisdiction and recovered artificially suppressing demand for allocation rules used to develop access through interstate access charges). Our interstate long-distance services. rates to which the price cap formulae rules, however, permit smaller Similarly, the possible overallocation of were originally applied. Price cap incumbent LECs to allocate a greater costs to the interstate jurisdiction may, indices are adjusted upwards if a price share of their switching costs to for some consumers, increase long- cap carrier earns returns below a interstate access services than would distance rates substantially, suppressing specified level in a given year. result from the relative use allocator. their demand for interstate Moreover, a price cap LEC may petition These smaller incumbent LECs multiply interexchange services. Implicit the Commission to set its rates above the the interstate use ratio by a factor (as subsidies also have a disruptive effect levels permitted by the price cap indices high as 3) specified in the separations on competition, impeding the efficient based on a showing that the authorized rules. In its Recommended Decision, the development of competition in both the rate levels will produce earnings that Joint Board on Universal Service local and long-distance markets. For are so low as to be confiscatory. In the observed that these separations rules example, where rates are significantly past, all or some price cap LECs were ‘‘shift what would otherwise be above cost, consumers may choose to required to ‘‘share,’’ or return to intrastate costs to the interstate bypass the incumbent LEC’s switched ratepayers, earnings above specified jurisdiction,’’ thereby allowing such access network, even if the LEC is the levels. The new rules adopted in the most efficient provider. Conversely, LECs to charge lower prices for companion Price Cap Fourth Report and where rates are subsidized (as in the intrastate services. Federal-State Joint Order remove this limit on the case of consumers in high-cost areas), Board on Universal Service, CC Docket maximum returns that can be earned by rates will be set too low and an No. 96–45, Recommended Decision, 61 price cap incumbent LECs. otherwise efficient provider would have FR 63778 (December 2, 1996) (Joint no incentive to enter the market. In 2. Implicit Subsidies in the Existing Board Recommended Decision). The either case, the total cost of System Joint Board found that this allocation telecommunications services will not be structure, known as DEM (dial 28. Both our price cap and cost-of- as low as it would otherwise be in a equipment minute) weighting, is ‘‘an service rules contain requirements that competitive market. Because of the inevitably result in charges to certain implicit support mechanism that is growing importance of the end users that exceed the cost of the recovered through the switched access telecommunications industry to the service they receive. To the extent these rates charged to interexchange carriers economy as a whole, this inefficient rates do not reflect the underlying cost by those carriers serving less than system of access charges retards job of providing access service, they could 50,000 lines.’’ Joint Board creation and economic growth in the be said to embody an implicit subsidy. Recommended Decision. Similarly, in nation. Some of these subsidies are due to the the Marketing Expense Recommended 31. Despite the existence of rate structures prescribed by our rules, Decision, another Federal-State Joint distortions and inefficiencies, the which in some cases prevent incumbent Board observed that the separations current system of cross-subsidies has LECs from recovering their access costs rules allocate a share of the incumbent persisted for over a decade. The in the same way they have been LECs’ retail marketing expenses to the structure has been justified on policy incurred. For example, although the cost interstate jurisdiction that is grounds, principally as a means to serve of the local loop that connects an end unreasonably high, given that the universal service goals. By providing user to the telephone company’s switch interstate access services consist incumbent LECs with a stream of does not vary with usage, the current primarily of wholesale service offerings. subsidized revenues from certain rate structure rules require incumbent Amendment of Part 67 (New Part 36) of customers, the system allows regulators LECs to recover a large portion of these the Commission’s Rules and to demand below-cost rates for other non-traffic-sensitive costs through Establishment of a Federal-State Joint customers, such as those in high-cost traffic-sensitive, per-minute charges. Board, CC Docket No. 86–297, areas. These mandatory recovery rules inflate Recommended Decision and Order, 52 traffic-sensitive usage charges and FR 15355 (April 28, 1987) (Marketing 3. The Telecommunications Act of 1996 reduce charges for connection to the Expense Recommended Decision). To 32. The existing system of implicit network, in essence creating an implicit the extent these and other separation subsidies and support flows is support flow from end users that make rules do not apportion costs between the sustainable only in a monopoly many interstate long-distance calls to jurisdictions in a manner that reflects environment in which incumbent LECs end users that make few or no interstate the costs incurred to provide service in are guaranteed an opportunity to earn long-distance calls. each jurisdiction, they might be viewed returns from certain services and 29. Several Federal-State Joint Boards as generating subsidies from the customers that are sufficient to support have observed that additional subsidies interstate to the intrastate jurisdiction. the high cost of providing other services and distortions may be due, not only to These subsidies effectively require to other customers. The new the rate structure, but to the separations incumbent LECs to charge higher rates competitive environment envisioned by rules that divide costs between the for interstate services and lower rates for the 1996 Act threatens to undermine interstate and intrastate jurisdictions. intrastate services than would otherwise this structure over the long run. The For example, the current separations occur if the subsidies were eliminated. 1996 Act removes barriers to entry in 31874 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations the local market, generating competitive subsidies associated with high-cost or vulnerable to competition from pressures that make it difficult for low-income consumers. In the long run, interconnection and the availability of incumbent LECs to maintain access this approach may even allow us to set unbundled network elements. This charges above economic cost. For subsidy levels through competitive proceeding will affect the vast majority example, by giving competitors the right bidding rather than through regulation. of all access lines and revenues, because to lease an incumbent LEC’s unbundled By contrast, under the current system of price cap regulation governs more than network elements at cost, Congress implicit subsidies, the only carriers that 90 percent of all incumbent LEC access provided IXCs an alternative avenue to will serve high-cost consumers are those lines. We will initiate a separate connect to and share the local network. that are required to do so by regulation proceeding later this year to examine Thus, where existing rules require an and that are able (because of their the special circumstances of small and incumbent LEC to set access charges protected monopoly positions) to charge rural rate-of-return LECs. above-cost rates to other end users. above cost for a high-volume user, a 1. Rationalizing the Rate Structure competing provider of exchange access 34. In the Universal Service Order, we services entering into a market can lease establish ‘‘explicit and sufficient’’ 36. In this Order, we reshape the unbundled network elements at cost, or support mechanisms to assist users in existing rate structure in order to construct new facilities, to circumvent high-cost areas, low-income consumers, eliminate significant implicit subsidies the access charge. In Section VI.A of this schools, and health care providers. By in the access charge system. To achieve Order, we conclude that access charges creating explicit support mechanisms, that end, we make several modifications may not be assessed on unbundled we establish a system to advance the to ensure that costs are recovered in the network elements since they are not part universal service goals of the 1996 Act same way that they are incurred. In of the ‘‘cost’’ of providing those that is compatible with the development general, NTS costs incurred to serve a elements, as defined in 47 U.S.C. sec. of competition in the local exchange particular customer should be recovered 252(d)(1)(A)(i). In this way, a new and exchange access markets. By through flat fees, while traffic-sensitive entrant might target an incumbent LEC’s creating a portable and measurable costs should be recovered through high-volume access customers, for system of subsidies, we utilize the usage-based rates. The present structure whom access charges are now set at power of the market to serve universal violates this basic principle of cost levels significantly above economic service goals more efficiently. That causation by requiring incumbent LECs cost. As competition develops, order, in short, guarantees that to recover many fixed costs through variable, per-minute access rates. An incumbent LECs may be forced to lower Congress’s universal service goals are important goal of this Order is to their access charges or lose market met in a way that conforms with the increase the amount of fixed costs share, in either case jeopardizing the pro-competitive and deregulatory goals recovered through flat charges and source of revenue that, in the past, has of the 1996 Act. decrease the amount recovered through permitted the incumbent LEC to offer B. Access Charge Reform variable rates. service to other customers, particularly 35. In light of Congress’s command to 37. Common Line Costs. Because the those in high-cost areas, at below-cost create secure and explicit mechanisms costs of using the incumbent LEC’s prices. Incumbent LECs have for some to achieve universal service goals, we common line (or ‘‘local loop’’) do not time been claiming that this process has conclude that implicit subsidies increase with usage, these costs should already made more than trivial inroads embodied in the existing system of be recovered through flat, non-traffic- on their high-volume customer base. interstate access charges cannot be sensitive fees. The current rate 33. Recognizing the vulnerability of indefinitely maintained in their current structure, however, generally allows an implicit subsidies to competition, form. In this Order, therefore, we take incumbent LEC to recover no more than Congress directed the Commission and two steps with respect to the rules a portion of its interstate common line the states to take the necessary steps to governing the interstate access charges revenues through a flat-rated Subscriber create permanent universal service of price cap incumbent LECs. First, we Line Charge (SLC), which is capped at mechanisms that would be secure in a reform the current rate structure to bring $3.50 per month for residential and competitive environment. To achieve it into line with cost-causation single-line business users, and $6.00 per this end, Congress directed the principles, phasing out significant month for multi-line users. The Commission to strive to replace the implicit subsidies. Second, we set in remaining common line revenues must system of implicit subsidies with place a process to move the baseline rate be recovered through a per-minute ‘‘explicit and sufficient’’ support level toward competitive levels. Common Carrier Line (CCL) charge mechanisms. In calling for explicit Together with the Universal Service assessed on IXCs (which, in turn, may mechanisms, Congress did not intend Order, these adjustments will promote recover these charges through their simply to require carriers to identify and the public welfare by encouraging prices to long-distance customers). In disclose the implicit subsidies that investment and efficient competition, order to align the rate structure more currently exist in the industry. Rather, while establishing a secure structure for closely with the manner in which costs as we determine in the Universal achieving the universal service goals are incurred, we adjust access rates over Service Order adopted today, Congress established by law. Further, the process time until the common line revenues of intended to establish subsidies that we set in place to achieve these goals all price cap LECs are recovered through were both ‘‘measurable’’ and avoids the destabilizing effects of flat-rated charges. ‘‘portable’’—‘‘measurable’’ in a way that sudden radical change, facilitating the 38. For primary residential and single- allows competitors to assess the transformation from a regulated to a line business lines, however, we decline profitability of serving subsidized end competitive marketplace. With the to implement this goal by increasing the users; and ‘‘portable’’ in a way that limited exceptions identified in Section SLC ceiling above its existing $3.50 ensures that competitors who succeed V, the scope of this proceeding is level as urged by many companies, in winning a customer also win the limited to price cap incumbent LECs. As including price cap LECs and IXCs. We corresponding subsidy. A system of we explain in that section, the need for do not wish to see increases in the price portable and measurable subsidies will access reform is most immediate for of basic dial tone charged by local permit carriers to compete for the these carriers, since they are most exchange carriers to their end users for Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31875 fear that such increases might cause on residential customers, however, the mandate, access charges should some consumers to discontinue service, increase for non-primary residential ultimately reflect rates that would exist a result that would be contrary to our lines will be phased in over time. The in a competitive market. We recognize mandate to ensure universal service. We data indicate that raising the SLC ceiling that competitive markets are far better agree with the Joint Board’s finding that to this level will permit incumbent price than regulatory agencies at allocating increasing the SLC ceiling may make cap LECs to recover their average resources and services efficiently for the telecommunications service common line revenues from 99 percent maximum benefit of consumers. We unaffordable for some consumers. of their non-primary residential and conclude, consequently, that Consequently, to the extent that multi-line business lines. For the competition or, in the event that common line revenues are not recovered remaining lines, many of which are competition fails to develop, rates that through the customer’s SLC, we located in rural areas, the SLC ceiling approximate the prices that a conclude that LECs should recover these for non-primary residential and multi- competitive market would produce, best revenues through a flat, per-line charge line business lines will ensure that end- serve the public interest. assessed on the IXC to whom the access user charges are not prohibitive or 43. The rate restructuring we line is presubscribed—the significantly above the national average, implement in this Order results in presubscribed interexchange carrier thereby advancing universal service substantial reductions in the charges for charge, or PICC. Where an end user does goals of affordability and access. We usage-rated interstate access services. not select a presubscribed interexchange have also taken account of concerns These reductions move these access carrier, we allow an incumbent LEC to raised by rural carriers and consumers charges a long way towards their collect this charge directly from the end groups that the increase in the SLC for forward-looking cost levels. user. Further, in order to provide IXCs non-primary residential lines and multi- Furthermore, in addition to these rate with the opportunity to incorporate lines could lead to substantial price structure adjustments, we also take these changes into their business plans, increases in rural areas. Consequently, several steps in this Order to address we set the PICC for primary residential we are adopting these changes only for specific cost misallocations that cause and single-line business lines at not price cap incumbent LECs and will access charges to be set above economic more than the existing flat-rated line review rate structure modifications costs. For example, we require charges for the first year, and we affecting small, rural carriers in a incumbent LECs to make an exogenous gradually increase the ceiling thereafter separate proceeding. cost adjustment to reflect the full until it reaches a level that permits full 40. In summary, the plan we adopt amortization of certain equal access recovery of the common line revenues here phases out significant implicit costs. We also issue a Further Notice of from flat charges assessed to both end subsidies in the access charge rate Proposed Rulemaking to consider our users and IXCs. To the extent that the structure, while taking into account tentative conclusion that certain General PICC ceiling prevents full recovery of universal service concerns of Support Facility (GSF) costs should be average per-line common line revenues affordability and access. The resulting reallocated to detariffed services. 44. We recognize that the prescriptive for primary residential and single-line rate structure is more closely aligned measures that we implement today business lines, the residual amount will with cost principles. Under this plan, represent the first step toward our goal be recovered through the PICC imposed most price cap incumbent LECs will of removing implicit universal service upon non-primary residential and recover their interstate common line revenues through flat-rated SLCs and subsidies from interstate access charges multi-line business lines. As described PICCs. and moving such charges toward in Section III.A below, as the PICC 41. Switching and Transport Charges. economically efficient levels. In the associated with primary residential and Following the same pricing principle NPRM, we identified two separate ways single-line business lines increases, the that flat charges should recover fixed to continue this process in the future— amount of common line revenues costs and variable charges should a prescriptive approach in which we associated with those lines that is recover variable costs, we make several actively set rates at economic cost recovered through the PICC imposed modifications to the rate structure for levels, and a market-based approach upon non-primary residential and switching and transport services. that relies on competition itself to drive multi-line business lines will fall to Among other things, we move the cost access charges down to forward-looking zero. of line-side ports to the common line costs. We conclude in this Order, based 39. For non-primary residential and and require their recovery through flat- on our experience in exchange access multi-line business lines, we conclude rated charges. To the extent permitted and other telecommunications markets that affordability concerns do not by the record, we also direct incumbent and the record in this proceeding, that require us to retain the current ceiling LECs to reassign costs in the Transport a market-based approach to reducing on the monthly SLC. Consequently, we Interconnection Charge (TIC) in order to interstate access charges will, in most raise the SLC ceiling for these lines to comply with principles of cost cases, better serve the public interest. the level that permits incumbent LECs causation and the D.C. Circuit’s recent Although the Commission has full recovery for their common line decision in CompTel v. FCC, 87 F.3d considerable expertise in regulating revenues, but never more than $3.00 522 (D.C. Cir. 1996). telecommunications providers and above the current SLC ceiling for multi- services efficiently for the maximum line business lines today, adjusted for 2. Baseline Rate Level Reductions benefit of consumers, we believe that inflation. The $3.00 increase in the SLC 42. The rate structure changes that we emerging competition will provide a cap for these lines is measured on a per- implement in this Order eliminate some more accurate means of identifying month basis. Almost all subscribers will of the distortions that have implicit subsidies and moving access pay SLCs below, and often substantially characterized the access charge system prices to economically sustainable below, the ceiling. The increase in the for over a decade. These changes, levels. Further, as discussed above, we SLC ceiling for multi-line businesses however, are not alone sufficient to believe that this approach is most will be implemented in the first year. To create a system that accurately reflects consistent with the pro-competitive, ameliorate the impact that a dramatic the true cost of service in all respects. deregulatory policy contemplated by the increase in the SLC ceiling might have To fulfill Congress’s pro-competitive 1996 Act. Accordingly, where 31876 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations competition is developing, it should be the extent possible.’’ Congress most 50. Finally, we adopt in this Order relied upon in the first instance to certainly did not state that we must our earlier tentative conclusion that protect consumers and the public reach that goal by May 8, 1997. Rather, incumbent LECs may not assess interest. it directed that, by that date, we issue interstate access charges on information 45. We acknowledge that a market- rules that ‘‘shall include a definition of service providers (ISPs). We find that based approach under this scenario may the services that are supported by our existing policy promotes the take several years to drive costs to Federal universal service support development of the information services competitive levels. We also recognize mechanisms and a specific timetable for industry, advances the goals of the 1996 that several commenters have urged us implementation.’’ Our companion order Act, and creates significant benefits for to move immediately to forward-looking satisfies that timetable, and this Order the economy and the American people. rates by prescriptive measures utilizing establishes a process that will eliminate With respect to second and additional forward-looking cost models. We some implicit subsidies quickly and residential lines, which are often used decline to follow that suggestion for more gradually eliminate others. by consumers to access ISPs, our goal is several reasons. First, as a practical 48. We are confident that the pro- to move towards price levels and matter, accurate forward-looking cost competitive regime created by the Act structures that reflect underlying costs, models are not available at the present and implemented in the Local and thereby to create a neutral market time to determine the economic cost of Competition Order and numerous state environment in which these lines providing access service. Because of the decisions will generate workable neither give nor receive subsidies. We existence of significant joint and competition over the next several years will address fundamental questions common costs, the development of in many cases, and we would then concerning ISP usage of the public reliable cost models may take a year or expect that access price levels to be switched network as part of a broader more to complete. This situation might driven to competitive levels. We also set of issues under review in a related be contrasted with that addressed in our recognize, however, that competition Notice of Inquiry. See Usage of the Local Competition Order, where we may develop at different rates in Public Switched Network by endorsed the use of cost models to different places and that some services Information Service and Internet Access estimate the cost of providing may prove resistant to competition. Providers, CC Docket No. 96–263, unbundled network elements. There, we Where competition has not emerged, we Notice of Inquiry, 62 FR 4670 (January observed that unbundled elements have reserve the right to adjust rates in the 31, 1997). few joint and common costs, so that future to bring them into line with 51. Section II of this Order provides devising accurate cost models for forward-looking costs. To assist us in an overview of the rate structure unbundled network elements is more that effort, we will require price cap adjustments adopted today. Section III straightforward. LECs to submit forward-looking cost offers detailed explanations of these 46. In addition, even assuming that studies of their services no later than changes, which include adjustments to accurate forward-looking cost models February 8, 2001, and sooner if we the rate structure for the common line, were available, we are concerned that determine that competition is not local switching, transport, SS7, and any attempt to move immediately to developing sufficiently for the market- switching, and modifications to the TIC. competitive prices for the remaining based approach to work. We anticipate In Section IV, we adopt a market-based services would require dramatic cuts in that the tools needed to complete these approach to reducing access charges and access charges for some carriers. Such cost studies will be available soon, well address several specific rate level an action could result in a substantial before this deadline. Indeed, our adjustments. In Section V, we determine decrease in revenue for incumbent Universal Service Order requires which of the changes adopted in this LECs, which could prove highly comparable cost models to be ready by Order should apply to rate-of-return disruptive to business operations, even 1998. We will then review competitive LECs. when new explicit universal support conditions and the submitted cost 52. Section VI touches upon several mechanisms are taken into account. studies. additional issues, including the Moreover, lacking the tools for making 49. As we acknowledged in the applicability of access charges to accurate prescriptions, precipitous NPRM, a market-based approach will unbundled network elements, our action could lead to significant errors in permit and, indeed, require us treatment of terminating access, and the level of access charge reductions progressively to deregulate the access ISPs. We also discuss modifications that necessary to reach competitive levels. charge regime as competition develops. may be needed to reconcile our access That would further impede the In a subsequent order, we will examine charge rules with the Universal Service development of competition in the local specific issues concerning the timing Order released today. In Section VII, we markets and disrupt existing services. and degrees of pricing flexibility. That issue an FNPRM to seek comment on Consequently, we strongly prefer to rely order will identify the competitive proposals to alter the current allocation on the competitive pressures unleashed triggers that must be met to justify of GSF costs and to allow incumbent by the 1996 Act to make the necessary relaxation of specific regulatory LECs to impose a PICC on special access reductions. constraints. We also recognize the need lines. 47. To the extent that some to examine whether incumbent LECs commenters contend that the immediate should be compensated for any II. Summary of Rate Structure Changes elimination of all implicit subsidies is historical costs that they have no and Transitions mandated by the 1996 Act, we disagree. reasonable opportunity to recover as a 53. In rationalizing the switched Neither in the 1996 Act nor its result of the transformation from a access rate structure in this Order, our legislative history did Congress state regulated to competitive marketplace. primary goal is to ensure that traffic- that all forms of implicit universal We recognize that this issue may raise sensitive costs are recovered through service support shall be made explicit difficult questions of both law and traffic-sensitive charges and NTS costs by May 8, 1997. To the contrary, equity, and we intend to respond fully are recovered through flat-rated charges, Congress stated that the conversion of to concerns about historical cost wherever appropriate. Because many implicit subsidies to explicit support is recovery in a subsequent order to be NTS costs are currently recovered a goal that ‘‘should be’’ pursued ‘‘[t]o issued this year. through per-minute charges, the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31877 principal effect of our Order is to reduce lines will be recovered through flat- non-primary residential and multi-line the amount recovered through per- charges on those lines. business lines. As described more fully minute interstate access charges and 58. Non-Primary Residential and below, to the extent that the PICC increase the amounts recovered through Multi-Line Business Lines. Because ceilings prevent full recovery of the flat-rated charges. We phase in these affordability concerns are not as residual TIC, the remaining amount will changes over time to ameliorate any significant for these lines, we permit a be recovered through a per-minute disruptions these adjustments might modest increase in the SLC to permit residual TIC. cause end users. recovery of the price cap LEC’s average per-line common line revenues, but B. Other Rate Structure Changes A. Common Line Rate Structure never to more than $3.00 above the SLC 61. Switching. The traffic-sensitive Changes ceiling for multi-line business lines costs of local switching will continue to 54. Because the cost of using the today, adjusted for inflation. To be recovered through per-minute local incumbent LEC’s common line does not ameliorate the impact that an increase switching charges. increase with usage, the costs should be in the SLC might have on residential 62. For price cap LECs, the NTS costs recovered through flat non-traffic- customers, the increase in the SLC associated with line ports will no longer sensitive fees. In this Order we increase ceiling will be phased in for non- be included in the local switching the amount of common line revenues primary residential lines over several charge, and instead will be recovered recovered through flat-rated charges years. through the flat-rated common line over time until incumbent LECs can 59. We also establish a flat-rated PICC charges discussed above. Price cap LECs recover all of their interstate common on non-primary residential and multi- will also assess a monthly flat-rated lines revenues through NTS fees. line business lines. This PICC will cover charge directly on end users that are 55. Primary Residential and Single- common line revenues that exceed the subscribing to integrated services digital Line Business Lines. We agree with the ceilings on SLCs and primary network services, digital subscriber line, Federal-State Joint Board on Universal residential PICCs. It may also recover or other services that have higher line Service that the SLC ceiling for primary some residual TIC revenues and certain port costs than basic, analog service. residential and single-line business marketing expenses, as discussed below. This charge recovers the amount by lines should not be increased, because We set a ceiling on this PICC in the first which the cost of the line port exceeds a higher SLC could make year of $1.50 for non-primary residential the cost of a line port for basic, analog telecommunications service lines and $2.75 for multi-line business service. Costs of local switching unaffordable for some consumers. To lines, and permit those ceilings to attributable to trunk ports are moved to the extent common line revenues cannot increase gradually thereafter. We a separate service category within the be recovered through the customer’s anticipate that the actual PICC imposed traffic-sensitive basket. These costs will existing SLC, we conclude that LECs upon multi-line business lines will, on be recovered through flat-rated monthly should recover these revenues through a average, decrease from 1998 to 1999, charges collected from users of flat, per-line charge (the ‘‘primary and for every year thereafter, and will dedicated trunk ports and per-minute, interexchange carrier charge’’ or fall to less than $1.00 by 2001. traffic-sensitive charges assessed on ‘‘PICC’’) assessed, not on the end user, 60. To the extent that the ceilings on users of shared trunk ports. The new but on the end user’s presubscribed SLCs and PICCs do not allow recovery rate structure also includes an optional interexchange carrier. Where an end through flat charges of all common line call set-up charge. user does not select a presubscribed revenues, LECs shall be permitted to 63. Transport. Effective July 1, 1998, interexchange carrier, we allow a price impose a per-minute CCL charge the unitary rate structure option for cap LEC to collect this charge directly assessed on originating minutes. To the tandem-switched transmission is from the end user. We set a ceiling on extent that the sum of a LEC’s eliminated and the costs of tandem- the PICC at the level of existing per-line originating local switching charge and switched transmission must be charges for the first year. any residual per-minute CCL, TIC, and recovered through the existing three- 56. In order to give IXCs an marketing expense charges exceeds the part rate structure. For price cap LECs, opportunity to adjust to the new charge, sum of its originating local switching, a new flat-rated monthly charge we gradually increase the PICC ceiling CCL, and TIC charges on December 31, recovers the NTS costs of tandem over the next several years until it 1997, the excess shall be collected switching attributable to dedicated reaches a level that permits full recovery through a per-minute charge on ports. A new per-minute rate element of common line revenues—plus a terminating access. We expect that this recovers the costs of multiplexers used portion of ‘‘residual TIC’’ revenues. To will only apply to a few LECs, and to between tandem switch DS–1 port the extent that the ceiling on the none beyond 1998. As the PICC cap for interfaces and the DS–3 circuits used to primary residential and single-line non-primary residential and multi-line transport traffic from tandem to end business PICC does not allow for full business lines increases—and as offices. For all incumbent LECs, the recovery of these common line revenues revenues transferred from primary formula used to compute the tandem- immediately, the remaining revenues residential and single-line businesses switched transport rate is based on will be recovered through a PICC fall to zero—the per-minute CCL charge actual usage of the circuit, rather than imposed upon non-primary residential will fall to zero, too. Eventually, we an assumed 9000 minutes of use per and multi-line business lines, and anticipate that most, if not all, price cap month. through per-minute charges. LECs will be able to recover the full per- 64. For all incumbent LECs, certain 57. As the PICC ceiling for primary line revenues associated with non- costs currently recovered through the residential and single-line business primary residential and multi-line TIC are reassigned to specified facilities lines increases, the amount of common business lines through the SLC, after charges, including tandem-switching line revenues transferred to non-primary taking into account the assistance rates. For price cap LECs, those costs of residential and multi-line business lines provided through the explicit high-cost the TIC that remain (the ‘‘residual TIC’’) will fall to zero. At that point, all universal service support mechanisms. are recovered through the PICC. To the common line costs for primary In addition, residual TIC revenues will extent that the PICC ceiling prevents residential and single-line business also be recovered through the PICC on recovery of the entire residual TIC 31878 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations through the flat-rated PICC, the Commission emphasized that its long that the SLC, as a charge assessed remaining portion will be collected range goal was to have incumbent LECs directly on local telephone subscribers, through a per-minute residual TIC. As recover a large share of the NTS has an impact on universal service the ceilings on the PICCs increase, a common line costs from end users concerns such as affordability, and larger percentage of the residual TIC instead of carriers, and to recover these recommended that the Commission will be recovered through the PICC. costs on a flat-rated, rather than on a leave the current SLC ceilings in place Beginning in July 1997, price cap usage-sensitive, basis. The Commission for primary residential and single-line reductions will be targeted to the per- recognized, however, that a sudden business lines. In our companion minute residual TIC until it is increase in the flat rates imposed by Universal Service Order, consistent with eliminated. We expect that the per- LECs on end users could have a that recommendation, we conclude that minute TIC charge will be eliminated in detrimental effect on universal service. we should not raise the current $3.50 two to three years. Residual per-minute For this reason, the rules adopted in SLC ceiling on primary residential and TICs shall be assessed only on 1983 apportioned charges for common single-line business lines. incumbent LEC transport customers, line costs between a monthly flat-rated 71. We adjust the SLC ceilings for and therefore shall no longer be end-user SLC and a per-minute CCL multi-line business lines and residential assessed on competitive access charge assessed to the IXCs. The SLC is lines beyond the primary connection. providers (CAPs) that interconnect with based on average interstate-allocated Adjusting the SLC ceilings for multi-line the LEC switched network at the end common line costs, which the business lines and non-primary office. incumbent LEC may average over an residential lines will permit incumbent 65. SS7 Signalling. Price cap LECs entire region or over a study area, LECs to recover directly from end users may, but are not required to, adopt a depending on how it files its interstate more of the common line revenues rate structure for SS7 signalling that tariff. These charges currently are the permitted under our price cap rules for unbundles SS7 signalling functions, as lesser of the per-line average common those lines and will reduce the amount was permitted in the Ameritech SS7 line costs allocated to the interstate of NTS costs related to these lines that Waiver Order. Ameritech Operating jurisdiction or $3.50 per month for are currently recovered through CCL Companies Petition for Waiver of Part residential and single-line business charges. Where the SLC ceilings do not 69 of the Commission’s Rules to users, and $6.00 per month for multi- allow the incumbent LEC to recover its Establish Unbundled Rate Elements for line business users. Any remaining price cap common line revenues SS7 Signalling, Order, DA 96–446 common line revenues permitted under through end-user charges, the (1996) (Ameritech SS7 Waiver Order). our price cap rules are recovered by remaining, or ‘‘residual’’ amount will be 66. Retail Marketing Expense. Price incumbent price cap LECs through per- recovered through flat, per-line charges cap LECs may no longer recover certain minute CCL charges assessed on the assessed to each customer’s marketing expenses through per-minute IXCs, and are ultimately recovered by presubscribed interexchange carrier. access charges assessed on IXCs. These IXCs from end-users through long This presubscribed interexchange expenses are recovered from end users distance toll charges. carrier charge, or ‘‘PICC’’, will increase through per-line charges on second and 69. Because common line and other gradually until the incumbent price cap additional residential lines and multi- NTS costs do not increase with each LECs’’ full interstate-allocated common line business lines, subject to ceilings additional minute of use transmitted line revenues permitted under our price on SLCs. Any residual shall be over the loop, the current per-minute cap rules are recovered through a recovered through the PICCs on these CCL charge that recovers loop costs combination of flat-rated SLCs and lines and then through per-minute represents an economically inefficient PICCs. To the extent that the flat-rated charges on originating access, subject to cost-recovery mechanism and implicit charges do not recover, during the the exception described in Section III.A, subsidy. A rate structure that recovers initial phase, the full interstate-allocated below. NTS costs through per-minute charges common line revenues permitted under creates an incentive for customers to III. Rate Structure Modifications our price cap rules, incumbent LECs underutilize the loop by requiring them may continue to assess the IXCs a per- A. Common Line to pay usage rates that significantly minute CCL charge based on the costs exceed the incremental cost of using the 1. Overview not recovered through flat-rated charges. loop. Additionally, a rate structure that This per-minute charge, however, will 67. In the 1983 MTS and WATS forces high-volume customers to pay be generally much lower than today’s Market Structure Third Report and significantly more than the cost of the CCL charge and will be eliminated once Order, the Commission established a facilities used to service them is not all common line revenues are recovered comprehensive mechanism for sustainable in a competitive through a combination of SLCs and incumbent LECs to recover the costs environment because high-volume associated with their provision of access customers can migrate to a competitive PICCs. service required to complete interstate LEC able to offer an efficient 2. Subscriber Line Charge and foreign telecommunications. The combination of flat and per-minute a. Background access plan distinguished between charges, even if the competitive LEC has traffic sensitive costs and NTS costs the same or higher costs than the 72. In the NPRM we proposed to incurred by an incumbent LEC to incumbent LEC. increase the ceiling on the SLC for provide interstate access service An 70. The Federal-State Universal second and additional lines for incumbent LEC’s NTS costs of providing Service Joint Board stated, in its residential customers, and for all lines interstate access, or costs that do not Recommended Decision, that primary for multi-line business customers, to the vary with the amount of usage, include residential and single-line business per-line loop costs assigned to the the common line, or ‘‘local loop,’’ which lines are essential to the provision of interstate jurisdiction. Access Charge connects an end user’s home or business universal service, and that current rates Reform Notice of Proposed Rulemaking to a LEC central office. for local services are generally in CC Docket No. 96–262, Price Cap 68. In the MTS and WATS Market affordable based on subscribership Performance Review for Local Exchange Structure Third Report and Order, the levels. The Joint Board also concluded Carriers and Transport Rate Structure Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31879 and Pricing, Third Report and Order, in changes to the SLC cap for primary in order to create a rate structure that CC Docket Nos. 94–1 and 91–213 (Price residential and single-line business supports our long-term universal service Cap Third Report and Order), and Usage lines. Primary residential and single- goals, is pro-competitive, and is of the Public Switched Network by line business lines are central to the sustainable in a competitive local Information Service and Internet Access provision of universal service. Because exchange market. Section 254 of the Act Providers, Notice of Inquiry in CC of concerns about affordability, and in requires that all consumers have access Docket No. 96–263, 62 FR 4670 light of the significant changes that are to basic telephone service at just, (December 24, 1996) (NPRM) still underway in this proceeding, in the reasonable, and affordable rates that are Alternatively, we proposed to eliminate federal universal service support comparable among different regions of the ceiling for multi-line business proceeding, and possible future changes the nation. This section of the Act also customers and for residential to the separations process, we conclude requires that universal service support connections beyond the primary that the current SLC for these lines be achieved through support connection, especially where the should not be raised. Consistent with mechanisms that are ‘‘specific, incumbent LEC has entered into the Joint Board’s recommendation and predictable, and sufficient.’’ Because interconnection agreements and taken our conclusion in the Universal Service universal service concerns about other steps to lower barriers to actual or Order, therefore, the ceiling on the SLC ensuring affordable access to basic potential local competition. We sought for primary residential and single-line telephone services are not as great for comment on these proposals. We also business lines will remain at $3.50 or non-primary residential and multi-line invited parties to comment on whether the permitted price cap common line business lines as they are for primary any changes that we adopt to the ceiling revenues per line, whichever is less. residential and single-line business on SLCs for incumbent price cap LECs 74. With regard to multi-line users, lines, we must take action to remove the should be extended to incumbent rate- the Joint Board suggested in its implicit subsidies contained in our of-return LECs, and on the relationship Recommended Decision that universal current interstate access charges. Thus, of any such changes to the Joint Board service support should not be extended we are adopting a rate structure that will Recommended Decision. We sought to non-primary residential lines and permit LECs to recover greater amounts comment on whether to establish a multi-line business lines because it of their costs on a flat-rated basis from transition mechanism for this increase if found that cost of service is unlikely to end users and to reduce the amount of the ceilings on SLCs for multi-line be a factor that would cause multi-line revenues they must recover through per- business lines and residential lines users not to subscribe to telephone minute access charges. Our initial beyond the primary connection are service. Subsequently, the state implementation improves upon the increased and whether such a transition members of the Joint Board filed a current rate structure because it reduces could be implemented consistent with report with the Commission in which subsidies by recovering more costs from section 254, the Act’s universal service they proposed that we retain high cost the cost causer. It also creates a rate provision. We sought comment on support for all lines served in high cost structure that is more pro-competitive whether geographic averaging of SLCs is study areas during a transition to a than the existing one by providing for an implicit subsidy that is inconsistent forward-looking cost methodology. greater flat-rated recovery of NTS costs. with the requirements of section 254(e), Consistent with that proposal, we adopt, Without these modifications, new and thus on whether we are required to in our Universal Service Order, a entrants, which are not subject to the deaverage SLCs. modified version of the existing high- non-cost-causative rate structure cost support system and continue requirements, would be in a position to b. Discussion support for all residential and business target the incumbent LECs’ most 73. The Commission has had the connections in areas currently receiving profitable, high-volume customers based longstanding goal of ensuring that all high cost support until at least January on regulatory requirements. A loss of consumers have affordable access to 1, 1999. We therefore continue to profitable customers would increase the telecommunications services. In its provide high cost support for non- incumbent LECs’ costs of providing Recommended Decision, the Joint Board primary residential and multi-line service to the rest of their customers, stated that current rates for local business lines at this time, by allocating especially to those in high-cost areas. telephone services are generally a lower portion of these costs to the Consistent with our universal service affordable and that the SLC, as a charge intrastate jurisdiction than would assessed directly on local telephone otherwise be the case. In that order, we goal of ensuring that all consumers subscribers, has an impact on universal also express our concern, however, that receive affordable rates that are service concerns such as affordability. providing universal service support for comparable in different parts of the The Joint Board further recommended non-primary residential and multi-line nation, however, the SLC adjustments that the Commission maintain the business lines in high-cost areas may be will be subject to ceilings to prevent current SLC ceilings for primary inconsistent with our long-term end-user customers in high-cost areas residential and single-line business universal service goals, and that overly from paying SLCs that are significantly lines, and we adopt that expansive universal service support higher than in other parts of the recommendation in our companion mechanisms potentially could harm all country. Universal Service Order. Numerous consumers by increasing the expense of 76. In virtually all cases, current SLC parties in this proceeding argue that we telecommunications services for all. We ceilings do not permit incumbent LECs should raise or eliminate the SLC state that we will continue to evaluate to recover their average per-line ceiling on all lines to permit LECs to the Joint Board’s recommendation to interstate-allocated common line costs. recover the full interstate allocated costs limit universal service support to As a result of the existing SLC ceilings, of the local loop from end-users. This primary residential connections and which have been in place for the past would increase the average SLC for all businesses with single connections. decade, incumbent LECs must recover residential and single-line business 75. We conclude here that it is the shortfall through usage-sensitive lines from $3.50 per month to $6.10 per necessary to adjust the ceilings on the CCL charges assessed on IXCs. The IXCs month. We conclude that it would be interstate SLCs on both non-primary in turn recover most or all of these costs inappropriate to make significant residential and multi-line business lines from toll users in the form of per-minute 31880 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations charges, keeping toll rates artificially equal to the ceiling permitted for multi- to this concern, with the limited high and discouraging demand for line business lines. exception of cost allocation to new interstate long distance services. The 79. The data indicate that the long elements, discussed in Section V, high per-minute toll charges also create term ceilings we are establishing will below, we are limiting application of the support flows between different classes permit incumbent price cap LECs to rate structure modifications we adopt in of customers. For example, because end- recover their average per-line common this Order to incumbent price cap LECs user customers vary widely in their use line revenues from 99 percent of their only. Most consumers in rural areas are of interstate long distance services, low- non-primary residential and multi-line served by small rate-of-return LECs that volume toll users do not pay the full business lines. For the few incumbent are not affected by the SLC adjustment cost of their loops while high-volume price cap LECs that have common line we are adopting. We will review rate toll users contribute far more than the costs in certain study areas that exceed structure modifications affecting small, total cost of their loops. In addition the ceiling, the ceiling will serve as an rural carriers in a separate proceeding high-volume toll users, who include economic safeguard for those customers when we address access charge reform significant numbers of low-income who would otherwise pay significantly for those carriers. To the extent there are customers, effectively support non- higher SLCs. We conclude that incumbent price cap LECs that serve primary residential and multi-line maintaining a ceiling for non-primary high-cost areas of the country and have business customers. residential and multi-line business common line costs that exceed the 77. In order to create a rate structure customers in high-cost areas is a national average, we are maintaining a that supports our long-term universal reasonable response to a legitimate ceiling on the SLCs for these lines to service goals, is pro-competitive, and is universal service concern because, ensure that subscribers do not pay rates sustainable in a competitive market, we consistent with section 254(b)(3), it that greatly exceed the national average. modify our rate structure requirements ensures that these customers have 82. We are not persuaded by to permit incumbent LECs to recover access to telecommunication services at arguments that an upward adjustment to costs in a manner that more accurately rates that are comparable to rates a SLC ceiling that was set over a decade reflects the way those costs are incurred. charged for similar services in urban ago, and that has never been adjusted Because common line costs do not vary areas. for inflation, would violate section with usage, these costs should be 80. We believe that the approach we 254(b)’s requirement that consumers in recovered on a flat-rated instead of on adopt should prevent widespread all regions of the nation have affordable a per-minute basis. In addition, these discontinuance of lines by multi-line access to telecommunications and costs should be assigned, where customers. The record indicates that information services at rates that are possible, to those customers who benefit nationwide, the average interstate reasonably comparable to those services from the services provided by the local allocation of common line costs is only provided in urban areas. The data loop. Accordingly, the SLC ceilings for $6.10 per line, and that for more than indicate that if the SLC ceilings for non-primary residential and multi-line half of multi-line business lines, the business and residential lines had been business lines will be adjusted generally interstate common line costs are below adjusted annually for inflation since to a level that permits incumbent LECs the existing $6.00 ceiling. Therefore, they became effective in 1984 and 1989, to recover, directly from the end user, when the SLC ceiling is adjusted July 1, respectively, the $6.00 business SLC their average per-line interstate common 1997, more than half of multi-line ceiling would have increased by 1996 to line revenues. business lines will see no immediate $9.00 per line, and the $3.50 residential 78. For multi-line business lines, the increase in their SLC. The $5.00 SLC and single-line business SLC ceiling SLC will be adjusted to recover the ceiling for non-primary residential lines would have increased to $4.39 per line. average per-line interstate-allocated for the first year is a net increase of Thus, for multi-line business customers, common line costs beginning July 1, $1.50 per month, and the gradual the SLC ceiling we adopt today is not 1997. To the extent incumbent price cap increase, if any, in subsequent years, is significantly different from what it LECs, mostly in rural areas, have designed to allow these customers time would have been, if it had been adjusted common line costs that significantly to adjust to the new rate structure. for inflation annually. Moreover, to exceed the national average, we Moreover, we expect the rate structure adopt a ceiling lower than $9.00 would establish a ceiling on SLCs for multi- modifications we adopt in this order to effectively create an additional line business lines of $9.00, adjusted benefit the majority of multi-line impermissible subsidy for a class of annually for inflation. To ameliorate any customers through reductions in per- customers not enumerated by Congress possible adverse impact of adjustments minute long distance rates. Thus, for in section 254 of the 1996 Act as in SLC ceilings for non-primary many customers, the access beneficiaries of fundamental universal residential lines, we adopt an approach restructuring will lead to an overall service goals. We find that the $9.00 that will gradually phase in adjustments reduction in their telephone bill. We ceiling we adopt today strikes a in the SLC ceilings for these lines. The also note that, because we are adjusting reasonable balance between our desire SLC for non-primary residential lines the SLC on non-primary residential to establish a more efficient interstate will be adjusted initially beginning lines only to a level that recovers the access charge rate structure consistent January 1, 1998. For the first year, average interstate allocated costs with our long-term universal service beginning January 1, 1998, the SLC attributable to the line, to the extent that goals in a competitive local exchange ceiling for non-primary residential lines a customer chooses not to purchase an environment, and the need to avoid will be adjusted to the incumbent LEC’s additional line because of the SLC precipitous rate increases to consumers average per-line interstate-allocated increase, it is because the benefits of the in high cost areas. Although SLCs in costs, but may not exceed $1.50 more second line to that customer are less some areas may ultimately be lower than the current SLC ceiling. Beginning than the average cost of the line. than SLCs in high-cost areas, we January 1, 1999, the monthly SLC 81. Many parties contend that conclude that $9.00 SLCs remain ceiling for these lines will be adjusted adjusting the SLC ceiling for non- ‘‘reasonably comparable’’ to those in for inflation and will increase annually primary residential lines and multi-line urban areas. by $1.00 per-line, until the SLC ceiling business lines will affect economic 83. We are also not persuaded that we for non-primary residential lines is development in rural areas. To respond should maintain the current SLC ceiling Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31881 for non-primary residential lines competitors the higher SLC when the collect the flat-rated charge directly because of claims that incumbent LECs competitor provides a customer with a from end users who have not selected a will be unable to identify second lines second line through resale of an primary interexchange carrier (‘‘PIC’’). for purposes of billing different SLCs to incumbent LEC offering. If prior to the We sought comments on this approach these lines. Additional telephone lines development of full competition, we and also invited parties to discuss any are a well-established find that disparity between SLC charges potential problems created when end- telecommunications product marketed on primary and additional residential user customers have selected PICs, but by LECs. This product is supported by lines becomes a significant problem, we use other IXCs for Internet, fax, a marketing and billing infrastructure will reexamine this issue in conjunction interexchange, or other interstate that will enable LECs to distinguish with further reforms we adopt in an services by ‘‘dialing-around’’ the PIC. non-primary residential lines for upcoming order. 89. We also sought comment on purposes of billing different SLCs. We 86. Certain incumbent LECs have several alternative approaches to the note that we are not defining ‘‘primary’’ requested that any rule that increases per-minute recovery of interstate NTS or ‘‘non-primary’’ lines in this Order. In the SLC ceiling for non-primary loop costs proposed by the Competition a further notice of proposed rulemaking residential lines should be optional for Policy Institute (CPI), including a ‘‘bulk in the Universal Service proceeding, we LECs. We adopt this proposal in part billing’’ method that would assess a will address this issue, and release an and will not require LECs to charge a charge against the IXC based upon its order defining ‘‘primary’’and ‘‘non- higher SLC for non-primary residential percentage share of interstate minutes of primary’’ residential lines by the end of lines. Thus, if an incumbent LEC finds use or revenues, a ‘‘capacity charge,’’ a the year. that charging higher SLCs leads to a ‘‘trunk port charge,’’ and a ‘‘trunk port 84. We are unpersuaded by arguments large number of disconnections, it is and line port’’ charge. We invited that we should forgo these changes on free to charge less. To the extent price parties to comment on whether any the grounds that increasing the SLC cap LECs choose to charge a SLC that is changes that we adopt to the recovery of ceilings for non-primary residential less than the maximum allowed, interstate NTS local loop costs for price lines will create undue incentives for however, they may not recover these cap LECs should be extended to rate-of- subscribers to order their primary lines foregone revenues through the PICC or return LECs, and on the relationship of from the incumbent LEC and their CCL charges. This restriction is interstate NTS loop cost recovery to the additional lines from competitors. The consistent with our current price cap universal service mechanisms proposed changes we adopt in this Order are rules, which prevent LECs from in the Joint Board Recommended intended to permit incumbent LECs to transferring SLC costs to the CCL Decision. We asked parties to address move their prices for non-primary charge. how such an extension to rate-of-return residential and multi-line business lines 87. Several incumbent price cap LECs LECs would affect small business toward more economically efficient argue in favor of deaveraging SLCs, entities, especially small incumbent levels by substantially reducing implicit stating that an averaged SLC creates LECs. subsidies flowing between different cross-subsidies between high-cost and 90. Additionally, we asked parties to classes of customers. Once these low-cost areas, in violation of section address whether an alternative subsidies are eliminated and the new 254 of the Act. We will resolve this mechanism for recovering common line universal service regime is fully issue, along with issues concerning the costs currently recovered through the CCL charge would be necessary if we implemented, incumbent LECs will be timing and degrees of geographic were to eliminate the SLC ceiling for able to recover their common line costs deaveraging, pricing flexibility, and certain lines. We asked interested from customers through a rate structure ultimate deregulation in an upcoming parties to address the extent to which that accurately reflects the manner in order. which these costs are incurred, and any proposed alternative recovery through a targeted, portable universal 3. Carrier Common Line Charge mechanism for recovering common line service contribution where necessary. a. Background costs currently recovered through the At that point, both incumbent LECs and CCL charge would affect small business new entrants should be able to compete 88. Because we are retaining the $3.50 entities, including small incumbent efficiently in the local exchange market. ceiling on SLCs for primary residential price cap LECs and new entrants. We Subscribers, therefore, should not have and single-line business customers, also sought comment on whether an incentive to use other carriers for virtually all price cap LECs will be section 254(g) precludes an IXC from their additional lines unless a unable to recover, through the SLC, all charging its customers the flat, per-line competitor is operating more efficiently of their common line revenues monthly rate assessed on that line if the and can offer local exchange service at permitted under our price cap rules. In amount of that charge varied among a lower rate than the incumbent LEC is the NPRM, we sought comment on customers in different areas within a able to offer. Indeed, the ability of a possible revisions to the current CCL state or among customers in different competitive local exchange carrier to charge structure that would allow states, and if so, whether conditions offer local exchange service at a lower incumbent price cap LECs to recover exist sufficient to require us to forbear rate is precisely the type of competition these NTS common line costs in a way from the application of section 254(g) to envisioned by the 1996 Act: it will that reflects the way costs are incurred. IXC recovery of flat-rate CCL charges. encourage the incumbent LEC to reduce We proposed a recovery mechanism b. Discussion its costs of providing service in order to suggested by the Joint Board in its meet or beat the prices of its Recommended Decision that would 91. The $3.50 SLC ceiling for primary competition. permit incumbent LECs to recover residential and single-line business 85. To address the concerns of some common line costs not recovered from customers prevents most incumbent commenters that charging a higher SLC SLCs through a flat, per-line charge price cap LECs from recovering, through for second and additional residential assessed against each end-user’s end-user charges, all of the common line lines will encourage subscribers to order presubscribed interexchange carrier. revenues permitted under our price cap their additional line from competitors, The Joint Board suggested that the rules. To the extent that common line we will permit LECs to charge Commission allow incumbent LECs to revenues are not recovered through 31882 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

SLCs, incumbent LECs will be allowed support a finding that assessing a charge section 10(a) of the Act, to forbear from to recover these revenues through a on the presubscribed carrier will enforcing section 254(g) as it relates to PICC, a flat, per-line charge assessed on artificially encourage ‘‘dial-around’’ the manner in which IXCs recover their the end-user’s presubscribed traffic to such a degree that we should costs. interexchange carrier. not adopt access charge modifications 96. Section 10(a) of the 1934 Act 92. We adopt the Joint Board’s that will move substantially toward requires the Commission to forbear from recommendation that incumbent LECs efficient pricing for common line applying any regulation or provision of may collect directly, from any customer elements and lower usage charges for the Communications Act of 1934 if: (1) who does not select a presubscribed long-distance service. If evidence enforcement of that provision is carrier, the PICC that could otherwise be appears to us that our rules do unnecessary to ensure that the relevant assessed against the presubscribed substantially contribute to undue use of charges and practices are just and interexchange carrier. Assessing the ‘‘dial-around’’ capabilities to reasonable and not unjustly or PICC directly against end users that do circumvent presubscribed interexchange unreasonably discriminatory; (2) not presubscribe to a long distance services, we stand ready to revisit this enforcement of that provision is carrier should eliminate the incentive issue at a later time. unnecessary to protect consumers; and for customers to access long-distance 94. The rate structure we are adopting (3) forbearance from applying such services solely through ‘‘dial-around’’ calls for the single-line PICC ultimately provision or regulation is consistent carriers in order to avoid paying long- to recover the difference between with the public interest. We conclude distance rates that reflect the PICC. revenues collected through the SLC and that, on the basis of the current record, Several parties argue that this type of the per-line common line revenues for IXCs have not demonstrated that billing arrangement will create primary residential lines and single-line forbearance of section 254(g) is administrative difficulties because it business lines permitted under our price warranted at this time. will require LECs to prorate charges for cap rules. In order to provide incumbent 97. We find that establishing a broad both the end user and the IXC when a LECs and IXCs with adequate time to exception to section 254(g) to permit customer leaves an IXC in the middle of adjust to this rate structure change, we IXCs to pass through flat-rated charges the billing cycle. To avoid any potential cap the PICC for primary residential and on a deaveraged basis may create a administrative difficulties resulting single-line business lines at $0.53 per substantial risk that many subscribers in from customers leaving their month for the first year, beginning rural and high-cost areas may be presubscribed interexchange carriers in January 1, 1998, and establish ceilings charged significantly more than the middle of a billing cycle, we will on increases thereafter. We note that the subscribers in other areas. Accordingly, permit LECs to assess the full PICC at monthly $0.53 PICC is approximately we cannot conclude that enforcing our the beginning of each billing cycle. equal to the current presubscribed per- rate averaging requirement is 93. We recognize that this flat, per- line charges that are assessed to IXCs for unnecessary to ensure that charges are line PICC will not prevent customers the Universal Service Fund and Lifeline just and reasonable. In addition, because from ‘‘dialing around’’ their Assistance plan, which are being assessing subscribers flat-rated charges presubscribed long distance carrier to eliminated in our Universal Service on a deaveraged basis could lead to obtain interstate service. Collecting a Order. Beginning January 1, 1999, the significantly higher rates for subscribers PICC from a customer, however, in and ceiling on the monthly PICC on primary in high-cost areas, we find no basis in of itself, creates no incentive for a residential and single-line business this record to conclude that it is customer to presubscribe to one carrier lines will be adjusted for inflation and unnecessary to enforce section 254(g) to and use ‘‘dial-around’’ service of will increase by $0.50 per year until the ensure protection of consumers or to another. If the presubscribed carrier is sum of the SLC plus the flat-rated PICC protect the public interest. In contrast, an efficient competitor, it should be able is equal to the price cap LEC’s permitted IXCs cite no countervailing public to offer usage-based rates comparable to common line revenues per line. In no interest considerations but merely make the prices of a competitor, thus event shall the sum of the single-line broad, unsupported assertions of the eliminating any artificial benefits of SLC and PICC exceed the sum of the need to deaverage rates in light of the ‘‘dial-around’’ capability. A maximum allowable multi-line SLC and varying PICC amounts expected to be combination of lower per-minute long multi-line PICC. assessed by incumbent LECs. We also distance rates and attractive long- 95. Sprint asserts that if LECs recover note that IXCs now pay access charges distance pricing packages that reward NTS common line costs through that often vary from location to location customers for increasing their usage of deaveraged rates assessed on IXCs, we and from incumbent LEC to incumbent the presubscribed interexchange must forbear from applying section LEC, and still maintain geographically carrier’s services should also help deter 254(g) to the extent it requires an IXC to averaged rates. We therefore conclude customers from using separate long- average geographically any flat charges that, based on the record before us, the distance carriers for various services an IXC passes on to its customers. IXCs have not met the test set forth in solely because of regulation. There is WorldCom asserts that IXCs should be section 10(a) of the Act, and forbearance customer contact value in being a permitted to recover their costs in any of section 254(g) is not warranted. customer’s presubscribed interexchange manner the market will allow, and that 98. We note that we will continue to carrier. Regulators have long concluded unless the Commission forbears with examine the issue of whether conditions that the convenience of making a long- respect to the application of section exist that require us to forbear from distance call by simply dialing ‘‘1+’’ 254(g) to these costs, IXCs that operate application of section 254(g) as it relates conveys certain advantages. And the nationally will be forced to average to recovery of the PICC costs from advantages of ‘‘1+’’ dialing will only together numerous subscribers’ loop subscribers. We will resolve this and increase if, as many predict, we move to costs, and thus use long-distance rates other specific issues concerning the a world in which ‘‘one-stop shopping’’ as a vehicle for cross-subsidies that run timing and degrees of pricing flexibility for a multiplicity of services becomes counter to the overall policies of section and ultimate deregulation in an the primary paradigm for provision of 254 (b) and (c). We conclude that the upcoming order. telecommunication services. We information in the record before us does 99. To the extent that the SLC ceilings conclude that the record does not not demonstrate that we are required, by on all lines and the PICC ceilings on Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31883 primary residential and single-line will increase by a maximum of $1.00 marketing expenses in addition to business lines prevent recovery of the per year for non-primary residential common line revenues. Therefore, full common line revenues permitted by lines and $1.50 per year for multi-line multi-line PICCs may continue to our price cap rules, incumbent price cap business lines, until incumbent LECs recover non-common line revenues, LECs may recover the shortfall through recover all their permitted common line even though SLCs and PICCs for a flat-rated, per-line PICC on non- revenues through a combination of flat- primary residential and single-line primary residential and multi-line rated SLC and PICCs. These increases business lines recover the average per- business lines. The incumbent LECs will cease as the PICCs on primary line common line revenues permitted will calculate this additional charge by residential and single-line business under our price cap rules. If the dividing residual permitted common lines recover more of the common line incumbent LEC’s per-line common line line revenues by the number of non- revenues permitted under price cap revenues permitted by our price cap primary residential and multi-line rules. In addition, as the incumbent rules exceed the SLC ceiling for non- business lines served by the LEC. For price cap LECs increase their PICCs for primary residential lines and multi-line the first year, the ceiling on the PICC primary residential and single-line businesses, the flat-rated charges will will be $1.50 per month for non-primary business lines, they shall reduce the continue to apply to those lines so that residential lines and $2.75 per month amount recovered from the residual per- the sum of the SLCs and flat-rated for multi-line business lines. To the minute CCL charges and reduce their charges is equal to the permitted extent that these PICCs do not recover PICCs on non-primary residential and common line revenues. Once the multi- an incumbent LEC’s remaining multi-line business lines by a line PICC no longer recovers any permitted CCL revenues, incumbent corresponding amount in accordance common line revenues, the calculation LECs will be allowed to recover any with the procedures described below. of the SLC will be changed from the such residual common line revenues While the plan we adopt today does not average per-line interstate allocation of through per-minute CCL charges eliminate, even on a flat-rated basis, revenue requirement to the average per- assessed on originating access minutes. transitional higher rates for business line common line revenues permitted by The per-minute charges shall be users, it redistributes collection from a our current price cap rules. With this calculated based on forecasts of very few high-volume users to business change, the LEC will not be able to originating access minutes as currently users generally. This will permit the recover more than the average per-line provided in our rules. charges to be sustainable while we common line revenues permitted under 100. We generally will not permit finish refining access charges and our price cap rules from any access line. incumbent LECs to recover residual implement a forward-looking cost-based We note that at least one party contends common line revenues through per- universal service mechanism for rural, that under our current rules, certain minute CCL charges assessed on insular, and high cost areas. We also price cap carriers could be required to terminating access minutes, because acknowledge that our plan will require charge negative carrier common line terminating minutes are not likely to be customers with multiple telephone lines charges, if the revenues recovered subject to as much competitive pressure to contribute, for a limited period, to the through the SLC, which continues to be as originating access minutes. As recovery of common line costs that developed on a cost-of-service basis, discussed in Section III.D, below, we are incumbent LECs incur to serve single- exceed the PCI for the common line similarly adopting a rule that requires line customers. We conclude that this basket. This adjustment to the that incumbent LECs be allowed to aspect of the plan is a reasonable calculation of the SLC will solve any recover certain residual transport measure to avoid an adverse impact on such problem. interconnection charge costs through 103. We are concerned that assessing residential customers. access charges assessed on originating PICCs on multi-line business lines may minutes. In placing these various 102. As the PICC ceilings on primary create an artificial and undue incentive residual costs on originating minutes residential and single-line business for some multi-line customers to convert only, however, we do not want to lines increase, the residual per-minute from switched access to special access destroy the salutary effects of our access CCL charge will decrease until it is to avoid the multi-line PICC charges. A charge reforms by creating higher prices eliminated. After the residual per- migration of multi-line customers to for originating minutes than exist under minute CCL is eliminated, incumbent special access could significantly reduce our current access charge rules. To the LECs shall make further reductions due the amount of revenue that could be extent, therefore, that the sum of local to the increase in the PICC ceilings for recovered through per-minute charges, switching charges, the per-minute CCL primary residential and single-line and would result in higher PICCs for the charge, the per-minute residual TIC, and business lines, first to the PICCs on non-primary residential and multi-line any per-minute charges related to multi-line business lines until the flat- business lines remaining on the marketing expenses exceed the current rated PICCs for those lines are equal to switched network. We tentatively sum of local switching charges and the the flat-rated PICCs for non-primary conclude that we should therefore apply per-minute CCL charge and TIC residential lines. Thereafter, incumbent PICCs to purchasers of special access assessed on originating minutes, the LECs shall apply the annual reductions lines as well. The NPRM, however, may excess may be recovered through to both classes of customers equally not have provided sufficient notice to charges assessed on terminating until the combined SLC and PICCs for interested parties that we might apply minutes. We emphasize that any such primary residential and single-line certain rate structure modifications to amounts recovered through charges business lines recover the full average special access lines. We therefore seek assessed on terminating minutes would per-line common line revenues comment on this issue in Section VII.A, be temporary and would be phased out permitted under our price cap rules, and below. as the non-primary residential SLC the additional flat-rated PICCs on non- 104. We reject claims that a flat-rated, ceilings and the PICC ceilings are primary residential and multi-line per-line recovery mechanism assessed adjusted, and in any event, no later than business lines no longer recover on IXCs would be inconsistent with July 1, 2000. common line revenues. As discussed in section 254(b) which requires ‘‘equitable 101. Beginning January 1, 1999, the Sections III.D and IV.D, below, the PICC and nondiscriminatory contribution to PICC will be adjusted for inflation and will recover TIC revenues and certain universal service’’ by all 31884 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations telecommunications providers. The with any remaining legal issues relating the same PCI formula to the common PICC is not a universal service to the recovery of these revenues. In line basket that we use for the other mechanism, but rather a flat-rated addition, the plan we are adopting baskets if we were to adopt a TFP-based charge that recovers local loop costs in allows incumbent price cap LECs to X-Factor. Price Cap Performance Review a cost-causative manner. Numerous recover costs in the manner that reflects for Local Exchange Carriers, CC Docket commenters responding to the NPRM the way in which they are incurred. We No. 94–1, Further Notice of Proposed support a flat-rated cost recovery believe that this realignment of rates Rulemaking, 60 FR 52362 (October 6, mechanism, and we conclude that the with costs will reduce the per-minute 1995) (Price Cap Fourth Further NPRM). PICC is preferable to the other proposals access charges assessed on IXCs and We also invited comment on whether made in the NPRM. We agree with MCI benefit consumers through lower long- we could eliminate g/2 from the and the Minnesota Independent distance rates, as well as create a pro- common line formula if we retain a Coalition that proposals based on the competitive local exchange market in separate common line formula. In this number of trunks or ports that an IXC which LECs will be able to compete Order, we adopt a plan that should purchases from the incumbent LEC may more efficiently. quickly convert the CCL charge from a encourage IXCs to use fewer trunks or per-minute charge to a flat-rated per-line 4. Common Line PCI Formula ports than are needed and thereby have charge assessed on interexchange an adverse effect on service quality. We a. Background carriers. We also revise the common line decline to adopt the bulk billing 106. When we adopted price cap formula to reflect the phase out of the approach set out in the NPRM, as well regulation in 1990, we established a CCL charge. as Ameritech’s proposed Loop/Port separate common line basket in order to b. Discussion Recovery charge and the approach balance the price cap goal of proposed by the Competition Policy 108. We conclude that the separate economically efficient prices with common line PCI formula should be Institute, because these mechanisms are important goals, such as universal substantially affected by usage and do eliminated, and that the PCI formula for service, that were reflected in common the traffic-sensitive and trunking baskets not reflect the NTS manner in which line rates prior to the adoption of price common line costs are incurred. The should be used for the common line caps. Because common line costs are basket, once traffic-sensitive CCL Alliance for Public Technology’s non-traffic sensitive, growth in demand proposed ‘‘facilities charge,’’ which is a charges have been eliminated. In this leads to a reduction in average per- Order, we have reduced substantially hybrid system that accounts both for minute common line charges. Therefore, traffic-sensitive CCL charges, and level of use and intensity of use by all in the LEC Price Cap Order, we replaced them with the per-line PICC. telecommunication carriers that use the established a price cap index (‘‘PCI’’) The remaining traffic-sensitive CCL local network, is flawed because it is formula for the price cap basket that charges imposed by incumbent price based partly on usage and is complex differed from the PCI formula we cap LECs will be reduced and then and administratively burdensome. A established for the other three baskets, eliminated over the next two or three cost-recovery mechanism that recovers to ensure that carrier common line years. Once common line costs are common line costs through flat-rated charges declined as common line recovered solely through per-line charges imposed on end-user customers demand increased. Policy and Rules charges, increased minutes will not and IXCs is an administratively simple Concerning Rates for Dominant Carriers, affect common line recovery. Therefore, mechanism. Further, under our plan, CC Docket No. 87–313, Second Report when the traffic-sensitive CCL charges interstate common line access charges and Order, 55 FR 42375 (October 19, have been eliminated, it will no longer will become more closely aligned with 1990) (LEC Price Cap Order). be necessary to ensure that CCL rates allocated interstate costs than they Specifically, we added a term, ‘‘g/2,’’ to decline as per-minute demand would be under any of the alternative the common line PCI formula, to increases. Incumbent price cap LECs proposals. represent half the growth in demand per that no longer assess per-minute CCL 105. The plan we describe above line in the prior year. This adjustment charges will use the same PCI formula should move us from the pricing was made because we originally for the common line basket as they use scheme that has been in place for more concluded that both LECs and IXCs for the traffic-sensitive and trunking than a decade to a flat-rated pricing have the ability to influence common baskets. scheme that seeks to promote line growth, and that both LECs and 109. In the LEC Price Cap Order, we competition, while balancing universal IXCs should benefit from increases in established ‘‘g/2’’ as the common line service considerations. We recognize demand. PCI formula because we believed that that the modifications we adopt in this 107. In the LEC Price Cap because both LECs and IXCs contributed Order do not eliminate all the existing Performance Review, we found that to encouraging common line demand support flows. The modifications, incumbent LECs in fact have little growth, both LECs and IXCs should however, do move to eliminate influence over per-minute common line share in the benefits of common line subsidies built into the current rate demand, and tentatively concluded that demand growth. In the LEC Price Cap structure, to an extent that is compatible we should remove the ‘‘g’’ term from the Performance Review, we tentatively with preserving the universal service common line formula, because concluded that IXCs contributed more goals of providing support to primary including an industry-wide moving to common line demand growth, but residential and single-line business and average X-Factor in the common line declined to revise the common line to customers in high-cost areas pursuant formula might tend to double-count formula at that time because we were to the mandate of section 254. As we set demand growth. Price Cap Performance contemplating eliminating the common final support levels for universal Review for Local Exchange Carriers, CC line PCI formula completely, and service, address any legal issues related Docket No. 94–1, First Report and because we did not wish to create to the transition from embedded to Order, 60 FR 19526 (April 19, 1995) unnecessary rate churn. To avoid forward-looking economic costs, and (LEC Price Cap Performance Review). unnecessary rate churn here, we decide factor in the development of We sought comment, in the Price Cap to retain ‘‘g/2’’ while carriers continue competition, we will identify and deal Fourth Further NPRM, whether to apply to charge per-minute CCL charges. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31885

110. We revise sections 61.45(c) and grade-equivalent channels and a presented in the ISDN SLC NPRM 61.46(d), which govern the common line signalling/data channel over an ordinary included: (1) basing the application of PCI and API, respectively, to reflect our local loop, which generally is provided SLCs on a ratio of the average LEC cost revisions to the common line rate over a single twisted pair of copper of providing a derived channel service, structure in the common line PCI wires. PRI service allows subscribers to including the trunk or line card costs, to formula. First, we redesignate section obtain 23 voice-grade-equivalent the average cost of providing an 61.45(c) as 61.45(c)(1) and adopt a new channels and one data signalling ordinary local loop or T–1 facility; (2) section 61.45(c)(2) that requires price channel over two pairs of twisted applying one SLC for every two derived cap LECs to use the separate common copper wires. BRI service generally is channels; (3) reducing the number of line formula only while they continue to used by individuals and small SLCs applied to derived channel charge per-minute CCL charges. Section businesses, and PRI service generally is services while increasing slightly the 61.45(c)(2) also states that the common used by larger businesses. LEC services SLC rates; or (4) giving LECs flexibility line PCI will be governed by the same other than ISDN use derived channel concerning the number of SLCs they PCI formula LECs use for the traffic- technology to provide multiple channels assess for derived channel services, at sensitive and trunking baskets. Second, over a single facility. The LECs also use the same time adjusting the price cap we redesignate section 61.46(d) as derived channel technologies within rules to prevent an increase in CCL 61.46(d)(1), and amend section their networks, for example, to provide charges. 61.46(d)(1) to recognize that LECs now customers with individual local loops. 113. In addition to the comments filed impose PICC charges as well as CCL In such situations, the end user has not in response to the ISDN SLC NPRM, charges on IXCs. We also adopt a new generally requested derived channel several BOCs provided data on the section 61.46(d)(2) to govern PICC service and thus most likely is not relative NTS costs of single and derived charges once per-minute CCL charges aware that the LEC is using this channel services. The cost data included have been phased out. These revisions technology. information about all NTS cost are set forth in Appendix C of this 112. On May 30, 1995, we released a components, including components Order. Notice of Proposed Rulemaking seeking located in the central office, such as line 5. Assessment of SLCs and PICCs on comment on the application of SLCs to cards. As shown in Table 1 below, the Derived Channels ISDN and other derived channel cost data indicates that the ratio of NTS services. End User common Line loop costs of BRI ISDN to standard a. Background Charges, CC Docket No. 95–72, Notice of analog service is approximately 1 to 1. 111. Integrated services digital Proposed Rulemaking, 60 FR 31274 The ratio of NTS loop costs of PRI ISDN network (ISDN) services permit digital (June 14, 1995) (ISDN SLC NPRM). In to standard analog service, excluding transmission over ordinary local loops the ISDN SLC NPRM, we noted that our NYNEX’s data, is approximately 5 to 1. through the use of advanced hardware current rules, which assess one SLC per As shown in Table 2, NYNEX’s data and software. ISDN offers data derived channel, may discourage appear to be outliers because the ratios transmission at higher speeds and with efficient use of ISDN services, and we of its outside plant and NTS costs for greater reliability than standard analog sought comment on several options, PRI ISDN to standard analog service are service. Most incumbent LECs currently ranging from continuation of the current almost twice those of other incumbent offer two types of ISDN service, Basic rules applying one SLC to each derived LECs. NYNEX’s data, therefore, are Rate Interface (BRI) service and Primary channel to requiring LECs to assess one excluded from the calculation of the Rate Interface (PRI) service. BRI service SLC per each pair of copper wires or average ratio for PRI ISDN to standard allows a subscriber to obtain two voice- each physical facility. Other options analog service.

TABLE 1.ÐRATIO OF COSTS OF STANDARD ANALOG SERVICE TO BRI ISDN SERVICE

Outside plant (loop only) All NTS costs costs

Ameritech ...... 1:1.07 1:1.45 Bell Atlantic ...... 1:1.01 1:1.36 NYNEX ...... 1:0.85 1:1.23 Pacific Bell ...... 1:1.05 1:1.13 US West ...... 1:0.80 1:1.07 Average ratio of costs ...... * 1:0.96 * 1:1.24 * Averages may differ due to rounding.

TABLE 2.ÐRATIO OF COSTS OF STANDARD ANALOG SERVICE TO PRI ISDN SERVICE

All NTS Outside plant (loop costs (ex- Outside plant (loop only) only) costs (excluding All NTS costs cluding costs NYNEX data) NYNEX data)

Ameritech ...... 1:5.68 1:5.68 ...... 1:8.9 1:8.9. Bell Atlantic ...... 1:4.13 1:4.13 ...... 1:15.80 1:15.80. NYNEX ...... 1:10.94 Excluded ...... 1:27.74 Excluded. Pacific Bell ...... 1:4.67 1:4.67 ...... 1:8.70 1:8.70. US West ...... 1:5.33 1:5.33 ...... 1:10.60 1:10.60. 31886 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

TABLE 2.ÐRATIO OF COSTS OF STANDARD ANALOG SERVICE TO PRI ISDN SERVICEÐContinued

All NTS Outside plant (loop costs (ex- Outside plant (loop only) only) costs (excluding All NTS costs cluding costs NYNEX data) NYNEX data)

Average ratio of costs ...... * 1:6.5 1:4.95 * ...... * 1:15.13 1:10.5 *. * Averages may differ due to rounding.

114. We incorporated by reference, in costs of single-channel analog service. of providing PRI ISDN service, the current proceeding, all pleadings Therefore, we here amend our rules to excluding switching costs, reflect a cost filed in response to the 1995 ISDN SLC provide for a SLC rate for BRI ISDN ratio of approximately 5:1 compared to NPRM, as listed in Appendix A of that service equal to the incumbent LEC’s NTS loop costs of single-channel analog order. In the NPRM for the current average per-line interstate-allocated service. Because the PICC recovers NTS proceeding, we invited comments on common line costs, subject to the same common line costs not recovered the effect of the 1996 Act on ceilings otherwise applicable to non- through the SLC, prohibiting incumbent determining how many SLCs should be primary residential lines. Thus, LECs from charging as many as five applied to ISDN services. We also beginning January 1, 1998, the SLC PICCs for PRI ISDN service could sought comment on whether mandatory ceiling for BRI ISDN service will be set prevent them from recovering the rate structures or rate caps should be at the lesser of the incumbent LEC’s common line costs associated with prescribed for ISDN service or other average per-line interstate-allocated providing PRI ISDN service in cases derived channel services. costs, or $5.00. Each subsequent year, where the common line costs exceed the beginning January 1, 1999, the SLC b. Discussion SLC ceiling. ceiling will be adjusted for inflation and 119. Incumbent LECs shall assess 115. Consistent with the goal of this increased by $1.00 per line, until the PICCs on BRI and PRI ISDN services in Order of realigning cost recovery in a ceiling equals that permitted for multi- conjunction with those on the non- manner that more closely reflects the line business lines. primary residential and multi-line manner in which those costs are 117. The cost data submitted by the business lines. For the first year, the BRI incurred, we conclude that we should BOCs in response to our request for ISDN PICC will be capped at $1.50 per establish separate SLC rates for ISDN information includes information about month, and the PRI ISDN PICC will be service based on the NTS loop costs of all NTS cost components, including capped at $2.75 per month. Each BRI and PRI ISDN service. We agree components located in the central subsequent year these two PICCs shall with the majority of commenters that a office, such as line cards and trunk increase by no more than an inflation SLC for ISDN service equal to a SLC for cards. The data confirm that line cards adjustment, plus $1.00 and $1.50, single-channel analog service multiplied and trunk cards for PRI ISDN service in respectively. by the number of derived channels particular constitute a significant exceeds the NTS costs of ISDN service portion of the total NTS costs that are 120. The record does not contain and therefore artificially discourages dedicated to the provision of service to sufficient information to enable us to efficient use of ISDN. We find that the subscriber, and that ISDN line cards determine the relative NTS costs of basing ISDN SLCs on relative costs is and trunk cards are many times more derived channel services other than most likely to assign costs of ISDN expensive than the cards used for ISDN. We therefore limit our decision to service to customers who subscribe to, standard analog service. As discussed in BRI and PRI ISDN service. We agree and benefit from, that service. Further, Section III.B, below, LECs will be with NYNEX that we should not apply we find that the current SLC-per- required to recover the difference the rules we adopt here regarding SLCs derived channel rule requires LECs to between the cost of an ISDN line card when the LEC uses derived channel assess charges that are not related to the and the cost of a line card used for technology but the end user has not NTS costs of the service provided. basic, analog service through a separate requested derived channel service. 116. As set out above, the record charge assessed directly on ISDN end Unless a subscriber orders ISDN or indicates that the NTS loop costs of PRI users. For purposes of determining the another service that requires derived ISDN service, excluding switching costs, rate levels for ISDN SLCs, therefore, we channel technology, we see no reason to reflect a cost ratio of approximately 5:1 considered only the NTS loop costs vary from our general rule that the compared to the NTS loop costs of associated with providing ISDN service. incumbent LEC should charge one SLC single-channel analog service. We 118. As with other non-primary for each channel regardless of how it is therefore conclude that we should residential and multi-line business provisioned. amend our rules to establish, effective lines, incumbent price cap LECs may 121. We are not persuaded by July 1, 1997, a SLC rate for PRI ISDN assess flat-rated PICCs on ISDN service PacTel’s argument that ISDN service is service equal to five times the to the extent necessary to recover the not an interstate service and should not, incumbent LEC’s average per-line shortfall of common line revenues therefore, be regulated by the interstate-allocated common line costs, caused by SLC ceilings. Incumbent price Commission. ISDN lines are not directly subject to a ceiling of five times $9.00, cap LECs are permitted to assess one assigned to the intrastate jurisdiction, adjusted annually for inflation. PICC for BRI ISDN service and five but are treated as common lines. The Similarly, the record shows that the PICCs for PRI ISDN service. It is Commission’s jurisdiction thus includes NTS loop costs of BRI ISDN service, necessary for incumbent LECs to be able the interstate-allocated portion of the excluding NTS switching costs, when to assess up to five PICCs on PRI ISDN costs of the ISDN lines. The rules we rounded to the nearest half SLC, reflect service because, as discussed above, the adopt in this order govern only the a 1:1 cost ratio relative to the NTS loop record indicates that the NTS loop costs manner in which LECs recover the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31887 interstate-allocated common line costs facilities should consist of usage- of shared trunk ports that they do not associated with providing ISDN service. sensitive, flat-rated, or a combination of use, price cap LECs must also establish 122. Before the Commission initiated both flat-rated and usage-sensitive rate a usage-sensitive rate element for CC Docket No. 95–72, Bell Atlantic, elements. We asked commenters to recovery of the costs of shared trunk Pacific Bell, GTE, Cincinnati Bell, U S recommend methods of identifying non- ports. The costs of these shared trunk West, and Bellsouth sought waivers of traffic-sensitive (NTS) local switching ports will be recovered on a per minute- Section 69.104 of the Commission’s costs. of-use basis from users of common rules as it applies to ISDN service. In transport trunks terminating at these b. Discussion their petitions, these LECs urged the ports. We therefore add a separate Commission to amend its rules 125. We conclude that, consistent category for all trunk port costs within regarding the application of SLCs to with principles of cost-causation and the traffic sensitive basket, 47 CFR ISDN service. We have amended our economic efficiency, NTS costs § 61.42(e)(1). As with the other rules regarding the application of SLCs associated with local switching should categories within this basket, the ‘‘trunk to ISDN service. We therefore dismiss be recovered on a flat-rated, rather than ports’’ category will have an upper the waiver petitions of Bell Atlantic, usage sensitive, basis. The record before service band index of +5 percent and no Pacific Bell, GTE, Cincinnati Bell, U S us indicates clearly that the costs of the lower service band index. West, and Bellsouth on the grounds that line side port (including the line card, 128. We do not establish a fixed they are moot. protector, and main distribution frame) percentage of local switching costs that are NTS. We conclude, therefore, that incumbent LECs must reassign to the B. Local Switching these costs should be recovered through Common Line basket or newly created 1. Non-Traffic Sensitive Charges flat-rated charges. Accordingly, for Trunk Cards and Ports service category price-cap LECs, we reassign all line-side a. Background as NTS costs. In light of the widely port costs from the Local Switching rate varying estimates in the record, we 123. The local switch connects element to the Common Line rate conclude that the NTS portion of local subscriber lines both with other local elements. For price cap companies, switching costs likely varies among LEC subscriber lines and with interoffice these costs will be recovered through switches. Accordingly, we require each dedicated and common trunks. A local the common line rate elements, price cap LEC to conduct a cost study switch consists of (1) an analog or including the SLC and flat-rated PICC, to determine the geographically- digital switching system; and (2) line described above. averaged portion of local switching and trunk cards, which connect 126. LECs incur differing costs for line costs that is attributable to the line-side subscriber lines and interoffice trunks, ports used in the provision of different ports, as defined above, and to respectively, to the switch. Because all services. The SLC and PICC cost dedicated trunk side ports. These of this equipment is deployed within recovery mechanisms will recover only amounts, including cost support, should the central office, all of its costs are the cost of a line port used to provide be reflected in the access charge assigned to the central office switching basic, analog service, whether the end elements filed in the LEC’s access tariff accounts of the Commission’s Uniform user has basic, analog service, or effective January 1, 1998. Once System of Accounts and to the local another form of service. As discussed established, this service category, like switching category of central office above, data submitted in response to the all others in the traffic sensitive basket, expenses for jurisdictional separations ISDN SLC NPRM show that ISDN line shall be subject to price cap adjustments purposes. 47 CFR §§ 32.2001(j), 36.125. cards cost significantly more than line for inflation and productivity. Although The interstate portion of these costs is cards associated with a basic, analog, some LECs have obtained authority to currently recovered through per-minute subscriber line. To the extent that the geographically deaverage transport rates local switching charges levied on IXCs. costs of ISDN line ports, and line ports under a zone density pricing plan, 47 CFR § 69.106. associated with other services, exceed because the costs of trunk ports will 124. In the NPRM, we observed that the costs of a port used for basic, analog remain within the Traffic Sensitive a significant portion of local switching service, price cap LECs will recover this basket, we conclude that trunk port costs may not vary with usage. For excess amount through a separate end- costs should remain geographically example, the cost of line cards or line- user charge. averaged for now. We will consider side ports appears to vary with the 127. We conclude that the costs of a deaveraging of these costs in connection number of loops connected to the dedicated trunk port (including the with our assessment of other forms of switch, not with the level of traffic over trunk card and DS1/voice-grade pricing flexibility in a subsequent Order the loops. We tentatively concluded that multiplexers, if needed) should be in this proceeding. LECs should not recover these costs recovered on a flat-rated basis because 129. We direct all price cap LECs to through per-minute charges. Instead, we these costs are also NTS in nature. include in their tariff filings tentatively concluded that it is more These costs should be recovered from implementing this Order an exogenous reasonable and economically efficient to the carrier purchasing the dedicated downward adjustment to the Traffic recover costs of equipment dedicated to trunk terminated by that port. Similarly, Sensitive basket, 47 CFR § 61.42(d)(2), individual customers, such as line-side we conclude that the costs of shared and corresponding exogenous upward ports and trunk ports associated with trunk ports should be recovered on a adjustment to the Common Line dedicated transport, through flat-rated per-minute of use basis from the users Interstate Access Elements basket, 47 charges. Trunk-side ports not associated of common transport trunks. We CFR § 61.42(d)(1) to reflect the recovery with dedicated transport and the central therefore establish two separate rate of the interstate NTS costs of line-side processing portion of the switch, on the elements for recovery of these costs. ports from the Common Line rate other hand, are shared among multiple Price cap LECs may recover the costs of elements. carriers. We asked if these costs are each dedicated trunk port on a flat-rated 130. USTA, SNET, and BA/NYNEX driven by usage or by the number of basis from the purchaser of the argue that we should not codify any lines and trunks served by the switch. dedicated trunk terminating at the port. specific local switching rate elements. We sought comment on whether rate In order to ensure that these purchasers We disagree. In the NPRM, we proposed structures for shared local switching of dedicated trunks do not pay the costs to eliminate local switching rate 31888 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations elements only when an actual discretionary, interstate and intrastate Market Structure, CC Docket No. 78–72, competitive presence is established for access services, and other Report and Order, 52 FR 17228 (May 6, an exchange access service in a relevant telecommunications revenues that will 1987). geographic area, as measured by (1) be used with either a cost model or a 134. On the other hand, economic demonstrated presence of competition; cost study to determine the level of efficiency will be increased if local (2) full implementation of competitively support carriers will receive for lines in switching costs (regardless of the neutral universal service support a particular geographic area.’’ We find jurisdiction to which they are assigned) mechanisms; and (3) credible and that it would be inconsistent with the are recovered through a combination of timely enforcement of pro-competitive Joint Board’s recommendation if we flat charges for NTS costs and traffic rules. We tentatively concluded in the were to mandate recovery of NTS local sensitive charges for the remainder. NPRM that, in the absence of actual switching costs directly from universal Because, at the time that the competition, the mere availability of service support mechanisms, Commission established the current unbundled network elements under independent of the revenue benchmark, jurisdictional separations process, it did efficient rate structures would not and the percentage of high cost support not consider the distinction between the provide incumbent LECs with sufficient recoverable from the federal universal switch and the port that we address incentive to adopt efficient, cost- service mechanisms at this time. today, the current jurisdictional causative access rate elements or 133. In allocating costs between the separations process does not distinguish structures. The record before us intrastate and interstate jurisdictions, port costs from the costs of the local switch itself. 47 CFR 36.125(b). We have indicates that flat-rated pricing for line the Commission consults with the states the authority and obligation, ports and dedicated trunk ports is through the operation of the Joint Board independent from the Joint Board, to efficient, and reflective of cost on Separations. See 47 U.S.C. sec. establish appropriate rate structures for causation. We will first amend the 410(c); Amendment of Part 67 of the recovering the costs the jurisdictional baseline switched access rate structure Commission’s Rules and Establishment separations process allocates to the to reflect this determination. Then, in a of a Joint Board, CC Docket No. 80–286, interstate jurisdiction. E.g., 47 U.S.C. subsequent Report and Order in this Notice of Proposed Rulemaking and secs. 151, 152, 154(i–j). We take steps docket, we will determine when and Order Establishing a Joint Board, 45 FR under what circumstances we will allow today to address the fact that the costs 41459 (June 19, 1980). It is not incumbent LECs greater flexibility in of line ports and dedicated trunk ports necessary to await action by the Joint designing interstate access rate are more properly recovered for Part 69 Board on Separations before revising the structures. purposes from the Common Line and 131. In addition, despite arguments recovery mechanisms applicable to the Direct-Trunked Transport rate elements from BA/NYNEX to the contrary, we interstate portion of the costs attributed as NTS charges, instead of from the find that the benefits to be gained from to line ports and dedicated trunk ports. traffic sensitive Local Switching a more efficient, cost-causative rate Our revision of the mechanisms used to element. We will, however, examine structure outweigh the burden of recover the interstate portion of the any jurisdictional separations issues establishing these flat-rate elements. costs in Part 32 local switching accounts presented by NTS switching costs in our Independent estimates from Cable & that the jurisdictional separations upcoming separations Notice of Wireless and USTA, both using NYNEX process allocates to the interstate Proposed Rulemaking. data, indicate that as much as, or even jurisdiction will have no direct effect on 135. Costs may vary for shared local more than, half of local switching costs that allocation because these costs will switching facilities according to the may be NTS. Since the current, per- continue to be separated in Part 36 number of lines connected, or the traffic minute rate structure for the local based on relative dial-equipment- over those lines. In the former case, the switch was established, digital switches minutes of use. The fact that local costs of the shared facility may be have become increasingly predominant switching costs are apportioned recovered in the most cost-causative in the network. Given USTA’s estimate between jurisdictions based on a manner by imposing a proportionate that six percent of the costs of an analog relative interstate and state usage is share of the costs on each line while, in switch and 51 percent of the costs of a irrelevant to the choice of pricing the latter case, usage-sensitive charges digital switch are NTS, we find that structure for recovering those costs, may better reflect cost causation. With local switching costs have become however. Economic efficiency does not respect to such shared local switching increasingly NTS and now warrant the require the jurisdictional separation of facilities, including the switching creation of a NTS recovery mechanism. NTS costs be based on an NTS (flat) matrix and shared trunk ports, we gave Including NTS local switching costs in factor. The jurisdictional separations states flexibility in our interconnection per-minute access charges contributes process only determines whether the proceeding to establish either per- significantly toward unnecessarily high billed charges (flat or variable) are minute usage charges, or flat-rated per-minute long distance rates for all characterized as intrastate or interstate. charges, as appropriate. Local customers. Restructuring rates to reflect Economic efficiency does require that Competition Order. In the access more accurately cost-causation will NTS costs, regardless of how they are context, however, we will continue to promote competition, reduce per- separated, be recovered in each require price cap incumbent LECs to minute charges, stimulate long-distance jurisdiction through flat charges. Thus, recover the costs of shared local usage, and improve the overall there was no loss of economic efficiency switching facilities, including the efficiency of the rate structure. when the Commission, agreeing with central processor, switching matrix, and 132. We also reject proposals to the recommendation of the Joint Board, shared trunk ports, on a per-minute recover the entire NTS portion of local simplified the separation of local basis. On the basis of the information in switching costs from the new universal switching by eliminating the former the record before us, it would be service support mechanisms. In the distinction between NTS and traffic- difficult to identify the NTS and traffic- Universal Service Order, we agreed with sensitive costs and creating a single sensitive portions of the costs of shared the Joint Board that we should establish switching category that is assigned to switching facilities and to verify the a ‘‘nationwide benchmark based on the jurisdictions based on dial accuracy of LEC studies attempting to average revenues per line for local, equipment minutes. MTS and WATS do so. Therefore, until we gain more Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31889 experience with rate structures for the California Commission that, when uncompleted call attempts,’’ citing the unbundled network elements that are the call is handed off to the IXC’s POP, Commission’s decision in VIA USA, Ltd, implemented pursuant to Sections 251 the incumbent LEC’s switches and 10 FCC Rcd 9540, 9545 (1995). The text and 252 and that segregate these costs signalling network have performed their cited from that order, however, into traffic-sensitive and NTS functions and the incumbent LEC has addresses only customer expectations components, we will continue to adhere incurred the full cost of call setup. We that have arisen because our current to the current, per-minute rate structure also permit incumbent LECs to impose rules make no explicit provision for the for shared switching facilities. a setup charge for terminating calls recovery of costs of an uncompleted received from an IXC’s POP, whether or call. We now find that a call setup 2. Traffic Sensitive Charges not that call is completed at the called charge, assessed to an IXC, should not 136. In the NPRM, we sought location, because the incumbent LEC be prohibited because a rate structure comment on several alternative rate signalling network in either case must that recovers some switching costs structures for recovery of usage- perform its setup function. through a per-call setup charge on all sensitive local switching costs. 139. We conclude that the call setup call attempts is more cost-causative than Specifically, we sought comment on charge should not be mandatory because one limited to the recovery of costs only whether the Commission should require some incumbent LECs may determine from completed calls. or permit LECs to establish a separate that call setup costs either are in fact de 142. Still other commenters argue charge for call setup, and if so, whether minimis or are otherwise outweighed by that, if we permit call setup charges to the charge should be levied on all call the costs of the network and operations be imposed for call attempts, we will, at attempts, or only completed calls. We support systems (OSS) upgrades best, open the door to unauditable also sought comment on whether the necessary to install measurement and billing errors or, at worst, facilitate Commission should require or permit billing systems. In such cases, it would incumbent LEC fraud and duplicity. incumbent LECs to establish peak and be economically inefficient to mandate These commenters argue that the off-peak pricing structures for shared a separate call-setup charge because the incumbent LEC will be able to generate local switching facilities, and whether costs of collecting the charge might additional revenue, or degrade the the existing per-minute rate structure exceed the revenue collected from the service of IXC competitors, by blocking adequately reflects the manner in which charge itself. We are aware that, by calls at its own switch. Based on this traffic-sensitive local switching costs are making the call-setup charge permissive record, we conclude that these concerns incurred. only, we may allow certain incumbent are not well-founded. By permitting a a. Call Setup Charges LECs’ rate structures to continue to setup charge only for originating call subsidize short-duration calls. We attempts that are handed off to the IXC’s 137. Among price cap carriers today, nevertheless conclude that we should POP, we minimize the originating most call setup is performed with out- not mandate separate collection of a incumbent LEC’s incentive to engage in of-band signalling, generally using the call-setup charge in cases where the LEC this type of activity because the SS7 signalling network. In light of the determines that the costs of eliminating incumbent LEC will receive no widely varying estimates of the costs of this subsidy exceed the benefits to be compensation for calls blocked at its call setup in the record, we conclude gained. In contrast, we find that those own switch. In addition, incumbent that these costs may be more than a de incumbent LECs that either have or LECs have compelling incentives to minimis portion of the costs of local obtain the ability to implement a call- deliver interstate calls to an IXC’s POP. switching. The record indicates that setup charge should have the flexibility As competition develops for local these call setup charges are incurred to adopt this cost-causative rate service, it appears doubtful that an primarily on a per-call rather than a per- structure. incumbent LEC would find it minute basis. By requiring recovery the 140. No party disputes the fact that advantageous to block deliberately costs of call setup on a per-minute basis, incumbent LECs incur costs of call interstate calls placed by their end user our current rate structure mandates an setup for call attempts, in addition to customers. Such practices would implicit subsidy running from completed calls. Some parties, however, encourage entry by new competitors and customers that make lengthy calls to argue that call setup charges should be increase the interest of affected end those that make many short-duration assessed only on completed calls in users in finding a more reliable service calls. Therefore, we find that we should order to reduce customer confusion. We provider. We also find it unlikely that not continue to require the price cap anticipate that consumer confusion will either originating or terminating LECs to recover costs of call setup from be minimal, however, because the call incumbent LECs would intentionally per-minute local switching charges. setup charge we permit will be imposed risk the collection of often significant 138. Accordingly, we will revise on IXCs, not end users. We find it per-minute access charge revenues on a Section 69.106 of our rules, 47 CFR unlikely that IXCs would choose to pass completed long-distance call in order to § 69.106, to permit, but not to require, this charge along to their customers in collect additional, much smaller per-call price cap LECs to establish a separate the form of a separate charge per call setup charges. Finally, we know of no per-call setup charge assessed on IXCs attempt. For instance, IXCs today significant allegations of degraded for all calls handed off to the IXC’s point generally charge their customers for service quality attributable to the very of presence (POP). As noted earlier, completed long distance calls even similar current regime, under which because an incumbent LEC originating though they incur access charges for incumbent LECs collect at least a full an interstate call incurs call setup costs many uncompleted calls as well. minute of originating access revenues even if the call is not completed at the 141. Other commenters state that on uncompleted calls delivered to the called location, we permit these LECs to setup charges imposed on call attempts IXC’s POP. We are prepared, however, recover call setup charges on all will result in charges being imposed on to investigate claims that an incumbent originating interstate calls that are a caller that has not received service. LEC is blocking calls in an intentional handed off to the IXC’s POP, and on all LCI asserts that ‘‘customers do not or discriminatory manner. terminating calls that are received from expect to pay for uncompleted call 143. Several large business customers an IXC’s POP. With respect to attempts, and the carriers are not that make substantial numbers of short- originating call attempts, we agree with entitled to recover their costs of duration calls, such as those associated 31890 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations with credit card authorization, elements recover the costs of some b. Peak and Off-Peak Pricing automatic teller machine operation, or dedicated SS7 facilities, they do not 148. We conclude that we should not other transaction-oriented data transfers, include the usage-based signalling costs now mandate a peak-rate pricing argue that imposing a call setup charge of call setup, including the costs structure for local switching. The record will be disruptive to their businesses incurred to switch messages at the local reflects significant practical difficulties and may force them to use alternatives STP, to transmit messages between an that may make it difficult or impossible to the public switched network. These STP and the incumbent LEC’s end office to establish and enforce a rational, commenters are the primary or tandem switch, and to process or efficient, and fair peak-rate structure as beneficiaries of the subsidy that is formulate signal information at an end a matter of regulation. For example, the implicit in the current recovery of call office or tandem switch. record outlines a variety of difficulties setup costs on a per-minute basis, that incumbent LECs will confront in running from customers that make 146. Currently, the setup costs of determining peak and off-peak hours lengthy calls to those that make many certain calls may be recovered through with any degree of certainty, based on short-duration calls. The existing rate database query charges, either for the geographic, user-type, service, and other structure may well have encouraged line information database (LIDB), 47 variations. Moreover, peak usage users who make many short duration CFR § 69.120, or the 800 database, 47 periods may shift over time as usage calls to use the public-switched network CFR § 69.118. In addition, incumbent patterns change, and as competitors in inefficient ways. Rate structures that LECs recover some costs associated with enter the market. Based on these are aligned with cost causation, on the the provision of certain signalling difficulties, some incumbent LECs may other hand, should encourage information necessary for third parties find it too costly or too difficult to economically-efficient use of the to offer tandem switching through the develop, implement, and maintain a telecommunications network. ‘‘signalling for tandem switching’’ rate peak-rate structure that will allow them Transaction-oriented users of the element, 47 CFR § 129. network may be motivated to develop to capture all or most of the benefits this 147. Imposing a call setup charge for more economically efficient processing structure could offer. interexchange calls should not overlap methods, with resulting economic 149. We do recognize the possible benefits. Because this group of IXC with any of these existing rate elements. efficiency of a peak-rate structure. Local customers may need time to adjust to Nevertheless, we clarify that an Competition Order. Accordingly, we the new rate structure, however, incumbent LEC choosing to impose a will consider whether LECs should have incumbent LECs choosing to impose a call setup charge may not include in the flexibility to develop such peak and per-call setup charge on IXCs may do so, that charge any costs that it continues to off-peak rate structures for local at the earliest, in their access tariff recover either through other local switching on a permissive basis when filings effective July 1, 1998. This gives switching charges, through charges for we consider other issues of rate a customer over one year to make any dedicated SS7 facilities, or through structure flexibility in a subsequent necessary adjustments. This time should other signalling charges. In this Order, Report and Order that we will adopt in be sufficient to mitigate any potential we also permit incumbent LECs to adopt this proceeding. disruptive effects of this rate structure a more detailed SS7 rate structure, C. Transport change. modeled on that currently used by 144. MCI asserts that there may be Ameritech under waiver. Ameritech SS7 150. Transport service is the costs of call setup in addition to those Waiver Order. This SS7 rate structure component of interstate switched access consisting of transmission between the associated with signalling, such as a may permit LECs to recover a significant IXC’s point of presence (POP) and LEC portion of the switch central processor portion of their call setup costs without end offices. Transport Rate Structure costs. We limit the costs that an an additional call setup charge. Given and Pricing, CC Docket No. 91–213, incumbent LEC may recover through estimates in the record that SS7 is used Third Memorandum Opinion and Order call setup charges, however, to those to provide signalling for more than 95 associated with signalling because we on Reconsideration and Supplemental percent of the large LECs’ customers, we Notice of Proposed Rulemaking, 60 FR agree with MCI that it would be conclude that, in the ordinary case, a extremely difficult to separate the costs 2068, (January 6, 1995) (Third Transport price cap LEC will not need to use both Reconsideration Order). Currently, of the switch CPU and other traffic- the optional SS7 rate structure and a sensitive costs into per-message and incumbent LECs offer two basic types of separate call setup charge to recover the interoffice transport services. The first, per-minute portions and to verify that costs of call setup. We recognize, the allocation has been done properly. direct-trunked transport, uses dedicated however, that some call setup is still 145. Several commenters caution that, circuits for transport between a LEC end if we permit a call setup charge, we performed using in-band, office and the LEC serving wire center, should also ensure that the charge does multifrequency (MF) signalling, rather or between any other two points the not overlap with any SS7-related than out-of-band signalling systems. direct-trunked transport customer charges now permitted or developed in Because SS7 charges will not recover requests. The second, tandem switched this proceeding. Because call setup is costs of call setup using MF signalling, transport, uses common transport one function of the SS7 network, some we do not prohibit the use of both SS7 facilities to connect the end office to a of these costs may already be recovered and call setup charges. We caution LECs tandem switch. Common transport through the current Part 69 SS7 rate adopting both the optional SS7 rate circuits may be used to transmit the elements. 47 CFR § 125. Currently, structure and an additional call setup individual calls of many IXCs and even Section 69.125 of our rules permits charge, however, that cost support filed the incumbent LEC itself. Transport LECs to recover from IXCs only (1) a with access tariffs must clearly indicate circuits dedicated to a particular access flat-rated signalling link charge for the the allocation of individual costs of call customer connect the tandem switch to Dedicated Network Access Line setup between these two recovery the serving wire center. Dedicated (DNAL); and (2) a flat rated Signal mechanisms; the same costs cannot be entrance circuits carry traffic between Transfer Point (STP) port termination double-recovered using both the IXC POP and the serving wire charge. 47 CFR § 69.125. While these mechanisms. center, whether the IXC uses direct- Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31891 trunked transport or tandem-switched necessary to govern rate levels for these 155. We decline Ameritech’s request transport. services. in its comments for immediate 151. In the NPRM, we expressed flexibility to offer new technologies to b. Discussion concern that some of our current Part 69 switched access customers without rules, see, e.g., 47 CFR §§ 69.110, 153. We conclude that both entrance obtaining a Part 69 waiver or passing a 69,111, 69.112, 69.124, may require facilities and direct-trunked transport public interest test. In our Price Cap LECs to recover transport costs through services should continue to be priced on Performance Review for Local Exchange rate structures that do not reflect a flat-rated basis and that charges for Carriers, CC Docket No. 94–1, Third accurately the way these costs are these services may be distance-sensitive. Report and Order, 62 FR 4657 (January incurred. We sought comment on In the First Transport Order, we found 1, 1997) (Price Cap Performance Review possible revisions to many of these rate that such a flat charge would facilitate Third Report and Order), adopted along elements. competition in the direct-trunked with the NPRM in this proceeding, we eliminated the need for a Part 69 waiver 1. Entrance Facilities and Direct- transport market and encourage for new services, and instead required Trunked Transport incumbent LECs to make efficient network decisions. For the same incumbent LECs to file a petition a. Background reasons, and because this pricing demonstrating that introduction of the 152. Entrance facilities are dedicated structure is reflective of the manner in new service would be consistent with circuits that connect an access which incumbent LECs incur the costs the public interest. Such petitions will customer’s POP with the LEC’s serving of provisioning these facilities, we give LECs that desire to do so the wire center. Direct-trunked transport confirm that the interim rate structure opportunity to make their cases and facilities are dedicated trunks that carry the Commission adopted for these receive the requested flexibility. See 47 an access customer’s traffic from the facilities should be made final. CFR § 69.4(g). This procedure LEC end office to the serving wire center 154. US West and Sprint make a significantly streamlined the prior without switching at the tandem switch. persuasive showing that, as carriers waiver process, and we conclude that In the First Transport Order, we expand their use of fiber-optic ring the public interest will not suffer if we mandated an interim rate structure architecture and other modern network do not grant incumbent LECs additional under which entrance facilities and designs, transport costs should become immediate flexibility in this area as part direct trunked transport are priced on a less distance sensitive because LECs of our basic rate structure modifications. flat-rated basis, which may be distance may transport a call along any one of We will give further consideration to sensitive. Transport Rate Structure and many paths to its destination based on Ameritech’s request for additional Pricing, CC Docket No. 91–213, Report transient network traffic levels. We flexibility to offer new technologies to and Order and Further Notice of conclude, however, that we need not switched access customers as part of our Proposed Rulemaking, 57 FR 54717 amend our Part 69 rules now to reflect assessment of other aspects of pricing (November 20, 1992) (First Transport the decreasing sensitivity of transport flexibility in a subsequent Report and Order); see also 47 CFR § 69.110. Initial costs to distance. Our rules permit, but Order in this proceeding. rate levels for direct-trunked transport do not mandate, the use of distance 156. We also will consider whether and entrance facilities were presumed sensitive transport charges. Therefore, if LECs should be permitted to offer reasonable if they were set equal to the an incumbent LEC determines that its direct-trunked transport services that rates for corresponding special access transport costs have become less are differentiated by whether the service components (special access distance sensitive, it may reduce or incumbent LEC or the transport service and special access channel eliminate the distance-sensitivity of its customer is responsible for performing termination, respectively). Transport direct-trunked transport rates. For two channel facility assignments in Rate Structure and Pricing, CC Docket reasons, we expect that incumbent LECs connection with our evaluation of other No. 91–213, First Memorandum will adjust their rates to reflect any forms of pricing flexibility in a Opinion and Order on Reconsideration, change in the distance sensitivity of subsequent Report and Order in this 58 FR 41184, (August 3, 1993) (First transport costs. First, as US West states, proceeding. As MCI argues in its Transport Reconsideration Order). In ring architecture will be most prevalent, comments, it is unclear whether rates the NPRM, we tentatively concluded and therefore, will reduce the distance for direct-trunked transport where the that, because direct-trunked transport sensitivity of rates most dramatically, in LEC controls the CFA should be higher and entrance facilities appear to be densely populated areas. When an or lower than the rates that apply where dedicated to individual customers, a incumbent LEC obtains authority to the IXC controls the CFA. Although the flat-rated pricing structure accurately deaverage access rates geographically, LEC may be able to make more efficient reflected the way LECs incur the costs therefore, it may choose to offer a less use of its network facilities when it of these facilities. We sought comment distance-sensitive pricing structure in controls the CFAs itself, this efficiency on this tentative conclusion and on more densely populated areas than it benefit may be offset by the additional whether incumbent LECs should be does in less densely populated areas. costs the LEC incurs in performing the permitted to offer transport services Such a structure would properly reflect CFA function. We agree with MCI that differentiated by whether the LEC or the the reduced distance sensitivity of the an incumbent LEC may be able to IXC is responsible for channel facility incumbent LEC’s costs in more densely increase its network efficiency by assignments (CFAs). A channel facility populated areas. Second, as competition retaining or assuming control of CFAs, assignment is the actual designation of develops, incumbent LECs will come particularly if an IXC orders a relatively the routing that a circuit takes within under increasing market pressures to large amount of transport capacity. In the incumbent LEC network. This maintain rates that reflect the nature of those cases, however, rate assignment may be made either by an the costs underlying the service. If they differentiation based on CFA control IXC purchasing a dedicated circuit, or choose not to do so, we expect that new appears to be the functional equivalent the incumbent LEC itself. We also market entrants will develop of a volume discount. As a result, we sought comment on whether any rules competitive service offerings at prices will consider this issue, along with in addition to the interim rules are more reflective of underlying costs. other pricing flexibility issues, in a 31892 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations subsequent Report and Order planned flat-rated basis. Under the three-part rate revenue requirement and the revenues in this docket. structure, both portions of the projected to be recovered under the 157. In its comments, USTA requests transmission charge may be distance interim rate structure. Id. The TIC was that we forbear under Section 10 of the sensitive based on the airline mileage to explicitly intended to make the Communications Act, 47 U.S.C. sec. the tandem office. transition to the interim rate structure 160, from regulating services in the 160. In adopting the interim rate revenue neutral. Id. Among other interexchange basket, special access, structure, the Commission stated that possible costs, the TIC recovers the collocated direct-trunked transport, and initial direct-trunked and tandem- remaining 80 percent of the tandem- directory assistance. We will address switched transport rates would be switching revenue requirement. USTA’s request along with other pricing presumed reasonable if set based on 163. Portions of the interim transport flexibility issues, in a subsequent Report special access rates in effect on rate structure were recently remanded to and Order planned in this docket. September 1, 1992, using a DS3 to DS1 the Commission by the United States rate ratio of at least 9.6 to 1. First Court of Appeals for the District of 2. Tandem-Switched Transport Transport Order. Special access Columbia Circuit, CompTel, 87 F.3d a. Background customers use a dedicated trunk 522. With respect to tandem-switching running between the customer’s rates and the TIC, the Court ordered us 158. Tandem-switched transport uses premises and the IXC’s POP, thereby either to implement a cost-based rate trunks that are shared among many IXCs bypassing the LEC’s switched network structure or offer a ‘‘rational and non- and the LEC itself to carry traffic facilities altogether. This service is conclusory analysis in support of [our] between the end office and a tandem primarily used by large volume users in determination that an alternative switch. The tandem switch routes IXC densely populated areas. Per-minute structure is preferable.’’ Id. at 736. With traffic onto an appropriate dedicated tandem-switched transport rates were respect to overhead loadings, the Court trunk that runs between the tandem presumed reasonable if set using a ordered us either to substantiate that our switch and the serving wire center. An weighted average of DS1 and DS3 rates current method of allocating overhead is IXC may use tandem-switched transport reflecting the relative numbers of cost-based, choose a method that is, or either as its primary form of transport in circuits of each type in use in the provide a reasoned explanation of our lieu of direct-trunked transport, or to tandem-to-end office link, and assuming decision to pursue a non-cost-based carry traffic that overflows from its circuit loading of 9000 minutes of use system. Id. direct-trunked transport facilities at per month per voice-grade circuit. Id. 164. In the NPRM, we sought peak periods. In 1982, the Modification 161. Under the interim rate structure, comment on several alternative rate of Final Judgment (MFJ) established an whether a tandem-switched transport structures for tandem-switched interim rule that required, until customer elects to purchase tandem- transport service facilities, including: (a) September 1, 1991, BOC charges to IXCs switched transport under the unitary or maintaining the interim rate structure, to be ‘‘equal, per unit of traffic’’ of a the three-part rate structure, the LEC which permits the IXCs to choose given type transported between end imposes a separate, per-minute charge between the two pricing alternatives offices and facilities of the IXCs within on the tandem-switched transport above; (b) eliminating the unitary rate an exchange area or within reasonable customer for use of the tandem switch. option and requiring the IXCs to subzones of an exchange area. United The Commission set this charge initially purchase tandem-switched transport States v. American Tel. and Tel. Co., to recover only twenty percent of the under the three-part rate structure; or (c) 552 F. Supp. 131, 233–34 (AT&T tandem revenue requirement, in order developing another, different rate Consent Decree, Appendix B, Section to: (1) protect small IXCs that use structure. We also sought comment on B(3)), aff’d sub nom. Maryland v. United tandem-switched transport as their whether, in conjunction with any of States, 460 U.S. 1001 (1983). primary transport mechanism from these pricing options, we should apply 159. The Commission replaced the substantial increases in tandem- to tandem switching any of the options ‘‘equal charge’’ rule in 1993 with an switched transport rates, see for local switching discussed above, interim rate structure for tandem- Competitive Telecommunications Ass’n including whether we should establish switched transport. This interim v. FCC, 87 F.3d 522, 526–27 (D.C. Cir. separate flat-rated charges for the structure allows IXCs to choose between 1996) (CompTel); (2) ensure that the dedicated ports on the serving wire two rate structures for the purchase of interim rate structure did not ‘‘endanger center side of the tandem or other NTS tandem-switched transport. Both the availability of pluralistic supply in components of the tandem switch, and options provide for a per-minute the interexchange market’’ that had whether usage-based or flat rates more tandem switching charge. Under the developed under the equal charge rule, accurately reflect shared tandem- first option, an IXC may elect to pay First Transport Order; and (3) allow switching costs. We also sought ‘‘unitary’’ per-minute charge for IXCs a transitional period to reconfigure comment on whether, in conjunction transmission of traffic from the end their networks to eliminate with any of these options, we should office, through the tandem switching inefficiencies that had developed under permit or require peak load pricing for office, to the serving wire center. This the equal charge rule and to prepare for usage-based charges for tandem- charge may be distance sensitive, with a fully cost-based rate structure, id. switched transport service, and on distance measured in airline miles from Unlike the direct-trunked and tandem- whether any portion of tandem- the end office to the serving wire center. switched transport rates, which are set switched transport costs should be Under the second option, the ‘‘three- using overhead loadings based on recovered from direct-trunked transport part rate structure,’’ in addition to the special access, the tandem switching customers. charge for the tandem switch, an IXC rates used higher overhead loadings may elect to purchase transmission on applicable to switched access. b. Overview of Rate Structure and Rate a bifurcated basis, with the end office- 162. As part of the interim rate Level Changes to-tandem portion charged on a per- structure, the Commission also created 165. In this section, we summarize the minute basis, and the tandem-to-serving the TIC to recover on a per-minute basis changes we make to the tandem- wire center portion charged as direct- from all switched access customers the switched transport rate structure and trunked transport facilities, i.e., on a difference between the Part 69 transport rate levels below. We conclude that we Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31893 should require incumbent LECs to tariffs a flat-rated charge to recover the occurred since the TIC was created, as implement a cost-based rate structure costs of dedicated trunk ports on the described in Section III.C.2.d, below. for tandem-switched transport in four serving wire center side of the tandem. c. Rate Structure stages over a two year transition period. None of our existing rate elements Unlike our previous transition plans, currently recovers the costs of either 170. Multiplexing Costs. As discussed however, we set forth today, for the first these multiplexers or these dedicated above, we direct incumbent LECs to time, the details of a final, cost-based trunk ports. Accordingly, we conclude establish separate rate elements for the transport rate structure. We have long that those costs are currently recovered multiplexing equipment on each side of recognized that non-cost based rate through the TIC, and that incumbent the tandem switch. LECs must establish structures can, among other dangers, (1) price cap LECs must reduce the TIC to a flat-rated charge for DS1/DS3 threaten the long-term viability of the reflect the recovery of these costs multiplexers on the serving wire center nations’s telephone systems; (2) distort through the new rate elements. Also on side of the tandem, imposed pro-rata on the decision whether to use alternative January 1, 1998, all incumbent LECs the purchasers of dedicated DS3 trunks telecommunications technologies; and must take the first of three annual steps on the serving wire center side of the (3) encourage ‘‘uneconomic bypass’’ of to reallocate to the tandem-switching tandem, in proportion to the amount of the public switched rate element tandem switching revenues DS3 trunking capacity purchased by telecommunications network, raising currently being recovered through the each customer. Unlike DS3 rates, rates rates for all. MTS and WATS Market TIC. In tariffs filed to be effective on that for DS1 dedicated trunks already Structure Third Report and Order. date, we require incumbent LECs to include a portion of the DS1/DS3 166. Until today, however, we have reallocate one third of the portion of the multiplexer needed for transport. First limited ourselves to interim transport tandem switching revenue requirement Transport Order. Multiplexing rate structure plans, such as the equal that they currently recover through the equipment on the end office side of the charge rule and the interim rate TIC, excluding signalling and dedicated tandem shall be charged to users of structure described above. While the port costs that we reallocate elsewhere, common end office-to-tandem transport interim rate structure increased the cost- to the tandem switching rate element. on a per-minute of use basis. These based nature of our transport rate 168. The second step will occur in multiplexer rate elements must be structure, it also included significant incumbent LEC tariffs to become included in the LEC access tariff filings non-cost-based elements. We have not, effective July 1, 1998. At that time, all to be effective January 1, 1998. until today, laid out a clear transition incumbent LECs must eliminate the 171. We sought comment in the plan that describes all the steps unitary pricing option for tandem NPRM on the claim that: necessary to achieve cost-based switched transport. Instead, incumbent The TIC * * * includes the two additional transport rates. As a result, although all LECs will be required to provide multiplexers needed in order to multiplex a carriers have no doubt been aware of tandem-switched transport under a DS3 circuit down to a DS1 level before our intention to move to a cost-based three-part rate structure as follows: (1) a switching at the tandem, and then back up rate structure, they have been able only per-minute charge for transport of traffic to DS3 afterward for transmission to an end to react to our transitional steps, over common transport facilities office. To the extent that analog tandem announced piecemeal. Because we have between the LEC end office and the switches exist, two additional DS1/[voice- grade] multiplexers are needed to achieve the not announced a definite and detailed tandem office; (2) a per-minute tandem voice-grade interface with the tandem switch. end state—a final, cost-based rate switching charge; and (3) a flat-rated structure—we have afforded carriers charge for transport of traffic over None of our existing rate elements little opportunity to plan, adjust, and dedicated transport facilities between explicitly recovers the costs of these develop their networks in preparation the serving wire center and the tandem multiplexers, and we conclude that for such a rate structure, despite our switching office. Incumbent LECs will these costs are currently recovered as lengthy period of ‘‘transition.’’ continue to impose separate part of the TIC. Accordingly, we Accordingly, because of the potential multiplexing and port charges establish two rate elements for magnitude of the rate impact of these established on January 1, 1998, as multiplexers used on the serving wire changes, we conclude that a four-step complementary to the three-part rate center side of the tandem switch. The implementation over a two-year period structure. first will recover the costs of DS3/DS1 will minimize the risk of rate shock and 169. The third and fourth steps will multiplexers used by purchasers of allow transport customers to adjust consist of the reallocation of the dedicated DS3 transport trunks from the while we move as expeditiously as remaining portion of the tandem- serving wire center to the tandem possible to cost-based transport rates as switching revenue requirement switch, and may be levied only on required by the CompTel decision. currently recovered through the TIC to purchasers of such DS3 transport. The 167. The first step will occur in the tandem-switching rate element. All second will recover the costs of DS1/ incumbent LEC access tariffs to become incumbent LECs are to reallocate one voice-grade multiplexers used on the effective on January 1, 1998. In those half of the remaining portion of tandem- serving wire center side of analog tariffs, incumbent price cap LECs must switching revenue requirement tandem switches, and should be levied establish new rate elements for recovery recovered through the TIC to the on purchasers of DS1 or greater capacity of the costs of DS3/DS1 and DS1/voice- tandem-switching rate element in access dedicated transport from the tandem grade multiplexers used in conjunction tariffs to become effective January 1, switch to the serving wire center in with the tandem switch. The rate 1999, and the final portion of the proportion to the transport capacity element for the dedicated multiplexers tandem-switching revenue requirement purchased on that route. Like serving on the serving wire center side of the to the tandem-switching rate element in wire center-side trunks and trunk ports, tandem will recover these costs on a access tariffs to become effective on both DS3/DS1 and DS1/voice-grade flat-rated basis, while the rate element January 1, 2000. Before performing this multiplexers on the serving wire center for the multiplexers on the end office reallocation, price cap incumbent LECs side of the tandem switch are dedicated side of the tandem will be assessed per must account for X-factor reductions to to individual customers. Accordingly, minute of use. In addition, incumbent the tandem-switching revenues flat-rated NTS charges for these price cap LECs must establish in those permitted under price caps that have multiplexers are appropriate. 31894 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

172. On the end office side of the per-minute charge for transport of traffic development of interstate access tandem switch, we establish two over common transport facilities competition; and (3) to facilitate full and additional rate elements. The first will between the LEC end office and the fair interexchange competition. First recover the costs of DS3/DS1 tandem office; (2) a per-minute tandem Transport Order. In 1991, we stated that multiplexers used on the end office side switching charge; and (3) a flat-rated the interim rate structure was a of the tandem switch. This rate element charge for transport of traffic over reasonable first step toward achieving will be a per-minute charge imposed on dedicated transport facilities between these goals, because it was more cost- each IXC purchasing common transport the serving wire center and the tandem based than the equal charge rule. First on the end office-to-tandem link. This switching office. This three part rate Transport Order. Even from its charge will be calculated based on structure reflects the manner in which inception, however, we have recognized actual minutes of use of the common the incumbent LEC incurs the costs of that the interim rate structure represents transport circuits and will be assessed providing each component of tandem- significant compromises that cause it to on IXCs in a 1:1 ratio with minutes of switched transport. By establishing a fall substantially short of these goals in use of common transport. As with per-minute, traffic-sensitive rate for the many ways. See First Transport Order; common transport trunks, because these shared common transport trunks and Third Transport Reconsideration Order. multiplexers are shared among all users the tandem switch, incumbent LECs 178. First, the unitary rate option does of common transport, traffic-sensitive, will recover these costs from each IXC not accurately reflect the manner in per-minute charges are appropriate. The in proportion to its use. The incumbent which LECs incur costs in providing second rate element should be assessed LEC, in contrast, incurs the costs of the tandem-switched transport and, only at analog tandems, to recover in a dedicated serving wire center-to-tandem therefore, does not provide maximum similar manner the costs of DS1/voice- trunk on an NTS basis because, like incentive for IXCs to use transport grade multiplexers needed at these other dedicated trunks, the LEC must facilities efficiently. IXCs may order, analog tandems. provision the trunk for the exclusive use and LECs must provide, dedicated 173. Price cap LECs must reallocate of one IXC. Once this capacity is transport links with NTS costs on the revenues currently being recovered dedicated, the cost of the trunk does not serving wire center-to-tandem route through the TIC to these rate elements vary with the amount of traffic with no assurance that the traffic- and begin recovery of multiplexing costs transmitted by the IXC. sensitive, per-minute revenues collected using these rate elements in their access 176. The three-part rate structure may will cover the NTS costs of the link. As tariffs to become effective January 1, cause some tandem-switched transport we stated at the time, the unitary rate 1998. customers to increase their use of direct- structure was intended as an interim 174. Dedicated Tandem Switch Trunk trunked transport relative to tandem- measure to allow IXCs time to prepare Port Costs. Price cap incumbent LECs switched transport. As discussed above, for a fully cost-based transport rate must establish a separate rate element making this rate structure change structure. Third Transport for dedicated trunk ports used to effective on July 1, 1998, will provide Reconsideration Order. IXCs have now terminate dedicated trunks on the tandem-switched transport customers had well over a decade since divestiture serving wire center side of the tandem that currently take service under the to so prepare. We agree with the switch. LECs incur the costs of these unitary rate structure with notice of this CompTel decision that it is time to bring ports on an NTS basis, but currently change sufficient to enable them to this period of preparation to a close as must recover their costs through per- adjust their networks to provide service expeditiously as possible without minute charges for the tandem switch. in the most efficient way possible, and causing severe disruption to carriers. Because we have allocated 80 percent of to mitigate any sudden effect on rates CompTel, 87 F.3d at 530. tandem-switching costs to the TIC, these such a change could have if 179. Second, by bundling the port costs may currently be recovered implemented on shorter notice. In order dedicated and common portions of the through either per-minute tandem- to encourage transport customers to transmission component of tandem- switching charges, or the per-minute increase the efficiency of their transport switched transport into a single, end-to- TIC. We now take this opportunity to networks quickly, we will require end per-minute charge, the unitary rate establish a separate rate element for incumbent LECs to waive certain structure inhibits the development of these costs. Price cap LECs must nonrecurring charges until six months competitive alternatives to incumbent establish a flat-rated element for after the three-part rate structure LEC tandem-switched transport. While dedicated trunk ports on the serving becomes mandatory. Therefore, from the we have required incumbent LECs to wire center side of the tandem, assessed effective date of this Order until six provide the collocation, signalling, and on the purchaser of the dedicated trunk months after the effective date of tariffs unbundled network elements necessary terminated at that port. This rate eliminating the unitary pricing option for new entrants to compete with element shall be a flat-rated charge for tandem-switched transport, the incumbent LECs without having to assessed on the carrier purchasing the incumbent LECs shall not assess any replicate the incumbent LEC’s dedicated trunk terminated at that port, nonrecurring charges for service interoffice transport network, see Local and must also be included in tariff connection when a transport customer Competition Order; Expanded filings to become effective January 1, converts trunks from tandem-switched Interconnection with Local Telephone 1998. to direct-trunked transport or orders the Company Facilities, CC Docket No. 91– 175. Three-Part Rate Structure. We disconnection of overprovisioned 141, Memorandum Opinion and Order, also direct all incumbent LECs to trunks. 59 FR 38922 (August 1, 1994); discontinue the unitary rate structure 177. When we replaced the equal Expanded Interconnection with Local option for the transmission component charge rule in 1991, we stated three Telephone Company Facilities, CC of tandem-switched transport, effective principles that would guide our efforts Docket No. 91–141, Transport Phase II, July 1, 1998. In their access tariffs that to develop the transport rate structure: Third Report and Order, 59 FR 32925 take effect on July 1, 1998, incumbent (1) to encourage efficient use of (June 27, 1994), we have not corrected LECs will be required to provide transport facilities by allowing pricing the non-cost based aspects of our tandem-switched transport under a that reflects the way costs are incurred; tandem-switched transport rate three-part rate structure as follows: (1) a (2) to avoid interference with the structure that reduce incumbent LEC Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31895 rates for tandem-switched transport costs to be incurred would impart the the transmission component of tandem- services. Several commenters have wrong incentives to both actual and switched transport has in fact been noted that the tandem-switched potential providers of local transport, offered on an end-to-end basis, but only transport market, despite our efforts, is thereby inducing them to offer an pursuant to the requirements of the MFJ subject only to limited competition. inefficient mix of dedicated, [direct- and our interim rate structure rules as Moreover, several competitive entrants trunked transport], and tandem- part of a transition to cost-based rates. have stated that they have the capability switched service.’’ CompTel, 87 F.3d at We find, however, that the transmission and desire to offer some or all of the 530–531. Because rules that do not component of tandem-switched components of tandem-switched reflect cost-causation may cause IXCs to transport is not, in fact, provisioned by transport on a competitive basis, but order an inefficient mix of transport the incumbent LEC on an end-to-end that the present, unitary rate structure services, such rules artificially raise the basis. Purchasers of direct-trunked inhibits the development of competition costs of providing interexchange transport purchase an end-to-end in this area. In addition, each services. Rules properly reflecting cost- service; they purchase from the component of tandem-switched causation, in contrast, will benefit LECs, incumbent LEC transport capacity transport is not equally susceptible to IXCs, and consumers alike by between two end points. Tandem- competitive entry; it is relatively easier encouraging competitors to provide switched transport customers, in for a new entrant to compete to provide service using facilities efficiently. In contrast, purchase use of the tandem the dedicated serving wire center-to- adopting the interim rate structure, we switch to route traffic to their POP. By tandem link than it would be to cited AT&T’s estimate that the virtue of their decision to choose compete to provide either the tandem efficiency benefit to consumers of cost- tandem-switched transport, these switch itself or the myriad common based pricing and competition could customers specifically obligate the LEC transport end office-to-tandem links. reach $1 billion annually. First to transport their traffic between the Thus, in order to permit the fullest Transport Order. Our adoption of the serving wire center and the tandem development of competitive alternatives three-part rate structure is intended to serving a particular end office or group to incumbent LEC networks, we need to permit consumers the benefits of even of end offices and to perform the unbundle reasonably segregable greater service efficiency. tandem switching function. Because components of incumbent LEC transport 181. We therefore adopt the three-part they cause the incumbent LEC to incur services and price them in the manner structure as the final tandem-switched the costs of transmitting their traffic in which costs are incurred. transport rate structure because this between the serving wire center and the structure most closely reflects the 180. Third, the interim rate structure tandem, tandem-switched transport manner in which LECs incur the costs customers should, as a matter of cost- does not best promote ‘‘full and fair’’ of each component of the overall interexchange competition. The unitary causation, pay the costs of reaching the tandem-switched transport service. tandem. In providing tandem-switched rate structure has facilitated the growth When combined with our actions with of small IXCs to compete with larger service, incumbent LECs must provision respect to the TIC, our adoption of two separate circuits with distinctly carriers. It has achieved this, however, actual minutes of use as the appropriate by requiring incumbent LECs to price different cost characteristics—one factor for determining per-minute rates dedicated, and one shared. Tandem- facilities with NTS costs on a per- for common transport circuits, and our minute, traffic sensitive basis, in order switched service, therefore, is not allocation of the full cost of the tandem- provisioned on an end-to-end basis to allow small IXCs to offer switch to the tandem-switching rate between the end office and serving wire interexchange services at rates elements, we expect that this structure center, but in three parts: (1) comparable to those offered by larger will benefit LECs, IXCs, competitive transmission from one ‘‘end,’’ the end carriers without regard to whether the providers of access services, and office, to the tandem; (2) the tandem charges paid by the small IXCs cover the consumers. Tandem-switched transport switching function itself; and (3) costs of the facilities that they use. facilities are sized to accommodate peak transmission from the tandem to the While this structure has protected traffic loads, including overflow traffic other ‘‘end,’’ the serving wire center. ‘‘pluralistic supply in the interexchange from IXCs using direct-trunked Just as the tandem-switched transport market,’’ see First Transport Order, our transport facilities. Several commenters customer pays a separate charge for the rules should promote competition, not have stated that, until now, these protect certain competitors. We have overflow customers have not borne the tandem switch, the tandem-switched recently concluded that no carrier is full costs of these facilities because transport customer should pay dominant with respect to domestic, overflow customers pay only the same separately for the two distinct interexchange services, Motion of AT&T per-minute transmission charges transmission components. to be Reclassified as a Non-Dominant applicable to other IXCs. The three-part 183. Other commenters argue that the Carrier, Order, 11 FCC Rcd 3271 (1995). rate structure will require the IXC three-part rate structure will create LEC Therefore, to the extent that we purchasing tandem-switched incentives to engage in inefficient designed the interim rate structure to transmission facilities to pay the full network reconfiguration, placing facilitate the growth of small IXCs in NTS costs of the dedicated serving wire tandems far from end offices and competition with AT&T, we find that center-to-tandem link, without regard serving wire centers simply to increase such protective rules are no longer for the amount of traffic transported. tandem-switched transport revenues. necessary. In a competitive market, we This benefit, in turn, will substantially These commenters further argue that, if believe that we should strive to make increase IXC incentives to use tandem- we adopt the three-part rate structure, our rate structure rules consistent with switched transport efficiently for we need to control this incentive by cost-causation principles, so long as overflow traffic. establishing a process for review of the those principles do not conflict with 182. Some commenters argue that we incumbent LECs’ tandem deployment other statutory obligations, such as should retain the unitary rate structure decisions. Based on this record, we universal service. As the CompTel because tandem-switched transport, as a conclude that these commenters’ fears decision stated, ‘‘attempt[ing] to recover service, has traditionally been offered are not well founded. An incumbent costs from IXCs that did not cause those on an end-to-end basis. We agree that LEC would likely incur substantial costs 31896 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations to reconfigure placement of its tandem purchasing direct-trunked transport incumbent LEC to route its traffic to the switches specifically to disadvantage requires the incumbent LEC to provide tandem, and so should pay the costs of IXC users of tandem switched transport. transport service between the end office reaching the tandem. In addition, an Because we expect the three part rate and the serving wire center. Because the IXC operating efficiently often may structure to catalyze the development of LEC must route direct-trunked transport choose to locate its POP at or close to competition, we conclude that the traffic between only these two points, the tandem, if the tandem-switching incumbent LEC would not be likely to our rate structure requires the IXC to office also can function as the serving incur such costs. Although the pay only for the airline mileage between wire center, thus eliminating virtually incumbent LEC might be able to those two points, reflecting the direct all of the dedicated transport costs of increase its tandem-switched mileage route between the locations in the tandem-to-serving wire center link. transmission revenues in the short term the incumbent LEC network designated While such an arrangement may be the to reflect inefficient routing, as more by the access customer. In contrast, an most efficient transport architecture for efficiently configured competitors enter IXC purchasing tandem-switched tandem-switched transport, our current the market, the LEC would not be able transport purchases use of the access unitary pricing structure does not reflect to sustain such artificially inflated rates tandem switch and therefore requires the underlying costs of tandem- and would then need to incur additional the incumbent LEC to provide service switched transport transmission costs to reconfigure its network between the serving wire center and the facilities and so does not encourage efficiently. Because, under our new tandem, and between the tandem and efficient transport architectures. competitive paradigm, a multitude of the end office. Under the three part rate 188. The introduction of more modern investment opportunities, including structure, the tandem-switched network architectures, such as wireless services, video, and interLATA transport customer, like the direct- Synchronous Optical Network (SONET) toll, may emerge for incumbent LECs, trunked transport customer, pays for the rings, does not alter our conclusion that we agree with Ameritech that ‘‘[s]uch direct mileage between the locations in the three-part rate structure most closely misspent capital outlays and inefficient the incumbent LEC network designated approximates the nature of costs network configuration simply would not by the customer—for tandem-switched associated with each component of make good business sense.’’ transport, the serving wire center to tandem-switched transport. WorldCom, 184. Moreover, the redeployment of tandem, and the tandem to the end for instance, asserts that the ‘‘pyramid’’ tandem switches affects network office. Because the IXC has chosen to diagram included in the NPRM as efficiency with respect to both the make use of the LEC tandem switching Figure 1 is outdated and submits a incumbent LEC’s own local and toll facilities, it should pay explicitly for the diagram illustrating interoffice tandem- traffic, as well as intrastate and transport necessary to reach the tandem. switched transport in a ring-based interstate access. Therefore, inefficient The direct-trunked transport customer, network. WorldCom states that the network reconfiguration would cause in contrast, does not make use of the multiple routing options and the harm both to tandem-switched transport tandem switching facilities; even if the reduced distance sensitivity of transport customers and to the incumbent LEC LEC routes direct-trunked transport costs in a SONET environment compel itself. Any additional transport revenues traffic through the tandem office, this retention of the unitary rate structure. that the incumbent LEC generated traffic is not switched at the tandem. We conclude, however, that the through inefficient network While the incumbent LEC may choose differences WorldCom identifies do not support retention of the unitary rate reconfiguration would be at least to route direct-trunked traffic through partially offset by the additional costs of structure because, even in a ring-based the tandem office based on its own transporting the LEC’s own traffic in network, the three-part rate structure assessment of whether it is similarly inefficient ways. As discussed treats direct-trunked and tandem- economically efficient to do so, the above, as competition develops in the switched transport consistently. In a direct-trunked transport customer pays local market, we expect that an LEC fiber-optic or ring-based network, only for direct mileage between the would be reluctant to take steps to dedicated, direct-trunked transport locations it designated in the network. decrease its own efficiency. circuits are given a constant, and 185. Some commenters argue that we 187. We are not persuaded by exclusive, time slot assignment on a should retain the unitary rate structure arguments that we should retain the large, time-division multiplexed fiber- because direct-trunked transport and unitary pricing structure because the optic cable. The incumbent LEC routes tandem-switched transport circuits incumbent LEC, and not the tandem- traffic for the IXC purchasing the direct often travel along the same routes using switched transport customer, has trunk into the dedicated circuit or time the same physical facilities. These selected the tandem location and, slot, where it is received elsewhere on commenters argue, therefore, that it consequently, the tandem-switched the ring or in the network at the serving would be unfair or discriminatory to transport customer should not pay for wire center. The direction or precise require tandem-switched transport users the direct mileage to and from the routing of the signal around the ring is to purchase transmission based on tandem location. The incumbent LEC irrelevant for purposes of the rate airline mileage from the end office to equally chooses the locations of the structure because the transport is priced the tandem to the serving wire center, serving wire center and end office, and on an airline-mileage basis between the while users of direct-trunked transport yet access customers routinely pay two end points. Capacity dedicated to a are permitted to purchase the same mileage charges to and from those particular IXC, however, is not available route on the basis of airline mileage locations, rather than between the end to the LEC for other purposes. from end office to the serving wire points of the access service—the POP 189. SONET ring architecture offers center directly. Other commenters argue and the end user location. Similarly, we the LEC the capability to transport large that we should require the LECs to offer find that the three-part rate structure traffic volumes with redundant routing both types of transport based on actual does not discriminate against IXCs using options, but it does not alter the route miles, revealing actual LEC tandem-switched transport. As fundamental nature of tandem-switched network efficiencies and inefficiencies. discussed above, the tandem-switched transport. Tandem-switched transport is 186. We disagree with both of these transport customer, unlike the direct- functionally very different from direct- proposed modifications. An IXC trunked transport customer, requires the trunked transport because, by Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31897 definition, the incumbent LEC must incumbent LECs from assessing any per- Report and Order that we will adopt in route an IXC’s tandem-switched traffic minute residual TIC charge on any this proceeding. through the tandem switch serving a switched minutes of CAPs that d. Rate Levels particular end office. Whether using a interconnect with the incumbent LEC SONET ring or not, the LEC must route switched access network at the end 195. Allocation of 80 Percent of the its tandem-switched traffic into one of office. In doing so, we adopt a position Tandem Switching Revenue many shared common transport circuits substantially similar to the second Requirement to the TIC. In establishing or time slots allocated for transport enumerated point, above, which the interim transport rate structure, we between the end office and the tandem Teleport and CompTel characterize as required incumbent LECs to base their switch, and onto a second dedicated the ‘‘most important’’ feature of this initial tandem switching charge on 20 circuit or time slot for transport between proposal. In addition, we are also taking percent of the interstate tandem- the serving wire center and the tandem. other measures that will reduce switching revenue requirement. In Despite parties’ arguments to the substantially or eliminate the TIC in an remanding this portion of the interim contrary, the precise routing of the expeditious manner. We decline, rate structure to us, the D.C. Circuit traffic to the tandem, including the however, to adopt the other two directed us either to implement a cost- direction it may take around a SONET suggestions. As explained in more detail based tandem switching rate or offer a ring, is irrelevant to the rate structure above, the unitary rate structure is not rational and non-conclusory analysis in because IXCs purchase transport under cost-based in that it requires incumbent support of our determination that an the three-part rate structure based on LECs to recover costs incurred on an alternative structure is preferable. airline mileage to the tandem. NTS basis through per-minute charges 196. Based on the record in this 190. As discussed in connection with and inhibits the development of proceeding, we reallocate much of the direct-trunked transport, above, ring competition by bundling reasonably remaining 80 percent of the tandem network architectures may cause segregable components of tandem- switch revenue requirement back to the incumbent LECs transport costs to switched transport together and pricing tandem switching rate elements in three become less distance sensitive. Because them in a manner that does not reflect steps. We conclude that this action is our rate structure permits, but does not cost causation. We conclude that our most consistent with cost-causation, and require, transport rates to be distance new paradigm of promoting efficient with the general approach we are taking sensitive, LECs remain free to establish competition requires that incumbent in this Order regarding pricing issues. less distance sensitive transport rates to LECs adopt a cost-based transport rate We do not require all of the 80 percent reflect the changing nature of these structure and that entrants providing to be reallocated to tandem switching costs. transport facilities in competition with rates because the tandem-switching 191. We also decline Teleport’s the incumbent LEC not pay the TIC. revenue requirement includes, not only suggestion to establish a flat-rated 193. Although in their comments in the costs of the tandem switch, but other charge for the tandem switch, tied to the this proceeding the incumbent LECs costs, such as SS7 signalling costs and amount of dedicated capacity each IXC’s virtually unanimously favor the three- tandem port costs, which we are serving wire center-side trunk ports part rate structure as most consistent requiring to be reallocated elsewhere. provide. While the costs of these with principles of cost-causation, we dedicated trunk ports are NTS, the recognize that incumbent LECs may face 197. Furthermore, if we required the record before us does not reflect that all competition from competitors that are price cap LECs to reallocate, dollar-for- of tandem-switching costs are similarly not limited to the three-part rate dollar, the entire portion of the tandem NTS. Rather, we conclude at this time structure we adopt for incumbent LECs switching revenue requirement that we that the costs of tandem switching likely today. As such competition develops, reallocated to the original TIC in the vary, as do those of local switching, on the incumbent LEC may wish to First Transport Order, we would deny a traffic-sensitive basis. In light of this respond by offering tandem-switched tandem-switched transport customers conclusion, we find that it would be transport on a unitary pricing basis. We the continuing benefits of past X-factor unreasonable to permit the incumbent will address issues relating to when reductions in the revenues permitted LEC to recover all of its tandem- incumbent LECs should have the under price caps. Therefore, in order to switching costs through flat-rated flexibility to offer a unitary tandem- preclude recovery of tandem switching charges. As with the local switch, until switched transport rate structure in costs in excess of the current revenues we gain more experience with rate connection with our discussion of other permitted under price caps, we direct structures for unbundled network pricing flexibility issues in a subsequent price cap incumbent LECs first to elements that are implemented pursuant Report and Order that we will adopt in account in the following manner for the to Sections 251 and 252 and that this proceeding. effects of ‘‘GDP–PI minus X-factor’’ segregate switching costs into traffic- 194. Peak and Off-Peak Pricing. As reductions to the original portion of the sensitive and NTS components, we will with the local switch, we conclude that tandem switching revenue requirement continue to adhere to the current, per- we should not mandate a peak-rate allocated to the TIC in the First minute rate structure for shared pricing structure for the tandem switch Transport Order. Each price cap LEC switching facilities. or common transport at this time. Many first should calculate the percentage of 192. We also decline to adopt in full of the same practical difficulties with its total original TIC that represented the suggestions that we (1) retain the establishing, verifying, and enforcing a 80 percent reallocation of its tandem unitary pricing structure for tandem- rational, efficient, and fair peak-rate switching costs when the TIC was switched transport, while (2) exempting structure exist in the context of the created. It should then calculate this IXCs and competing LECs that do not tandem switch. We will consider percentage of its current TIC, which use the transport facilities supplied by whether incumbent LECs should have represents the extant portion of the the incumbent LEC from paying the TIC the flexibility to develop such peak and reallocated tandem switching costs. It is and (3) preventing the incumbent LEC off-peak rate structures for local this extant portion that the price cap from deaveraging the TIC within a state switching on a permissive basis when LECs should reallocate to tandem during a five year transition period. We we consider other issues of rate switching as described in the next are modifying our rules to prohibit structure flexibility in a subsequent paragraph. 31898 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

198. In access tariff filings to become not compel adoption of similar rates for Plant Specific Expenses, Plant Non- effective on January 1, 1998, incumbent access services. We intend instead to Specific Expenses, and Customer LECs must identify the portion of the rely on the availability of unbundled Operations Expenses. Our Part 69 cost tandem-switching revenue requirement network elements to place market-based allocation rules in turn allocated currently in the TIC that they reallocate downward pressures on access rates, interstate direct investment to broad to each rate element, including, as subject to a prescriptive backstop. We categories, including Central Office applicable, SS7 signalling, tandem port will further address questions related to Equipment (with respect to both local costs, or other rate elements. They must reinitialization to TELRIC rate levels in switching and tandem switching) and then reallocate one third of the tandem connection with our discussion of the Carrier Cable and Wire Facilities (with switching revenue requirement prescriptive approach to access reform. respect to special access, direct-trunked remaining in the TIC to the tandem 200. Use of Switched Access transport, and tandem-switched switching rate element. Effective Overhead Loadings for Initial Tandem transport transmission facilities). 47 January 1, 1999, incumbent LECs shall Switching Rates. In setting rates, the CFR §§ 69.305–69.306. Other reallocate approximately one half of the interim transport rate structure derived investment, including overhead, was remaining amount of the tandem both direct-trunked transport rates and allocated among these categories in switching revenue requirement in the tandem-switched transmission rates proportion to the dollar amounts of net TIC to the tandem switching rate using relatively low overhead loadings direct investment allocated to these elements. Effective January 1, 2000, applicable to special access. Tandem categories. 47 CFR § 69.309. Similarly, incumbent LECs shall reallocate any switching rates, in contrast, were set direct expenses, where possible, were portion of the tandem switching using relatively higher switched access allocated to the category to which the revenue requirement remaining in the overhead loadings. As a result, the expenses are related. E.g., 47 CFR TIC to the tandem switching rate tandem switching revenue requirement § 69.401. Other expenses, including element. This three-step became relatively high, in comparison overheads, are allocated on the same implementation of this change permits to other transport rate elements. basis as other investment, according to IXCs time to adjust their use of various 201. Several commenters in this relative dollar amounts allocated to the incumbent LEC transport services, but proceeding contend that our use of various categories. 47 CFR § 69.411. The sets a definite end date in the near special access overheads in setting Commission has stated that initial future, thus responding to the CompTel direct trunked transport rates was allocation of overheads based on decision’s concerns regarding the length inappropriate because, while special relative costs closely approximates an of the transition to a cost-based access is used almost exclusively in economically efficient method assuming transport rate structure. high density, generally urban areas, that the elasticity of demands for the direct-trunked transport and, to an even various outputs is not too dissimilar. 199. Some commenters argue that, greater extent, tandem-switched See, e.g., First Transport Order. rather than reallocating revenues from transport are used in less dense areas. In the TIC to other rate elements, we these less dense areas, overhead costs 203. Our Part 69 cost allocation rules, should reinitialize tandem-switched associated with transport may be higher therefore, established category revenue transport rates to levels reflecting long than those associated with special requirements that included overheads run incremental costs, making access in urban areas. Some commenters allocated generally based on relative reallocation of TIC revenues to other have argued that we should either (1) costs. Once these initial revenue transport rate elements unnecessary. We equalize the overhead loading factors for requirements were established, our Part have decided in this Order, however, all transport options by directing that 69 rules permitted incumbent LECs to not to reinitialize access rates based on the difference in transport rates is equal recover all costs assigned to each forward-looking cost principles. We to the difference in the long run category through the rate elements have instead determined that the first incremental cost of each transport established for that category. The step in access reform is to make the option (DS3, DS1, and tandem-switched incumbent LECs were permitted to current system as economically efficient transport); or (2) otherwise ensure that assign overhead costs among the as is possible within the limits of transport customers pay an equal dollar category rate elements in any way that current ratemaking practices. Thus, the amount of overhead per unit of traffic is just and reasonable and not focus of this portion of this proceeding transported. unreasonably discriminatory. 47 U.S.C. is on the development of cost-causative 202. We conclude that we need to secs. 201–202. We find that it is rate structure rules. While we are taking make no change to the overheads reasonable to have set overhead several prescriptive steps using existing attributed to tandem switching. As loadings for tandem switching ratemaking methods to reduce initial discussed above, we have decided not to consistently with the overhead loadings baseline rates, we are generally adopting base access prices directly at this time for local switching, and disagree with a market-based approach, with a on incremental cost studies, but instead those parties that argue that there is no prescriptive backdrop, to move rates to make significant changes in existing cost justification for the current over time to levels reflecting forward- ratemaking practices as the first step in allocation of overheads to the tandem looking economic costs. We disagree access reform. Our current methods switch. The direct costs of both kinds of with those commenters that argue that allocate overhead in a reasonable, cost- switching are fundamentally the same the Local Competition Order requires us based manner. In consultation with the in that both types of switches are immediately to prescribe rate levels for Joint Board on Jurisdictional comprised of ports and a switching access elements based on long-run Separations, the Commission matrix. By contrast, the direct costs of incremental costs. The Local established procedures for allocating transmission consist of outside plant Competition Order addressed, inter alia, overhead expenses between the state and circuit equipment and certain the pricing of unbundled network and interstate jurisdictions. See, e.g., 47 central office equipment. So long as elements. While unbundled network CFR § 36.192, separating Corporate consistent overhead loading elements may be used to provide Operations Expenses, USOA Accounts methodologies were used across interstate access services, their 6710 and 6720, on the basis of the switching functions, and across availability at TELRIC-based prices does separation of the Big Three Expenses: transmission functions, we find that a Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31899 reasonable cross-over is established for technology—that appeared to be Reconsideration Order. We rejected at access customers between direct- misallocated to tandem switching. Id. that time requests to develop a loading trunked transport and tandem-switched Elsewhere in this Order, we have taken factor for small LECs that would reflect transport. As competition develops, we steps to address that misallocation of their actual, substantially lower circuit can also rely on market forces to SS7 costs. That correction having been loading levels, stating that, ‘‘the benefits pressure incumbent LECs to allocate made, we find that our existing rules to be obtained from use of more overheads among rate elements in reasonably allocate overhead to tandem individualized loading factors are economically efficient ways. We address switching for the reasons discussed outweighed by the benefits of the issues concerning the use of special above. administrative convenience of a uniform access prices to initialize direct-trunked 206. Use of actual minutes of use loading factor and of avoiding transport rates in the interim rate rather than an assumed 9000 minutes of verification difficulties.’’ Id. Given the restructure below in our discussion of use. For tandem-switched transport new competitive paradigm embodied in the TIC. rates to be presumed reasonable, the the 1996 Act, we conclude that this 204. We also decline to adopt a interim rate structure requires assumption must give way to charges requirement for equalized overhead incumbent LECs to set per-minute based on actual usage levels. The same loadings. Overhead loadings are used to tandem-switched transport rates using a conversion factor is not appropriate for assign costs that do not qualify as the weighted average of DS1 and DS3 rates each incumbent LEC. Because the 9000 direct costs of a particular service. reflecting the relative numbers of minute assumption appears to have Reasonable definitions of direct costs circuits of each type in use in the substantially overstated the actual traffic often leave in the overhead category tandem-to-end office link, and assuming levels on many circuits, we now costs that might reasonably be deemed circuit loading of 9000 minutes of use conclude that the current rate structure attributable to a given service. Thus, if per month per voice-grade circuit. First is unlikely to recover the full costs of all of a carrier’s costs are classified as Transport Order. Based on the record common transport. Costs that properly either ‘‘direct costs’’ or ‘‘overheads,’’ the before us, we find that continued use of should be recovered from common overhead category will likely include this 9000 minutes of use assumption is transport rate elements may currently be costs that should not necessarily apply no longer reasonable. Many commenters recovered through TIC revenues. uniformly to all services. As a result, we state that their actual traffic levels are Because the 9000 minutes of use loading think it desirable not to adopt a policy substantially lower than 9000 minutes factor has contributed, possibly that is too specific and too rigid, and of use per month. Some incumbent significantly, to the level of the non- that might not permit recognition of LECs, particularly smaller LECs in rural cost-based TIC, we find that continued legitimate differences in costing areas, indicate that their actual traffic use of this factor is no longer definitions. Furthermore, in a levels may be as low as 4000 minutes of reasonable. competitive market, it would be mere use per month per voice-grade circuit. 208. We therefore direct incumbent happenstance if different products or Accordingly, we conclude that rates for LECs to develop common transport rates services of a single company recovered the common transport portion of based on the relative numbers of DS1 uniform amounts of overhead. If we tandem-switched transport must be set and DS3 circuits in use in the tandem- were to require equalized overhead using a weighted average of DS1 and to-end office link, and using actual loadings, we would be interfering with DS3 rates reflecting the relative numbers voice-grade circuit loadings, the market discipline on which we are of DS1 and DS3 circuits in use in the geographically averaged on a study-area- primarily relying. We might, for tandem-to-end office link, and using the wide basis, that the incumbent LEC example, prevent an entrant from actual voice-grade switched access experiences based on the prior year’s realizing a reasonable profit opportunity common transport circuit loadings, annual use. As discussed above, based on a rigid overhead loading measured as total actual minutes of use, incumbent LECs that deaverage their requirement. geographically averaged on a study-area- transport rates under our existing zone- 205. In determining that our existing wide basis, that the incumbent LEC based deaveraging rules may similarly cost allocation rules reasonably experiences based on the prior year’s deaverage the actual minutes of use allocated overhead to the initial tandem annual use. Incumbent LECs that figures that they use to calculate per- switching rate element and that we thus deaverage their transport rates under minute common transport rates. As they need not change the overheads currently our existing zone-based deaveraging develop transport rates based on actual attributed to tandem switching, we rules, see 47 CFR § 69.123, may minutes of use, we require incumbent recognize that the D.C. Circuit in similarly deaverage the actual minutes LECs to use any increase in common CompTel remanded the overhead issue of use figures that they use to calculate transport revenues to decrease the TIC. to the Commission for further per-minute common transport rates. These rates must be included in the LEC explanation and stated that the ‘‘cost 207. Our assumption that voice-grade access tariff filings effective January 1, allocation to the tandem switch’’ under common transport circuits experience 1998. the existing allocation rules ‘‘is, by the uniform loadings of 9000 minutes of use 209. We disagree with commenters Commission’s own estimation, grossly was initially based on 1983 data arguing that the actual number of excessive.’’ CompTel, 87 F.3d at 533. submitted in the original MTS and minutes a circuit is in use is irrelevant The court did not provide a cite for its WATS Market Structure proceeding. in a rate-setting context. These characterization of the Commission’s MTS and WATS Market Structure, CC commenters argue that rates should be ‘‘estimation,’’ but the court may have Docket No. 78–72, Phase I, set based on forward-looking cost been referring to the agency’s finding in Memorandum Opinion and Order, 48 studies using Commission-determined the First Transport Order that ‘‘most, FR 42984 (September 21, 1983). In using ‘‘efficient’’ traffic levels, which they but not all, of the interstate tandem this assumption as part of the interim argue may be far higher than either the revenue requirement is attributable to rate structure, we stated that, ‘‘[t]he actual traffic levels, or the 9000 minutes tandem-switched transport’’ (emphasis 9000 minutes per circuit per month of use assumption. As explained added). The Commission in that order standard serves as a convenient starting elsewhere, we are not taking the general also identified only one category of point in the context of a short-term, approach of prescribing rates at forward costs—having to do with SS7 interim rate structure.’’ First Transport looking economic costs, and we decline 31900 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations to make an exception in this instance. interconnection. In the NPRM, we Docket No. 91–141, Memorandum We are instead reforming access charges sought comment on how to reduce and Opinion and Order, 59 FR 38922 so that they more closely reflect the eliminate the TIC in a manner that (August 1, 1994). Second, all other costs imposed by individual access fosters competition and responds to the things being equal, the usage-rated TIC customers. We also do not find it D.C. Circuit’s CompTel remand. We increases the per-minute access charges necessary to employ different principles sought comment on different methods of paid by IXCs and long-distance here to ensure that incumbent LECs face recovering the costs currently recovered consumers, thus artificially suppressing sufficient incentives to design their by the TIC, including: (1) Giving the usage of such services and encouraging networks to achieve efficient usage incumbent LECs significant pricing customers to explore ways to bypass the levels. LECs subject to price cap flexibility and allowing market forces to LEC switched access network, regulation already have only limited discipline the recovery of the TIC, either particularly through the use of switched ability to raise rates to cover the costs alone or in conjunction with a phase-out facilities of providers other than the of inefficient network designs, and are of the TIC; (2) quantifying and incumbent LEC that may be less able to benefit from increased profits as correcting all identifiable cost economically efficient than incumbent their efficiency improves. In addition, as misallocations and other practices that LECs. competition develops for local service, result in costs being recovered through 213. As we noted in the NPRM, our all incumbent LECs will face increasing the TIC; (3) combining the above goal is to establish a mechanism to pressure to provide service as efficiently approaches, for example, by addressing reduce and eliminate the TIC in a as possible. directly the most significant and manner that fosters competition and readily-corrected misallocations, and responds to the D.C. Circuit’s remand. C. Transport Interconnection Charge then relying on a market-based (TIC) To that end, we below identify several approach to reduce what remains of the costs included in the TIC that should be 1. Background TIC; (4) providing for the termination of reallocated to other access elements. We the TIC over a specified time, such as 210. Under our Part 36 separations conclude, however, that on the present three years. We specifically sought rules, certain costs of the incumbent record, we cannot immediately comment on the possible reassignment LEC network are assigned to the eliminate the TIC entirely through these of costs based on several explanations reassignments. We establish a interstate jurisdiction. The Part 69 cost for the amounts in the TIC. The NPRM allocation rules allocate these costs mechanism that should substantially also sought comment on how the reduce the remaining TIC over a short, among the various access and resolution of the issues surrounding the interexchange services, including but reasonable period. In addition, we TIC would be affected by decisions on will in the near future refer a broad transport. In the First Transport Order, universal service, by the level of any range of separations issues to a Joint we restructured interstate transport rates residual costs, and by the adoption of Board for purposes of determining for incumbent LECs. The restructure either the market-based or prescriptive whether certain costs currently created facility-based rates for dedicated approach to access reform. transport services based on comparable allocated to the interstate jurisdiction special access rates as of September 1, 2. Discussion and recovered through the TIC more 1991, derived per-minute tandem- 212. As a per-minute charge assessed properly should be allocated to the switched transport transmission rates on all switched access minutes, intrastate jurisdiction. Finally, we from those dedicated rates, established including those of competing providers establish the means by which the a tandem switching rate, and of transport service that interconnect remaining TIC amounts are to be established a TIC that initially recovered with the LEC switched access network recovered. the difference between the revenues through expanded interconnection, the a. Reallocation of Costs in the TIC from the new facility-based rates and TIC adversely affects the development the revenues that would have been of competition in the interstate access 214. The record in response to the realized under the preexisting ‘‘equal market. First, as discussed more fully NPRM clearly establishes that some charge rule.’’ Under the equal charge below, some of the revenues recovered costs in the TIC should be reallocated to rule, which arose from the AT&T through the TIC should be recovered other access elements. USTA, in divestiture of the BOCs, the BOCs were through other switched access elements, conjunction with the incumbent LECs, required to charge a per-minute, including transport rates other than the submitted extensive comments setting distance-sensitive rate for their transport TIC. The TIC, as currently structured, forth an incumbent LEC consensus offerings, regardless of how the provides the incumbent LECs with a explanation of the causes for the sums underlying costs were incurred. The TIC competitive advantage for some of their in the TIC and estimates of the amounts was intended as a transitional measure interstate switched access services associated with each explanation. While that initially made the transport rate because the charges for those services the current rulemaking record will not restructure revenue neutral for do not recover their full costs. At the permit us to prescribe specific amounts incumbent LECs and reduced any same time, the incumbent LECs’ that individual incumbent LECs must harmful interim effects on small IXCs competitors using expanded shift from the TIC to specific access rate caused by the restructuring of transport interconnection must pay a share of elements, it does permit us to direct rates. Approximately 70 percent of incumbent LEC transport costs through incumbent LECs to make certain cost incumbent LEC transport revenues are the TIC. Under our expanded reallocations and to require them to generated through TIC charges, or interconnection rules and policies, calculate the appropriate level of the approximately $3.1 billion, according to competitors may interconnect with the reallocation in the supporting materials USTA. incumbent LEC’s facilities at the end filed with the tariffs implementing the 211. The TIC is a per-minute charge office and supply their own transport. changes. Below, we discuss each of the assessed on all switched access minutes, For a more detailed discussion of identified causes of costs being included including those of competitors that expanded interconnection, see in the TIC and the extent to which costs interconnect with the LEC switched Expanded Interconnection with Local should be reallocated to other access access network through expanded Telephone Company Facilities, CC elements or categories. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31901

215. In this Order, we do not address method for access reform, we will revenues recovered through the tandem certain rate structure issues relating to require reassignment of certain TIC switching rates will, subject to price cap incumbent LECs subject to rate-of-return revenues based on an analysis of the limits, increase to the level of costs regulation. These LECs account for separated, booked costs already assigned to the interstate jurisdiction by relatively few access lines. In some recovered through the TIC. the separations process at the end of our instances we direct price cap LECs to 217. SS7 costs. Based on the record plan. Equivalent changes to the amounts allocate costs to new rate elements that before us, we conclude that SS7 costs recovered through the TIC must be do not currently exist for rate-of-return that are recovered by the TIC should be made to ensure that over-recovery does LECs. We anticipate that we will removed from the TIC and allocated to not occur. After this adjustment, in propose similar rate elements in the the traffic-sensitive basket. The record accordance with the CompTel remand, forthcoming notice of proposed demonstrates that these costs are related and to facilitate the development of rulemaking addressing rate structure to the signalling function and should be economically-efficient competition for issues for incumbent LECs subject to recovered through local switching or tandem-switching services, the TIC will rate-of-return regulation. Recognizing signalling rate elements. The costs to be not recover any costs that are the expense and difficulties of removed are the costs of signal transfer attributable to tandem switching. modifying billing systems, we conclude points (STPs) that were included in the 219. DS1/voice-grade multiplexer that, until the rate structure issues are tandem-switching category for costs. We conclude that the costs of resolved for rate-of-return companies, jurisdictional separations purposes and DS1/voice-grade multiplexing the costs allocated to new elements and the cost of the link between the end associated with analog local switches any residual TIC revenues may continue office and the STP that is used only for should be reassigned to the newly to be recovered by the incumbent LECs SS7 signalling. The incumbent LECs created trunk ports category within the that are not subject to price cap shall distribute the STP costs traffic sensitive basket. Analog switches regulation through per-minute TIC rates reallocated from the TIC to local require a voice-grade interface on the assessed on both originating and switching or, if the incumbent LEC has trunk-side of the end office switch. Our terminating access. established an unbundled signalling rate separations rules assign the costs of structure, to appropriate SS7 elements, DS1/voice-grade multiplexers to the 216. As their primary challenge to the in tariffs filed to be effective January 1, cable and wire category. The costs of incumbent LEC proposals to reallocate 1998. The incumbent LEC shall these multiplexers associated with costs from the TIC, several parties argue distribute the costs of the link between switched access were originally that we should use forward-looking cost the local switch and the STP that are included in the Part 69 transport principles, or TELRIC, in determining included in the TIC to local switching revenue requirement. The revised how much to shift from the TIC to other or, if provided, to the call-setup charge. transport rules adopted in 1992 access categories. Some parties This change means that the incumbent established transport rates based on DS1 advocating the use of such forward- LECs’ SS7 prices will reflect the full switch interfaces, and thus the rates did looking cost standards assert that any cost of providing SS7 signalling and not include the costs of DS1/voice-grade costs not meeting these forward-looking provide the proper price signals to multiplexers. The costs of the DS1/ cost standards should be eliminated developers of new services utilizing voice-grade multiplexers are, therefore, from the TIC, and the incumbent LECs SS7. We decline to adopt the suggestion included in the TIC. Therefore, the costs should not be permitted to recover those of US West that we reallocate SS7 costs associated with DS1/voice-grade amounts. One group of consumer to services in the trunking basket. As we multiplexing associated with analog advocates proposes that we need not conclude below in conjunction with our local switches should be reassigned to complete TELRIC studies before consideration of the SS7 rate structure, the trunk ports category within the substantially reducing the TIC because the costs being reallocated are traffic sensitive basket, to be considered BA/NYNEX has already proposed, as appropriately included in the traffic- in conjunction with the development of part of their access charge reform sensitive basket. appropriate rates for trunk ports, in compromise plan, to eliminate up to 80 218. Tandem switching costs. Several tariffs filed to become effective January percent of the TIC pending a parties argue that the tandem switching 1, 1998. This will make recovery of the determination of ‘‘service related’’ costs rate must be set to reflect the cost of costs necessary to use an analog switch by the Commission. We conclude, providing the service. In the preceding port equivalent to the recovery of digital however, that immediate, widespread, section, we modified the existing switch port costs, in which the prescriptive action is not necessary to tandem-switched transport rate multiplexing function is included in the pressure access rates toward market- structure and revised certain of the port itself. based levels. Instead, we have pricing rules applicable to elements of 220. Host/remote trunking costs. We determined that the most appropriate tandem-switched transport to establish a agree with the parties that allege that the first step towards access reform is to cost-based structure and to respond to costs of host/remote links not recovered make the current rate structure as the court remand in CompTel v. FCC. by the current tandem-switched economically efficient as possible The revised pricing rules applicable to transport rates should be included in within the limits of past ratemaking tandem switching include two separate the tandem-switched transport category. practices. These practices include elements—a flat-rated port charge to be The record reflects that the rates for setting rates based on interstate- assessed when a port is dedicated to a carrying traffic between the host and a allocated costs, subject to price cap single customer and a per minute charge remote switch, for which the tandem- constraints for most large carriers. As to be assessed for the traffic-sensitive switched transport rates, both fixed and we discuss more fully in Section IV, portion of the tandem switch. In three per mile, are assessed, do not recover below, we intend in the future to rely approximately equal annual steps, the full costs of this transmission primarily on market forces, with a beginning January 1, 1998, we require service. These charges for host/remote prescriptive backdrop, to move rates reallocation of all tandem-switching service are in addition to charges that an toward forward-looking economic cost. revenues currently allocated to the TIC IXC is assessed for either direct-trunked Therefore, because we currently are not to the tandem-switching rate element. transport, or tandem-switched transport, prescribing a forward-looking cost As a result of this modification, the total between the serving wire center and the 31902 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations host end office. This reassignment will rate structure established in Section cost factors; costs of DS1 and DS3 ensure that these transmission costs will III.C. special access services, in contrast, are be recovered from those using the 223. Central Office Equipment (COE) separated using unit costing methods. transmission facilities, and must be Maintenance Expenses. The record in Because of the differences in these included in tariff filings to become this proceeding demonstrates that separations methodologies, special effective January 1, 1998. We reject allocating COE maintenance expenses access-derived rates reflect the costs of NECA’s suggestion that we include on the basis of combined COE transport in areas in which special these costs in local switching on the investment produces misallocations of access services are most often offered theory that remote facilities are installed these expenses among access services. (urban, higher density areas), and do not when it is more cost effective to do that USTA correctly traces this problem to reflect the costs of transport in rural, than it is to install a new switch at the the Part 36 separations rules; the less dense areas. Another alleged remote location. That would require all problem is then tracked in our Part 69 separations-related cause of the amounts users of local switching to pay for these cost allocation rules. Under our current in the TIC is the use of circuit host/remote transmission facilities. rules, COE maintenance expenses are termination counts in the separations Imposing the host/remote transmission allocated among separations categories, process to allocate costs between special cost on the users of host/remote and then access services, based on the access and switched services before they facilities is more cost causative and will combined investment in the three are allocated between federal and state facilitate the development of access categories of the COE plant being jurisdictions. This practice appears to competition. maintained—Central Office Switching, allocate costs disproportionately to 221. Additional multiplexers Operator Systems, and Central Office- switched services. The incumbent LECs associated with tandem switching. Transmission—rather than on the assert that the use of direct costing Based on the record before us, we individual investment in each of those methods would assign many of these conclude that an IXC’s decision to categories. As a result, a portion of the costs to local and intrastate services and utilize tandem-switched transport expense of maintaining local switches to interstate services other than imposes the need for additional and operator systems is recovered in transport. If the Joint Board on multiplexing on each side of the tandem rates for common line, transport, and Jurisdictional Separations takes action switch. The revised tandem-switched special access even though those do not to address this issue, we will then transport rate structure provides for utilize any local switching or operator consider what corresponding systems. Correcting this misallocation these multiplexers. For price cap LECs, reallocations should be made. through changes to Part 36 would 225. We find that some of the recovery of the costs associated with the require referral to a Federal-State Joint remaining costs recovered by the TIC multiplexers should, therefore, be Board and therefore could not be done result from at least two different causes: shifted from the TIC to the tandem- in this proceeding. The misallocation (1) the separations process assigned switched transport category as of can, however, be corrected by modifying costs differently to private line and January 1, 1998, as explained in Section section 69.401 of our rules, 47 CFR message (i.e., switched) services, III.C. This realignment of costs helps § 69.401, to provide that the COE resulting in costs allocated to special ensure that tandem-switched transport expenses assigned to the interstate access being lower than those allocated rates are cost based, as required by the jurisdiction should be allocated on the to the message category, even though CompTel decision, and facilitates basis of the allocation of the specific the two services use comparable competitive entry for those services. type of COE investment being facilities—rates for direct-trunked 222. Use of actual minutes of use maintained, and we make the correction transport and the transmission rather than an assumed 9000 minutes of here. This will shift some costs to local component of tandem-switched use. The data in the record provided by switching from common line and transport, which are switched services, USTA and other incumbent LECs transport, and result in more cost-based therefore, do not recover the full amount support a finding that for many rates. This shift must be reflected in of separated costs; and (2) the cost of incumbent LECs, especially those tariff filings to be effective January 1, providing transport services in less serving less densely populated areas, 1998. We also plan to refer the densely populated areas is higher than the assumed 9000 minutes of use per underlying separations issue to a Joint that reflected by transport rates derived circuit is far higher than actual minutes Board for its recommendation. from those special access rates. The of use. A tandem-switched transport 224. Separations-related causes. existing record is inadequate to permit rate derived by dividing the cost of a Several incumbent LECs argue that a us to identify more costs that could circuit by an assumed usage level does substantial portion of the TIC can be clearly be reallocated to interstate not recover the costs of the circuit when traced to decisions separating costs services. Furthermore, the record the actual usage is below that level. The between the interstate and intrastate indicates that some residual TIC costs costs not recovered through tandem- jurisdictions. As explained by USTA may be appropriately allocated to switched transport rates based on our and incumbent LECs, the largest portion intrastate services. Because we will soon current 9000 minutes of use assumption of the amounts recovered by the TIC be considering a NPRM of Proposed are being recovered through the TIC. In results from the differences in the Rulemaking to refer to a Joint Board the preceding section, we conclude that jurisdictional separations allocation questions regarding separations, we will the pricing of tandem-switched procedures for message (i.e., switched) leave the determination of the ultimate transport transmission should be based services and special access services, and allocation of the remaining costs on the actual average minutes of use on from the consequent effects of the recovered by the TIC until the the shared circuits and that such pricing Commission’s decision to use special conclusion of that proceeding. would produce a cost-based rate. access rates to establish transport 226. Incumbent LEC parties generally Accordingly, costs should be removed transmission rates when the contend that special access rates from the TIC equal to the additional Commission restructured transport provided an acceptable initializing revenues realized from the new tandem- rates. The current jurisdictional pricing level for transport transmission switched transport rates when it is separations process separates the costs services in geographic areas where implemented in accordance with the of message services based on average significant amounts of special access Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31903 services are provided, but do not reflect implemented by the incumbent LEC. We states that, using a targeting approach, the cost of providing transport service in do not require incumbent LECs that we would not need to address the cost low-density areas in which special average their transport rates to make a allocation issues raised by Part 36 and access services are not as widespread. similar reallocation at this time, because Part 69. Targeting these price cap We recognize that rates for direct- of the difficulty in determining the reductions to the TIC reduces the TIC trunked transport and for the amount to be reallocated. over a reasonable period, thereby transmission component of tandem- 228. Price Cap Implementation issues. ultimately substantially reducing what switched transport, because they were For purposes of phasing out the TIC, we is widely recognized to be an inefficient established based on special access are keeping the TIC in its own service aspect of the access rate structure. We rates, do not reflect the full cost of category in the trunking basket. The require price-cap LECs to begin these providing transport services in higher- reallocation of costs from the TIC to targeted X-factor reductions to the TIC cost, rural areas. Because none of our other access elements will require price in tariff filings to become effective July other facilities-based rate elements cap LECs to adjust their price cap 1, 1997. recover costs reflecting this differential, indices (PCIs) and service band indices 230. Targeting PCI reductions to the we conclude that the additional costs of (SBIs) to reflect the new revenue per-minute TIC will not change the rural transport currently are recovered streams. To accomplish these overall revenue levels that our price cap through the TIC. On the basis of the reallocations, price cap LECs shall make mechanisms permit incumbent LECs to current record, however, we are unable exogenous adjustments to their PCIs and receive. We have reallocated those costs to quantify these cost differentials. SBIs that are targeted to the indices in that the record shows are clearly related Moreover, based on differences in question, rather than applying the to other facilities-based elements. The network architectures, population exogenous adjustment proportionately upcoming separations proceeding may density variations, topography, and across all categories in the affected price provide additional data that will permit other factors that vary among LECs, we cap basket. Thus, when a reallocation us to reallocate more costs to facilities- find that transport cost differentials are occurs within a price cap basket, only based rate elements, or to the intrastate also likely to vary greatly among the affected SBIs will be adjusted. When jurisdiction. The approach we take is a incumbent LECs and among study areas the reallocation affects service reasonable response to the D.C. Circuit’s served by the same incumbent LEC. We categories in more than one basket, remand directive, and establishes a plan do not believe, however, that we need however, the affected PCIs and SBIs that should substantially reduce the TIC to quantify these differences in this must be adjusted. The upward or within a reasonable period, pending Order to ameliorate this distortion downward adjustment to the PCIs and review of the jurisdictional separations caused by the current rate structure, upper SBIs shall be calculated as the process. 231. We reject ALTS’ allegation that because the requirements set forth in the percentage of the revenues being added targeting the productivity factor to the next paragraph will address this issue. or subtracted from a basket or category, divided by the total revenues recovered TIC undercuts the rationale for the ‘‘just 227. If an incumbent LEC deaverages through the basket or category at the and reasonable’’ status of all price-cap its transport rates, either by time of the adjustment. For example, if rates, which ALTS contends is implementing zone-density pricing ten percent of the revenues are being dependant on the widespread under our rules, 47 CFR § 69.123, or by reallocated from a service category, the application of the X-factor. The targeting waiver, the underlying predicate is that category upper SBI will be reduced by approach that we adopt will eliminate the costs in low-density areas are higher ten percent. If that revenue amount is anticompetitive aspects of the TIC, than those in higher-density areas. The only three percent of the PCI for the which promotes inefficient entry into rates it sets for the different areas should basket, the PCI is reduced by three the transport market by imposing some reveal a cost differential of at least that percent. transport costs on IXCs that do not magnitude between low-density and cause the costs to be incurred. In high-density areas served by that LEC. b. Treatment of Remaining Costs addition, by spreading current TIC When an incumbent LEC deaverages Recovered by the TIC revenues across all price cap PCIs and transport rates, therefore, we require it 229. Residual TIC reduction plan. SBIs, our targeting method does not to reallocate additional TIC amounts to After the costs identified above have offer TIC revenues special insulation facilities-based transport rates, reflecting been reallocated to other access against the pressures of the competitive the higher costs of serving lower-density services, some costs will continue to be marketplace, as would some proposals areas. The reallocation we require here recovered by the TIC. While it is to bulk-bill the TIC to IXCs. We also will permit incumbent LECs, in desirable to eliminate the TIC as soon as decline to adopt the approach of deaveraging their transport rates, to possible by shifting the costs recovered spreading the remaining costs recovered achieve cost-based transport rates while by the TIC to facilities-based rates, by the TIC proportionately among all ensuring that a significant portion of referring separations questions to a Joint transport services, as proposed by State costs reflecting the geographic cost Board is the best means of reaching that Consumer Advocates. That approach difference are removed from the TIC. ultimate objective, as we noted earlier. might, because of the unknown nature Each incumbent LEC must reallocate Even as we make this referral, we will of the costs that will remain in the TIC, costs from the TIC each time it increases require incumbent LECs to target to the result in an excessive reallocation to the deaveraging differential. We find TIC price cap reductions arising in any transport. that any incumbent LEC that has already price cap basket as a result of the 232. The D.C. Circuit instructed us to deaveraged its rates must move an application of the ‘‘GDP–PI minus X- revise our transport rate structure rules equivalent amount from the TIC to its factor’’ formula until the per-minute TIC to be more consistent with cost- transport services. Under any of these is eliminated, as many parties have causation principles. There is scenarios, the costs shall be reassigned suggested. These parties submit that this conflicting evidence in the record to direct-trunked transport and tandem- targeting will permit incumbent LECs to concerning the nature of the costs switched transport categories or manage the reduction in revenues contained within the residual TIC; these subcategories in a manner that reflects recovered by the TIC, while reducing costs may be traffic sensitive or NTS the way deaveraging is being the amount at issue in the TIC. Sprint and may be associated with common 31904 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations line, transport or switching services. charges each year, subject to the PICC application of the productivity BA/NYNEX states, without explanation, cap; and (3) drawing down any adjustment to each basket other than the that the costs in the TIC are NTS in remaining residual per-minute TIC interexchange basket, and shall sum the nature. To the extent that some portion revenues each July by targeting the dollar effects of the adjustment. If the of the residual TIC has its origin in the annual X-Factor adjustments to those effect is to reduce PCIs, the dollar methods used to separate cable and wire revenues. amount shall be targeted completely to facilities between the regulatory 235. The targeting of price cap the trunking basket PCI and the TIC SBI, jurisdictions, it seems likely that BA/ productivity reductions to the TIC will without changing the PCIs or SBIs for NYNEX is partially correct in this be accomplished in the following any other basket or service category. The assertion. The evidence, however, does manner. Because the price cap LECs percentage reduction in the PCI and SBI not clearly resolve this issue. will not have reallocated facilities-based shall equal the ratio of the total dollar 233. If the costs remaining in the costs contained in the TIC before they effect of the price cap annual residual TIC are NTS, as BA/NYNEX file tariffs to be effective July 1, 1997, adjustment to the dollar value of the PCI suggests, then traffic-sensitive recovery we first direct the price cap LECs to and SBI, respectively. If the effect of the could artificially raise per-minute rates compute their anticipated ‘‘residual’’ productivity adjustment would increase for interstate access. These higher per- TIC amount by excluding revenues that the PCIs, the PCIs shall be adjusted in minute access rates could distort the are expected to be reassigned on a cost- their usual fashion, and no targeting to market for interstate toll services by causative basis to facilities-based the TIC shall occur. This avoids artificially suppressing demand for charges in the future, pursuant to the exacerbating an already inefficient interstate toll services and by transition plan described in this Order. aspect of the access rate structure. encouraging users that efficiently could To determine TIC amounts so excluded, 237. Price cap LECs will begin make use of the network to instead seek NYNEX, BellSouth, U S West, and Bell reallocation of facilities-based TIC other alternatives. Conversely, if costs Atlantic shall use the residual TIC components on January 1, 1998. At that remaining in the residual TIC are usage- percentage estimates contained in time, the price cap LECs should all have sensitive, flat-rating may also create a USTA’s ex parte letter filed May 2, actual cost data reflecting the facilities- distortion by encouraging inefficient 1997, to compute their respective based components of the TIC. If, at that overuse of interstate toll services. anticipated residual TICs. These time, any price cap incumbent LEC Because the limited evidence in the percentages are as follows: NYNEX, determines that its use of the applicable record suggests that at least some 77.63 percent; BellSouth, 56.93 percent; residual TIC estimate, above, resulted in amount of the residual TIC represents U S West, 59.14 percent; and Bell more PCI reductions being targeted to NTS costs, and because we wish to see Atlantic, 63.96 percent. SBC the interconnection charge in its tariff that consumers enjoy the benefits of Communications shall use the cost data filing to become effective on July 1, usage of the network to the greatest for SWBT, Pacific Bell, and Nevada Bell 1997, than were required to eliminate extent possible, we find that we should contained in its ex parte letter filed the per-minute interconnection charge, err, if at all, on the side of NTS recovery April 24, 1997 to estimate its residual then that price cap LEC shall make of these costs. For elements not TICs. These percentages, calculated necessary exogenous adjustments to its demonstrably reflecting usage-sensitive from TIC data supplied, are: SWBT, PCIs and SBIs to reverse the effects of costs, therefore, we find, on balance, 69.11 percent; Pacific Bell and Nevada the excess targeting. compelling policy arguments in favor of Bell combined, 53.52 percent. Each 238. For tariff filings to become flat-rated pricing because usage- remaining price cap LEC shall estimate effective July 1, 1998, and annually in sensitive recovery of any NTS costs a ‘‘residual’’ TIC in an amount equal to July thereafter, all price cap LECs will artificially suppresses demand for 55 percent of its current TIC revenues. have actual cost data reflecting the interexchange calling by inflating per- For these remaining price cap LECs, we facilities-based components of the TIC minute rates. In the absence of find that this 55 percent level represents and will be able to target reductions to definitive evidence as to the nature of a reasonable, but conservative estimate. actual anticipated residual per-minute the residual TIC amounts, we conclude The 55 percent level corresponds TIC amounts without resort to the that the public interest would be better approximately to the lowest residual percentage estimates prescribed above. served by imposing these costs on IXCs TIC percentage identified in the record, For these filings, ‘‘GDP–PI minus X’’ on a flat per-line basis, rather than on and three of the price cap LECs that adjustments similar to those described a per-minute basis. submitted data on the record are within above shall be targeted to the trunking 234. Accordingly, we seek to migrate a few percentage points of this level. We basket PCI and the TIC SBI to reduce the current usage-based charges into therefore find that residual TIC residual per-minute TIC amounts flat-rated charges as quickly as possible estimates at the 55 percent level for recovered through per-minute consistent with avoiding short-term companies that have not developed originating and terminating access market distortions. We do that by: (1) actual percentage estimates on the charges. On July 1, 1997, drawing down the per- record will be reasonable, but will also 239. To avoid the adverse effects of minute-of-use residual TIC charge by minimize the risk that we will eliminate per-minute pricing of costs that may be targeting the price cap productivity (X- facilities-based TIC costs with targeted NTS, we require price cap LECs to factor) adjustment to the trunking PCI X-factor price cap reductions. recover residual TIC amounts not and, specifically, the TIC SBI, thus 236. The ‘‘GDP–PI minus X’’ otherwise eliminated by targeted X- effectively spreading those residual TIC adjustments LECs ordinarily would factor reductions, described above, revenues, which otherwise would be apply to each of their price cap indices through the flat-rated PICC to the extent recovered exclusively on a minute of (i.e., revenues) for the July 1, 1997, the PICC is below its ceiling. In order to use basis, among the universe of (both annual filing shall be applied by LECs ensure that primary residential and traffic-sensitive and NTS) access to reduce their calculated anticipated single line business subscribers do not services and moving TIC recovery closer ‘‘residual’’ TIC revenues. For tariffs to pay more than their fair share of the to flat-rated recovery; (2) starting in become effective July 1, 1997, the price residual TIC, however, we prohibit price January 1998, recovering remaining cap LECs shall calculate the annual cap LECs from charging a PICC on residual TIC revenues through PICC price cap reduction resulting from the primary residential or single-line Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31905 business lines that recovers TIC modify our rules to permit incumbent new recovery procedures on small revenues that exceed residual TIC LECs to assess any per-minute residual business entities, including small LECs revenues permitted under our price cap TIC charge only on minutes that utilize and new entrants, and find that the rules divided by the total number of incumbent LEC transport facilities, and changes will facilitate the development access lines. As the PICC caps increase not on any switched minutes of CAPs of a competitive marketplace by moving each year, more of the residual TIC that interconnect with the incumbent incumbent LEC rates toward cost-based charge can be included in the flat-rated LEC switched access network at the end levels and by eliminating the ability of PICC. Any residual TIC amounts that office. incumbent LECs to assess the TIC on cannot be recovered through the PICC 241. Other Approaches. We reject switched access minutes that do not use shall be recovered on a per-minute basis alternative methods for recovering the incumbent LEC transport facilities. from originating traffic, subject to a cap TIC that were proposed in the record. These pricing revisions may create new on per-minute originating access The majority of the incumbent LEC opportunities for small entities wishing charges, as explained in Section III.A, parties supported recovering any to enter the telecommunications market. above. If this cap is exceeded, the remaining costs in the TIC by bulk E. SS7 Signalling residual TIC shall be recovered through billing such amounts to IXCs based on per-minute terminating switched access each IXC’s share of revenues, or 1. Background rates. Although a portion of the residual presubscribed lines. Other incumbent TIC will be recovered through PICC LECs proposed establishing ‘‘public 244. SS7 is a network protocol used charges, the TIC will remain in the policy’’ elements to recover the residual to transmit signalling information over trunking basket. Therefore, to ensure TIC. These approaches would insulate common channel signalling networks. that excess headroom is not created in TIC costs from the pressures of the As described in greater detail in the the trunking basket, price cap LECs competitive market and guarantee NPRM, signalling networks like SS7 shall include the TIC revenues received incumbent LECs the recovery of these establish and close transmission paths from the flat-rated PICC in calculating amounts, even where such costs have over which telephone calls are carried. the API for the trunking basket and the resulted from inefficiencies that the Signalling networks are also used to SBI for the TIC. competitive market—but not retrieve information from remote data regulators—detected and otherwise bases to enable credit card and collect 240. The policies adopted when the would eliminate. This would be calling. SS7 systems are also used to TIC was created require incumbent inconsistent with the development of an transmit information needed to provide LECs to assess the TIC on all minutes efficient competitive market. Our custom local area signalling services that interconnect with the incumbent resolution of the TIC will allow LECs a like automatic call back. LEC switched access network, including reasonable opportunity to recover their minutes that transit a CAP’s transport 245. An SS7 network consists of costs, without providing a guarantee. several primary components—signalling network without using any incumbent We also reject the idea of spreading the LEC transport facilities. As we noted in points, signal transport links, and remaining costs recovered by the TIC dedicated lines used for access to an the NPRM, and as some commenters proportionately over all transport assert, if the incumbent LEC’s transport incumbent LEC’s signalling network services, as suggested by AARP, et al. As (signal links). Signalling points are rates are kept artificially low and the we noted earlier, some of the remaining difference is recovered through the TIC, nodes in an SS7 network that originate, costs in the TIC may implicate certain transmit, or route signalling messages. competitors of the incumbent LEC pay Commission decisions separating costs some of the incumbent LEC’s transport There are three principal types of between the federal and state signalling points: service switching costs. In a recent arbitration between jurisdictions and thus may be related to Teleport and US West, the Colorado points (SSPs), service control points services other than transport. We, (SCPs), and signalling transfer points Commission has precluded US West therefore, believe that awaiting further from imposing the TIC on competitors (STPs). An SSP is a switch that can consideration by a Joint Board is a more originate, transmit, and receive for the portion of transport that US West practical means of ultimately resolving messages for call setup and database does not provide. See TCG Colorado the TIC issue. transactions. An SCP serves as a Petition for Arbitration Pursuant to sec. 242. Some parties have requested that 252(b) of the Telecommunications Act a portion of the costs recovered by the database that stores and provides of 1996 to Establish an Interconnection TIC should be considered to be information used in the routing of calls, Agreement with US West, Docket No. universal service costs. We do not find such as the line information database 96A–329T, Decision Regarding Petition this argument persuasive. Elsewhere in (LIDB) used to validate calling cards or for Arbitration, Decision No. C96–1186 this Order, we have reallocated the the database that identifies the (adopted November 5, 1996); TCG TIC’s identifiable cost components. On designated long-distance carrier for toll- Colorado Petition for Arbitration the basis of the record before us, we free service. An STP is a specialized Pursuant to sec. 252(b) of the cannot clearly associate the remaining packet switch that performs screening Telecommunications Act of 1996 to TIC revenues with any particular and security functions and switches SS7 Establish an Interconnection Agreement facilities or services. The parties arguing messages within the signalling network. with US West, Docket No. 96A–329T, that these costs are related to universal 246. Signal transport links are Order Denying Applications for service have not made any clear facilities dedicated to the transport of Rehearing, Reargument, or showing as to the source of these costs SS7 messages within the incumbent Reconsideration, Decision No. C96– or demonstrated why they believe that LEC’s signalling network. Finally, 1344 (adopted December 18, 1996), at these TIC revenues are either costs of dedicated network access lines (DNALs) ¶ I.B.1.4. We find that our current universal service that should be consist of dedicated circuits that policy, which requires competitive recovered from the universal service transmit queries between the incumbent entrants to pay the TIC even in cases fund or constituent costs of supported LEC’s signalling network and the where it provides its own transport, is services. signalling networks of other individual inconsistent with the procompetitive 243. We have analyzed the effect of carriers, such as IXCs. A carrier’s DNAL goals of the 1996 Act. We therefore the reallocation of TIC costs and the is connected to an incumbent LEC’s 31906 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations signalling network through a port on an down calls. For example, ISUP messages granting Ameritech a waiver to incumbent LEC’s STP. include the initial address message used implement its unbundled SS7 rate 247. Under the interim transport rate to establish and close the transmission structure, we noted that Ameritech had structure, incumbent LECs charge IXCs path used to carry a telephone call. previously installed the equipment and and other access customers a flat-rated TCAP messages, on the other hand, are other facilities needed to meter charge (dedicated signalling transport) used to carry information between SSPs independent signalling usage. Although under Part 69 for the use of dedicated that support particular services, such as we encourage actions that would facilities used to connect to the toll free services, LIDB services and promote disaggregation and unbundling incumbent LEC’s signalling network. certain custom local area signalling of SS7 services, we will not require This rate element has two services (CLASS) like automatic call incumbent LECs to implement such an subelements—a flat-rated signalling link back. We noted that differentiation approach and incur the associated charge for the dedicated network access between charges for ISUP and TCAP equipment costs of doing so. The record line (dedicated signalling line) and a messages may be economically justified indicates that, as a general matter, the flat-rated STP port termination charge. because TCAP messages tend to be costs of mandating the installation of Most other signalling costs, such as shorter in average length and place metering equipment may well exceed costs for switching messages at the STP lower demands on the signalling the benefits of doing so. and transmitting messages within the network that ISUP messages. 253. Instead, we will permit signalling network, are not recovered 251. The NPRM also requested incumbent LECs to adopt unbundled through facility-based charges and thus comment regarding the appropriate signalling rate structures at their most, if not all, of these costs are placement of SS7 signalling elements in discretion and acquire the appropriate embedded in the TIC or in the local price cap baskets. Currently, STP port measuring equipment as needed to switching charge and recovered through termination rates and charges for the implement such a plan. Specifically, per-minute-of-use charges. Retrieval of signalling link, or DNAL, are placed in incumbent LECs may implement the information from databases for toll-free the trunking basket. Because both same unbundled rate structure for SS7 calls and LIDB databases, however, is services are dedicated to particular SS7 services that we approved in the charged on a per-query basis. customers, rates for these elements are Ameritech SS7 Waiver Order. We 248. In the NPRM, we solicited flat-rated. We requested comment on recognize, however, that other signalling comment on whether the Commission whether the STP port termination rate structures may achieve the same should revise its rate structure for SS7 charge should be placed in its own benefits that are available under the services to reflect the SS7 rate structure service category in the traffic-sensitive Ameritech rate structure. Hence, an implemented by Ameritech. In March, basket. We noted that interconnectors incumbent LEC may implement an 1996, the Commission granted a waiver can provide their own signalling link, unbundled signalling rate structure that to Ameritech, allowing it to restructure exposing that service element to some varies from the approach implemented its recovery of SS7 costs through four measure of competition. The STP port in the Ameritech SS7 Waiver Order by unbundled charges. These charges termination, on the other hand, is filing a petition demonstrating that the correspond to various functions relatively insulated from competitive establishment of new rate elements performed by signalling networks: pressures because it is part of the implementing such a service is signal link, STP port termination, signal incumbent LEC’s STP and must be consistent with the public interest. We transport, and signal switching. purchased from the incumbent LEC note, however, that variations in 249. The Ameritech waiver was under existing network architecture. signalling rate structures among granted to allow Ameritech to realign its incumbent LECs could impose burdens 2. Discussion charges for SS7 services more closely on IXCs if IXCs must adapt to a diverse with the manner in which such costs are 252. As we noted in the Ameritech range of unbundled signalling rate incurred. Unbundling of SS7 services SS7 Waiver Order, the removal of SS7 structures. We anticipate that, if from transport and local switching costs from the local switching and incumbent LECs choose to adopt ensures that transport and local transport interconnection charge rate unbundled rate structures for their SS7 switching customers do not pay for SS7 elements would benefit access network services, they will evaluate services they do not use. Unbundling customers that pay for these services but how the implementation of these plans also enables Ameritech to offer SS7 do not actually use an incumbent LEC’s will affect their prospective customers. services to competing providers of local signalling services. It would also benefit 254. With respect to rate exchange and exchange access services alternative local service providers by differentiation between ISUP and TCAP without requiring the purchase of other enabling them to purchase separate SS7 messages, the NPRM expressed the elements that the competitors do not services from incumbent LECs to concern that imposing rate need. In support of its waiver petition, support their provision of competing differentiation may be inconsistent with Ameritech noted that it had received local exchange or exchange access rate structure simplicity. Several numerous customer requests for such services. Unbundling the individual SS7 commenters indicate that the costs of unbundling. It also explained that it had components into separate charges implementing rate differentiation would deployed equipment necessary for would further promote efficiency by exceed the benefits of such an approach. measuring third-party usage of its SS7 ensuring that signalling charges more We further note that commenters offered networks, enabling the company to bill accurately reflect the costs of providing little, if any, general support for the its SS7 services separately from its such services. Competitive service adoption of rate differentiation. switched access services. providers could limit their signalling Accordingly, to avoid unnecessary 250. The NPRM also requested costs by purchasing only the signalling complexity and to avoid the imposition comment on whether incumbent LECs elements they need. Despite these of unnecessary regulatory costs, we will should be allowed to impose separate benefits, however, we are reluctant to not impose a rate differential between charges for ISDN User Part (ISUP) impose on incumbent LECs the cost ISUP and TCAP messages. messages and Transaction Capabilities burden of installing metering or other 255. With respect to the placement of Application Part (TCAP) messages. ISUP equipment needed to measure third SS7 rate elements in price cap baskets, messages are used to set up and take party usage of signalling facilities. In we have previously recognized that the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31907 signalling link and the STP port upon a competitive showing as part of not propose, however, to abandon the termination are not subject to the same its public interest justification. Because possibility of using the prescriptive level of competition. As noted in the technological advancements emerge tools at our disposal in the event that Ameritech SS7 Waiver Order, STP port rapidly, the adoption of uniform rate competition does not develop in some termination is provided only by structures corresponding to particular places. incumbents while the signalling link technologies may slow investment in 259. As an alternative to the proposed can be provided by SS7 customers the development of newer technologies market-based approach, we also sought themselves or by other alternative or improvements in current comment on a prescriptive approach, providers. Comments filed in this technologies. Indeed, as a general under which incumbent LECs would be proceeding also acknowledge this matter, incumbent LECs oppose the required to change their prices for some competitive disparity. Although adoption of uniform rate structures for or all exchange access services using Ameritech discounts the risk that STP new technologies, suggesting that strict specific measures adopted by the port termination charges would be used uniform rules in this regard could Commission to more accurately ensure to offset price reductions for the signal inhibit development of such that access charges are closely related to link, it nevertheless acknowledges the technologies. Accordingly, we will the economic costs of providing existence of the competitive differential refrain from adopting in this Order interstate access services. We also we suggested in the NPRM. Other specific rate structures with respect to invited comment on whether the two commenters argue that the competitive SONET, AIN, or other new technologies. approaches could be merged in some disparity is sufficient to justify concerns As noted above, however, our rules fashion. We emphasized that our that price cap LECs would adjust their already accommodate rate element ultimate goal under any approach, rates to account for the competitive adjustments that may be needed on an whether market-based, prescriptive or differential. Accordingly, we will ad hoc basis when technological combined, is to remove from price cap establish a new STP port termination advancements justify such regulation LEC services that are subject rate element in the traffic-sensitive modifications. As particular new to substantial competition. Instead of basket. Placing these SS7 services in technologies become used on a price cap regulation, we expect different price cap baskets will ensure widespread basis, we can always eventually to rely on the operation of consistency with the Commission’s consider whether there is a need for a competitive local markets to prevent general approach of maintaining uniform rate structure at that point. incumbent LECs from exercising market elements with similar competitive power, and thereby to protect IV. Baseline Rate Levels characteristics in the same service consumers. baskets. A. Primary Reliance on a Market-Based 260. In this section, we endorse the Approach With a Prescriptive Backdrop use of a market-based approach F. Impact of New Technologies and the Adoption of Several Initial generally. Our market-based approach 256. The NPRM requested comment Prescriptive Measures will retain the protection afforded by regarding the rate structure treatment of price cap regulation, while relaxing new technologies that enable new 1. Background particular restrictions on incumbent telecommunications services and, by 258. In the NPRM, we established a LEC pricing as competition emerges, enhancing the productivity of goal of encouraging efficient thereby permitting the development and telecommunications facilities, lower competitors to enter local exchange operation of competitive markets, which prices for services in the future. These access markets so that incumbent LECs will maximize the efficient allocation of technologies, which we describe in would face substantial competition for telecommunications services and greater detail in the NPRM, include the entire array of interstate access promote consumer welfare. This section synchronous optical networks (SONET), services. As a particular service also explains how, if competition fails Asynchronous Transfer Mode (ATM) becomes subject to substantial to emerge over time for certain access switching, and advanced intelligent competition from new providers, we services in particular geographic areas, networks (AIN). We invited commenters proposed to remove that service from we will ensure that the rates for those to recommend specific rate structure price cap and tariff regulation. We services reflect the forward-looking rules that would reflect the manner in sought comment on two general economic costs of providing the which incumbent LECs incur costs approaches for a transition to reliance services. In the NPRM, we sought when providing services utilizing such on substantial competition to ensure comment on a number of specific issues new technologies. that interstate access charges are closely concerning the timing and degrees of 257. As a general matter, the related to forward-looking economic pricing flexibility and ultimate Commission is reluctant to adopt costs: a ‘‘market-based’’ approach and a deregulation. We recognize that we detailed rules governing rate structures ‘‘prescriptive’’ approach. Under a must attend carefully to this task of for recovering the cost of deploying market-based approach, we would granting incumbent LECs increased advanced technologies. We note that, in permit market forces to operate as pricing flexibility commensurate with the Price Cap Third Report and Order, competition emerges, allowing an competitive developments, and we will we adopted rules that permit price cap incumbent to change its prices in resolve these issues of timing and LECs to petition the Commission for the response to competitive entry. To that degree in detail in a subsequent report establishment of one or more switched end, we proposed a two-phase approach and order in this docket, where we can access rate elements to accommodate in which incumbent LECs would be more fully discuss these matters. new services. Under these rules, permitted certain pricing flexibility 261. Elsewhere in this Order, we petitioners must demonstrate either of upon a showing that meaningful adopt or propose several measures that the following: (1) that the new rate competitive entry is possible within a work within our current price cap elements would be in the public particular local exchange and exchange structure to lower baseline access charge interest; or (2) that another LEC has access market, followed by a further rate levels consistent with evidence that previously obtained approval to relaxation of price cap regulation when the revised rate levels better reflect the establish identical rate elements and meaningful actual competition underlying costs of providing interstate that the original petition did not rely developed within the market. We did access services. In Section IV.C below, 31908 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations we order an exogenous cost reduction to relied upon as much as possible to access services will generally move reflect the completion of the protect consumers and the public toward the forward-looking economic amortization of equal access costs. In interest. In addition, using a market- cost of providing such services in Section IV.D, we order reallocation of based approach should minimize the response to increased competition in certain marketing and retail expenses potential that regulation will create and local exchange and exchange access and discuss the reallocation of GSF maintain distortions in the investment markets. In addition, competition will costs. We issue a further notice on GSF decisions of competitors as they enter do a better job of determining the true costs in Section VII. In the companion local telecommunications markets. economic cost of providing such Price Cap Performance Review for Local Finally, under section 254 of the 1996 services. As competitive entry becomes Exchange Carriers and Transport Rate Act, implicit universal service increasingly possible, IXCs that now Structure and Pricing, Fourth Report subsidies, wherever possible, are to be purchase interstate switched access and Order, CC Docket Nos. 94–1 and made explicit and supported by all services from incumbent LECs will be 91–213, FCC 97–159, lll FR lll carriers on an equitable and non- able to bypass those services where the (released May 8, 1997) (Price Cap discriminatory basis. To the extent that prices (interstate access charges) do not Fourth Report and Order), which we any implicit subsidies remain in reflect the economic costs of providing also adopt today, we modify our current interstate access charges because it was the underlying services. Those IXCs can price cap plan by adopting a single not feasible to identify them or make do this by entering the local markets productivity offset (X-Factor) of 6.5 them explicit, our market-based themselves as local exchange service percent and eliminating sharing while approach will have the effect of making providers, thereby self-providing maintaining the low-end adjustment. those implicit subsidies subject to being interstate access services for their new competed away as competitors offer 2. Discussion local exchange service customers. They comparable services at prices that do can also seek out competitive providers 262. The Commission’s objective is not include the subsidies. In addition, of comparable services. As customers the one set forth in the 1996 Act— we note that the rate structure changes choose providers other than incumbent ‘‘opening all telecommunications we adopt today go a long way towards LECs as their local providers, interstate markets to competition.’’ Therefore, we achieving such ends because the access services will come to be priced must ensure that our own regulations do inefficiency produced by distortions in competitively. Incumbent LECs will not unduly interfere with the markets ‘‘rises as a quadratic function of have to respond to competitors’ development and operation of these the relative price distortion [Scherer & offerings with lower-priced access markets as competition develops. If we Ross, supra., at 662].’’ Therefore, the services of their own in order to retain successfully reform our access charge first steps made toward removing customers that would otherwise switch rules to promote the operation of distortions caused by our regulations to competitors’ networks, further competitive markets, interstate access will produce the greatest benefits. increasing the effect of competition on charges will ultimately reflect the 264. The market-based approach to overall access charge payments. forward-looking economic costs of access charge reform that we adopt will providing interstate access services. not, as some parties assert, expose 266. The 1996 Act has created an This is so, in part, because Congress customers of interstate access services to unprecedented opportunity for established in the 1996 Act a cost-based the unfettered exercise of market power. competition to develop in local pricing requirement for incumbent We will continue to maintain the telephone markets. It also has provided LECs’ rates for interconnection and current mechanisms upon which we this Commission with tools for opening unbundled network elements, which are rely to ensure that rates for these markets to competition, and for sold by carriers to other carriers. As we services are ‘‘just and reasonable [as implementing our market-based have recognized, interstate access required by section 201 of the relaxation of regulation so that interstate services can be replaced with some Communications Act],’’ and not access charges reflect forward-looking interconnection services or with unjustly or unreasonably discriminatory economic costs. We recognize, however, functionality offered by unbundled [as required by section 202 of the that competition is unlikely to develop elements. Because these policies will Communications Act]. Instead of at the same rate in different locations, greatly facilitate competitive entry into exposing customers to harm, we expect and that some services will be subject to the provision of all telecommunications that permitting incumbent LECs certain increasing competition more rapidly services, we expect that interstate access kinds of pricing flexibility in response than others. The observation that services will ultimately be priced at to the development of competition will competitive entry will occur in some competitive levels even without direct allow prices for interstate access places, and for some services, more regulation of those service prices. services to adjust in ways that reflect the rapidly than others is a corollary to the 263. We decide that adopting a underlying economic costs of providing rule that firms in competitive markets primarily market-based approach to those services without moving outside seek to maximize their profits. To reforming access charges will better the range of rates that are just and maximize profits, firms naturally seek serve the public interest than attempting reasonable. This process of relaxing out those customers and services on immediately to prescribe new rates for regulation as competition develops, and which they can generate the most all interstate access services based on ultimately deregulating services subject profits. Therefore, some customers are the long-run incremental cost or to effective competition, is well naturally more desirable than others at forward-looking economic cost of established. For example, many of the any given point in time. As competitors interstate access services. Competitive types of pricing flexibility discussed in attempt to gain the patronage of the markets are superior mechanisms for the NPRM are similar to forms of pricing customers offering the greatest profit protecting consumers by ensuring that flexibility we have in the past accorded opportunities, they offer lower-priced or goods and services are provided to incumbent LECs and IXCs facing more desirable services. These actions consumers in the most efficient manner increased competition in markets for have the effect of reducing over time the possible and at prices that reflect the particular services. profitability of serving those particular cost of production. Accordingly, where 265. Economic teaching also leads to customers and, as this occurs, the competition develops, it should be the conclusion that rates for interstate relative profitability of serving other Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31909 customers or offering other services that we adopt in this Order and that we the subsequent report and order in this increases. Therefore, competitors begin will be adopting elsewhere to satisfy the docket. seeking to serve these other customers, universal service goals in section 254. 271. As set forth in the summary of and entry occurs in new places, or for By this date, we also expect to have comments appended to this order, new services. Accordingly, we additional regulatory tools by which to AT&T cites to Farmers Union Central anticipate that competition will drive assess the reasonableness of access Exchange, Inc. v. FERC, 734 F.2d 1486, rates for some interstate access services charges. We may, for example, be able 1508 (D.C. Cir.) (Farmers Union), cert. toward more economically efficient to establish benchmarks based on prices denied, Williams Pipe Line Co. v. levels more rapidly in some areas than for the interstate access services for Farmers Union Central Exchange, Inc., rates for other services or in other areas. which competition has emerged, and 469 U.S. 1034 (1984), for the Where competition develops, we will use the prices actually charged in proposition that ‘‘[r]eliance on provide incumbent LECs with competitive markets to set rates for non- competitive forces to constrain additional flexibility, culminating in the competitive services and markets. exchange access rates, particularly in removal of incumbent LECs’ interstate Carriers could be required either to set the presence of strong indications that access services from price regulation their rates in accordance with the market forces will not produce the where they are subject to sufficient benchmarks or to justify their rates intended results, would be arbitrary and competition to ensure that the rates for using their cost studies. capricious and contravene the those services are just and reasonable, 269. We anticipate that the pro- Commission’s statutory duty to ensure and are not unjustly or unreasonably competitive regime created by the 1996 just, reasonable, and nondiscriminatory discriminatory. Act, and implemented in the Local rates.’’ We disagree with AT&T’s 267. We also recognize, however, that Competition Order and numerous state assertion. In Farmers Union, FERC had there will be areas and services for commission decisions, will generate stated in its relevant order that which competition may not develop. competition over the next few years. ratemaking for oil pipelines should be Therefore, we shall retain many of the Further, it would be imprudent to used solely to prevent price gouging, existing safeguards afforded by our price prejudge the effectiveness of those and had interpreted the Congressional cap regulation, including the measures at creating competitive local mandate of ‘‘just and reasonable’’ rates productivity offset (X-Factor), which markets. Rather than ignore or interfere as requiring that rates be kept within the requires incumbent LECs to adjust their with the effects of this developing zone of commercial reasonableness, not public utility reasonableness. Under this access charges to reflect changes in the competition on prices for interstate economic cost of providing service. In interpretation, FERC had concluded that access services, we find that the public addition, we also adopt a prescriptive it would rely primarily on market forces interest is best served by permitting ‘‘backstop’’ to our market-based to keep rates reasonable. emerging competition to affect access approach that will serve to ensure that 272. The court in Farmers Union charge rate levels. In addition, the all interstate access customers receive recognized that ‘‘[m]oving from heavy to experience we gain from observing the the benefits of more efficient prices, lighthanded regulation * * * can be effects of emerging competition on even in those places and for those justified by a showing that * * * the interstate access services will permit us services where competition does not goals and purposes of the statute will be more effectively and efficiently to develop quickly. To implement our accomplished through substantially less implement any prescriptive measures backstop to market-based access charge regulatory oversight,’’ but objected to reform, we require each incumbent that may be needed in the future to FERC’s failure to establish that its new price cap LEC to file a cost study no ensure that interstate access services approach would satisfy the ‘‘just and later than February 8, 2001, remaining subject to regulation are reasonable’’ standard. The court rejected demonstrating the cost of providing priced in accordance with the forward- FERC’s position that oil pipeline those interstate access services that looking economic cost of providing ratemaking should protect only against remain subject to price cap regulation those services. ‘‘egregious exploitation and gross because they do not face substantial 270. Economic logic holds that giving abuse’’ as being inconsistent with the competition. The Commission will incumbent LECs increased pricing mandate that Congress had established require submission of such studies flexibility will permit them to respond for FERC. The court concluded that before that date if competition is not to competitive entry, which will allow FERC had not shown that market forces developing sufficiently for our market- prices to move in a way that they would were sufficient to rely upon in setting based approach to work. Studies should not have moved were the pricing reasonable rates. identify and quantify forward-looking restrictions maintained. This can lead to 273. We reject AT&T’s argument that costs, short-run and long-run, that are better operating markets and produce our market-based approach to access incremental to providing each such more efficient outcomes. Deregulation charge reform is analogous to FERC’s service, and also costs that are common before competition has established conduct at issue in Farmer’s Union. Our as between various services. These itself, however, can expose consumers access charge and price cap rules are studies are required only for non- to the unfettered exercise of monopoly designed to ensure that access charges competitive services; as stated above, power and, in some cases, even stifle remain within the ‘‘zone of we do not intend to regulate prices of the development of competition, leaving reasonableness’’ defining rates that are services that are subject to substantial a monopolistic environment that ‘‘just and reasonable,’’ and our market- competition. adversely affects the interests of based approach will also be designed to 268. We have chosen this date in consumers. Therefore, it is important implement this statutory requirement. It order to give competition sufficient time that we design our market-based will not remove incumbent LECs from to develop substantially in the various approach carefully. We must, among regulation immediately, but will markets for interstate exchange access other things, decide which, if any, of the implement deregulation in steps, as services. We have also chosen this date rules setting forth specific competitive competitive conditions warrant. to permit us and all interested parties to triggers and corresponding flexibility as Throughout the transition to take into account the effects of proposed in the NPRM we should deregulation in the face of substantial implementing the substantial changes adopt. We will resolve these issues in competition, we will maintain many 31910 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations safeguards against unjust or parties argue that an incumbent LEC can the competing in-region, interexchange unreasonable rates, such as the price create a situation where the relationship providers raised their prices to recover cap indices. We will deregulate between the LEC’s ‘‘high’’ exchange the increased access charges, the incumbent LEC services only when it is access prices and its affiliate’s ‘‘low’’ incumbent LEC’s interexchange affiliate reasonable to conclude that competition prices for long-distance services forces could seek to expand its market share by has developed to such an extent that the competing long-distance carriers either not matching the price increase. The market will ensure just and reasonable to lose money or to lose customers even incumbent LEC affiliate could also set rates. if they are more efficient than the LEC’s its in-region, interexchange prices at or 274. Second, our market-based affiliate at providing long-distance below its access prices. Its competitors approach is an eminently reasonable services. It is this nonremunerative would then be faced with the choice of method for pursuing our goal of relationship between the input prices lowering their retail rates for promoting competition and ensuring the and the affiliate’s prices, and not the interexchange services, thereby economically efficient pricing of absolute levels of those prices, that reducing their profit margins, or interstate access services. As defines a price squeeze. In the most maintaining their retail rates at the competition emerges, the market-based extreme case, a price squeeze involves higher price and risk losing market approach will permit access charges to a monopolist setting input prices that share. move towards the levels that will are actually higher than its prices in the 278. We conclude that, although an prevail in competitive markets. During output market. incumbent LEC’s control of exchange the transition to competitive markets, 276. Price cap regulation of access and exchange access facilities may give access services not subject to prices limits the ability of LECs to raise it the incentive and ability to engage in competition will remain subject to price the prices of the input services. a price squeeze, we have in place cap regulation, and we will eventually Commenters raising price squeeze adequate safeguards against such prescribe rates for those services at concerns argue, however, that a LEC’s conduct. The Policy and Rules forward-looking economic cost levels, to interexchange affiliate will still be in a Concerning Rates for Competitive ensure that all consumers reap the position to implement a price squeeze Common Carrier Services and Facilities benefits of economically-efficient prices. by setting long-distance rates close to Authorizations Therefor, CC Docket No. Unlike the FERC regulation at issue in the rates for access services, thereby 79–252, Fifth Report & Order, 49 FR Farmers Union, our market-based forcing IXCs to charge below-cost rates 34824 (September 4, 1984) (Fifth approach to promoting the development to retain customers. They argue that Competitive Carrier Report and Order), of competitive markets and LECs’ interexchange affiliates have requirements aid in the prevention and economically-efficient pricing will not lower costs of providing interexchange detection of such anticompetitive be based on ‘‘largely undocumented services because of their affiliation with conduct. In our recent Regulatory reliance on market forces * * *.’’ monopoly providers of interstate access Treatment of LEC Provision of Instead, we will design our approach so services, and not as a result of being Interexchange Services Originating in that deregulation occurs only when the more efficient. According to these the LEC’s Local Exchange Area and reliability of market forces can be fully commenters, the relevant economic Policy and Rules Concerning the determined with respect to a particular costs of providing interstate Interstate, Interexchange Marketplace, service. Finally, we observe that FERC’s interexchange services will be lower for Second Report and Order in CC Docket mandate in Farmers Union was one of the LEC affiliate offering interexchange No. 96–149 and Third Report and Order rate regulation due to market failure and services than for competing IXCs in CC Docket No. 96–61, 62 FR lll concern over monopoly power. In light because it only has to recover the true (released April 18, 1997) (Dom/Nondom of the 1996 Act, our mandate is no economic cost of providing the R&O), we decided to retain the Fifth longer strictly or solely one of rate interstate access services (since the Competitive Carrier Report and Order regulation. Congress has stated its desire owners of the LEC and its interexchange separation requirements for incumbent to establish ‘‘a pro-competitive, affiliate will want the two entities to LEC provision of in-region interLATA deregulatory national policy maximize their joint profits), whereas services. These requirements apply both framework.’’ Our market-based the IXCs will be forced to pay interstate to BOCs and to other incumbent LECs. approach will be designed to coincide access charges that are above the true In addition, as discussed in that order, with and promote this objective. economic cost of providing the BOC interexchange affiliates are subject 275. Price Squeeze Concerns Are underlying services. to the safeguards set forth in section 272 Adequately Addressed. Several parties 277. Absent appropriate regulation, an of the Act. have argued that current access charge incumbent LEC and its interexchange 279. The Fifth Competitive Carrier rate levels create the conditions for an affiliate could potentially implement a Report and Order separation anticompetitive price squeeze when a price squeeze once the incumbent LEC requirements have been in place for LEC affiliate offers interexchange began offering in-region, interexchange over ten years, and independent (non- services in competition with IXCs. A toll services. Although no BOC affiliate BOC) incumbent LECs have been price squeeze, as the term is used by may offer such services at this time, providing in-region, interexchange these parties, refers to a particular, well- GTE, SNET, Sprint and other incumbent services on a separated basis with no defined strategy of predation that would LECs do have affiliates offering such substantiated complaints of a price involve the incumbent LEC setting services. The incumbent LEC could do squeeze. Under these separation ‘‘high’’ prices for interstate exchange this by raising the price of interstate requirements, incumbent LECs are access services, over which the LEC has access services to all interexchange required to maintain separate books of monopoly power (albeit constrained by carriers, which would cause competing account, permitting us to trace and regulation), while its affiliate is offering in-region carriers to either raise their document improper allocation of costs ‘‘low’’ prices for long-distance services retail rates to maintain their profit and/or assets between a LEC and its in competition with the other long- margins or to attempt to maintain their long-distance affiliate, as well as to distance carriers. Because interstate market share by not raising their prices detect discriminatory conduct. In exchange access services are a necessary to reflect the increase in access charges, addition, we prohibit joint ownership of input for long-distance services, these thereby reducing their profit margins. If facilities, which further reduces the risk Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31911 of improper allocations of the costs of induce substantial additional entry in product at a price so low that (equally- common facilities between the local markets. Accordingly, there should efficient) competitors cannot match the incumbent LEC and its interexchange be a reduced likelihood that an price and still earn a ‘‘living profit.’’ affiliate, as discussed at length in the incumbent LEC could successfully Alcoa, 148 F.2d at 437–38. Over time, Dom/Nondom R&O and the employ such a strategy to obtain the courts have developed several tests for Implementation of the Non-Accounting power to raise long-distance prices to determining when the relationship Safeguards of Sections 271 and 272 of the detriment of consumers. between the two prices is sufficiently the Communications Act of 1934, as 281. Furthermore, even if a LEC were adverse to competitors that it constitutes amended, First Report and Order and able to allocate improperly the costs of an anticompetitive price squeeze. Further NPRM, FCC 96–489 ¶¶ 159–62 its affiliate’s interexchange services, we Although we believe it would not serve (December 24, 1996) (Non-Accounting conclude that it is unlikely that the the public interest for us knowingly to Safeguards Order), on recon., FCC 97– LEC’s interexchange affiliate could permit a price squeeze to occur, and to 52 (February 19, 1997), recon. pending, engage successfully in predation. At rely entirely on the adequacy of CC Docket No. 96–149, petition for least four interexchange carriers— antitrust law remedies to protect the summary review in part denied and AT&T, MCI, Sprint, and LDDS public, we take comfort in the fact that motion for voluntary remand granted WorldCom—have nationwide, or near- such remedies exist should an sub nom., Bell Atlantic v. FCC, No. 97– nationwide, network facilities that cover anticompetitive price squeeze occur in 1067 (D.C. Cir. filed March 31, 1997), every LEC’s region. These are large, spite of the safeguards we have adopted. petition for review pending sub nom., well-established companies with In particular, although a price squeeze SBC Communications v. FCC, No. 97– millions of customers throughout the engaged in by several LECs, particularly 1118 (D.C. Cir. filed March 6, 1997) nation. It is unlikely, therefore, that one if it involved more than one of the BOCs (held in abeyance pursuant to court or more of these national companies can or GTE, could have a significant impact order filed May 7, 1997), 62 FR 2991 be driven from the market with a price on interexchange competitors, we (January 21, 1997) (addressing the Act’s squeeze, even if effectuated by several believe that the antitrust laws will act as prohibition of BOC joint ownership LECs simultaneously, whether acting a strong backstop to our own with its interexchange affiliate pursuant together or independently. Even if it enforcement process so that the risk of to section 272). As we also discussed at could be done, it is doubtful that the such concerted activity is sufficiently length in those orders, the prohibition LECs’ interexchange affiliates would limited. Because the rates charged by on jointly-owned facilities also helps to later be able to raise, and profitably LEC interexchange affiliates will not be deter any discrimination in access to the sustain, prices above competitive levels. regulated, we do not believe that a court LEC’s transmission and switching As Professor Spulber has observed, would reject a price squeeze claim facilities by requiring the affiliates to ‘‘[e]ven in the unlikely event that under the antitrust laws on the grounds follow the same procedures as [LECs’’ interexchange affiliates] could that ‘‘ ‘normally’ a price squeeze will not competing interexchange carriers to drive one of the three large constitute an exclusionary practice in obtain access to those facilities. Finally, interexchange carriers into bankruptcy, the context of a fully regulated our requirement that incumbent LECs the fiber-optic transmission capacity of monopoly.’’ Town of Concord v. Boston offer services at tariffed rates, or on the that carrier would remain intact, ready Edison Co., 915 F.2d 17 (1st Cir. 1990) same basis as requesting carriers that for another firm to buy the capacity at (J. Breyer), cert. denied, lll U.S. distress sale and immediately undercut have negotiated interconnection lll, 111 S. Ct. 1337 (1991). Indeed, the [affiliates’] noncompetitive prices.’’ agreements pursuant to section 251 the court in that case explicitly declined Daniel F. Spulber, Deregulating reduces the risk of a price squeeze to the to address the ‘‘special problem’’ posed Telecommunications, 12 Yale J. Reg. 25, extent that an affiliate’s long-distance by a price squeeze allegation against a 60 (1995). prices would have to exceed their costs 282. Finally, in addition to our firm regulated in the input market and for tariffed services. regulations and the provisions of section undercutting rivals’ prices in the 280. Current conditions in markets for 251 of the Act, the antitrust laws also unregulated market where inputs are interexchange services give us comfort offer a measure of protection against a used. that an anticompetitive price squeeze is possible price squeeze. Beginning with 283. Other Concerns Raised by unlikely to occur as a result of our Judge Learned Hand’s opinion in United Commenters. Several commenters raised decision not to prescribe immediately States v. Aluminum Co. of America concerns that our market-based access charge rates at forward-looking (Alcoa), 148 F.2d 416, 437–38 (2d Cir. approach to access charge reform might economic cost levels. If an incumbent 1945), a specific body of precedent has permit incumbent LECs to engage in LEC does attempt to engage in an developed under federal antitrust law cross subsidization, either between anticompetitive price squeeze against defining situations where a price competitive and non-competitive rival long-distance providers, the squeeze can be actionable as a form of services, or between interstate access provisions of the Act should permit new monopolization or attempted services and other services such as entrants or other competitors to seek out monopolization under Section 2 of the video distribution. No evidence has or provide competitive alternatives to Sherman Act. 15 U.S.C. sec. 2. Under been presented, however, indicating any tariffed incumbent LEC access services. this precedent, a price squeeze can likelihood that current price cap For example, under the provisions of violate the antitrust laws where (1) a regulation, which is designed, in part, to section 251, a competitor will be able to firm has monopoly power with respect prevent cross subsidization, might purchase unbundled network elements to an ‘‘upstream’’ product; (2) it sells become less effective under a market- to compete with the incumbent LEC’s that product at ‘‘higher than a ‘fair based approach to access charge reform. offering of local exchange access. price,’ ’’; (3) the product is a necessary Those price cap regulations will remain Therefore, so long as an incumbent LEC input for the product being sold by in place until there is sufficient is required to provide unbundled other firms in competition with the competition to prevent an incumbent network elements quickly, at economic monopoly or its affiliate in a LEC from charging rates that are not just cost, and in adequate quantities, an ‘‘downstream’’ market; and (4) the and reasonable. Therefore, we find that attempted price squeeze seems likely to monopolist offers the ‘‘downstream’’ the record does not contain substantial 31912 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations evidence that a market-based approach Factor on the basis of total factor decisions of both incumbent LECs and to access charge reform is any less likely productivity studies, the difference their competitors. A market-based than current regulation to permit between LEC input price changes and approach to rate regulation should incumbent LECs to engage in input price changes in the economy as produce, for consumers of unreasonable cross subsidization with a whole, and the 0.5 percent consumer telecommunications services, a better their interstate access charges. productivity dividend (CPD). In the combination of prices, choices, and 284. Finally, several commenters companion order we find that this innovation than can be achieved based their support for a market-based results in an X-Factor prescription of 6.5 through rate prescription. A market- approach, in part, on arguments that it percent. based approach, with continued price would reduce, or minimize, cap regulation of services not subject to administrative burdens. Other 2. Other Prescriptive Approaches substantial competition and with the commenters, on the other hand, a. Background prescriptive backstop described in opposed a market-based approach on 287. In the NPRM, we sought Section IV.A, is thus consistent both the grounds that it would increase comment on four options for a with the pro-competitive, deregulatory administrative burdens. Based on the prescriptive approach: reinitializing goals of the 1996 Act and with our record before us, however, we cannot responsibility under Title II, Part I of the price cap indices (PCIs) to economic reach a conclusion as to the relative Communications Act to ensure just and cost-based levels; reinitializing PCIs to administrative burdens of the two reasonable rates. levels targeted to yield no more than an approaches. Some parts of our proposed 290. Furthermore, immediate market-based approach, such as grants 11.25 percent rate of return, or some prescription of TSLRIC-based rates of increased pricing flexibility as other rate of return; adding a policy- would not necessarily move rates to competitive conditions warranted, were based mechanism similar to the CPD to those levels faster than the market-based modeled on waivers that we have the X-Factor; or prescribing economic approach and prescriptive backstop granted within the context of our cost-based rates. We have decided above developed in Section IV.A. Some parties current price cap plan and would likely to rely primarily on a market-based that favor a prescriptive approach have be necessary even if we had adopted a approach, and impose prescriptive asserted that setting access rates primarily prescriptive approach to requirements only when market forces immediately at TSLRIC levels would access charge rate level reform. are inadequate to ensure just and reduce incumbent LEC revenues by $10 Similarly, some parts of a prescriptive reasonable rates for particular services billion or more. Were we to make such approach, such as annual changes in or areas. We will determine the details a rate prescription, we would consider price cap calculations, will necessarily of our market-based approach in a phasing in rate reductions of that be a part of our market-based approach. future Order. In that Order, we will also magnitude over a period of years, in Accordingly, we can see no basis in this discuss in more detail what prescriptive order to avoid the rate shock that would record for concluding that a market- requirements we will use as a backstop accompany such a great rate reduction based approach to access charge reform to our market-based access charge at one time. Finally, because we have will be any more or less burdensome reform. In this section, we explain why adopted a more efficient rate structure than any other alternative. we have decided not to adopt any for interstate switched access services, it specific prescriptive mechanism in this is not necessary to prescribe new rates B. Prescriptive Approaches Order. in order to achieve efficient rate 1. Prescription of a New X-Factor b. Rate Prescription structures, as TRA and TCI recommend. Accordingly, we will not prescribe a. Background 288. Background. We sought TSLRIC-based access rates at this time. 285. In the NPRM, we observed that comment on prescribing new interstate the Commission had initiated a access rates because simply c. Reinitialization of PCIs on a Rate-of- rulemaking proceeding in the Price Cap reinitializing PCIs would not necessarily Return Basis Fourth Further NPRM to examine a compel incumbent LECs to establish 291. Discussion. We reject number of proposals for revising the reasonable rate structures. We also reinitialization on the basis of any rate productivity offset component of the X- noted, however, that prescribing access of return at this time. As a general Factor, and to consider related issues rates on a TSLRIC basis could raise matter, the parties advocating a rate-of- such as eliminating sharing obligations common cost allocation issues to a return based reinitialization do not and the low-end adjustment much greater extent than did TELRIC provide any persuasive reason for mechanism. We invited parties to pricing for unbundled network adopting that particular approach. They discuss in this proceeding whether the elements. favor reinitialization largely because record developed pursuant to the Price 289. Discussion. In Section IV.A, they believe interstate access charges Cap Fourth Further NPRM justified above, we explain why we can and should be lower than they are now. As increasing the productivity offset, and should rely primarily on market forces explained above, however, we are specifically invited comment on the to cause interstate access rates to move adopting a primarily market-based effects of a forward-looking cost of toward economic cost levels over the approach to rate level adjustments. The capital and economic depreciation on next several years. Prescribing TSLRIC- prescriptive backstop to that approach total factor productivity (TFP) based access rates would be the most will be based on TSLRIC cost studies measurement. direct, uniform way of moving those and, most likely, applied to rates to cost. But, precisely because of geographically deaveraged rates. That b. Discussion its directness and uniformity, rate approach is more likely to result in rates 286. The commenters generally repeat regulation can only be, at best, an that are aligned with economic costs arguments made in the Price Cap Fourth imperfect substitute for market forces. than would reinitialization to a Further NPRM proceeding. For reasons Regulation cannot replicate the complex particular rate of return on an embedded explained in detail in our companion and dynamic ways in which cost rate base. Price Cap Fourth Report and Order, we competition will affect the prices, 292. Moreover, because the basic conclude that we should prescribe an X- service offerings, and investment theory of our existing price cap regime Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31913 is that the prospect of retaining higher substantially under price cap regulation to control access charges effectively in earnings gives carriers an incentive to from 1991 to 1994, in spite of the a less intrusive manner. become more efficient, we believe that increases in earnings to which GSA/ 298. BellSouth and GTE oppose rate of return-based reinitialization DOD alluded. Furthermore, the vastly increasing the CPD as an arbitrary and would have substantial pernicious different results among companies show confiscatory measure. SNET claims that effects on the efficiency objectives of that the incentive plan we have for cost increasing the X-Factor merely because our current policies. In this regard, we reduction (price caps) largely is working the price cap LECs have earned too have often expressed concern in past as predicted, whereas a rate-of-return- much, or simply to drive rates down, is price cap orders that maintaining links based scheme would have cost much in essentially an abandonment of price cap between rate levels and a carrier’s terms of inefficiency. regulation, because it would punish achieved rate of return would undercut incumbent LECs for their efficiency d. Reinitialization of PCIs on a TSLRIC the efficiency incentives price cap gains made under the price cap regime. Basis regulation was designed to encourage. BA/NYNEX and GTE contend that the In the LEC Price Cap Order, we rejected i. Background X-Factor should be chosen to reflect a so-called ‘‘automatic stabilizer’’ 294. In the NPRM, we sought reasonably expected incumbent LEC adjustment to the price cap index that— comment on reducing price cap PCIs by productivity growth rather than to like reinitialization—would have an amount equal to the difference achieve a specific rate reduction. We permanently adjusted index levels between the incumbent LECs’ PCIs and emphasize that we have done nothing in downward in the event that carriers the revenues that would be produced by this Order to increase the X-Factor. In achieved earnings above a certain rate of rates set at TSLRIC levels. We noted that our companion Price Cap Fourth Report return. Similarly, in our 1995 LEC Price a TSLRIC-based PCI reinitialization and Order, we prescribe a new X-Factor Cap Performance Review Order, we might be preferable to a TSLRIC-based of 6.5 percent, but this prescription is cited as a disadvantage of AT&T’s rate prescription because it would not based on detailed studies of LEC ‘‘Direct Model’’ method of determining require us to prescribe common cost productivity growth and input price the PCI formula’s ‘‘X-Factor’’ the fact allocations. We also sought comment on changes. We decline to increase the that ‘‘a target rate of return is a critical whether or to what extent we could rely CPD, and we reject a proposal to set the factor in measuring productivity.’’ And on TELRIC studies developed for X-Factor to target an industry average although we sought comment in the pricing unbundled network elements, rate of return of 11.25 percent. Thus, Access Reform NPRM on the question of and whether we should initiate joint none of our actions in either this Order rate of return-based reinitialization of board proceedings to rely on state or our companion Order can properly be the price cap indices, we once again commissions to evaluate the incumbent characterized as an abandonment of expressed concern that such action LECs’ TELRIC studies. price cap regulation, or as motivated ‘‘could have a negative effect on the merely by a desire to drive rates down. ii. Discussion productivity incentives of the LEC price C. Equal Access Costs cap plan.’’ We, of course, have authority 295. We have decided not to require to change our methods and theories of incumbent LECs to reinitialize PCIs on 1. Background regulating LEC rates when we believe a TSLRIC basis at this time. As we 299. In the NPRM, we solicited the purposes of the Communications discuss in Section IV.A above, we comment on whether to require Act would be better served by doing so. expect market forces to develop as a incumbent price cap LECs to make an However, we find that, given our result of the 1996 Act and to drive exogenous cost decrease to one or more consistently critical past statements access rate levels to forward-looking of their PCIs to account for the about rate of return-based adjustments economic costs. Furthermore, the record completion of the amortization of equal to price caps, a decision now to in this proceeding is unclear on whether access costs on December 31, 1993. We reinitialize PCIs to any specified rate of there is an accurate and convenient note that through the years, this issue return would further undermine future method for determining TSLRIC for has been referred to as ‘‘equal access efficiency incentives by making carriers purposes of reinitializing PCIs at this network reconfiguration’’ or EANR less confident in the constancy of our time. Specifically, it is unclear whether costs. This is a misnomer, which we regulatory policies. the TELRIC studies used to develop correct today. ‘‘Equal access’’ is the 293. In declining to reinitialize PCIs unbundled network element prices can provision of exchange access to all on the basis of carriers’ rates of return, be used for access services. interexchange carriers on an unbundled, we reject GSA/DOD’s suggestion that tariffed basis that is equal in type, e. Policy-Based X-Factor Increase access rates have been excessive merely quality, and price to that provided to because the earnings of most price cap 296. Background. In the NPRM, we AT&T and its affiliates. Equal Access carriers have exceeded 11.25 percent, observed that we adopted a consumer and Network Reconfiguration Costs, and, in some cases, by substantial productivity dividend (CPD) to assure Memorandum Opinion and Order, 50 amounts. When the Commission that some portion of the benefits of the FR 50910 ( December 9, 1985) at ¶ 18 adopted price cap regulation, it incumbent LECs’ increased productivity (Equal Access Cost Order). ‘‘Network specifically permitted price cap carriers growth under price cap regulation Reconfiguration’’ costs are those to earn in excess of 11.25 percent in would flow to ratepayers in the form of investments and expenses incurred in order to encourage them to become reduced rates. We sought comment on connection with structurally conforming more productive. The Commission also establishing a policy-based mechanism the pre-divestiture AT&T network with concluded that complaints alleging similar to the CPD to force access rates the LATA boundaries mandated by the excessive earnings relative to costs will to cost-based levels. MFJ. Issues underlying network not lie as long as the carrier is in 297. Discussion. We do not require a reconfiguration costs were resolved in compliance with the sharing policy-based X-Factor increase at this the Equal Access Cost Order and have mechanism. In addition, we found in time for the same reason we do not not been raised since. the LEC Price Cap Performance Review require a TSLRIC-based PCI 300. Under court order, the BOCs and Order that access rates declined reinitialization; we expect market forces GTE were required to provide equal 31914 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations access. See United States v. AT&T, 552 capitalized expenditures and the a set of ‘‘baseline’’ rate levels to which F. Supp. 131, 233 (D.D.C. 1982); United amortized expenses, were embedded in the price cap index of incremental cost States v. GTE Corp., 603 F. Supp. 730, the existing rates. As such, the changes would be tied. For that 745 (D.D.C. 1984). This conversion, Commission refused to grant LECs an purpose, we chose the ROR-developed estimated at more than $2.6 billion, was exogenous increase for equal access rates that were in effect on July 1, 1990. largely completed by 1990, and costs, finding that these costs were The Commission found that, in general, involved both capital and non-capital already accounted for in the existing those rates served as an appropriate expenditures. Under the Equal Access rates. The Commission also based its starting point for measuring subsequent Cost Order, incumbent LECs were decision to deny an exogenous increase incremental cost changes under price required to identify separately the on its concern that exogenous treatment cap regulation, because they ‘‘reflect[ed] incremental capital investments and the of equal access expenditures would the reasonable operation of ROR incremental non-capital-related create inappropriate incentives for the regulation.’’ expenses associated with the LECs to inflate the amounts spent on 304. In two respects, however, the implementation of equal access. The equal access. The Commission noted the Commission recognized that existing Equal Access Cost Order directed that difficulty of reviewing equal access rates did not reflect equilibrium ROR- the capital investments, which it costs, as well as the risk that incumbent derived rates, but rather reflected estimated to comprise approximately 55 LECs might willfully or inadvertently special corrective adjustments that we percent of the $2.6 billion, be treated shift switched access costs into the had ordered previously. In particular, pursuant to ordinary accounting and proposed equal access category in order the Commission noted that existing ratemaking principles. The Commission to benefit from the requested exogenous rates had embedded within them costs determined that the remaining 45 increase. associated with Commission-ordered percent of the expenditures—which ‘‘one-time’’ amortizations of 2. Discussion were non-capitalized equal access depreciation reserve deficiencies and expenses—required special treatment: 302. We find that an exogenous cost inside wiring costs. Had ROR regulation decrease to account for completion of [W]e are concerned that these expenditures continued, the rates subject to these will cause irregular and substantial the amortization of equal access non- amortizations would have been reduced fluctuations in revenue requirements capitalized expenses is necessary and when the amortizations were associated with equal access. Because they appropriate. Although we have completed. To ensure that ratepayers are extraordinary, are for the greatest part addressed this issue in the past and under price caps would not be required expected to be incurred over the next few declined to act, we now find that an permanently to bear these temporary years, and, therefore, are likely to be exogenous decrease is merited. We Commission-ordered, ROR-derived rate distortive of financial results and rate recognize our decision departs from our adjustments, we directed LECs to make requirements, we find that these equal access past decisions that have declined to expenses should be deferred and amortized. downward exogenous cost adjustments impose an exogenous decrease for the to their price cap indices upon the Equal Access Cost Order, 50 FR at completed recovery of these costs. As expiration of those amortizations. 50914–15, ¶ 33. The Commission discussed below, our decision today 305. Similarly, the Commission ordered that these equal access expenses reverses those decisions and is based on ordered amortization of equal access be separately identified and recorded, an extensive record from this, and prior expenses, which also were reflected in and that they be written off over a proceedings. Our decision today aligns baseline rates at the outset of price cap period of eight years, ending December our treatment of the completion of the regulation. Under normal ROR 31, 1993. See Equal Access and Network amortization of equal access costs with ratemaking principles, those expenses— Reconfiguration Costs, Reconsideration, two other similar amortizations that which, for the most part, already had FCC No. 86–470 (released November 5, were ordered under ROR regulation and been incurred before price cap 1986) at ¶ 25 (Equal Access Cost carried over into price cap regulation, regulation was initiated—would have Reconsideration Order). In the namely, the exogenous decrease been recovered in the BOCs’ rates the reconsideration of the Equal Access Cost imposed for the completion of the same year they were incurred and Order, the Commission found that the amortization of depreciation reserve would no longer have been reflected in specific termination date of the eight deficiencies, and the exogenous rates at the time price caps were year amortization of these expenses decrease imposed for the completion of instituted. However, as explained supra, would ‘‘shorten the period during the amortization of inside wire costs. the Commission required the carriers to which the unamortized balances are We are convinced that this treatment is amortize these extraordinary expenses entitled to earn a rate of return.’’ Id. It the proper method to ensure that over eight years because of the potential is clear that the LECs’ rate-of-return ratepayers are not paying for costs that fluctuations in revenue requirements (ROR) rates included revenue recovery have already been completely associated with equal access. Thus these for both capitalized expenditures recovered. expenses remained embedded within (recovered through the ordinary 303. The need for an exogenous BOC rates at the outset of price caps depreciation process) and non- adjustment to account for the expiration even though, for the most part, the capitalized expenses (recovered through of the equal access expense amortization extraordinary expenses themselves were the special amortization process). It is stems from the different ways in which no longer being incurred. also clear that at the time the rates are established under ROR 306. The specific question of whether amortization was imposed, the regulation, on the one hand, and price the completely amortized equal access Commission envisioned an end to the cap regulation, on the other hand, and expenses should be treated exogenously recovery for the amortized expenses and from the Commission’s decision to has been presented to the Commission a subsequent decrease in ROR rates. establish initial price cap levels at the on a number of occasions. In the past, 301. In converting to price cap outset of price cap regulation on the procedural impediments arising from regulation, the Commission found that basis of existing ROR-derived rates. our rules, as well as the lack of an equal access conversion was, in large When converting from ROR regulation adequate record, convinced us to part, completed and that the associated to price cap on regulation January 1, decline to impose such treatment at that costs, which included both the 1991, the Commission needed to select time. For example, when AT&T raised Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31915 the issue of downward adjustment for querying ‘‘whether the BOCs will because they reflected temporary, one- completed amortization of equal access experience any cost change in 1994 [at time treatment of costs under ROR expenses in an annual access charge the completion of the amortization] that regulation that, due to the mid-stream tariff proceeding, the Common Carrier stems from factors beyond their switch to price cap regulation, would Bureau found that the issue was beyond control.’’ In support of its implicitly have become permanent (even though the scope of the proceeding because it negative answer, the Commission the costs already had been recovered) would require a substantive change to analogized to the absence of a price cap absent an exogenous cost adjustment. the price cap rules. Similarly, in index change when a piece of The same is true for equal access cost response to AT&T’s and MCI’s revisiting equipment is fully depreciated, or when amortizations. the question in both the First 1994 a carrier increased or decreased the 311. Because this is a rulemaking, we Annual Access Charge Order and the speed with which it recovered do not face the same procedural Second 1994 Annual Access Charge investments. The Commission found impediments as in some of our prior Order, the Commission found that that, ‘‘[b]ased on a meager factual record decisions, as explained supra. We exogenous treatment would require a presented on the issue of equal access determine that the record from this rule change to section 61.45(d) of the expense, we are reluctant to depart from proceeding allows us to make a Commission’s rules. Because no LEC our practice of not adjusting PCI levels reasoned decision on this issue. We find had filed for a waiver of section to reflect levels of cost recovery.’’ that an exogenous decrease is necessary 61.45(d), the Common Carrier Bureau 308. The Commission’s analysis at in order to adjust the price caps for the found that the issue was not properly that time was incomplete. The Equal completed recovery of the specified presented for investigation. Access Cost Order and the Equal Access equal access non-capitalized expenses Cost Reconsideration Order explicitly that we required be amortized over an 307. In denying the requests for recognized two components of equal eight-year period. Because the current procedural reasons, the Commission access costs—capitalized, which were to price cap index includes an expense supported its decisions with various be depreciated, and non-capitalized, that has now been completely rationales. In some instances, these which were extraordinary and were to recovered, the price cap should be rationales appear now not to have been be amortized over a set period. The adjusted downward to account its considered to a sufficient degree. In Commission established different recovery. Simply stated, we find that addressing equal access costs in the treatment for these two sets of costs ratepayers should not be forced to pay orders adopting price cap regulation, the based on policy reasons, and ordered an for a cost that, were it not for the way Commission focused primarily on the amortization schedule for the non- price cap regulation occurred in this question of whether future equal access capitalized costs. The Commission’s instance, they would no longer be investments and expenses should be establishment of this schedule was paying. By imposing a downward treated exogenously because equal beyond the incumbent LECs’ control. exogenous adjustment to adjust the PCI access had been compelled by The Commission’s analogy to the lack of for the complete recovery of specific regulatory (or judicial) order. We exogenous treatment for equipment equal access expenses through concluded, subject to consideration of depreciation and changes in the tempo amortization, we will avoid unfairly waiver requests, that we should not of recovery should have only applied to imposing a subsidy burden on accord exogenous cost treatment to such the capitalized portion of the equal ratepayers. Our decision in this matter future equal access conversion costs, access costs. will align charges more closely to costs. because of concerns that exogenous cost 309. The Commission explicitly stated 312. Several commenters have argued treatment would create disincentives to in the LEC Price Cap Order that that they continue to incur costs as a implement equal access in an efficient completed amortizations of depreciation part of the provision of equal access. manner. We did not focus in detail on reserve deficiencies require an These ongoing costs are not at issue in the logically distinct question of exogenous downward adjustment. The the present proceeding. As explained whether equal access expenses that Commission found that such an above, the costs at issue were a set of were already embedded within baseline adjustment was necessary to ensure that costs that the Commission determined BOC rates pursuant to the temporary ratepayers were not paying for a cost should be amortized for policy reasons. ‘‘one-time’’ amortizations (and thus that no longer existed. Analytically, the These costs were extraordinary and, if raised no question with respect to future amortized portion of equal access allowed to be imposed in the normal incentives) should be removed through expenses should have been treated in fashion, would have resulted in huge exogenous adjustments when the the same fashion as the amortized rate fluctuations. We consider the amortizations expired. Instead, we depreciation reserve deficiency costs. ongoing costs of providing equal access relegated that issue to a footnote, which The Commission’s imposition of a as part of the normal costs of providing denied exogenous cost treatment on the downward exogenous adjustment for telephone service. Exogenous treatment basis of a skeletal analysis that makes no the completion of inside wire of these costs is unnecessary. In reference to our treatment of the amortizations further supports our response to BellSouth’s contention that depreciation reserve deficiency and finding today that an exogenous the record is inadequate for us to make inside wiring amortizations. In the decrease is appropriate and necessary a decision about an exogenous decrease, footnote, it is clear that the Commission for the completion of the amortization of we find that the current record provides was not distinguishing between equal access non-capitalized expenses. a sufficient basis for our decision. capitalized costs, which were properly 310. We reject our prior analysis of Furthermore, we note that in the past, treated as depreciated expenses, and amortized equal access costs and accord the record may have been sufficient, non-capitalized expenses, which were the expiration of equal access cost but, as explained above, the actually amortized per the amortizations the same exogenous cost Commission’s analysis was incorrect. Commission’s own requirement. The treatment given to the amortizations of 313. TCA and GCI are concerned Commission framed the issue of a the depreciation reserve deficiencies about how the Commission will treat downward adjustment in terms of and inside wiring costs. Both of those cost recovery for LECs that convert to whether the completion of depreciation amortizations were given exogenous equal access in the future. As we stated required a downward adjustment, cost treatment when they expired in the very first LEC Price Cap report 31916 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations and order, LECs that have not received 1987) (Marketing Expense marketing expenses was based on an a bona fide request for equal access at Reconsideration Order). On inaccurate perception of the extent to the time they become subject to price reconsideration, the Commission which LECs actively market or advertise cap regulation may request a waiver for adopted for marketing expenses an exchange access services. The special treatment of those special interim allocation factor that includes Commission instead referred marketing conversion costs when the time arises. access revenues, pending the outcome expense issues back to the Joint Board, See Policies and Rules Concerning Rates of a further inquiry by the Joint Board. with specific instruction to the parties for Dominant Carriers, CC Docket No. 316. In the NPRM, we stated that to identify any Account 6610 marketing 87–313, First Report and Order, 54 FR some of the difference between the price activities that are related to access 19836 (May 8, 1989). cap LECs’ interstate allocated costs and services and any such activities that are 314. We hereby direct price cap LECs forward-looking costs may be traced to related to a specific jurisdiction. We to make a downward exogenous past regulatory practices that were continue to recognize that some adjustment to the traffic sensitive basket designed to shift some costs from the expenses recorded in Account 6610 may in the Annual Access Tariff filing that intrastate jurisdiction to the interstate indeed be incurred in the provision of takes effect on July 1, 1997 to account jurisdiction in order to further universal interstate access service, and that this is for the completed amortization of equal service goals. We observed that the an issue that must be addressed by the access expenses. Commission’s decision in the Marketing Joint Board when it examines the Expense Reconsideration Order to D. Correction of Improper Cost appropriate allocation factor for allocate intrastate marketing costs to the Allocations marketing expenses. We note, however, interstate jurisdiction was an example of that the Commission did not find in the 1. Marketing Expenses such past regulatory practices. We asked Marketing Expense Reconsideration a. Background parties to comment on the extent to Order that the Joint Board’s initial which the difference between price cap conclusion in the Marketing Expense 315. Prior to 1987, incumbent LEC LECs’ interstate allocated costs and Recommended Decision that incumbent marketing expenses were allocated forward-looking costs is a result of such LECs do not market or advertise access between the interstate and intrastate decisions. services to be inaccurate. jurisdictions on the basis of local and 319. We conclude that price cap LECs’ b. Discussion toll revenues. In 1987, a Federal-State marketing costs that are not related to Joint Board recommended that interstate 317. Under current separations the sale or advertising of interstate access revenues be excluded from the procedures, approximately 25 percent of switched access services are not allocation factor used to apportion price cap LECs’ total marketing appropriately recovered from IXCs marketing expenses between the expenses are allocated to the interstate through per-minute interstate switched interstate and intrastate jurisdictions jurisdiction. We agree with parties that access charges. Pending a because marketing expenses are not contend that, because marketing recommendation by the Joint Board on incurred in the provision of interstate expenses generally are incurred in a new method of apportioning access services. Amendment of Part 67 connection with promoting the sale of marketing costs between the intrastate (New Part 36) of the Commission’s retail services, those expenses for the and interstate jurisdictions, we direct Rules and Establishment of a Federal- most part should be recovered from price cap LECs to recover marketing State Joint Board, CC Docket No. 86– incumbent LEC retail services, which expenses allocated to the interstate 297, Recommended Decision and Order, are found predominantly in the jurisdiction from end users on a per-line 52 FR 15355 (April 28, 1987) (Marketing intrastate jurisdiction. Pursuant to basis, for the reasons we discuss below. Expense Recommended Decision). The section 410(c) of the Act, however, the 320. Recovering these expenses from Commission agreed with the Joint Commission must refer any rulemaking end users instead of from IXCs is Board’s recommendation and adopted proceeding regarding the jurisdictional consistent with principles of cost- new procedures that allocated separation of common carrier property causation to the extent that price cap marketing expenses in Account 6610 on and expenses between interstate and LEC sales and advertising activities are the basis of revenues excluding access intrastate operations to a Federal-State aimed at selling retail services to end revenues. MTS and WATS Market Joint Board. We intend to initiate a users, and not at selling switched access Structure, Amendment of Part 67 (New proceeding to review comprehensively services to IXCs. Recovery on a per-line Part 36) of the Commission’s Rules and our Part 36 jurisdictional separations basis, while perhaps not precisely Establishment of a Federal-State Joint procedures in the near future. We will reflective of the manner in which Board, CC Docket Nos. 78–72, 80–286, refer this issue to the Federal-State Joint marketing costs are incurred, is and 86–297, Report and Order, 52 FR Board in CC Docket No. 80–286 for preferable to the current rule requiring 17228 (May 6, 1987). In petitions for resolution as part of that comprehensive price cap LECs to recover their reconsideration of the Commission’s review. We therefore do not reallocate marketing expenses through per-minute order, several incumbent LECs argued these costs between the interstate and access charges. A price cap LEC’s retail that the revised separations treatment of intrastate jurisdictions at this time. marketing costs are not caused by usage marketing expenses would result in a 318. In the Marketing Expense of switched access services, and its significant, nationwide shift of $475 Recommended Decision, the Joint Board efforts to sell additional lines, vertical million in revenue requirements to the stated that the inclusion of access features, and other retail services would intrastate jurisdiction. MTS and WATS revenues in the allocation factor for only indirectly cause an increase in Market Structure, Amendment of Part marketing expenses is unreasonable switched access usage. Per-minute 67 (New Part 36) of the Commission’s because incumbent LECs do not actively recovery of retail marketing costs thus Rules and Establishment of a Joint market or advertise access services. distorts prices in the long distance and Board, CC Docket No. 78–72, 80–286, Although parties contested the accuracy local markets in the same way as does and 86–297, Memorandum Opinion and of this statement on reconsideration, the per-minute recovery of other NTS costs. Order on Reconsideration and Commission did not assess incumbent 321. In the past, price cap LEC retail Supplemental Notice of Proposed LEC claims that the decision to exclude marketing may have focused on the sale Rulemaking, 52 FR 32922 (September 1, access revenues in the allocator for of optional vertical features such as call Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31917 waiting and caller ID, and on features downward exogenous adjustments to interstate switched access rates based on and services designed for business the PCIs for the common line, traffic the requirements of section 252(d)(3) customers. As local competition sensitive, and trunking baskets. With and the criteria for wholesale rate cost develops, we would expect that sales respect to the trunking basket, the studies outlined in the Local expenses would be driven by the price exogenous adjustment shall not reflect Competition Order. Section 252(d)(3) cap LEC’s need to respond to the amount of any Account 6610 establishes a pricing standard for the competition. In any case, it is beyond marketing expenses allocated to special wholesale provision of retail offerings to our jurisdiction to reassign retail access services. The service band other carriers that resell the LEC retail marketing costs to retail services on a indices (SBIs) within the trunking services. Section 252(d)(3) does not truly cost-causative basis. There is basket shall be decreased based on the apply to the pricing of interstate access, probably a relationship, however, amount of Account 6610 marketing which is not a retail service. between the number of lines purchased expenses allocated to switched services by an end user, particularly a business included in each service category to 2. General Support Facilities user, and the amount of effort a price reflect the exogenous adjustment to the a. Background cap LEC expends to sell services and PCI for the trunking basket. 326. In the NPRM, we sought 324. After performing the appropriate features to that end user. Furthermore, comment on other possible cost downward exogenous adjustments as parties have observed in the record in misallocations that may contribute to described above to the PCIs in the this proceeding, price cap LECs actively the difference between embedded costs common line, traffic sensitive, and market second lines to residential and forward-looking costs allocated to trunking baskets, price cap LECs may customers. We conclude, therefore, that the interstate jurisdiction. AT&T the most efficient and cost-causative recover the revenues related to the suggests that the allocation of embedded method legally available to this Account 6610 marketing expenses general support facilities (GSF) costs, Commission at this time for recovery of removed from these baskets by including general purpose computer price cap LEC retail marketing costs increasing the SLCs for multi-line expenses, among access categories is allocated to the interstate jurisdiction is business and non-primary residential one such misallocation. This allocation, to charge those end users to whom the lines. To prevent end-user charges from AT&T contends, results in the price cap LECs’ marketing is directed— exceeding levels we have established inappropriate support of LECs’ billing multi-line business and non-primary earlier in this Order, the amount of and collection service, which is a residential line end users. We further marketing expenses to be recovered nonregulated, interstate service, through note that by not permitting price cap from multi-line business and non- regulated access charges. AT&T LECs to recover these costs from primary residential lines in their SLCs primary residential and single-line shall be limited by the ceilings we estimates that $124 million of expenses business customers, we avoid potential establish for these SLCs in this Order. recovered in interstate access support universal service concerns that weigh To the extent these ceilings prevent full the nonregulated billing and collection against increasing charges on these end recovery of these amounts, price cap category. Of the $124 million, $60.1 users. LECs may recover these costs by million is included in interstate 322. Moreover, continued recovery of increasing equally both the non-primary switched carrier access, and $20.5 interstate-allocated marketing expenses residential line PICC and the multi-line million is in interstate special access, in per-minute switched access charges business PICC, not to exceed the with the remainder recovered by the would raise competitive concerns. ceilings on the PICC for non-primary SLC. Increasingly, IXCs will be competing residential and multi-line business 327. The GSF investment category in with incumbent, price cap LECs in the lines. In the event the PICC ceilings Part 36 includes assets that support provision of local exchange and prevent full recovery of these expenses, other operations, such as land, exchange access services. By permitting any residual may be recovered through buildings, vehicles, as well as general incumbent, price cap LECs to recover per-minute charges on originating purpose computer investment from IXCs through interstate switched access service, subject to its ceiling. accounted for in USOA Account 2124. access charges their costs of marketing Finally, to the extent price cap LECs Some incumbent LECs use general retail services, these potential cannot recover their remaining purpose computers to provide competitors are forced to bear the marketing expenses through per-minute nonregulated billing and collection incumbent, price cap LECs’ costs of charges on originating access, any services to IXCs. Part 69 allocates GSF competing with the IXCs. Assigning residual may be recovered through per- investment among the billing and recovery of marketing costs to end users, minute charges on terminating access collection category, interexchange on the other hand, subjects these costs service. Although these marketing category, and the access elements based to the competitive pressures of the expenses will be recovered through the on the amount of Central Office market. SLC, they shall not be included in the Equipment (COE), Cable and Wire 323. Marketing expenses are currently base factor or considered common line Facilities (CWF), and Information recovered through all interstate access revenues. To prevent price cap LECs Origination/Termination Equipment rate elements and the interexchange from recovering these expenses from (IO/T) investment allocated to each Part category in proportion to the investment access services, we are establishing a 69 category. Because no COE, CWF, or originally assigned to these elements separate basket for these marketing IO/T investment is allocated to the and categories by the Part 69 cost expenses. billing and collection category, no allocation rules. Special access and 325. We reject, however, AT&T’s investment in general support facilities, interexchange services are purchased assertion that recovery of interstate- and thus no portion of general purpose by, and marketed to, retail customers. It allocated marketing expenses through computer investment, is allocated to the is therefore appropriate to allow rates interstate access charges violates the billing and collection category. for those services to continue to include wholesale pricing provisions contained Likewise, because expenses related to recovery of marketing expenses. in section 252(d)(3) of the Act. AT&T GSF investment are allocated in the Marketing expenses must be removed identifies and quantifies inappropriate same manner as GSF investment, no from all other rate elements by means of retail expenses embedded in current GSF expenses, including expenses 31918 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations related to general purpose computers, B. Discussion the rules we adopt in this order for price are allocated to the billing and 330. We conclude that, with the cap companies. The decisions we reach collection category. To the extent that limited exceptions discussed in here accommodate many of the costs are underallocated to the billing Sections III.D and VI.D, the scope of this concerns that Citizens Utilities, as well and collection category, incumbent proceeding should be limited to price as a number of other price cap LECs that LECs’ regulated services recover through cap incumbent LECs. Price cap serve rural areas, voices in its pleadings. interstate access charges costs regulation governs almost 91 percent of Although Citizens Utilities arguably associated with nonregulated provision interstate access charge revenues and may face different circumstances than of billing and collection services. more than 92 percent of total incumbent other price cap LECs that serve larger LEC access lines. Currently, all ten of urban and suburban populations, b. Discussion Citizens has indicated, by electing price the incumbent LECs with more than two cap regulation, that it believes it can 328. We agree with AT&T and million access lines and 13 of the 17 achieve a higher rate of productivity WorldCom that the current allocation of non-NECA incumbent LECS with more than smaller rate-of-return LECs and GSF costs enables incumbent LECs to than 50,000 access lines are subject to that price cap regulation is more recover through regulated interstate price cap regulation. Therefore, even beneficial to it than rate-of-return access charges costs caused by the LECs’ though this proceeding applies only to regulation. Citizens Utilities has not nonregulated billing and collection price cap incumbent LECs, it will demonstrated that the modifications we functions. By shifting some costs from nonetheless affect the vast majority of are adopting in this proceeding would interstate access services to the all access lines and interstate access necessarily affect it differently than nonregulated billing and collection revenues. other price cap LECs. If Citizens category, we would move interstate 331. Small and rural LECs will most Utilities believes that it cannot remain access rates closer to cost. The NPRM, likely not experience competition as fast financially viable as a price cap carrier as incumbent price cap LECs. We do not however, may not have provided under the revised access charge regime, expect small and rural LECs generally to sufficient notice to interested parties it may petition for a waiver of the rule that we would change in the allocation face significant competition in the that makes its decision to elect price cap of LEC interstate costs between immediate future because, for the most regulation irreversible. regulated interstate services and part, the high cost/low-margin areas 334. We reject Centennial’s suggestion nonregulated billing and collection served by these LECs are unlikely to be that we adopt access reform activities. We therefore seek comment the immediate targets of new entrants or modifications for all incumbent LECs on this issue in Section VII.B below. competitors. Moreover, as we noted in but then grant waivers for small, rural the NPRM, all non-price cap incumbent LECs whose special circumstances V. Access Reform for Incumbent Rate- LECs may be exempt from, or eligible of-Return Local Exchange Carriers warrant different accommodations. For for a modification or suspension of, the the most part, rate-of-return LECs face a A. Background interconnection and unbundling common set of complex issues, different requirements of the 1996 Act. By than those faced by price cap LECs, that 329. In the NPRM we concluded that, contrast, all incumbent LECs that are are better addressed in a separate with limited exceptions, the scope of ineligible for section 251(f) exemption, proceeding. In that proceeding, we will this proceeding should be limited to suspensions, or modifications are address any differences that may exist incumbent price cap LECs because these incumbent price cap LECs. Because the between large and small rate-of-return carriers face the potential of significant latter incumbent LECs must fulfill the carriers. competition in the interstate exchange section 251 (b) and (c) duties to provide 335. We therefore limit application of access market due to the new duties and interconnection and unbundled the rules we adopt in this proceeding to obligations imposed upon them by the elements to new entrants, they are likely the incumbent price cap LECs, with 1996 Act. We proposed limited to face significant competition in the limited exceptions. Because rate-of- exceptions that would subject all interstate exchange access market before return LECs will collect revenues from incumbent LECs to the rules addressing the small and mid-sized rate-of-return the new universal service support allocation of universal service support incumbent LECs face such competition. mechanisms, we address allocation of to the interstate revenue requirement, 332. We recognize that small and universal service support to the discussed in Section VI.D, below, and to rural rate-of-return LECs face unique interstate revenue requirement for all the reforms to the transport rate circumstances and that a few of these incumbent LECs in Section VI.D. In structure, including the TIC, discussed carriers may now have, or may soon addition, because rate-of-return in sections III.D., above. We invited receive, bona fide requests for incumbent LECs’ transport rates were comment on these tentative conclusions interconnection. Although all rate-of- subject to the rules that were remanded on the scope of this proceeding. We also return carriers may not be completely by the court in CompTel v. FCC, the sought comment on whether we should insulated from competitive pressures, changes to the TIC that we adopt in apply our proposed changes to the we are not persuaded by arguments that Section III.D. pursuant to the court’s common line rate structure to rate-of- delaying the initiation of an access remand, except for changes that require return incumbent LECs and whether we reform proceeding for these carriers reallocation of costs to newly-created should update Part 69 access rules in until later this year will have a rate elements, will also apply to rate-of- light of various developments. We detrimental impact on their viability. A return incumbent LECs. Finally, in further invited comment on the effect of separate proceeding for small and rural order to prevent double recovery of the these proposals and tentative rate-of-return LECs will provide us with costs associated with providing access conclusions on small business entities, the opportunity to conduct a services to new entrants through the including small incumbent LECs and comprehensive review of the sale of unbundled network elements, we new entrants. We also noted that we circumstances and issues unique to conclude in Section VI.A, below, that would address access reform for rate-of- these carriers. our exclusion of unbundled network return carriers in a separate proceeding 333. We do not agree that Citizens elements from Part 69 access charges in 1997. Utilities should be exempt from some of applies to all incumbent LECs. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31919

VI. Other Issues elements, the added cost to competitive unbundled network elements by LECs would impair, if not foreclose, requesting carriers. A. Applicability of Part 69 to their ability to offer competitive access 339. Although, in the Local Unbundled Elements services. The availability of access Competition Order, we allowed 1. Background services at competitive levels is vital to application of certain non-cost-based access charges (the CCLC and a portion 336. In the NPRM, we requested the general approach we adopt in this of the TIC) to unbundled elements, we comment regarding the potential Order, which relies on the growth of limited the duration of such application application of Part 69 access charges to competition, including from to a transition period ending June 30, unbundled network elements purchased competitors using unbundled network 1997 even if access and universal by carriers to provide local exchange elements, to move overall access rate service reform were not completed by services or exchange access services. We levels toward forward-looking economic the end of the transition period. The tentatively concluded that unbundled cost. In addition, we note that excluding unbundled network elements from transition period was limited in order to network elements should be excluded minimize the burden on competitive access charges benefits small entities from such access charges. We noted that local service providers seeking to use seeking to enter the local service market the 1996 Act allows unbundled network elements to offer by ensuring that they can acquire telecommunications carriers to purchase the competitive services that the 1996 access to unbundled network elements unbundled elements at competitive Act sought to promote. The interim and to use those elements to provide all prices. application of certain access charges telecommunications services, including 338. We disagree with suggestions was also limited to non-cost-based originating and terminating access of offered by some commenters that access charges because such charges, unlike interstate calls. We further noted that charges should be imposed on facilities-based charges, were more the 1996 Act requires purchasing unbundled elements because cost-based likely to include subsidies for universal carriers to pay cost-based rates to rates for such elements would not service. All facilities-based charges were incumbent LECs to compensate them for recover universal service support completely excluded from unbundled use of the unbundled network elements. subsidies built into the access charge network elements to prevent double Accordingly, we tentatively concluded regime. Although our plan to implement recovery by incumbent LECs of the costs that the requesting carrier paying cost- comprehensive universal service reform of these facilities when they are based rates to the incumbent LEC would is not fully implemented, we believe purchased by competitive carriers. have already compensated the excluding access charges from the sale 340. We are also unpersuaded by incumbent LEC for the ability to deploy of unbundled elements will not suggestions that access charges should unbundled network elements to provide dramatically affect the ability of price be imposed on unbundled elements originating and terminating access. cap LECs to fulfill their universal because provision of competitive service 2. Discussion service obligations. First, competitors by rebundling the same network using unbundled network elements to elements used by the incumbent LEC to 337. We will adhere to our tentative provide access is equivalent to resale of conclusion to exclude unbundled provide interstate services will contribute to universal service a retail service. First, in the Local network elements from Part 69 access Competition Order, we recognized major charges. This conclusion applies to all requirements pursuant to section 254. Carriers receive no exemption from their differences between competition incumbent LECs. As we noted in the through the use of unbundled network obligation to contribute to universal Local Competition Order, payment of elements and competition through service by using unbundled network cost-based rates represents full resale of an existing retail service elements. Second, rate structure compensation to the incumbent LEC for offered by an incumbent LEC. We modifications adopted in this Order— use of the network elements that carriers explained, for example, that an entrant including reallocation of TIC costs, purchase. We further noted that sections relying on unbundled elements rather 251(c)(3) and 252(d)(1), the statutory adoption of a mechanism to phase out than resale has the flexibility to offer all provisions establishing the unbundling the TIC, and raising multi-line SLCs— telecommunications services made obligation and the determination of should reduce the impact on price cap possible by using network elements but network element charges, do not compel LECs of excluding the recovery of TIC also assumes the risk that end users will telecommunications carriers using costs in the sale of unbundled network not generate sufficient demand to justify unbundled network elements to pay elements. Third, if unbundled network the investment. The entrant using a access charges. Moreover, these element prices are geographically resale strategy, however, is limited to provisions do not restrict the ability of deaveraged, LECs will receive higher offering the retail service itself without carriers to use network elements to prices when they sell unbundled the attendant investment risk. Thus, we provide originating and terminating network elements that embody higher reject the notion that the rebundling of access. Allowing incumbent LECs to costs. Fourth, because the difference network elements is equivalent to recover access charges in addition to the between the level of access charges and resale. Second, although we concluded reasonable cost of such facilities would the forward-looking economic costs of in the Local Competition Order that constitute double recovery because the network elements may include more IXCs must continue to pay access ability to provide access services is than universal service support, charges to incumbent LECs for access already included in the cost of the imposing access charges on the sale of services when the end user is served by access facilities themselves. Excluding unbundled network elements could a competitive carrier reselling the access charges from unbundled recover from market entrants incumbent LEC’s retail services, our elements ensures that unbundled substantially more than amounts used to conclusion was based on the resale elements can be used to provide support universal service. Accordingly, provisions of the 1996 Act which limit services at competitive levels, we are not persuaded by suggestions resale to retail services offered to promoting the underlying purpose of that the universal service obligations of subscribers or other customers who are the 1996 Act. If incumbent LECs added price cap LECs compel the imposition of not telecommunications carriers. The access charges to the sale of unbundled access charges on the purchase of resale provision does not apply to non- 31920 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations retail services, including access as currently constituted. We explained shared by other classes of business services, that may be offered using the that the existing access charge system customers. same facilities. Unlike the provision of includes non-cost-based rates and 346. We also are not convinced that local exchange services, access services inefficient rate structures. We stated that the nonassessment of access charges are not services that LECs provide there is no reason to extend such a results in ISPs imposing uncompensated directly to end users on a retail basis. To system to an additional class of costs on incumbent LECs. ISPs do pay impose access charges on the sale of customers, especially considering the for their connections to incumbent LEC unbundled elements would contravene potentially detrimental effects on the networks by purchasing services under the terms of the resale provision by growth of the still-evolving information state tariffs. Incumbent LECs also effectively treating exchange access as a services industry. We explained that receive incremental revenue from service provided on a retail basis. ISPs should not be subjected to an Internet usage through higher demand interstate regulatory system designed for for second lines by consumers, usage of B. Treatment of Interstate Information circuit-switched interexchange voice dedicated data lines by ISPs, and Services telephony solely because ISPs use subscriptions to incumbent LEC Internet 1. Background incumbent LEC networks to receive access services. To the extent that some calls from their customers. We solicited intrastate rate structures fail to 341. In the 1983 Access Charge comment on the narrow issue of compensate incumbent LECs adequately Reconsideration Order, the Commission whether to permit incumbent LECs to for providing service to customers with decided that, although information assess interstate access charges on ISPs. high volumes of incoming calls, service providers (ISPs) may use In the companion Notice of Inquiry incumbent LECs may address their incumbent LEC facilities to originate (NOI), we sought comment on broader concerns to state regulators. and terminate interstate calls, ISPs issues concerning the development of 347. Finally, we do not believe that should not be required to pay interstate information services and Internet incumbent LEC allegations about access charges. (For purposes of this access. See In the Matter of Usage of the network congestion warrant imposition Order, providers of enhanced services Public Switched Network by of interstate access charges on ISPs. The and providers of information services Information Service and Internet Access Network Reliability and Interoperability are referred to as ISPs.) MTS and WATS Providers, CC Docket No. 96–263, Council has not identified any service Market Structure, CC Docket No. 78–72, Notice of Inquiry, 62 FR 4657 (January outages above its reporting threshold Memorandum Opinion and Order, 48 31, 1997) (NOI). attributable to Internet usage, and even FR 42984 (September 21, 1983) (Access incumbent LEC commenters Charge Reconsideration Order). In 2. Discussion acknowledge that they can respond to recent years, usage of interstate 344. We conclude that the existing instances of congestion to maintain information services, and in particular pricing structure for ISPs should remain service quality standards. Internet the Internet and other interactive in place, and incumbent LECs will not access does generate different usage computer networks, has increased be permitted to assess interstate per- patterns and longer call holding times significantly. Although the United minute access charges on ISPs. We think than average voice usage. However, the States has the greatest amount of it possible that had access rates applied extent to which this usage creates Internet users and Internet traffic, more to ISPs over the last 14 years, the pace congestion depends on the ways in than 175 countries are now connected to of development of the Internet and other which incumbent LECs provision their the Internet. Network Wizards Internet services may not have been so rapid. networks, and ISPs use those networks. Domain Survey, January 1997, available Maintaining the existing pricing Incumbent LECs and ISPs agree that on the World Wide Web at . disrupting the still-evolving information whatever congestion exists; they As usage continues to grow, information services industry and advances the goals disagree on what pricing structure services may have an increasingly of the 1996 Act to ‘‘preserve the vibrant would provide incentives for significant effect on the public switched and competitive free market that deployment of the most efficient network. presently exists for the Internet and technologies. The public interest would 342. As a result of the decisions the other interactive computer services, best be served by policies that foster Commission made in the Access Charge unfettered by Federal or State such technological evolution of the Reconsideration Order, ISPs may regulation.’’ 47 U.S.C. sec. 230(b)(2). network. The access charge system was purchase services from incumbent LECs 345. We decide here that ISPs should designed for basic voice telephony under the same intrastate tariffs not be subject to interstate access provided over a circuit-switched available to end users. ISPs may pay charges. The access charge system network, and even when stripped of its business line rates and the appropriate contains non-cost-based rates and current inefficiencies it may not be the subscriber line charge, rather than inefficient rate structures, and this most appropriate pricing structure for interstate access rates, even for calls that Order goes only part of the way to Internet access and other information appear to traverse state boundaries. The remove rate inefficiencies. Moreover, services. business line rates are significantly given the evolution in ISP technologies 348. Thus, in our review of the record lower than the equivalent interstate and markets since we first established filed in response to the NOI, we will access charges, given the ISPs’ high access charges in the early 1980s, it is consider solutions to network volumes of usage. ISPs typically pay not clear that ISPs use the public congestion arguments other than the incumbent LECs a flat monthly rate for switched network in a manner incumbent LECs’ recommendation that their connections regardless of the analogous to IXCs. Commercial Internet we apply access charges to ISPs’ use of amount of usage they generate, because access, for example, did not even exist circuit-switched network technology. business line rates typically include when access charges were established. We intend rather to focus on new usage charges only for outgoing traffic. As commenters point out, many of the approaches to encourage the efficient 343. In the NPRM, we tentatively characteristics of ISP traffic (such as offering of services based on new concluded that ISPs should not be large numbers of incoming calls to network configurations and required to pay interstate access charges Internet service providers) may be technologies, resulting in more Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31921 innovative and dynamic services than b. Discussion recovered through terminating access exist today. In the NOI, we will address 351. We believe that new entrants, by charges. When the increased SLCs and a range of fundamental issues about the purchasing unbundled network PICCs are fully implemented, recovery Internet and other information services, elements or providing facilities-based of these costs will be more susceptible including ISP usage of the public competition, will eventually exert to competitive forces because IXCs switched network. The NOI will give us downward pressure on originating could seek to influence the end user’s an opportunity to consider the access rates assessed by incumbent choice of its provider of local service, implications of information services LECs. We agree that excessive and the end user’s choice of service more broadly, and to craft proposals for terminating access rates could provider will determine whether the a subsequent NPRM that are sensitive to encourage long-distance companies to incumbent LEC is able to recover these the complex economic, technical, and avoid the payment of such charges by costs from the end user. 354. In addition, pending full legal questions raised in this area. We seeking to become the local exchange recovery of all common line and therefore conclude that ISPs should and exchange access provider for end residual TIC costs in flat rate SLCs and remain classified as end users for user customers. These market PICCs, this approach will put purposes of the access charge system. developments, however, would not fully downward pressure on terminating address the concerns expressed in the C. Terminating Access access rates by lowering the overall NPRM and reflected in comments with service revenues derived from 349. In the NPRM, we requested respect to the ability of incumbent LECs terminating access charges. Because comment regarding the regulation of to charge unreasonable rates for competitive pressure is more likely to terminating access. We noted that, terminating access. develop on the originating end of a long- 352. We are also not convinced that unlike originating access, the choice of distance call, we can rely to a greater an access provider for terminating a significant competitive impact would extent on competitive forces to ensure access is made by the recipient of the result from changes in calling patterns just and reasonable rates under this call. The call recipient generally does between pairs of callers. Commenters approach by moving recovery of certain have not described any realistic way not pay for the call and, therefore, is not revenues from terminating access to that users, by changing their calling likely to be concerned about the rates originating access. By stripping patterns, could experience savings charged for terminating access. We terminating access rates of CCL and attributable to differing levels of suggested that neither the originating residual TIC charges and, pending full terminating access charges paid by IXCs. caller nor its long-distance service implementation of the new flat charges, Although one commenter points to high provider can exert substantial influence placing more of the burden of TIC termination charges in foreign countries recovery on originating access rates, we over the called party’s choice of as affecting the market for overseas calls terminating access provider. Thus, even reduce potential excesses in terminating originating in the United States, such access charges while exposing the CCL if competitive pressures develop at the results are less likely to occur for originating end as new entrants offer and residual TIC recovery to domestic calls, which are much less competitive pressures in the originating alternatives, the terminating end of a expensive than international calls and long-distance call may remain a access market. are subject to geographic rate averaging 355. The NPRM described proposals bottleneck, controlled by the LEC and rate integration requirements. Thus, linking terminating rates to originating providing access for a particular we are reluctant to base our approach on rate levels or shifting costs from customer. We also recognized, however, the expectation that a significant terminating to originating access that excessive terminating access proportion of callers will implement charges. Some commenters support charges could furnish an incentive for such a strategy. limiting price cap LEC terminating IXCs to enter the access market in order 353. Accordingly, we are establishing access rates to the level of the LEC to avoid paying excessive terminating regulatory requirements that will originating access rates. If originating access charges. address the potential that incumbent access charges are lowered because of LECs could charge unreasonable rates 1. Price Cap Incumbent LECs competition, the ceiling on terminating for terminating access. Specifically, we access rates would be lowered as well, a. Background are adopting rules in this Order that, for placing downward pressure on price cap LECs, will limit recovery of terminating rates. This approach, 350. We requested comment on TIC and common line costs from however, would not substantially affect various alternative special methods for terminating access rates for a limited terminating access rates where regulating the terminating access rates period, and then eliminate any recovery originating access rates have not of price cap LECs. For instance, we of common line and TIC costs from responded to competitive inroads. sought comment on whether to establish terminating access. Under this Moreover, linking an incumbent LEC’s a ceiling on the terminating access rates approach, beginning January 1, 1998, terminating access rate to its own of price cap LECs equal to the forward- price cap LECs will recover common originating rate could reduce the looking economic cost of providing the line and residual TIC revenues through incumbent LEC’s incentive to lower its service. We suggested alternative a new flat charge, subject to a ceiling. originating access rates. Thus, we methods for measuring forward-looking Remaining common line and residual decline to adopt this method of economic cost, including reference to TIC revenues will then be first regulating terminating access rates. prices in reciprocal compensation recovered through originating access 356. The NPRM requested comment arrangements for the transport and rates, subject to a ceiling. Any on the possibility of eliminating all termination charges of remaining common line and residual charges for terminating access by telecommunications under sections TIC revenues may then be recovered shifting the burden of recovering all 251(b)(5) and 252(d)(2) or a requirement through terminating rates. As the caps costs currently recovered in terminating that terminating rates be based on a on SLCs applicable to non-primary access rates to originating access TSLRIC study or other acceptable residential lines and the PICC are raised, charges. We decline to adopt this forward-looking cost-based model. none of these residual revenues will be approach because a complete shift of 31922 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations terminating access costs to originating dominant unless the Commission makes and exchange access service. access conflicts with one of the basic or has made a finding that it is Nonetheless, at first blush, there is a objectives of this proceeding—to ensure dominant. We noted that, since the concern that a competitive LEC may that charges for access services reflect Competitive Carrier Proceeding, new have market power over an IXC that the manner in which the costs of entrants into the exchange access needs to terminate a long-distance call providing those services are incurred. market have been presumptively to a customer of that particular Switching costs, for example, should classified as non-dominant because they competitive LEC. Therefore, we sought continue to be recovered in part from have not been shown to exercise comment on whether and to what extent terminating access charges because significant market power in their service we should regulate the terminating those costs are traffic sensitive and are areas. Policy and Rules Concerning access charges of competitive LECs. related to the volumes of both Rates for Competitive Common Carrier 360. We conclude, based on the originating and terminating traffic. Services and Facilities Authorizations record before us, that non-incumbent Moreover, we emphasize that, as Therefor, CC Docket No. 79–252, First LECs should be treated as nondominant discussed in Section III.A, the rate Report and Order, 45 FR 76148 in the provision of terminating access. structure we are adopting, which will (November 18, 1980), Further Notice of Although an IXC must use the replace per-minute recovery of the CCL Proposed Rulemaking, 46 FR 10924 competitive LEC serving an end user to charge and the TIC with flat rate (February 5, 1981), Second Further terminate a call, the record does not charges, helps to achieve our goal of Notice of Proposed Rulemaking, 47 FR indicate that competitive LECs have ensuring that charges for access services 17308 (April 22, 1982), Second Report previously charged excessive reflect the manner in which costs are and Order, 47 FR 37889 (August 27, terminating access rates. Nor have incurred. Our requirement that 1982). At the same time, we stated that commenters provided evidence incumbent LECs recover a greater competitive LECs may possess market demonstrating that competitive LECs portion of common line and TIC costs power over IXCs needing to terminate are, in fact, charging excessive in originating access rates pending full calls because the LEC controlling the terminating rates. Indeed, the record implementation of flat-rated charges terminating local loop is the only access suggests that the terminating rates of will address concerns about the provider available to the IXC seeking to competitive LECs are equal to or below reasonableness of terminating access terminate a long-distance call on that the tariffed rates of incumbent LECs. In charges while providing price cap LECs particular loop. We solicited comment addition, the record does not show that sufficient latitude to recover the on several alternatives, including competitive LECs distinguish between reasonable costs of deploying their whether we should use incumbent LEC originating and terminating access in facilities to provide terminating access terminating access rates as a benchmark their offers of service. Therefore, it does services. to determine the reasonableness of not appear that competitive LECs have 357. The NPRM also discussed the competitive LEC terminating rates. We structured their service offerings in alternative of requiring price cap LECs invited commenters to offer other ways designed to exercise any market to establish end user charges for approaches including, for example, power over terminating access. terminating access. This approach whether we should establish a Accordingly, the concerns expressed in would place direct responsibility for the presumption of reasonableness if the the NPRM about the ability of cost of terminating access on the competitive LEC’s terminating access competitive LECs to exercise market recipient of terminating access services rate is no higher than the incumbent power in the provision of terminating and would expose terminating access to LEC’s rate in the same geographic access are not substantiated in the competitive pressures. We noted that market. record. 361. Further, as competitive LECs, wireless companies already charge b. Discussion which have a small share of the called parties for receiving calls and 359. We recently noted that the test in interstate access market, attempt to requested comment on how we might deciding whether to apply dominant expand their market presence, the rates implement a system of end user charges carrier regulation to a class of carriers is of incumbent LECs or other potential in the context of access reform and whether those carriers have market competitors will constrain the whether its implementation would power. Regulatory Treatment of LEC terminating access rates of competitive increase the number of uncompleted Provision of Interexchange Services LECs. Specifically, competitive LECs calls due to a reluctance by called Originating in the LEC’s Local Exchange compete with incumbent LECs whose parties to accept the charges. We agree Area and Policy and Rules Concerning rates are regulated. The record indicates with commenters that such a change the Interstate, Interexchange that long-distance carriers have could prove disruptive to consumers of Marketplace, CC Docket Nos. 96–149 established relationships with wireline services. After review of the and 96–61, Second Report and Order in incumbent LECs for the provision of record, which produced few, if any, CC Docket No. 96–149 and Third Report access services, and new market advocates of such an approach, we and Order in CC Docket No. 96–61, FCC entrants are not likely to risk damaging conclude that we should not mandate at 97–142 (April 18, 1997) (Dominant- their developing relationships with IXCs this time this change in current pricing Non-Dominant Order). As we discussed by charging unreasonable terminating practices for wireline service. in the Dominant/Nondominant Order, access rates. This is especially true with 2. Non-Incumbent LECs in determining whether a firm possesses respect to competitive access providers market power, the Commission has seeking to maintain or expand their a. Background previously focused on certain well- access transport, special access, or other 358. In the NPRM, we requested established market features, including services apart from switched access. comment about whether to impose market share, supply and demand 362. In addition, we believe that ceilings on the terminating access rates substitutability, the cost structure, size overcharges for terminating access could of non-incumbent LECs. We stated in or resources of the firm, and control of encourage access customers to take the NPRM that our policy since the bottleneck facilities. Competitive LECs competitive steps to avoid paying Competitive Carrier Proceeding has currently have a relatively small market unreasonable terminating access consistently been that a carrier is non- share in the provision of local exchange charges. If, for example, a competitive Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31923

LEC consistently overcharged an IXC for unreasonable. The charging of implement changes in the access charge terminating access, the IXC would have terminating access rates above system together with complementary an incentive to enter a marketing originating rates in the same market, for changes in the universal service system. alliance with another competitive LEC example, may suggest the need to revisit In this section, we address the manner in the same market or in other our regulatory approach. Similarly, in which incumbent LECs must adjust geographic markets where the terminating rates that exceed those their interstate access charges to reflect overcharging competitive LEC seeks to charged by the incumbent LEC serving the universal service support expand. Although high terminating the same market may suggest that a mechanisms adopted in the Universal access charges may not create a competitive LEC’s terminating access Service Order. disincentive for the call recipient to rates are excessive. If there is sufficient retain its local carrier (because the call indication that competitive LECs are 1. Background recipient does not pay the long distance imposing unreasonable terminating 368. In November 1996, pursuant to charge), the call recipient may access charges, we will revisit the issue section 254 of the Act, the Federal-State nevertheless respond to incentives of whether to adopt regulations Universal Service Joint Board issued its offered by an IXC with an economic governing competitive LEC rates for recommendations to the Commission for interest in encouraging the end user to terminating access. reforming our system of universal switch to another local carrier. Such an 3. ‘‘Open End’’ Services service so that universal service is approach could have particular impact preserved and advanced, but in a when the IXC has significant brand 365. In some cases, an IXC is unable manner that permits the local exchange recognition among consumers. to influence the end user’s choice of and exchange access markets to move Moreover, as noted in the NPRM, access provider for originating access from monopoly to competition. In our excessive terminating access charges services because the end user on the Universal Service Order, we are could encourage IXCs to enter the access terminating end is paying for the call. adopting most of the Joint Board’s market in an effort to win the local For example, charges for the ‘‘open end’’ recommendations relating to the customer. We believe that the originating access minutes for 800 or support of rural and high cost areas. 888 services are paid by the recipient of possibility of competitive responses by 369. Section 254 of the Act requires the call. Consequently, the Commission IXCs will have a constraining effect on that any federal universal service has treated incumbent LEC originating non-incumbent LEC pricing. support provided to eligible carriers be ‘‘open end’’ minutes as terminating 363. Thus, we will not adopt at this ‘‘explicit’’ and recovered on an time any regulations governing the minutes for access charge purposes. The ‘‘equitable and nondiscriminatory provision of terminating access NPRM solicited comment on whether basis’’ from all telecommunications provided by competitive LECs. Because such regulatory treatment should be carriers providing interstate competitive LECs have not charged retained for ‘‘open end’’ services under telecommunications service. In our unreasonable terminating access rates, which terminating access rates serve as companion Universal Service Order, we and because they are not likely to do so originating access rates, and whether agree with the Joint Board that these in the future, competitive LECs do not this approach should be extended to programs must be replaced with appear to possess market power. Thus, competitive LECs. universal service support mechanisms the imposition of regulatory 366. We continue to believe that that satisfy section 254. requirements with respect to ‘‘open end’’ originating minutes should competitive LEC terminating access is be treated as terminating minutes for 370. Currently, there are three unnecessary. We similarly find no access charge purposes. Although few mechanisms designed expressly to reason to adopt a presumption of comments were filed regarding this provide support for high cost and small reasonableness where a competitive issue, commenters addressing this telephone companies: the Universal LEC’s terminating access rates are less matter advocate retention of the current Service Fund (high cost assistance than its rates for originating access or regulatory approach. By continuing to fund), the Dial Equipment Minutes less than the incumbent LEC’s treat ‘‘open end’’ originating minutes as (DEM) weighting program, and Long terminating access rates. Instead, if we terminating minutes for access charge Term Support (LTS). An incumbent LEC need to examine the reasonableness of purposes, we recognize that access is eligible for high cost assistance from competitive LEC terminating access customers have limited ability to the current Universal Service Fund if its rates in an individual instance, we can influence the calling party’s choice of embedded loop costs exceed 115 do so taking into account all relevant access provider. Accordingly, access percent of the national average loop factors including relationships to other charges for these ‘‘open end’’ minutes cost. This program is funded entirely by rates. Thus, if an access provider’s will be governed by the requirements IXCs. DEM weighting assistance is an service offerings violate section 201 or we adopt in this Order applicable to implicit support mechanism that section 202 of the Act, we can address terminating access provided by permits LECs with fewer than 50,000 any issue of unlawful rates through the incumbent LECs. Thus, residual access lines to apportion a greater exercise of our authority to investigate common line charges and the per- proportion of these local switching costs and adjudicate complaints under minute TIC will not be recovered to the interstate jurisdiction than larger section 208. On the basis of the current through ‘‘open end’’ originating minutes LECs may allocate. Finally, the existing record, we conclude that reliance on the except to the extent such recovery is LTS program supports carriers with complaint process will be sufficient to permitted under the rules described in higher-than average subscriber line costs assure that non-incumbent LEC rates are Section III.A of this Order. by providing carriers that are members reasonable. We emphasize that we will of the NECA pool with enough support not hesitate to use our authority under D. Universal Service-Related Part 69 to enable them to charge IXCs only a section 208 to take corrective action Changes nationwide average CCL interstate where appropriate. 367. In the NPRM, we recognized that, access rate. LTS payments reduce the 364. We will be sensitive to because of the role that access charges access charges of smaller, rural indications that the terminating access have played in funding and maintaining incumbent LECs participating in the rates of competitive LECs are universal service, it is critical to loop-cost pool by raising the access 31924 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations charges of non-participating incumbent contributions to the common line pool pool’s projected revenue requirement, LECs. are set annually based on the total after removing pay telephone costs and 371. In the NPRM, we sought projected amount of LTS, converted to revenues. Our rules currently provide comment on whether incumbent LECs’ a monthly payment amount. Non- that the NECA CCL tariff be set to access charges must be adjusted to pooling incumbent LECs recover the recover the average of price cap LECs’ reflect elimination of LTS contribution revenue necessary for their LTS CCL charges. If we were to retain this requirements and receipt of explicit contributions through their CCL rule, our decision eliminating LTS universal service funds in order to charges. We agree with commenters that obligations for price cap LECs and prevent incumbent LECs from being argue that, to the extent we do not requiring them to reduce their CCL compensated twice for providing reduce interstate access revenues by the charges accordingly would universal service. We proposed a amount of LTS contribution currently automatically reduce the CCL revenues downward exogenous cost adjustment recovered in the rates, incumbent LECs of NECA pool members. Further, for price cap incumbent LECs to reflect will double recover. We therefore reductions would occur as price cap elimination of LTS contribution conclude that incumbent LEC interstate LECs implemented our decisions in requirements and any revenues received access charges must be reduced to Section III of this Order, which from any new universal service support reflect elimination of the obligation to restructures the common line rate mechanisms, and sought comment on contribute to LTS. structure for price cap LECs to recover how interstate costs must also be 375. Because payments from the common line costs through flat-rated reduced to account for explicit universal existing LTS mechanism will cease on charges instead of the per-minute CCL service support. January 1, 1998, incumbent LECs should charge. Because we have deferred no longer contribute to the existing LTS 2. Discussion consideration of access reform for non- fund after that date. For price cap LECs, price cap LECs and did not seek 372. In our companion Universal which were requested to stop comment on this issue in the NPRM, we Service Order, we conclude that a participating in the NECA Common must address this issue in a future carrier will continue to receive Line tariff before coming under price proceeding that undertakes access universal service support based upon cap regulation, LTS contributions were reform for small, non-price cap LECs. the existing LTS, high cost, DEM included in the common line revenue weighting mechanisms, until the carrier requirement when the PCI for the b. Recovery of New Universal Service begins to receive support based upon common line basket was established. Obligations forward-looking economic cost. In the We conclude that price cap LECs must 378. In the Universal Service Order, following sections, we will discuss the make a one-time downward exogenous we conclude that assessment of manner in which incumbent LECs must adjustment to the PCI for the common contributions for the interstate portion reduce their interstate access charges to line basket to account fully for the of the high cost and low-income support reflect the elimination of the obligation elimination of their LTS obligations. mechanisms shall be based solely on to contribute to LTS, increase their This exogenous adjustment shall be end-user interstate revenues, and that interstate access charges to permit made in a manner consistent with assessment of universal support for recovery of the new universal service section 61.45 and other relevant eligible schools, libraries, and rural obligation, and, to the extent necessary, provisions of the Commission’s rules. health care providers shall be based on adjust their interstate access charges to 376. Non-pooling, rate-of-return LECs interstate and intrastate total end-user account for any additional universal recover their LTS contributions in the revenues. As to the manner in which service funds received under the common line revenue requirement. carriers may recover their contributions modified universal service mechanisms. Because current LTS contributors will to the universal service fund, in our no longer be making such contributions Universal Service Order we conclude a. Removal of LTS Obligation From after January 1, 1998, their CCL charges that carriers may recover universal Interstate Access Rates should be adjusted to account for this service contributions via interstate 373. In our companion Universal change. Rate-of-return LECs that mechanisms. In this Section, we address Service Order, we agree with the Joint formerly made LTS contributions the manner in which incumbent price Board that LTS payments constitute a should recompute their common line cap LECs may recover their universal universal service support mechanism revenue requirements based on the service contributions. We address non- that is inconsistent with the Act’s elimination of their LTS obligations, price cap LECs’ recovery of universal requirement that support be collected and adjust their CCL charges service contributions in Section XIII.F of from all providers of interstate accordingly. the Universal Service Order. telecommunications services on an 377. We note that the replacement of 379. Price cap LECs may treat their equitable and non-discriminatory basis LTS with comparable support from the contributions to the new universal and be available to all eligible new universal service support service mechanisms, including high cost telecommunications carriers. In that mechanisms requires us to amend the and low-income support and support for order, we conclude that LTS should be NECA Common Line tariff rules, which eligible schools, libraries, and health removed from the interstate access establish the CCL for pooling members care, as exogenous changes to their price charge system. We provide, instead, for at the average of price cap LECs’ CCL cap indices (PCIs). Because the only recovery of comparable payments from charges. Under the current LTS support interstate revenues that will serve as the the new federal universal service system, NECA annually projects the basis for assessing universal service support mechanisms. common line revenue requirement, contributions in 1998 will be end-user 374. Currently, only incumbent LECs including an 11.25 percent return on revenues, we find that price cap LECs that do not participate in the NECA CCL investment, for incumbent LECs that recovering their universal service tariff (non-pooling incumbent LECs) participate in the common line pool. obligation through interstate access make LTS payments and only NECA then computes the total amount charges must recover those incumbent LECs participating in the of LTS support needed by subtracting contributions in the baskets for services NECA CCL tariff receive LTS support. the amount pooling carriers will receive that generate end-user interstate Non-pooling incumbent LECs’ in CCL revenues and SLCs from the revenues. Because price cap LECs do Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31925 not recover revenues from end users of c. Adjustments to Interstate Access the preceding calendar year based on services in all baskets, the exogenous Charges to Reflect Additional Support the percentage of increase of the adjustment should not be across-the- From the Modified Universal Service nationwide average loop cost. Rural, board. The baskets containing end-user Mechanisms non-price cap LECs should continue to interstate services are the common line, 381. In our Universal Service Order, apply any revenues received from the interexchange, and trunking baskets. we conclude that the federal universal modified universal service support The end-user charges assessed on service mechanism should support 25 mechanisms that replace current LTS services in the common line basket are percent of the difference between the amounts to the accounts to which they recovered through the SLC; in the forward-looking economic cost of are currently applying LTS support. 385. We also decide in the Universal interexchange basket, end-user charges serving the customer and the Service Order that, from January 1, 1998 are recovered through per-minute toll appropriate revenue benchmark. We through December 31, 1999, rural charges; and in the trunking basket, end further conclude in that order that 25 user charges are recovered through carriers shall calculate their high cost percent approximates the portion of the support using the current high cost special access service provided directly cost of providing the supported network formulas. We conclude that no to end users. Price cap LECs electing to facilities that would be assigned to the adjustment to rural incumbent LECs’ recover their universal service interstate jurisdiction, and that, by interstate access charges is necessary at obligation through interstate access funding these interstate costs, we will this time because incumbent LECs will charges must therefore apply the full ensure that federal implicit universal continue to use the existing high cost amount of the exogenous adjustment service support is made explicit. formulas to determine high cost among these three baskets on the basis Consistent with our decision in the support. As we determine in that order, of relative size of end-user revenues. We Universal Service Order to fund only however, beginning January 1, 2000, note, however, that the tandem- interstate costs through the federal rural carriers shall receive high cost switched transport, interconnection universal service fund, we direct loop support for their average loop costs charge, and tandem switch signalling incumbent LECs to use any universal that exceed 115 percent of an inflation- service categories in the trunking basket service support received from the new adjusted nationwide average loop cost. do not recover end-user interstate universal service mechanisms to reduce The inflation adjusted nationwide revenues. In order to prevent recovery or satisfy the interstate revenue average cost per loop shall be calculated from customers of these services, the requirement otherwise collected by multiplying the 1997 nationwide service band indices (SBI) for these through interstate access charges. average cost per loop by the percentage service categories should not be 382. Non-Rural Carriers. In our in change in Gross Domestic Product increased to reflect the exogenous Universal Service Order, we conclude Chained Price Index (GDP–CPI) from adjustment to the PCI for the trunking that, until a forward-looking economic 1997–1998. We conclude that rural, basket. To reflect the exogenous cost methodology takes effect on non-price cap LECs should continue to adjustment to the trunking basket PCI, January 1, 1999, non-rural carriers will apply any revenues received from the price cap LECs should, instead, increase continue to receive high cost assistance modified universal service support the SBIs for the remaining service and LTS amounts based on the existing mechanism that replace amounts categories in the trunking basket based universal service mechanisms. As there received under the current high cost on the relative end-user interstate will be no change until January 1, 1999 support system to the accounts to which revenues generated in each service to the support non-rural incumbent they are currently applying high cost category. The four remaining service LECs currently receive as high cost and support. categories in the trunking basket are as LTS support, we conclude that it is not 386. Finally, in our Universal Service follows: (1) voice grade entrance necessary at this time to determine the Order, we adopt the Joint Board’s facilities, voice grade direct-trunked manner in which non-rural carriers recommendation that a subsidy transport, voice grade dedicated should adjust their interstate access corresponding in amount to that signalling transport, voice grade special charges to reflect a difference in generated formerly by DEM weighting access, WATS special access, metallic universal service support. We will be recovered from the new universal special access, and telegraph special address this issue prior to the January 1, service support mechanisms. Beginning access services; (2) audio and video 1999, effective date of the forward- on January 1, 1998 and continuing until service; (3) high capacity flat-rated looking cost mechanisms for non-rural permanent mechanisms for them transport, high capacity special access, carriers. become effective, rural carriers will 383. Rural Carriers. In our Universal and DDS services; and (4) wideband receive DEM weighting assistance Service Order, we conclude that rural data and wideband analog services. calculated as follows: assistance will carriers, as defined in section 153(37) of equal the difference between the 1996 380. In 1999, the percentage of price the Act, shall continue to receive weighted DEM factor and the cap LECs’ revenues that will be assessed support based on embedded costs for at unweighted DEM factor multiplied by for universal service support may least three years. Beginning on January the annual unseparated local switching increase as a result of the anticipated 1, 1998, rural carriers shall receive high revenue requirement. As with increases in high cost, low-income cost loop support, DEM weighting comparable LTS and high cost support, support and support for schools, assistance, and LTS benefits on the basis rural, non-price cap LECs should libraries, and health care in 1999. Price of the modified support mechanisms. continue to apply any support received cap LECs shall therefore perform an 384. In our Universal Service Order, from the modified universal service upward exogenous adjustment to the we adopt modified per-line support support mechanisms that replaces PCIs for the common line, mechanisms for providing support existing DEM weighting amounts to the interexchange, and trunking baskets in comparable to the LTS support received accounts to which they are currently the same manner as the exogenous under the existing mechanisms. applying DEM weighting assistance. adjustment performed in 1998, to reflect Beginning on January 1, 1998, we will 387. Currently, the high cost and DEM any change in the assessment rate in allow a rural carrier’s annual LTS weighting support mechanisms shift a 1999. support to increase from its support for portion of the intrastate revenue 31926 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations requirement to the interstate jurisdiction sections referencing the rule that because the designated transition period in order to permit LECs to recover a establishes a rate element for costs for these charges has expired. greater percentage of their costs from the associated with lines terminating at 393. Section 69.103 requires interstate jurisdiction. Some non-price ‘‘limited pay telephones’’; and changing incumbent LECs to establish a separate cap LECs are concerned that, to the the definition of ‘‘Telephone Company’’ rate element for costs associated with extent that support from the modified to mean incumbent LEC. We also sought lines terminating at ‘‘limited pay universal service mechanisms is not comment on whether rate elements and telephones.’’ We note that few, if any, applied to the intrastate jurisdiction, an subelements established pursuant to payphone service providers offer this intrastate revenue shortfall will occur. waiver should be incorporated into type of service today. Sections In the Universal Service Order, we Part 69. 69.303(a), 69.304(c), 69.307(c), and conclude that, until universal service 2. Discussion 69.406(a)(9) concern the allocation of support is based on forward-looking costs to this rate element. Section 276 of economic cost, carriers should continue 391. The passage of the 1996 Act and the Act and the implementing to receive amounts from the new the subsequent enactment of regulations require a new per call universal service mechanisms implementing regulations requires that compensation plan, which requires, comparable to existing high cost and we update and revise various sections of inter alia, that incumbent LECs remove DEM weighting support. In that order, Part 69. Sections 69.4(f) and 69.122 of all payphone costs from access charges. we do not alter the existing revenue- our rules provide for a ‘‘contribution Implementation of the Pay Telephone shifting mechanisms in place for the charge’’ that may be assessed on special Reclassification and Compensation current high cost support and DEM access and expanded interconnection. Provisions of the Telecommunications weighting at this time. Thus, no These sections are inconsistent with Act of 1996, Report and Order, CC intrastate revenue shortfall will occur, section 254 as amended by the 1996 Docket No. 96–128, FCC 96–388, 61 FR because no revenue requirement is Act, which requires, inter alia, that such 39397 (July 29, 1996) (Payphone Order), being shifted back to the intrastate carrier contributions be equitable and recon., FCC 96–439, 61 FR 65341 jurisdiction. nondiscriminatory. Furthermore, our (December 12, 1996) (Payphone E. Part 69 Allocation Rules rules governing the contribution charge Reconsideration Order), appeal merely allow a LEC to try to justify this docketed sub nom., Illinois Public 1. Background charge in the expanded interconnection Telecommunications Ass’n v. FCC and 388. In the NPRM, we solicited context. No party has even attempted to United States, Case No. 96–1394 (D.C. comment on whether it would be justify such a charge in more than four Cir., filed October 17, 1996). This new appropriate for incumbent price cap years. Given this and the relevant compensation plan, as well as the LECs to be relieved of complying with amendments in the 1996 Act, we find payphone dialing parity requirements, subparts D and E of part 69 of our rules, that there is no need for this rate have eliminated the need for §§ 69.103, which address the allocation of element. We conclude that §§ 69.4(f) 69.303(a), 69.304(c), 69.307(c), and investments and expenses to the access and 69.122 of our rules, which provide 69.406(a)(9). We conclude that these rate elements. for a ‘‘contribution charge’’ that may be sections should be deleted. assessed on special access and 394. We conclude that codifying 2. Discussion expanded interconnection, should be previously-granted Part 69 waivers is 389. We conclude that at this time we deleted. not necessary at this time. Under the should maintain our part 69 cost 392. Under § 69.4(d), we required Price Cap Performance Review Third allocation rules. In this Report and carriers to eliminate any separate equal Report and Order, a party seeking to Order, we have instituted a phasing out access charge by January 1, 1994. We introduce a new service may do so by of the CCL charge. Until the per-minute conclude, therefore, that § 69.4(d), filing a petition showing that the new CCL charge is phased out completely which established the equal access rate service is in the public interest. Once and multi-line PICCs do not recover any element for a limited duration, should that petition for a new service has been common line revenues, price cap LECs be deleted because of the expiration of granted, carriers seeking to introduce will need to use these rules to calculate the designated time period. Similarly, the same service with the same rate the SLC. Therefore, we decline to we conclude that § 69.107, which structure may do so under expedited eliminate the cost allocation rules at this governs the computation of the equal procedures. This streamlined alternative time. We note that we may revisit this access rate element charges, and for introducing new services should issue when these rules are no longer §§ 69.308 and 69.410, which concern resolve past difficulties encountered needed to calculate the SLC. allocation of costs to that rate element, with the Part 69 waiver process. The F. Other Proposed Part 69 Changes should be deleted because the proposed codification of previously- designated time period for separate granted waivers is thus unnecessary. We 1. Background equal access rate elements has expired. therefore decline to codify previously- 390. In the NPRM, we sought We conclude that references to these granted Part 69 waivers into our rules. comment on revisions necessary to deleted sections should also be removed 395. NECA and TCA have requested update part 69 and conform it to the from part 69. Section 69.309 refers to that the Commission extend to all rate- 1996 Act. In the NPRM, we made § 69.308 and § 69.411 refers to § 69.410. of-return companies, the right to offer several proposals that we thought To ensure consistency, a new section, new services based on an expedited necessary to bring Part 69 current, designated as § 69.3(3)(12), should be process, which requires, inter alia, a including: eliminating the rules that added and should read as follows: showing that the new service is in the provide for a ‘‘contribution charge’’ that ‘‘Such a tariff shall not contain any public interest. In the Third Report and may be assessed on special access and separate carrier’s carrier tariff charges Order, we granted to incumbent price expanded interconnection; removing the for an Equal Access element.’’ Similarly, cap LECs the right to introduce new rule and sections referencing the rule we conclude that § 69.205, which services under a streamlined procedure. that establishes the equal access rate concerns transitional premium charges We will address the request of NECA element; and removing the rule and for IXCs and others should be deleted and TCA when we take up access Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31927 reform for rate-of-return companies in rules and statements set forth in those LECs justify different treatment than is the near future. preceding sections shall be controlling. accorded price cap LECs in this Order, we will be better able to explain and 396. In the NPRM, we solicited A. Need for and Objectives of This First address those concerns in a separate comment on whether we should adopt Report and Order regulatory requirements to govern rates proceeding. For the reasons set forth in for terminating access offered by 398. The Telecommunications Act of Section V above, we also disagree with competitive LECs. In Section VI.C., 1996 requires incumbent LECs to offer Rural Tel. Coalition that small supra, we conclude that we will not interconnection and unbundled incumbent LECs may be injured by the adopt such regulatory requirement at elements on an unbundled basis, and delay involved in conducting separate this time. For the same reasons, we find imposes a duty to establish reciprocal rulemakings. Finally, although we are it unnecessary to apply any of our Part compensation arrangements for the not persuaded on the basis of this record 69 regulations to competitive LECs. We transport and termination of calls. The that our prior practice of finding therefore conclude that § 69.2(hh), Commission’s access charge rules were incumbent LECs not subject to adopted at a time when interstate access which currently defines ‘‘Telephone regulatory flexibility analysis (because and local exchange services were Company’’ by reference to Section 3(r) they are not small businesses) has been offered on a monopoly basis, and in of the 1934 Act, should be changed to incorrect, we have fully performed an many cases are inconsistent with the read as follows: ‘‘ ‘Telephone Company’ RFA analysis for small incumbent LECs competitive market envisioned by the or ‘local exchange carrier’ as used in in this Order, including consideration of 1996 Act. This proceeding is being this Part means an incumbent local any adverse impact of the rules we conducted to revise the Commission’s exchange carrier as defined in section adopt and consideration of alternatives access charge rules to make them 251(h)(1) of the 1934 Act as amended by that may reduce adverse impacts on consistent with the the 1996 Act.’’ There is no indication in such entities. Telecommunications Act of 1996. the record that competitive LECs have C. Description and Estimate of the exercised any degree of market power in B. Summary of Significant Issues Raised Number of Small Entities to Which the provision of terminating access or other by the Public Comments in Response to Rules Will Apply the IRFA access services. By definition, non- 401. The RFA generally defines dominant carriers do not exercise 399. Only one party, Rural Tel. ‘‘small entity’’ as having the same market power. Further, non-dominant Coalition, commented on the IRFA meaning as the terms ‘‘small business,’’ carriers possess a negligible share of the contained in the NPRM. Rural Tel. ‘‘small organization,’’ and ‘‘small current access market and they will be Coalition disagrees with our conclusion governmental jurisdiction.’’ In addition, competing with incumbent LECs whose that rules applying only to price cap the term ‘‘small business’’ has the same rates are subject to regulation. As a LECs will not affect non-price cap LECs meaning as the term ‘‘small business practical matter, the rates of the in a way that requires analysis under the concern’’ under the Small Business Act incumbent LECs will serve as a RFA. According to Rural Tel. Coalition, unless the Commission has developed constraint to some degree on the pricing the decisions made in this Order will one or more definitions that are and practices of non-dominant LECs. ‘‘prejudge and prejudice’’ a later appropriate for its activities. A small We therefore find on this record that it rulemaking addressing access charge business concern is one which: (1) Is is sufficient to rely on the Section 208 reform for non-price cap LECs. In independently owned and operated; (2) complaint process to assure compliance addition, Rural Tel. Coalition argues is not dominant in its field of operation; with the Act by competitive LECs, and that non-price cap LECs, which include and (3) satisfies any additional criteria that we should not apply Part 69 to small incumbent LECs, will be injured established by the Small Business them. To the extent that our definitions if the access reform issues addressed in Administration (SBA). or our application of Part 69 needs in this Order are not implemented for them 402. Pursuant to 5 U.S.C. sec. 601(3), the future to be expanded to encompass as well as price-cap LECs. Finally, Rural the statutory definition of a small LECs other than incumbent LECs, we Tel. Coalition argues that the business applies ‘‘unless an agency after can revisit this issue. Commission impermissibly determined consultation with the Office of VIII. Final Regulatory Flexibility that small incumbent LECs are not small Advocacy of the Small Business Analysis businesses within the meaning of the Administration and after opportunity RFA. for public comment, establishes one or 397. As required by the Regulatory 400. Rather than attempt to enact more definitions of such term which are Flexibility Act (RFA), an Initial ‘‘one size fits all’’ access charge reform appropriate to the activities of the Regulatory Flexibility Analysis (IRFA) that would risk not fully accounting for agency and publishes such definition(s) was incorporated in the NPRM in this the special circumstances of rate-of- in the Federal Register.’’ SBA has proceeding. The Commission sought return and other non-price cap LECs, we developed a definition of small business written public comments on the have chosen to address those LECs for Standard Industrial Classification proposals in the NPRM, including the separately in a proceeding in which we (SIC) category 4813 (Telephone IRFA. The Commission’s Final may better focus on their needs. We do Communications, Except Regulatory Flexibility Analysis (FRFA) not agree with Rural Tel. Coalition that Radiotelephone). We first discuss the in this Order (the First Report and Order our decisions in this Order will number of small businesses falling in this Access Charge Reform ‘‘prejudge and prejudice’’ our within this category, and then we proceeding) conforms to the RFA, as consideration of the issues in a attempt to refine further our estimate to amended. We provide this summary subsequent rulemaking. Although we correspond with the categories of analysis to provide context for our may often find that the public interest telephone companies that are commonly analysis in this FRFA. To the extent that concerns are similar for large and small used under our rules. any statement contained in this FRFA is carriers, our analysis will begin anew, 403. Consistent with our prior perceived as creating ambiguity with and will address all relevant factors. practice, our use of the terms ‘‘small respect to our rules or statements made Moreover, where the special entities’’ and ‘‘small businesses’’ does in preceding sections of this Order, the circumstances faced by small incumbent not encompass ‘‘small incumbent 31928 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

LECs.’’ We use the term ‘‘small definition of small entities for telephone ISP exemption, and do not permit LECs incumbent LECs’’ to refer to any communications companies other than to impose access charges on ISPs at this incumbent LECs that arguably might be radiotelephone (wireless) companies. time, we conclude that the RFA does defined by SBA as ‘‘small business According to the SBA’s definition, a not require us to consider the effects of concerns.’’ Because the small incumbent small business telephone company any proposed rules on ISPs that fall LECs subject to these rules are either other than a radiotelephone company is within the definition of a small entity. dominant in their field of operations or one employing no more than 1,500 Instead, as set forth in Section VI.B are not independently owned and persons. The Census Bureau reports above, we find that the proceeding operated, they are, consistent with our that, there were 2,321 such telephone commenced with the Notice of Inquiry prior practice, excluded from the companies in operation for at least one issued contemporaneously with the definition of ‘‘small entity’’ and ‘‘small year at the end of 1992. All but 26 of NPRM is the appropriate forum to business concerns.’’ Out of an the 2,321 non-radiotelephone address the fundamental questions abundance of caution, however, for companies listed by the Census Bureau about ISP usage of the public switched regulatory flexibility analysis purposes, were reported to have fewer than 1,000 network. In the Notice of Inquiry, we we will consider small incumbent LECs employees. Thus, even if all 26 of those sought comment on broader issues within this analysis and use the term companies had more than 1,500 concerning the development of ‘‘small incumbent LECs’’ to refer to any employees, there would still be 2,295 information services and Internet incumbent LECs that arguably might be nonradiotelephone companies that access. The information provided will defined by the SBA as ‘‘small business might qualify as small entities or small give us the data we need to make further concerns.’’ incumbent LECs. We do not have reasonable and informed decisions information on the number of carriers regarding Internet access and other 1. Telephone Companies, Except that are not independently owned and information services, and, if necessary, Radiotelephone Companies (SIC 4813) operated, and thus are unable at this to craft proposals for a subsequent 404. Total Number of Telephone time to estimate with greater precision Notice of Proposed Rulemaking that are Companies Affected. The United States the number of wireline carriers and sensitive to the complex economic, Bureau of the Census (‘‘the Census service providers that would qualify as technical, and legal questions raised in Bureau’’) reports that, at the end of small business concerns under the this area. Similarly, we sought comment 1992, there were 3,497 firms engaged in SBA’s definition. Consequently, we in Section VIII.A of the NPRM on providing telephone services, as defined estimate that there are fewer than 2,295 whether the public interest would be therein, for at least one year. This small telephone communications served by regulating interstate number contains a variety of different companies other than radiotelephone terminating access services offered by categories of carriers, including local companies. competitive (non-incumbent) LECs. exchange carriers, interexchange 407. Incumbent Local Exchange Because we conclude that the public carriers, competitive access providers, Carriers. Neither the Commission nor interest would not be served by cellular carriers, mobile service carriers, the SBA has developed a definition for imposing any regulations on operator service providers, pay small incumbent providers of local competitive LECs’ interstate terminating telephone operators, personal exchange services (LECs). The closest access offerings at this time, we communications services providers, applicable definition under the SBA conclude that the RFA does not require covered specialized mobile radio rules is for telephone communications us to consider the effects of any providers, and resellers. It seems certain companies other than radiotelephone proposed rules on competitive LECs that that some of those 3,497 telephone (wireless) companies. The most reliable fall within the definition of a small service firms may not qualify as small source of information regarding the entity. entities or small incumbent LECs number of LECs nationwide is the data because they are not ‘‘independently that we collect annually in connection D. Summary Analysis of the Projected owned and operated.’’ For example, a with the TRS Worksheet. According to Reporting, Recordkeeping, and Other PCS provider that is affiliated with an our most recent data, 1,347 companies Compliance Requirements interexchange carrier having more than reported that they were engaged in the 409. In Section V.A above, we adopt 1,500 employees would not meet the provision of local exchange services. We changes to transport interconnection definition of a small business. It seems do not have information on the number charge (TIC) rate structures and reasonable to conclude that fewer than of carriers that are not independently transport rate structures to comply with 3,497 telephone service firms are small owned and operated, nor what carriers the court order in CompTel v. FCC. entity telephone service firms or small have more than 1,500 employees, and These changes will affect all incumbent incumbent local exchange carriers. thus are unable at this time to estimate LECs, including small incumbent LECs, 405. According to the with greater precision the number of and will require small incumbent LECs Telecommunications Industry Revenue: incumbent LECs that would qualify as to make one or more tariff filings Telecommunications Relay Service small business concerns under SBA’s reflecting the new rate structures, which Fund Worksheet Data (TRS Worksheet), definition. Consequently, we estimate will involve the use of legal skills, and there are 2,847 interstate carriers. These that there are fewer than 1,347 small possibly accounting, economic, and carriers include, inter alia, local incumbent LECs. financial skills. exchange carriers, wireline carriers and 410. As set forth in Section VI.D service providers, interexchange 2. Information Service Providers and above, incumbent LECs, including small carriers, competitive access providers, Competitive LECs Are Not Affected incumbent LECs, must reduce their operator service providers, pay 408. In Section VIII.B of the NPRM, interstate access charges to reflect the telephone operators, providers of we sought comment on whether to elimination of those former universal telephone toll service, providers of continue to exempt enhanced service service obligations that are being telephone exchange service, and providers (which we now refer to as replaced with new universal service resellers. information service providers, or ISPs) obligations, increase their interstate 406. Wireline Carriers and Service from any requirement to pay access access charges to reflect their new Providers. The SBA has developed a charges. Because we decide to retain the universal service obligations, and, to the Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31929 extent necessary, adjust their interstate Commission will address in a separate small incumbent LECs, wishing to enter access charges to account for any proceeding the common set of complex local telecommunications markets. additional universal service funds issues faced by non-price cap LECs, 416. Section VI.C: Terminating Access received under the modified universal which are different than those faced by Services Offered by Non-Incumbent service mechanisms. This will require price cap LECs. Moreover, as discussed LECs. As set forth in Section VI.C above, small incumbent LECs to make one or above in Section V, we find that small we find that treating new entrants as more tariff filings, which will involve incumbent LECs are unlikely to face dominant carriers subject to regulation the use of legal skills. imminent harm as a result of the of their terminating access services until we find otherwise would impose E. Burdens on Small Entities, and continued application of our current access charge rules because all non- unnecessary regulation, including Significant Alternatives Considered and potentially increased regulatory burdens Rejected price cap incumbent LECs may be exempt from, or eligible for a on small businesses. Instead of 411. Sections III.C–D: Transport/TIC modification or suspension of, the imposing such burdens, we find that the Rate Structure Changes. As set forth in interconnection and unbundling imposition of regulatory requirements Sections III.C–D above, we adopt a new requirements of the 1996 Act. with respect to competitive LEC tandem-switched transport rate 414. Section VI.A: Applicability of terminating access is unnecessary in the structure and rate levels that replace the Part 69 to Unbundled Elements. As a absence of some stronger record interim rate structure in place prior to result of the exclusion of unbundled evidence that competitive LECs have in today. In addition, we adjust the TIC to elements from Part 69 access charges, the past charged unreasonable reflect the changes made by the new described in Section VI.A above, terminating access rates, or are likely to tandem-switched transport rate incumbent LECs, including small do so in the future. If there is sufficient structure and rate levels. Unlike before, incumbent LECs, may receive reduced indication that competitive LECs are we adopt for the first time a final, cost- overall levels of interstate access imposing unreasonable terminating based rate structure, which should charges as competitors enter local access charges, we will revisit this issue. reduce and minimize uncertainty for 417. Section VI.D: Universal Service markets using unbundled network those small businesses and small Related Part 69 Changes. As set forth in elements. They will, however, receive incumbent LECs whose businesses Section VI.D.2.a above, we require that payment for those unbundled network involve these services. Moreover, the LECs that contribute to the Long Term elements pursuant to interconnection new rate structure and rate levels are Support (LTS) program and LECs that agreements under Section 251 of the more closely related to the costs of receive LTS payments revise their tariffs Act. Moreover, to the extent that small providing the underlying services, to reflect the fact that the LTS program incumbent LECs receive universal which should minimize the economic is being replaced with explicit support service support through interstate access impact of these rules on small from the new Universal Service Fund charges, such funding will continue to businesses and small incumbent LECs implemented pursuant to the Universal be received without regard to any loss by minimizing the adverse impacts that Service Order adopted today. This will of revenue from interstate access can accompany non-cost based require small incumbent LECs to make charges. This is because all universal regulation. one or more tariff filings. The new service support received by small 412. We also adopt a transition plan Universal Service Fund will facilitate incumbent LECs will be received from that will have the effect of giving small the transition to competitive markets the new Universal Service Fund, businesses and small incumbent LECs while maintaining specific, predictable established in a separate order released the opportunity to plan, adjust, and and sufficient support for universal today. Finally, we note that section 251 develop their networks with a minimum service as required under section 254 of of the Act contains provisions expressly of disruption for them and their the Act. Accordingly, the required designed to take into account the special customers. Finally, as set forth in changes in LECs’ tariff filings, including circumstances of small incumbent LECs, Section III.C–D above, we find that the those in tariffs filed by small incumbent including those that qualify as rural reallocation of TIC costs and the new LECs, are part of an overall mechanism LECs, with respect to interconnection recovery procedures will facilitate the designed to minimize the economic obligations. development of competitive markets. impact of the 1996 Act on small This is because incumbent LEC rates 415. Our decisions in Section VI.A businesses and small incumbent LECs. will move toward cost-based levels and above to exclude unbundled elements The other universal service related incumbent LECs will no longer have the from the application of Part 69 access changes that we adopt in this Order ability to assess TICs on switched access charges is likely to facilitate the affect only price-cap LECs, which do not minutes that do not use their transport development of competitive markets. include any small businesses or small facilities. These pricing revisions may This is because prices for unbundled incumbent LECs. create new opportunities for small elements will reflect the costs of those entities, including small business and elements, and will not impose on F. Report to Congress small incumbent LECs wishing to enter competitors additional charges 418. The Commission shall include a local telecommunications markets. unrelated to the costs of elements being copy of this FRFA, along with this 413. Section V: Access Reform for purchased. Accordingly, as set forth in Order, in a report to be sent to Congress Incumbent Rate-of-Return Local Section VI.A above, competitors using pursuant to SBREFA. Exchange Carriers. Our decision to limit unbundled elements will contribute to access charge reform, with certain universal service on an equitable and X. Ordering Clauses specified exceptions, to price cap LECs, non discriminatory basis instead of 419. Accordingly, it is ordered, which do not include small businesses paying implicit subsidies to incumbent pursuant to Sections 1–4, 10, 201–205, or small incumbent LECs, should LECs (whether in addition to, or in 251, 254, 303(r), and 410(a) of the mitigate the potential that access charge place of, explicit universal service Communications Act of 1934, as reform could have a significant mechanisms). These decisions may amended, and Section 601 of the economic impact on any small create new opportunities for small Telecommunications Act of 1996, 47 incumbent LECs. This is because the entities, including small businesses and U.S.C. secs. 151–154, 160, 201–205, 251, 31930 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

254, 303(r), 410(a), and 601, that the List of Subjects (e)(1) The traffic sensitive switched order is adopted. interstate access basket shall contain 47 CFR Part 61 420. It is further ordered that the such services as the Commission shall provisions in this Order will be effective Communications common carriers, permit or require, including the June 15, 1997. We anticipate this date Tariffs. following service categories: will be at least thirty days after 47 CFR Part 69 (i) Local switching as described in publication of the rules in the Federal § 69.106(f) of this chapter; Register. If publication of this Order is Access charges, Communications (ii) Information, as described in delayed, however, we find good cause common carriers. § 69.109 of this chapter; under 5 U.S.C. sec. 553(d)(3) to make Federal Communications Commission. (iii) Data base access services; this Order effective less than thirty days William F. Caton, (iv) Billing name and address, as after publication, because the local Acting Secretary. described in § 69.128 of this chapter; exchange carriers subject to price cap (v) Local switching trunk ports, as regulation must file tariffs by June 16, in Rule Changes described in § 69.106(f)(1) of this order for them to be effective on July 1, Parts 61 and 69 of title 47 of the Code chapter; and 1997, as required by Section 69.3 of the of Federal Regulations are amended as (vi) Signalling transfer point port Commission’s rules, 47 CFR § 69.3. In follows: termination, as described in § 69.125(c) addition, to ensure that the local of this chapter. exchange carriers subject to price cap PART 61ÐTARIFFS (2) * * * regulation have actual notice of this (vi) Interconnection charge, as Order immediately following its release, 1. The authority citation for Part 61 continues to read as follows: recovered in §§ 69.153 and 69.155 of we are serving those entities by certified this chapter. first class mail. The collections of Authority: Secs. 1, 4(i), 4(j), 201–205, and * * * * * 403 of the Communications Act of 1934, as information contained within are 4. Section 61.45 is amended by contingent upon approval by the Office amended; 47 U.S.C. 151, 154(i), 154(j), 201– 205, and 403, unless otherwise noted. revising the introductory text of of Management and Budget. paragraph (b) and (b)(1), redesignating 421. It is further ordered that the 2. Section 61.3 is amended by revising the introductory text of paragraph (c) as following rules or amendments thereto, the introductory text of paragraph (f) to the introductory text of paragraph (c)(1) which impose new or modified read as follows: and revising it, and adding new information or collection requirements, paragraphs (c)(2), (d)(1)(ix), (i), (j), (k), shall become effective upon approval by § 61.3 Definitions the Office of Management and Budget * * * * * and (l) to read as follows: (OMB), but no sooner than June 15, (f) Basket. Any class or category of § 61.45 Adjustments to the PCI for local 1997: 47 CFR §§ 61.45, 61.47, 69.104, tariffed service or charge: exchange carriers. 69.126, 69.151, and 69.152. The * * * * * * * * * * following rules, or amendments thereto, 3. Section 61.42 is amended by (b) Adjustments to local exchange in this Report and Order shall be revising paragraphs (d)(1), (d)(2), and carrier PCIs for the baskets designated in effective January 1, 1998: 47 CFR (d)(3), adding paragraph (d)(6), and § 61.42(d) (2), (3), (4), (5), and (6) shall §§ 61.3, 61.46, 69.1, 69.2, 69.105, revising paragraphs (e)(1) and (e)(2)(vi) be made pursuant to the formula set 69.123, 69.124, 69.125, 69.154, 69.155, to read as follows: forth in § 61.44(b), and as further 69.157, 69.305, 69.306, 69.309, 69.401, explained in §§ 61.44 (e), (f), (g), and (h). 69.411, and 69.502. The following rules, § 61.42 Price cap baskets and service categories. (1) Notwithstanding the value of X which impose new or modified defined in § 61.44(b), the X value * * * * * information or collection requirements, applicable to the baskets specified in shall become effective upon approval by (d) * * * (1) A basket for the common line § 61.42(d) (2), (3), and (6) shall be 4.0%, the Office of Management and Budget or 4.7%, or 5.3%, as the carrier elects. (OMB), but no sooner than January 1, interstate access elements as described 1998: 47 CFR §§ 61.42, 61.48, 69.4, in §§ 69.115, 69.152, 69.154, and 69.157 * * * * * 69.106, 69.111, 69.153, 69.156. Unless of this chapter, and that portion of the (c)(1) Subject to paragraphs (c)(2) and otherwise stated herein, all remaining interstate access element described in (e) of this section, adjustments to local provisions of this Order are effective § 69.153 of this chapter that recovers exchange carrier PCIs for the basket June 15, 1997. common line interstate access revenues; designated in § 61.42(d)(1) shall be 422. It is further ordered that the (2) A basket for traffic sensitive made pursuant to the following formula: waiver petitions of Bell Atlantic, Pacific switched interstate access elements; * * * * * Bell, GTE, Cincinnati Bell, U S West, (3) A basket for trunking services as (2) The formula set forth in paragraph and BellSouth discussed in Section described in §§ 69.110, 69.111, 69.112, (c)(1) of this section shall be used by a III.A.5., regarding Section 69.104 as 69.114, 69.125(b), and 69.155 of this local exchange carrier subject to price applied to ISDN service are dismissed. chapter, and that portion of the cap regulation only if that carrier is 423. It is further ordered that the interstate access element described in imposing a carrier common line charge rulemaking proceeding in CC Docket § 69.153 of this chapter that recovers pursuant to § 69.154 of this chapter. No. 95–72 is terminated. residual interconnection charge Otherwise, adjustments to local 424. It is further ordered, pursuant to revenues; exchange carrier PCIs for the basket Sections 1–4, 10, 201–205, 251, 254, * * * * * designated in § 61.42(d)(1) shall be 303(r), and 701 of the Communications (6) A basket for the marketing made pursuant to the formula set forth Act of 1934, as amended, 47 U.S.C. secs. expenses described in § 69.156 of this in § 61.44(b), and paragraphs (i) and (j) 151–154, 160, 201–205, 251, 254, 303(r), chapter, including those recovered of this section, and as further explained and 601, that notice is hereby given of through End User Common Line charges in § 61.44 (e), (f), (g), and (h). For the the rulemaking described above and that and Presubscribed Interexchange Carrier purposes of this paragraph, and comment is sought on these issues. charges. notwithstanding the value of X defined Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31931 in § 61.44(b), the X value applicable to of the dollar effects of the PCI include any residual interconnection the basket specified in § 61.42(d)(1) reductions that would have applied to charge revenues recovered pursuant to shall be 4.0%, or 4.7%, or 5.3%, as the the baskets designated in § 61.42(d)(1) §§ 69.153 and 69.155 of this chapter. carrier elects. and (d)(2) except for the provisions of (l) The calculation of the PCI for the (d) * * * paragraph (i)(1) of this section by the basket designated in § 61.42(d)(6) shall (1) * * * dollar amount associated with the PCI include any marketing expense (ix) The completion of amortization of for the basket designated in revenues recovered pursuant to equal access expenses. § 61.42(d)(3), and multiplying the PCI §§ 69.153 and 69.156 of this chapter. * * * * * for the basket designated in § 61.42(d)(3) 5. Section 61.46 is amended by (i)(1) Notwithstanding the provisions by one minus the resulting ratio. revising paragraphs (d) and (e) and of paragraphs (b) and (c) of this section, (4) Effective January 1, 1998, the adding new paragraphs (g) and (h) to and subject to the limitations of reduction in the PCI for the basket read as follows: designated in § 61.42(d)(3) that results paragraph (j) of this section, price cap § 61.46 Adjustments to the API. local exchange carriers that are from paragraphs (i)(1) and (i)(2) of this recovering interconnection charge section shall be determined by dividing * * * * * (d)(1) Subject to paragraph (d)(2) of revenues through per-minute rates the sum of the dollar effects of the PCI this section, and in connection with any pursuant to § 69.124 or § 69.155 of this reductions that would have applied to price cap tariff proposing changes to chapter shall target, to the extent the baskets designated in § 61.42(d)(1), (d)(2), and (d)(6), except for the rates for services in the basket necessary to eliminate the recovery of provisions of paragraphs (i)(1) and (i)(2) designated in § 61.42(d)(1), the any residual interconnection charge of this section, by the dollar amount maximum allowable carrier common revenues through per-minute rates, any associated with the PCI for the basket line (CCL) charges shall be computed PCI reductions associated with the designated in § 61.42(d)(3), and pursuant to the following methodology: baskets designated in § 61.42(d) (1) and multiplying the PCI for the basket (2) that result from the application of CCLMOU=CLMOU * (1+% change in CL designated in § 61.42(d)(3) by one minus the formula in § 61.44(b), as further PCI)¥(EUCLMOU+PICCMOU)*1/ the resulting ratio. (1+(g/2)) explained in § 61.44 (e), (f), (g), and (h), (j) In determining the extent of the Where: to the PCI for the basket designated in targeting that shall occur pursuant to § 61.42(d)(3), with no adjustment being paragraphs (i)(1) and (i)(2) of this CCLMOU=the sum of each of the made to the PCIs for the baskets section, local exchange carriers shall proposed Carrier Common Line designated in § 61.42(d) (1) and (2) as a compute their anticipated residual rates multiplied by its result of the application of the formula interconnection charge amount by corresponding base period Carrier in § 61.44(b). These reductions are to be excluding revenues that are expected to Common Line minutes of use, made after the adjustment is made to the be reallocated to cost-causative divided by the sum of all types of PCI for the basket designated in facilities-based charges in the future. To base period Carrier Common Line § 61.42(d)(3) resulting from the determine interconnection charge minutes of use, application of the formula in § 61.44(b), amounts so excluded in connection CLMOU=the sum of each of the existing as further explained in § 61.44 (e), (f), with the July 1, 1997 tariff filings, the maximum allowable Carrier (g), and (h). following local exchange carriers shall Common Line rates multiplied by (2) Notwithstanding the provisions of use as an estimate of the residual its corresponding base period paragraphs (b) and (c) of this section, interconnection charge revenues the Carrier Common Line minutes of and subject to the limitations of specified residual interconnection use, plus each existing maximum paragraph (j) of this section, price cap charge percentage: NYNEX, 77.63 allowable End User Common Line local exchange carriers that are percent; BellSouth, 56.93 percent; U S (EUCL) rate multiplied by its recovering interconnection charge West, 59.14 percent; Bell Atlantic, 63.96 corresponding base period lines, revenues through per-minute rates percent; Southwestern Bell Telephone, plus the common line portion of pursuant to § 69.155 of this chapter 69.11 percent; and Pacific Bell and each existing maximum allowable shall target, to the extent necessary to Nevada Bell, 53.52 percent. Each Presubscribed Interexchange Carrier eliminate the recovery of any residual remaining price cap local exchange Charge (PICC) multiplied by its interconnection charge revenues carrier shall estimate a residual corresponding base period lines, through per-minute rates, any PCI interconnection charge in an amount divided by the sum of all types of reductions associated with the basket equal to 55 percent of its current base period Carrier Common Line designated in § 61.42(d)(6) that result interconnection charge revenues. For minutes of use, from the application of the formula in subsequent tariff filings in which the EUCLMOU=maximum allowable End § 61.44(b), as further explained in PCI reductions are to be targeted to the User Common Line rates multiplied § 61.44 (e), (f), (g), and (h), to the PCI for interconnection charge, these initial by base period lines, and divided by the basket designated in § 61.42(d)(3), estimates shall be adjusted to reflect the the sum of all types of base period with no adjustment being made to the actual amounts that have or will be Carrier Common Line minutes of PCIs for the basket designated in reallocated. If the use of these estimates use, § 61.42(d)(6) as a result of the results in more PCI reductions being PICCMOU=the common line portion of application of the formula in § 61.44(b). targeted to the interconnection charge maximum allowable Presubscribed This reduction is to be made after any than required to eliminate the per- Interexchange Carrier charge rates adjustment made pursuant to paragraph minute interconnection charge, the local multiplied by base period lines, and (i)(1) of this section. exchange carrier shall make the divided by the sum of all types of (3) Through December 31, 1997, the necessary exogenous adjustments to base period Carrier Common Line reduction in the PCI for the basket reverse the effects of the excess minutes of use, and designated in § 61.42(d)(3) that results targeting. g=the ratio of minutes of use per access from paragraph (i)(1) of this section (k) The calculation of the PCI for the line during the base period to shall be determined by dividing the sum basket designated in § 61.42(d)(3) shall minutes of use per access line 31932 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

during the previous base period, reductions to the PCI for the basket PART 69ÐACCESS CHARGES minus 1. designated in § 61.42(d)(3) resulting 8. The authority citation for part 69 (2) The formula set forth in paragraph from the application of the provisions of continues to read as follows: (d)(1) of this section shall be used by a § 61.45 (b) and (i)(1) shall be directed to local exchange carrier subject to price the SBI of the service category Authority: 47 U.S.C. 154 (i) and (j), 201, cap regulation only if that carrier is designated in § 61.42(e)(2)(vi). 202, 203, 205, 218, 254, and 403. imposing a per-minute carrier common (2) Effective January 1, 1998, 9. Section 69.1(c) is revised to read as line charge pursuant to § 69.154 of this notwithstanding the requirements of follows: chapter. Otherwise, adjustments to local paragraph (a) of this section, if a local exchange carrier APIs for the basket exchange carrier is recovering § 69.1 Application of access charges. designated in § 61.42(d)(1) shall be interconnection charge revenues * * * * * made pursuant to the formula set forth through per-minute rates pursuant to (c) The following provisions of this in paragraph (a) of this section. § 69.155 of this chapter, any reductions part shall apply to telephone companies (e)(1) In addition, for the purposes of to the PCI for the basket designated in subject to price cap regulation only to paragraph (d) of this section, ‘‘Existing § 61.42(d)(3) resulting from the the extent that application of such Carrier Common Line Rates’’ shall application of the provisions of provisions is necessary to develop the include existing originating premium, § 61.45(b), (i)(1), and (i)(2) shall be nationwide average carrier common line originating non-premium, terminating directed to the SBI of the service charge, for purposes of reporting premium and terminating non-premium category designated in § 61.42(e)(2)(vi). pursuant to §§ 43.21 and 43.22 of this rates; and ‘‘End User Common Line (3) Through December 31, 1997, the chapter, and for computing initial Rates’’ used to calculate the CLMOU and SBI reduction required by paragraph charges for new rate elements: §§ 69.3(f), the EUCLMOU factors shall include, but (i)(1) of this section shall be determined 69.106(b), 69.106(f), 69.106(g), not be limited to, Residential and Single by dividing the sum of the dollar 69.109(b), 69.110(d), 69.111(c), Line Business rates, Centrex rates, and amount of any PCI reduction required 69.111(g)(1), 69.111(l), 69.112(d), the Special Access surcharge. by § 61.45(i)(1) and from the application 69.114(b), 69.114(d), 69.125(b)(2), (2) For purposes of paragraph (d) of of § 61.45(b) to the basket described in 69.301 through 69.310, and 69.401 this section, ‘‘each existing § 61.42(d)(3) by the dollar amount through 69.412. The computation of Presubscribed Interexchange Carrier associated with the SBI for the service rates pursuant to these provisions by Charge’’ shall include all the charges category designated in § 61.42(e)(2)(vi), telephone companies subject to price specified in § 69.153 of this chapter. and multiplying the SBI for the service cap regulation shall be governed by the * * * * * category designated in § 61.42(e)(2)(vi) price cap rules set forth in part 61 of this (g) The calculation of the API for the by one minus the resulting ratio. chapter and other applicable basket designated in § 61.42(d)(3) shall Commission Rules and orders. (4) Effective January 1, 1998, the SBI 10. Section 69.2 is amended by include any residual interconnection reduction required by paragraph (i)(2) of charge revenues recovered pursuant to revising paragraph (hh) to read as this section shall be determined by follows: §§ 69.153 and 69.155 of this chapter. dividing the sum of the dollar amount (h) The calculation of the API for the of any PCI reduction required by § 61.45 § 69.2 Definitions. basket designated in § 61.42(d)(6) shall (i)(1) and (i)(2), and from the application * * * * * include any marketing expense of § 61.45(b) to the basket described in revenues recovered pursuant to (hh) ‘‘Telephone company’’ or ‘‘local § 61.42(d)(3) by the dollar amount exchange carrier’’ as used in this part §§ 69.153 and 69.156 of this chapter. associated with the SBI for the service 6. Section 61.47 is amended by means an incumbent local exchange category designated in § 61.42(e)(2)(vi), carrier as defined in section 251(h)(1) of adding paragraphs (g)(7), (i) and (j) to and multiplying the SBI for the service read as follows: the 1934 Act as amended by the 1996 category designated in § 61.42(e)(2)(vi) Act. § 61.47 Adjustments to the SBI; pricing by one minus the resulting ratio. * * * * * bands. (j) The calculation of the SBI for the 11. Section 69.4 is amended by * * * * * service category designated in removing and reserving paragraphs (g)(1) * * * § 61.42(e)(2)(vi) shall include any (b)(1), (d) and (f), revising the (7) The initial level of the local switch residual interconnection charge introductory text of paragraph (b), and trunk ports service category designated revenues recovered pursuant to adding paragraph (h) to read as follows: in § 61.42(e)(1)(v) shall be established to §§ 69.153 and 69.155 of this chapter. § 69.4 Charges to be filed. include those costs identified pursuant 7. Section 61.48 is amended by to § 69.106(f)(1) of this chapter. This adding paragraph (k) to read as follows: * * * * * level shall be assigned a value of 100, (b) Except as provided in paragraphs and thereafter must be adjusted as § 61.48 Transition rules for price cap (c), (e), and (h) of this section, and in provided in paragraph (a) of this formula calculations. § 69.118, the carrier’s carrier charges for section, subject to the banding * * * * * access service filed with this restrictions of paragraph (e) of this (k) Marketing expenses. In the January Commission shall include charges for section. 1, 1998 price cap tariff filing, local each of the following elements: * * * * * exchange carriers shall establish the * * * * * (i)(1) Through December 31, 1997, marketing expense basket designated in (h) In addition to the charges notwithstanding the requirements of § 61.42(d)(6) with an initial PCI and API specified in paragraph (b) of this paragraph (a) of this section, if a local level of 100. The initial value of 100 for section, the carrier’s carrier charges for exchange carrier is recovering the PCI and API for marketing expenses access service filed with this interconnection charge revenues shall correspond to the marketing Commission by price cap local exchange through per-minute rates pursuant to expenses described in § 69.156(a) of this carriers shall include charges for each of § 69.124 or § 69.155 of this chapter, any chapter. the following elements: Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31933

(1) Presubscribed interexchange services of other common carriers charges that are expressed in dollars and carrier; (OCCs). cents per access minute of use and (2) Per-minute residual * * * * * assessed upon all interexchange carriers interconnection; 15. Section 69.106 is amended by that use local exchange switching (3) Dedicated local switching trunk revising paragraphs (a) and (b), and by facilities for the provision of interstate port; adding paragraphs (f) and (g) to read as or foreign services. The maximum (4) Shared local switching trunk port; follows: charge shall be computed by dividing (5) Dedicated tandem switching trunk the projected remainder of the annual port; § 69.106 Local switching. revenues for the Local Switching (6) Line port costs in excess of basic, (a) Except as provided in § 69.118, analog service; and element by the historical annual access charges that are expressed in dollars and minutes of use for all interstate or (7) Multiplexers associated with cents per access minute of use shall be tandem switching. foreign services that use local exchange assessed by local exchange carriers that switching facilities. § 69.103 [Removed] are not subject to price cap regulation upon all interexchange carriers that use (g) On or after July 1, 1998, a price cap 12. Section 69.103 is removed. local exchange carrier may recover 13. Section 69.104 is amended by local exchange switching facilities for signalling costs associated with call revising the section heading and the provision of interstate or foreign setup through a call setup charge paragraphs (a) and (e) to read as follows: services. (b) The per minute charge described imposed upon all interstate § 69.104 End user common line for non- in paragraph (a) of this section shall be interexchange carriers that use that local price cap incumbent local exchange computed by dividing the projected exchange carrier’s facilities to originate carriers. annual revenue requirement for the or terminate interstate interexchange or (a) This section is applicable only to Local Switching element by the foreign services. This charge must be incumbent local exchange carriers that projected annual access minutes of use expressed as dollars and cents per call are not subject to price cap regulation as for all interstate or foreign services that attempt and may be assessed on that term is defined in § 61.3(x) of this use local exchange switching facilities. originating calls handed off to the chapter. A charge that is expressed in * * * * * interexchange carrier’s point of presence dollars and cents per line per month (f) Except as provided in § 69.118, and on terminating calls received from shall be assessed upon end users that price cap local exchange carriers shall an interexchange carrier’s point of subscribe to local exchange telephone establish rate elements for local presence, whether or not that call is service or Centrex service to the extent switching as follows: completed at the called location. Price they do not pay carrier common line (1) Price cap local exchange carriers cap local exchange carriers may not charges. A charge that is expressed in shall separate from the projected annual recover through this charge any costs dollars and cents per line per month revenues for the Local Switching recovered through other rate elements. shall be assessed upon providers of element those costs projected to be § 69.107 [Removed] public telephones. Such charge shall be incurred for ports (including cards and assessed for each line between the DS1/voice-grade multiplexers required 16. Section 69.107 is removed. premises of an end user, or public to access end offices equipped with 17. Section 69.111 is amended by telephone location, and a Class 5 office analog switches) on the trunk side of the removing and reserving paragraphs (b) that is or may be used for local exchange local switch. Price cap local exchange and (f), revising paragraphs (a), (c), (d), service transmissions. carriers shall further identify costs (e), and (g), and adding paragraph (l) to * * * * * incurred for dedicated trunk ports read as follows: (e) The monthly charge for each separately from costs incurred for residential and single line business local shared trunk ports. § 69.111 Tandem-switched transport and exchange service subscriber shall be the (i) Price cap local exchange carriers tandem charge. charge computed in accordance with shall recover dedicated trunk port costs (a)(1) Through June 30, 1998, except paragraph (c) of this section, or $3.50, identified pursuant to paragraph (f)(1) of as provided in paragraph (l) of this whichever is lower. this section through flat-rated charges section, tandem-switched transport * * * * * expressed in dollars and cents per trunk shall consist of two rate elements, a 14. Section 69.105 is amended by port and assessed upon the purchaser of transmission charge and a tandem revising the section heading and the dedicated trunk terminating at the switching charge. paragraph (a), and removing paragraphs port. (2) Beginning July 1, 1998, except as (ii) Price cap local exchange carriers (b)(7) and (b)(8), to read as follows: provided in paragraph (l) of this section, shall recover shared trunk port costs tandem-switched transport shall consist § 69.105 Carrier common line for non-price identified pursuant to paragraph (f)(1) of of three rate elements as follows: cap local exchange carriers. this section through charges assessed (a) This section is applicable only to upon purchasers of shared transport. (i) A per-minute charge for transport local exchange carriers that are not This charge shall be expressed in dollars of traffic over common transport subject to price cap regulation as that and cents per access minute of use. The facilities between the incumbent local term is defined in § 61.3(x) of this charge shall be computed by dividing exchange carrier’s end office and the chapter. A charge that is expressed in the projected costs of the shared ports tandem switching office. This charge dollars and cents per line per access by the historical annual access minutes shall be expressed in dollars and cents minute of use shall be assessed upon all of use calculated for purposes of per access minute of use and shall be interexchange carriers that use local recovery of common transport costs in assessed upon all purchasers of exchange common line facilities for the § 69.111(c). common transport facilities between the provision of interstate or foreign (2) Price cap local exchange carriers local exchange carrier’s end office and telecommunications services, except shall recover the projected annual the tandem switching office. that the charge shall not be assessed revenues for the Local Switching (ii) A per-minute tandem switching upon interexchange carriers to the element that are not recovered in charge. This tandem switching charge extent they resell MTS or MTS-type paragraph (f)(1) of this section through shall be set in accordance with 31934 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations paragraph (g) of this section, excluding implemented density pricing zones as (ii) A non-distance-sensitive multiplexer and dedicated port costs described in § 69.124, per-minute component shall be assessed for use of recovered in accordance with paragraph common transport charges described in the circuit equipment at the ends of the (l) of this section, and shall be assessed paragraph (a)(2)(i) of this section shall interoffice transmission links. upon all interexchange carriers and be presumed reasonable if the (f) [Reserved] other persons that use incumbent local incumbent local exchange carrier bases (g)(1) The tandem switching charge exchange carrier tandem switching the charges on a weighted per-minute imposed pursuant to paragraphs (a)(1) facilities. equivalent of direct-trunked transport or (a)(2)(ii) of this section, as applicable, (iii) A flat-rated charge for transport of DS1 and DS3 rates that reflects the shall be set to recover twenty percent of traffic over dedicated transport facilities relative number of DS1 and DS3 circuits the annual part 69 interstate tandem between the serving wire center and the used in the tandem to end office links revenue requirement plus one third of tandem switching office. This charge (or a surrogate based on the proportion the portion of the tandem switching shall be assessed as a charge for of copper and fiber facilities in the revenue requirement being recovered dedicated transport facilities interoffice network), calculated using through the interconnection charge provisioned between the serving wire the total actual voice-grade minutes of recovered by §§ 69.124, 69.153, and center and the tandem switching office use, averaged on a zone-wide basis, that 69.155, excluding multiplexer and in accordance with § 69.112. the incumbent local exchange carrier dedicated port costs recovered in (b) [Reserved] experiences based on the prior year’s accordance with paragraph (l) of this (c)(1) Through June 30, 1998, tandem- annual use. Tandem-switched transport section. switched transport transmission charges transmission charges that are not (2) Beginning January 1, 1999, the generally shall be presumed reasonable presumed reasonable shall be tandem switching charge imposed if the telephone company bases the suspended and investigated absent a pursuant to paragraph (a)(2)(ii) of this charges on a weighted per-minute substantial cause showing by the section shall be set to recover the equivalent of direct-trunked transport incumbent local exchange carrier. amount prescribed in paragraph (g)(1) of DS1 and DS3 rates that reflects the (d)(1) Through June 30, 1998, the this section plus one half of the relative number of DS1 and DS3 circuits tandem-switched transport transmission remaining portion of the tandem used in the tandem to end office links charges may be distance-sensitive. switching revenue requirement then (or a surrogate based on the proportion Distance shall be measured as airline being recovered through the of copper and fiber facilities in the distance between the serving wire interconnection charge recovered by interoffice network), calculated using center and the end office, unless the §§ 69.124, 69.153, and 69.155, excluding the total actual voice-grade minutes of customer has ordered tandem-switched multiplexer and dedicated port costs use, geographically averaged on a study- transport between the tandem office and recovered in accordance with paragraph area-wide basis, that the incumbent the end office, in which case distance (l) of this section. local exchange carrier experiences based shall be measured as airline distance (3) Beginning January 1, 2000, the on the prior year’s annual use. Tandem- between the tandem office and the end tandem switching charge imposed switched transport transmission charges office. pursuant to paragraph (a)(2)(ii) of this that are not presumed reasonable (2) Beginning July 1, 1998, the per- section shall be set to recover the entire generally shall be suspended and minute charge for transport of traffic interstate tandem switching revenue investigated absent a substantial cause over common transport facilities requirement, including that portion showing by the telephone company. described in paragraph (a)(2)(i) of this formerly recovered through the (2) Beginning July 1, 1998: section may be distance-sensitive. interconnection charge recovered in (i) Except in study areas where the Distance shall be measured as airline §§ 69.124, 69.153, and 69.155, and incumbent local exchange carrier has distance between the tandem switching excluding multiplexer and dedicated implemented density pricing zones as office and the end office. port costs recovered in accordance with described in section 69.124, per-minute (e)(1) Through June 30, 1998, if the paragraph (l) of this section. common transport charges described in telephone company employs distance- (4) A local exchange carrier that is paragraph (a)(2)(i) of this section shall sensitive rates: subject to price cap regulation as that be presumed reasonable if the (i) A distance-sensitive component term is defined in § 61.3(x) of this incumbent local exchange carrier bases shall be assessed for use of the chapter shall calculate its tandem the charges on a weighted per-minute transmission facilities, including switching revenue requirement as used equivalent of direct-trunked transport intermediate transmission circuit in this paragraph by dividing the DS1 and DS3 rates that reflects the equipment between the end points of tandem switching revenue requirement relative number of DS1 and DS3 circuits the interoffice circuit; and that was included in the original used in the tandem to end office links (ii) A non-distance-sensitive interconnection charge by the original (or a surrogate based on the proportion component shall be assessed for use of interconnection charge, and then of copper and fiber facilities in the the circuit equipment at the ends of the multiplying this result by the annual interoffice network), calculated using interoffice transmission links. revenues recovered through the the total actual voice-grade minutes of (2) Beginning July 1, 1998, if the interconnection charge, described in use, geographically averaged on a study- telephone company employs distance- § 69.124, as of June 30, 1997. area-wide basis, that the incumbent sensitive rates for transport of traffic * * * * * local exchange carrier experiences based over common transport facilities, as (l) In addition to the charges on the prior year’s annual use. Tandem- described in paragraph (a)(2)(i) of this described in this section, price cap local switched transport transmission charges section: exchange carriers shall establish that are not presumed reasonable shall (i) A distance-sensitive component separate charges for multiplexers and be suspended and investigated absent a shall be assessed for use of the common dedicated trunk ports used in substantial cause showing by the transport facilities, including conjunction with the tandem switch as incumbent local exchange carrier. intermediate transmission circuit follows: (ii) In study areas where the equipment between the end office and (1) Local exchange carriers must incumbent local exchange carrier has tandem switching office; and establish a traffic-sensitive charge for Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31935

DS3/DS1 multiplexers used on the end reallocate costs from the the unitary pricing option for tandem- office side of the tandem switch, interconnection charge each time it switched transport. assessed on purchasers of common increases the differential between prices 23. Subpart C is revised to read as transport to the tandem switch. This in density zones two and one or follows: charge must be expressed in dollars and between three and one. Subpart CÐComputation of Charges for cents per access minute of use. The (2) Any incumbent local exchange Price Cap Local Exchange Carriers maximum charge shall be calculated by carrier that has already deaveraged its Sec. dividing the total costs of the rates on January 1, 1998 must reallocate 69.151 Applicability. multiplexers on the end office-side of an amount equivalent to that described 69.152 End user common line for price cap the tandem switch by the serving wire in paragraph (f)(1) of this section from local exchange carriers. center side of the tandem switch by the the interconnection charge prescribed in 69.153 Presubscribed interexchange carrier projected annual access minutes of use § 69.124 to its transport services. charge (PICC). calculated for purposes of recovery of (3) Price cap local exchange carriers 69.154 Per-minute carrier common line common transport costs in paragraph (c) shall reassign to direct-trunked charge. 69.155 Per-minute residual interconnection of this section. A similar charge shall be transport and tandem-switched assessed for DS1/voice-grade charge. transport categories or subcategories 69.156 Marketing expenses. multiplexing provided on the end-office interconnection charge amounts 69.157 Line port costs in excess of basic, side of analog tandem switches. reallocated under paragraph (f)(1) or analog service. (2)(i) Local exchange carriers must (f)(2) of this section in a manner that establish a flat-rated charge for reflects the way density pricing zones Subpart CÐComputation of Charges dedicated DS3/DS1 multiplexing on the are being implemented by the for Price Cap Local Exchange Carriers serving wire center side of the tandem incumbent local exchange carrier. § 69.151 Applicability. switch provided in conjunction with 20. Section 69.124 is revised to read dedicated DS3 transport service from as follows: This subpart shall apply only to the serving wire center to the tandem telephone companies subject to the switch. This charge shall be assessed on § 69.124 Interconnection charge. price cap regulations set forth in part 61 interexchange carriers purchasing (a) For telephone companies not of this chapter. tandem-switched transport in subject to price cap regulation, an § 69.152 End user common line for price proportion to the number of DS3 trunks interconnection charge expressed in cap local exchange carriers. provisioned for that interexchange dollars and cents per access minute (a) A charge that is expressed in carrier between the serving wire center shall be assessed upon all interexchange dollars and cents per line per month and the tandem-switch. carriers and upon all other persons shall be assessed upon end users that (ii) Local exchange carriers must using the telephone company local subscribe to local exchange telephone establish a flat-rated charge for transport network. service or Centrex service to the extent dedicated DS1/voice-grade multiplexing (b) For telephone companies not they do not pay carrier common line provided on the serving wire center side subject to price cap regulation, the charges. A charge that is expressed in of analog tandem switches. This charge interconnection charge shall be dollars and cents per line per month may be assessed on interexchange computed by subtracting entrance shall be assessed upon providers of carriers purchasing tandem-switched facilities, tandem-switched transport, public telephones. Such charge shall be transport in proportion to the direct-trunked transport, and dedicated assessed for each line between the interexchange carrier’s transport signalling transport revenues from the premises of an end user, or public capacity on the serving wire center side part 69 transport revenue requirement, telephone location, and a Class 5 office of the tandem. and dividing by the total interstate local that is or may be used for local exchange (3) Price cap local exchange carriers transport minutes. service transmissions. may recover the costs of dedicated trunk 21. Section 69.125 is amended by (b) Except as provided in paragraphs ports on the serving wire center side of revising paragraph (a) to read as follows: (d) through (i) of this section, the the tandem switch only through flat- maximum single line rate or charge rated charges expressed in dollars and § 69.125 Dedicated signalling transport. shall be computed: cents per trunk port and assessed upon (a) Dedicated signalling transport (1) By dividing one-twelfth of the the purchaser of the dedicated trunk shall consist of two elements, a projected annual revenue requirement terminating at the port. signalling link charge and a signalling for the End User Common Line element § 69.122 [Removed] transfer point (STP) port termination by the projected average number of local charge. 18. Section 69.122 is removed. exchange service subscriber lines in use 19. Section 69.123 is amended by * * * * * during such annual period, only so long adding paragraph (f) to read as follows: 22. Section 69.126 is revised to read as a per-minute carrier common line as follows: charge is assessed or the multi-line PICC § 69.123 Density pricing zones for special defined in § 69.153 recovers common access and switched transport. § 69.126 Nonrecurring charges. line revenues. * * * * * Incumbent local exchange carriers (2) By dividing one-twelfth of the (f)(1) An incumbent local exchange shall not assess any nonrecurring projected annual revenues permitted for carrier that establishes density pricing charges for service connection when an the common line basket under the zones under this section must reallocate interexchange carrier converts trunks Commission’s price cap rules, as set additional amounts recovered under the from tandem-switched transport to forth in part 61 of this chapter, by the interconnection charge prescribed in direct-trunked transport or when an projected average number of local § 69.124 to facilities-based transport interexchange carrier orders the exchange service subscriber lines in use rates, reflecting the higher costs of disconnection of overprovisioned during such annual period, if no per- serving lower-density areas. Each trunks, until six months after the minute carrier common line charge is incumbent local exchange carrier must effective date of the tariffs eliminating assessed and the multi-line PICC 31936 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations defined in § 69.153 does not recover any (g) A line shall be deemed to be a and (d) of this section if the residential common line revenues. residential subscriber line if the local exchange service rate for such (3) Provided, however, that the charge subscriber pays a rate for such line that subscribers is reduced by an equivalent for each local exchange service is described as a residential rate in the amount, provided that such local subscriber line shall not exceed $9.00 as local exchange service tariff. exchange service rate reduction is based adjusted by the inflation factor (h) [Reserved] upon a means test that is subject to computed under paragraph (k) of this (i) A line shall be deemed to be a verification. section. single line business subscriber line if (o) Paragraphs (o)(1) and (o)(2) of this (c) The charge for each subscriber line the subscriber pays a rate that is not section are effective through December associated with a public telephone shall described as a residential rate in the 31, 1997. be equal to the monthly charge local exchange service tariff and does (1) The End User Common Line computed in accordance with paragraph not obtain more than one such line from charge for residential subscribers shall (b) of this section. a particular telephone company. be reduced to the extent of the state (d)(1) Through December 31, 1997, (j) No charge shall be assessed for any assistance as calculated in paragraph the monthly charge for each primary WATS access line. (o)(2) of this section, or waived in full residential or single line business local (k)(1) On January 1, 1999: if the state assistance equals or exceeds exchange service subscriber line shall be (i) The ceiling for multi-line business the residential End User Common Line the charge computed in accordance with subscriber lines under paragraph (b)(3) charge under the circumstances paragraph (b) of this section, or $3.50, of this section will be adjusted to reflect described in this paragraph. In order to whichever is lower. inflation as measured by the change in qualify for this waiver, the subscriber (2) Beginning January 1, 1998, the GDP–PI for the 18 months ending must be eligible for and receive maximum monthly charge for each September 30, 1998. assistance or benefits provided pursuant primary residential or single line (ii) The ceiling for non-primary to a narrowly targeted telephone business local exchange service residential subscriber lines under company lifeline assistance program, subscriber line shall be the charge paragraph (e)(2)(ii) of this section will requiring verification of eligibility, computed in accordance with paragraph be adjusted to reflect inflation as implemented by the state or local (b) of this section, or $3.50, whichever measured by the change in GDP–PI for telephone company. A state or local is lower. the 12 months ending September 30, telephone company wishing to (e)(1) Through December 31, 1997, the 1998. implement this End User Common Line monthly charge for each non-primary (2) On July 1, 2000, the ceiling for reduction or waiver for its subscribers residential local exchange service multi-line business subscriber lines and shall file information with the subscriber line shall be the charge non-primary residential subscriber lines Commission Secretary demonstrating computed in accordance with paragraph will be adjusted to reflect inflation as that its plan meets the criteria set out in (b) of this section, or $3.50, whichever measured by the change in GDP–PI for this section and showing the amount of is lower. the 18 months ending on March 31, state assistance per subscriber as (2) Beginning January 1, 1998, the 2000. described in paragraph (o)(2) of this maximum monthly charge for each non- (3) On July 1 of each subsequent year, section. The reduction or waiver of the primary residential local exchange the ceiling for multi-line business End User Common Line charge shall be service subscriber line shall be the subscriber lines and non-primary available as soon as the Commission lower of: residential subscriber lines will be certifies that the state or local telephone (i) The maximum charge computed in adjusted to reflect inflation as measured plan satisfies the criteria set out in this accordance with paragraph (b) of this by the change in GDP–PI for the 12 paragraph and the relevant tariff section; or months ending on March 31 of the year provisions become effective. (ii) $5.00. On January 1, 1999, this the adjustment is made. (2)(i) The state assistance per amount shall be adjusted by the (l)(1) Beginning January 1, 1998, local subscriber shall be equal to the inflation factor computed under exchange carriers shall assess no more difference between the charges to be paragraph (k) of this section, and than one end user common line charge paid by the participating subscribers increased by $1.00. On July 1, 2000, and as calculated under the applicable and those to be paid by other in each subsequent year, this amount method under paragraph (e) of this subscribers for comparable monthly shall be adjusted by the inflation factor section for Basic Rate Interface local exchange service, service computed under paragraph (k) of this integrated services digital network connections and customer deposits, section, and increased by $1.00. (ISDN) service. except that benefits or assistance for (3) Where the local exchange carrier (2) Local exchange carriers shall connection charges and deposit provides a residential line to another assess no more than five end user requirements may only be counted once carrier so that the other carrier may common line charges as calculated annually. In order to be included in resell that residential line to a residence under paragraph (b) of this section for calculating the state assistance, such that already receives a primary Primary Rate Interface ISDN service. benefits must be a single telephone line residential line, the local exchange (m) In the event the local exchange to the household’s principal residence. carrier may collect the non-primary carrier charges less than the maximum (ii) The monthly state assistance per residential charge described in end user common line charge for any participating subscriber shall be paragraph (e) of this section from the subscriber lines, the local exchange calculated by adding the amounts other carrier. carrier may not recover the difference calculated in paragraphs (o)(2)(ii)(A) (f) Except as provided in paragraphs between the amount collected and the and (o)(2)(ii)(B) of this section. (n) and (o) of this section, the charge for maximum from carrier common line (A) The amount of the monthly state each primary residential local exchange charges or PICCs. assistance per participating subscriber service subscriber line shall be the same (n) Through December 31, 1997, the for local exchange service shall be as the charge for each single line End User Common Line charge for a calculated by dividing the annual business local exchange service residential subscriber shall be 50% of difference between charges paid by all subscriber line. the charge specified in paragraphs (b) participating subscribers for residential Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31937 local exchange service and the amount revenues before it recovers marketing of this section, the maximum monthly which would have been charged to non- expenses. PICC for multi-line business subscriber qualifying subscribers for comparable (b) If an end-user customer does not lines shall equal the maximum monthly service by twelve times the number of have a presubscribed interexchange PICC of non-primary residential subscribers participating in the state carrier, the local exchange carrier may subscriber lines. Otherwise, the assistance program. Estimates may be collect the PICC directly from the end maximum monthly PICC for multi-line used when historic data are not user. business lines shall be the lower of: available. (c) The maximum monthly PICC for (i) One twelfth of the annual common (B) The amount of the monthly state primary residential subscriber lines and line, residual interconnection charge, assistance for service connections and single-line business subscriber lines and § 69.156(a) marketing expense customer deposits per participating shall be the lower of: revenues permitted under this part and subscriber shall be calculated by (1) One twelfth of the sum of annual part 61 of this chapter, less the determining the annual amount of the common line revenues and residual maximum amounts permitted to be reductions in these charges for interconnection charge revenues recovered through the recovery participating subscribers each year and permitted under our price cap rules mechanisms under § 69.152, paragraphs dividing this amount by twelve times divided by the projected average (c) and (d)(1)(i) of this section, and the number of participating subscribers. number of local exchange service § 69.156 (b) and (c), divided by the total Estimates may be used when historic subscriber lines in use during such number of projected multi-line business data are not available. annual period, minus $3.50; or subscriber lines in use during such (p) Through December 31, 1997, in (2) $0.53. On January 1, 1999, this annual period; or connection with the filing of access amount shall be adjusted by the (ii) $2.75. On January 1, 1999, this tariffs pursuant to § 69.3(a), telephone inflation factor computed under amount shall be adjusted by the companies shall calculate for the paragraph (e) of this section, and inflation factor computed under association their projected revenue increased by $0.50. On July 1, 2000, and paragraph (e) of this section, and requirement attributable to the in each subsequent year, this amount increased by $1.50. On July 1, 2000, and operation of § 69.104 (n) through (o). shall be adjusted by the inflation factor in each subsequent year, this amount The projected amount will be adjusted computed under paragraph (e) of this shall be adjusted by the inflation factor by the association to reflect the actual section, and increased by $0.50. computed under paragraph (e) of this lifeline assistance benefits paid in the (d) To the extent that a local exchange section, and increased by $1.50. previous period. If the actual benefits carrier cannot recover its full common (e) For the PICC ceiling for primary exceeded the projected amount for that line revenues, residual interconnection residential subscriber lines and single- period, the differential will be added to charge revenues, and those marketing line business subscriber lines under the projection for the ensuing period. If expense revenues described in paragraph (c)(2) of this section, non- the actual benefits were less than the § 69.156(a) permitted under price cap primary residential subscriber lines projected amount for that period, the regulation through the recovery under paragraph (d)(1)(ii) of this differential will be subtracted from the mechanisms established in § 69.152, section, and multi-line business projection for the ensuing period. paragraph (c) of this section, and subscriber lines under paragraph Through December 31, 1997, the § 69.156 (b) and (c), the local exchange (d)(2)(ii) of this section: association shall so adjust amounts to carrier may assess a PICC on multi-line (1) On January 1, 1999, the ceiling the Lifeline Assistance revenue business subscriber lines and non- will be adjusted to reflect inflation as requirement, bill and collect such primary residential subscriber lines. measured by the change in GDP–PI for amounts from interexchange carriers (1) The maximum monthly PICC for the 12 months ending September 30, pursuant to § 69.117 and distribute the non-primary residential subscriber lines 1998. funds to qualifying telephone shall be the lower of: (2) On July 1, 2000, the ceiling will be companies pursuant to § 69.603(d). (i) One twelfth of the annual common adjusted to reflect inflation as measured line, residual interconnection charge, by the change in GDP–PI for the 18 § 69.153 Presubscribed interexchange and § 69.156(a) marketing expense carrier charge (PICC). months ending on March 31, 2000. revenues permitted under the price cap (3) On July 1 of each subsequent year, (a) A charge expressed in dollars and rules set forth in part 61 of this chapter, the ceiling will be adjusted to reflect cents per line may be assessed upon the less the maximum amounts permitted to inflation as measured by the change in subscriber’s presubscribed be recovered through the recovery GDP–PI for the 12 months ending on interexchange carrier to recover the mechanisms under § 69.152, paragraph March 31 of the year the adjustment is common line revenues permitted under (c) of this section, and § 69.156 (b) and made. the price cap rules in part 61 of this (c), divided by the total number of (f)(1) Local exchange carriers shall chapter that cannot be recovered projected non-primary residential and assess no more than one PICC as through the end user common line multi-line business subscriber lines in calculated under the applicable method charge established under § 69.152, use during such annual period; or under paragraph (d)(1) of this section for residual interconnection charge (ii) $1.50. On January 1, 1999, this Basic Rate Interface integrated services revenues, and certain marketing amount shall be adjusted by the digital network (ISDN) service. expenses described in § 69.156(a). In the inflation factor computed under (2) Local exchange carriers shall event the ceilings on the PICC prevent paragraph (e) of this section, and assess no more than five PICCs as the PICC from recovering all the increased by $1.00. On July 1, 2000, and calculated under paragraph (d)(2) of this residual common line, residual in each subsequent year, this amount section for Primary Rate Interface ISDN interconnection charge revenues, and shall be adjusted by the inflation factor service. marketing expenses, the PICC shall computed under paragraph (e) of this recover all residual common line section, and increased by $1.00. § 69.154 Per-minute carrier common line revenues before it recovers residual (2) If the maximum monthly PICC for charge. interconnection charge revenues, and all non-primary residential subscriber lines (a) Local exchange carriers may residual interconnection charge is determined using paragraph (d)(1)(i) recover a per-minute carrier common 31938 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations line charge from interexchange carriers, allocated to the common line and traffic a line port used for basic, analog service, collected on originating access minutes sensitive baskets, and the switched local exchange carriers may recover the and calculated using the weighting services within the trunking basket difference through a separate monthly method set forth in paragraph (c) of this pursuant to §§ 32.6610 of this chapter end user charge. section. The maximum such charge and 69.403. shall be the lower of: (b) The expenses described in § 69.303 [Amended] (1) The per-minute rate that would paragraph (a) of this section may be 24. Section 69.303 is amended by recover annual common line revenues recovered from non-primary residential removing paragraph (a) and the permitted less the maximum amounts subscriber lines, by increasing the end paragraph designation ‘‘(b)’’. allowed to be recovered under §§ 69.152 user common line charge described in and 69.153; or § 69.152(e). The amount of marketing § 69.304 [Amended] (2) The sum of the local switching, expenses permitted to be recovered in 25. Section 69.304 is amended by carrier common line and this manner shall be the total marketing removing paragraph (c). interconnection charge charges assessed expenses described in paragraph (a) of 26. Section 69.305 is amended by on originating minutes on December 31, this section divided by the sum of non- revising paragraphs (b) and (d), and 1997, minus the local switching charges primary residential lines and multi-line adding paragraph (e) to read as follows: assessed on originating minutes. business lines. In no event shall the end (b) To the extent that paragraph (a) of user common line charge for these lines § 69.305 Carrier cable and wire facilities this section does not recover from exceed the lower of the ceilings (C&WF). interexchange carriers all permitted established in § 69.152 (b)(3) and * * * * * carrier common line revenue, the excess (e)(2)(ii). (b) Carrier C&WF, other than WATS may be collected through a per-minute (c) The expenses described in access lines, not assigned pursuant to charge on terminating access calculated paragraph (a) of this section may be paragraph (a), (c), or (e) of this section using the weighting method set forth in recovered from multi-line business that is used for interexchange services paragraph (c) of this section. subscriber lines, by increasing the end that use switching facilities for (c) For each Carrier Common Line user common line charge described in access element tariff, the premium origination and termination that are also § 69.152(b). The amount permitted to be used for local exchange telephone originating Carrier Common Line charge recovered in this manner shall be the shall be set at a level that recovers service shall be apportioned to the local total marketing expenses described in Transport elements. revenues allowed under paragraphs (a) paragraph (a) of this section divided by * * * * * and (b) of this section. The non- the sum of non-primary residential lines premium charges shall be equal to .45 and multi-line business lines. In no (d) All Carrier C&WF that is not multiplied by the premium charges. event shall the end user common line apportioned pursuant to paragraphs (a), (b), (c), and (e) of this section shall be § 69.155 Per-minute residual charge for these lines exceed the ceiling interconnection charge. established in § 69.152(b)(3). assigned to the Special Access element. (a) Local exchange carriers may (d) In the event that the ceilings set (e) Carrier C&WF that is used to recover a per-minute residual forth in paragraphs (b) and (c) of this provide transmission between the local interconnection charge on originating section, and § 69.153(d) prevent a local exchange carrier’s signalling transfer access. The maximum such charge shall exchange carrier from recovering fully point and the local switch shall be be the lower of: the marketing expenses described in assigned to the local switching category. (1) The per-minute rate that would paragraph (a) of this section, the local 27–28. Section 69.306 is amended by recover the total annual residual exchange carrier may recover the revising paragraphs (c), (d), and (e) to interconnection charge revenues remainder through a per-minute read as follows: permitted less the portion of the assessment on originating access residual interconnection charge allowed minutes, so long as the charge for § 69.306 Central office equipment (COE). to be recovered under § 69.153; or originating access does not exceed the * * * * * (2) The sum of the local switching, amount defined in § 69.155(a)(2) less the (c) COE Category 2 (Tandem carrier common line and residual maximum permitted to be recovered Switching Equipment) that is deemed to interconnection charges assessed on under § 69.155(a). be exchange equipment for purposes of originating minutes on December 31, (e) In the event that the ceilings set the Modification of Final Judgment in 1997, minus the local switching charges forth in paragraphs (b), (c) and (d) of United States v. Western Electric Co. assessed on originating minutes, less the this section, and § 69.153(d) prevent a shall be assigned to the tandem maximum amount allowed to be local exchange carrier from recovering switching charge subelement and the recovered under § 69.154(a). fully the marketing expenses described interconnection charge element. COE (b) To the extent that paragraph (a) of in paragraph (a) of this section, the local Category 2 which is associated with the this section prohibits a local exchange exchange carrier may recover the signal transfer point function shall be carrier from recovering all of the remainder through a per-minute assigned to the local switching category. residual interconnection charge assessment on terminating access COE Category 2 which is used to revenues permitted, the residual may be minutes. provide transmission facilities between collected through a per-minute charge (f) The amount of marketing expenses the local exchange carrier’s signalling on terminating access. that may be recovered each year shall be transfer point and the database shall be (c) Any charge assessed pursuant to adjusted in accordance with the price assigned to the Line Information paragraph (a) or (b) of this section shall cap rules set forth in part 61 of this Database subelement at § 69.120(a). All be assessed only upon minutes utilizing chapter. other COE Category 2 shall be assigned the local exchange carrier’s local to the interexchange category. transport service. § 69.157 Line port costs in excess of basic, analog service. (d) COE Category 3 (Local Switching § 69.156 Marketing expenses. To the extent that the costs of ISDN Equipment) shall be assigned to the (a) Local exchange carriers shall line ports, and line ports associated Local Switching element except as recover marketing expenses that are with other services, exceed the costs of provided in paragraph (a) of this Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31939 section; and that, for telephone § 69.410 [Removed] percent. The Commission also companies subject to price cap 34. Section 69.410 is removed. eliminated sharing obligations, but regulation set forth in part 61 of this 35. Section 69.411 is revised to read retained the low-end adjustment chapter, line-side port costs shall be as follows: mechanism. The Commission adopts a assigned to the Common Line rate fixed X-Factor to remain in effect until element. § 69.411 Other expenses. the next performance review, rather (e) COE Category 4 (Circuit Except as provided in §§ 69.412, than updating the X-Factor annually on Equipment) shall be apportioned among 69.413, and 69.414, expenses that are the basis of a five-year industry-wide the interexchange category and the not apportioned pursuant to §§ 69.401 moving average. In the Fourth Further Common Line, Transport, and Special through 69.409 shall be apportioned Notice in CC Docket No. 94–1, the Access elements. COE Category 4 shall among the interexchange category and Commission sought comment on be apportioned in the same proportions all access elements in the same manner revising the common line PCI formula as the associated Cable and Wireless as § 69.309 Other investment. and the price cap exogenous cost rules. The Commission adopted revisions to Facilities; except that any DS1/voice- § 69.501 [Amended] grade multiplexer investment associated the common line PCI formula in its with analog local switches and assigned 36. Section 69.501 is amended by Access Reform First Report and Order to the local transport category by this removing and reserving paragraph (a). adopted concurrently with this Order, section shall be reallocated to the local 37. Section 69.502 is revised to read and so does not need to adopt any switching category. as follows: further revisions here. Also, as a result § 69.502 Base factor allocation. of its decision to adopt a fixed X-Factor, § 69.307 [Amended] the Commission does not need to Projected revenues from the following address issues regarding the price cap 29. Section 69.307 is amended by shall be deducted from the base factor exogenous cost rules. The Commission removing paragraph (c). portion to determine the amount that is requires price cap LECs to reset their assigned to the Carrier Common Line § 69.308 [Removed] price cap indices as of July 1, 1997, to element: 30. Section 69.308 is removed. be at the levels that would have been in (a) End User Common Line charges, effect had the 6.5 percent X-Factor taken 31. Section 69.309 is revised to read less any marketing expense revenues effect concurrently with the 1996 as follows: recovered through end user common annual access tariffs. § 69.309 Other investment. line charges pursuant to § 69.156; (b) Special Access surcharges; and EFFECTIVE DATE: June 16, 1997. Investment that is not apportioned (c) The portion of frozen per-line FOR FURTHER INFORMATION CONTACT: pursuant to §§ 69.302 through 69.307 support that carriers receive pursuant to Steven Spaeth, Competitive Pricing shall be apportioned among the § 54.303 that is attributable to LTS Division, Common Carrier Bureau, (202) interexchange category, the billing and payments received prior to January 1, 418–1530. collection category and access elements 1998. SUPPLEMENTARY INFORMATION: This is a in the same proportions as the summary of the Commission’s Order combined investment that is § 69.611 [Removed] adopted May 7, 1997, and released May apportioned pursuant to §§ 69.303 38. Section 69.611 is removed. 21, 1997. The full text of this through 69.307. [FR Doc. 97–14628 Filed 6–10–97; 8:45 am] Commission decision is available for 32. Section 69.401 is amended by inspection and copying during normal BILLING CODE 6712±01±P revising paragraph (b) to read as follows: business hours in the FCC Public § 69.401 Direct expenses. Reference Room 230, 1919 M St., N.W., Washington, D.C. The complete text of * * * * * FEDERAL COMMUNICATIONS COMMISSION this decision may also be purchased (b) Plant Specific Operations from the Commission’s copy contractor, Expenses in Accounts 6210, 6220, and 47 CFR Part 61 International Transcription Service, 6230, shall be apportioned among the Suite 140, 2100 M Street, N.W., interexchange category and access [CC Docket Nos. 94±1 and 96±262; FCC 97± Washington, D.C. 20037. elements on the basis of the 159] apportionment of the investment in Regulatory Flexibility Analysis Price Cap Performance Review for Accounts 2210, 2220, and 2230, Local Exchange Carriers; Access In the Fourth Further Notice in CC respectively; provided that any Charge Reform Docket No. 94–1, 60 FR 52362 (October expenses associated with DS1/voice- 6, 1995), we certified that the Regulatory grade multiplexers, to the extent that AGENCY: Federal Communications Flexibility Act (RFA), 5 U.S.C. 601 et they are not associated with an analog Commission. seq., did not apply to this rulemaking tandem switch, assigned to the local ACTION: Final rule. proceeding because none of the rule transport category by this paragraph amendments under consideration would shall be reallocated to the local SUMMARY: On May 7, 1997, the Federal have a significant economic impact on switching category; provided further Communications Commission adopted a substantial number of small entities. that any expenses associated with the Fourth Report and Order in CC (The RFA was amended by the Contract common channel signalling included in Docket No. 94–1, Second Report and With America Advancement Act of Account 6210 shall be assigned to the Order in CC Docket No. 96–262, revising 1996, Public Law 104–121, 110 Stat. 847 local transport category. its price cap regulations applicable to (1996) (CWAAA).) Title II of the * * * * * incumbent local exchange carriers CWAAA is the Small Business (incumbent LECs). Specifically, the Regulatory Enforcement Fairness Act of § 69.406 [Amended] Commission replaced the choice of 1996 (SBREFA). Carriers subject to price 33. Section 69.406 is amended by three X-Factors in the current price cap cap regulation for local exchange access removing paragraph (a)(9). plan with a single X-Factor of 6.5 affected by the rule amendments 31940 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations adopted in this Order are generally large rate of inflation, the Gross Domestic Therefore, we have substantially more corporations or the affiliates of such Product Price Deflator (GDP-PI), minus confidence that this X-Factor will flow corporations. No party commented an ‘‘X-Factor.’’ The X-Factor is intended through a reasonable portion of LEC specifically in response to the analysis to measure the amount by which LECs productivity gains to access customers. in our certification. are more productive than the economy We also find that, because we establish In passing the Telecommunications as a whole. a price cap plan with only one X-Factor, Act of 1996 (1996 Act), Congress sought Under our prior price cap rules, the a matching mechanism is no longer to establish ‘‘a pro-competitive, baseline X-Factor was based on the necessary. To guard against our new X- deregulatory national policy average of the short-term and long-term Factor requiring individual LECs to framework’’ for the United States trends in rate reductions prior to our charge unreasonably low rates, we will telecommunications industry. See adoption of the original price cap plan retain our current low-end adjustment Telecommunications Act of 1996, in 1990, plus a consumer productivity mechanism, which permits LECs, after Public Law 104–104, 110 Stat. 56 dividend (CPD) of 0.5 percent. We earning less than 10.25 percent in a (1996). These fundamental changes in designed the X-Factor and the consumer calendar year, to make a one time the structure and dynamics of the productivity dividend so that, at upward adjustment their rates in the telecommunications industry wrought minimum, rates would decline more next tariff year, equal to the amount that by the 1996 Act now necessitate that the quickly than they had declined before would have allowed them to earn 10.25 Commission review its existing access 1990, and so would assure that the first percent in the calendar year. charge regulations to ensure that they benefits of price cap regulation would This Order adopts a single X-Factor. are consistent and compatible with the flow to access customers in the form of The Commission adopted multiple X- 1996 Act’s far-reaching changes. The lower rates. In the First Report and Factor options in prior orders because of rule revisions we adopt based on the Order in CC Docket No. 94–1, 60 FR concerns that differences in LEC service record developed in the Fourth Further 19526 (April 19, 1995), we tentatively areas might affect their abilities to Notice in CC Docket No. 94–1, and the concluded that an analysis that directly increase their productivity growth. The Notice in CC Docket No. 96–262, will measured the growth of LEC Order observes that most of the price facilitate the deregulatory policy productivity and input prices would cap companies have selected the established in the 1996 Act. In provide a better basis for prescribing an highest, no-sharing X-Factor option in particular, our elimination of sharing X-Factor than the methodology the our current rules, and concludes that obligations removes a major Commission used in previous Orders. In the heterogeneity among LECs subject to impediment to deregulating individual the Fourth Further Notice in CC Docket price cap regulation does not affect their interstate access services at the time No. 94–1, 60 FR 52362 (October 6, productivity growth as much as the competitive conditions for a particular 1995), the Commission invited comment Commission thought previously. service warrant deregulation. on the total factor productivity (TFP) We sought comment on whether to The rules we adopt in this Order are methodology and other alternatives for keep the X-Factor up to date by basing applicable only to LECs subject to price calculating the X-Factor. The it on an industry-wide moving average cap regulation. Currently, 13 incumbent Commission invited parties to of TFP, or to continue to update the X- LECs are subject to price cap regulation. supplement the record in the Notice of Factor in occasional performance We tentatively concluded in the Fourth Proposed Rulemaking in CC Docket No. reviews. We decide, in light of the Further Notice in CC Docket No. 94–1 96–262, 62 FR 4670 (January 31, 1997). fundamental changes to the marketplace that the price cap LECs are not ‘‘small We find that the record supports resulting from the new competitive business concerns’’ because they are prescribing a single X-Factor of 6.5 paradigm of the 1996 Act, that the better generally large corporations or affiliates percent, based on our conclusions course is to select a new generally of such corporations. We hereby affirm regarding a reasonable method of applicable X-Factor, based on the this analysis. calculating LEC TFP and input prices, current record, that will remain in place The Commission will send a copy of and our decision to retain the 0.5 until we change it in a new performance this final certification, along with this percent CPD. This X-Factor is review. Order, in a report to Congress pursuant reasonable and challenging, and falls We also sought comment on whether to the Small Business Regulatory within a range of reasonable X-Factors. it is necessary to eliminate the ‘‘g/2’’ Enforcement Fairness Act of 1996, 5 Under our current price cap rules, term from the common line PCI formula U.S.C. 801(a)(1)(A), and to the Chief incumbent price cap LECs are permitted to conform to a TFP-based X-Factor. In Counsel for Advocacy of the Small to choose among three X-Factors, two of the Access Reform First Report and Business Administration, 5 U.S.C. which include obligations to share Order adopted concurrently with this 605(b). certain earnings. Sharing requires Order, we decide to eliminate the ‘‘g/2’’ incumbent LECs to ‘‘share’’ half or all term after a short transition period. In Summary of Report and Order earnings above specified rates of return this Order, we conclude that no further In conjunction with the Access with their access customers in the form revisions to the common line PCI Reform First Report and Order and the of lower access rates during the next formula are warranted. Universal Service Order, adopted year. We adopt a system of pure price The Commission sought comment on concurrently with this Order, the caps, without sharing, because sharing fashioning an X-Factor that would Commission adopts reforms needed to tends to blunt the efficiency incentives routinely incorporate cost changes set the stage for the progressive that we sought to create with price cap currently considered exogenous into the deregulation of incumbent LECs with regulation. We conclude that, under the PCI formula, which would eliminate the the development of competition. price cap rules we adopt today, any need for separate exogenous cost rules. Under price cap regulation, LEC benefits of retaining sharing are Because the Commission adopts a fixed interstate access services have been outweighed by the benefits of X-Factor in this Order, the X-Factor will placed in one of four groups of access eliminating sharing. We consider the X- not routinely incorporate exogenous services, called baskets. A price cap Factor we adopt today to be a much cost changes into the PCI formula, and index (PCI) limits the weighted average more reliable measure of incumbent so no changes to the exogenous cost of rate increases for each basket to the LEC potential productivity gains. rules are warranted at this time. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31941

The Order directs LECs to recalculate amended, 47 U.S.C. 154(i), 154(j), 201– amended; 47 U.S.C. 151, 154(i), 154(j), 201– their price cap ceilings for July 1, 1997, 205, 303(r), 403, and § 553 of Title 5, 205, and 403, unless otherwise noted. to be at the levels they would have been United States Code, that Part 61 of the 2. Section 61.45 is amended by had the 6.5 percent X-Factor had taken Commission’s Rules, 47 CFR Part 61, is revising paragraphs (b)(1), (b)(2), effect concurrently with their 1996 amended as set forth below. revising the definition for X in (c)(1), annual access filings. The Order finds It is further ordered that the revising the last sentence of paragraph that this adjustment is necessary provisions in this Order will be effective (c)(2), redesignating paragraph (d)(2) as because the interim price cap plan was June 16, 1997. We find good cause (d)(2)(i), adding new paragraph intended to remain for a short time, and under 5 U.S.C. § 553(d)(3) to make the (d)(2)(ii), and removing and reserving rules effective less than thirty days after that the local companies should not be paragraph (h) to read as follows: permitted to benefit indefinitely because publication, because the local exchange the more accurate 6.5 percent X-Factor carriers subject to price cap regulation § 61.45 Adjustments to the PCI for Local was not adopted sooner. The must file tariffs by June 16, in order for Exchange Carriers Commission’s repeated emphasis that them to be effective on July 1, 1997, as * * * * * the X-Factor adopted in the LEC Price required by § 69.3 of the Commission’s (b) * * * Cap Performance Review was ‘‘interim’’ rules, 47 CFR 69.3. In addition, to (1) Notwithstanding the value of X should reasonably have put carriers on ensure that the local exchange carriers defined in § 61.44(b), the X value notice that another adjustment of the subject to price cap regulation have applicable to the baskets specified in type we had adopted in that order actual notice of these rules immediately § 61.42(d)(2), (3), and (6) shall be 6.5%. following their release, we are serving would be possible—perhaps beginning (2) For the basket specified in those entities by certified, first class with the 1995 tariff year, the first year § 61.42(d)(4), the value of X, for all local under the interim X-Factor. This mail. It is further ordered that local exchange carriers subject to price cap adjustment affects only future rate regulation, shall be 3.0%. levels; it does not have any retroactive exchange carriers subject to price cap * * * * * effect on past prices or earnings. regulation shall file tariffs and revised (c)(1) * * * In the Third Further Notice of tariff review plans in accordance with Proposed Rulemaking in CC Docket No. the requirements set forth above. These X=productivity factor of 6.5%, requirements are subject to review by 94–1, 60 FR 52345 (September 26, * * * * * the Office of Management and Budget, 1995), the Commission sought comment and will be effective upon that approval. (c)(2) * * * For the purposes of this on establishing rules governing the price It is further ordered that the motion paragraph, and notwithstanding the cap treatment of video dialtone services. filed by Ad Hoc Telecommunications value of X defined in § 61.44(b), the X The Order concludes that one of the Users Committee on February 23, 1996, value applicable to the basket specified provisions of the 1996 Act makes those is dismissed. in § 61.42(d)(1), shall be 6.5%. issues moot. * * * * * List of Subjects in 47 CFR Part 61 Finally, the Order directs price cap (d) * * * LECs to file tariffs making adjustments Communications Common Carriers, (2) (i) * * * to their rates to reflect these revisions to Tariffs. (ii) Local exchange carriers specified the price cap rules no later than June 25, Federal Communications Commission. in § 61.41(a)(2) or (a)(3) shall not be 1997, to take effect July 1, 1997. Those subject to the sharing mechanism set LECs wishing to raise any rates in these Shirley S. Suggs, forth in the Commission’s Second filings must file no later than June 16, Chief, Publications Branch. Report and Order in Common Carrier 1997. We also direct price cap LECs to Rule Changes Docket No. 87–313, FCC 90–314, file revised tariff review plans (TRPs) Part 61 of title 47 of the Code of adopted September 19, 1990, with containing adjustments to their PCIs, Federal Regulations is amended as respect to earnings accruing on or after APIs, and SBIs no later than June 2, follows: July 1, 1997. This paragraph has no 1997. effect on any sharing obligation of any Ordering Clauses PART 61ÐTARIFFS local exchange carrier relating to Accordingly, it is ordered, pursuant to 1. The authority citation continues to earnings accrued before July 1, 1997. authority contained in §§ 4(i), 4(j), 201– read as follows: * * * * * 205, 303(r), and 403 of the Authority: Secs. 1, 4(i), 4(j), 201–205, and [FR Doc. 97–14746 Filed 6–10–97; 8:45 am] Communications Act of 1934, as 403 of the Communications Act of 1934, as BILLING CODE 6712±01±P federal register June 11,1997 Wednesday Proposed Rule New YorkSmallCitiesProgram; Community DevelopmentBlockGrants: 24 CFRPart570 Development Housing andUrban Department of Part III 31943 31944 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

DEPARTMENT OF HOUSING AND General Counsel, Rules Docket Clerk, Summary of Proposed Changes to URBAN DEVELOPMENT Department of Housing and Urban Subpart F Development, Room 10276, 451 Seventh Section 570.421—New York Small Cities 24 CFR Part 570 Street, SW, Washington, DC 20410. Program Design [Docket No. FR±4155±P±01] Communications should refer to the above docket number and title. A copy In this rule, HUD proposes to delete paragraph (a)(3) of § 570.421, and to add RIN 2506±AB91 of each communication submitted will a new paragraph (f), which would be available for public inspection and Community Development Block eliminate the use of multiyear plans in Grants: New York Small Cities copying during regular business hours the HUD-administered Small Cities Program (7:30 a.m.–5:30 p.m. eastern time) at the Program for NOFAs published in above address. HUD will not accept calendar year 1997 or later. HUD AGENCY: Office of the Assistant comments sent by facsimile (FAX). intends, however, to continue to honor Secretary for Community Planning and FOR FURTHER INFORMATION CONTACT: multiyear plans approved in response to Development, HUD. NOFAs published prior to calendar year ACTION: Proposed rule. Cornelia Robertson Terry, State and Small Cities Division, Office of 1997. This rule also proposes to add a SUMMARY: Section 226 of the Community Planning and Development, new paragraph (g) to the current regulations to provide that the Departments of Veterans Affairs and Department of Housing and Urban maximum grant amount that HUD will Housing and Urban Development, and Development, Room 7184, 451 Seventh award to an eligible unit of general local Independent Agencies Appropriations Street, SW, Washington, DC 20410; Act, 1996 (the Act) requires that HUD government in response to a NOFA telephone (202) 708–1322 (voice). (This published in calendar year 1997 or later issue proposed and final rules for the is not a toll-free number.) Persons with requirements of the Community is $400,000, except that counties could hearing or speech impairments may apply for a maximum of $600,000 in Development Block Grant program for access this number via TTY by calling the State of New York before issuing a HUD-administered Small Cities grant the Federal Information Relay Service at funds. HUD will not be prohibited, Notice of Funding Availability (NOFA) (800) 877–8339. for the 1997 New York Small Cities however, from awarding larger grants as competition. SUPPLEMENTARY INFORMATION: Title I of necessary to honor the terms of In proposing this rule, HUD is the Housing and Community multiyear plans approved under the inviting public comments on the Development Act of 1974 (42 U.S.C. provisions of NOFAs published prior to calendar year 1997. requirements of the Community 5300–5320) permits each State to elect Development Block Grants (CDBG) to administer all aspects of the Section 570.425—HUD Review and Small Cities Program for the State of Community Development Block Grant Actions on Applications for New York New York (24 CFR part 570, subpart F). (CDBG) Program annual fund allocation State Applicants This proposed rule contains the current for the nonentitlement areas within its This proposed rule would delete requirements for the program, with a jurisdiction. The policies and obsolete references to the FY 1995 few limited changes. The first change procedures for HUD’s CDBG Small competition from paragraph (c) of would be to delete § 570.421(a)(3), and Cities Program in 24 CFR part 570, § 570.425. It would also add a sentence add § 570.421(f) to eliminate the use of subpart F apply to grants for clarifying the application procedures multiyear plans in the HUD- nonentitlement areas in States, such as regarding carrying an application over administered Small Cities Program for New York, that did not elect to from a previous funding round or any NOFA published in calendar year competition. 1997 or later. The second change administer the CDBG Program. involves grant limits. HUD is proposing Section 226 of the Departments of Justification for Reduced Comment to add § 570.421(g), to limit the Veterans Affairs and Housing and Urban Period maximum grant award, under a NOFA, Development, and Independent HUD’s general policy in its notices of to any single, eligible unit of general Agencies Appropriations Act, 1996 proposed rulemaking is to afford the local government to $400,000, except (Pub. L. 104–134; approved April 26, public not less than 60 days for that counties may apply for a maximum 1996) (the Act) requires that HUD issue submission of comments, in accordance of $600,000 in HUD-administered Small proposed and final rules for the with HUD’s regulations on rulemaking Cities funds. HUD intends to make requirements of the CDBG program for in 24 CFR 10.1. For this proposed rule, larger grants to honor multiyear plans the State of New York before issuing a however, HUD is providing a 30-day approved in response to NOFAs issued notice of funding availability for funds public comment period. There are two prior to calendar year 1997. In order to made available for fiscal year (FY) 1997. reasons for this shortened public implement the reduction of grant limits, In accordance with the provisions of comment period. First, section 226 of HUD intends to restrict competition the Act requires that HUD publish under future NOFAs to Single Purpose section 226 of the Act, HUD is publishing this rule in order to solicit proposed and final rules for the New Grants. Another minor change is the York State Small Cities program before public comments on the requirements of deletion of obsolete references to the it can publish any NOFA announcing the New York CDBG Small Cities Fiscal Year 1995 competition in the FY 1997 funding. HUD believes that § 570.425(c), as well as a clarification of Program. These requirements appear in a longer comment period will the application procedures in that 24 CFR part 570, subpart F. Although unnecessarily delay the FY 1997 paragraph. §§ 570.429 and 570.430 also appear in program year. Second, the regulations DATES: Comments due date: July 11, subpart F and are therefore set forth for the Small Cities program in subpart 1997. below, these sections only apply to the F of part 570 had previously been ADDRESSES: HUD invites interested Small Cities Program in Hawaii. published in their entirety in a proposed persons to submit comments regarding rule for public comment on September this proposed rule to the Office of the 15, 1994 (59 FR 47500), with a final rule Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31945 published December 27, 1994 (59 FR tribal governments, and on the private SUBPART FÐSMALL CITIES 66584). HUD believes that since the sector. This proposed rule would not PROGRAM public is familiar with the issues impose any Federal mandates on any relative to the earlier rulemaking State, local, or tribal governments, or on § 570.420 General. process, and since the changes in this the private sector, within the meaning of (a) HUD administration of proposed rule are limited, the longer the UMRA. comment period is not necessary. nonentitlement CDBG funds. Title I of Catalogue of Federal Domestic the Housing and Community Findings and Certifications Assistance Development Act of 1974 permits each Environmental Impact State to elect to administer all aspects of The Catalogue of Federal Domestic the Community Development Block In accordance with 24 CFR Assistance program number is 14.219, Grant (CDBG) Program annual fund 50.19(c)(1)(i) of HUD’s regulations, Community Development Block allocation for the nonentitlement areas published in a final rule on September Grants—Small Cities Program. within its jurisdiction. This subpart sets 27, 1996 (61 FR 50914) and amended on forth policies and procedures applicable April 2, 1997 (62 FR 15800), this List of Subjects in 24 CFR Part 570 to grants for nonentitlement areas in proposed rule does not direct, provide States that have not elected to for assistance or loan and mortgage Administrative practice and administer the CDBG Program. States insurance for, or otherwise govern or procedure, American Samoa, that elected to administer the program regulate property acquisition, Community development block grants, disposition, lease, rehabilitation, Grant programs—education, Grant after the close of fiscal year 1984 cannot alteration, demolition, or new programs—housing and community return administration of the program to construction, or set out or provide for development, Guam, Indians, Lead HUD. A decision by a State to discontinue administration of the standards for construction or poisoning, Loan programs—housing and program would result in the loss of construction materials, manufactured community development, Low and CDBG funds for nonentitlement areas in housing, or occupancy. Therefore, this moderate income housing, New proposed rule is categorically excluded that State and the reallocation of those communities, Northern Mariana Islands, funds to all States in the succeeding from the requirements of the National Pacific Islands Trust Territory, Pockets Environmental Policy Act. fiscal year. of poverty, Puerto Rico, Reporting and (b) Scope and applicability. (1) This Impact on Small Entities recordkeeping requirements, Small subpart describes the policies and The Secretary, in accordance with the cities, Student aid, Virgin Islands. procedures of the Small Cities Program Regulatory Flexibility Act (5 U.S.C. Accordingly, for the reasons set out in which apply to nonentitlement areas in 605(b)), has reviewed this proposed rule the preamble, 24 CFR part 570 is States where HUD administers the before publication, and by approving it proposed to be amended as follows: CDBG Program. HUD currently certifies that this proposed rule would administers the Small Cities Program in not have a significant economic impact PART 570ÐCOMMUNITY only two States—New York and Hawaii. on a substantial number of small DEVELOPMENT BLOCK GRANTS This subpart principally addresses the entities. This proposed rule would make requirements for New York, and limited changes that would not have a 1. The authority citation for 24 CFR §§ 570.429 and 570.430 identify special significant impact on small entities. 570 continues to read as follows: procedures applicable to Hawaii. Small entities are invited, however, to (2) The allocation of formula CDBG Authority: 42 U.S.C. 3535(d) and 5301– comment on any less burdensome funds for use in nonentitlement areas of 5320. alternatives for compliance with these Hawaii and New York is as provided in regulations. 2. Subpart F is revised to read as subpart A of this part. The policies and follows: procedures set forth in the following Federalism identified subparts of this part 570 The General Counsel, as the Subpart F—Small Cities Program apply to the HUD-administered Small Designated Official under section 6(a) of Cities Program, except as modified or Executive Order 12612, Federalism, has Sec. 570.420 General. limited under the provisions thereof or determined that this proposed rule 570.421 New York Small Cities Program this subpart: would not have substantial direct effects Design. (i) Subpart A—General Provisions; on States or their political subdivisions, 570.422 Applications from joint applicants. (ii) Subpart C—Eligible Activities; or the relationship between the Federal (iii) Subpart J—Grant Administration; 570.423 Application for the HUD- (iv) Subpart K—Other Program government and the States, or on the administered New York Small Cities distribution of power and Grants. Requirements; and responsibilities among the various 570.424 Grants for imminent threats to (v) Subpart O—Performance Reviews. levels of government. This proposed public health and safety. (c) Public notification requirements. rule would make limited changes that 570.425 HUD review and actions on (1) Section 102 of the Department of would not have Federalism applications for New York State Housing and Urban Development implications. As a result, this proposed applicants. Reform Act of 1989 (42 U.S.C. 3545) rule is not subject to review under the 570.426 Program income. contains a number of provisions that are Order. 570.427 Program amendments. designed to ensure greater 570.428 Reallocated funds. accountability and integrity in the Unfunded Mandates Reform Act 570.429 Hawaii general and grant provision of certain types of assistance Title II of the Unfunded Mandates requirements. administered by HUD. All competitive Reform Act of 1995 (Pub. L. 104–4; 570.430 Hawaii program operation grants in the HUD-administered Small approved March 22, 1995) (UMRA) requirements. Cities Program in New York are affected establishes requirements for Federal 570.431 Citizen participation. by this legislation, and the requirements agencies to assess the effects of their 570.432 Repayment of section 108 loans. identified at 24 CFR part 4 apply to regulatory actions on State, local, and them. Imminent threat grants under 31946 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

§ 570.424 and section 108 repayment § 570.200(a)(3) (i), (iii), (iv), and (v) shall will have a substantial impact on the grants under § 570.432 are not affected apply. needs identified by the applicant. by section 102 as they are not (Approved by the Office of Management (b) Notice of funding availability. competitive grants. and Budget under control number 2506– HUD will issue one or more Notice(s) of (2) The Hawaii HUD-administered 0060). Funding Availability (NOFA) each fiscal Small Cities Program is not subject to year which will indicate the amount of section 102, since the funds are not § 570.421 New York Small Cities Program funds available, the annual grant limits Design. distributed in a competitive manner. per grantee, type of grants available, the (d) Abbreviated consolidated plan. (a) Selection system. (1) Competitive application requirements, and the rating Applications for the HUD-administered applications. Each competitive factors that will be used for those grants Small Cities Program which contain application will be rated and scored which are competitive. A NOFA may set housing activities must include a against the following factors: forth, subject to the requirements of this certification that the proposed housing (i) Need-absolute number of persons subpart, additional selection criteria for activities are consistent with the in poverty as further explained in the all grants. applicant’s consolidated plan as NOFA; (c) Eligible applicants. (1) Eligible described at 24 CFR part 91. (ii) Need-percent of persons in applicants in New York are units of (e) National and primary objectives. poverty as further explained in the general local government, excluding: (1) Each activity funded through the NOFA; Metropolitan cities, urban counties, Small Cities Program must meet one of (iii) Program Impact; and units of general local government which the following national objectives as (iv) Fair Housing and Equal are participating in urban counties or defined under the criteria in § 570.208. Opportunity which may include metropolitan cities, even if only part of Each activity must: assessment of the applicant’s Section 3 the participating unit of government is located in the urban county or (i) Benefit low- and moderate-income plan and implementation efforts. The metropolitan city. Indian tribes are also families; NOFA described in paragraph (b) of this ineligible for assistance under this (ii) Aid in the prevention or section will contain a more detailed subpart. An application may be elimination of slums or blight; or description of these factors, and the submitted individually or jointly by (iii) Be an activity which the grantee relative weight that each factor will be given. eligible applicants. certifies is designed to meet other (2) Counties, cities, towns, and community development needs having a (2) In addition HUD reserves the right villages may apply and receive funding particular urgency because existing to establish minimal thresholds for for separate projects to be done in the conditions pose a serious and selection factors and otherwise select same jurisdiction. Only one grant will immediate threat to the health or grants in accordance with § 570.425 and be made under each funding round for welfare of the community where other the applicable NOFA. the same type of project to be located financial resources are not available to (3) Imminent threats to public health within the jurisdiction of a unit of meet such needs. and safety. The criteria for these grants general local government (e.g., both the (2) In addition to the objectives are described in § 570.424. county and village cannot receive described in paragraph (e)(1) of this (4) Repayment of section 108 loans. funding for a sewer system to be located section, with respect to grants made The criteria for these grants are in the same village, but the county can through the Small Cities Program, not described in § 570.432. receive funding for a sewer system that less than 70 percent of the total of grant (5) Economic development grants. is located in the same village as a funds from each grant and Section 108 HUD intends to use the Section 108 loan rehabilitation project for which the loan guarantee funds received under guarantee program to the maximum village receives funding). The NOFA subpart M of this part within a fiscal extent feasible to fund economic will contain additional information on year must be expended for activities development projects in the applicant eligibility. which benefit low- and moderate- nonentitlement areas of New York. In (3) Counties may apply on behalf of income persons under the criteria of the event that there are not enough units of general local government §§ 570.208(a), or 570.208(d) (5) or (6). In Section 108 loan guarantee funds located within their jurisdiction when the case of multiyear plans in New York available to fund viable economic the unit of general local government has State approved in response to NOFAs development projects, or if a project authorized the county to apply. At the published prior to calendar year 1997, needs a grant in addition to a loan time that the county submits its not less than 70 percent of the total guarantee to make it viable, or if the application for funding, it must submit funding for grants approved pursuant to project does not meet the requirements a resolution by the governing body of a multiyear plan for a time period of up of the Section 108 program but is the unit of local government that to 3 years must be expended for eligible for a grant under this subpart, authorizes the county to submit an activities which benefit low- and HUD will fund Economic Development application on behalf of the unit of moderate-income persons. Thus, 70 applications as they are determined to general local government. The county percent of the grant for year 1 of a be fundable in a specific amount by will be considered the grantee and will multiyear plan approved in response to HUD up to the sum set aside for be responsible for executing all grant NOFAs published prior to calendar year economic development projects in the documents. The county is responsible 1997 must meet the 70 percent notice of funding availability. HUD also for ensuring compliance with all laws, requirement, 70 percent of the has the option in a NOFA of funding regulations, and Executive Orders combined grants from years 1 and 2 economic development activities on a applicable to the CDBG Program. HUD must meet the requirement, and 70 competitive basis, as a competitive will deal exclusively with the county percent of the combined grants from application as described in paragraph with respect to issues of program years 1, 2, and 3 must meet the (a)(1) of this section. In order for an administration and performance, requirement. In determining the applicant to receive Small Cities grant including remedial actions. The unit of percentage of funds expended for such funds, the field office must determine general local government will be activity, the provisions of that the economic development project considered the grantee for the purpose Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31947 of determining grant limits. The unit of applicant which will submit the report required under § 570.507(a) is the general local government’s statistics will application to HUD, and must delineate primary source of this information. The be used for purposes of the selection the responsibilities of each participating HUD Office may request additional factors referred to in § 570.421(a). unit of government with respect to the information in cases where it is (d) Public service activities cap. Small Cities Program. The lead essential to make the required Public service activities may be funded applicant is responsible for executing performance judgments. (Approved by up to a maximum of fifteen (15) percent the application, certifications, and grant the Office of Management and Budget of a State’s nonentitlement allocation for agreement, and ensuring compliance under control number 2506–0060). any fiscal year. HUD may award a grant with all laws, regulations, and Executive to a unit of general local government for Orders applicable to the CDBG Program. § 570.424 Grants for imminent threats to public service activities with up to 100 HUD will deal exclusively with the lead public health and safety. percent of the funds intended for public applicant with respect to issues of (a) Criteria. The following criteria service activities. HUD will apply the 15 program administration and apply for an imminent threat to public percent statewide cap to public service performance, including remedial health or safety: activities by funding public service actions. In the event of poor (1) The Director of Community activities in the highest rated performance, HUD reserves the right to Planning and Development of the HUD applications in each NOFA until the cap deny and/or restrict future funding to all office may, at any time, invite an is reached. units of general local government which application for funds available under (e) Activities outside an applicant’s are parties to the cooperation agreement. this subpart in response to a request for boundaries. An applicant may conduct assistance to alleviate an imminent eligible CDBG activities outside its § 570.423 Application for the HUD- threat to public health or safety that boundaries. These activities must be administered New York Small Cities Grants. requires immediate resolution. HUD demonstrated to be appropriate to (a) Proposed application. The shall verify the urgency and the meeting the applicant’s needs and applicant shall prepare and publish a immediacy of the threat with an objectives, and must be consistent with proposed application and comply with appropriate authority other than the State and local law. This provision citizen participation requirements as applicant prior to acceptance of the includes using funds provided under described in § 570.431. The applicant application, and the Director of this subpart in a metropolitan city or an should follow the citizen participation Community Planning and Development urban county. requirements of 24 CFR part 91 if it of the HUD Office shall review the claim (f) Multiyear plans. HUD will not submits a complete consolidated plan. to determine if, in fact, an imminent make any new multiyear commitments (b) Final application. The applicant threat to public health or safety does for NOFAs published in calendar year shall submit to HUD a final application exist. For example, an applicant with 1997 or later. HUD intends to continue containing its community development documented cases of disease resulting to honor the terms of the multiyear objectives and activities. This final from a contaminated drinking water plans that were approved under the application shall be submitted, in a form supply has an imminent threat to public provisions of NOFAs published prior to prescribed by HUD, to the appropriate health, while an applicant ordered to calendar year 1997. HUD office. The application also must improve the quality of its drinking water (g) Maximum grant amount. The contain a priority nonhousing supply over the next two years does not maximum grant amount that will be community development plan, in have an imminent threat within the awarded to a single, eligible unit of accordance with 24 CFR 91.235. definition of paragraph (a) of this general local government in response to (c) Certifications. (1) Certifications section. These funds are to be used to a NOFA published in calendar year shall be submitted in a form prescribed deal with those threats which represent 1997 or later is $400,000, except that by HUD. If the application contains any a unique and unusual circumstance, not counties may apply for up to $600,000 housing activities, the applicant shall for the type of threat that occurs with in HUD-administered Small Cities certify that the proposed housing frequency in a number of communities funds. HUD may specify lower grant activities are consistent with its within the State of New York. limits in the NOFA, which may include abbreviated consolidated plan, as (2) The applicant does not have different limits for different types of described at 24 CFR part 91. sufficient local resources, and other grants available or different types of (2) In the absence of evidence (which Federal or State resources are applicants. This paragraph (g) of this may, but need not, be derived from unavailable to alleviate the imminent section does not prohibit HUD from performance reviews or other sources) threat. awarding larger grants as necessary to which tends to challenge in a (3) All imminent threat projects must honor the terms of multiyear plans that substantial manner the certifications meet the requirement of § 570.420(e). were approved under the provisions of made by the applicant, the certifications (b) HUD action. (1) Fifteen percent of NOFAs published prior to calendar year will be accepted by HUD. However, if the funds allocated to New York State 1997. HUD does have available such evidence, in the Small Cities Program may be HUD may require the submission of reserved to alleviate imminent threats to § 570.422 Applications from joint additional information or assurances the public health or safety unless a applicants. before determining whether an lesser amount is specified in a NOFA. Units of general local government applicant’s certifications are Applications shall be submitted in may submit a joint application which satisfactory. accordance with § 570.423. addresses common problems faced by (d) Thresholds. The HUD Office may (2) Applications which meet the the jurisdictions, to the extent permitted use any information available to it to requirements of this section may be by the NOFA. A joint application must make the threshold judgments required approved by the Director of Community be pursuant to a written cooperation by the applicable NOFA, including Planning and Development of the HUD agreement submitted with the information related to the applicant’s Office without competition. application. The cooperation agreement performance with respect to any (3) The only funds reserved for must authorize one of the participating previous assistance under this subpart. imminent threats to the public health or units of government to act as the lead The annual performance and evaluation safety are those specified by this section 31948 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules as modified by the NOFA. After the applications will be available to the grant at the time of closeout, the funds have been depleted, HUD shall public. program income will be considered to not consider further requests for grants (2) Conditional approval. HUD may be program income of the ongoing grant. relating to imminent threats during that make a conditional approval, in which The grantee can choose which grant to fiscal year. case the grant will be approved but the credit the program income to if it has (c) Letter to proceed. Notwithstanding obligation and utilization of funds will multiple open CDBG grants. § 570.425(a)(3), after a determination be restricted. The reasons for the (c) If the unit of general local has been made that an imminent threat conditional approval and the actions government has no open ongoing CDBG exists, HUD may issue the applicant a necessary to remove the condition will grant at the time of closeout, program letter to proceed to incur costs to be specified. Failure to satisfy the income of the unit of general local alleviate the imminent threat. condition may result in a termination of government or its subrecipients which Reimbursement of such costs is the grant. amounts to less than $25,000 per year dependent upon HUD approval of the (3) HUD will not make a Small Cities will not be considered to be program final application. grant when it is determined that the income. When more than $25,000 of (d) Environmental review. Pursuant to grant will only have a minimal or program income is generated from one 24 CFR 58.34(a)(10), grants for insignificant impact on the grantee. or more closed out grants in a year after imminent threats to public health or (4) Individual grant amounts. In closeout, the entire amount of the safety are excluded from some or all of determining appropriate grant amounts program income is subject to the the environmental review requirements to be awarded, HUD may take into requirements of this part. This will be of 24 CFR part 58, to the extent account the size of the applicant, the a subject of the closeout agreement provided therein. level of demand, the scale of the activity described in § 570.509(c). proposed relative to need and § 570.425 HUD review and actions on operational capacity, the number of § 570.427 Program amendments. applications for New York State applicants. persons to be served, the amount of (a) HUD approval of certain program (a) Final application submission. (1) funds required to achieve project amendments. Grantees shall request Submission deadline. HUD will objectives and the administrative prior HUD approval for all program establish a time period during which capacity of the applicant to complete amendments involving new activities or final applications must be submitted to the activities in a timely manner. alteration of existing activities that will the appropriate office. The dates for this (c) Streamlined application significantly change the scope, location, period will be published in a notice in requirement for previous applicants. or objectives of the approved activities the Federal Register. HUD may provide pursuant to a NOFA or beneficiaries. Approval is subject to (2) Incomplete applications. that if an applicant notifies HUD in Applications must contain the the following: writing within the application period (1) Programs or projects that include information required by HUD. specified in a NOFA that it wishes to be Information relative to the application new or significantly altered activities so considered, HUD will consider are rated in accordance with the criteria will not be accepted or considered if unfunded applications from the prior received after the submission deadline, for selection applicable at the time the round or competition that meet the original preapplication or application unless the information is specifically threshold requirements of the NOFA. requested in writing by HUD. (whichever is applicable) was rated. The The applicant will have the option of rating of the program or projects (3) Pre-agreement costs. HUD withdrawing its application, or authorizes a unit of general local proposed which include the new or amending or supplementing the altered activities proposed by the government to incur costs during a application for succeeding rounds of Federal fiscal year in which a grant is amendment must be equal to or greater competition. If there is no significant than the lowest rating received by a made or the prior fiscal year for change in the application involving new preparation of a CDBG grant funded project or program during that activities or alteration of proposed cycle of ratings. application, planning costs eligible activities that will significantly change (2) Consideration shall be given to under § 570.205, environmental the scope, location or objectives of the whether any new activity proposed can assessments, and project engineering proposed activities or beneficiaries, be completed promptly. and design costs for eligible activities there will be no further citizen under §§ 570.201 through 570.204 participation requirement to keep the (3) If the grant was received on a before the establishment of a formal application active for succeeding rounds noncompetitive basis, the proposed grant relationship between the applicant of competition. Applicants availing amended project must be able to be and HUD. Costs of such activities for the themselves of the option to have an completed promptly, and must meet all funded application may be charged to application from the previous round or of the threshold requirements that were the grant should it be funded, provided competition reconsidered by HUD must required for the original project. If the that the activities are undertaken in submit a new abbreviated or full proposal is to amend the project to a accordance with the requirements of consolidated plan, if the new type of project that was rated this subpart, and 24 CFR part 58. It is competitive funding round is in a competitively in the fiscal year that the understood that the incurring of costs different fiscal year than the funding noncompetitive project was funded, the described in this paragraph creates no round or competition for which the new or altered activities proposed by obligation on HUD to approve the application was originally submitted. the amendment must receive a rating application. equal to or greater than the lowest rating (b) HUD action on final application. § 570.426 Program income. received by a funded project or program (1) Review and notification. Following (a) The provisions of § 570.504(b) during that cycle of ratings. the review of the applications, HUD will apply to all program income generated (b) Documentation of program promptly notify each applicant of the by a specific grant and received prior to amendments. Any program action taken with regard to its grant closeout. amendments that do not require HUD application. Documentation which (b) If the unit of general local approval must be fully documented in supports HUD’s decisions on government has another ongoing CDBG the grantee’s records. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31949

(c) Citizen participation requirements. involving the extent of poverty shall be grantee’s past performance under this Whenever an amendment requires HUD counted twice and each of the other program, that tends to challenge in a approval, the requirements for citizen ratios shall be counted once. (0.25+ substantial manner the grantee’s participation in § 570.431 must be met. 0.50+0.25=1.00). certification of future performance. If (d) Adjustments to grants. Grant the Secretary makes any such § 570.428 Reallocated funds. amounts under this section may be determination, however, further (a) General. This section governs adjusted where an applicant’s assurances may be required to be reallocated funds originally allocated for performance is judged inadequate, submitted by the grantee as the use under 24 CFR part 570, subpart F considering: Secretary may deem warranted or (Small Cities Program). (1) Capacity to utilize the grant necessary to find the grantee’s (b) Assignment of funds to be amount effectively and efficiently; certification satisfactory. reallocated. Reallocated funds may be: (2) Compliance with the requirements (h) Grant agreement. The grant will be (1) Used at any time necessary for a of § 570.902(a) for timely expenditure of made by means of a grant agreement section 108 repayment grant under funds beginning with grants made in FY executed by both HUD and the grantee. § 570.432; 1996. In making this calculation, all (i) Conditional grant. The Secretary (2) Added to the next Small Cities outstanding grants will be considered. may make a conditional grant in which Program competition; For the FY 1995 grant the requirement case the obligation and use of grant (3) Used to fund any application not is substantial compliance with the funds for activities may be restricted. selected for funding in the most recent applicant’s schedule or schedules Conditional grants may be made where Small Cities competition, because of a submitted in each previously funded there is substantial evidence that there procedural error made by HUD; or application; has been, or there will be, a failure to (4) Used to fund the most highly (3) Compliance with other program meet the performance requirements or ranked unfunded application or requirements based on monitoring visits criteria described in subpart O of this applications from the most recent Small and audits. part. In such case, the conditional grant Cities Program competition. (e) Reallocation. (1) Any amounts that will be made by means of a grant (c) Timing. Funds which become become available as a result of agreement, executed by HUD, which available shall be used as soon as adjustments under paragraph (d) of this includes the terms of the condition practicable. section, or any reductions under subpart specifying the reason for the conditional O of this part, shall be reallocated in the grant, the actions necessary to remove § 570.429 Hawaii general and grant same fiscal year to any remaining requirements. the condition and the deadline for eligible applicants on a pro rata basis. taking those actions. The grantee shall (a) General. This section applies to the (2) Any formula grant amounts execute and return such an agreement to HUD-administered Small Cities Program reserved for an applicant that chooses HUD within 60 days of the date of its in the State of Hawaii. not to submit an application shall be transmittal. Failure of the grantee to (b) Scope and applicability. Except as reallocated to any remaining eligible execute and return the grant agreement otherwise provided in this section, the applicants on a pro rata basis. within 60 days may be deemed by HUD policies and procedures outlined in (3) No amounts shall be reallocated to constitute rejection of the grant by the subparts A, C, J, K, O of this part, and under paragraph (e) of this section in grantee and shall be cause for HUD to in §§ 570.420, 570.430, and 570.432, any fiscal year to any applicant whose determine that the funds provided in apply to the HUD-administered Small grant amount was adjusted under the grant agreement are available for Cities Program in the State of Hawaii. paragraph (d) of this section or reduced reallocation in accordance with section (c) Grant amounts. (1) For each under subpart O of this part. 106(c) of the Act. Failure to satisfy the eligible unit of general local (f) Required submissions. In order to condition may result in a reduction in government, a formula grant amount receive its formula grant under this the grant amount pursuant to § 570.911. will be determined which bears the subpart, the applicant must submit a (Approved by the Office of Management same ratio to the total amount available consolidated plan in accordance with 24 and Budget under control number 2506– for the nonentitlement area of the State CFR part 91. That part includes 0060) as the weighted average of the ratios requirements for the content of the between: consolidated plan, for the process of § 570.430 Hawaii program operation (i) The population of that eligible unit developing the plan, including citizen requirements. of general local government and the participation provisions, for the (a) Limitation on planning and population of all eligible units of submission date, for HUD approval, and administrative costs. For grants made general local government in the for the amendment process. with allocations prior to FY 1995, no nonentitlement areas of the State; (g) Application approval. HUD will more than 20 percent of the sum of the (ii) The extent of poverty in that approve an application if the grant plus program income received eligible unit of general local government jurisdiction’s submissions have been during the grant period shall be and the extent of poverty in all the made and approved in accordance with expended for planning and program eligible units of general local 24 CFR part 91 and the certifications administrative costs. For grants received government in the nonentitlement areas required therein are satisfactory to the from allocations in FY 1995 and of the State; and Secretary. The certifications will be thereafter, a grantee will be considered (iii) The extent of housing satisfactory to the Secretary for this to be in conformance with the overcrowding in that eligible unit of purpose unless the Secretary has requirements of § 570.200(g) if general local government and the extent determined pursuant to subpart O of expenditures for planning and of housing overcrowding in all the this part that the grantee has not administration during the most recently eligible units of general local complied with the requirements of this completed program year do not exceed government in the nonentitlement areas part, has failed to carry out its 20 percent of the sum of the grant made of the State. consolidated plan as provided under for that program year and the program (2) In determining the average of the § 570.903, or has determined that there income received from post FY 1994 ratios under this paragraph (c), the ratio is evidence, not directly involving the grants during that program year. 31950 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules

(b) Performance and evaluation citizen participation plans (adopted in applicant. The assistance need not reports. Grantees will follow the accordance with § 91.505 of this title) to include the provision of funds to the requirements of § 570.507(a) for determine the criteria for substantial groups; entitlement grant recipients for all amendment and the citizen (3) Holding a minimum of two public grants received in FY 1995 and participation process to be followed. hearings, for the purpose of obtaining thereafter. Grantees will continue (Approved by the Office of Management citizens’ views and formulating or following the requirements of and Budget under control number 2506– responding to proposals and questions. § 570.507(a) for HUD-administered 0020.) Each public hearing must be conducted small cities grants for grants received at a different stage of the CDBG prior to FY 1995 until those grants are § 570.431 Citizen participation. program. Together, the hearings must closed out. (a) General. An applicant that is address community development and (c) Grant closeouts. Grants received located in a nonentitlement area of a housing needs, development of prior to FY 1995 shall be closed out in State that has not elected to distribute proposed activities and review of accordance with the procedures in funds shall comply with the citizen program performance. There must be § 570.509. Grants received in FY 1995 participation requirements described in reasonable notice of the hearings and and thereafter shall not be closed out this section, including requirements for the hearings must be held at times and individually. A grantee’s entire program the preparation of the proposed accessible locations convenient to shall be closed upon program application and the final application. potential or actual beneficiaries, with completion if a grantee ceases its The requirements for citizen reasonable accommodations including participation in the Small Cities participation do not restrict the material in accessible formats for Program. responsibility or authority of the persons with disabilities. The applicant (d) Public Services. Starting with the applicant for the development and must specify in its plan how it will meet FY 1996 grant, grantees may follow the execution of its community the requirement for hearings at times provisions of § 570.201(e)(1) that refer to development program. and locations convenient to potential or entitlement grantees, allowing grantees (b) Citizen participation plan. The actual beneficiaries; to use 15 percent of the program income applicant must develop and follow a (4) Meeting the needs of non-English received in the previous program year in detailed citizen participation plan and speaking residents in the case of public addition to 15 percent of the grant must make the plan public. The plan hearings where a significant number of amount for public services. must be completed and available before non-English speaking residents can (e) Compliance with the primary the application for assistance is reasonably be expected to participate; objective. Starting with the FY 1995 submitted to HUD, and the applicant (5) Responding to citizen complaints grant, grantees may select a time period must certify that it is following the plan. and grievances, including the of one, two or three program years in The plan must set forth the applicant’s procedures that citizens must follow which to meet the requirement that not policies and procedures for: when submitting complaints and less than 70 percent of the aggregate of (1) Giving citizens timely notice of grievances. The applicant’s policies and CDBG fund expenditures be for local meetings and reasonable and procedures must provide for timely activities benefitting low-and moderate- timely access to local meetings, written answers to written complaints income persons. Grants made from information, and records relating to the and grievances within 15 working days allocations prior to FY 1995 will be grantee’s proposed and actual use of of the receipt of the complaint, where considered individually for meeting the CDBG funds including, but not limited practicable; and primary objective, and expenditures for to: (6) Encouraging citizen participation, grants from pre-FY 1995 allocations (i) The amount of CDBG funds particularly by low-and moderate- made during and after FY 1995 will not expected to be made available for the income persons who reside in slum or be considered in determining whether coming year, including the grant and blighted areas, and in other areas in the primary objective has been met for anticipated program income; which CDBG funds are proposed to be post-1994 allocations. If the State of (ii) The range of activities that may be used. Hawaii decides to administer the undertaken with those funds; (c) Publication of proposed Community Development Block Grant (iii) The estimated amount of those application. The applicant shall publish Program for nonentitlement units of funds proposed to be used for activities a proposed application consisting of the general local government in Hawaii, the that will benefit low and moderate proposed community development State will be bound by the time period income persons; activities and community development for meeting the primary objective that (iv) The proposed CDBG activities objectives in order to afford affected was chosen by each nonentitlement likely to result in displacement and the citizens an opportunity to: grantee within the State until those time applicant’s plans, consistent with the (1) Examine the application’s contents periods have expired. policies developed under § 570.606(b), to determine the degree to which they (f) Program amendments for grants for minimizing displacement of persons may be affected; received prior to FY 1995. Grantees as a result of its proposed activities; and (2) Submit comments on the proposed must follow the requirements of (v) The types and levels of assistance application; and § 91.505 of this title when amending the applicant plans to make available (or (3) Submit comments on the their program with regard to grants to require others to make available) to performance of the applicant. received prior to FY 1995. For purposes persons displaced by CDBG-funded (4) The requirement for publishing of this paragraph (f), the term activities, even if the applicant expects may be met by publishing a summary of ‘‘consolidated plan’’ as used in § 91.505 no displacement to occur; the proposed application in one or more of this title means an application (2) Providing technical assistance to newspapers of general circulation, and submitted under the Hawaii program for groups representative of persons of low by making copies of the proposed pre-FY 1995 funds. Also for purposes of and moderate income that request application available at libraries, this paragraph (f), to comply with the assistance in developing proposals. The government offices, and public places. requirements of § 91.505 of this title, level and type of assistance to be The summary must describe the grantees must refer to their current provided is at the discretion of the contents and purpose of the proposed Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Proposed Rules 31951 application, and must include a list of afford affected citizens an opportunity be consistent with section 106(d)(3)(B) the locations where copies of the entire to examine the contents, and to submit of the Act, in such amount, and subject proposed application may be examined. comments on the proposed amendment; to such conditions as the Secretary may (d) Preparation of a final application. (4) Consider any comments and views determine. Since guaranteed loan funds An applicant must prepare a final expressed by citizens on the proposed (as defined in § 570.701) are required to application. In the preparation of the amendment and, if the grantee finds it be used in accordance with national and final application, the applicant shall appropriate, modify the final primary objective requirements, and consider comments and views received amendment accordingly; and other applicable requirements of this related to the proposed application and (5) Make the final amendment to the part, any grant made to make payments may, if appropriate, modify the final community development program on the debt obligations evidencing the application. The final application shall available to the public before its guaranteed loan shall be presumed to be made available to the public and submission to HUD. meet such requirements, unless HUD shall include the community determines that the guaranteed loan development objectives and projected § 570.432 Repayment of section 108 loans. funds were not used in accordance with use of funds, and the community Notwithstanding any other provision such requirements. Any such development activities. of this subpart, a unit of general local determination by HUD shall not prevent (e) New York grantee amendments. To government in a nonentitlement area the making of the grant in the amount assure citizen participation on program where the State has not elected to of the payment due, but it may be amendments to final applications that administer the CDBG program shall be grounds for HUD to take appropriate require HUD approval under § 570.427, eligible for Small Cities Grant assistance action under subpart O based on the the grantee shall: hereunder for the sole purpose of paying original noncompliance. (1) Furnish citizens information any amounts due on debt obligations Dated: May 12, 1997. concerning the amendment; issued by such unit of general local (2) Hold one or more public hearings government (or its designated public Jacquie Lawing, to obtain the views of citizens on the agency) and guaranteed by the Secretary General Deputy Assistant, Secretary for proposed amendment; pursuant to section 108 of the Act (see Community Planning and Development. (3) Develop and publish the proposed subpart M of this part). The award of [FR Doc. 97–15223 Filed 6–10–97; 8:45 am] amendment in such a manner as to grant assistance for such purpose shall BILLING CODE 4210±29±P federal register June 11,1997 Wednesday Program FurtherStreamlining;Rule Opportunities forYouth:Youthbuild 24 CFRPart585 Development Housing andUrban Department of Part IV 31953 31954 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations

DEPARTMENT OF HOUSING AND Youthbuild regulations in the Code of Findings and Certifications Federal Regulations (CFR). Subpart B URBAN DEVELOPMENT Environmental Impact pertains to the application and grant 24 CFR Part 585 award process. Certain provisions in In accordance with 24 CFR [Docket No. FR±4226±F±01] subpart B (specifically, §§ 585.100 50.19(c)(1), published in the Federal through 585.107) simply repeat the Register on September 27, 1996 (61 FR RIN No. 2506±AB93 requirements of the Department of 40914), this final rule does not direct, Housing and Urban Development provide for assistance or loan and Opportunities for Youth: Youthbuild Reform Act (Pub. L. 101–235, approved mortgage insurance for, or otherwise Program Further Streamlining; December 15, 1989) (HUD Reform Act) govern or regulate, real property AGENCY: Office of the Assistant (see 42 U.S.C. 3545), now codified in 24 acquisition, disposition, leasing (other Secretary for Community Planning and CFR part 4. (The HUD Reform Act than tenant-based rental assistance), Development, HUD. regulations previously were codified in rehabilitation, alteration, demolition, or ACTION: Final rule. 24 CFR parts 4 and 12, but were new construction. This rule merely consolidated in part 4 by final rule streamlines the Youthbuild Program SUMMARY: This final rule makes a published on April 1, 1996, 61 FR regulations by removing unnecessary streamlining amendment to 24 CFR part 1449). The requirements of the HUD provisions. Therefore, this final rule is 585 by removing subpart B regarding the Reform Act and of its regulations apply categorically excluded from the application and grant award process. to Youthbuild funding competitively requirements of the National This information is set forth in the awarded, notwithstanding any reference Environmental Policy Act of 1969 and Notices of Funding Availability issued to these requirements in the Youthbuild the related Federal authorities in 24 CFR by HUD when funding is made available Program regulations. 50.4. for the Youthbuild Program, and need not be codified. Other provisions in subpart B Regulatory Flexibility Act repeated the statutory requirements EFFECTIVE DATE: June 11, 1997. The Secretary, in accordance with the governing the application and grant Regulatory Flexibility Act (5 U.S.C. FOR FURTHER INFORMATION CONTACT: The award process set out in the Youthbuild 605(b)), has reviewed this rule before Office of Economic Development, statute. As with the HUD Reform Act publication and by approving it certifies Department of Housing and Urban requirements, these statutory that this rule will not have a significant Development, Room 7136, 451 Seventh requirements are applicable whether or economic impact on a substantial Street, SW, Washington, DC 20410. not set out in the regulation. Telephone (202) 708–2035; TTY (202) number of small entities because the 708–1455. (These telephone numbers Since the statutory and regulatory rule merely makes nonsubstantive are not toll-free.) requirements governing the application streamlining amendments to part 585. and grant award process are announced SUPPLEMENTARY INFORMATION: in the Notices of Funding Availability, Executive Order 12612, Federalism Background it is not necessary that they be set out The General Counsel, as the in the regulations. Furthermore, removal Section 164 of the Housing and Designated Official under section 6(a) of of these procedures from the CFR Community Development Act of 1992 Executive Order 12612, Federalism, has increases the flexibility of the (Pub. L. 102–550) amended title IV of determined that this rule does not have procedures as warranted by the National Affordable Housing Act (42 ‘‘federalism implications’’ because it circumstances surrounding the U.S.C. 1437aaa) to add a new subtitle D does not have substantial direct effects individual funding cycles. Accordingly, which established the Youthbuild on the States (including their political this final rule removes and reserves program (the ‘‘Youthbuild statute’’). On subdivisions), or on the distribution of subpart B. February 21, 1995, the Department power and responsibilities among the published a final rule at 60 FR 9734, Justification for Final Rule on various levels of government. which is codified at 24 CFR part 585. Streamlining Provisions Unfunded Mandates Reform Act Part 585 was streamlined by a final rule published on October 4, 1996, at 61 FR HUD generally publishes a rule for Title II of the Unfunded Mandates 52186. public comment before issuing a rule for Reform Act of 1995, Pub. L. 104–4, effect, in accordance with its own established requirements for Federal This Rule regulations on rulemaking in 24 CFR agencies to assess the effects of their President Clinton’s memorandum of part 10. However, part 10 provides for regulatory actions on State, local, and March 4, 1995, titled ‘‘Regulatory exceptions to the general rule if the tribal governments and the private Reinvention Initiative’’ directed heads agency finds good cause to omit sector. This rule does not impose any of Federal departments and agencies to advance notice and public participation. Federal mandates on any State, local, or review all existing regulations to The good cause requirement is satisfied tribal governments or the private sector eliminate those that are outdated and when prior public procedure is within the meaning of the Unfunded modify others to increase flexibility and ‘‘impracticable, unnecessary, or contrary Mandates Reform Act of 1995. reduce burden. As a part of HUD’s to the public interest’’ (24 CFR 10.1). Catalog of Federal Domestic Assistance overall effort to reduce regulatory HUD finds that good cause exists to burden and streamline the content of publish this rule for effect without first The Catalog of Federal Domestic title 24 of the Code of Federal soliciting public comment on the Assistance Program number assigned to Regulations, this rule removes those streamlining provision. The this program is 14.243. streamlining provision merely removes provisions which are unnecessary to be List of Subjects in 24 CFR Part 585 codified and can be made available unnecessary regulatory provisions and through other non-rulemaking means. does not establish or affect substantive Grant programs—housing and It is unnecessary to maintain the policy. Therefore, prior public comment community development, Homeless, provisions of subpart B of the is unnecessary. Low and very low-income families, Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Rules and Regulations 31955

Reporting and recordkeeping Authority: 42 U.S.C. 3535(d) and 12899. Dated: May 19, 1997. requirements. Jacquie M. Lawing, Accordingly, for the reasons set forth Subpart BÐ[Removed and Reserved] Acting Assistant Secretary for Community in the preamble, part 585 of title 24 of Planning and Development. the Code of Federal Regulations is 2. Subpart B, consisting of §§ 585.100 [FR Doc. 97–15221 Filed 6–10–97; 8:45 am] amended as follows: through 585.107, is removed and BILLING CODE 4210±29±P reserved. PART 585ÐYOUTHBUILD PROGRAM 1. The authority citation for part 585 continues to read as follows: federal register June 11,1997 Wednesday People's Republic ofChina;Notice Length CarbonSteel Platefromthe Less ThanFairValue; CertainCut-to- Preliminary Determination ofSalesat Russian Federation; Notice Length CarbonSteelPlatefromthe Less ThanFairValue;CertainCut-to- Preliminary DeterminationofSalesat Africa; Notice Length CarbonSteelPlatefromSouth of FinalDetermination;CertainCut-to- Less ThanFairValueandPostponement Preliminary DeterminationofSalesat Notice Length CarbonSteelPlatefromUkraine; Less ThanFairValue;CertainCut-to- Preliminary DeterminationofSalesat International TradeAdministration Commerce Department of Part V 31957 31958 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF COMMERCE Embassy of Ukraine on December 20, Both Azovstal and Ilyich reported that 1996, and requested the Embassy to they sold all subject merchandise International Trade Administration forward the documents to all Ukrainian through trading companies. In light of [A±823±808] producers/exporters of certain cut-to- this fact, the Department concluded that length carbon steel plate, as well as to clarification was required as to whether Preliminary Determination of Sales at manufacturers who produced the these resellers sold additional subject Less Than Fair Value; Certain Cut-to- subject merchandise for companies who merchandise (unreported by the Length Carbon Steel Plate from were engaged in exporting subject respondents) to the United States. Ukraine merchandise to the United States during Therefore, in March 1997, we also the period of investigation. We issued trading company questionnaires AGENCY: Import Administration, requested the Embassy to inform these to respondents’ resellers. We received International Trade Administration, companies that they must respond by responses in March and April 1997. Department of Commerce. the due dates. We also sent courtesy These responses supported the ACTION: Notice of preliminary copies to the companies whose names information submitted by Azovstal and determination of Sales at Less Than Fair and complete addresses had been Ilyich regarding their total quantity of Value. identified in the petition. sales made to the United States through On January 10, 1997, the Department the trading companies. EFFECTIVE DATE: June 11, 1997. conducted a questionnaire presentation Also on March 25, 1997, in response FOR FURTHER INFORMATION CONTACT: in Kiev, Ukraine. Attending the to the Ukrainian government’s Nithya Nagarajan, Eugenia Chu, or Yury presentation were officials from the comments, dated February 13, 1997, on Beyzarov, Import Administration, Ukrainian Ministry of Foreign Economic Ukraine’s nonmarket economy (NME) International Trade Administration, Relations, the Ministry of Industry, and status, the Department issued the U.S. Department of Commerce, 14th potential producers/exporters of carbon Ukrainian government a questionnaire Street and Constitution Avenue, N.W., steel plate. to clarify whether Ukraine’s NME status Washington, D.C. 20230; telephone: Also on January 10, 1997, Geneva should be revoked. We received these (202) 482–0193, (202) 482–3964, or Steel Company and Gulf States Steel responses on May 1, 1997. This issue is (202) 482–2243, respectively. Company (petitioners), alleged that addressed in the ‘‘Nonmarket Economy critical circumstances exist with respect Country Status’’ section of this notice. The Applicable Statute Except for the companies identified to imports of certain cut-to-length Unless otherwise indicated, all above, none of the other companies carbon steel plate from Ukraine. This citations to the statute are references to served with a questionnaire responded issue is addressed in the ‘‘Preliminary the provisions effective January 1, 1995, to the Department’s original Determination of Critical the effective date of the amendments questionnaire. Circumstances’’ section of this notice. made to the Tariff Act of 1930 (the Act) On April 15, 1997, petitioners by the Uruguay Rounds Agreements Act On February 6, 1997, the Department submitted a request that the scope of (URAA). In addition, unless otherwise provided interested parties with the their petitions be amended to include indicated, all citations to the opportunity to submit published, three items—plate in coil; plate made to Department’s regulations are to the publicly available information for the carbon plate specifications regardless of current regulations, as codified at 19 Department to consider when valuing alloy content; and plate sold to nominal CFR part 353 (April 1, 1996). the factors of production and for plate thicknesses whose actual surrogate country selection. We received thickness is slightly less than the Preliminary Determination comments from interested parties on thickness of plate but within specified We determine preliminarily that February 27, 1997. thickness tolerances. With respect to certain cut-to-length carbon steel plate In February and March 1997, three plate in coil, petitioners maintain that from Ukraine is being, or is likely to be, Ukrainian companies submitted this product has essentially the same sold in the United States at less than fair responses to sections A, C, and D of the physical characteristics and end uses as value (LTFV), as provided in section questionnaire. These companies are: (1) cut-to-length plate. Petitioners further 733 of the Act. The estimated margins Alchevsk Iron and Steel Works claim that a post-initiation shift has are shown in the ‘‘Suspension of (Alchevsk); (2) Azovstal Iron and Steel occurred in the pattern of trade from Liquidation’’ section of this notice. Works (Azovstal); and (3) Ilyich Iron cut-to-length plate to plate in coil form, and Steel Works (Ilyich). All three are and that such a development indicates Case History Ukrainian producers/exporters of that any eventual order on cut-to-length Since the initiation of this subject merchandise. We issued plate will be susceptible to investigation (61 FR 64051, December 3, supplemental questionnaires to these circumvention. Petitioners submitted 1996), the following events have respondent companies on March 7, additional information on May 9, 1997. occurred: 1997. Respondents submitted extensive On December 19, 1996, the United After receiving complete rebuttal comments on April 25, 1997, States International Trade Commission questionnaire responses from the three and May 30, 1997. (ITC) issued an affirmative preliminary Ukrainian companies on April 4, 7, and Because of the very recent submission determination in this case (see ITC 11, 1997, we determined that one of the of arguments on these complex and Investigations Nos. 731–TA–753–756). responding companies, Alchevsk, did technical subjects, we were unable to The ITC found that there is a reasonable not sell subject merchandise to the fully analyze all of the relevant indication that an industry in the United States during the POI. Therefore, information on the record prior to this United States is threatened with since Alchevsk is not a respondent, we preliminary determination. In order to material injury by reason of imports need not reach the issue of whether it fully examine petitioners’ claims, we from Ukraine of certain cut-to-length is entitled to a separate rate. For more intend to carefully examine all evidence carbon steel plate. details, see Treatment of Sales Outside and argument on the record regarding The Department issued its the POI Memorandum, dated May 30, this matter and issue a decision as soon antidumping questionnaires to the 1997. as possible. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31959

On April 30, 1997 (62 FR 23433) we Silicomanganese From Ukraine, 59 FR economy country. The Department may, further postponed the preliminary 62711 (December 6, 1994); and Final however, consider requests for a determination until not later than June Determination of Sales at Less Than Fair separate rate from an individual 3, 1997. Value: Pure Magnesium From Ukraine, exporter. See Final Determination of 60 FR 16432 (March 30, 1995)). A Sales at Less Than Fair Value: Silicon Scope of the Investigation designation as an NME remains in effect Carbide from the People’s Republic of The products covered by this until it is revoked by the Department China, 59 FR 22585 (May 2, 1994). Each investigation are hot-rolled iron and (see section 771(18)(C) of the Act). The of the participating respondent non-alloy steel universal mill plates Government of Ukraine has requested exporters has requested a separate, (i.e., flat-rolled products rolled on four that the Department examine Ukraine’s company-specific rate. During the POI, faces or in a closed box pass, of a width designation as an NME in this both Azovstal and Ilyich were owned by exceeding 150 mm but not exceeding investigation. The Department is leaseholders’ organizations. 1250 mm and of a thickness of not less currently reviewing all information To establish whether a firm is than 4 mm, not in coils and without submitted by the Ukrainian government sufficiently independent from patterns in relief), of rectangular shape, and will take into consideration the government control to be entitled to a neither clad, plated nor coated with comments of all interested parties. separate rate, the Department analyzes metal, whether or not painted, However, for this preliminary each exporting entity under a test varnished, or coated with plastics or determination, the Department will arising out of the Final Determination of other nonmetallic substances; and continue to treat Ukraine as an NME. Sales at Less Than Fair Value: Sparklers certain iron and non-alloy steel flat- from the People’s Republic of China, 56 rolled products not in coils, of Surrogate Country FR 20588 (May 6, 1991) (Sparklers). rectangular shape, hot-rolled, neither When the Department is investigating Under the separate rates criteria, the clad, plated, nor coated with metal, imports from an NME, section 773(c) of Department assigns separate rates in whether or not painted, varnished, or the Act directs the Department in most nonmarket economy cases only if coated with plastics or other circumstances to base normal value respondents can demonstrate the nonmetallic substances, 4.75 mm or (NV) on the NME producer’s factors of absence of both de jure and de facto more in thickness and of a width which production, valued in a surrogate governmental control over export exceeds 150 mm and measures at least market-economy country or countries activities. For a complete analysis of twice the thickness. Included as subject considered appropriate by the separate rates, see Separate Rates merchandise in this petition are flat- Department. In accordance with section Memorandum, dated June 3, 1997. rolled products of nonrectangular cross- 773(c)(4), the Department, in valuing the 1. Absence of De Jure Control section where such cross-section is factors of production, shall utilize, to achieved subsequent to the rolling the extent possible, the prices or costs An individual company may be process (i.e., products which have been of factors of production in one or more considered for separates rates if it meets ‘‘worked after rolling’’)—for example, market-economy countries that are the following de jure criteria: (1) An products which have been bevelled or comparable in terms of economic absence of restrictive stipulations rounded at the edges. This merchandise development to the NME country and associated with an individual exporter’s is currently classified in the are significant producers of comparable business and export licenses; (2) any Harmonized Tariff Schedule of the merchandise. The sources of individual legislative enactments decentralizing United States (HTS) under item factor prices are discussed under the NV control of companies; and (3) any other numbers 7208.40.3030, 7208.40.3060, section below. formal measures by the government 7208.51.0030, 7208.51.0045, The Department has determined that decentralizing control of companies. 7208.51.0060, 7208.52.0000, Tunisia, Peru, Poland, Venezuela, The respondents have placed on the 7208.53.0000, 7208.90.0000, Brazil, South Africa, and Turkey are administrative record a number of 7210.70.3000, 7210.90.9000, countries comparable to Ukraine in submissions to demonstrate absence of 7211.13.0000, 7211.14.0030, terms of overall economic development. de jure control. These documents 7211.14.0045, 7211.90.0000, See Policy Memorandum, dated January include laws, regulations, and 7212.40.1000, 7212.40.5000, 29, 1997. provisions enacted by the central 7212.50.0000. Although the HTS According to the available government of Ukraine, which subheadings are provided for information on the record, we have demonstrate a significant degree of convenience and customs purposes, our determined that Brazil is an appropriate deregulation of Ukrainian business written description of the scope of this surrogate because it is at a comparable activity, as well as deregulation of investigation is dispositive. level of economic development and is a Ukrainian export activity. significant producer of comparable Broadly speaking, the evidence on the Period of Investigation merchandise. Furthermore, there is a record indicates that the Government of The period of investigation (POI) is wide array of publicly available Ukraine has instituted wide-ranging April 1, 1996 through September 30, information for Brazil. Accordingly, we legal reforms toward about a more 1996. have calculated NV using Brazilian market-based economy. To do so, the prices to value the Ukrainian producers’ government has attempted to devolve de Nonmarket Economy Country Status factors of production, when available jure governmental control over some The Department has treated Ukraine and where appropriate. We have state-owned enterprises through the as a nonmarket economy country (NME) obtained and relied upon publicly privatization process and most business in all past antidumping investigations available information wherever activities of non-state-owned and administrative reviews (see, e.g., possible. enterprises. Because the government has Final Determination of Sales at Less now created a right of ownership of Than Fair Value: Ferrosilicon From Separate Rates business enterprises for private persons Kazakhstan and Ukraine, 58 FR 13050 The Department presumes that a and collectives, leaseholding societies, (March 9, 1993); Final Determination of single dumping margin is appropriate such as Azovstal and Ilyich, formerly Sales at Less Than Fair Value: for all exporters in a non-market state-owned and operated, are now 31960 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices distinct legal entities. In general, this uses profits according to its business applicable determination under this ownership right allows non-state-owned needs, and has the authority to sell its title.’’ business enterprises to freely engage in assets and to obtain loans. In addition, In addition, section 776(b) of the Act economic activity, negotiate and sign respondents’ questionnaire responses provides that, if the Department finds contracts, and independently develop indicate that company-specific pricing that an interested party ‘‘has failed to business plans. Collectives, like the during the POI does not suggest cooperate by not acting to the best of its leaseholding societies of Azovstal and coordination among exporters. ability to comply with a request for Ilyich, can independently select Thus, it appears that in fact the information,’’ the Department may use management through elections by the operation of these laws did provide information that is adverse to the workers collective and can exercise Azovstal and Ilyich the ability to protect interests of that party as the facts control and direction over the general their rights to autonomy in regard to the otherwise available. The statute also director through a contract between the actual negotiation of export prices, provides that such an adverse inference enterprise and the general director. retention and disposition of profits, may be based on secondary information, Enterprises can have their own bank selection of management and setting of including the information drawn from account, and, after taxes, it appears that labor rates, and negotiation of contracts, the petition. non-state-owned enterprises can keep including export contracts. This As discussed above, all Ukrainian the profits from their sales, and engage information supports a preliminary exporters that do not qualify for a in foreign economic activity, generally, finding that there is a de facto absence separate rate are treated as a single without government interference. of governmental control of the export enterprise. Because some exporters of Although certain categories of goods are functions of these companies. the single enterprise failed to respond to subject to mandatory export controls, Consequently, we determine the Department’s requests for including registration of export preliminarily that both of the information, that single enterprise is contracts and obligatory minimum participating producers/exporters meet considered to be uncooperative. In such prices, respondents’ shipments of the criteria for application of separate situations, the Department generally subject merchandise to the United rates. selects as total facts available either the higher of the average of the margin from States during the POI were not subject Ukraine-Wide Rate to mandatory pricing. Although the the petition or the highest rate companies indicated they must register U.S. import statistics indicate that the calculated for a respondent in the their export contracts, it appears to have total quantity and value of U.S. imports proceeding. In the present case, the been more geared to monitoring/ of certain cut-to-length carbon steel average margin in the petition is higher statistical purposes. plate from Ukraine is greater than the than the calculated rate. Accordingly, total quantity and value of steel plate the Department has based the Ukraine- 2. Absence of De Facto Control reported by all Ukrainian companies wide rate on information in the petition. The Department considers four factors that submitted responses. Given this In this case, the average petition rate is in evaluating whether each respondent discrepancy, we conclude that not all 237.91 percent. is subject to de facto governmental exporters of Ukrainian certain cut-to- Section 776(c) of the Act provides that control of its export functions: (1) length carbon steel plate responded to where the Department relies on Whether the export prices (‘‘EP’’) are set our questionnaire. Accordingly, we are ‘‘secondary information,’’ the by or subject to the approval of a applying a single antidumping deposit Department shall, to the extent governmental authority; (2) whether the rate—the Ukraine-wide rate—to all practicable, corroborate that information respondent has authority to negotiate exporters in Ukraine (other than the two from independent sources reasonable at and sign contracts and other named above as receiving separate the Department’s disposal. The agreements; (3) whether the respondent rates), based on our presumption that Statement of Administrative Action has autonomy from the government in those respondents who failed to respond (SAA), accompanying the URAA making decisions regarding the constitute a single enterprise, and are clarifies that the petition is ‘‘secondary selection of management; and (4) under common control by the Ukraine information’’ and that ‘‘corroborate’’ whether the respondent retains the government. See, e.g., Final means to determine that the information proceeds of its export sales and makes Determination of Sales at Less Than Fair used has probative value. See SAA at independent decisions regarding Value: Bicycles from the People’s 870. disposition of profits or financing of Republic of China, 61 FR 19026 (April In accordance with section 776(c) of losses. 30, 1996). the Act, we corroborated the margins in Each respondent exporter has This Ukraine-wide antidumping rate the petition to the extent practicable. asserted, and supported on the record, is based on adverse facts available. The information contained in the the following: (1) It sets its own export Section 776(a)(2) of the Act provides petition shows that petitioners prices; (2) it negotiates contracts that ‘‘if an interested party or any other calculated export price based on two without guidance from any person—(A) withholds information that methods: (1) The import values declared governmental bodies; (3) it makes its has been requested by the administering to the U.S. Customs Service; and (2) an own personnel decisions with regard to authority; (B) fails to provide such average export price derived from actual selection of management through information by the deadlines for the U.S. selling prices known to petitioners. elections by the members of the submission of the information or in the We compared the starting prices used by leaseholding societies, and the General form and manner requested, subject to petitioners less the importer mark-ups Director and his appointed Deputies subsections (c)(1) and (e) of section 782; against prices derived from U.S. import have authority to negotiate and enter (C) significantly impedes a proceeding statistics and found that the two sets of into contracts on behalf of the under this title; or (D) provides such prices were consistent. We also enterprise; and (4) it has separate bank information but the information cannot compared the movement charges used accounts and retains the proceeds of its be verified as provided in section 782(i), in the petition with the surrogate values export sales (although 50 percent of the administering authority * * * shall, used by the Department in its margin foreign currency earnings must be subject to section 782(d), use the facts calculations and found them to be converted into Ukrainian currency), otherwise available in reaching the consistent. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31961

The information in the petition with value factors of production. See Factors publication of Diario Oficial No. 180, respect to the normal value (NV) is Memorandum, dated June 3, 1997. September 27, 1995. For electricity, we based on factors of production used by relied upon public information from 2. Ilyich the petitioners in the production of steel Revista Energetica, Year 19, No. 1, Jan- plate. Petitioners submitted usage We calculated EP based on packed, Apr 1995. amounts for materials, labor and energy, FOB prices to unaffiliated purchasers in To value skilled labor, we used the adjusted for known differences in the United States. We made deductions County Reports on Human Rights production efficiencies. Petitioners from the starting price, where Practices for 1996, from the U.S. submitted three cost models in the appropriate, for brokerage and handling. Department of State. For unskilled petition: (1) Basic Oxygen Furnace However, because these services were labor, we relied on data documented for (BOF) Cost Model; (2) Open-Hearth provided by the Ukrainian port facility, unskilled labor obtained from a U.S. Furnace Cost Model; and (3) Weighted these services were assigned a surrogate Department of Commerce cable dated Average Normal Value of the BOF and value where available from Brazilian October 1994. To value overhead, Open-Hearth methods to account for publicly available published data. SG&A, and profit, we relied on financial statements of Usinas Sidergicas de differences between the production Normal Value processes of petitioners and potential Minas Gerais S. and Compania respondents. In accordance with section 773(c) of Siderurgica de Tubarao, two Brazilian The margins in the petition ranged the Act, we calculated NV based on steel companies. To value brokerage, we from 201.61 to 274.82 percent obtained factors of production reported by the relied on public data from Case No. A– by comparing the normal values to the factories in the Ukraine which produced 351–817, Cut-to-Length Plate from export price developed from customs the carbon steel plate sold by the two Brazil, Usiminas, Section C Response at values and to export prices developed respondents. We valued all the input Exh. 6, dated November 21, 1996. from actual U.S. price quotes. For each factors using publicly available information as discussed in the Preliminary Determination of Critical method, petitioners submitted estimated Circumstances dumping margins for the BOF method, Surrogate Country section of this notice. On January 10, 1997, the petitioners the open-hearth method and a weighted Factor Valuations average of the two. See Corroboration alleged that there is a reasonable basis The selection of the surrogate values Memorandum, dated June 3, 1997. to believe or suspect that critical was based on the quality and circumstances exist with respect to Fair Value Comparisons contemporaneity of the data. Where imports of certain cut-to-length carbon To determine whether certain cut-to- possible, we attempted to value material steel plate. In accordance with 19 C.F.R. length carbon steel plate from Ukraine inputs on the basis of tax-exclusive 353.16(b)(2)(i) (1996), since these sold to the United States by the domestic prices in the surrogate allegations were filed earlier than the Ukrainian exporters receiving separate country. Where we were not able to rely deadline for the Department’s rates was made at less than fair value, on domestic prices, we used import preliminary determination, we must we compared the EP to the NV, as prices to value factors. As appropriate, issue our preliminary critical specified in the ‘‘Export Price’’ and we adjusted input prices to make them circumstances determinations not later ‘‘Normal Value’’ sections of this notice. delivered prices. For those values not than the preliminary determination. contemporaneous with the POI, we Section 733(e)(1) of the Act provides Export Price adjusted for inflation using wholesale that if a petitioner alleges critical For both Azovstal and Ilyich, we price indices or, in the case of labor circumstances, the Department will calculated EP in accordance with rates, consumer price indices, published determine whether there is a reasonable section 772(a) of the Act, because the in the International Monetary Fund’s basis to believe or suspect that: (A)(i) subject merchandise was sold directly to International Financial Statistics. For a there is a history of dumping and the first unaffiliated purchaser in the complete analysis of surrogate values, material injury by reason of dumped United States prior to importation and see Factors Memorandum, dated June 3, imports in the United States or constructed export price (CEP) 1997. elsewhere of the subject merchandise, or methodology was not otherwise To value coal, coke, anthracite, ferro (ii) the person by whom, or for whose indicated. In accordance with section alloys, aluminum, pellets, ferro- account, the merchandise was imported 777A(d)(1)(A)(i) of the Act, we manganese, lime, black oil, and scrap knew or should have known that the compared POI-wide weighted-average (not all materials were used for both exporter was selling the subject EPs to the product-specific average companies) we used public information merchandise at less than its fair value normal value. from the latest data published by the and that there was likely to be material We made company-specific United Nations for 1996 (Commodity injury by reason of such sales, and (B) adjustments as follows: Trade Statistics 1994, 3 Brazil Rev. there have been massive imports of the 1995, at 19). For iron, we used subject merchandise over a relatively 1. Azovstal information in a 1996 Brazilian short period. We calculated EP based on packed, publication, Siderurigia no Mundo. For The statute and the Statement of FOB or CPT prices to the port of loading manganese ore, we relied on public Administrative Action which on Ukrainian territory. We made information from the financial accompanies the Uruguay Round deductions from the starting price, statements of Usinas Sidergicas de Agreements Act (SAA) are silent as to where appropriate, for brokerage and Minas Gerais S. and Compania how we are to make a finding that there handling. However, because these Siderurgica de Tubarao, two Brazilian was knowledge that there was likely to services were provided by the Ukrainian steel companies. For limestone, we used be material injury. Therefore, Congress port facility, these services were information from Commodity Trade has left the method of implementing assigned a surrogate value where Statistics 1993, Brazil Rev. 3, United this provision to the Department’s available from publicly available Nations, 1994. discretion. published data from Brazil, the For natural gas, we relied on public In determining whether there is a surrogate country which we are using to information reported in the Brazilian reasonable basis to believe or suspect 31962 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices that an importer knew or should have known that there was likely to be posting of a bond equal to the weighted- known that the exporter was selling the material injury by means of sales of the average amount by which the normal plate at less than fair value, the subject merchandise at less than fair value exceeds the EP, as indicated Department normally considers margins value. below. These suspension of liquidation of 15 percent or more sufficient to To determine whether imports were instructions will remain in effect until impute knowledge of dumping for massive over a relatively short time further notice. constructed export price (CEP) sales, period, the Department typically The weighted-average dumping and margins of 25 percent or more for compares the import volume of the margins are as follows: export price (EP) sales. See, e.g., subject merchandise for the three Preliminary Critical Circumstances months immediately preceding and Weighted- average Determination: Honey from the People’s following the initiation of the Manufacturer/producer/exporter margin per- Republic of China (PRC), 60 FR 29824 proceeding. See 19 CFR 353.16(g). centage (June 6, 1995) (Honey). Since the Pursuant to 19 CFR 353.16(f)(2), the company specific margins for EP sales Department will consider an increase of Azovstal ...... 99.59 in our preliminary determination for 15 percent or more in the imports of the Ilyich ...... 176.76 carbon steel plate are greater than 25 subject merchandise over the relevant Ukraine-wide rate ...... 237.91 percent for Azovstal and Ilyich, we have period to be massive. imputed knowledge of dumping. As noted, imports of the subject Ukraine-Wide Rate In determining whether there is a merchandise increased 45 percent A Ukraine-wide rate has been reasonable basis to believe or suspect during the relevant period, and thus we assigned to certain cut-to-length carbon that an importer knew or should have determine that imports have been steel plate based on the average margin known that there was likely to be massive. contained in the petition, as amended material injury by reason of dumped Thus, because we determine that by the Department. The Ukraine-wide imports, the Department normally will there is a reasonable basis to believe or rate applies to all entries of subject look to the preliminary injury suspect that the importer knew or merchandise except for entries from determination of the ITC. If the ITC should have known that Ukrainian exporters/producers that are identified finds a reasonable indication of present exporters were selling the subject individually above. material injury to the relevant U.S. merchandise at less than its fair value industry, the Department will determine and that there was likely to be material ITC Notification that a reasonable basis exists to impute injury by reason of such sales, and that In accordance with section 733(f) of importer knowledge that there was there have been massive imports of the the Act, we have notified the ITC of our likely to be material injury by reason of subject merchandise over a relatively determination. If our final dumped imports during the critical short time period, we preliminarily determination is affirmative, the ITC circumstances period—the 90-day determine that critical circumstances will determine before the later of 120 period beginning with the initiation of exist for Avostal and Ilyich. days after the date of this preliminary the investigation (see 19 CFR 353.16(g)). For companies subject to the Ukraine- determination or 45 days after our final If, as in this case, the ITC preliminarily wide rate (i.e., companies which did not determination whether the domestic finds threat of material injury (See Cut- respond to the Department’s industry in the United States is to-Length Carbon Steel Plate from questionnaire), we are imputing materially injured, or threatened with China, Russia, South Africa, and knowledge based on the Ukraine-wide material injury, by reasons of imports, Ukraine, U.S. International Trade rate, and determine, based on facts or sales (or the likelihood of sales) for Commission, December 1996), the available, that there were massive importation, of the subject merchandise. Department will also consider the extent imports of certain cut-to-length carbon Public Comment of the increase in the volume of imports steel plate by companies that did not of the subject merchandise during the respond to the Department’s In accordance with 19 CFR 353.38 critical circumstances period and the questionnaire. Therefore, we (1996), case briefs or other written magnitude of the margins in preliminarily determine that critical comments in at least ten copies must be determining whether a reasonable basis circumstances exist with regard to these submitted to the Assistant Secretary for exists to impute knowledge that companies. Import Administration no later than 50 material injury was likely. We find that critical circumstances days after the publication of this In this case, imports of Ukrainian exist for cut-to-length carbon steel plate preliminary determination, and rebuttal plate increased 45 percent in the three sales by all Ukrainian exporters. briefs, no later than five days after the months following the initiation of the filing of case briefs. A list of authorities investigation when compared to the Verification used and a summary of arguments made three months immediately preceding As provided in section 782(i) of the in the briefs should accompany these initiation, or three times the level of Act, we will verify the information used briefs. Such summary should be limited increase needed to find ‘‘massive in making our final determination. to five pages total, including footnotes. imports’’ during the same period (see We will hold a public hearing, if below). Furthermore, we have Suspension of Liquidation requested, to afford interested parties an preliminarily found margins of 99.59 In accordance with section 733(d) of opportunity to comment on arguments percent for Azovstal and 176.76 percent the Act, we are directing the Customs raised in case or rebuttal briefs. The for Ilyich. Service to suspend liquidation of all hearing will be held at the U.S. Based on the ITC’s preliminary imports of subject from Ukraine, that are Department of Commerce, 14th Street determination of threat of injury, the entered, or withdrawn from warehouse, and Constitution Avenue, N.W., increase in imports noted above, and the for consumption on or after the date Washington, DC 20230, time, date, and high preliminary margins, the ninety days prior to the date of room to be determined. Parties should Department determines that there is a publication of this notice in the Federal confirm by telephone the time, date, and reasonable basis to believe or suspect Register. We will instruct Customs place of the hearing 48 hours before the that the importer knew or should have Service to require a cash deposit or the scheduled time. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31963

Interested parties who wish to request Preliminary Determination 1997, arguing that Highveld failed to a hearing, or to participate if one is We determine preliminarily that demonstrate that proper grounds exist requested, must submit a written certain cut-to-length carbon steel plate for the Department to consider the request to the Assistant Secretary for from South Africa is being, or is likely fluctuation in the rand during the POI. Import Administration, U.S. Department to be, sold in the United States at less On March 5, 1997, Highveld responded of Commerce, Room 1870, within ten than fair value (LTFV), as provided in to petitioners’ rebuttal. (See currency days of the publication of this notice. section 733 of the Act. The estimated conversion section below.) On March 28, 1997, we postponed the Requests should contain: (1) The party’s margins are shown in the ‘‘Suspension name, address, and telephone number; preliminary determination until not of Liquidation’’ section of this notice. (2) the number of participants; and (3) later than May 14, 1997 (62 FR 14887), a list of the issues to be discussed. In Case History because we determined this accordance with 19 CFR Since the initiation of this investigation to be extraordinarily complicated within the meaning of 353.38(b)(1996), oral presentations will investigation (61 FR 64051, December 3, section 733(c)(1)(B) of the Act. be limited to issues raised in the briefs. 1996), the following events have If this investigation proceeds normally, On March 31, 1997, petitioners occurred: alleged that both Highveld and Iscor had we will make our final determination by On December 19, 1996, the United made sales in the home market at prices August 18, 1997. States International Trade Commission This determination is published that were below the cost of production (ITC) issued an affirmative preliminary pursuant to section 777(i) of the Act. (COP), pursuant to section 773(b) of the determination in this case (see ITC Dated: June 3, 1997. Act. On April 9, 1997, the Department Investigations Nos. 731–TA–753–756). requested that petitioners provide Robert S. LaRussa, The ITC found that there is a reasonable additional information regarding their Acting Assistant Secretary for Import indication that an industry in the allegation on Iscor. The petitioners Administration. United States is threatened with supplied the requested supplemental [FR Doc. 97–15291 Filed 6–10–97; 8:45 am] material injury by reason of imports information on April 11, 1997. After BILLING CODE 3510±DS±P from South Africa of certain cut-to- analyzing petitioners’ allegations, the length carbon steel plate. Department determined that there were On December 20, 1996, the DEPARTMENT OF COMMERCE reasonable grounds to believe or suspect Department issued its antidumping that Highveld and Iscor had made home questionnaires to the following International Trade Administration market sales at prices below the cost of companies identified by petitioners as production. On May 1, 1997, the [A±794±804] possible exporters of the subject Department initiated a COP merchandise: Iscor Limited (Iscor) and investigation of Highveld. On May 7, Notice of Preliminary Determination of Highveld Steel and Vanadium 1997, the Department initiated a COP Sales at Less Than Fair Value and Corporation Limited (Highveld). The investigation of Iscor. (See Postponement of Final Determination; questionnaire is divided into four memorandum from Linda Ludwig to Certain Cut-to-Length Carbon Steel sections. Section A requests general Richard O. Weible dated May 1, 1997, Plate from South Africa information concerning a company’s and May 7, 1997, respectively, on file in AGENCY: Import Administration, corporate structure and business the Central Records Unit, Room B–099 International Trade Administration, practices, the merchandise under of the Department of Commerce.) Department of Commerce. investigation that it sells, and the sales As a result of the Department’s of the merchandise in all of its markets. ACTION: Notice of preliminary initiation of cost of production determination of sales at less than fair Sections B and C request home market investigations, the Department value and postponement of final sales listings and U.S. sales listings, requested, on May 1, 1997 and May 7, determination. respectively. Section D requests 1997, respectively, that Highveld and information on the cost of production Iscor answer Section D of the original EFFECTIVE DATE: June 11, 1997. (COP) of the foreign like product and questionnaire. The Department FOR FURTHER INFORMATION CONTACT: constructed value (CV) of the subject extended Highveld’s and Iscor’s time to Charles Rast, or Robin Gray, Import merchandise. respond to Section D of the Administration, International Trade The Department conducted questionnaire to May 30, 1997 and June Administration, U.S. Department of questionnaire presentations at Iscor on 4, 1997, respectively. Accordingly, we Commerce, 14th Street and Constitution January 21–22, 1997, and at Highveld on are not able to include a COP analysis Avenue, N.W., Washington, D.C. 20230; January 23–24, 1997. in our preliminary determination. We telephone: (202) 482–5811, or (202) In February 1997, Iscor and Highveld will analyze the respondents’ COP and 482–0196, respectively. submitted responses to sections A, B, CV data for our final determination. and C of the questionnaire. We issued On April 15, 1997, petitioners The Applicable Statute and Regulations supplemental questionnaires to the submitted a request that the scope of Unless otherwise indicated, all respondents in March 1997, and their petitions be amended to include citations to the statute are references to received supplemental questionnaire three items—plate in coil; plate made to the provisions effective January 1, 1995, responses from both companies in April carbon plate specifications regardless of the effective date of the amendments 1997. alloy content; and plate sold to nominal made to the Tariff Act of 1930 (the Act) On February 12, 1997, Highveld plate thicknesses whose actual by the Uruguay Rounds Agreements Act requested that the Department use thickness is slightly less than the (URAA). In addition, unless otherwise actual unadjusted daily exchange rates thickness of plate but within specified indicated, all citations to the when performing currency conversions thickness tolerances. With respect to Department’s regulations are in because of depreciation of the South plate in coil, petitioners maintain that reference to the regulations, codified at African rand relative to the U.S. dollar this product has essentially the same 19 CFR part 353, as they existed on during the POI. Petitioners objected to physical characteristics and end uses as April 1, 1996. Highveld’s request on February 24, cut-to-length plate. Petitioners further 31964 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices claim that a post-initiation shift has Determination of Sales at Less Than Fair (CEP), where appropriate, to the Normal occurred in the pattern of trade from Value: Large Newspaper Printing Value (NV), as described in the ‘‘Export cut-to-length plate to plate in coil form, Presses and Components Thereof, Price’’ and ‘‘Normal Value’’ sections of and that such a development indicates Whether Assembled or Unassembled this notice. In accordance with section that any eventual order on cut-to-length from Japan, 61 FR 8029 (March 1, 1996). 777A(d)(1)(A)(i) of the Act, we plate will be susceptible to Scope of the Investigation compared the weighted average EPs or circumvention. Petitioners submitted CEPs to weighted-average NVs during additional information on May 9, 1997. The products covered by this the POI. In determining averaging Respondents submitted extensive investigation are hot-rolled iron and groups for comparison purposes, we rebuttal comments on April 25, 1997, non-alloy steel universal mill plates considered the appropriateness of such and May 30, 1997. (i.e., flat-rolled products rolled on four factors as physical characteristics and Because of the very recent submission faces or in a closed box pass, of a width level of trade. of arguments on these complex and exceeding 150 mm but not exceeding technical subjects, we were unable to 1250 mm and of a thickness of not less (i) Physical Characteristics than 4 mm, not in coils and without fully analyze all of the relevant In accordance with section 771(16) of patterns in relief), of rectangular shape, information on the record prior to this the Act, we considered all products neither clad, plated nor coated with preliminary determination. In order to covered by the description in the metal, whether or not painted, fully examine petitioners’ claims, we ‘‘Scope of Investigation’’ section of this varnished, or coated with plastics or intend to carefully examine all evidence notice, produced in South Africa by the and argument on the record regarding other nonmetallic substances; and respondents and sold in the home this matter and issue a decision as soon certain iron and non-alloy steel flat- market during the POI, to be foreign like as possible. rolled products not in coils, of On April 30, 1997 (62 FR 23433) we rectangular shape, hot-rolled, neither products for purposes of determining further postponed the preliminary clad, plated, nor coated with metal, appropriate product comparisons to determination until not later than June whether or not painted, varnished, or U.S. sales. Where there were no sales of 3, 1997. coated with plastics or other identical merchandise in the home On May 12, 1997, petitioners nonmetallic substances, 4.75 mm or market to compare to U.S. sales, we provided comments on deficiencies in more in thickness and of a width which compared U.S. sales to the most similar Iscor’s response to the Department’s exceeds 150 mm and measures at least foreign like product on the basis of the questionnaire, including Iscor’s failure twice the thickness. Included as subject characteristics listed in the to provide several expense items on a merchandise in this petition are flat- Department’s antidumping transaction specific basis. The rolled products of nonrectangular cross- questionnaire. In making the product Department has reviewed the allocation section where such cross-section is comparisons, we relied on the following methodology reported by Iscor for these achieved subsequent to the rolling criteria (listed in order of preference): items and has decided that for purposes process (i.e., products which have been paint, quality, specification and/or of the preliminary determination we ‘‘worked after rolling’’)—for example, grade, heat treatments, standard will allow the reported expense and cost products which have been bevelled or thickness, standard width, whether or data. However, at verification the rounded at the edges. This merchandise not checkered, and descaling. It is our Department will analyze the reported is currently classified in the practice where sales were made in the allocation methodology and examine Harmonized Tariff Schedule of the home market on a different weight basis Iscor’s statement that it is unable to United States (HTS) under item from the U.S. market (theoretical versus provide expense and cost data on a numbers 7208.40.3030, 7208.40.3060, actual weight), to convert all quantities transaction specific basis. 7208.51.0030, 7208.51.0045, to the same weight basis, using the 7208.51.0060, 7208.52.0000, conversion factors supplied by the Postponement of Final Determination respondents, before making our fair- and Extension of Provisional Measures 7208.53.0000, 7208.90.0000, 7210.70.3000, 7210.90.9000, value comparisons. (See Final Pursuant to section 735(a)(2)(A) of the 7211.13.0000, 7211.14.0030, Determination of Sales at Less Than Fair Act, on May 14, 1997, Highveld and 7211.14.0045, 7211.90.0000, Value: Cut-to-Length Carbon Steel Plate Iscor requested that in the event of an 7212.40.1000, 7212.40.5000, from Finland, 58 FR 37122 (July 9, affirmative preliminary determination 7212.50.0000. Although the HTS 1993) and Final Determination of Sales in this investigation, the Department subheadings are provided for at Less Than Fair Value: Certain Welded postpone its final determination. Our convenience and customs purposes, our Stainless Steel Pipes from Taiwan, 57 preliminary determination is written description of the scope of this FR 53705 (November 12, 1992.)) For affirmative, and Highveld and Iscor investigation is dispositive. Iscor, we noted inexplicable account for a significant proportion of discrepancies between the data reported exports of the subject merchandise. In Period of Investigation in the quantity and the converted addition, we are not aware of the The period of investigation (POI) is quantity fields. Therefore, for the existence of any compelling reasons for October 1, 1995, through September 30, preliminary results the converted denying this request. As a result we are 1996. The period of this investigation quantities provided by Iscor were granting the postponement request, in comprises each exporter’s four most disregarded. Consequently, we accordance with section 735(a)(2)(A) of recent fiscal quarters prior to the filing conducted our analysis based on data the Act. Therefore, the final of the petition. reported in the quantity field, which determination will be due not later than contains weights based on either actual 135 days after the publication of this Fair Value Comparisons or theoretical weight. We are requesting preliminary determination. (See To determine whether sales of the additional information from Iscor to memorandum from Joseph A. Spetrini subject merchandise by respondents to clarify the conversion weights. We will to Robert S. LaRussa dated May 28, the United States were made at less than look at this issue more closely at 1997.) Suspension of liquidation will be fair value, we compared the Export verification and invite parties to extended accordingly. See Preliminary Price (EP) or Constructed Export Price comment on it. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31965

(ii) Level of trade establish that a claimed level of trade is The CEP offset is not automatic each To the extent practicable, we valid. An analysis of selling functions time export price is constructed. It is determine normal value for sales at the substantiates or invalidates claimed only applicable when the level of trade same level of trade as the U.S. sales customer classifications based on levels of the affiliated importer is less (either EP or CEP). When there are no of trade. If the claimed levels are advanced than the level of trade of the sales at the same level of trade we different, so should be the selling home market purchaser, and the compare U.S. sales to home market (or, functions performed in selling to those available data do not provide an if appropriate third country) sales at a levels. Conversely, if levels of trade are appropriate basis for determining different level of trade. For both EP and nominally the same, so should be the whether there is an effect on price CEP, the relevant transaction for level of selling functions performed. Different comparability. Iscor did not claim a difference in trade is the sale from the exporter to the levels of trade necessarily involve level of trade between its U.S. (EP) and importer. While the starting price for differences in selling functions, but home market sales. Its response CEP is that of a subsequent resale to an differences in selling functions, even indicates that there are significant unaffiliated buyer, the construction of substantial ones, are not alone sufficient differences between the selling the EP results in a price that would have to establish a difference in the level of functions it performs for sales to its been charged if the importer had not trade. A difference in level of trade is unaffiliated U.S. customers, which are been affiliated. The CEP is the price characterized by purchasers at different places in the chain of distribution and resellers, and either home market local obtained after removing from the first sellers performing qualitatively or merchants or end-users. Iscor’s sales to resale to an independent U.S. customer quantitatively different functions in U.S. customers appear to be at a profit and expenses deducted under selling to them. different stage in the marketing process section 772(d) of the Act. These When we compare home market sales from either local merchants or end-users expenses represent activities undertaken at a different level of trade than U.S. in the home market. However, we are by, or on behalf of, the affiliated sales, we make a level-of-trade unable to determine if this difference in importer. The deduction of expenses adjustment if the difference in level of level of trade affects price under section 772(d) will normally yield trade affects price comparability. Any comparability, as all of Iscor’s home a different level of trade for the CEP effect on price comparability is market sales are at the same level of than for the later resale which is used determined by examining sales at trade. For these preliminary results, we for the starting price. Movement different levels of trade in a single have treated all of Iscor’s home market charges, and duties and taxes deducted market, the home market. Any price sales as being at a single level of trade under section 772(c) of the Act do not effect must be manifested in a pattern of and we have made no level of trade represent activities of the affiliated consistent price differences between adjustment when matching its U.S. sales importer and are not removed as they do home market sales used for comparison to these home market sales. We will not affect the level of trade. The NV and sales at the equivalent level of trade look at this issue more closely at level of trade is that of the starting price of the export transaction. We calculate verification and invite parties to of sales in the home market. When NV the difference in the average of the net comment on it. is based on constructed value, the level prices of the same models sold at Highveld claimed sales were made in of trade is that of the sales from which different levels of trade. Net prices are the home market at two different levels we derive SG&A and profit. used because any difference will be due of trade—large-scale service centers/ To determine whether home market to differences in level of trade rather distributors and smaller service centers/ sales are at a different level of trade than than other factors. The average distributors. Highveld claims that the U.S. sales, we examine whether the difference in net prices is used to adjust difference between these levels is that home market sales are at different stages the NV when it is different from the additional time is spent servicing the in the marketing process than the U.S. level of trade of the export sale. If there larger service centers and that they sales. The marketing process in both is a pattern of no price differences, then receive preferential treatment. Highveld markets begins with goods being sold by the difference in level of trade does not claims that all of its U.S. sales were the producer and extends to the sale to have a price effect, and no adjustment made at one level of trade. That is, the final user. The final user could be is necessary. Highveld’s CEP sales, after making the an individual consumer or an industrial In terms of granting a CEP offset, the applicable adjustments, are at the same user, but the marketing process for all statute also provides an adjustment to level of trade as its EP sales. goods starts with a producer and ends NV if it is compared to U.S. sales at a Based on our analysis of the selling with a user. The chain of distribution different level of trade, provided the NV functions performed by Highveld, we between the two may have many or few level is more remote from the factory, found that a single level of trade exists links, and somewhere in this process and we are unable to determine whether in each market. We found that with the respondent’s sales occur. In the there is or is not a price effect of respect to the home market, large-scale United States this is generally to an different levels of trade in the home service centers/distributors and smaller importer, whether independent or market. This latter situation can occur service centers/distributors are not at affiliated. We review and compare the where there is no home market level of different stages in the marketing distribution systems in the home market trade equivalent to the U.S. sales level, process. Also, there do not appear to be and U.S. export markets, including or where there is an equivalent home any significant differences in selling selling functions, class of customer, and market level, but the data are functions between these two groups of the extent and level of selling expenses insufficient to support a conclusion on customers, although Highveld may for alleged level of trade. Customer price effect. The CEP offset is the lower provide certain functions to large-scale categories such as distributor, original of the two following: service centers/distributors at a higher equipment manufacturer (OEM), or • The indirect selling expenses on the intensity. wholesaler are useful as they are home market sale; or We then compared selling functions commonly used to describe levels of • The indirect selling expenses in the U.S. market and in the home trade by respondents, but without deducted from the starting price used to market. There appear to be several substantiation, are insufficient to calculate CEP. differences between the selling 31966 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices functions performed for sales to U.S. fluctuation. We saw no reason in this quantity of the foreign like product sold and home market customers, notably case to deviate from established in the exporting country was sufficient with respect to just-in-time delivery, practice, since South Africa is not a to permit a proper comparison with the advertising, market research and high-inflation economy, and the decline sales of the subject merchandise to the product development, which are in the rand was not so precipitous and United States, pursuant to section 773(a) provided in the home market but not in large as to reasonably preclude the of the Act. Therefore, in accordance the United States. However, we are occurrence of fluctuations. with section 773(a)(1)(B)(i) of the Act, unsure as to whether U.S. and home Export Price we based NV on the price which the market sales—both of which include foreign like product was first sold for sales to large resellers—are at different We calculated the price of United consumption in the home market, in the States sales based on EP, in accordance stages in the marketing process. Nor is usual commercial quantities and in the with section 772(a) of the Act, when the there sufficient information on the ordinary course of trade. We excluded subject merchandise was sold to record to determine the significance of from our analysis a limited number of unaffiliated purchasers in the United the noted differences in selling reported home market sales made by functions. For these preliminary results States prior to the date of importation. In certain instances, however, we Iscor to a member country of the we find, therefore, that sales in the Southern African Customs Union, home market and in the U.S. market are determined that CEP as defined in which we determined were not home at the same level of trade and that no section 772(b) of the Act, was a more market sales. level of trade adjustment is warranted. appropriate basis for the price of the As there is no difference in level of United States sales. These instances Where appropriate, we deducted trade, Highveld does not qualify for a involved sales made by Highveld to its rebates, discounts, credit, inland freight, CEP offset. Therefore, we made no U.S. affiliate, Newco Steel Trading pre-sale warehousing, and packing. We adjustment. We will look at this issue (NST), which negotiates prices and also made adjustments, where more closely at verification and invite quantities with its U.S. customers, and appropriate, for home-market indirect parties to comment on it. sells the subject merchandise to the U.S. selling expenses to offset U.S. customers. Newco Steel Trading commissions in EP and CEP (iii) Currency Conversion company operates as Highveld’s comparisons. In comparisons to EP and For purposes of the preliminary exclusive distributor for sales of the CEP sales, we increased NV by U.S. determination, we made currency subject merchandise in the United packing costs in accordance with conversions using the official daily States, and as such, undertakes selling section 773(a)(6)(A) of the Act. We also exchange rate in effect on the date of the activities exceeding those of processing made adjustments to NV for physical U.S. sale. These exchange rates were sales-related documentation. differences in merchandise (‘‘diffmer’’). derived from actual daily exchange rates Specifically, NST negotiates prices for The Department notes that it has certain certified by the Federal Reserve Bank of particular products with its customers questions regarding the diffmer New York. (See Change in Policy on a case-by-case basis, pays Highveld adjustments calculated from Highveld’s Regarding Currency Conversions, 61 FR for the product order based on a price reported data. In particular, significantly 9434 (March 8, 1996.)) Section 773A(a) agreement, and takes title to the different diffmer adjustments were of the Act directs the Department to use merchandise which is physically calculated for pairs of U.S. and home a daily exchange rate in order to convert transferred to U.S. customers by market product codes, which apparently foreign currencies into U.S. dollars, common carriers. unless the daily rate involves a For both respondents, we calculated differed only by the same difference in ‘‘fluctuation.’’ In accordance with the EP based on packed prices to specification. We will look further at Department’s practice, we have unaffiliated customers in the United this issue at verification and invite determined that a fluctuation exists States. Where appropriate, we made comments from interested parties. when the daily exchange rate differs deductions from the starting price for Verification from a benchmark by 2.25 percent. (See, foreign inland freight, international 61 FR at 9435.) The benchmark is freight, foreign brokerage and handling, As provided in section 782(i) of the defined as the rolling average of rates for marine insurance, early payment Act, we will verify the information used the past 40 business days. When we discounts, pre-sale warehousing in making our final determination. determine that a fluctuation exists, we expenses, and U.S. Customs duties. substitute the benchmark for the daily We calculated CEP based on packed Suspension of Liquidation rate, in accordance with established prices to unaffiliated customers in the In accordance with section 733(d) of practice. Further, section 773A(b) of the United States. Where appropriate, we the Act, we are directing the Customs Act directs the Department to allow a made deductions for the starting price Service to suspend liquidation of all 60-day adjustment period when a for the foreign inland freight, foreign imports of subject merchandise, entered, currency has undergone a sustained brokerage and handling, international or withdrawn from warehouse, for movement. A sustained movement has freight, marine insurance, U.S. Customs consumption on or after the date of occurred when the weekly average of duties, commissions, inventory carrying publication of this notice in the Federal actual daily rates exceeds the weekly expenses, credit expenses, and indirect Register. We will instruct Customs average of benchmark rates by more selling expenses. Finally, we made an Service to require a cash deposit or the than five percent for eight consecutive adjustment for the amount of profit posting of a bond equal to the weighted- weeks. Such an adjustment period is allocated to these expenses, in average amount by which the NV required only when a foreign currency accordance with section 772(d)(3) of the exceeds EP or CEP, as indicated in the is appreciating against the U.S. dollar Act. and was not applicable in this case. chart below. These suspension of In this investigation, there were Normal Value liquidation instructions will remain in certain days of the POI for which we Based on a comparison of the effect until further notice. substituted the benchmark for the daily aggregate quantity of home-market and The weighted-average dumping rate because the daily rate involved a U.S. sales, we determined that the margins are as follows: Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31967

Weighted- Dated: June 3, 1997. Investigations Nos. 731–TA–753–756). Manufacturer/producer/exporter average Robert S. LaRussa, The ITC found that there is a reasonable margin per- Acting Assistant Secretary for Import indication that an industry in the centage Administration. United States is threatened with Highveld ...... 15.77 [FR Doc. 97–15292 Filed 6–10–97; 8:45 am] material injury by reason of imports Iscor ...... 31.45 BILLING CODE 3510±DS±P from the Russian Federation of certain All Other ...... 23.77 cut-to-length carbon steel plate. The Department issued its ITC Notification DEPARTMENT OF COMMERCE antidumping questionnaires to the Russian Embassy on December 20, 1996, In accordance with section 733(f) of International Trade Administration and requested the Embassy to forward the Act, we have notified the ITC of our [A±821±808] the documents to all Russian producers/ determination. If our final exporters of certain cut-to-length carbon determination is affirmative, the ITC Preliminary Determination of Sales at steel plate, as well as to manufacturers will determine before the later of 120 Less Than Fair Value; Certain Cut-to- who produced the subject merchandise days after the date of this preliminary Length Carbon Steel Plate From the for companies who were engaged in determination or 45 days after our final Russian Federation exporting subject merchandise to the determination whether these imports United States during the period of are materially injuring, or threatened AGENCY: Import Administration, investigation. We requested the with material injury, by reason of International Trade Administration, Embassy to inform these companies that imports, or sales (or the likelihood of Department of Commerce. they must respond by the due dates. We sales) for importation, of the subject ACTION: Notice of preliminary also sent courtesy copies to the merchandise. determination of sales at less than fair companies whose names and complete Public Comment value. addresses had been identified in the petition. In accordance with 19 CFR 353.38, EFFECTIVE DATE: June 11, 1997. On January 8, 1997, the Department case briefs in at least ten copies must be FOR FURTHER INFORMATION CONTACT: conducted a questionnaire presentation submitted to the Assistant Secretary for Nithya Nagarajan, Eugenia Chu, or Yury in the Russian Federation. Attending the Import Administration no later than Beyzarov, Import Administration, presentation were officials from the Friday, September 5, 1997, and rebuttal International Trade Administration, Russian Ministry of Foreign Economic briefs, no later than Friday, September U.S. Department of Commerce, 14th Relations and potential producers/ 12, 1997. A list of authorities used and Street and Constitution Avenue, N.W., exporters of certain cut-to-length carbon a summary of arguments made in the Washington, D.C. 20230; telephone: steel plate. briefs should accompany these briefs. (202) 482–0193, (202) 482–3964, or On January 10, 1997, Geneva Steel Such summary should be limited to five (202) 482–2243, respectively. Company and Gulf States Steel pages total, including footnotes. We will Company (petitioners), alleged that hold a public hearing, if requested, to The Applicable Statute critical circumstances exist with respect afford interested parties an opportunity Unless otherwise indicated, all to imports of certain cut-to-length to comment on arguments made in case citations to the statute are references to carbon steel plate from the Russian or rebuttal briefs. At this time, the the provisions effective January 1, 1995, Federation. This issue is addressed in hearing is scheduled for Friday, the effective date of the amendments the ‘‘Preliminary Determination of September 19, 1997, time and place to made to the Tariff Act of 1930 (the Act) Critical Circumstances’’ section of this be determined, at the U.S. Department by the Uruguay Rounds Agreements Act notice. of Commerce, 14th Street and (URAA). In addition, unless otherwise On February 6, 1997, the Department Constitution Avenue, N.W., indicated, all citations to the provided interested parties with the Washington, DC 20230. Parties should Department’s regulations are to the opportunity to submit published, confirm by telephone the time, date, and current regulations, as codified at 19 publicly available information for the place of the hearing 48 hours before the CFR part 353 (April 1, 1996). Department to consider when valuing scheduled time. the factors of production and for Interested parties who wish to request Preliminary Determination surrogate country selection. We received a hearing, or to participate if one is We determine preliminarily that comments from interested parties at the requested, must submit a written certain cut-to-length carbon steel plate end of February 1997. request to the Assistant Secretary for from the Russian Federation is being, or In January and February 1997, one Import Administration, U.S. Department is likely to be, sold in the United States Russian company, JSC Severstal of Commerce, Room 1870, within ten at less than fair value (LTFV), as (Severstal), submitted responses to days of the publication of this notice. provided in section 733 of the Act. The sections A, C, and D of the Requests should contain: (1) The party’s estimated margins are shown in the questionnaire. Severstal is a Russian name, address, and telephone number; ‘‘Suspension of Liquidation’’ section of exporter of subject merchandise. We (2) the number of participants; and (3) this notice. issued supplemental questionnaires to a list of the issues to be discussed. In this respondent company on March 7, accordance with 19 CFR 353.38(b) oral Case History 1997 and received completed responses presentations will be limited to issues Since the initiation of this on April 4, and 11, 1997. raised in the briefs. If this investigation investigation (61 FR 64051, December 3, Severstal reported that it sold subject proceeds normally, we will make our 1996), the following events have merchandise through unrelated trading final determination by no later than 135 occurred: companies at the port of export in days after the publication of this notice On December 19, 1996, the United Russia or the Baltic states. In light of in the Federal Register. States International Trade Commission this fact, the Department concluded that This determination is published (ITC) issued an affirmative preliminary clarification was required as to whether pursuant to section 733(f) of the Act. determination in this case (see ITC these resellers sold additional subject 31968 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices merchandise (unreported by the (i.e., flat-rolled products rolled on four Federation, 60 FR 438 (January 4, respondents) to the United States. faces or in a closed box pass, of a width 1995)). A designation as an NME Therefore, in March 1997, we also exceeding 150 mm but not exceeding remains in effect until it is revoked by issued trading company questionnaires 1250 mm and of a thickness of not less the Department (see section 771(18)(C) to Severstal’s resellers. However, we than 4 mm, not in coils and without of the Act). Therefore, for this received no responses. patterns in relief), of rectangular shape, preliminary determination, the Also in March, in response to the neither clad, plated nor coated with Department will continue to treat the Russian government’s comments on metal, whether or not painted, Russian Federation as an NME. Russia’s nonmarket economy (NME) varnished, or coated with plastics or On January 9, 1997 the Russian status, the Department issued the other nonmetallic substances; and Federation submitted a filing, on the Russian government a questionnaire to certain iron and non-alloy steel flat- record, requesting market economy clarify whether the Russian Federation’s rolled products not in coils, of status. The filing consisted of a letter NME status should be revoked. rectangular shape, hot-rolled, neither and several Russian laws. On March 25, However, on March 28, 1997, the clad, plated, nor coated with metal, 1997, the Department drafted a Russian Federation informed the whether or not painted, varnished, or questionnaire addressed to the Department that it will not be seeking coated with plastics or other Department of the Ministry for Foreign market-economy status in this nonmetallic substances, 4.75 mm or Economic Relations of the Russian proceeding. This issue is addressed in more in thickness and of a width which Federation requesting additional the ‘‘Nonmarket Economy Country exceeds 150 mm and measures at least information for Market Economy Status. Status’’ section of this notice. twice the thickness. Included as subject On April 22, 1997, the Department Except for Severstal, none of the other merchandise in this petition are flat- contacted the Russian embassy via companies served with a questionnaire rolled products of nonrectangular cross- telephone regarding the Department’s responded to the Department’s original section where such cross-section is questionnaire on market economy questionnaire. achieved subsequent to the rolling status. The Embassy conveyed to On April 15, 1997, petitioners process (i.e., products which have been Department personnel that the Russian submitted a request that the scope of ‘‘worked after rolling’’)—for example, Federation will not be seeking market their petitions be amended to include products which have been bevelled or economy status in this proceeding. three items—plate in coil; plate made to rounded at the edges. This merchandise Thus, the Department will continue to carbon plate specifications regardless of is currently classified in the treat the Russian Federation as an NME. alloy content; and plate sold to nominal Harmonized Tariff Schedule of the Surrogate Country plate thicknesses whose actual United States (HTS) under item thickness is slightly less than the numbers 7208.40.3030, 7208.40.3060, When the Department is investigating thickness of plate but within specified 7208.51.0030, 7208.51.0045, imports from an NME, section 773(c) of thickness tolerances. With respect to 7208.51.0060, 7208.52.0000, the Act directs the Department in most plate in coil, petitioners maintain that 7208.53.0000, 7208.90.0000, circumstances to base normal value this product has essentially the same 7210.70.3000, 7210.90.9000, (NV) on the NME producer’s factors of physical characteristics and end uses as 7211.13.0000, 7211.14.0030, production, valued in a surrogate cut-to-length plate. Petitioners further 7211.14.0045, 7211.90.0000, market-economy country or countries claim that a post-initiation shift has 7212.40.1000, 7212.40.5000, considered appropriate by the occurred in the pattern of trade from 7212.50.0000. Although the HTS Department. In accordance with section cut-to-length plate to plate in coil form, subheadings are provided for 773(c)(4), the Department, in valuing the and that such a development indicates convenience and customs purposes, our factors of production, shall utilize, to that any eventual order on cut-to-length written description of the scope of this the extent possible, the prices or costs plate will be susceptible to investigation is dispositive. of factors of production in one or more circumvention. Petitioners submitted market-economy countries that are Period of Investigation additional information on May 9, 1997. comparable in terms of economic Respondents submitted extensive The period of investigation (POI) is development to the NME country and rebuttal comments on April 25, 1997, April 1, 1996, through September 30, are significant producers of comparable and May 30, 1997. 1996. merchandise. The sources of individual factor prices are discussed under the NV Because of the very recent submission Nonmarket Economy Country Status of arguments on these complex and section below. technical subjects, we were unable to The Department has treated the The Department has determined that fully analyze all of the relevant Russian Federation as a nonmarket Tunisia, Peru, Poland, Venezuela, information on the record prior to this economy country (NME) in all past Brazil, South Africa, and Turkey are preliminary determination. In order to antidumping investigations and countries comparable to the Russian fully examine petitioners’ claims, we administrative reviews (see, e.g., Federation in terms of overall economic intend to carefully examine all evidence Titanium Sponge from the Russian development. See Policy Memorandum, and argument on the record regarding Federation: Preliminary Results of dated January 29, 1997. this matter and issue a decision as soon Antidumping Administrative Review, According to the available as possible. 62 FR 25920 (May 12, 1997); Notice of information on the record, we have On April 30, 1997 (62 FR 23433) we Final Determination of Sale at Less determined that Brazil is an appropriate further postponed the preliminary Than Fair Value: Pure Magnesium and surrogate because it is at a comparable determination until not later than June Alloy Magnesium from the Russian level of economic development and is a 3, 1997. Federation, 60 FR 16440 (March 30, significant producer of comparable 1995); Notice of Preliminary merchandise. Furthermore, there is a Scope of the Investigation Determination of Sales at Less Than Fair wide array of publicly available The products covered by this Value and Postponement of the Final information for Brazil. Accordingly, we investigation are hot-rolled iron and Determination: Ferrovanadium and have calculated NV using Brazilian non-alloy steel universal mill plates Nitridid Vanadium from the Russian prices to value the Russian producers’ Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31969 factors of production, when available jure government control. See Separate Republic of China, 61 FR 19026 (April and where appropriate. We have Rates Memorandum, dated June 3, 1997. 30, 1996). obtained and relied upon public This Russia-wide antidumping rate is 2. Absence of De Facto Control information wherever possible. based on adverse facts available. Section The Department typically considers 776(a)(2) of the Act provides that ‘‘if an Separate Rates four factors in evaluating whether each interested party or any other person (A) The Department presumes that a respondent is subject to de facto withholds information that has been single dumping margin is appropriate governmental control of its export requested by the administering for all exporters in a non market functions: (1) Whether the export prices authority; (B) fails to provide such economy country. See Final (‘‘EP’’) are set by or subject to the information by the deadlines for the Determination of Sales at Less Than Fair approval of a governmental authority; submission of the information or in the Value: Silicon Carbide from the People’s (2) whether the respondent has form and manner requested, subject to Republic of China, 59 FR 22585 (May 2, authority to negotiate and sign contracts subsections (c)(1) and (e) of section 782; 1994) (Silicon Carbide). The Department and other agreements; (3) whether the (C) significantly impedes a proceeding may, however, consider requests for a respondent has autonomy from the under this title; or (D) provides such separate rate from individual exporters. government in making decisions information but the information cannot Severstal has requested a separate, regarding the selection of management; be verified as provided in section 782(i), company-specific rate. The claimed and (4) whether the respondent retains the administering authority * * * shall, ownership structure of Severstal during the proceeds of its export sales and subject to section 782(d), use the facts the POI is that of a publicly owned joint makes independent decisions regarding otherwise available in reaching the stock company, where the state owns disposition of profits or financing of applicable determination under this 20% of the shares. losses. title.’’ Severstal has asserted the following: In addition, section 776(b) of the Act To establish whether a firm is (1) It establishes its own EPs; (2) it provides that, if the Department finds sufficiently independent from negotiates contracts, without guidance that an interested party ‘‘has failed to government control to be entitled to a from any governmental entities or cooperate by not acting to the best of its separate rate, the Department analyzes organizations; (3) it selects its own ability to comply with a request for each exporting entity under a test management; and (4) it retains the information,’’ the Department may use arising out of the Final Determination of proceeds of its export sales, uses profits information that is adverse to the Sales at Less Than Fair Value: Sparklers according to its business needs, and has interests of that party as the facts from the People’s Republic of China, 56 the authority to sell its assets and to otherwise available. The statute also FR 20588 (May 6, 1991) (Sparklers) and obtain loans. In addition, Severstal’s provides that such an adverse inference amplified in Silicon Carbide. Under the questionnaire responses indicate that may be based on secondary information, separate rates criteria, the Department company-specific pricing during the including the information drawn from assigns separate rates in nonmarket POI does not suggest coordination the petition. economy cases only if a respondent can among exporters. This information As discussed above, all Russian demonstrate the absence of both de jure supports a preliminary finding that exporters that do not qualify for a and de facto governmental control over there is an absence of de facto separate rate are treated as a single export activities. For a complete governmental control of the export enterprise. Because some exporters of analysis of separate rates, see Separate functions of these companies. the single enterprise failed to respond to Rates Memorandum, dated June 3, 1997. Consequently, we determine the Department’s requests for 1. Absence of De Jure Control preliminarily that Severstal meets the information, that single enterprise is criteria for application of separate rates. considered to be uncooperative. In such An individual company may be See Separate Rates Memorandum, dated situations, the Department generally considered for separates rates if it meets June 3, 1997. selects as total facts available either the the following de jure criteria: (1) An higher of the average of the margin from absence of restrictive stipulations The Russia-Wide Rate the petition or the highest rate associated with an individual exporter’s U.S. import statistics indicate that the calculated for a respondent in the business and export licenses; (2) any total quantity and value of U.S. imports proceeding. In the present case, the legislative enactments decentralizing of certain cut-to-length carbon steel average margin in the petition is higher control of companies; and (3) any other plate from the Russian Federation is than the one calculated rate. formal measures by the government greater than the total quantity and value Accordingly, the Department has based decentralizing control of companies. of steel plate reported by all Russian the Russia-wide rate on information in The respondents have placed on the companies that submitted responses. the petition. In this case, the average administrative record a number of Given this discrepancy, we conclude petition rate is 185.00 percent. documents to demonstrate absence of de that not all exporters of Russian cut-to- Section 776(c) of the Act provides that jure control. These documents include length carbon steel plate responded to where the Department relies on laws, regulations, and provisions our questionnaire. Accordingly, we are ‘‘secondary information,’’ the enacted by the central government of applying a single antidumping deposit Department shall, to the extent the Russian Federation, describing the rate—the Russia-wide rate—to all practicable, corroborate that information deregulation of Russian enterprise as exporters in the Russian Federation from independent sources reasonable at well as the deregulation of the Russian (other than Severstal), based on our the Department’s disposal. The export trade, except for a list of products presumption that those respondents Statement of Administrative Action that may be subject to central who failed to respond constitute a single (SAA), accompanying the URAA government export constraints. enterprise and are under common clarifies that the petition is ‘‘secondary Respondents claim that the subject control by the Russian Federation information’’ and that ‘‘corroborate’’ merchandise is not on this list. This government. See, e.g., Final means to determine that the information information supports a preliminary Determination of Sales at Less Than Fair used has probative value. See SAA at finding that there is an absence of de Value: Bicycles from the People’s 870. 31970 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

In accordance with section 776(c) of otherwise indicated. In accordance with Brazilian Government to obtain an the Act, we corroborated the margins in section 777A(d)(1)(A)(i) of the Act, we average price for electricity. the petition to the extent practicable. compared POI-wide weighted-average To value rail transport for coal and for The information contained in the EPs to the factors of production. iron ore, we used public information petition shows that petitioners We made adjustments as follows: We reported in the July 1996 Cargo and calculated export price based on two calculated EP based on packed, FOB Transport Magazine (Confederaco methods: (1) The import values declared prices to the port of loading on the Nacional de Transporte Brazil). The to the U.S. Customs Service; and (2) an Russian territory. We made deductions exchange rate used was .9970 US$/R$. average export price derived from actual from the starting price, where The source for the exchange rate for rail U.S. selling prices known to petitioners. appropriate, for brokerage and handling. transport was obtained from the IMF’s We compared the starting prices used by However, because these services were International Financial Statistics, petitioners less the importer mark-ups provided by the Russian port, these January 1997, for the average during the against prices derived from U.S. import services were assigned a surrogate value POI. statistics and found that the two sets of as available from Brazilian publicly To value skilled labor, we used the prices were consistent. We also available published data. County Reports on Human Rights compared the movement charges used Normal Value Practices for 1996, from the U.S. in the petition with the surrogate values Department of State. For unskilled used by the Department in its margin In accordance with section 773(c) of labor, we relied on data obtained from calculations and found them to be the Act, we calculated NV based on a U.S. Department of Commerce cable consistent. factors of production reported by the dated October 1994. To value overhead, The information in the petition with factory in the Russian Federation which SG&A, and profit, we used public respect to the normal value (NV) is produced the cut-to-length carbon steel information reported in the 1996/1997 based on factors of production used by plate sold by Severstal. We valued all Brazil company handbook. These are the petitioners in the production of steel the input factors using publicly the average percentages for various plate. Petitioners submitted usage available published information as Brazilian iron and steel companies. To amounts for materials, labor and energy, discussed in the Surrogate Country value brokerage, we relied on public adjusted for known differences in section of this notice. information from Case No. A–351–817, production efficiencies. Petitioners Plate from Brazil, Usiminas, Section C submitted three cost models in the Factor Valuations Response at Exh.6, dated November 21, petition: 1) Basic Oxygen Furnace (BOF) The selection of the surrogate values 1996. Cost Model; 2) Open-Hearth Furnace was based on the quality and Severstal reported the amount of slag, Cost Model; and 3) Weighted Average contemporaneity of the data. Where a by-product of the plate production Normal Value of the BOF and Open- possible, we attempted to value material process, produced in the production of Hearth methods to account for inputs on the basis of tax-exclusive the subject merchandise. Normally, the differences between the production domestic prices in the surrogate Department offsets the calculated cost of processes of petitioners and potential country. Where we were not able to rely manufacturing by the value of any by- respondents. on domestic prices, we used import products. The only surrogate value for The margins in the petition ranged prices to value factors. As appropriate, from 139.97 to 230.38 percent obtained slag from Brazil was aberrationally high we adjusted input prices to make them when compared to an available U.S. by comparing the normal values to the delivered prices. For those values not export price developed from customs rate. Based on our knowledge of the contemporaneous with the POI, we steelmaking process, we know that slag values and to export prices developed adjusted for inflation using wholesale from actual U.S. price quotes. For each is a by-product with a relatively low price indices or, in the case of labor value (compared to the price of steel method, petitioners submitted estimated rates, consumer price indices, published dumping margins for the BOF method, plate). We were able to locate an in the International Monetary Fund’s appropriate value for slag from the U.S. the open-hearth method and a weighted International Financial Statistics. For a average of the two. For more detail, see Geological Survey, Mineral complete analysis of surrogate values, Commodities Summaries from February Corroboration Memorandum, dated June see Factors Memorandum. 3, 1997. 1997. We used the U.S. slag value for To value coal, coke, iron, lime, ferro the preliminary determination. We will Fair Value Comparisons alloys, packing materials (locks), and continue to try to locate an appropriate To determine whether certain cut-to- scrap, we used public information from surrogate value from Brazil, or another length carbon steel plate from the the latest data published by the United country at a comparable level of Russian Federation sold to the United Nations for 1996 (Commodity Trade development for our final States by the Russian exporters Statistics 1994, 3 Brazil Rev. 1995, at determination. receiving separate rates were made at 19). For limestone, we used information from Commodity Trade Statistics 1993, Preliminary Determination of Critical less than fair value, we compared the EP Circumstances to the NV, as specified in the ‘‘Export Brazil Rev. 3, United Nations, 1994. For Price’’ and ‘‘Normal Value’’ sections of packing (bands), we used information On January 10, 1997, the petitioners this notice. reported in data from the 1992 UN alleged that there is a reasonable basis Import Statistics; Taken from the to believe or suspect that critical Export Price Department of Commerce NME Factors circumstances exist with respect to For Severstal, we calculated EP in Index, case A–821–805. imports of certain cut-to-length carbon accordance with section 772(a) of the For natural gas, we relied on public steel plate. In accordance with 19 CFR Act, because the subject merchandise information reported in the Diario 353.16(b)(2)(i) (1996), since these was sold directly to the first unaffiliated Oficial No. 180, September 27, 1995. For allegations were filed earlier than the purchaser in the United States prior to electricity, we relied upon public deadline for the Department’s importation and constructed export information from the September 27, preliminary determination, we must price (CEP) methodology was not 1995 Official Publication of the issue our preliminary critical Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31971 circumstances determinations not later If, as in this case, the ITC preliminarily questionnaire), we are imputing than the preliminary determination. finds threat of material injury (See Cut- knowledge based on the Russia-wide Section 733(e)(1) of the Act provides to-Length Carbon Steel Plate from rate, and determine, based on facts that if a petitioner alleges critical China, Russia, South Africa, and available, that there were massive circumstances, the Department will Ukraine, U.S. International Trade imports of certain cut-to-length carbon determine whether there is a reasonable Commission, December 1996), the steel plate by companies that did not basis to believe or suspect that: (A)(i) Department will also consider the extent respond to the Department’s There is a history of dumping and of the increase in the volume of imports questionnaire. Therefore, we material injury by reason of dumped of the subject merchandise during the preliminarily determine that critical imports in the United States or critical circumstances period and the circumstances exist with regard to these elsewhere of the subject merchandise, or magnitude of the margins in companies. (ii) the person by whom, or for whose determining whether a reasonable basis We find that critical circumstances account, the merchandise was imported exists to impute knowledge that exist for cut-to-length carbon steel plate knew or should have known that the material injury was likely. sales by all Russian exporters. exporter was selling the subject In this case, imports of Russian plate Verification merchandise at less than its fair value increased 145 percent in the three and that there was likely to be material months following the initiation of the As provided in section 782(i) of the injury by reason of such sales, and (B) investigation when compared to the Act, we will verify the information used there have been massive imports of the three months immediately preceding in making our final determination. subject merchandise over a relatively initiation, or almost ten times the level Suspension of Liquidation short period. of increase needed to find ‘‘massive The statute and the Statement of imports’’ during the same period (see In accordance with section 733(d) of Administrative Action which below). Furthermore, we have the Act, we are directing the Customs accompanies the Uruguay Round preliminarily found margins of 61.23 Service to suspend liquidation of all Agreements Act (SAA) are silent as to percent for Severstal. imports of subject from Ukraine, that are how we are to make a finding that there Based on the ITC’s preliminary entered, or withdrawn from warehouse, was knowledge that there was likely to determination of threat of injury, the for consumption on or after the date be material injury. Therefore, Congress increase in imports noted above, and the ninety days prior to the date of has left the method of implementing high preliminary margins, the publication of this notice in the Federal this provision to the Department’s Department determines that there is a Register. We will instruct Customs discretion. reasonable basis to believe or suspect Service to require a cash deposit or the In determining whether there is a that the importer knew or should have posting of a bond equal to the weighted- reasonable basis to believe or suspect known that there was likely to be average amount by which the normal that an importer knew or should have material injury by means of sales of the value exceeds the EP, as indicated known that the exporter was selling the subject merchandise at less than fair below. These suspension of liquidation plate at less than fair value, the value. instructions will remain in effect until Department normally considers margins To determine whether imports were further notice. of 15 percent or more sufficient to massive over a relatively short time The weighted-average dumping impute knowledge of dumping for period, the Department typically margins are as follows: constructed export price (CEP) sales, compares the import volume of the Weighted- and margins of 25 percent or more for subject merchandise for the three average export price (EP) sales. See, e.g., months immediately preceding and Manufacturer/producer/exporter margin per- Preliminary Critical Circumstances following the initiation of the centage Determination: Honey from the People’s proceeding. See 19 CFR 353.16(g). Republic of China (PRC), 60 FR 29824 Pursuant to 19 CFR 353.16(f)(2), the Severstal ...... 61.23 (June 6, 1995) (Honey). Since the Department will consider an increase of The Russia-Wide Rate ...... 185.00 company specific margins for EP sales 15 percent or more in the imports of the in our preliminary determination for subject merchandise over the relevant The Russia-Wide Rate carbon steel plate are greater than 25 period to be massive. As noted, imports A Russia-wide rate has been assigned percent for Severstal, we have imputed of the subject merchandise increased to certain cut-to-length carbon steel knowledge of dumping. 145 percent during the relevant period, plate based on the average margin In determining whether there is a and thus we determine that imports contained in the petition, as amended reasonable basis to believe or suspect have been massive. by the Department. The Russia-wide that an importer knew or should have Thus, because we determine that rate applies to all entries of subject known that there was likely to be there is a reasonable basis to believe or merchandise except for entries from material injury by reason of dumped suspect that the importer knew or exporters/factories that are identified imports, the Department normally will should have known that Russian individually above. look to the preliminary injury exporters were selling the subject determination of the ITC. If the ITC merchandise at less than its fair value ITC Notification finds a reasonable indication of present and that there was likely to be material In accordance with section 733(f) of material injury to the relevant U.S. injury by reason of such sales, and that the Act, we have notified the ITC of our industry, the Department will determine there have been massive imports of the determination. If our final that a reasonable basis exists to impute subject merchandise over a relatively determination is affirmative, the ITC importer knowledge that there was short time period, we preliminarily will determine before the later of 120 likely to be material injury by reason of determine that critical circumstances days after the date of this preliminary dumped imports during the critical exist for Severstal. determination or 45 days after our final circumstances period—the 90-day For companies subject to the Russia- determination whether the domestic period beginning with the initiation of wide rate (i.e., companies which did not industry in the United States is the investigation (see 19 CFR 353.16(g)). respond to the Department’s materially injured, or threatened with 31972 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices material injury, by reasons of imports, DEPARTMENT OF COMMERCE preliminary injury determination in this or sales (or the likelihood of sales) for case (see ITC Investigations Nos. importation, of the subject merchandise. International Trade Administration 731TA–753–756). The ITC found that [A±570±849] there is a reasonable indication that an Public Comment industry in the United States is In accordance with 19 CFR 353.38 Preliminary Determination of Sales at threatened with material injury by reason of imports from the PRC of steel (1996), case briefs or other written Less Than Fair Value: Certain Cut-to- plate. We issued an antidumping comments in at least ten copies must be Length Carbon Steel Plate From The People's Republic of China questionnaire to the Chinese Ministry of submitted to the Assistant Secretary for Foreign Trade and Economic Import Administration no later than 50 AGENCY: Import Administration, Cooperation (‘‘MOFTEC’’) with a list of days after the publication of this International Trade Administration, 20 possible producers of subject preliminary determination, and rebuttal Department of Commerce. merchandise and requested MOFTEC to briefs, no later than 5 days after the ACTION: Notice of preliminary forward it to all producers/exporters of filing of case briefs. A list of authorities determination of sales at less than fair subject merchandise on December 20, used and a summary of arguments made value. 1996. We also sent courtesy copies to in the briefs should accompany these the 20 producers on that date. These briefs. Such summary should be limited EFFECTIVE DATE: June 11, 1997. producers were identified in Iron and to five pages total, including footnotes. FOR FURTHER INFORMATION CONTACT: Steel Works of the World, 11th edition, We will hold a public hearing, if Elizabeth Patience, Stephen Jacques, or 1994. requested, to afford interested parties an Jean Kemp, Import Administration, The questionnaire is divided into four opportunity to comment on arguments International Trade Administration, sections. Section A requests general raised in case or rebuttal briefs. The U.S. Department of Commerce, 14th information concerning a company’s hearing will be held at the U.S. Street and Constitution Avenue NW., corporate structure and business Department of Commerce, 14th Street Washington, DC 20230; telephone: (202) practices, the merchandise under investigation that it sells, and the sales and Constitution Avenue, NW., 482–3793. of the merchandise in all of its markets. Washington, DC 20230, time, date, and The Applicable Statute Sections B and C request home market room to be determined. Parties should Unless otherwise indicated, all sales listings and U.S. sales listings, confirm by telephone the time, date, and citations to the statute are references to respectively. (Section B does not place of the hearing 48 hours before the the provisions effective January 1, 1995, normally apply in antidumping scheduled time. the effective date of the amendments proceedings involving the PRC). Section Interested parties who wish to request made to the Tariff Act of 1930 (the Act) D requests information on the factors of a hearing, or to participate if one is by the Uruguay Rounds Agreements Act production of the subject merchandise. requested, must submit a written (URAA). In addition, unless otherwise On January 10, 1997, Geneva Steel request to the Assistant Secretary for indicated, all citations to the Company and Gulf States Steel Import Administration, U.S. Department Department’s regulations are to the Company, (petitioners) amended their of Commerce, Room 1870, within ten current regulations, codified at 19 CFR petition to allege that critical days of the publication of this notice. part 353 (April 1, 1996). circumstances existed with respect to subject merchandise. Requests should contain: (1) The party’s Preliminary Determination On January 24, 1997 the following name, address, and telephone number; We determine preliminarily that submitted their section A response: (2) the number of participants; and (3) certain cut-to-length carbon steel plate China Metallurgical Import & Export a list of the issues to be discussed. In from the People’s Republic of China Liaoning Company (Liaoning), an accordance with 19 CFR 353.38(b) (‘‘PRC’’) is being, or is likely to be, sold exporter of subject merchandise; (1996), oral presentations will be in the United States at less than fair Wuyang Iron and Steel Company limited to issues raised in the briefs. If value (‘‘LTFV’’), as provided in section (Wuyang), which produced the this investigation proceeds normally, we 733 of the Act. The estimated margins merchandise sold by Liaoning; Anshan will make our final determination by are shown in the ‘‘Suspension of Iron and Steel Complex (AISCO), a August 18, 1997. Liquidation’’ section of this notice. producer of subject merchandise; Angang International Trade Corporation This determination is published Case History pursuant to section 777(i) of the Act. (Anshan International), a wholly-owned Since the initiation of this AISCO subsidiary in China with its own Dated: June 3, 1997. investigation (61 FR 64051, December 3, business license to import and export Robert S. LaRussa, 1996), the following events have merchandise, and Sincerely Asia, Acting Assistant Secretary for Import occurred: Limited (SAL) a partially-owned Hong Administration. On November 27, 1997, we sent a Kong affiliate of AISCO involved in [FR Doc. 97–15293 Filed 6–10–97; 8:45 am] survey to the Chinese Ministry of sales of subject merchandise to the United States, (collectively, Anshan); BILLING CODE 3510±DS±P Foreign Trade and Economic Cooperation (‘‘MOFTEC’’) and the China Baoshan Iron & Steel Corporation (Bao), Chamber of Commerce of Metals, a producer of subject merchandise; Bao Minerals & Chemicals Importers & Steel International Trade Corporation Exporters (‘‘CCCMC’’) to determine the (Bao Steel ITC), a wholly-owned identity of producers and exporters of subsidiary of Bao responsible for selling subject merchandise, but we received no Bao material domestically and abroad; response. and Bao Steel Metals Trading On December 19, 1996, the United Corporation (B. M. International), a States International Trade Commission partially-owned U.S. subsidiary (‘‘ITC’’) issued an affirmative involved in U.S. sales, (collectively Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31973

Baoshan); Wuhan Iron & Steel Company labor information on May 16, 1997. At determination until not later than June (Wuhan) a producer of subject their request, we granted Shanghai 3, 1997. merchandise; International Economic Pudong an extension, until May 23, Scope of the Investigation and Trading Corporation (IETC), a 1997, to submit affiliation information. wholly-owned subsidiary responsible On January 30, 1997, we requested The products covered by this for exporting WISCO merchandise; publicly-available information for investigation are hot-rolled iron and Cheerwu Trader Ltd. (Cheerwu) a valuing the factors of production and for non-alloy steel universal mill plates partially-owned Hong Kong affiliate of surrogate country selection. Petitioners (i.e., flat-rolled products rolled on four Wuhan involved in sales of subject had already provided comments on faces or in a closed box pass, of a width merchandise to the United States surrogate values to be used in this exceeding 150 mm but not exceeding (collectively, WISCO); Shanghai Pudong investigation in their petition of 1250 mm and of a thickness of not less Iron and Steel Company (Shanghai November 5, 1996. Respondents than 4 mm, not in coils and without Pudong) a producer and exporter of provided their comments on this matter patterns in relief), of rectangular shape, subject merchandise. See the Collapsing on March 4, 1997. Petitioners provided neither clad, plated nor coated with section of this memorandum, below. We further surrogate values and rebuttal to metal, whether or not painted, consider Anshan, Baoshan, Liaoning, respondent’s comments on April 10, varnished, or coated with plastics or WISCO and Shanghai Pudong to be 1997. On April 11, 1997, respondents other nonmetallic substances; and sellers of the subject merchandise objected this filing. Respondent stated certain iron and non-alloy steel flat- during the POI. that petitioners sought to insert new rolled products not in coils, of In a letter entering notice of its information on the record in an rectangular shape, hot-rolled, neither appearance, Liaoning stated that it untimely fashion. We granted clad, plated, nor coated with metal, purchased and sold subject merchandise respondents an opportunity to submit whether or not painted, varnished, or from an unaffiliated producer, Wuyang comments on petitioners’ April 10, 1997 coated with plastics or other Iron and Steel Company (‘‘Wuyang’’). filing. We received no response. nonmetallic substances, 4.75 mm or We therefore requested that Wuyang On March 28, 1997, we postponed the more in thickness and of a width which also respond to the Department’s preliminary determination until not exceeds 150 mm and measures at least questionnaires. Wuyang complied with later than May 14, 1997 (62 FR 14887), twice the thickness. Included as subject the Department’s request. because we determined this merchandise in this petition are flat- On February 12 and February 14, investigation to be extraordinarily rolled products of nonrectangular cross- 1997, the five exporters submitted their complicated within the meaning of section where such cross-section is section C responses. On February 19 section 733(c)(1)(B)(i) of the Act. achieved subsequent to the rolling and February 20, 1997, Anshan, On April 15, 1997, petitioners process (i.e., products which have been Baoshan, Wuyang, Shanghai Pudong, submitted a request that the scope of ‘‘worked after rolling’’)—for example, and WISCO producer/supplier factories their petitions be amended to include products which have been bevelled or submitted section D questionnaire three items—plate in coil; plate made to rounded at the edges. This merchandise responses. carbon plate specifications regardless of is currently classified in the On March 11, 1997, we issued a alloy content; and plate sold to nominal Harmonized Tariff Schedule of the supplemental questionnaire to Liaoning plate thicknesses whose actual United States (HTS) under item and Wuyang. On March 12, 1997 we thickness is slightly less than the numbers 7208.40.3030, 7208.40.3060, issued supplemental questionnaires to thickness of plate but within specified 7208.51.0030, 7208.51.0045, Anshan, Shanghai Pudong, and WISCO. thickness tolerances. With respect to 7208.51.0060, 7208.52.0000, On March 13, 1997, we issued a plate in coil, petitioners maintain that 7208.53.0000, 7208.90.0000, supplemental questionnaire to Baoshan. this product has essentially the same 7210.70.3000, 7210.90.9000, We received a supplemental physical characteristics and end uses as 7211.13.0000, 7211.14.0030, questionnaire response from Liaoning cut-to-length plate. Petitioners further 7211.14.0045, 7211.90.0000, and Wuyang on April 9, 1997. We claim that a post-initiation shift has 7212.40.1000, 7212.40.5000, received supplemental questionnaire occurred in the pattern of trade from 7212.50.0000. Although the HTS responses from Anshan, Baoshan , cut-to-length plate to plate in coil form, subheadings are provided for Shanghai Pudong and WISCO on April and that such a development indicates convenience and customs purposes, our 14, 1997. Anshan provided corrections that any eventual order on cut-to-length written description of the scope of this to minor errors in its responses on April plate will be susceptible to investigation is dispositive. 21, 1997, Baoshan submitted corrections circumvention. Petitioners submitted on April 24, 1997 and Shanghai Pudong additional information on May 9, 1997. Period of Investigation submitted corrections in their April 29, Respondents submitted extensive The period of investigation (POI) is 1997 submission. rebuttal comments on April 25, 1997, April 1, 1996, through September 30, On May 2, 1997, we issued and May 30, 1997. 1996. supplemental questionnaires requesting Because of the very recent submission additional information regarding each of arguments on these complex and Non-Market-Economy Country Status respondent’s labor consumption factors. technical subjects, we were unable to The Department has treated the PRC Additionally, we requested information fully analyze all of the relevant as a nonmarket-economy country (NME) about Shanghai Pudong’s affiliation information on the record prior to this in all past antidumping investigations with Shanghai No. 1 a non-exporting preliminary determination. In order to and administrative reviews. See, e.g., producer of subject merchandise which fully examine petitioners’ claims, we Final Determination of Sales at Less Shanghai Pudong had earlier indicated intend to carefully examine all evidence Than Fair Value: Silicon Carbide from shared a common trustee, Shanghai and argument on the record regarding the People’s Republic of China, 59 FR Metallurgical Holding (Group) Co. this matter and issue a decision as soon 22585 (May 2, 1994) (Silicon Carbide); (‘‘Shanghai Metallurgical’’). Wuyang as possible. and Final Determination of Sales at Less submitted its response on May 9, 1997. On April 30, 1997 (62 FR 23433) we Than Fair Value: Furfuryl Alcohol from The other respondents submitted their further postponed the preliminary the People’s Republic of China, 60 FR 31974 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

22545 (May 8, 1995) (Furfuryl Alcohol). who failed to respond constitute a single Enterprises Law has been analyzed by Neither respondents nor petitioners enterprise, and are under common the Department in past cases and has have challenged such treatment. control by the PRC government. See been found to sufficiently establish an Therefore, in accordance with section Final Determination of Sales at Less absence of de jure control of companies 771(18)(C) of the Act, we will continue Than Fair Value: Bicycles from the ‘‘owned by the whole people,’’ such as to treat the PRC as an NME in this People’s Republic of China, 61 FR 19026 those participating in this case. (See investigation. (April 30, 1996) (Bicycles). We applied Notice of Preliminary Determination of a single antidumping deposit rate—the Sales at Less Than Fair Value and Surrogate Country China-wide rate—to these exporters and Postponement of Final Determination: When investigating imports from an all other exporters in the PRC who did Certain Partial-Extension Steel Drawer NME, section 773(c)(1) of the Act directs not respond to our questionnaire. Slides with Rollers from the People’s the Department in most circumstances Republic of China, 60 FR 14725, 14727 Separate Rates to base normal value (NV) on the NME (June 5, 1995); Notice of Preliminary producers’ factors of production, valued All of the respondents have requested Determination of Sales at Less Than Fair in a surrogate market-economy country separate, company-specific rates. In Value: Honey from the People’s or countries considered to be their questionnaire responses, Republic of China, 60 FR 14725, 14727 appropriate by the Department. In respondents state that they are (March 20, 1995); and Furfuryl Alcohol. accordance with section 773(c)(4), the independent legal entities. Of the five The Industrial Enterprises Law provides Department, in valuing the factors of respondents, Anshan, Baoshan, that enterprises owned by ‘‘the whole production, shall utilize, to the extent Liaoning and WISCO have reported that people’’ shall make their own possible, the prices or costs of factors of they are collectively-owned enterprises, management decisions, be responsible production in one or more market- registered as being ‘‘owned by all the for their own profits and losses, choose economy countries that are comparable people’’, Shanghai Pudong and their own suppliers, and purchase their in terms of economic development to Shanghai No. 1 are owned by Shanghai own goods and materials. The the NME country and are significant Metallurgical. Shanghai Metallurgical is Regulations of the People’s Republic of producers of comparable merchandise. also owned by ‘‘all the people.’’ China for Controlling the Registration of The sources of the surrogate factor Shanghai Pudong stated that it does not Enterprises as Legal Persons (Legal values are discussed under the NV have any corporate relationship with Persons Regulations), issued on July 13, section below. any level of the PRC Government. As 1988 by the State Administration for The Department has determined that stated Silicon Carbide and Furfuryl Industry and Commerce of the PRC, India, Pakistan, Sri Lanka, Egypt and Alcohol, ownership of a company by all provide that, to qualify as legal persons, Indonesia are countries comparable to the people does not require the companies must have the ‘‘ability to the PRC in terms of economic application of a single rate. Accordingly, bear civil liability independently’’ and development. See Memorandum from each of these respondents is eligible for the right to control and manage their David Mueller to Edward Yang, dated consideration for a separate rate. business. These regulations also state January 29, 1997. To establish whether a firm is that, as an independent legal entity, a Customarily, we select an appropriate sufficiently independent to be entitled company is responsible for its own surrogate based on the availability and to a separate rate, the Department profits and losses. See Notice of Final reliability of data from these countries. analyzes each exporting entity under the Determination of Sales at Less Than Fair For PRC cases, the primary surrogate test established in the Final Value: Manganese Metal from the has usually been India if it is a Determination of Sales at Less Than Fair People’s Republic of China, 60 FR 56046 significant producer of comparable Value: Sparklers from the People’s (November 6, 1995). merchandise. However, the Department Republic of China, 56 FR 20588 (May 6, In sum, in prior cases, the Department has determined that Indonesia also is a 1991) (Sparklers) and amplified in has analyzed the Chinese laws and significant producer of comparable Silicon Carbide. Under this test, the regulations on the record in this case, merchandise. Department assigns separate rates in and found that they establish an absence We used India as the primary nonmarket-economy cases only if an of de jure control. We have no new surrogate country and accordingly, we exporter can affirmatively demonstrate information in these proceedings which have calculated NV using Indian prices the absence of both (1) de jure and (2) would cause us to reconsider this to value the PRC producers’ factors of de facto governmental control over determination. production, when available and export activities. See Silicon Carbide 2. De Facto Control appropriate. We have obtained and and Furfuryl Alcohol. relied upon publicly-available The Department typically considers 1. De Jure Control information wherever possible. Where four factors in evaluating whether each Indian surrogate values were not The respondents have placed on the respondent is subject to de facto available or where we considered these administrative record a number of governmental control of its export values to be aberrational, we have used documents to demonstrate absence of de functions: (1) Whether the export prices Indonesian import prices as surrogate jure control. Respondents submitted the are set by or are subject to the approval values. For one factor, slag, we were ‘‘Law of the PRC on Industrial of a governmental authority; (2) whether unable to locate an appropriate Enterprises Owned By the Whole the respondent has authority to surrogate value from any of the People,’’ adopted on April 13, 1988 (the negotiate and sign contracts and other comparable countries identified above. Industrial Enterprises Law). The agreements; (3) whether the respondent Therefore, we selected a U.S. slag value Department has previously determined has autonomy from the government in as the most appropriate surrogate. See that the Civil Law does not confer de making decisions regarding the Concurrence Memoranda. jure independence on the branches of selection of management; and (4) government-owned and controlled whether the respondent retains the Non-Responsive Exporters enterprises. See Sigma Corp v. United proceeds of its export sales and makes Consistent with Department practice, States, 890 F. Supp. 1077, 1080 (CIT independent decisions regarding we presumed that those respondents 1995). However, the Industrial disposition of profits or financing of Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31975 losses. See, e.g., Silicon Carbide and parties who have not responded to the have applied, as total adverse facts Furfuryl Alcohol. questionnaire. See Non-Responsive available, the highest margin calculated Respondents have asserted the Exporters section above. All other for a respondent in this proceeding. following: (1) They establish their own companies did not respond to our Based on our comparison of the export prices independently of the questionnaire. Further, U.S. import calculated margins for the other government and without the approval of statistics indicate that the total quantity respondents in this proceeding to the a government authority; (2) they and value of U.S. imports of cut-to- average margin in the petition, we have negotiate contracts, without guidance length carbon steel plate from the PRC concluded that the highest calculated from any governmental entities or is greater that the total quantity and margin is the most appropriate record organizations; (3) they make their own value of plate reported by all PRC information on which to form the basis personnel decisions including the companies that submitted questionnaire for dumping calculations in this selection of management; and (4) they responses. Given these discrepancies, investigation. Accordingly, the retain the proceeds of their export sales, we conclude that not all exporters of Department has based the China-wide use profits according to their business PRC plate responded to our rate on information from respondents. needs, and have the authority to obtain questionnaire. Accordingly, we are In this case, the highest calculated loans. In addition, respondents’ applying a single antidumping deposit margin is 172.20 percent. questionnaire responses indicate that rate—the China-wide rate—to all Section 776(c) of the Act provides that company-specific pricing during the exporters in the PRC (other than those where the Department relies on POI does not suggest coordination receiving an individual rate), based on ‘‘secondary information,’’ the among exporters. The subject our presumption that those respondents Department shall, to the extent merchandise appears on the ‘‘List of who failed to respond constitute a single practicable, corroborate that information Products Subject to Export Permit enterprise, and are under common from independent sources reasonably at Administration at Different Levels’’ control by the PRC government. See, the Department’s disposal. The issued by the Ministry of Foreign Trade e.g., Final Determination of Sales at Less Statement of Administrative Action and Economic Cooperation Than Fair Value: Bicycles From the (SAA), accompanying the URAA (‘‘MOFTEC’’) on November 9, 1995. People’s Republic of China, 61 FR 19026 clarifies that the petition is ‘‘secondary Respondents stated that, to the best of (April 30, 1996) (Bicycles). information.’’ See SAA at 870. The SAA their knowledge, steel plate is included This China-wide antidumping rate is also clarifies that ‘‘corroborate’’ means on the list because it is considered an based on facts available. Section to determine that the information used important raw material for the economic 776(a)(2) of the Act provides that ‘‘if an has probative value. Id. However, where development of China (e.g., for the use interested party or any other person— corroboration is not practicable, the in the construction of basic (A) withholds information that has been Department may use uncorroborated infrastructure), and the Chinese requested by the administering information. government wishes to have a authority; (B) fails to provide such The information contained in the mechanism in place to ensure adequate information by the deadlines for the petition shows that petitioners domestic supply in the event of a submission of the information or in the calculated export price based on two shortage. Despite inclusion of the form and manner requested, subject to methods: (1) The import values declared subject merchandise on this list, we subsections (c)(1) and (e) of section 782; to the U.S. Customs Service; and (2) an have found no indication from the (C) significantly impedes a proceeding average Chinese export price derived respondents’ business licences that the under this title; or (D) provides such from actual U.S. selling prices of issuing authority imposes any type of information but the information cannot Chinese exporters, known to petitioners. restriction on respondents’ business (for be verified as provided in section 782(i), Petitioners stated that in order to ensure a more complete explanation of this the administering authority * * * shall, a fair value comparison, import and issue, see the Concurrence subject to section 782(d), use the facts export values from the same HTS Memorandum). otherwise available in reaching the categories as subject merchandise were Consequently, we preliminarily applicable determination under this used to calculate the export price and determine that the five responding title.’’ the factor consumption rates were used exporters have met the criteria for the In addition, section 776(b) of the Act as a basis for normal value. In addition, application of separate rates. We will provides that, if the Department finds petitioners only used those HTS examine this matter further at that an interested party ‘‘has failed to categories for subject products which verification. cooperate by not acting to the best of its included only subject merchandise. For non-responsive exporters, we ability to comply with a request for Petitioners made adjustments for foreign preliminarily determine, as facts information,’’ the Department may use inland freight to FAS values to derive ex available, that they have not met the information that is adverse to the factory prices. They also submitted criteria for application of separate rates. interests of that party as the facts supporting documentation including an otherwise available. The statute also affidavit referring to sources and how Facts Available: China-Wide Rate provides that such an adverse inference petitioners obtained information The petition filed on November 5, may be based on secondary information, concerning adjustments and that these 1996 identified 28 steel producers with including information drawn from the adjustments represented current actual the capacity to produce cut-to-length petition. charges or expenses associated with the carbon steel plate during the POI. We As discussed above, all PRC exporters importation and sale of cut-to-length received adequate responses from the that do not qualify for a separate rate are carbon steel plate into the U.S. market. five respondents identified above. We treated as a single enterprise. Because The information in the petition with received certification of non-shipment some exporters of the single enterprise respect to the normal value (NV) is by seven companies from the China failed to respond to the Department’s based on factors of production used by Chamber of Commerce for Metals and requests for information, that single the petitioners in the production of steel Chemicals (CCCMC). Additionally, we enterprise is considered to be plate. Petitioners submitted usage received a letter from one respondent uncooperative. Accordingly, consistent amounts for materials, labor and energy, factory indicating shipments through with section 776(b)(1) of the Act, we adjusted for known differences in 31976 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices production efficiencies. Petitioners available, we used publicly available granted an extension on the reporting of submitted three cost models in the information from Indonesia. this information. Shanghai Pudong petition: (1) Basic Oxygen Furnace Certain respondents purchase certain responded on May 23 advising that it (BOF) Cost Model; (2) Open-Hearth raw materials through affiliated parties does not control Shanghai No.1 and Furnace Cost Model; and (3) Weighted- in Hong Kong. The Hong Kong parties therefore could not obtain its factors of Average Normal Value of the BOF and also receive payment, and transfer the production. Based on the data received Open-Hearth methods to account for funds to the PRC respondents, from U.S. prior to the preliminary determination, differences between the production customers for the respondents’ sales of including portions of the response processes of petitioners and potential plate. The amount of funds transferred regarding Shanghai No. 1, we have respondents. We determine that this to the PRC respondents is reduced by determined that it is not clear from the information has probative value and the cost of any inputs purchased on current record whether Shanghai that we have corroborated, to the extent behalf of the PRC respondents. The Metallurgical controls Shanghai Pudong practicable, the data contained in the Hong Kong affiliates also reduce the and Shanghai No. 1. Therefore, we will petition. See Corroboration payment by administrative costs it not collapse Shanghai Pudong and Memorandum. charges the PRC respondents. In their Shanghai No. 1 for the purposes of the responses, respondents provided sample Fair Value Comparisons preliminary determination. We will contracts for market economy continue to examine this issue and we To determine whether sales of certain purchases. They included contracts will verify the reported information of cut-to-length carbon steel plate from the between the Hong Kong affiliates and both Shanghai Pudong and Shanghai PRC to the United States were made at the original raw material suppliers as No. 1, and consider the information well as contracts between the material less than fair value, we compared the with respect to both producers for our suppliers and the PRC respondents. United States price (USP) to the foreign final determination. market value (FMV), as specified in the They did not provide documentation of Four respondents identified a ‘‘United States Price’’ and ‘‘Normal the transactions occurring between the significant number of raw material Value’’ sections of this notice. PRC respondents and the Hong Kong affiliates. We valued the relevant inputs inputs. Certain of these inputs appeared Export Price at the contract, market-economy, prices to be variations or subsets of larger inputs. We were unable to locate We based USP on export price (EP) in provided in the responses for the publicly available surrogate values for accordance with section 772(a) of the preliminary determination. We will seek these inputs for this preliminary Act, because the subject merchandise additional clarification of these determination. See each responding was sold to unrelated purchasers in the contracts and administrative costs at firm’s Calculation Memorandum. Based United States prior to importation and verification. Shanghai Pudong’s questionnaire because constructed export price on the steel production process, we response indicates that, within the methodology was not otherwise combined the inputs into the larger meaning of section 771(33) of the Act, subcategories for which we have located indicated. In accordance with section it may be affiliated with Shanghai No. 777A(d)(1)(A)(i) of the Act, we a surrogate value in our preliminary 1 based on the fact that Shanghai determination. We will continue to try compared POI-wide weighted-average Metallurgical serves as ‘‘trustee’’ for export prices (EPs) to the factors of to locate a surrogate value for these both companies and thus may exercise inputs for our final determination. production. See Company specific control over the two producers. Further, Four respondents have identified a Calculation Memoranda, June 3,1997. because both Shanghai Pudong and For those exporters that responded to Shanghai No. 1 produce subject number of gases either produced and the Department’s questionnaire, we merchandise, the Department will reused in the production process or calculated EP based on prices to consider whether these two firms purchased from outside sources for use unaffiliated purchasers in the United should be treated as a single entity (i.e., in the production of subject States. We made deductions, where ‘‘collapsed’’). In order for the merchandise. These respondents have appropriate, for foreign inland freight, Department to treat two or more argued that all of these gases should be ocean freight, marine insurance, and producers as a single entity, the treated as overhead items. Petitioners foreign brokerage. See ‘‘Factor Department relies on a test set forth in argue that these gases are direct inputs Valuations’’ section of this notice. Nihon Cement v. United States, 17 CIT in the steelmaking process and should not be considered as overhead items. In Normal Value 400, 425 (1993). Pursuant to that test, the Department will only collapse the previous cases in which the Department In accordance with section 773(c) of producers if each of these criteria are has used the same surrogate value, the Act, we calculated NV based on the met: (1) The producers must be power and fuel are specifically removed value of the factors of production affiliated, (2) the producers must have from the overhead calculation so as to reported by the factories in the PRC production facilities for similar or be treated as direct inputs. See Final which produced subject merchandise identical products that would not Results of Antidumping Duty for the five exporters. Where an input require substantial retooling in order to Administrative Review: Sebacic Acid was sourced from a market economy restructure manufacturing priorities, from the PRC, 62 FR 10530, March 7, and paid for in market economy and (3) there must be a significant 1997. We treated these gases as direct currency, we have used the actual price potential for the manipulation of price inputs as they, in general, serve as paid for the input to calculate the or production. Because we lacked power and fuel to the production factors-based NV in accordance with our sufficient information to make the process. We offset the cost of production practice. See Lasko Metal Products v. affiliation and collapsing decisions, we by the amount of any by-product United States (Lasko), 437 F. 3d 1442 requested additional information from generated. This offset is based on our (Fed. Cir. 1994). Otherwise, we used Shanghai Pudong regarding both its assumption that the by-products either publicly available information from relationship with Shanghai No. 1 and are re-used as an input to the India where possible. Where Shanghai’s No. 1’s factors of production. production processes or has a market for appropriate Indian values were not At Shanghai Pudong’s request, we its uses. See Calculation Memoranda. Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31977

Factor Valuations surrogate value for slag from India or a single labor rate for all levels of labor, The selection of the surrogate values Indonesia was aberrationally high when i.e., skilled, unskilled, and indirect was based on the quality and compared to an available U.S. rate. labor. Accordingly, we adjusted for contemporaneity of the data. Where Based on our knowledge of the inflation from the time period of the possible, we attempted to value material steelmaking process, we know that slag information (1990–1991) to the POI inputs on the basis of tax-exclusive is a by-product with a relatively low using the CPI, as reported in the domestic prices. Where we were not value (compared to the price of steel International Monetary Fund’s able to rely on domestic prices, we used plate). We were able to locate an International Financial Statistics. The import prices to value factors. We appropriate value for slag from the U.S. work day in India is an eight-hour day. removed from the import data import Geological Survey, Mineral See Coumarin from PRC; Preliminary Commodities Summaries from February prices from countries which the Determination of Sales at Less Than Fair 1997. We used the U.S. slag value for Department has previously determined Value, 59 FR 39727 (Aug. 4, 1994), the preliminary determination. We will to be NMEs. As appropriate, we citing to Country Reports: Human Rights continue to try to locate an appropriate adjusted input prices to make them Practices for 1990; Coumarin from the surrogate value from India, Indonesia, or delivered prices. For those values not PRC; Final Determination of Sales at another country at a comparable level of contemporaneous with the POI, we Less than Fair Value, 59 FR 66895 (Dec. development for our final adjusted for inflation using wholesale 28, 1994) (Coumarin). Therefore, we determination. then divided the surrogate value by 8 price indices (WPI), or, in the case of We were unable to locate specific labor rates, consumer price indices hours to arrive at an hourly wage rate. surrogate values for each of the reported Petitioners have argued that the labor (CPI), published in the International gases. Specifically, we were unable to Monetary Fund’s International Financial usage rates reported by respondents are locate surrogate values for the gases abnormally low for steel production. We Statistics. For a complete analysis of generated in the production facilities surrogate values, see each company’s will carefully review the reported labor (e.g., furnace gas). We will continue to rates at verification and for our final Factors Valuation Memorandum, dated search for surrogate values for each of June 3, 1997. determination. the gases for the final determination. For For overhead, profit and SG&A For certain raw material surrogate our preliminary determination, we values, we used values as reported in expenses, we used information reported applied surrogate gas values for gases in the April 1995 Reserve Bank of India the Monthly Statistics of Foreign Trade for which we could find a surrogate of India, Vol. II—Imports, Directorate Bulletin. See Statement 1—‘‘Combined value and applied a natural gas Income, Value of Production, General of Commercial Intelligence & surrogate value to the other gases for Statistics, Ministry of Commerce, Expenditure and Appropriation which we could not locate a value. Accounts, Industry Group-Wise, 1992– Government of India, Calcutta. The For certain factors for which we could 93.’’ price information from Monthly not locate import values, we used values Statistics of Foreign Trade of India provided by petitioners which represent Respondents allocated a majority of represents cumulative values for the market values reported in the 1995–96 the labor employed in their facilities to period of April 1995 through January Annual Report for Steel Authority of overhead and selling and general 1996. For each input value obtained India Limited (‘‘SAIL’’), a producer in administrative (SG&A) tasks. Only a from the above publication, we used the India of cut-to-length carbon steel plate. small percentage of the labor employed average value per one kilogram for that We adjusted these values for inflation. in respondents’ facilities has been input from market economies. Import For materials purchased from market reported as direct costs of production statistics from non-market economies economy country suppliers that are paid and therefore included in our NV were excluded in the calculation of the for in a market economy currency and calculations. Conversely, the Indian average value. Since the data from this if the portion of the input from the surrogate values for overhead and SG&A publication is not contemporaneous market economy was significant, we do not include a separate allowance for with the POI, we adjusted material used the actual purchase price paid labor. See Factor Valuation Memoranda. values for inflation by using WPI rate for during the POI as reported in the We therefore increased the surrogate India. We then converted each of the questionnaire responses. This practice is overhead value to include the raw material inputs to U.S. dollars using consistent with the Department’s new significant labor resources respondents an exchange rate conversion factor. regulations and with Lasko. In cases in allocated to overhead. See, Calculation For certain material inputs, we were which the same producer reported Memoranda. unable to obtain specific price several different market economy We included certain indirect information from India. Therefore, for suppliers for the same input, we used materials as part of ‘‘overhead these inputs, we resorted to public the average market economy price paid expenses.’’ In previous final information from Indonesia. The values for that input. determinations, the Department has for these inputs were obtained from the For labor, we used the average labor considered inputs which ‘‘are not direct publication Foreign Trade Statistics cost per man-day worked for the Basic materials consumed in the production Bulletin Imports, March 1996. The price Metal and Alloys Industries as reported process’’ as part of factory overhead. See information represents cumulative in the Ministry of Labour Government of Brake Drums and Brake Rotors From the values from January to March 1996. India Annual Report 1994–1995. This PRC; Notice of Preliminary These inputs were adjusted for inflation. source included in its calculation of Determination, 61 FR, 53190, 63196 Certain respondents reported the labor values ‘‘a sum of various (Oct. 10, 1996); Brake Drums and Brake amount of slag, a by-product of the plate components like wages and salaries; all Rotors From the PRC; Final production process, produced in the types of bonus; money value of benefits Determination of Sales at Less than Fair production of subject merchandise and in kind; old age benefits; maternity Value, 62 FR 9154, 9160 (Feb. 24, 1997). sold in China by some respondents. benefits; social security charges such as The treatment of indirect materials as Normally, the Department offsets the ESI compensation for injuries, family ‘‘overhead’’ is consistent with calculated cost of manufacturing by the pension, lay-off/retrenchment benefits, Compendium of Statements and value of any by-products. The only and other group benefits.’’ We applied Standards: Accounting (India). 31978 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

In calculating the cost of raw material injury by reason of such sales, and (B) of the subject merchandise during the inputs in NME cases, we include an there have been massive imports of the critical circumstances period and the adjustment for the cost of transporting subject merchandise over a relatively magnitude of the margins in the input from the supplier to the short period. determining whether a reasonable basis respondent. This adjustment is based on The statute and the Statement of exists to impute knowledge that the distance from the supplier to the Administrative Action (SAA) which material injury was likely. producing factory and the mode of accompanies the Uruguay Round In this case, imports of Chinese plate transportation; see, e.g., Sulfanilic Acid Agreements Act are silent as to how we increased 29 percent in the three from the People’s Republic of China; are to make a finding that there was months following the initiation of the Final Results and Partial Recission of knowledge that there was likely to be investigation when compared to the Antidumping Duty Administrative material injury. Therefore, Congress has three months preceding initiation, or Review, 61 Fed. Reg. 53702, 53705 left the method of implementing this nearly two times the level of increase (Comment 3) (October 15, 1996). We provision to the Department’s needed to find ‘‘massive imports’’ determine a value from the surrogate discretion. during the same period (see below). country based on this distance and on In determining whether there is a Furthermore, we have preliminarily mode of transportation used. While all reasonable basis to believe or suspect found margins of 40.35 percent for respondents provided distances for that an importer knew or should have Shanghai Pudong, 172.20 percent for some of their inputs, only one of the known that the exporter was selling the Anshan and 51.70 for WISCO. respondents provided distances and plate at less than fair value, the Based on the ITC’s preliminary mode of transportation for all material Department normally considers margins determination of threat of injury, the inputs. We requested this information of 15 percent or more sufficient to increase in imports noted above, and the for all inputs in our original and impute knowledge of dumping for high preliminary margins, the supplemental questionnaires. For each constructed export price (CEP) sales, Department determines that there is a respondent that did not comply with and margins of 25 percent or more for reasonable basis to believe or suspect our requests for this information, as to export price (EP) sales. See, e.g., that the importer knew or should have some inputs, we applied, as facts Preliminary Critical Circumstances known that there was likely to be available, the highest freight cost Determination: Honey from the People’s material injury by means of sales of the calculated for any input of that Republic of China (PRC), 60 FR 29824 subject merchandise at less than fair respondent to those inputs for which we (June 6, 1995) (Honey). Since the value. did not receive the required freight company specific margins for EP sales To determine whether imports were information. This presumes that the in our preliminary determination for massive over a relatively short time respondents chose not to provide carbon steel plate are greater than 25 period, the Department typically information that would be adverse to percent for Anshan, Shanghai Pudong compares the import volume of the them. and WISCO, we have imputed subject merchandise for the three For the preliminary determination, we knowledge of dumping. We found that months immediately preceding and were unable to find specific surrogate Baoshan and Liaoning had margins following the initiation of the values for a small number of inputs. below 25 percent. Because we found proceeding. See 19 C.F.R. 353.16(g). Therefore, we excluded them from our margins to be below 25 percent, we do Pursuant to 19 C.F.R. 353.16(f)(2), the calculations for the preliminary not impute importer knowledge of Department will consider an increase of determination. We will continue to dumping. Therefore for Baoshan and 15 percent or more in the imports of the research price information for these Liaoning, we find that critical subject merchandise over the relevant inputs for the final determination. circumstances do not exist with respect period to be massive. As noted, imports to the subject merchandise. of the subject merchandise increased 29 Critical Circumstances In determining whether there is a percent during the relevant period, and On January 10, 1997, petitioners reasonable basis to believe or suspect thus we determine that imports have alleged that there is a reasonable basis that an importer knew or should have been massive. to believe or suspect that critical known that there was likely to be Thus, because we determine that circumstances exist with respect to material injury by reason of dumped there is a reasonable basis to believe or subject merchandise. In accordance imports, the Department normally will suspect that the importer knew or with 19 C.F.R. 353.16(b)(2)(i) (1996), look to the preliminary injury should have known that Anshan, since these allegations were filed earlier determination of the ITC. If the ITC Shanghai Pudong and WISCO were than the deadline for the Department’s finds a reasonable indication of present selling the subject merchandise at less preliminary determination, we must material injury to the relevant U.S. than its fair value and that there was issue our preliminary critical industry, the Department will determine likely to be material injury by reason of circumstances determinations not later that a reasonable basis exists to impute such sales, and that there have been than the preliminary determination. importer knowledge that there was massive imports of the subject Section 733(e)(1) of the Act provides likely to be material injury by reason of merchandise over a relatively short time that the Department will determine that dumped imports during the critical period, we preliminarily determine that there is a reasonable basis to believe or circumstances period—the 90-day critical circumstances exist for Anshan, suspect that: (A)(i) There is a history of period beginning with the initiation of Shanghai Pudong and WISCO. dumping and material injury by reason the investigation (see 19 C.F.R. For companies subject to the China- of dumped imports in the United States 351.16(g). If, as in this case, the ITC wide rate (i.e., companies which did not or elsewhere of the subject merchandise, preliminarily finds threat of material respond to the Department’s or (ii) the person by whom, or for whose injury (See, Cut-to-Length Carbon Steel questionnaire), we are imputing account, the merchandise was imported Plate from China, Russia, South Africa, knowledge based on the China-wide knew or should have known that the and Ukraine, U.S. International Trade rate, and determine, based on facts exporter was selling the subject Commission, December 1996), the available, that there were massive merchandise at less than its fair value Department will also consider the extent imports of certain cut-to-length carbon and that there was likely to be material of the increase in the volume of imports steel plate by companies that did not Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31979 respond to the Department’s Weighted- case briefs. A list of authorities used and questionnaire. Manufacturer/exporter average a summary of arguments made in the margin (per- briefs should accompany these briefs. Therefore, we preliminarily determine cent) that critical circumstances exist with Such summary should be limited to five regard to these companies. Anshan (AISCO/Anshan Inter- pages total, including footnotes. We will national/Sincerely Asia Ltd) .. 172.20 hold a public hearing, if requested Verification Baoshan (Bao/Bao Steel Inter- within 10 days of publication of this national Trade Corp/Bao notice, to afford interested parties an As provided in section 782(i) of the Steel Metals Trading Corp) ... 14.20 opportunity to comment on arguments Act, we will verify the information used Liaoning ...... 8.19 raised in case or rebuttal briefs. The in making our final determination. Shanghai Pudong ...... 40.35 hearing will be held at the U.S. WISCO (Wuhan/International Suspension of Liquidation Economic and Trading Corp/ Department of Commerce, 14th Street Cheerwu Trader Ltd)...... 51.70 and Constitution Avenue, N.W., In accordance with section 733(d) of China-wide Rate 1 ...... 172.20 Washington, D.C. 20230, time, date and the Act, we are directing the Customs room to be determined. Parties should 1 The China-wide rate applies to all entries Service to suspend liquidation of all of the subject merchandise except for entries confirm by telephone the time, date, and imports of subject merchandise from from exporters that are identified individually place of the hearing 48 hours before the Baoshan and Liaoning, entered, or above. scheduled time. Interested parties who wish to request withdrawn from warehouse, for ITC Notification consumption on or after the date of a hearing, or to participate if one is In accordance with section 733(f) of requested, must submit a written publication of this notice in the Federal the Act, we have notified the ITC of our Register. For Anshan, Shanghai Pudong, request to the Assistant Secretary for determination. If our final Import Administration, U.S. Department WISCO and companies subject to the determination is affirmative, the ITC of Commerce, Room 1870, within ten China-wide rate, we are directing will determine before the later of 120 days of the publication of this notice. Customs to suspend liquidation of all days after the date of this preliminary Requests should contain: (1) The party’s imports of subject merchandise entered, determination or 45 days after our final name, address, and telephone number; or withdrawn from warehouse, for determination whether the domestic (2) the number of participants; and (3) consumption on or after the date 90 industry in the United States is a list of the issues to be discussed. In days prior to the date of publication of materially injured, or threatened with accordance with 19 CFR 353.38(b), oral this notice in the Federal Register. We material injury, by reason of imports, or presentations will be limited to issues will instruct Customs Service to require sales (or the likelihood of sales) for raised in the briefs. If this investigation a cash deposit or the posting of a bond importation, of the subject merchandise. proceeds normally, we will make our equal to the weighted-average amount Public Comment final determination by August 18, 1997. by which the NV exceeds the export This determination is published price, as indicated in the chart below. In accordance with 19 CFR 353.38, pursuant to section 733(f) of the Act. These suspension of liquidation case briefs or other written comments in at least ten copies must be submitted to Dated: June 3, 1997. instructions will remain in effect until the Assistant Secretary for Import Robert S. LaRussa, further notice. Administration no later than 50 days Acting Assistant Secretary for Import The weighted-average dumping after the publication of this preliminary Administration. margins are as follows: determination, and rebuttal briefs, no [FR Doc. 97–15294 Filed 6–10–97; 8:45 am] later than five days after the filing of BILLING CODE 3510±DS±P federal register June 11,1997 Wednesday Notice Revision ofSpecialInformationBooklet; Real EstateSettlementProceduresAct; Development Housing andUrban Department of Part VI 31981 31982 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices

DEPARTMENT OF HOUSING AND within 3 business days after receiving Government Printing Office, URBAN DEVELOPMENT the application. Washington, DC 20402. The Department Since 1987, RESPA has been amended does not have a sufficient supply of the on several occasions. (Cranston- booklet and form to provide copies to all [Docket No. FR±4243±N±01] Gonzalez National Affordable Housing settlement service providers. Lenders Real Estate Settlement Procedures Act, 1990, Public Law 101–625; the Dire may use the booklet as soon as it Act; Notice of Revision of Special Emergency Supplemental becomes available through normal Information Booklet Appropriations Act, 1991, Public Law sources. Previous editions may be used 102–27; the Housing and Community until supplies are exhausted or until AGENCY: Office of the Assistant Development Act of 1992, Public Law September 9, 1997 whichever is earlier. Secretary for Housing—Federal Housing 102–550; the Riegle Community The Department is also making the Commissioner, HUD. Development and Regulatory booklet available to settlement service ACTION: Notice; revision of special Improvement Act of 1994, Public Law providers and consumers at the information booklet. 103–325; the Economic Growth and following web site address: http:// Regulatory Paperwork Reduction Act of www.hud.gov/fha/res/respa—hm.html SUMMARY: This notice announces the 1996, Public Law 104–208.) availability of a revised special Consequently, certain parts of the Paperwork Reduction Act information booklet as required by the special information booklet are The information collection Real Estate Settlement Procedures Act of outdated. Pursuant to 12 U.S.C. 2603, requirements for the special information 1974 (RESPA) (12 U.S.C. 2601–17) and and 24 CFR 3500.6(b) of the booklet have been approved by the prescribed by the Assistant Secretary for Department’s RESPA regulations, the Office of Management and Budget Housing—Federal Housing Assistant Secretary for Housing— (OMB) in accordance with the Commissioner. Federal Housing Commissioner has Paperwork Reduction Act of 1995 (44 revised the special information booklet ADDRESSES: The special information U.S.C. 3501–3520), and assigned OMB by addressing the legislative booklet that follows this notice is also control number 2502–0265. An agency amendments, and by updating available by sending a request to the may not conduct or sponsor, and a informational references and the Director, Office of Consumer and person is not required to respond to, a booklet’s discussion of the HUD–1 Regulatory Affairs, Attention: RESPA/ collection of information unless the Settlement Statement. The revised Special Information Booklet, Room collection displays a valid control booklet is published in today’s Federal 9146, Department of Housing and Urban number. Register following this notice. Development, 451 Seventh Street, SW., More specifically, the Assistant Environmental Impact Washington, DC 20410. Secretary for Housing—Federal Housing In accordance with 24 CFR 50.19(c)(1) FOR FURTHER INFORMATION CONTACT: Commissioner has revised the booklet to of the Department’s regulations, David R. Williamson, Office of reflect changes in RESPA coverage as published in a final rule on September Consumer and Regulatory Affairs, (202) well as additional required disclosures 27, 1996 (61 FR 50914), this notice and 708–4560, Room 9146, Department of relating to loan servicing transfers, the special information booklet do not Housing and Urban Development, 451 escrow accounts, and affiliated service direct, provide for assistance or loan Seventh Street, SW., Washington, DC providers. The explanation of settlement and mortgage insurance for, or 20410. (This is not a toll-free number.) services has been expanded to include otherwise govern or regulate property Persons with hearing or speech current lending and settlement charges, acquisition, disposition, lease, impairments may access this number such as fees for mortgage brokers, rehabilitation, alteration, demolition, or via TTY by calling the Federal Computer Loan Origination (CLO) new construction, or set out or provide Information Relay Service at (800) 877– services, tax service, flood insurance, for standards for construction or 8339. and lead based paint inspection construction materials, manufactured SUPPLEMENTARY INFORMATION: On April services. The booklet was also updated housing, or occupancy. Therefore, this 23, 1987, the Department issued the to include other statutes related to fair notice and the special information current edition of the special credit, fair lending, flood insurance and booklet are categorically excluded from information booklet (52 FR 13566). That lead based paint hazards which affect the requirements of the National version provided a description of the the lending and settlement process. Environmental Policy Act. nature and purpose of the costs relating The Department will make a copy of The Department is hereby publishing to a real estate settlement, and an the special information booklet the revised special information booklet explanation of the HUD–1 Settlement available to any firm planning to to provide appropriate notice of its Statement, escrow accounts used in publish the booklet for distribution to contents. The text of the special connection with the loan, providers of lenders. Firms interested in securing a information booklet for the Real Estate real estate settlement services, and copy should send their requests to the Settlement Procedures Act follows this unfair practices and unreasonable or Director, Office of Consumer and notice. unnecessary charges. The Real Estate Regulatory Affairs, Attention: RESPA/ Settlement Procedures Act of 1974 (12 Special Information Booklet, Room Dated: June 2, 1997. U.S.C. 2601–17) (RESPA) requires 9146, U.S. Department of Housing and Nicolas P. Retsinas, lenders to provide the special Urban Development, 451 Seventh Street, Assistant Secretary for Housing—Federal information booklet to each person SW., Washington, DC 20410. The Housing Commissioner. borrowing money to finance the booklet will also be available through [FR Doc. 97–15301 Filed 6–10–97; 8:45 am] purchase of residential real estate the Superintendent of Documents, U.S. BILLING CODE 4210±27±C Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31983 31984 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31985 31986 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31987 31988 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31989 31990 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31991 31992 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31993 31994 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31995 31996 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31997 31998 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 31999 32000 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32001 32002 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32003 32004 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32005 32006 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32007 32008 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32009 32010 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Notices 32011

[FR Doc. 97–15301 Filed 6–10–97; 8:45 am] BILLING CODE 4210±27±C federal register June 11,1997 Wednesday Waiver Authority 1974, asAmendedÐContinuationof Subsection 402(d)(1)oftheTradeAct Presidential DeterminationUnder Presidential DeterminationNo.97±28Ð Ukraine Azerbaijan, Georgia,Moldova,and Emigration PoliciesofArmenia, Trade Actof1974,asAmendedÐ Subsections 402(a)and409(a)ofthe Presidential DeterminationUnder Presidential DeterminationNo.97±27Ð Montenegro) Republic ofYugoslavia(Serbiaand Prohibition onAssistancetotheFederal Presidential CertificationtoWaive Presidential DeterminationNo.97±26Ð The President Part VII 32013

32015

Federal Register Presidential Documents Vol. 62, No. 112

Wednesday, June 11, 1997

Title 3— Presidential Determination No. 97–26 of May 30, 1997

The President Presidential Certification to Waive Prohibition on Assistance to the Federal Republic of Yugoslavia (Serbia and Montenegro)

Memorandum for the Secretary of State

Pursuant to the authority vested in me by the laws of the United States, including section 1511 of the National Defense Authorization Act for Fiscal Year 1994 (Public Law 103–160) and section 540 of the Foreign Operations, Export Financing, and Related Programs Appropriations Act, 1997 (contained in Public Law 104–208 (the ‘‘Act’’)), I hereby certify to the Congress that I have determined that the waiver of the application of the prohibition in section 1511(b) of Public Law 103–160 and of the application of section 540(a) of the Act is necessary to achieve a negotiated settlement of the conflict in Bosnia and Herzegovina that is acceptable to the parties, to the extent that such provisions apply to the furnishing of assistance to facilitate destruction of military equipment. Therefore, I hereby waive the application of these provisions with respect to such assistance. You are authorized and directed to transmit a copy of this determination to the Congress and arrange for its publication in the Federal Register. œ–

THE WHITE HOUSE, Washington, May 30, 1997. [FR Doc. 97–15460 Filed 6–10–97; 8:45 am] Billing code 4710–10–M Federal Register /Vol. 62, No. 112 / Wednesday, June 11, 1997 / Presidential Documents 32017 Presidential Documents

Presidential Determination No. 97–27 of June 3, 1997

Presidential Determination Under Subsections 402(a) and 409(a) of the Trade Act of 1974, as Amended—Emigration Policies of Armenia, Azerbaijan, Georgia, Moldova, and Ukraine

Memorandum for the Secretary of State

Pursuant to the authority vested in me by subsections 402(a) and 409(a) of the Trade Act of 1974 (19 U.S.C. 2432(a) and 2439(a) (the ‘‘Act’’)), I determine that Armenia, Azerbaijan, Georgia, Moldova, and Ukraine are not in violation of paragraph (1), (2), or (3) of subsection 402(a) of the Act, or paragraph (1), (2), or (3) of subsection 409(a) of the Act. You are authorized and directed to publish this determination in the Federal Register. œ–

THE WHITE HOUSE, Washington, June 3, 1997. [FR Doc. 97–15461 Filed 6–10–97; 8:45 am] Billing code 4710–10–M Federal Register /Vol. 62, No. 112 / Wednesday, June 11, 1997 / Presidential Documents 32019 Presidential Documents

Presidential Determination No. 97–28 of June 3, 1997

Presidential Determination Under Subsection 402(d)(1) of the Trade Act of 1974, as Amended—Continuation of Waiver Au- thority

Memorandum for the Secretary of State

Pursuant to subsection 402(d)(1) of the Trade Act of 1974, as amended (the ‘‘Act’’), I determine that the further extension of the waiver authority granted by subsection 402(c) of the Act will substantially promote the objec- tives of section 402 of the Act. I further determine that the continuation of the waivers applicable to Albania, Belarus, Kazakstan, Kyrgyzstan, Tajikistan, Turkmenistan, and Uzbekistan will substantially promote the objectives of section 402 of the Act. You are authorized and directed to publish this determination in the Federal Register. œ–

THE WHITE HOUSE, Washington, June 3, 1997. [FR Doc. 97–15462 Filed 6–10–97; 8:45 am] Billing code 4710–10–M i

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CUSTOMER SERVICE AND INFORMATION CFR PARTS AFFECTED DURING JUNE

Federal Register/Code of Federal Regulations At the end of each month, the Office of the Federal Register General Information, indexes and other finding 202±523±5227 publishes separately a List of CFR Sections Affected (LSA), which aids lists parts and sections affected by documents published since the revision date of each title. Laws 3 CFR 711...... 30469 For additional information 523±5227 835...... 30481 Proclamations: Presidential Documents 7007...... 30415 12 CFR Executive orders and proclamations 523±5227 7008...... 30427 Proposed Rules: The United States Government Manual 523±5227 7009...... 31699 261...... 31526 Administrative Orders: 575...... 30778 Presidential Other Services Determinations: 14 CFR Electronic and on-line services (voice) 523±4534 No. 97±24 of May 23, 25...... 31707 Privacy Act Compilation 523±3187 1997 ...... 30737 33...... 29663 TDD for the hearing impaired 523±5229 No. 97±25 of May 29, 39 ...... 30230, 30433, 31331 1997 ...... 31313 71...... 31337, 31507 107...... 31672 ELECTRONIC BULLETIN BOARD No. 97±26 of May 30, 1997 ...... 32015 108...... 31672 Free Electronic Bulletin Board service for Public Law numbers, No. 97±27 of June 3, Proposed Rules: Federal Register finding aids, and list of documents on public 1997 ...... 32017 25...... 31482 inspection. 202±275±0920 No. 97±28 of June 3, 27...... 31476 29...... 31476 FAX-ON-DEMAND 1997 ...... 32019 39 ...... 30481, 30483, 31020, You may access our Fax-On-Demand service. You only need a fax 5 CFR 31021, 31370, 31536, 31766 machine and there is no charge for the service except for long 330...... 31315 71 ...... 29679, 30784, 31371, distance telephone charges the user may incur. The list of 2641...... 31866 31372, 31373, 31374, 31769, documents on public inspection and the daily Federal Register’s 3801...... 31866 31770 table of contents are available using this service. The document Proposed Rules: 15 CFR numbers are 7050-Public Inspection list and 7051-Table of 338...... 30778 Contents list. The public inspection list will be updated 581...... 31763 738...... 31473 immediately for documents filed on an emergency basis. 582...... 31763 740...... 31473 770...... 31473 NOTE: YOU WILL ONLY GET A LISTING OF DOCUMENTS ON 7 CFR 772...... 31473 FILE AND NOT THE ACTUAL DOCUMENT. Documents on 80...... 29649 774...... 31473 public inspection may be viewed and copied in our office located 902...... 30741 at 800 North Capitol Street, N.W., Suite 700. The Fax-On-Demand 272...... 29652 telephone number is: 301±713±6905 275...... 29652 16 CFR 301...... 30739 330...... 29662 Proposed Rules: FEDERAL REGISTER PAGES AND DATES, JUNE 340...... 29662 1014...... 29680 351...... 29662 29649±30228...... 2 17 CFR 372...... 29662 30229±30426...... 3 1...... 31507 723...... 30229 190...... 31708 30427±30738...... 4 800...... 31701 30739±30978...... 5 911...... 30429 Proposed Rules: 30979±31314...... 6 944...... 30429 32...... 31375 31315±31506...... 9 979...... 30979 240...... 30485 31507±31700...... 10 985...... 31704 18 CFR 1464...... 30229 31701±32020...... 11 153...... 30435 Proposed Rules: 911...... 30467 19 CFR 918...... 30468 10...... 31383 944...... 30467 12...... 31713 1205...... 31012 24...... 30448 1951...... 29678 123...... 31383 9 CFR 128...... 31383 141...... 31383 101...... 31326 143...... 31383 113...... 31329 145...... 31383 Proposed Rules: 148...... 31383 381...... 31017 20 CFR 10 CFR 404...... 30746 1703...... 30432 416...... 30747, 30980 Proposed Rules: 430...... 31524 21 CFR 451...... 31524 101...... 31338 ii Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Reader Aids

113...... 31721 100 ...... 30759, 30988, 31339 82...... 30276 69...... 31868 172...... 30984 110...... 31339 85...... 31192 73 ...... 31005, 31006, 31007, 178...... 30455, 31511 117...... 31722, 31723 86...... 31192 31008, 31364 184...... 30751 130...... 31339 136...... 30761 Proposed Rules: 589...... 30936 136...... 31339 180 ...... 29669, 30996, 31190 1...... 31777 872...... 31512 138...... 31339 Proposed Rules: 69...... 31040 882...... 30456 140...... 31339 9...... 31025 886...... 30985 151...... 31339 51...... 30289 48 CFR Proposed Rules: 153...... 31339 52 ...... 29682, 30290, 30818, 111...... 30678 165...... 30759, 31340 30821, 31025, 31037, 31387, 9903...... 31294 812...... 31023 177...... 31339 31388, 31394, 31398, 31775, 9904...... 31308 878...... 31771 Proposed Rules: 31776 Proposed Rules: 165...... 31385 60...... 30548 0...... 30186 23 CFR 63 ...... 30548, 31038, 31405, 4...... 30186 658...... 30757 34 CFR 31776 7...... 30186 8...... 30186 685...... 30411 69...... 31546 24 CFR 70...... 30289 15...... 30186 200...... 30222 36 CFR 81 ...... 30291, 31394, 31398 16...... 30186 17...... 30186 202...... 30222 Ch. I ...... 30232 86...... 30291 22...... 30186 203...... 30222 1...... 30232 122...... 31025 27...... 30186 206...... 30222 7...... 30232 123...... 31025 28...... 30186 585...... 31954 8...... 30232 131...... 31025 31...... 30186 Proposed Rules: 9...... 30232 132...... 31025 32...... 30186 570...... 31944 11...... 30232 148...... 31406 35...... 30186 13...... 30232 180...... 30549 42...... 30186 26 CFR 17...... 30232 185...... 30549 43...... 30186 18...... 30232 260...... 30548 54...... 31669, 31670 44...... 30186 20...... 30232 261...... 30548, 31406 Proposed Rules: 45...... 30186 21...... 30232 264...... 30548 1...... 30785 49...... 30186 28...... 30232 265...... 30548 301...... 30785, 30796 51...... 30186 51...... 30232 266...... 30548, 31406 52...... 30186 27 CFR 65...... 30232 268...... 31406 53...... 30186 67...... 30232 270...... 30548 24...... 29663 214...... 30829 73...... 30232 271 ...... 29684, 29688, 30548, Proposed Rules: 215...... 30829 78...... 30232 31406 24...... 29681 225...... 30831 1256...... 31724 300...... 30554 245...... 30832 28 CFR Proposed Rules: 41 CFR 252...... 30831, 30832 45...... 31866 1190...... 30546 932...... 30556 1191...... 30546 101±38...... 31740 58...... 30172 301...... 30260 970...... 30556 29 CFR 37 CFR Proposed Rules: 101...... 31550 49 CFR 1910...... 29669 Proposed Rules: 2...... 30802 171 ...... 29673, 30767, 31363 2520...... 31696 42 CFR 2590...... 31669, 31670 3...... 30802 172...... 30767 Proposed Rules: 195...... 31364 30 CFR 38 CFR 412...... 29902 232...... 30461 413...... 29902 571 ...... 34064, 31008, 31367 870...... 30232 4...... 30235 489...... 29902 1312...... 30286 904...... 31473 17...... 30241 Proposed Rules: Proposed Rules: 44 CFR 202...... 31538 3...... 30547 50 CFR 206...... 31538 64...... 31520 17 ...... 30772, 31740, 31748, 211...... 31538 39 CFR 65...... 30280, 30283 31757 243...... 29682 111...... 30457, 31512 67...... 30285 24...... 30773 250...... 31538 233...... 31726 Proposed Rules: 285...... 30741 916...... 30535 3001...... 30242 67...... 30296 630...... 30775 917...... 30540 660...... 29676, 30776 45 CFR 925...... 31541 40 CFR 679 ...... 30280, 30283, 31010, 934...... 30800 52 ...... 29668, 30251, 30253, 144...... 31669, 31670 31367, 31369 943...... 31543 30760, 30991, 31341, 31343, 146...... 31669, 31670 Proposed Rules: 948...... 31543 31349, 31732, 31734, 31738 148...... 31695, 31670 14...... 31044 60...... 31351 675...... 31521 20...... 31298 33 CFR 63 ...... 30258, 30993, 30995, 1639...... 30763 23...... 31054 5...... 31339 31361 600...... 30835 26...... 31339 70...... 31516 47 CFR 648 ...... 29694, 30835, 31551 27...... 31339 80...... 30261 24...... 31002 660...... 30305, 31551 95...... 31339 81...... 30271 61 ...... 31003, 31868, 31939 679...... 30835 Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Reader Aids iii

REMINDERS TRANSPORTATION Experimental fishing Personal communications The items in this list were DEPARTMENT permits; comments due services: editorially compiled as an aid Procedural and special by 6-20-97; published Narrowband PCSÐ to Federal Register users. regulations: 6-5-97 Channels and response Inclusion or exclusion from Air and foreign air carriers DEFENSE DEPARTMENT channels; eligibility and this list has no legal compliance with Federal Acquisition Regulation service area issues; significance. Consumer Credit (FAR): comments due by 6-18- Protection Act; update; Agency information 97; published 5-20-97 inspection and copying of collection activitiesÐ Radio stations; table of RULES GOING INTO DOT records, etc.; CFR Proposed collection; assignments: EFFECT JUNE 11, 1997 part removed; published Arizona; comments due by 5-12-97 comment request; comments due by 6-17- 6-16-97; published 4-30- AGRICULTURE TRANSPORTATION 97; published 4-18-97 97 DEPARTMENT DEPARTMENT Empowerment contracting; California; comments due by Agricultural Marketing Federal Aviation comments due by 6-17- 6-16-97; published 4-30- Service Administration 97; published 4-18-97 97 Spearmint oil produced in Far Airworthiness directives: Louisiana; comments due by West; published 6-11-97 Subcontract consent; Pratt & Whitney; published comments due by 6-20- 6-16-97; published 4-30- COMMODITY FUTURES 5-27-97 97; published 4-21-97 97 TRADING COMMISSION TREASURY DEPARTMENT ENVIRONMENTAL FEDERAL EMERGENCY Bankruptcy: Customs Service PROTECTION AGENCY MANAGEMENT AGENCY Chicago Board of TradeÐ Merchandise, special classes: Air programs: Flood insurance program: London International Flood mitigation assistance; Financial Futures and Archaeological and Fuels and fuel additivesÐ ethnological material comments due by 6-18- Options Exchange Trading California gasoline 97; published 3-20-97 Link; distribution of fromÐ refiners, importers, and Write-your-own programÐ customer property related Peru; published 6-11-97 oxygenate blenders; to trading; published 6-11- enforcement Private sector property 97 exemptions; comments insurers assistance; COMMENTS DUE NEXT comments due by 6-16- HEALTH AND HUMAN due by 6-16-97; WEEK 97; published 5-1-97 SERVICES DEPARTMENT published 4-16-97 Gasoline produced by GENERAL SERVICES Food and Drug AGRICULTURE Administration foreign refiners; ADMINISTRATION DEPARTMENT baseline requirements; Food for human consumption: Federal Acquisition Regulation Agricultural Marketing hearing; comments due (FAR): Canning low-acid foods in Service by 6-20-97; published Agency information hermetically sealed Potatoes (Irish) grown inÐ 5-12-97 containers; safe collection activitiesÐ manufacturing, processing, California et al.; comments Stratospheric ozone Proposed collection; and packaging due by 6-18-97; published protectionÐ comment request; procedures; technical 5-19-97 Significant new comments due by 6-17- amendment; published 6- AGRICULTURE alternatives policy 97; published 4-18-97 11-97 DEPARTMENT program; comments due Empowerment contracting; by 6-20-97; published HEALTH AND HUMAN Federal Crop Insurance comments due by 6-17- 5-21-97 SERVICES DEPARTMENT Corporation 97; published 4-18-97 Health Care Financing Crop insurance regulations: Pesticides; tolerances in food, Subcontract consent; animal feeds, and raw Administration Dry peas; comments due by comments due by 6-20- agricultural commodities: Medicare: 6-16-97; published 5-15- 97; published 4-21-97 Deoxyribonucleic acid etc.; Individual claims under Part 97 JUSTICE DEPARTMENT comments due by 6-16- A or B; appeal AGRICULTURE Immigration and 97; published 5-16-97 procedures; published 5- DEPARTMENT Naturalization Service Plant pesticides; comments 12-97 Rural Utilities Service Immigration: due by 6-16-97; published LEGAL SERVICES Electric loans: 5-16-97 Checkpoints; pre-enrolled CORPORATION access lane program; Electric system operations Viral coat protein; comments Fund recipients: and maintenance; establishment; comments due by 6-16-97; published due by 6-17-97; published Attorneys' fees; published 5- comments due by 6-16- 5-16-97 12-97 97; published 4-16-97 4-18-97 Solid wastes: JUSTICE DEPARTMENT NUCLEAR REGULATORY COMMERCE DEPARTMENT Hazardous waste Prisons Bureau COMMISSION National Oceanic and combustors, etc.; Nuclear power reactors, Atmospheric Administration maximum achievable Inmate control, custody, care, standard design Fishery conservation and control technologies etc.: certifications; and combined management: performance standards; Classification and program licences; early site permits: Alaska; fisheries of comments due by 6-17- review; team meetings; Boiler water reactorsÐ Exclusive Economic 97; published 6-4-97 comments due by 6-20- 97; published 4-21-97 Standard design ZoneÐ FEDERAL certification approval; Shortraker and rougheye COMMUNICATIONS NATIONAL AERONAUTICS published 5-12-97 rockfish; comments due COMMISSION AND SPACE POSTAL SERVICE by 6-18-97; published North American Numbering ADMINISTRATION Civil and criminal forfeitures, 6-3-97 Council recommendations; Federal Acquisition Regulation remission or mitigation Magnuson Act provisions comment request; comments (FAR): petitions; procedures; and Northeastern United due by 6-20-97; published Agency information published 6-11-97 States fisheriesÐ 5-27-97 collection activitiesÐ iv Federal Register / Vol. 62, No. 112 / Wednesday, June 11, 1997 / Reader Aids

Proposed collection; payment; comments due Regattas and marine parades: Class D and Class E comment request; by 6-17-97; published 4- Assateague Channel, VA; airspace; comments due by comments due by 6-17- 18-97 marine events; comments 6-16-97; published 4-25-97 97; published 4-18-97 SOCIAL SECURITY due by 6-20-97; published Class E airspace; comments Empowerment contracting; ADMINISTRATION 4-21-97 due by 6-16-97; published comments due by 6-17- Social security benefits and TRANSPORTATION 4-25-97 97; published 4-18-97 supplemental security DEPARTMENT Subcontract consent; income: Economic regulations: TRANSPORTATION comments due by 6-20- Federal old age, survivors Domestic passenger DEPARTMENT 97; published 4-21-97 and disability insuranceÐ manifest information; Disability claims; testing RAILROAD RETIREMENT comments due by 6-20- National Highway Traffic elimination of final step BOARD 97; published 5-30-97 Safety Administration in administrative review Debt Collection Improvement process; comments due TRANSPORTATION Motor vehicle safety Act of 1996: by 6-16-97; published DEPARTMENT standards: Collection of debts by offset 5-16-97 Federal Aviation Accelerator control systems; against Federal payments; TRANSPORTATION Administration Federal regulatory review; comments due by 6-20- DEPARTMENT Airworthiness directives: withdrawn; technical 97; published 4-21-97 Lockheed; comments due Coast Guard workshop; comments due Railroad Unemployment by 6-20-97; published 5-9- Drawbridge operations: by 6-20-97; published 3- Insurance Act: 97 Maryland; comments due by 21-97 Sickness benefits; 6-20-97; published 4-21- Saab; comments due by 6- acceptance of statement 97 19-97; published 5-8-97 Metric conversion; weights of sickness executed by New Jersey; comments due Class D airspace; comments and measures system; substance-abuse by 6-20-97; published 4- due by 6-16-97; published comments due by 6-20- professional in support of 21-97 5-1-97 97; published 4-21-97